Despite the worst economic downturn in decades, manufacturing continues to play a critical role in the U.S. economy, according to “The Facts About Modern Manufacturing” handbook, produced by The Manufacturing Institute, the Manufacturers Alliance/MAPI and the U.S. Department of Commerce.
According to the handbook, one in six U.S. jobs is in or directly tied to manufacturing. Yet the industry is challenged by increasing nonproduction costs – including health care and energy costs – and an education system that “is not equipping American students and workers with the right skills needed to compete in the modern global manufacturing economy,” says Emily Stover DeRocco, president of The Manufacturing Institute.
These “nonproduction costs” could hamper the U.S.’s ability to compete in global manufacturing, DeRocco says. “Rising costs, however, are hampering our manufacturers’ competitiveness in a global, interconnected marketplace. Non-production costs add almost 18% to U.S. manufacturers’ costs relative to our major trading partners.”
The Facts book points out major cost drivers that are hurting U.S. manufacturing competitiveness, investment and job creation.
