American industry has long been a global leader in the production of quality products. Industry provides good paying jobs for millions of Americans and has long led to higher wages and living standards in the US.
Interesting American Industry Statistics
If looked at independently, US manufacturing would be the 8th largest economy in the world today.
American manufacturing alone provides more than 17 million jobs in the US and accounts for nearly 1 out of every 6 jobs in the private sector. These aren’t minimum wage jobs that are being supplied by this industry either – the average annual salary is over $62,000 per year. In American manufacturing, the salary is even $15,000 higher per year.
Three Fast Facts About American Industry
1. Structural costs in the United States are 20% higher than they are in competing nations. If these costs are removed, the only three nations that would be a lower-cost platform than the US would be China, Mexico, and Taiwan.
2. Commercial tort costs to settle, fight, or pay off in judgment for American industry amounts to $260 billion per year.
3. Health care costs for American industry has increased 66% over the last decade alone, accounting for 5.2% of the structural cost.
Takeaway: 25% of the added structural cost of American industry comes because of health care. With that cost savings alone if health care could become competitive to other industrialized nations, American goods would be much more competitive. In comparison with cost burdens, producer prices only rose 1.8% as health care rose 66%. Where do these costs end up getting passed along? They end up facing the end consumer.
Other Facts to Consider About American Industry
1. The US share of global carbon emissions has declined dramatically in the last 30 years, accounting for just 16.2% of the total amount – compared with over 24% in 1980.
2. American industry historically uses the most energy, but in the last 2 years has returned to levels that were only seen in the late 1970’s.
3. American industry uses more renewable energy resources than any other consumption group in the US.
4. In the last 4 years, American industry has added over 600,000 jobs.
5. Sector profitability is cyclical in American industry, but the percentage of profitability in this current cycle is higher than it has ever been.
6. Despite advances in productivity, total spending in American industry on new research and development is just 3.2%.
Takeaway: Imagine how efficient American industry would be if more investment capital was funneled into R&D? How could that change the US economy? Would it reduce CO2 emissions even further? Because American industry is so healthy, there are some tough questions that need to be asked so that it can continued to dominate the world’s stage as a supplier. If those questions aren’t asked and answers are not sought, then the future of American industry may not be as bright tomorrow as it is today.