How Manufacturing Benefits the US Economy and Why This is Important 

Manufacturing plays an absolutely crucial role in every economy.

This is especially true for the United States (USA) economy, largely due to the critically important principles that this country was founded upon, such as free enterprise, personal sovereignty, and a set of important personal and business freedoms.

(It is my opinion that these principles literally saved humanity.)

How Manufacturing Benefits the US Economy
Manufacturing benefits the US economy by supporting free enterprise, empowering national and personal sovereignty, creating more and better-paying jobs, creating a multiplier effect for the economy through the use of inputs and supply chains, improving R&D and innovation techniques, creating exporting opportunities, and strengthening local, regional and trading partner economies.

After all, these freedoms and rights were introduced as a new concept -- only about 250 years ago which is really not that long ago -- that laid the foundation to separate from the old feudalistic ideas that ran the world. 

The creation and manufacturing of a product is the chief activity of a functional, healthy, sovereign society.

Whether by improving the value (such as delivering a reduced cost on a cast iron pan) and delivering a better product to the market, or innovating an entirely new product from an idea (like an Apple iPod), manufacturing is one of the most important activities that can be done to create a healthy US economy.

This is largely because manufacturing benefits the US economy as it promotes free enterprise, creates jobs, drives innovation, fosters research, and development, promotes exports, increases trade partnerships, and stimulates economic growth.

Here are ten important points supported by credible .edu and .gov references illustrating how manufacturing benefits the US economy and why it really matters:

1. Job Creation: 

Manufacturing industries provide employment opportunities to a significant portion of the population. 

According to the U.S. Bureau of Economic Analysis, as cited on the official website of the U.S. Department of Commerce, manufacturing supports approximately 11.7 million jobs in the United States and may be responsible for about $10 trillion in economic development per year.

These jobs not only directly contribute to economic growth but also create a ripple effect by supporting jobs in other sectors such as transportation, logistics, services, and the important use of natural resources both locally and abroad.

2. Higher Wages and Benefits: 

Manufacturing jobs tend to offer higher wages and better benefits compared to many other sectors. 

A study conducted by the National Bureau of Economic Research, as cited on the website of the Manufacturing Extension Partnership, states that manufacturing workers earn higher wages and benefits on average compared to non-manufacturing workers with similar skills and education levels. 

This helps to increase disposable income and consumer spending, further stimulating the economy.

3. Economic Multiplier Effect: 

Manufacturing activities have a significant multiplier effect on other sectors of the economy. 

The National Institute of Standards and Technology (NIST), as referenced on its official website, explains that for every $1.00 spent in manufacturing, an additional $2.74 is generated in economic output. 

This effect is primarily due to the interconnectedness of supply chains and the purchase of raw materials, goods, and services from various industries.

4. Research and Development (R&D): 

Manufacturing companies are often at the forefront of innovation and technological advancements. 

They invest heavily in research and development to improve processes, develop new products, and enhance efficiency. 

The National Academies of Sciences, Engineering, and Medicine, in their publication "Making Value for America: Manufacturing and Innovation Policies for the 21st Century," stress the importance of manufacturing in driving R&D, which leads to new technologies, patents, and knowledge spillovers that benefit the economy as a whole.

5. Export Opportunities: 

Manufacturing plays a crucial role in international trade by producing goods for export. 

The U.S. International Trade Administration, on their website, highlights that manufacturing accounts for the largest share of total U.S. exports. 

By manufacturing and exporting goods, countries can generate foreign exchange income, narrow trade deficits, and improve their balance of payments, positively impacting the overall economy.

To view all of our articles and resources related to international marketing, go here:

International Marketing

6. Local and regional development: 

Manufacturing sectors often act as anchors for regional development, particularly in rural areas or regions with limited economic opportunities. 

Additionally, manufacturing provides many local opportunities to the community. Not just for local jobs and economic development, but also as a resource for local leaders during emergencies and social events.

The Economic Development Administration, in their report on "The Contribution of Manufacturing to U.S. Economic Growth," explains that manufacturing can revitalize an area, attract additional investments, and create a more diverse and sustainable economy.

7. Trade agreements:

One of the most important functions of manufacturing to the US economy is the development of trade agreements. 

Whether a trade agreement is created across national lines, or across the street, trade agreements can create a positive relationship among multiple parties.

This not only increases the flow of money but also helps serve more customers and empower more people with the positives of the manufactured product.

For an excellent article about free trade agreements, go here:

What does a free trade agreement do? (Examples)

For another fascinating article on one of hte most exciting trade agreements ever developed, go here:

What is the RCEP trade agreement in simple terms? (15 nations, $26 tril)

8. Make global friends and build a better network

Another chief function and benefit of manufacturing for the US economy is the creation of positive friendships across the network. 

Not only does this create stronger bonds among partners, but it also reduces tensions.

After all, if you have a trading partner across national borders, don’t you want to strengthen learn more about trading partner cultures, customers and customs?

Of course, you do. 

Additionally, manufacturing a product (s) inherently implies expertise in a niche and a marketplace. 

This empowers the manufacturer and its team that serves the marketplace, which potentially represents a vast network and large populations of people who see the manufacturer in a positive light.

Here is an excellent article about a trade agreement that provides many opportunities:

How will CAFTA-DR benefit consumers? (Costa Rica vs Honduras vs US)

For a very helpful article about international marketing and gaining more opportunities, go here:

What are the elements of international marketing? (Answered!)

For an excellent article about actually building your network, go here:

How do you do referral marketing?

9. Increases personal and business sovereignty 

One of the least talked about and prioritized benefits of manufacturing to the US economy is a stronger sovereign environment. 

Sovereignty is the ultimate expression of individual rights.

And nothing is more powerful than manufacturing products and services that are in demand and successfully selling them to a marketplace(s) that is willing to trade their resources for the item(s).

This activity produces the ability to make your own choices, uplift others that support the manufacturing process, and have more control over your economic life -- giving you as a manufacturer an increase in personal sovereignty.

Contract law, more specifically the LLC, is one of the most important contributing factors to the promotion of personal and business sovereignty the world has ever seen. For more information, visit our article here:

What is the point of having an LLC? (Pros and cons)

10. Supports free enterprise

Let’s face it…

Free enterprise is the single greatest form of governance for the public good.

With free enterprise, an individual has the right and freedom to literally manufacture a product from an idea and be able to make a living for their family, community, state, and nation.

Free enterprise is defined as a free market economy that lets consumers and businesses decide upon the appropriate flow of goods, products, and services, with no/minimal state control. 

For more information about how excellent free enterprise is, go here for a very helpful article:

What exactly is free enterprise?

For an eye-opening article on what would happen without free enterprise, more closely resembling communism andor the British Crown (currently the world's largest land owner), go here for an excellent article:

What would happen without free enterprise (6 bad things)

Some experts believe that many of the old forces are still trying to hold on to old imperialist ideas in order to stay in control and stifle US manufacturing, thereby reducing freedoms and national sovereignty. 

This is another reason why manufacturing is a core component to the health of the US economy.

As marketers and manufacturers, we must promote free enterprise in the US and around the globe to increase trade agreements and the flow of capital resources across the street, across state and national borders.

Our freedom and personal sovereignty literally depend upon it.

You can do it!