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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

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Joint Economic Committee (JEC)/Democrats

 

MANUFACTURING JOBS FOR THE FUTURE [17 December 2013]

http://www.jec.senate.gov/public/?a=Files.Serve&File_id=a5c87e25-ff51-4b4f-9ced-2ee4b0bee12f

[full-text, 18 pages]

 

Executive Summary

U.S. manufacturing has long been an engine of innovation, a source of good jobs with high

wages and solid benefits, and a major contributor to exports. The sector directly accounts for 12

percent of gross domestic product and employs more than 12 million people. Manufacturing is

responsible for 70 percent of private-sector investment in research and development, employs 60

percent of research and development workers and generates 90 percent of all patents. In addition,

manufacturing has the highest economic multiplier of any sector—every $1.00 in manufactured

goods is estimated to generate $1.48 worth of additional economic activity.

 

After being hit hard during the recent recession, U.S. manufacturing employment has increased

by 554,000 jobs since February of 2010. Exports are strengthening the recovery; the value of

manufacturing exports has grown by 38 percent since 2009. More than 3 million manufacturing

jobs are currently attributable to exports.

 

The recent growth in manufacturing is also partially due to companies bringing production back

to the United States. Several factors have made locating production in the United States more

attractive: productivity gains, increases in labor costs among key competitors, lower natural gas

costs in the United States and the benefits of locating production and research and development

in close proximity.

 

Despite these positive trends in manufacturing, the sector needs to add 1.7 million jobs to return

to pre-recession levels. Challenges include: a skills gap for the manufacturing jobs of the future,

insufficient support for research and development, obstacles to accessing and competing in

overseas markets, deteriorating transportation infrastructure and an outdated and overly complex

tax and regulatory system.

 

This report discusses policy proposals in four key areas to boost America's manufacturing

sector:

 

 Strengthening America's 21st century workforce;

 Expanding access to capital;

 Opening markets abroad; and

 Creating the conditions necessary for growth.

 

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