Manufacturing Day: celebrating a positive outlook in foodservice E&S
Since 2012, Manufacturing Day has been a celebration of the massive and positive impacts this sector has had on the U.S. NAFEM celebrates Manufacturing Day – to not only raise awareness of the industry, but to inspire future generations of workers from all skill levels and backgrounds.
In honor of Manufacturing Day on Oct. 5, we’re looking at some of the highlights of manufacturing in the U.S. and among NAFEM members – as well as what the future of manufacturing holds.
Moving the U.S. forward
The positive impacts of a healthy manufacturing sector can be felt rippling throughout the United States’ economy. For every $1 spent in manufacturing, another $1.89 is added to the economy. Not only that, but a quick breakdown of the economic firepower provided by the U.S. manufacturing sector shows that manufacturing drives:
- 12 percent of U.S. GDP
- 35 percent of productivity growth
- 60 percent of exports
- 70 percent of private-sector R&D
Foodservice E&S growth: small is mighty
Sales forecasts have been promising for the foodservice E&S industry throughout 2018. Refrigeration and ice machines are expected to net over $3 billion in sales by the end of the year; primary cooking equipment $2.45 billion, and serving equipment $1.5 billion.
What’s more, a vast majority of firms in the manufacturing sector overall – as well as a majority of NAFEM member organizations – are considered “small” (i.e., having fewer than 500 employees). While it might seem like major manufacturing players have the upper hand – big investments, big workforces, big budgets and big publicity – the industry outlook tells a different story.
According to the Deloitte University Press, while large manufacturers will always dominate some segments of the value chain, small-scale local manufacturing firms have agility on their side, giving them room to take advantage of new opportunities quickly. In other words, small manufacturers have big potential in today’s manufacturing landscape.
A dynamic industry
In the U.S., manufacturing is responsible for 70 percent of money spent on R&D in the private sector. That’s a lot of innovation!
And the exciting part? The industry is growing. Manufacturing has added 159,000 jobs so far in 2018, with the average manufacturing worker earning about $27 per hour. Not only that, but exports support higher-paying jobs for an increasingly educated and diverse workforce. Plus, 91 percent of NAFEM member organizations report that their employees would rate their organizations as either excellent or good places to work, according to our 2018 business planning study.
Regions with the strongest manufacturing presence
Manufacturing in the U.S. continues to pick up steam in both job creation and capital generation, and is still considered the primary sector in over 500 counties across the United States, according to a report from McKinsey.
A changing, yet optimistic outlook
While the landscape may be changing, the premise of Manufacturing Day is simple: to open the eyes of those inside and outside the sector to the positive impacts manufacturing has on the country’s economic and employment health. Not to mention the astounding innovations that have emerged in recent years!
Thanks to the momentum provided by technology and increased demands globally, today’s experts project a cautiously optimistic outlook for the state of manufacturing. One McKinsey study paints a picture of a future with bright possibilities for the manufacturing sector, predicting that the U.S. could boost annual manufacturing value added by up to $530 billion (20 percent) by 2025.
Manufacturers themselves are feeling optimistic as well. Ninety-five percent of manufacturers as a whole reported a positive outlook for 2018 and beyond, and 89 percent of NAFEM member organizations expect profitability to increase within the next fiscal year, according to our 2018 member survey.
NAFEM and its members look forward to continuing to support the economic, technological and creative qualities unique to the space of manufacturing.