what is manufacturing? - census.gov€¦ · shipments of food products, petroleum and coal...

What is Manufacturing?

Manufacturing – Mechanical, physical, or chemical transformation of materials, substances or components into new products.

1

Importance of Manufacturing

• U. S. is the world’s largest manufacturing country, producing approximately 21 % of the world’s manufactured goods. Source: United Nations, 2009.

• Manufacturing comprises 11.7 % of GDP. Source: US Bureau of Economic Analysis.

• Manufacturing comprises 9.0 % of total U.S. employment, directly

employing 10.9 million workers. Source: US Census Bureau

• 70 % of all business Research & Development in the U.S. is done by

manufacturing companies. Source: National Science Foundation

2

Types of Manufacturing

• 15% Transportation Equipment – Automobile manufacturers – Aircraft manufacturers

• 7% Machinery – Construction Machinery – Farm Machinery

• 13% Food Products – Grain Milling – Meat, poultry and seafood production

• 14% Petroleum and Coal Products – Petroleum Refineries – Asphalt Plants

.

5

Types of Manufactured Goods

• Durable Goods – Hard Goods: Goods that generally last 3 years or longer.

– Examples: Automobiles, jewelry, tractors

• Non-Durable Goods – Soft Goods or consumables: Goods that are used immediately or consumed in less than 3 years.

– Examples: Gasoline, food, beverages.

6

Value of Shipments of Manufacturing Industries: January 1996 - August 2012

Source: U.S. Census Bureau, Manufacturers’ Shipments, Inventories, and Orders Survey, 1996-2012

$0

$100

$200

$300

$400

$500

$600

1996 1999 2002 2005 2008 2011

Billions of Dollars, Seasonally Adjusted

$287.0 Billion

$476.9 Billion Total

Manufacturing

Recession

Durable

Goods

Industries

Nondurable

Goods Industries

$156.9 Billion $222.4 Billion

$130.2 Billion

$254.5 Billion

7

Shipments and New Orders of Durable Goods: January 1996 - July 2012


$0

$50

$100

$150

$200

$250

$300

1996 1999 2002 2005 2008 2011

$230.7 Billion


$156.9 Billion

$155.9 Billion

$230.5 Billion Shipments

New Orders

Recession

8

Historical Percentage of Shipments of

Select Durable Goods: July 2012

Source: U.S. Census Bureau, Manufacturers’ Shipments, Inventories, and Orders Survey, 1996-2012. July 2012 Historic Timeseries NAICS, July 1958 and July 1975 Historic Timeseries SIC.

2.4%

2.8%

0.5%

3.4%

16.5%

6.3%

8.8%

4.5%

6.1%

4.2%

3.0%

1.2%

Construction Machinery

Electromedical, Measuring, andControl Instruments

Computers

Medical Equipment

1958 1975 2012

9

Shipments and New Orders of Transportation Equipment:

January 1996 – July 2012


$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

1996 1999 2002 2005 2008 2011

$69.8 Billion


$40.4 Billion

$43.9 Billion

$80.6 Billion

Shipments

New Orders

Recession

10

Shipments and Exports, U.S. Manufacturing:

2000 – 2011

Source: U.S. Census Bureau, Manufacturers’ Shipments, Inventories, and Orders Survey, 1996-2011 U.S. Census Bureau, Foreign Trade Division, U.S. Trade 2000 – 2011.

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Billions of Dollars, Not Seasonally Adjusted

$4208.6

Billion

$5491.4

Billion Total Manufacturing

Recession

Manufactured

Exports

$707.2

Billion

$1276.3

Billion

11

Sales, Shipments, and Exports of Motor Vehicle and Parts:

January 1996 - July 2012

Source: U.S. Census Bureau, Manufacturers’ Shipments, Inventories, and Orders Survey, 1996-2012 U.S. Census Bureau, Monthly Retail Trade Survey, 1996 -2012 *U.S. Census Bureau, Foreign Trade Division, U.S. Trade 2000 – 2012. Export data not seasonally adjusted.

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

1996 1999 2002 2005 2008 2011

$49.6 Billion


$30.9 Billion


Shipments

Retail Sales

Recession

Exports* $9.1 Billion

$4.9 Billion

12

Source: U.S. Census Bureau, County Business Patterns, 2010 13

Source: U.S. Census Bureau, County Business Patterns, 2010 14

Examples of Machinery

– Construction equipment: Bulldozers, Backhoes, Road Graders

– Industrial Machinery: Used to produce products such as, textiles, semiconductors, plastics, rubber and food processing.

– Material Handing equipment: Elevators, Moving stairways, Conveyors, Stacker Machinery

– Farm Machinery: Tractors, Combines, Plows

15

Shipments and New Orders of Machinery:



$0

$5

$10

$15

$20

$25

$30

$35

$40

1996 1999 2002 2005 2008 2011

$33.0 Billion


$20.9 Billion

Shipments

Recession

New Orders

$21.2 Billion

$30.2 Billion

16

Shipments and Exports of Machinery:



$0

$5

$10

$15

$20

$25

$30

$35

$40

1996 1999 2002 2005 2008 2011

$33.0 Billion


$20.9 Billion

Shipments

Recession

Exports*

$6.6 Billion

$13.6 Billion

17

Comparison of Shipments and Exports of Construction

Machinery to Shipments of Industrial Machinery:



$0

$1

$2

$3

$4

$5

$6

1996 1999 2002 2005 2008 2011

$3.4 Billion


$3.2 Billion

$1.6 Billion

$5.5 Billion

Industrial

Machinery

Construction

Machinery

Recession

$2.2 Billion

$0.7 Billion Construction

Machinery Export*

18

Why are Primary Metals

Important to the Economy?


• Base manufacturing industry

• Feeds into other sectors of the economy, from the manufacturing of automobiles to fabricated structural steel for construction projects like bridges or new office buildings.

19

Shipments of Primary Metals and Transportation

Equipment: January 1996 – July 2012


$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

1996 1999 2002 2005 2008 2011

$28.3 Billion


$12.7 Billion

$40.4 Billion

$69.8 Billion

Primary

Metals

Transportation

Equipment

Recession

20

Shipments of Food products, Petroleum and Coal Products,

and Chemical Products: January 1996 – July 2012


$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

1996 1999 2002 2005 2008 2011

$60.7 Billion


$33.3 Billion

$13.3 Billion

$68.6 Billion

Food

Products

Petroleum and

coal products

Recession

Chemical

Products

$30.8 Billion

$62.1 Billion

21

Shipments of Chemical Products and Pharmaceuticals

and Medicines: January 1996 – July 2012


$0

$10

$20

$30

$40

$50

$60

$70

$80

1996 1999 2002 2005 2008 2011

$62.1 Billion


$30.8 Billion


Chemical

Products

Pharmaceutical

and Medicines

Recession

22

Capacity Utilization Rates of U.S. Manufacturing:

2008-2012

50

55

60

65

70

75

80

2008 2009 2010 2011 2012

FU

LL

CA

PA

CIT

Y U

TIL

IZA

TIO

N R

AT

ES

(P

erc

en

t)

QUARTER

Q1

Q2

Q3

Q4

Note: These data are not adjusted for seasonal variation, holidays, or trading-day differences. Source: U.S. Census Bureau, Quarterly Survey of Plant Capacity Utilization, 2008-2011 23

Manufacturing companies account for majority

of US R&D performance

24

Since 2004, Manufacturing companies have accounted for about 70% of total domestic

R&D performance annually.

Source: National Science Foundation and U.S. Census Bureau, Survey of Industrial Research and Development 2004 – 2007; Business R&D and Innovation Survey 2008 - 2009

0

50

100

150

200

250

300

2005 2006 2007 2008 2009

Billions US dollars

Manufacturing

Non-Manufacturing

Total Capital Expenditures for Selected U.S. Industry Sectors: 1996 to

2010

0

50

100

150

200

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bill

ion

s o

f D

olla

rs

Recession

Mining

Manufacturing

Information

Finance

Note: Prior to 1998 data for the Information sector was included in Manufacturing Source: U.S. Census Bureau, Annual Capital Expenditures Survey 25

Percentage of U.S. Manufacturing Total Capital Expenditures for Selected

Subsectors: 1996 to 2010

Note: Prior to 1998 data for semiconductors was included in communications

equipment and electronic components and equipment manufacturing.

Source: U.S. Census Bureau, Annual Capital Expenditures Survey

0

2

4

6

8

10

12

14

16

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Pe

rce

nt Recession

Motor Vehicles

Semiconductors

Petroleum

Food

26

*SIC Classification Basis 1996-2000 NAICS Classification Basis 2001 – Present Source: U.S. Census Bureau, Quarterly Financial Report, 1996 – 2011

(100)

(75)

(50)

(25)

0

25

50

75

100

125

150

175

200

1996 1999 2002 2005 2008 2011

U.S. Manufacturers - Net Income After Tax Billions of Dollars, Not Seasonally Adjusted*

Recession

TotalManufacturing

NondurableManufacturing

DurableManufacturing

27

*SIC Classification Basis 1996-2000 NAICS Classification Basis 2001 – Present

Source: U.S. Census Bureau, Quarterly Financial Report, 1996 – 2011

(30)

(20)

(10)

0

10

20

30

40

50

1996 1999 2002 2005 2008 2011

U.S. Nondurable Manufacturers - Net Income After Tax Billions of Dollars, Not Seasonally Adjusted*

Recession

Beverage andTobaccoProducts(Included inFood until 4thQuarter 2000)

Petroleum andCoal Products

Chemicals

28

*SIC Classification Basis 1996-2000 NAICS Classification Basis 2001 – Present Source: U.S. Census Bureau, Quarterly Financial Report, 1996 – 2011

(50)

(40)

(30)

(20)

(10)

0

10

20

30

40

50

1996 1999 2002 2005 2008 2011

U.S. Durable Manufacturers - Net Income After Tax Billions of Dollars, Not Seasonally Adjusted*

Recession

Machinery

Computer andElectronicProducts(Included inMachinery until4th Quarter 2000)

TransportationEquipment

29

what is manufacturing? - census.gov€¦ · shipments of food products, petroleum and coal...

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