What Making Things Does for the Economy

The manufacturing industry is responsible for pumping billions of dollars into the American economy, so it is very important for economic stability. If you work for a manufacturing company, you know that this industry makes goods available to consumers and businesses, but it is also important to remember that the manufacturing industry has a big impact on the economy. In prosperous times, manufacturing can lead to an economy boost, while a downturn in manufacturing activity can cause problems for workers and employers.

The manufacturing industry creates jobs for workers at all levels. Manufacturing companies need workers to assemble products, manage staff, repair and maintain machines, and perform other activities. An increase in manufacturing means an economy boost and more jobs for American workers, but slow growth in the manufacturing industry can lead to an increase in the rate of unemployment. Reporters from NBC News Business say that manufacturing growth slowed in June, causing a drag on the entire economy. The number of jobless claims also increased during the beginning of June, which could be related to this slow growth.

In May 2013, workers in the manufacturing industry held 11,967,000 jobs, according to the Bureau of Labor Statistics. The unemployment rate in the industry had fallen to 6.8 percent from 7.2 percent in February 2013. All of these jobs make it possible for workers to earn money, which they put back into the economy by purchasing goods and services. Manufacturing workers use their income to buy electronics, cars and trucks, recreational vehicles, clothing, jewelry, and other items.

The growth of the manufacturing industry has an effect on the success of other businesses as well. Manufacturing companies buy raw materials from their suppliers, which makes it possible for those suppliers to continue operating. Manufacturers also support the growth of tech companies and companies that produce parts for their products. This has a direct impact on employment trends and economic stability. Some manufacturers outsource administrative functions such as payroll processing, putting more money into the economy and helping other companies succeed. One benefit of the manufacturing industry that doesn't get a lot of attention is its impact on innovation. Manufacturers fund a significant amount of research and development, allowing inventors to come up with new products or improve upon existing ones. Everyone benefits from these innovations.

Workers in the manufacturing industry do a lot more than make products and prepare them for shipment to retailers. They also play an important role in helping workers in other industries earn a living. The innovation spurred by research and development dollars from manufacturing companies benefits everyone who uses new products. This is why the manufacturing industry is so important to the future of the United States economy.

(Photo courtesy of Stuart Miles / freedigitalphotos.net)