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Manufacturing Sector
First Research, March 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US manufacturing sector consists of about 290,000 establishments (single-location companies and units of multi-location companies) with combined annual sales of about $5 trillion. Major companies include Boeing, Caterpillar, DuPont, Ford, GE, GM, Hewlett-Packard, IBM, Procter & Gamble, Pfizer, and Tyson Foods. The manufacturing sector is fragmented: the largest 50 companies account for less than half of overall sales.
The global manufacturing industry generates more than $10 trillion in annual revenue. Top manufacturing countries include the US, Japan, China, Germany, Italy, and the UK. Leading exporting countries include China, the US, Germany, Japan, and France. Major companies include: Toyota Motor (Japan), GE (US), Siemens (Germany), Nestlé (Switzerland), and Sanofi (France).
COMPETITIVE LANDSCAPE
Demand ultimately depends on consumer spending. The profitability of individual companies depends on efficient production and distribution. Large companies often have large economies of scale in purchasing, production, and marketing. Small companies can compete effectively by producing specialized products. The sector is capital-intensive: average annual revenue per employee is about $350,000.
Computer systems and controls have steadily increased the labor productivity of US manufacturers in the last 10 years. Even so, US labor costs remain high, and many manufacturers have moved production operations to lower-cost countries like China.
Many US exports are goods with high technology content: motor vehicles and parts, semiconductors, computers, drugs, agricultural and construction equipment. Leading export markets include Canada, Mexico, and China. A large portion of exports are components shipped to Canadian and Mexican...
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