Portrait of Successful Black Male Chief Engineer Using a Tablet on an Assembly Line in the Manufacturing Industry

When we speak about and think about the manufacturing industry, it would be wise to start with a clean slate, a tabula rasa* if you will, without any preconceived notions. What image do you associate with manufacturing? Smokestacks often come to mind. But in the 21st century, a more common image may be assembly lines or robotic arms. Of course, much depends on the product that is being manufactured.

Depth and Breadth of Manufacturing Industry Statistics  

There are a lot of exciting statistics available from the NIST (the U.S. Government’s National Institute of Standards and Technology) that may help you shape your image of the U.S. manufacturing sector. These five stood out to me as particularly significant:

  • Manufacturing contributes approximately 8% of the U.S. GDP (Gross Domestic Product).
  • The manufacturing industry employs around 7 million people, 8.58% of the workforce.
  • There are currently a substantial number of job openings in manufacturing. If these openings were filled, they would:
    • Raise employment above pre-pandemic levels.
    • Equate to a 7 % increase in manufacturing employment.
  • The total output from manufacturing is approximately $2,345.85 billion.
  • The average annual compensation for a manufacturing employee is 83,369.69.83,369.83.

Depth and Breadth of Manufacturing Statistics_Quote

Manufacturing Industry Goes Deep and Wide

 What do U.S. manufacturers produce? Everything from cars to cigarettes and from planes to Pepsi. The top 10 products, in order from the highest to the lowest, are:

  • Chemicals
  • Computer and electronic products
  • Food, beverage, and tobacco products
  • Aerospace and other transportation equipment
  • Motor vehicles and parts
  • Machinery
  • Fabricated metal products
  • Petroleum and coal products
  • Miscellaneous durable goods
  • Plastic and rubber products

Exports of Made in America products help drive the U.S. economy. Interestingly enough, 96.6% of those exporters are small businesses.

Manufacturing Goes Deep and Wide - Quote

The Future of U.S. Manufacturing Industry: Looking Ahead to 2026 

Revenue for the manufacturing sector is forecasted to continue to grow over the next several years. Be that as it may, the effects of the COVID-19 (coronavirus) pandemic will continue to linger. Despite that, the sector is predicted to exhibit a period of resurgence.

Moreover, the U.S. economy is estimated to recover further, creating a solid baseline for manufacturing demand. Fortunately, oil and steel prices are projected to decline marginally from their current new highs.

Prognosticators also believe that the potential resolution of trade issues with China could bode well for export revenue, especially in the manufacturing sector. After all, China has historically been the sector’s third-largest export market.

Manufacturing Looking Ahead to 2026 - Quote

Speaking of Made in America products, there is another positive factor to consider. Now, and potentially well into the future, ocean freight and land drayage rates have soared by as much as 400% in some cases. These price increases have sorely impacted businesses that import raw materials, finished goods, or both. Not to mention the angst of shipping delays and how they are crippling American importers.

It would be a massive boon if these businesses could source more materials and goods right here in the U.S. of A.. Importers, manufacturers, and wholesale distributors would reap enormous benefits.

Now, let us leave the past and the future aside and look instead at the present.

Manufacturing Today

Much like companies in every other economic sector, or maybe even more so, manufacturers rely heavily on software to manage every aspect of their businesses:

  • Financials
    • Payables
    • Receivables
    • Budgeting
    • Forecasting
    • Invoicing
    • Collections
    • Purchasing
  • Operations
  • Inventory
  • Warehousing
  • Logistics
  • Shipping
  • Supply chain
  • Shop floor routing
  • Bills of Materials (BOMs)

Not to mention Human Resource Management (HRM) software which is a growing area when many companies, manufacturers included, are having a hard time staffing to optimal levels.

All of which means that it is…

Time to Evaluate Your Current Manufacturing Software 

If the soothsayers are correct (and we hope they are) in their projections for growth in the manufacturing sector, manufacturers should be gearing up NOW for that growth. NOW would be a good time, the right time, to take a hard look at the software that runs your business, your:

  • ERP (Enterprise Resource Planning)
  • MRP (Materials Resource Planning)
  • CRM (Customer Relationship Management)
  • Inventory Management (I.M.)
  • Warehouse Management (WMS)
  • Supply Chain Management (SCM)

NOW would be an excellent time to look for an upgrade of your current software, a move to a better software system, and indeed, if your current business management is still on-premises.

NOW would surely be a fantastic time to transition to the cloud.

NOW would be the time to evaluate the…

Holistic Business Management Software from Strategic Systems Group (SSG) 

Meet Strategic Systems Group (SSG). We have been working with manufacturers and distributors for 30 years. Yes, we have provided the software they need for three decades to thrive. This is our area of specialization and hard-won expertise. We implement, maintain, and support what we believe to be the top two systems for manufacturers and distributors, namely:

We welcome the opportunity to meet you and discuss your path to success.

Call Strategic Systems Group (SSG) at (310) 539-4645 or reach out via our contact form today!

Related Post

Workforce and Business Process Optimization = Better Business Outcomes

*Etymology: Tabula rasa is a Latin phrase often translated as clean slate in English. It originates from the Roman tabula, a wax-covered tablet used for notes, which was blanked (rasa) by heating the wax and then smoothing it. This roughly equates to the English term “blank slate” (or, more literally, “erased slate”), which refers to the emptiness of a slate prior to it being written on with chalk. Both may be renewed repeatedly by melting the wax of the tablet or by erasing the chalk on the slate.

Manufacturing Industry Statistics | NIST
2021 United States Manufacturing Facts | NAM
Manufacturing in the U.S. – Industry Data, Trends, Stats | IBISWorld