The Importance of U.S. Manufacturing

21. Manufacturing Pays Higher Average Compensation

Today’s manufacturing employees, on average, earn higher wages and receive more generous benefits than other working Americans. In the fourth quarter of 2013, manufacturing employers paid $33.93 per hour in wages and benefits, while all employers in the economy paid $31.15 per hour, an 8.9 percent premium.
Most of the difference in average compensation is due to the fact that manufacturers employ more highly skilled workers, it is also true that the manufacturers provide a higher level of benefits for workers than do other industries, including for paid leave, supplemental pay, and insurance. Although manufacturers are making workers more responsible for their own healthcare costs (as seen in other industries), employer-provided healthcare payments continue to grow faster than wages and salaries. Healthcare contributions by manufacturing employers increased 43 percent from 9 years ago but only had a 24 percent gain in wage and salary costs per hour over the same time period. Employer-provided healthcare is necessary to attract a talented workforce but the United States’ unique employer based insurance system imposes a significant disadvantage to manufacturing industries that have to compete internationally with countries where healthcare is paid for by general tax revenues.

To Employment and Compensation


Manufacturing Job Gains Are Largest in the Northwest and Midwest Percentage Change in Manufacturing Employment by State, Dec. 2009-Oct.2013


A Wide Range of Occupations Contribute to U.S. Manufacturing Production


Both Professional and Semi-Skilled Employees Staff the Non-Production Side of U.S. Manufacturing


Manufacturing Supports Millions of U.S. Jobs in Other Sectors


Manufacturing Pays Higher Average Compensation


Manufacturing Is a Leader in Offering Healthcare Benefits


Manufacturers Support Healthcare Insurance for Workers and Families


Trade Engagement Pays Through Higher Wages