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Why maufacturing matters

Manufacturing in the U.S.

Manufacturing in the region

The future of manufacturing

Conclusions

About this report

Partners

Why manufacturing matters

Download:
2012 Manufacturing Sector | (5.9MB pdf)

This report from the Value of Jobs Coalition examines the positive impact a healthy manufacturing sector has on wages and benefits for Portland-metro workers and their families.

Like previous research, the goal of this report is to inform policy-makers and the public about our region’s economic challenges and point out opportunities where we can improve our quality of life through private-sector job creation and retention and better wages.

Our coalition’s previous studies highlighted the important role of international trade and traded-sector industries in helping to grow private-sector jobs and increase wages. Previous studies also showed how increasing wages and job growth translate into a healthier public sector with better schools, livable neighborhoods and greater social equity.

This study looks at one critical part of the traded-sector economy — manufacturing. Although traded-sector services are of growing importance, the production of traded-sector goods (i.e., manufacturing) is still the backbone of Portland-metro’s traded-sector employment. This report shows that a strong manufacturing sector translates into higher incomes and significantly better health and retirement benefits for Portland-metro workers in manufacturing careers.

BY THE NUMBERS:

1.

Rank of Oregon as a manufacturing location by the American Institute for Economic Research in 2011.

17.

Rank of Portland-metro in percentage of jobs in manufacturing.

33.5.

Percentage of Portland-metro manufacturing specialized in high-tech sector – twice the U.S. average.

32,600,000,000.

Value in dollars of Portland-metro’s manufacturing sector output in 2010.

55.

Number of employees in average Portland-metro manufacturing plant.

8.

Percentage by which manufacturing wages and salaries exceed those of non-manufacturing jobs.

49.

Percentage more in wages a non-white manufacturing worker earns compared to a non-white, non-manufacturing worker.

59.

Percentage by which manufacturing benefits exceed those of non-manufacturing jobs.

Key findings include:

Portland-metro has retained a larger manufacturing base (as a percent of total employment) than the average U.S. metro area;
Manufacturing careers provide higher wages and better benefits than non-manufacturing jobs, particularly for non-whites and non- English-speaking workers;
A strong manufacturing base can help a region’s economy grow through research and innovation;
Portland-metro is a national leader in specialized areas of manufacturing such as high-tech electronics and specialty metal fabrication; and
Portland-metro excels in the efficient production of manufactured goods, especially high-tech electronics, ranking 25th in the nation in manufacturing productivity per capita in 2010.

Our region’s strength in manufacturing demonstrates the need for action to address the challenges hampering growth in this sector. Our coalition’s study on industrial lands shows that the region lacks a supply of readily developable sites for new industrial growth. We know that Oregon’s high capital gains tax also presents a hurdle for some manufacturing investment. And there are ongoing challenges in matching the skills needed for manufacturing careers with our K-12 education system.

Our goal is for this study to catalyze a constructive dialogue among policy-makers, business leaders and other community stakeholders about how our region can help attract, retain and grow manufacturing careers. If we are successful, we will build a stronger and more diverse economy and provide opportunity for middle-class and family-wage careers for a greater share of the region’s residents.