Manufacturers need to work collaboratively together to advance the causes and politics that are mutually beneficial. It is through our numbers that we can have the greatest effect and we have significant numbers to discuss. In Riverside County we have thousands of manufacturers, yet it is not readily apparent. Manufacturers work around the clock employing a broad range of people and are churning out goods that are essential to the economy. They hire unskilled to highly skilled workers and utilize many additional services to run their operations. The workforce is generally more stable since the manufacturers want to maintain a continuous output that allows a return on investment. We may wonder who all these manufacturers are and for good reason.
The manufactures in our county run clean high technology business, a far cry from the stereotypes of the past. The range of goods produced in Riverside County is astounding, from advanced medical equipment to military hardware, it is made here in world class facilities, successfully competing against foreign competition and advancing the state of the art. Many of these businesses also export their products worldwide, bringing in foreign funds and creating additional employment.
It helps to understand these businesses by first reviewing the broad description of manufacturing: “The Manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing”. While this government description may be very broad it is intended to separate manufacturing from the service industry. Certainly all manufacturers perform some services; however service providers rarely perform manufacturing operations.
The following bullet points illustrate the true strength of the manufacturing sector in the United States. This is a growing sector of the economy and the opportunity exists for manufacturing to continue this expansion.
• In 2012, manufacturers contributed $1.87 trillion to the economy, up from $1.73 trillion in 2011. This was 11.9 percent of GDP. For every $1.00 spent in manufacturing, another $1.48 is added to the economy, the highest multiplier effect of any economic sector.
• Manufacturing supports an estimated 17.2 million jobs in the United States—about one in six private-sector jobs. Nearly 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing.
• In 2011, the average manufacturing worker in the United States earned $77,060 annually, including pay and benefits. The average worker in all industries earned $60,168.
• Manufacturers in the United States are the most productive in the world, far surpassing the worker productivity of any other major manufacturing economy, leading to higher wages and living standards.
• Manufacturers in the United States perform two-thirds of all private-sector R&D in the nation, driving more innovation than any other sector.
• Taken alone, manufacturing in the United States would be the 10th largest economy in the world.
The strength of manufacturing will never be realized unless they work together. There are local, state wide and national organizations that can be the vehicle for this organizational effort. Working together in a group allows the transfer of ideas, cooperation to promote important political goals and education about current events that impact everyone. The local manufacturing groups also tour facilities to further promote and spark ideas as seen in these operations.
I have toured many manufacturing facilities over the years, from the Boeing satellite facility in El Segundo to the Watson pharmaceutical plant in Corona and I always learn something that I can utilize in my own factory or can explain to another manufacturer to help them in their operations. I highly encourage all manufacturers to join groups at the local, state and national levels to develop the “Strength in Numbers” that this group truly deserves.
Roy Paulson is President of Paulson Manufacturing Corporation. www.paulsonmfg.com