What Does the U.S. Manufacture and How Does It Impact the Economy?

Manufacturing is one of the largest sectors of the U.S. economy and contributes 10% of the country’s output.

Anna Helhoski
Rick VanderKnyff
Updated
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Updated on March 13.
While it’s well off its peak, manufacturing remains one of the largest sectors of the U.S. economy, contributing to about 10% of the country’s overall output. But global supply chain dynamics make it difficult to measure precisely which products qualify as “made-in-America,”according to the U.S. Commerce Department.
That’s because much domestic manufacturing relies on foreign parts and materials that are imported into the U.S. for assembly. Those assembled consumer products may then be sold in the U.S. or exported to other countries. But some products are still produced entirely in the U.S.
U.S. manufacturers source 69% of what’s known as “intermediate inputs,” — the energy, raw materials, parts and semi-finished goods — from U.S. suppliers, according to the Commerce Department. But one-third of parts are imported from other countries.
Here are the top three subsectors of manufacturing in the U.S. as of 2023, according to the National Institute of Standards and Technology of the U.S. Department of Commerce:
  1. Chemical manufacturing 
  2. Food, beverage and tobacco products
  3. Computer and electronic products
Other areas of manufacturing include:
  • Motor vehicles, bodies and trailers, and parts
  • Other transportation equipment
  • Machinery
  • Fabricated metal products 
  • Miscellaneous manufacturing 
  • Primary metals 
  • Nonmetallic mineral products
  • Electrical equipment, appliances and components 
  • Wood products
  • Furniture and related products 

How much does the U.S. import and export?

Imports are goods that one country purchases from another country, while exports are goods that one country sells to another country. The latest U.S. Bureau of Economic Analysis (BEA) data shows:
Imports in January 2026: $356.6 billion — down 0.7% from December 2025.
Exports in January 2026: $302.1 billion — up 5.55% from December 2025.

Can tariffs boost U.S. manufacturing?

Global supply chain disruptions during the coronavirus pandemic illustrated how reliant the U.S. is on other countries, especially China, to import goods, as well as parts for assembly of U.S.-manufactured products for sale to consumers. The U.S. cannot and does not produce everything it needs to meet business and consumer demands.
Since global supply chains are inherently interdependent, tariffs can make goods more expensive. Tariffs are essentially a tax on foreign countries’ imported goods. They’re used to raise revenue, protect domestic industries or as a punitive measure. In response to tariffs, foreign countries usually raise the price of goods and materials, which means higher costs get passed onto domestic producers, manufacturers and consumers.

What’s going on with tariffs?

Since entering office, President Donald Trump has announced sweeping tariffs affecting virtually all U.S. trade partners. On Feb. 20, the Supreme Court issued its long-awaited ruling on tariffs.
The upshot: Trump’s reciprocal tariffs have been struck down, injecting fresh uncertainty for consumers. Get all the details on the ruling here.
We’ll continue tracking the latest tariff news here.

How many manufacturing jobs are in the U.S.?

February 2026 manufacturing positions in the U.S.: 12.6 million
The manufacturing industry is the fifth largest employer in the U.S., according to the U.S. Census Bureau data. In 2022, there were 15.2 million workers employed in U.S. manufacturing positions — that’s nearly one in 10 (9.6%) workers among all industries.
By comparison, in November 1943 — in the midst of the World War II boom —38.8% of the workforce worked in manufacturing.
Manufacturing employment has declined from its peak in June 1979 when there were 19.5 million workers in the manufacturing industry, according to BLS data.
The early 2000s saw the biggest drop in manufacturing employment: In January 2000, some 17 million workers were employed in manufacturing positions, and that number plummeted by 34% to 11.5 million workers by March 2010 — a low not seen since 1945, following the end of the World War II manufacturing boom. Employment in the industry steadily grew over the next decade before dropping again to 11.4 million in April 2020 due to the coronavirus pandemic. Since that low in 2020, manufacturing employment has grown 12.7%.
Most manufacturing firms are small: Among 238,851 manufacturing firms, the overwhelming majority (93.4%) have fewer than 100 employees, according to an analysis of Census data by the National Association of Manufacturing. But most workers — about two-thirds — are employed by large firms. Two manufacturing subsectors dominate the industry: transportation equipment manufacturing and food manufacturing.
An April 2024 report by Deloitte and The Manufacturing Institute estimates that manufacturing could need the addition of 3.8 million workers from 2024 to 2033. It also projects that half of skilled open positions — about 1.9 million jobs — may go unfulfilled due to a “skills and applicant gap.”

Where are most U.S. manufacturing jobs?

Indiana has the highest concentration of manufacturing jobs — more than twice the national average, according to the BLS. In general, most U.S. manufacturing is done in the Midwest. More than one-quarter of all manufacturing jobs in Indiana are in transportation equipment manufacturing. The other states with manufacturing employment well above the national average are Wisconsin, Iowa and Michigan.

How manufacturing impacts GDP

Throughout 2025, manufacturing contributed less than 10% of the total U.S. GDP, according to Bureau of Economic Analysis data.

How U.S. manufacturing compares to the rest of the world

The U.S. isn’t the powerhouse it once was when it comes to manufacturing, but it’s still ranked second in the world, only to China.
Since 2000, manufacturing output has declined in the U.S., largely due to competition from China. By 2030, China is expected to dominate 45% of the world’s share of manufacturing, while the U.S. is expected to decline slightly and make up around 11% of all manufacturing, according to a 2024 analysis by the United Nations Industrial Development Organization.
(Photo by Scott Olson/Getty Images News via Getty Images)
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