The equipment manufacturing industry supported almost 1.3 million jobs in the United States in 2016, according to a new report released Thursday at a press conference at CONEXPO-CON/AGG by the Association of Equipment Manufacturers (AEM).
The report, which was produced by the leading economic research firm IHS Markit, found that equipment manufacturers added $159 billion to the Gross Domestic Product (GDP) of the United States last year.
The report came as major segments of the equipment manufacturing industry met at CONEXPO-CON/AGG in Las Vegas, and as national elected leaders place a renewed emphasis on manufacturing jobs and infrastructure investment.
The research project offers the best snapshot of the equipment manufacturing industry’s reach in several years.
The report found that equipment manufacturers in the United States supported over $416 billion in sales activity in 2016, generated about $87 billion in labor income (amounting to about $78,000 in wages per equipment manufacturing industry job), and contributed over $25 billion in local, state and federal taxes.
Texas leads the country in equipment manufacturing employment and output, the report found, followed by Illinois, Wisconsin, Ohio and Iowa.
The research also examined the equipment manufacturing industry’s impact in Canada. Equipment manufacturers in Canada supported some 149,000 jobs last year, and generated some $15 billion (USD) for the Canadian economy in 2015.
“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.”
IHS Markit additionally examined the equipment manufacturing industry’s impact over the construction, agriculture and energy (including oil and gas and mineral exploration) equipment segments. IHS Markit found that construction equipment manufacturers make up about 38 percent of the industry and directly support 163,000 jobs; farm equipment manufacturers represent 27 percent of the industry and directly employ about 114,000 people; and energy equipment manufacturers account for about 35 percent of the industry and directly support 148,000 jobs.
The research examines the direct impact of equipment manufacturers on the economy, as well as indirect effects at suppliers, service providers or other ancillary businesses related to the industry. The report also accounts for the induced effects of the industry (i.e., the additional effects on employment and income in communities).
The report adds additional detail about some of the key variables that support each industry segment, and forecasts growth for the industry into 2018 and beyond.
Click here to access the full report.