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Manufacturing

Abstract Wavy Lines

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.
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