US Manufacturing 2023

2023 Key Manufacturing Facts

Source: National Association of Manufacturers (NAM)

Economic Impact
Manufacturers contributed $2.91 trillion at the annual rate to the U.S. economy in just the first quarter of 2023. In fact, for every $1.00 spent in manufacturing, there is a total impact of $2.60 for the overall economy.

US Employment Impact
While most manufacturing firms in the U.S. are quite small, the US manufacturing sector employed nearly 13 million workers in August 2023. These employees earned $95,990 on average in 2021, including pay and benefits, and 91% were eligible for health insurance benefits in 2022.

There were 550,000 U.S. manufacturing job openings in July 2023, and by 2030, 4 million manufacturing jobs will likely be needed. U.S. affiliates of foreign multi-national firms employed over 2.8 million manufacturing workers.

Private manufacturing construction rose to $200.99B in July 2023, a year’s increase of 71%.

Manufacturers perform just more than 55% of all private-sector research and development and manufactured goods exports totaled roughly $1.6T in 2022, doubling over last 20 years. This makes manufacturing in the U.S. the eighth-largest economy in the world.

Source: Economic Policy Institute
Economic growth depends on manufacturing. Manufacturing’s innovation increases productivity 3% per year, much more than growth contribution of the service industry. Add to this the fact that manufacturing industry jobs create more jobs. Each manufacturing job creates three more jobs!

Manufacturing productivity and resulting positive trade balances drive national security and global influence. Manufactured goods account for as much as 80% of trade.

Manufacturing creates family-wage, middle-class jobs and reduces poverty.

Challenges
72% of manufacturer survey respondents cited attracting/retaining a qualified workforce as the current largest challenge for U.S. manufacturing. In addition, the cost of federal regulations falls disproportionately on manufacturers, especially smaller firms.

Northern Santa Barbara County Manufacturing 2023

2023 Key Manufacturing Facts

Source: EconAlliance North County Manufacturing Week Committee

North County manufacturers design and produce sophisticated goods such as turbo compressors, medical and optical devices, semi-conductors, boring technologies, electronics, transducers, device mounts, sophisticated lifestyle products, communications items, lab and test equipment, airline interiors, security solutions, clinical diagnostics, coatings, precision tools, satellite, and defense products and more.

Local manufacturers produce and export world-class products, processes, and services critical to national security, healthcare, transportation, energy, R & D, and many other industries.

Today’s manufacturing is characterized by clean, well-organized plants, spotless shop floors, sophisticated machinery, automated processes, state-of-the art safety, and worker opportunity.

It is a clean, green industry sector continually evolving as a community environmental partner. Manufacturing is at the forefront of automation and AI, with exciting new opportunities for technical workers to build, maintain or repair robotic equipment, or create highly sophisticated products.

Reshoring (bringing back from overseas) of manufacturing jobs is creating exponential growth for national and local manufacturers and manufacturing workers. In a Forbes/Zogby poll of American manufacturing CEOs, 55% stated intention to reshore operations, with 95% indicating in 2023.

Northern Santa Barbara County has a vibrant, highly technical manufacturing sector of globally competitive and market-leading companies. It reflects key national and regional growth with exciting, high-paying careers.

Local manufacturing offers: Entry level jobs and training for high school graduates, technician jobs for skilled workers, engineering, and management jobs for university graduates and/or experienced manufacturing professionals.

High school graduates can advance from entry-level jobs to management positions. Starting manufacturing pay ranges from $40,000 to $50,000, with top manufacturing professionals making six figure salaries.

Santa Maria’s housing market of more affordable North County homes can draw manufacturing. In addition, the Infrastructure Investment Act, industry greening, and growth in renewables is creating new opportunities for manufacturers.

“Modern (manufacturing) facilities are high-tech showcases of ingenuity with innumerable opportunities for equitable career growth” for traditional manufacturing workers, but also for women, veterans, and those from under-represented communities.” (Source: Forbes magazine)

Greatest challenge for local manufacturers (and communities wanting to keep them): Growing a qualified candidate pool of skilled workers to take on the more technical manufacturing jobs.