Newsletter Masthead
June 2010
 The Status of American Manufacturing 
Manufacturing has been a leader in the economic recovery as demand from abroad strengthened and manufacturers picked up production and spending to meet demand after a record drawdown in inventories in 2009.
Current Status of American Manufacturing
  • Factories added 101,000 workers to payrolls in the first four months of the year
  • The Institute of Supply Management’s (ISM) employment gauge climbed to 59.8, the highest level since May 2004.
  • ISM’s measure of exports increased to 62, the highest since December 1988.
  • Nondefense new orders for capital goods in April increased $5.5 billion or 9.2 percent to $66.1 billion.

Trends in American Manufacturing
  • Manufacturing's share of the US economy has dropped to 12 % of GDP from the high of 28.3 percent in 1953, after WW II.
  • Manufacturing employment has fallen to 9.25% of US Employment from 26.5% in 1969.
  • From 2000 to 2008, the U.S. share of global output fell from 31 % to 27 %.
  • Commercial shipbuilding and consumer electronics industries have largely disappeared since the 1980s, while U.S. steelmakers now account for only 7 % of global output (compared to 38 % for Chinese steelmakers).
  • The migration of manufacturing overseas is not confined to traditional metal-bending activities: the pharmaceutical industry is now incapable of manufacturing antibiotics such as penicillin without supplies from China.
 Manufacturing Jobs % Decline
Issues Facing the Future of American Manufacturing
  • The European debt crisis creates a stronger dollar and the potential for slower demand from Europe potentially slowing U.S. exports.
  • America’s annual trade deficit has increased from $380 billion at the beginning of the decade to well over $700 billion today.
  • China’s growth rate averaged about 10 percent annually throughout the decade partially due to Chinese currency manipulation keeping cost of their goods artificially low.

Ben Moore
Agent Technologies, Inc.


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The Status of American Manufacturing

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Manufacturing Statistics June 2010


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Manufacturing Statistics 
1) Industrial production increased 0.8 % in April 2010. Manufacturing output climbed 1.0 % in April for a second consecutive month and was 6.0 % above its year-earlier level.  Source: Federal Reserve Board

2) Total nonfarm payroll employment grew by 431,000 in May including 411,000 temporary Census Workers. However, Manufacturing did add jobs in May 2010.  Source: Bureau of Labor Statistics

3) Manufacturing Trade Deficit increased to $40.3 billion in April on exports of $148.8 billion and imports of $189.1 billion.  Sources: Census Bureau, Bureau of Economic Analysis

4) New orders for manufactured durable goods in April increased $5.6 billion or 2.9 percent to $193.9 billion.  Fourth increase in the last five months.  Source:Census Bureau 

5) Inventories of manufactured durable goods in April increased $1.9 billion or 0.7 percent to $301.4 billion.  Source: Census Bureau 


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