Manufacturing Industry and GDP in the United States
Manufacturing industry accounted for 11% of U.S. Gross Domestic Product (GDP) in 2022, according to data from the Bureau of Economic Analysis (BEA).
Using seasonally adjusted data, manufacturing increased from $2.497 trillion in 2021 to $2.794 trillion in 2022.
The contribution of manufacturing to U.S. GDP has continued to decline. This trend, as well as a corresponding decline in manufacturing employment, has been well documented since the early 2000s,1 and explains some of the recent policy decisions made by U.S. policymakers.
According to the White House, manufacturing is one of the largest sectors of the U.S. economy.
While it remained relatively constant between 1960 and 1990, manufacturing employment began to decline in the late 1990s.
Then, in the decade from 2000 to 2010, one-third of U.S. manufacturing workers (nearly 6 million people) lost their jobs.
Fewer than 2 million of those jobs have recovered.
However, it is noteworthy that manufacturing employment reached above its 2020 peak in 2022, the first time since 1978 that it has exceeded its previous business cycle peak.
The global Covid-19 pandemic highlighted the fragility of manufacturing supply chains, leading to major shortages of key products such as medical supplies, critical minerals and semiconductors.
To strengthen the manufacturing supply chain, small and medium-sized manufacturers (SMEs)-those that employ fewer than 500 workers, comprise 98% of all manufacturers and account for 43% of employees-will need help from the U.S. government and their larger customers and suppliers.
Therefore, the White House believes it is imperative that the United States develop and implement strategies to regain U.S. leadership through investments in advanced manufacturing.
In addition, the nation’s industrial and manufacturing base underpins U.S. military capabilities by using advanced technologies to secure our democracy.
Manufacturing’s share of U.S. GDP rose from 11.4% in 2018 to 11.1% in 2019, then shifted from 10.6% in 2020 to 10.7% in 2021.