Is Manufacturing in the US Growing?

Manufacturing can be defined as the process of converting components, parts, and raw materials into finished products, on a large scale, through the use of machinery and manual labor. Manufacturing represents approximately 15 percent of America’s Gross Domestic Product (GDP). Major manufacturing sectors in the U.S. include telecommunications, automobiles, machinery, and aerospace. The number of manufacturing jobs has increased consistently for the last eight months according to the U.S. Bureau of Labor Statistics. Here are some reasons as to why manufacturing is growing the economy.

Is Manufacturing in the U.S. Growing? Sales Strategy

Historically manufacturers only ever sold their products to other businesses. Those businesses would inflate the prices of products which they then sell to the public. With the aid of technology, e-commerce platforms, and a new approach to marketing, manufacturers are increasingly focusing on selling directly to the public below retail prices. As a result, manufacturers are able to cut out the middle man in the transaction. Manufacturers are also gaining the marketing confidence to approach other businesses with procurement budgets directly. The government and hospitals stand to benefit from lower costs by buying directly from the manufacturer. That’s good news for the taxpayers.

Made in the USA

American’s are fiercely proud of and firmly believe in buying American-made products. However, cheap imports can make this difficult. Today, there is now a growing trend to support American manufacturers. There is a lot to be said for American quality and it inspires buying with confidence. By protecting local manufacturers from overseas suppliers, experts believe demand for American-Made products will continue to rise.

Consumer Brand Loyalty and Support

In some cases, consumer brand loyalty and brand support are more important than product quality and price. Americans want to see domestic companies and the people who run the companies succeed. After all, it’s the American dream. However, American manufacturers need to be cognizant of three important things. Firstly, product quality. Secondly, fast innovation and improvements. Thirdly, customer feedback. American’s are never shy to share their opinions. Therefore, companies that listen to the consumers will receive more support and brand loyalty than those that don’t.

Socially Responsible Capitalism

In addition to selling an affordable and quality product, part of building a successful brand is having a positive brand story. As a result, American manufacturers are starting to give back to their local communities and contribute to public causes. It is also vital that manufacturers align themselves with initiatives to protect the environment and fight climate change. Manufacturers are going public with their stories and how they are changing their processes and making a difference.

Competitive Energy Costs

For many years, the cost of electricity has had a bigger impact on manufacturing costs than labor costs. However, in some states like Texas, electricity prices have gone down. As a result, domestic manufacturers are gaining a competitive advantage over other countries such as China where the cost of electricity is rising.


Foreign countries that have relied on cheap labor to keep the cost of manufacturing low, will struggle once American investments in automation start to pay off. Though the cost of switching over to automation is high, the long-term benefit is low cost, high output production. This means cheaper and higher quality products for the world’s biggest economy.

Additional Reading: With The Made in USA Standard – Federal Trade Commission (FTC)

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