Job Creation in the Manufacturing Revival

Job Creation in the Manufacturing Revival. July 1, – May 15, R The health of the U.S. manufacturing sector is of ongoing interest to Congress.
Table of contents

The Global Supply Chain - R 4 years ago. Unfunded Mandates Reform Act: History, Impact, and Issues - R 4 years ago. Science - Technology - Telecommunications. Issues and Options for the th Congress - R 4 years ago.

CEO: Manufacturing Jobs Should Be Celebrated

Concerns and Policy Responses - RL 4 years ago. Financing Airport Improvements - R 4 years ago. Policy , by Dick K. The past few years have seen important changes in the nature of manufacturing work. July 1, Number of Pages: To order, e-mail Penny Hill Press or call us at Indicate whether you want e-mail or postal delivery.

Manufacturing Revival Drives Economic Growth

Phone orders are preferred and receive priority processing. Posted by Penny Hill Press, Inc. Newer Post Older Post Home. Description This report looks at recent growth in the U. Physical Description 17 pages. Who People and organizations associated with either the creation of this report or its content. Publisher Library of Congress. About Browse this Partner. What Descriptive information to help identify this report. Identifier Unique identifying numbers for this report in the Digital Library or other systems. Collections This report is part of the following collection of related materials.

About Browse this Collection. Digital Files 1 file.


  • .
  • Consolation No. 2.
  • .
  • Biological Membrane Ion Channels: Dynamics, Structure, and Applications (Biological and Medical Phys;

When Dates and time periods associated with this report. Creation Date June 20, These data, which are available only since , show more modest relative declines in manufacturing wages than appear in the figures for production and nonsupervisory workers see Figure 7. However, the wages of highly paid workers, including managers and executives, are included in these data, so the averages may not be reflective of the relative pay of factory-floor workers.

Wages for Nonsupervisory Workers in Selected Industries. Wages for All Workers in Selected Industries. A recent econometric analysis 16 draws on data from a different BLS survey to estimate that workers without college educations earn average hourly wages 7. It concludes that "there remains a manufacturing wage premium, but that it has substantially fallen since the s. For example, the share of manufacturing workers identifying themselves as "Black or African American" and "Hispanic or Latino" has been increasing.

Where Marketers and Writers Work Together.

On average across all industries, black and Hispanic workers earn less than non-Hispanic white workers. Hence, it is arithmetically possible that a growing proportion of manufacturing workers earns a wage premium relative to what those individuals could earn in other industries, even as the wage premium for manufacturing workers overall has disappeared. Whether manufacturing pays higher wages than other types of work attracting a similar workforce depends in part on the location and type of industry.

In , according to BLS, the average hourly wage for all workers in manufacturing was higher than the average for all private-sector workers in 29 of the 46 states for which data were available. By , the average manufacturing wage exceeded the private-sector average in 25 of 46 states. Traditionally, manufacturing employers have tended to offer more generous employee benefits than those in other industries. This was due mainly to the comparatively large union presence in the manufacturing sector; in , for example, employers of blue-collar union workers in manufacturing spent nearly twice as much per hour worked on benefits as employers of blue-collar non-union workers in manufacturing.

Employer Costs for Worker Benefits. Benefits include paid leave, supplemental pay, insurance, retirement and savings benefits, and legally required benefits. On balance, modest job creation in manufacturing has not been accompanied by an improvement in the average position of manufacturing workers, relative to those in other sectors. Some manufacturing workers appear to have done well: On the other hand, average hourly wages in motor vehicle, auto parts, and rubber products manufacturing were lower in than in However, a considerable share of manufacturing-related work is performed in other sectors of the economy, some of which have much higher average wages than the manufacturing sector itself.

Under current statistical practices, whether an activity is classified as manufacturing depends largely on where it is conducted.

Government statistical agencies track most types of economic activity at the level of the establishment—that is, a single facility or business location—rather than at the level of a firm that may own multiple establishments or an enterprise that may own many firms. As a general rule, if an establishment is "primarily engaged" in transforming or assembling goods, then all output from that establishment is considered output of the manufacturing sector, and all workers except those employed by outside contractors are considered manufacturing workers.

Thus, if a firm locates its product design employees at a U. If, however, the product designers work at a separately located design center, they will probably be considered to work in an industrial design establishment, not a manufacturing establishment. In that case, they will be counted as industrial design workers, and their value added will be attributed to the professional, scientific, and technical services sector, not to the manufacturing sector. Data related to the first two groups are generally captured by government statistics depicting the manufacturing sector.

Data related to the roles of workers in the last two groups are far more tenuous. Establishments in the computer systems design and related services industry employed a total of 1. An unknown number of these workers are involved in writing and testing computer software that is eventually embedded in manufactured goods. However, in government statistics these workers are allocated to the information sector, and they are not counted as part of the manufacturing workforce. Anecdotal evidence suggests that a growing proportion of manufactured goods are sold in conjunction with after-sale services.

For example, Boeing Corp. It is possible that a manufacturer might demand a different price for a good sold as a stand-alone product than for the same good when bundled with a service contract. In such a case, the amount of the product's value to attribute to the manufacturing sector rather than the "other services" sector, which includes machinery and equipment repair and maintenance, may be arbitrary.

Factoryless goods producers are firms that design products to be manufactured and own the finished goods but do not engage directly in physical transformation. The transformation or assembly of the goods they sell is done by external suppliers, known as contract manufacturers, in the United States or abroad, although the factoryless goods producer may be closely involved in its contract manufacturers' operations.

Examples might include a U. It is impossible to identify factoryless goods producers with certainty; responses to related questions on government surveys are confidential, and companies' annual reports filed with the Securities and Exchange Commission may not provide sufficient detail to determine whether they own manufacturing establishments. The company also sells computers, telephones, and security systems to consumers; designs and oversees production of computer servers used in its data centers; and designs semiconductors used in computers and smartphones.

Job Creation in the Manufacturing Revival - Digital Library

According to Census Bureau estimates, at least 54, nonmanufacturing firms employing 3. However, as the facilities owned by factoryless goods producers are usually classified as wholesale, retail, or professional, scientific, and technical service establishments rather than manufacturing establishments, it is likely that few if any of their workers are counted as manufacturing workers. Most contract manufacturing services are provided by establishments in the manufacturing sector, either in the United States or abroad.

At the same time, however, more than 20, U. These enterprises—an "enterprise" may own one or many establishments or firms—collectively employed 1.


  • Los relatos de Belkin (Spanish Edition).
  • ?
  • Trio G Major BWV 586 - Organ?
  • Jobs make a comeback in manufacturing as sector shows signs of revival.

The number of those 1. Nor is it known how many of those workers were captured as manufacturing-sector workers in government data. Enterprises Providing Contract Manufacturing. Census Bureau, Enterprise Statistics: An enterprise may have establishments in multiple sectors and may control more than one firm.

The definitional questions associated with factoryless goods producers have proven controversial. In , the Office of Management and Budget ordered the change postponed, citing the poor quality of statistical data about factoryless producers. Manufacturers make significant use of workers employed by temporary help agencies and other employment services firms in addition to their own employees.

According to estimates based on Bureau of Labor Statistics data, , people in typical manufacturing production occupations worked for employment services firms in May See also note It is likely that many nonproduction workers in manufacturing establishments are employed by employment services as well. This includes workers in office, maintenance, and food service occupations.

The lack of comparable data makes it difficult to ascertain how the number of workers employed within manufacturing establishments as employees of employment services has changed over time. One recent study finds that the number of temporary-help workers in manufacturing came to 9. This stereotype is outdated. Of more than , manufacturing establishments 40 counted by the Census Bureau in March , only employed more than 1, workers see Table 6. This is up from the modern low of in , but remains far below the level of the s.

Those very large factories, the ones most prominent in public discussion of manufacturing, collectively employ 1. As the number of factories in all size classes declined, mean employment in U. Since then, the number of factories in all size classes above employees has edged higher, and mean employment size has risen to Size Distribution of Factories. The decline in the number of large factories was widespread across the manufacturing sector, with the exception of the food processing industry. Four industries—chemicals, computers and electronic products, machinery, and transportation equipment—accounted for more than half the decline in the number of factories with more than 1, workers between and More recently, however, the number of such large factories has increased in several industries, notably food, chemicals, and transportation equipment manufacturing see Table 7 , 42 suggesting that existing plants have added workers as business conditions have improved.

Factories with over 1, Workers by Selected Industries. Among the factories with more than 1, workers, average employment size has held steady around 2, workers since after several years of decline. Manufacturing Employment by Establishment Size.


  1. Search Penny Hill Press!
  2. .
  3. Origins of the Specious: Myths and Misconceptions of the English Language?
  4. Ghosts: in an English version;
  5. .

    6. The employment dynamics of the factory sector differ importantly from those in the rest of the economy. In other economic sectors, notably services, business start-ups and shutdowns account for a large proportion of job creation and job destruction. In manufacturing, by contrast, employment change appears to be driven largely by the expansion and contraction of existing firms, with entrepreneurship and failure playing lesser roles. This may be due to obvious financial factors: The dynamics of employment change in manufacturing can be seen in two different government databases.

    The Bureau of Labor Statistics' Business Employment Dynamics database, which is based on firms' unemployment insurance filings, offers a quarterly estimate of gross employment gains attributable to the opening of new establishments and to the expansion of existing ones, and of the gross job losses attributable to the contraction or closure of establishments. The other source of data on the connection between new factories and manufacturing job creation is the longitudinal business database maintained by the Census Bureau's Center for Economic Studies.

    This database covers some establishments notably certain public sector employers not included in the BLS database and links individual firms' records from year to year in an attempt to filter out spurious firm openings and closings. The Census Bureau data make clear that the rate at which new business establishments of all sorts were created fell significantly during the recession. The data also show that 16, manufacturing establishments employing , workers opened their doors in the year to May This represents an increase in the number of new plants over and , but fewer than in any other year since , the year for which the data were first collected.

    The average number of new manufacturing establishments opened each year from through was less than half the average during the s and s. These two data sources on business dynamics thus support similar conclusions about the role of plant openings and closings in manufacturing employment.