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Manufacturing

Overview

Manufacturing is the process of converting raw materials and/or parts into finished goods that can be sold in wholesale or retail markets or exported for sale in other countries. It covers a wide range of industries, from food and beverages to pharmaceuticals, iron and steel to textiles, as well as lumber, tobacco, automobiles, aerospace, and petrochemicals.

Manufacturing consists of two categories: durable and nondurable goods. Durable goods, such as cars, airplanes, and large household appliances, may be used for a long time. Nondurable goods, such as food, cosmetics, and clothing, are consumed more rapidly.

Manufacturing employs workers from all skill and education levels and interests. From the top down, employees include company presidents and CEOs, accountants, sales and marketing workers, order processors, customer service workers, secretaries, and others who plan, organize, and manage operations.

Engineers, whose work typically focuses on research and development, analysis, planning, surveying, application, facility evaluation, and more, play a key role in manufacturing. Computer science also is becoming increasingly important because of increasing use of robotics, advanced artificial intelligence, and automated processes. Managers, supervisors, and forepersons oversee manufacturing plants and production workers, who comprise the largest group of manufacturing employment.

Despite some bright areas (e.g., food, beverage and tobacco products; chemical, plastics and rubber products; computer and electronic products; and electrical equipment manufacturing), the manufacturing industry in the United States is expected to experience slow growth (and some sectors will even decline) as factories and jobs are sent overseas to take advantage of cheaper labor and materials costs. Automation is also dampening employment by reducing the need for plant workers. Also, advances in technology that allow large manufacturers to maintain productivity with fewer workers are forcing small manufacturers, who can't compete with large firms, out of business.

There were nearly 13 million manufacturing workers in the United States in November 2024, according to the National Association of Manufacturers (NAM). In 2023, the U.S. Department of Labor reports that 7.9 percent of wage and salary workers in manufacturing were members of unions, down from 8.5 percent in 2020.

One of the biggest innovations in the industry is the use of cutting-edge technologies and work processes (which are called advanced manufacturing, Manufacturing 4.0, or the Fourth Industrial Revolution) to improve efficiency and production quality, increase flexibility and responsiveness to market demands, generate added value, and achieve other goals. Workers in advanced manufacturing use tools such as artificial intelligence, digital design and prototyping, advanced robotics, Big Data, data analytics, vertical and horizontal integration, cloud computing, virtual and augmented reality, and the Industrial Internet of Things, as well as nontraditional manufacturing techniques such as additive manufacturing, nanotechnology, computer numerical control machining, sustainability manufacturing, and roll-to-roll manufacturing. "Advanced manufacturing is changing the nature of manufacturing—creating new, technically advanced and higher-paying positions," according to the U.S. Department of Defense. "Today’s factories are safe, bright, energetic technology hubs operated and managed by capable, educated individuals—a stark contrast to the depiction of the noisy and dark factories of the past."

The U.S. manufacturing industry remains one of the world's leaders and still offers many excellent job paths for those who are up-to-date with cutting-edge technology and who are willing to continue to learn throughout their careers. It also provides significant financial, benefits to the overall U.S. economy. "Including indirect and induced impacts, for every $1.00 spent in manufacturing, there is a total impact of $2.69 to the overall U.S. economy," according to NAM. "This figure represents one of the largest sectoral multipliers in the economy."

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