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Manufacturing Matters |
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Manufacturing MattersThe Importance of Manufacturing to North CarolinaManufacturing matters to our state, to our country and to the world. Manufacturing continues to be the leading contributor to North Carolina’s Gross Domestic Product (GDP) at 19.76%, although that represents a decline of 6.5% from 1997 to 2007. Manufacturing continues to employ the most people at 16.2% of the total workforce, providing above-average-wage jobs to almost 550,000 workers. Among the states, North Carolina ranks 11th in its contribution to the US GDP. North Carolina ranks 6th in the United States in manufacturing and first in the Southeast. More than 98% of exports come from manufacturers, both in North Carolina and the rest of the country. Small manufacturers play a crucial role in the global marketplace. Of the 10,559 manufacturing companies in North Carolina, almost 80% have 50 or fewer employees. Manufacturers generally are located in the more populous areas of the state along the Interstate 40 and Interstate 85 corridors. The top three industries based on employment as of June 2005 were furniture, food manufacturing, and textiles. Food manufacturing currently contributes the highest GDP within the industrial sectors. Manufacturing is continually evolving to fulfill the growing needs of a global market.  D-Link North Carolina ranks 11th in the nation for its contribution to the national Gross Domestic Product (GDP) based on data for 2006.  D-Link North Carolina's manufacturing output places it 6th in the country by providing 4.6% of the total manufacturing contribution of the country. North Carolina leads the Southeast in manufacturing.  D-Link Manufacturing is the leading contributor to the state's GDP at 19.7% of the total. The closest sector to follow is finance and insurance at 11.1% of the GDP. Employment and WagesManufacturing continues to lead all industrial sectors in North Carolina as both a percentage of the state's GDP and as an employer. Manufacturing salaries are within the top 10 within the industrial sector. Manufacturing in the 21st century is highly efficient and productive and workers have to be educated, motivated and creative. The simple assembly line has practically disappeared. There’s nothing simple about the products and how they’re made. Only intelligent people need apply. The Manufacturing Institute, the research arm of the National Association of Manufacturers, reports a moderate to severe shortage of skilled production employees. The shortage is due, in part, to the stigma of industrial careers. But the reality is that many manufacturing jobs depend on highly skilled employees working in laboratory-like settings. Students of all ages, and their parents, need to understand the importance of engineering and manufacturing careers to our nation’s economy. Visit Manufacturing is Cool to learn more about the exciting careers available in science, engineering, manufacturing and technology.  D-Link  D-Link The weekly wages in manufacturing place it 8th among the state's industrial sectors. Manufacturing wages are higher on average than healthcare and social assistance, transportation and educational services. Location of ManufacturingManufacturers tend to locate in the more populous areas of the state along the Interstate 40 and Interstate 85 corridors. Manufacturing is generally an urban activity. In North Carolina, most manufacturers happen to be located in the most populated counties of Mecklenburg, Wake and Guilford.  D-Link Just over 2 million residents or 23.3% of the state's population reside in the top three counties of Mecklenburg, Wake and Guilford  D-Link The number of manufacturing establishments in North Carolina total 10,559. Around 2,485 establishments are within Mecklenburg, Guilford and Wake counties.  D-Link It is no surprise that the most populous counties also have the most manufacturing establishments. Combined they account for almost 24% of the total statewide manufacturing establishments, with Mecklenburg at 9.6%.  D-Link Durham county leads the state in average wages which are 61% higher than Mecklenburg. Research Triangle Park (RTP) in Durham County is a model for innovation, education, and economic development, and one of North Carolina's greatest achievements in transitioning to a high-technology economy. RTP boasts an abundance of advanced manufacturing establishments -- especially in the growing bio-science sector -- and is home to Nobel and Pulitzer prize winners as well as recipients of the U.S. Presidential Award and National Science Foundation Awards. Some 20th century innovations that were influenced by scientists and researchers working in RTP include the Universal Product Code and 3D ultrasound technology. (For more information, see www.rtp.org)  D-Link The distribution of manufacturing employees is concentrated in Guilford, Mecklenburg and Durham counties. Guilford County holds the #1 spot due to the strength of one of North Carolina’s traditional industries, the manufacturing of furniture. In Guilford county, the furniture and related products industry employs more people than any of the manufacturing subsectors. Key Manufacturing IndustriesManufacturing includes any business that produces a product. By looking at manufacturers by product categories, several patterns emerge. Food product manufacturing provides the highest contribution to state GDP while comprising only 543 establishments out of the state's total of 10,559 establishments. Food product manufacturers transform livestock and agricultural products into products for intermediate or final consumption, including grain milling, sugar and confectionery, dairy, seafood and bakery production, to name a few. It also includes beverage and tobacco product manufacturing. Comparing sub-sectors within manufacturing D-Link The food product industry contributes the most to the state manufacturing GDP at 27% of the total. Food products made or processed in North Carolina include pickles, seafood, wine and tobacco products.  D-Link  D-Link North Carolina is home to 1,401 shops that make fabricated metal products, which is 13% of total manufacturing establishments. Furniture and related products is a close second with 10.5% of total establishments.  D-Link Three of the top four industry subsectors experienced a reduction in employee size from 2005 to 2006. Manufacturers are learning to do more with less. The global market requires manufacturers to be efficient and competitive. By applying advanced technology, manufacturers may experience a reduction in manpower. Secondly, based on the N.C. Market Skills Survey conducted by the NC Department of Labor, manufacturers report an 85% shortage of technically skilled employees. As the shortage of skilled workers continues or worsens and as the baby boom generation retires, manufacturers have no choice but to cope with the shortage. North Carolina has been a furniture and textiles powerhouse for most of the 20th century. In the 21st century, food product manufacturers replace textiles as the second highest employer. More than 150,000 workers work in furniture, food products or textile plants. However, furniture and related products employ slightly more than food with a workforce of more than 52,457 or 9.5% of manufacturing employees. Importance of small manufacturers D-Link Almost half of the manufacturing establishments employ nine or fewer employees in North Carolina. The largest establishments with more than 250 employees account for less than 5% of manufacturers.  D-Link Food manufacturing, textile mills and furniture establishments employ the most people within the manufacturing sector. This graph notes the impact that small companies have on our state. More than 50% of furniture and related products companies have less than 9 employees. Manufacturing ExportsNorth Carolina exports manufactured products to countries around the globe. These products account for at least 98% of all exports. North Carolina ranks 13 in the value of its exports. Most North Carolina exports stay in the Western Hemisphere, with both Asia and Western Europe vying for the rest. Canada buys most of North Carolina’s exports by far, with Mexico and Japan trailing. The products of chemical manufacturers comprise almost 18% of the state’s exports, followed by computers and electronics.  D-Link North Carolina ranks 13th in the United States in world exports at approximately $16 billion.  D-Link  D-Link North Carolina exports a majority of its goods and services to North America with most coming from the manufacturing sector.  D-Link Of North Carolina’s total exports to Canada, 98.21% come from the manufacturing sector.  D-Link Chemical exports accounted for 17.62% of manufacturing exports as a whole, the largest single category. Chemical manufacturers transform organic and inorganic raw materials by a chemical process into products such as soaps and detergents, medicinal or botanical products, and fertilizers. Manufacturing TrendsFrom 1997 to 2006, the GDP of the United States climbed while the contribution from manufacturing remained steady. The same trend occurred in North Carolina, resulting in manufacturing declining as a percentage of the state’s GDP from 26.2% to 19.7% in that time. Industries that have demonstrated the highest growth over the last ten years are finance and insurance and real estate sales, rental and leasing. Within the manufacturing industry, it is non-durable goods such as food products and chemical manufacturing that are experiencing growth and higher contributions to GDP.  D-Link  D-Link NC GDP rose $23,825 billion or 6.4% from 2005 to 2006.  D-Link Manufactured goods are categorized as either durable (expected to last at least a year) or non-durable. Non-durable goods, which typically last for less than one year, include paper manufacturing, food product manufacturing and chemicals. Durable goods, which typically last for more than one year, include fabricated metal products, transportation equipment, furniture, computers and electronics. ConclusionAccording to the American Small Manufacturers Coalition, manufacturing provides 13.8 million good-wage jobs, 12% of GDP, $937 billion in exports (71% of U.S. total) and drives 71% of all industrial research and development performed in the United States. Small manufacturing establishments provide 6 million jobs, and are the foundation for most supply-chains. The products of manufacturers are exported around the world. They drive the economy of the United States. Manufacturers deserve our support. Students need to consider manufacturing or engineering– "making something" – as a fulfilling career choice. Manufacturing remains a vital component of North Carolina’s economy. Manufacturing provides jobs for a majority of the state’s workforce. Small and medium sized manufacturers are the cornerstone of the manufacturing sector. And manufacturing provides the products that the rest of the world wants to buy. Sources of Data
IES is the outreach function of North Carolina State University’s College of Engineering. We help new businesses grow and good businesses get better. We work with industries from the coast to the mountains, from 1,000 feet underground to 30,000 feet up, and we deliver results in quality, productivity, safety, environmental protection, energy management, and top-line growth. In 2007, working with IES typically offered a return on investment of $15 for every dollar spent by our client companies. IES is part of the Manufacturing Extension Partnership (MEP), a nationwide program that is part of the National Institute of Standards and Technology (NIST). With a network of MEP centers in every state and Puerto Rico, the program's purpose is to provide small and medium-sized manufacturers with the tools they need to succeed. In an independent survey conducted quarterly by MEP, clients reported that IES services have been worth more than $500 million in the first five years of the 21st century. By the end of 2010, IES strives to generate $1 billion in wealth for the state in a campaign called 1B4NC. If you have any suggestion, corrections, or need any assistance accessing the information on our site, please contact ies_services@ncsu.edu. Commercial or private sites linked from this page are intended only to supply information. No endorsement of products or firms is intended, nor is criticism implied of those not included.
Physical Address:
909 Capability Drive Suite 1600 Research IV Raleigh, NC 27606 Mailing Address: Campus Box 7902 Raleigh, NC 27695-7902 1-800-227-0264 |
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