Advanced Manufacturing on US Economy
Advanced manufacturing strengthens the US economy, produces high income jobs, generates technological innovation and drives long-term economic growth. It requires continuous efforts to upgrade the US workforce in manufacturing. Advanced manufacturing involves both new ways to manufacture existing products, and especially the manufacture of new products emerging from new advanced technologies. Key industries for advanced manufacturing are automotive, aerospace, electronics, medical devices, plastics, food and beverage, and defense/military.
US manufacturing generates approximately 12% of the nation’s Gross Domestic Product (GDP), or roughly $2 trillion annually. Clearly, both automation and trade impacted manufacturing employment. The Great Recession of 2007-2009 was very damaging to the manufacturing production in the United States. Overall, manufacturing lost 5 million jobs between January 2000 and December 2014 due to automation and offshoring, according to the Economic Policy Institute.
Between 1970 and 2000, manufacturing employment was relatively stable, ranging from 16.8 to 19.6 million, and generally remaining between 17 and 18 million. In the early 2000s, manufacturing employment began a prolonged collapse, falling to a low of 11.5 million in February 2010, and recovering by December 2014 to 12.3 million, where it has remained. As advanced manufacturing emerges from the Great Recession, the biggest challenge is finding skilled workers who can handle the new equipment and advanced processes on the manufacturing floor.
Through the development of automation, robotics, and advanced manufacturing, the manufacturing sector has bounced back along with the overall economy. So-called advanced manufacturing, which is highly specialized and requires a facility with computers, is actually expanding. The US economy will need to fill 3.5 million skilled manufacturing jobs over the next decade, the White House says. This is an industry that employs skilled and educated workers such as engineers and scientists. It’s also an industry that adds significant value to the economy.
These skilled craftsmen, technicians, designers, planners, researchers, engineers, and managers will be in high demand over the next decade due to technological advances in tools for engineering. As a result, the industry plans to open its doors to 3.5 million new workers who are skilled in advanced machinery by 2027, according to the infographic published by Dennis Spaeth, electronic media editor at Cutting Tool Engineering.