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[IWS] JEC: MANUFACTURING JOBS FOR THE FUTURE [17 December 2013]
IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
Joint Economic Committee (JEC)/Democrats
MANUFACTURING JOBS FOR THE FUTURE [17 December 2013]
[full-text, 18 pages]
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overseas markets, deteriorating transportation infrastructure and an outdated and overly complex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
Strengthening America's 21st century workforce;
Expanding access to capital;
Opening markets abroad; and
Creating the conditions necessary for growth.
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