Why Manufacturing is Important to the Economy

The importance of manufacturing cannot be underestimated for those tracking economic growth in the United States. Whether you are a manufacturing plant manager or a line worker, the availability of manufacturing jobs makes it easier for you to earn a living. American manufacturing also spurs development and creates new jobs any time a plant opens or expands. Learn more about the importance of manufacturing to see the real impact this industry has on economic growth and development.

Many people do not understand the importance of manufacturing until production facilities open in their cities or metropolitan areas. The opening of such a facility brings much-needed funds to the area and creates more jobs for workers. In May 2013, Motorola announced it would be opening a production facility in Forth Worth, Texas. The company will be using the facility to produce the Moto X. The executive vice president of economic development for the Fort Worth Chamber said this is an opportunity for Fort Worth to become a big player in the technology sector. The opening will create approximately two thousand jobs.

What many people don't realize about the importance of manufacturing is that the ability to manufacture goods gives a country more power. Powerful countries have the ability to produce the machines and equipment that manufacture goods. At the height of the manufacturing era, the United States produced approximately half of the world's manufacturing machinery. China now produces more machinery than the United States, which is partially why the country has gained so much economic power in recent years. Because countries usually trade goods instead of services, the importance of manufacturing also has an impact on a country's trade power.

The importance of manufacturing is directly linked to the ability to provide much-needed services. Real estate agents, health care professionals, and other service providers would not be able to provide many of their services without the benefit of manufactured goods. Radiologists, for example, must have MRI machines and CT scanners available to create and interpret medical images. Success in the financial field sometimes depends on using technology to create wealth and economic surpluses.

One of the biggest reasons manufacturing is so important is that it has the potential to boost the American economy enough to erase the effects of the 2008 financial crisis. In 2005, manufacturing accounted for only 13.4 percent of the American economy. In contrast, manufacturing made up more than 20 percent of the economy in Germany and Japan during the same period. The author of "Manufacturing Green Prosperity" says that the United States could have had approximately seven million more jobs if manufacturing levels were the same as those in Japan in 2005. This demonstrates the importance of manufacturing to the economy in the United States.

Manufacturing professionals know why this industry is so important, but many people do not. As an industry insider, it is your job to educate people about the importance of manufacturing and explain how the industry impacts job growth, trade power, and the exchange of goods and services.

(Image courtesy of digitalart / freedigitalphotos.net)