Value added in U.S. manufacturing production grew 5.8% year-over-year in 2023, to $2.8 trillion.

This value consists of this industry’s contribution to Gross Domestic Product (GDP). 

Manufacturing value added as a percentage of GDP was 10.1% in the first quarter of 2024.

U.S. industry

To note: An industry’s value added is calculated as the difference between its gross output and its intermediate inputs. First, what is gross output? It includes sales or revenues, other operating income, commodity taxes, and inventory changes.

Now, what are intermediate inputs? These comprise energy, raw materials, semi-finished goods and services purchased from both domestic and foreign industries.

In simple terms, value added is obtained by subtracting intermediate inputs from gross output.

Value-added in U.S.

The three main components of value added are described below:

• Return to domestic labor: This refers to compensation of employees.
• Net return to government: This includes taxes on production and imports, net of subsidies.
• Finally, return to domestic capital: This is known as the gross operating surplus.

This is the trend in value added in U.S. manufacturing output, in billions of dollars, according to Commerce Department data:

• 2018: 2,262.
• 2019: 2,268.
• 2020: 2,148.
• 2021: 2,366.
• 2022: 2,650.
• 2023: 2,805.

Competitiveness

In the World Competitiveness Ranking 2024, prepared by the Swiss-based Institute for Management Development (IMD), the United States obtained the following positions in the business efficiency pillar: 

• Efficiency and productivity: 12.
• Labor market: 28th.
• Finance: 1.
• Management practices: 24.
• Attitudes and values: 29.

In 2023, the GDP of the United States was 27 trillion 348,000 million dollars, placing it in the first position in the world.

With respect to its GDP at Purchasing Power Parity, this was 81,632 dollars, which places it in seventh place globally.

The trend in U.S. manufacturing production, in billions of dollars, is shown below:

• 2018: 6,043.
• 2019: 5,934.
• 2020: 5,411.
• 2021: 6,299.
• 2022: 7,192.
• 2023: 7,236.