The Importance ofManufacturingSouthern New England Economic Summit and OutlookMay 30, 2003The Importance of ManufacturingOE!IE" Manufacturing Outlook #ampaign for $rowth and Manufacturing !enewal $%& 'oreca(t &er(onal #on(umption 'oreca(t)u(ine(( In*e(tment 'oreca(tInternational Trade 'oreca(t #hanging 'ace of Manufacturing + ,arge(t Sector( in -./0#hanging 'ace of Manufacturing+ ,arge(t Sector( in 200-Manufacturings Contributions are Huge:$%& growth&roducti*ity"age(!0%International Trade Manufacturing1,arge(t #ontri2ution to 34S4 Economic $rowth-..252000Manufacturing Manufacturing21% 21%Software* Software*Finance/insurance Finance/insurance/real estate /real estate Retail trade Retail tradeServices ServicesWholesale trade Wholesale tradeTransportation/public utilitiesTransportation/public utilities Rest of econo! Rest of econo!&roducti*ity $rowth16igher and 'a(ter Manufacturing &roducti*ity 6a( $rown /0 &ercent 'a(ter Than O*erall &roducti*ity $rowthManufacturing Share of !eal $%& 0 Employment$%& 6a( !emained #on(tant"hile Share of Employment 6a( %eclinedManufacturing &ay( More122 &ercent 6igher "age("1#$### "1#$###"2#$### "2#$###"%#$### "%#$###"$### "$###"'#$### "'#$###"(#$### "(#$###Manufacturing Manufacturing Rest of Wor)force Rest of Wor)force*verage *nnual +o

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pensationWagesBenefitsWholesale/retailServicesAgricultureTrans, finance, minerals, Trans, finance, minerals,construction, etc..construction, etc.. Manufacturing Multiplier1Support( . Million 7o2( inOther Sector(# #2 2& &( (, ,1# 1#12 121& 1&1( 1(Manufacturing -obs Manufacturing -obs .ther Sectors/ .ther Sectors/-obs 0in

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illions1Manufacturing !0%8merican Manufacturer( #ontri2ute More to !0% Manufacturing )ecome( More Trade5Engaged Manufacturing )ecome( More Trade5Engaged,ead( ,ead( the !e(t of the Economy the !e(t of the Economy # #' '1# 1#1' 1'2# 2#2' 2'%# %#%' %'12,3 12,3 4 4,2 ,2 / /21 21 4 42% 2% / /2' 2' 4 423 23 4 422 22Manufacturing Manufacturing.verall econo! .verall econo!5on6anufacturing 5on6anufacturingTrade as a % of gross outputTrade as a % of gross outputShort Term #hallenge(1 200- wa( a Manufacturing !ece((ionManufacturing 7o2 ,o((e( + 33 #on(ecuti*e Month( Manufacturing 7o2 ,o((e( 5 33 #on(ecuti*e Month( Manufacturing17o2 ,o((e( 2y State+3.1% 0-5.9% 6-8.9% 9-10.9% 11+%Manufacturing 7o2( ,o(t Since 2000# 19 Connecticut 27,800 jobs 10.5% of all anufactu!ing jobs# 21 "assac#usetts $5,200 jobs 10.3% of all anufactu!ing jobs# 7 %#o&e 'slan& 9,300 jobs 12.2% of all anufactu!ing jobs (((#1 Was#ington )tate 55,700 jobs 15.7% of all anufactu!ing jobs#2 "aine 12,*00 jobs 1$.*% of all anufactu!ing jobs Manufacturing13nderperforming &a(t !eco*erie(Manufacturing13nderperforming &a(t !eco*erie(SOURCE:NAM calculations from Federal Reserve Data SOURCE:NAM calculations from Federal Reserve Data"hy Such a Sluggi(h !eco*ery9*prior 3 recoveries "hat "e Need1N8M:( Strategy for $rowth and Manufacturing !enewal1 ; a plan of action for the federal go*ernment to complement pri*ate (ector action( to e )urdenE>pand International Trade#ur2 6ealth #are Mandate( Sta2ili?e Energy &ricing !ai(e 8warene(( a2out manufacturing:( (trength(%raw 8ttention to #hallenge(Identify New Solution( for Structural&ro2lem( Enact Solution(www.nam.org/renewal"orkforce O2@ecti*e+ Make manufacturing preferred career choice by 2010The )ad New(AManufacturing 'ace( a #ri(i( ,ittle under(tanding of our importance Negati*e image( repel( de(ira2le candidate( Education and training (y(tem( are not tuned in to our need( "E 8!E )E6IN% T6E #3!EManufacturing:( Image I( )ad ;%ark, dirty, dangerou(, dead5end, demeaning= 8((em2ly ,ine;Torturou( and tediou(=;8nt in an ant colony= ,ow pay, lay5o