Manufacturing Day 2024: 7 Must-Know Facts About the Industry

Happy Manufacturing Day 2024!

Manufacturing Day not just an opportunity for manufacturers to open their doors and inspire the next generation by showcasing modern manufacturing. It is also a chance for all of us to recognize the hard work and contributions manufacturers make to our everyday lives.

Every manufactured good represents countless hours of hard work, ingenuity, and craftsmanship. On Manufacturing Day, let’s take a moment to appreciate the dedicated men and women who make it all happen—those who ensure quality is never compromised, safety is always a priority, and deliveries are made on time. Their commitment keeps the world moving, and we rely on their expertise every day.

At Genius ERP, we’re proud to support hundreds of manufacturers across North America in reaching their goals. Thank you for all you do to keep this vital industry moving forward.

7 Facts About the Manufacturing Industry That You Should Know

Today, for Manufacturing Day 2024, we thought it would be fun to share seven interesting facts about the manufacturing industry in Canada and the United States.

1. The manufacturing sector in the United States would be the world’s seventh-largest economy.

Manufacturing contributed 2.9 trillion U.S. dollars to the gross domestic product (GDP) of the United States in 2023, accounting for 12% of total U.S. GDP. When compared to the global economic landscape, only six nations—including the U.S. as a whole—outpace the American manufacturing sector in terms of GDP. These countries are the United States, China, Japan, Germany, India, and the United Kingdom.

Similarly, in Canada, manufacturing is also a vital part of the economy, contributing around $174 billion to GDP in 2023, or over 10% of the country’s total GDP.

2. The manufacturing industry is one of the top employers in the United States

There are 14.92 million manufacturing workers in the United States, accounting for just over 8.5% of the total U.S. workforce. California and Texas are the nation’s largest manufacturing states.

The average U.S. manufacturing business now employs more people than it did five years ago—and even more jobs are expected to be added in the coming years. By 2034, the United States is projected to need an additional 3.8 million manufacturing jobs.

3. The manufacturing industry employs a lot of people in Canada, too

In 2023, the manufacturing sector employed 1.8 million people, representing 9% of Canada’s total workforce

Manufacturing jobs are expected to keep growing in Canada over the coming years. Despite a slowdown in the overall job market in 2023, Ontario’s manufacturing sector saw a 2.7% increase in jobs year-over-year.

4. Most manufacturing companies are small businesses

According to the U.S. Census Bureau, only 1.5% of manufacturing firms have a workforce exceeding 500 employees. The overwhelming majority—three-quarters of all manufacturing companies—are small businesses with 20 employees or fewer. The average manufacturing business in the United States has 17.1 employees.

Similarly, 93% of manufacturing industry workers in Canada work at firms with fewer than 99 employees. Only 0.6% of manufacturing companies in Canada have more than 500 employees.

5. Every dollar invested in manufacturing generates a total economic impact of $2.69

For each dollar spent on manufacturing, the total economic impact is $2.69 when considering both indirect and induced effects. This makes manufacturing one of the most impactful sectors in the U.S. economy.

Additionally, for every manufacturing job created, 4.8 jobs are created across the broader economy, factoring in those same indirect and induced effects.

6. Over the past 30 years, exports of US-manufactured goods have more than quadrupled

In 2023, manufacturers in the United States hit a new record high and exported roughly $1.6 trillion in goods.

The 2023 export total is more than four times the amount exported in 1990 ($329.5 billion), accounting for 80% of all U.S. merchandise exports.

7. Manufacturers drive more innovation than any other sector of the economy

Manufacturers in the United States perform 64 percent of all private-sector R&D. In 2017, the manufacturing sector spent 252 billion U.S. dollars on R&D. Top corporate innovators are technology, motor vehicle and pharmaceutical companies. In Canada, industrial R&D spending was projected to be 23.8 billion dollars in 2022.

Similarly, industrial R&D spending in Canada hit a record high in 2022, with 30.4 billion dollars spent on R&D.

From the products we use every day to the innovation that drives entire economies, the hard work and dedication of those in the manufacturing industry keep the world moving forward. We’re proud to stand alongside these hardworking individuals and support their continued success. Today, and every day, we thank manufacturers for their essential role in shaping our lives and building a brighter future.