Often when we talk about manufacturing and industry in this country, we talk about loss, decline and shrinking markets. Contrary to much of this type of news, many indicators show that our industrial economy is doing quite well and overall we are still the largest economy in the world.
Recent reports about the USA slipping to number two are based on projections and statistics using weighted methodology and are not accurate.
This article from Marketwatch tells a more complete story: Sorry, But America is Still #1
Another telling data point of how well we’re doing is this one: Taken alone, the U.S. Manufacturing GDP would be the 8th largest economy in the world.
Here’s how the actual breakdown looks:
- USA 2014 GDP is $17.5 trillion
- China $ 10 trillion
- Japan $4.8 trillion
- Germany $3.9
- France $2.9
- United Kingdom $2.8
- Brazil $2.2
- THE UNITED STATES MANUFACTURING GDP
- Italy $2.2
- Russia $ 2.1
- India $2.0
That’s something to think about the next time you see a doom and gloom article about U.S. manufacturing. Here’s the full world economy visual from CNN Money.
We still make some of the best products in the world. This article from a few years ago gives a top 10 list of things made in USA.
On a side note, though not on this particular list, I am happy to say Whirlpool is one of our best customers with 8 manufacturing facilities and 28,000 people making iconic American-made products across the Midwestern United States.
The predictions made in that article in 2011 about back shoring (jobs coming back to the U.S.) are coming true. We may have lost 33% of our manufacturing jobs from 2000 to 2012 but the situations that brought that about are changing fast.
- Jobs left when you could get work done at 58 cents an hour.
- The coastal wage in China is now $3 per hour and growing.
- We’ll see a trillion dollar swing real soon.
- China’s growth has stalled.
- Currently down to 7.5% in 2014 from 9.3% in 2011 & 14% in 2007
- China has declined almost a 50% in just a few years.
Like many developing economies, they face inflation and have possibly over extended their buying of offshore products. Spent too much.
The biggest advantage we have always had in the United States is the quality we produce and the innovation we create. You can’t find that anywhere in the world and certainly not for pennies.
So let’s end the year on a high note. Instead of focusing on what we’ve lost, let’s remember all we still have and the innovative, quality products we still make.
To get started focusing on just that here is an article from the National Association of Manufacturers that tells the real comeback story of American manufacturing.
And, with the holidays right around the corner there’s plenty of American made gifts to be found at Still Made in America and Americans Working.
About the author
Mike Bingham is a Regional Sales representative for Wenzel America. Mike welcomes questions about the article or Wenzel America Coordinated Measuring Machines, 3D Metrology, Gear Measuring Machines and metrology machine training and service. email: [email protected] Ph: 248.295.4300.