top of page
Manufacturing
Performance Highlights
The manufacturing sector's importance has waned as the US economy becomes increasingly service-oriented and manufacturers move production abroad. The COVID-19 pandemic caused significant disruptions, leading to reduced production and subdued demand. High interest rates and consumer uncertainty continue to impact the sector negatively.
Geographic Distribution
California, Texas, New York, and Ohio have the highest concentrations of manufacturing establishments due to their large populations and economic activity. The Southeast region is increasingly attractive for manufacturers due to favorable regulations, lower costs, and access to major markets and trade routes.
Industry Outlook
Revenue is expected to grow at a CAGR of 0.2% from 2024 to 2029, reaching $7.0 trillion. Manufacturers will integrate advanced technologies to improve efficiency and reduce costs, focusing on sustainability and shifting consumer preferences. The sector will benefit from stable consumer demand and economic improvements, although high interest rates and global competition will pose challenges.
Competitive Forces
The industry is characterized by low concentration and moderate competition. Barriers to entry are moderate, with significant legal requirements and start-up costs. Successful businesses must efficiently adopt new technologies, maintain strong supply chains, and adapt to changing consumer preferences.
Major Companies
Notable players include Boeing Co. (1.2% market share), Exxon Mobil Corporation (0.9% market share), Ford Motor Co. (0.8% market share), General Motors Company (0.7% market share), and Pepsico, Inc. (0.6% market share).
Revenue
$7.0 trillion
Employees
11 million
Businesses
623,000
Wages
$797.8 billion
Economic and External Factors
Economic activity, exchange rates, and commodity prices significantly affect the demand and profitability of goods produced in the manufacturing sector. The sector is subject to extensive regulations from federal agencies such as the EPA, FDA, OSHA, and CPSC.
bottom of page