Manufacturing Sector - Job Multiplier

6/12/2013 by Ed Bradstreet

The manufacturing sector accounts for 80+% of exports (United States) and 90% of patents according to the U.S. International Trade Commission and the Department of Commerce.  Every new manufacturing job creates an additional 4.6 jobs to support it.  For high-tech manufacturing jobs, the multiplier effect rises to 16 additional jobs.  300,000+ small and medium-size manufacturers based in the U.S. account for 50+% of the U.S. total manufacturing employment.   The trend of offshoring and/or outsourcing manufacturing outside of the U.S. has shifted in the last 12+ months since labor cost savings overseas are being offset by energy costs (plentiful and cheap in the U.S.),  and material and transportation costs (rising overseas).  This bodes well for the U.S., where our workforce is huge.