U.S. manufacturing industry would rank 10th in top economies

If the U.S. manufacturing industry were an independent country, it would rank 10th highest in GDP among all economies worldwide, according to a new report from the Bureau of Economic Analysis. The output of the American manufacturing sector puts it at just slightly below the GDP of the Italian economy and ahead of the entire national outputs of both India and Canada. Durable goods manufacturing was one of the leading contributors to U.S. economic development in 2012. The economic significance of the industry underscores the importance of finding top candidates to continue fueling progress through manufacturing recruiters.

Total U.S. manufacturing output reached $1.866 trillion in 2012, which was the record high for dollar manufacturing in a single year. The previous record was set in 2011 at $1.73 trillion, Seeking Alpha reported. Output in 2012 was only slightly lower than pre-recession levels in 2007. The record breaking levels in the past two years show the manufacturing industry has recovered and will continue to remain significant. 

Manufacturing real value added, a measure of an industry's contribution to GDP, increased by 6.2 percent in 2012 after rising 2.5 percent in 2011. Durable goods production was the largest contributor to the U.S. economy for the third year in a row. Manufacturing experienced the largest growth of any other industry with durable goods adding 9.1 percent to overall GDP growth.

Economic recovery improving manufacturing growth
GDP is the greatest indicator of the economy's health, Bloomberg Businessweek stated. The GDP gain for all of 2012 was 2.2 percent. In the first quarter of 2013, growth increased by 2.5 percent despite concerns that momentum was stagnating. The first three months of 2013 saw the highest consumer spending in more than two years, a sign that consumer confidence is returning. The housing industry has also experienced a large rebound, which could be boosting demand for durable goods such as household appliances. The increase in consumer demand is fueling the growth of the manufacturing industry. In addition, the rise in auto sales in particular has given manufacturing a boost. 

These latest statistics demonstrate the manufacturing industry's contribution to economic development and recovery is significant. The sector has experienced a rise as consumer confidence has returned, and the sector will likely continue to add jobs as it grows. Firms looking to hire new staff members may want to consult a manufacturing recruiter.