Equipment manufacturing supported 1.3 million jobs and contributed US$159 billion to Gross Domestic Product (GDP) in the United States last year, according to a new report from the Association of Equipment Manufacturers (AEM).
The research firm IHS Markit helped prepare the findings, which were released by the AEM this week at the ConExpo in Las Vegas.
Detailing the size and reach of the three major sectors of the equipment manufacturing industry (construction, agriculture and energy), the report found that between the USA and Canada in 2016, 1.4 million jobs were supported through direct, indirect and induced employment effects.
Additionally, the industry provided over US$416 billion in sales activity in the USA alone, generating over US$25 billion in local, state and federal tax revenue and almost $87 billion of total labor income.
The top four most significant states for the industry were Texas, Illinois, Wisconsin and Ohio.
Of the 424,000 US employees directly involved with firms engaged in the production of off-highway equipment, 163,000 jobs were tied to the construction industry, 114,000 jobs were in agriculture, and the remaining 148,000 jobs were associated with the mining industry.
“AEM is proud to represent the men and women of the equipment manufacturing industry across our country. This new report helps to put into context the many great contributions of our industry,” said AEM President Dennis Slater. “Our industry is a core part of America’s manufacturing economy, and we are eager to continue to grow, and, hopefully with a significant investment in our infrastructure, help put millions of Americans to work,” he added.
The full report includes details on the key economic indicators affecting the equipment manufacturing industry, as well as forecasting the coming years.
It states: “The multitude of sectors that depend on equipment means there are more requirements than ever that shape demand for types of machinery and affect how manufacturers in response adjust production and innovate new technology to meet the economy’s needs. As a result, the equipment manufacturing industry has most recently undergone significant transition.
“The industry’s overall performance in recent years has struggled owing to declining commodity prices (for agriculture, oil, gas, and minerals), inconsistent government support for infrastructure investment, and declining exports attributable in part to the US dollar’s strength during a time of relatively weak economic performance in key export markets. There are, however, good reasons for a positive outlook across this important industry whose mission-critical goods account for about 1% of total US GDP yet enable so much more economic activity in the way of new construction, crop production and energy and mineral extraction.”
