A Beginner’s Guide to Modern Manufacturing
Gone are the days when manufacturing was a labor-intensive and error-prone process. Today, driven by data analytics, 3D printing, and advanced equipment, modern manufacturing has embraced innovative technologies that have revolutionized the industry. In this guide, we will explore some key statistics that highlight the latest trends in manufacturing.
Key Manufacturing Statistics
Manufacturing, one of the oldest businesses known to mankind, has undergone significant advancements in the 21st century. Let’s delve into some carefully chosen statistics that shed light on the state of manufacturing today:
- Downtime in manufacturing costs an average of $260,000 per hour.
- The annual cost due to downtime is around $208 million for manufacturing companies.
- Producers’ prices for manufacturing rose 1.1% in the past year.
- A 15% increase in the US gross domestic product (GDP) could occur if manufacturing sectors restored growth and competition.
- Every $1 spent in manufacturing results in $2.79 of economic activity.
- 45% of manufacturers need to prioritize reducing product development cycle times.
- 52% of manufacturing executives need help to differentiate their products from competitors.
- 20 US free trade agreement (FTA) partners purchased 49.38% ($690.92 billion) of US manufactured goods exports in 2021. These countries represent 6% of the world’s population and 10% of GDP.
- The US chemical manufacturing sector’s market value was over $64 billion in 2022.
- Consumer electronics manufacturing in the US was valued at over $738 billion in 2022.
- 15% to 70% of the cost of produced goods goes into machinery maintenance in manufacturing.
- US manufacturing output grew 81% from 1997 to 2021.
- 82% of companies reported unplanned downtime in the last three years.
Insights on Computer-Aided Manufacturing
Computer-aided manufacturing (CAM) has transformed the manufacturing landscape by using computer software to control machine tools, eliminating manual setup and improving accuracy. Let’s explore some statistics that highlight the impact of CAM:
- The CAM market size was $2,689 million in 2020.
- Globally, Madagascar leads in interest in computer-aided manufacturing in 2023.
- The CAM market is projected to reach $5,477 million by 2028.
According to Allied Market Research, the compound annual growth rate (CAGR) of the global computer-aided manufacturing market is estimated to be 8.4%. Experts also forecast that the global computer-aided design (CAD) market will reach $13.83 billion by 2028. Currently, there are 56 CAM software platforms listed on G2, with users rating computer numerical control (CNC) feature recognition as a notable feature in CAM software.
Insights on US Manufacturing
The United States is a major player in the manufacturing world, with a strong emphasis on technological advancements and worker training. Let’s explore some statistics that provide insights into US manufacturing:
- In 2021, manufacturing contributed $2.3 trillion to the US GDP.
- Manufacturing constitutes 12% of the US GDP.
- 13 million Americans work in the manufacturing sector as of 2023.
- The manufacturing sector ranks 4th in US employment, after sectors like healthcare and social assistance.
- Manufacturing productivity has risen by 3.3% since 1987, with a 124% increase in motor vehicle and parts production.
- US manufacturing imports account for 18.2% of intermediate goods and services.
Manufacturing Jobs Statistics
Manufacturing jobs have evolved over the years, with automation playing a significant role. However, there is still a need for human skills in fixing and programming the new equipment. Let’s explore some statistics on manufacturing jobs:
- If key manufacturing industries restore growth and competitiveness, they could add 1.5 million jobs.
- Manufacturing jobs represent 9.6% of all US employment.
- Manufacturing jobs have declined since their peak in 1979, currently accounting for 22% of US employment.
- The current manufacturing employment is only 1.3% below its pre-pandemic peak.
- Manufacturing jobs have added 1.3 million roles since 2020, yet remain below pre-pandemic levels.
According to the Census, 25% of the manufacturing workforce is 55 years or older. Over the last decade, manufacturing employment has increased by 8.2%. The pharmaceutical and medicine manufacturing sector provides 18.2% of jobs in the US, followed by the computer and peripheral equipment manufacturing sector at 2.3%. It is anticipated that 3.5 million manufacturing jobs will open in the next decade, with 2 million likely going unfilled due to a skills gap.
Manufacturing Wages Statistics
Manufacturing wages vary based on region and expertise. Specialized roles command higher pay, while automation can impact salaries. Let’s explore some statistics on manufacturing wages:
- In 2023, the average manufacturing wage is around $17.50 per hour.
- Manufacturing production decreased 0.3% year-over-year as of May 2023.
- Since 1997, the US has seen a 25% decrease in manufacturing firms and plants.
The average annual compensation in manufacturing was $95,990.00 in 2021, which is 8.8% higher than the average compensation in the total private industry.
These statistics demonstrate the significant progress and ongoing transformation in the manufacturing industry. With advancements in technology and increasing production, manufacturing continues to play a vital role in job creation, economic growth, and the overall well-being of communities. By understanding the latest trends and embracing innovative approaches like computer-aided manufacturing, businesses can thrive in this fast-evolving landscape.
For more information on computer-aided manufacturing and its importance, check out our guide here.