The Manufacturing Value Chain Is Much Bigger Than You Think!
MAPI vice president and chief economist Daniel Meckstroth’s latest research takes a more comprehensive look at manufacturing’s total value chain, and his report reveals that for every dollar of domestic manufacturing value-added, another $3.60 of value-added is generated elsewhere in the economy.
He also shares updated statistics on manufacturing’s substantial share of the economy and workforce, based on a new method for calculating manufacturing’s “multiplier effect”.
Dr. Meckstroth argues that manufacturing accounts for about one- third of GDP, not one-tenth, as is usually stated. Among his findings:
- The domestic manufacturing value-added multiplier is 3.6, which is much higher than conventional calculations. For every dollar of domestic manufacturing value-added destined for manufactured goods for final demand, another $3.60 of value-added is generated elsewhere.
- For each full-time equivalent job in manufacturing dedicated to producing value for final demand, there are 3.4 full-time equivalent jobs created in non-manufacturing industries.
To read the complete report or listen to Dr. Meckstroth’s video, click here.