Manufacturing is one of the most significant and major industries in both the developed and developing world. There have been vast developments occurring in a short time. Therefore, you need to learn about the statistics to stay on top of the news.
Here are some statistics you should learn about the manufacturing industry.
The United States has seen more than $1,607.2 billion in direct investments over the past decade. With the number of ventures expected to happen soon, the number will surely bulge. However, the sector will have to learn to adapt to evolution since digital manufacturing is progressing. It may be difficult for some companies, but it is crucial to do so since the market is continually ballooning.
The fantastic thing about the manufacturing industry is how many manufacturing jobs it has to offer. For instance, companies that provide industrial piping supply in Utah can benefit from the manufacturing industry since the companies will need their services.
While there are currently about 12 million manufacturing jobs that pay 12 percent more compared to other jobs, there may be an issue. Eighty-nine percent of the manufacturers struggle to fill job positions because the applicants are not qualified. The massive skill gap can put the industry at risk, and it could cost $454 billion in the year 2028.
A Healthy Economy
For each dollar that is spent in manufacturing, $1.82 goes to the economy. It is called the premier multiplier effect that is in any economic sector. Another statistic is that for every employee in the manufacturing sector, four more workers will be hired somewhere else.
The manufacturing industry has more jobs than you think and can create a positive rippling effect. For instance, the manufacturing companies will also need people to work in human relations, marketing, and other departments.
The manufacturing industry takes the lead when it comes to the amount of power consumption by the nation. It is estimated that it consumes around 30 percent of any given nation’s energy. It is understandable since a lot of energy is required to create products.
However, since sustainability is a trend and can be beneficial to many companies, most people are focusing on decreasing their energy consumption. Many businesses are also opting for alternative energy sources to run their companies.
Growth and Decline
Manufacturers have been profiting a lot in the past few decades. Statistics show that output per hour for all the employees in the industry has increased by 2.25 times. For non-farm businesses, productivity increased by around 1.8. But the shift to the service-based economy also caused the industry to experience a decline. Although that statement stays true only for more developed countries, less developed ones like China increased their manufacturing abilities.
Another reason for the decline is because of the high standards of living in America. Higher standards of living mean higher costs of wages. Due to this, it may be a struggle for the US to compete. For instance, countries, like China, offer low-cost products created by lower-paid employees. In contrast, an American employee would require a higher amount of pay along with benefits. Thus, increasing the cost of the product.
Statistics are more than just numbers. Keeping yourself updated with all the data in your industry can help your business grow significantly.