Manufacturing is Still the Engine of the Economy

Its holiday party season, which means its time for people to give me that puzzled look when I tell them what I do for a living: I work for a nonprofit that helps manufacturers. I can tell what they are thinking: Why on earth would manufacturers need a no-profit to help them?

Its simple: Manufacturing is key to a strong U.S. economy, but 90 percent of manufacturers are small and midsize companies that seldom have the resources to compete in a global economy. Many people think that with so much of manufacturing moving offshore, the United States has little choice but to transition into a service economy, but I disagree. As a country, helping manufacturing thrive is one of the best investments we can make in our economy.

Its important to fight to keep those manufacturing jobs because they are good jobs. The average annual salary for a worker in manufacturing is about 55,000, compared to $33,000 for the average service worker. Manufacturing jobs also offer great benefits. In the most recent State of Manufacturing in Washington survey conducted by Impact Washington, nearly seven in 10 manufacturers in Washington said they offered health benefits to their employees. In addition, each manufacturing job in the local economy helps to create three additional jobs in the service sector. There is a reason that emerging economies turn to manufacturing to build their economies. They know it is the surest way to keep growing.

With 95 percent of the worlds consumers living outside the United States, manufacturing also offers an opportunity to tap those fast-growing markets. In China, the emerging middle class is already larger than the entire U.S. population. And the Chinese like products made in America. Despite the contraction of U.S. manufacturing in the early 2000s, the Made in America brand still represents high quality, innovation and reliability. Why wouldnt we capitalize on such a branding advantage?

Finally, we have the competitive advantage of being the worlds leading innovator. The more unique the product, the more important it is to make sure its made in America. Why would you want to manufacture an innovative product overseas where intellectual property protections are weak, and where quality issues, travel time to establish and manage production, and shipping costs can increase the total cost of production?

So the next time Im at a party and someone asks me what I do for a living, maybe Ill just say, Im helping to rebuild the U.S. economy.

Linda Adams is marketing manager at Impact Washington, which is part of the Manufacturing Extension Partnership, a national network of not-for-profit centers that help small to midsize manufacturers be globally competitive.