Career Development Industry News

What Industry is in Your Wallet?

Source: NIST Blog

How Manufacturing Industries Compare

Value added per employee across all manufacturing industries in 2016 was just over $175,000.  Five industries were above that benchmark and are an interesting mix. If you think about these industries and where they are located, it’s not surprising that those states that are home to these industries would have much higher value added than other states.

The top two industries are related to the petro-chemical industry. The third most productive industry is computers and electronic products and is concentrated in a few states along the west coast with a small handful along the east coast (Massachusetts and North Carolina).  However, there is some concern about measurement issues in this industry(link is external) and thus it may be overstated.

The next two industries involve planes, trains, and automobiles – auto makers, parts manufacturers and other transportation equipment (think aerospace) – and are concentrated in the auto belt starting in Michigan and going down into several states in the Southeast as well as Washington.

There are five manufacturing industries that have value added less than $100,000 per employee.  These industries are labor intensive and are subject to intense global competition or serve local/regional markets. The three industries that have the lowest value added per employee are industries that have been hit hard by international competition.  Apparel, textiles, and the furniture industry have been particularly challenged over the last few years.  The wood products industry – specifically lumber, veneers, pallets/containers, flooring, and other related items (trusses, manufactured homes/structures, millwork) and the companies within it, are challenged to move into higher value added work.  The fifth lowest industry – printing and related support activities – is primarily a regional or locally serving industry.

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