Much has been made in the 2016 presidential election campaign of the decline in manufacturing and the resultant loss of jobs in the US economy. It was Donald Trump who shouted the loudest about this and his message resonated with in the key swing states, such as Ohio, Michigan and Pennsylvania. Given that these areas are also known as the “rustbelt” would seem to suggest that Donald Trump was speaking to a very receptive audience.
At the same time, the value of the US economy, as measured by Gross Domestic Product (GDP), Â has been growing solidly since the financial crisis in the late noughties, and millions of new jobs created.
This article sets out to put the performance of the manufacturing economy since 1997 in context.
The manufacturing economy by region
Using GDP data provided by the Bureau of Economic Analysis (BEA) the ratio of GDP for private goods-producing industries by Region has been calculated and set out in the following table.
| Region | 2015 | 1997 | +/-% |
|---|---|---|---|
| Far West | 17.5% | 20.7% | -15.5% |
| Great Lakes | 23.6% | 28.1% | -16.0% |
| Mideast | 11.5% | 15.5% | -25.8% |
| New England | 13.9% | 19.6% | -29.1% |
| Plains | 22.6% | 25.1% | -10.0% |
| Rocky Mountain | 20.4% | 21.5% | -5.1% |
| Southeast | 19% | 24.4% | -22.1% |
| Southwest | 27.2% | 27.5% | -1.1% |
| USA | 19% | 22.6% | -15.9% |
The table provides some interesting observations.
- Nationally manufacturing accounted for 19% of GDP in 2015, down from 22.6% in 1997;
- Manufacturing as a ratio has fallen in every region since 1997. The largest fall has been a 29.1% decline in New England, followed by 25.8% in Mideast and 22.1% in Southeast;
- The Great Lakes economy was most dependent on manufacturing in 1997 as it accounted for 28.1% of it. By 2015 this has fallen to 23.6%;
- By 2015 manufacturing is most important to the Southwest economy, accounting for 27.2%, compared to 27.5%, a decline of only 1.1%.
- Â Manufacturing in the Mideast region is the least important in terms of GDP value, falling to 11.5% in 2015.
Far West Region
To see the same information for each Far West state, click here.
Great Lakes Region
To see the same information for each Great Lakes state, click here.
Mideast Region
To see the same information for each Mideast state, click here.
 New England
To see the same information for each New England state, click here.
Plains
To see the same information for each Plains state, click here.
Rocky Mountain
To see the same information for each Rocky Mountain state, click here.
Southeast Region
To see the same information for each Southeast state, click here.
Southwest Region
To see the same information for each Southwest state, click here.
