Manufacturing in the U.S. isn’t declining. In fact, total manufacturing output has increased by thirty percent over the past twenty years.
Figures from the Federal Reserve in St. Louis show that, even in the so-called “Rust Belt” (Illinois, Indiana, Michigan, Missouri, New York, Ohio, Pennsylvania, West Virginia, and Wisconsin), manufacturing output has increased by 14 percent over the last twenty years. In the south, output has increased 25 percent over the same period, while output has increased by 114 percent in Arizona, 78 percent in California, 70 percent in Oregon, and 39 percent in Colorado.
So why does everyone think the U.S. is manufacturing less?
The simple answer is that there are fewer jobs in manufacturing. Employment in manufacturing has dropped from roughly 16 million jobs in 2005 to 13 million at the end of 2024. At the same time, the hourly wage rate for manufacturing production workers has increased by 75%, but the cost of living has increased “officially” by 64% (I say “officially” because the official figures understate real inflation felt by most people).
At the same time, U.S. population rose from 296 million in 2005 to 347 million in 2025. So while the U.S. population increased by 51 million people, the number of manufacturing jobs dropped by 3 million. Put another way, one in eighteen Americans worked in manufacturing in 2005, but in 2025 only one in twenty-seven did.
All this translates into the facts that there are fewer manufacturing jobs, which on average pay in real terms about the same as they did twenty years ago. So those working in manufacturing, on average, haven’t seen significant improvement in real wages, and there are fewer jobs, largely because of greater technology and more automation. In addition, an increasing percentage of those jobs are requiring greater and greater skills.
This also suggests that increasing manufacturing in the United States won’t significantly increase the number of jobs being created, no matter what Trump and the Republicans claim.