- Ethyl alcohol manufacturing – The US has become a massive consumer of ethanol, which is based on federal regulations aimed at domestic fuel consumption. The industry currently employs about 11,000 workers and grew by 227% in 10 years. No other industry comes close in terms of percentage growth. This is a great illustration of how government intervention can actually “create jobs.” But here is a caveat — increased regulation has resulted in rising gas and corn prices, which likely cancel out economic gains from employment growth. Also note, regulations tend to influence economic behavior far more than stimulus spending (contrast demand for ethanol with the Solyndra example).
- Plastic packaging manufacturing – This sector grew by 143% over the last 10 years. It is a fairly small sector with only 233 establishments and 14,300 employees. This sector is related to the food industry at large (packaging for foods); all told, 40% of the top 50 industries are food related.
- Military armored vehicle, tank, and tank component manufacturing – This sector grew by 84%, and much like ethyl alcohol, can be explained as a result of government activity. There are only 80 establishments that produce under this category, but they added about 5,000 workers. Also, just over 20% of the companies on the list are related to aerospace and defense.
- Wineries – Wineries gained some 22,000 jobs and grew by 82% in the last 10 years. Since 2008, during a down economy, wineries’ growth slowed to 4.1%. One would imagine that the demand for something like wine would actually decrease as the economy tanks. About 50,000 people work at wineries. Data from the federal government indicates about 2,700 establishments, but wine-related publications report that there are currently about 5,000-6,000 domestic wineries. Our establishment figures are from QCEW, so they don’t include small nonemployer/proprietor operations. Also, wine industry publications include something called “virtual wineries” which don’t actually own facilities or equipment, so that helps explain the discrepancy too. Overall in the U.S. wineries are still expanding in almost all 50 states, wine consumption is increasing, and global demand for U.S. wines remains healthy.
- Machine shops, which has the highest level of employment for our top 50 and 21,000 establishments, grew by 2% and added about 6,400 jobs.
- Manufacturing related to health care is doing well – For instance surgical and medical instrument manufacturing grew by 12% or 13,000 jobs; in-vitro diagnostic substance manufacturing grew by 55% or 7,400 jobs, and electromedical and electrotherapeutic apparatus manufacturing grew by 8,000 jobs or 15%. Not really any surprises here.
- Digital printing (nearly 50% growth and 10,000 jobs) and sign manufacturing (nearly 7,000 jobs and 7% growth) really surprised us. We are wondering if all those signs are related to all the road construction that came from ARRA spending.
- Cut stone and stone product manufacturing grew by 17% or 3,700 jobs, which appears to be the only industry on the list directly related to construction.
- Women’s and girls’ cut and sew blouse and shirt manufacturing grew by 47% or 3,600 jobs, which seems impressive given the downfall of textiles. Interestingly, the cut & sew apparel mfg. industry growth is almost entirely in Los Angeles. The industry was declining nationally until 2007 when it took a sharp turn upward. Due to the small number of big employers involved, it could be (we would have to research it a bit more) an instance where one company like American Apparel decides to change its NAICS, leading to a drop in one industry code and rise in another, closely related industry code. Either way, American Apparel’s success is a small counter-current in the overall implosion of the US textile industry.
|NAICS Code||Description||2001 Jobs||2011 Jobs||Change||% Change||2011 Earnings||2010 Establishments|
|325193||Ethyl Alcohol Manufacturing||3,272||10,695||7,423||227%||$87,647||276|
|326112||Plastics Packaging Film and Sheet (including Laminated) Manufacturing||5,879||14,296||8,417||143%||$66,570||233|
|336992||Military Armored Vehicle, Tank, and Tank Component Manufacturing||5,501||10,134||4,633||84%||$93,322||81|
|332995||Other Ordnance and Accessories Manufacturing||3,711||6,219||2,508||68%||$84,804||103|
|311991||Perishable Prepared Food Manufacturing||24,584||38,988||14,404||59%||$37,677||927|
|332992||Small Arms Ammunition Manufacturing||7,367||11,467||4,100||56%||$61,053||104|
|325413||In-Vitro Diagnostic Substance Manufacturing||13,444||20,809||7,365||55%||$109,505||352|
|315232||Women’s and Girls’ Cut and Sew Blouse and Shirt Manufacturing||7,768||11,421||3,653||47%||$41,919||188|
|327992||Ground or Treated Mineral and Earth Manufacturing||4,791||6,793||2,002||42%||$87,941||164|
|333132||Oil and Gas Field Machinery and Equipment Manufacturing||48,327||66,550||18,223||38%||$96,439||1,211|
|311942||Spice and Extract Manufacturing||16,126||21,842||5,716||35%||$74,973||494|
|337212||Custom Architectural Woodwork and Millwork Manufacturing||15,116||20,218||5,102||34%||$55,843||1,214|
|311221||Wet Corn Milling||9,185||12,077||2,892||31%||$96,261||72|
|311920||Coffee and Tea Manufacturing||13,409||17,468||4,059||30%||$60,660||528|
|331528||Other Nonferrous Foundries (except Die-Casting)||6,333||8,249||1,916||30%||$76,921||137|
|333611||Turbine and Turbine Generator Set Units Manufacturing||22,746||29,445||6,699||29%||$99,042||341|
|326111||Plastics Bag and Pouch Manufacturing||28,216||34,030||5,814||21%||$59,330||462|
|311813||Frozen Cakes, Pies, and Other Pastries Manufacturing||9,478||11,281||1,803||19%||$46,083||216|
|311512||Creamery Butter Manufacturing||1,895||2,254||359||19%||$62,663||43|
|311911||Roasted Nuts and Peanut Butter Manufacturing||11,559||13,578||2,019||17%||$50,479||233|
|327991||Cut Stone and Stone Product Manufacturing||21,893||25,610||3,717||17%||$47,851||2,231|
|332994||Small Arms Manufacturing||9,819||11,431||1,612||16%||$65,130||278|
|334510||Electromedical and Electrotherapeutic Apparatus Manufacturing||54,336||62,432||8,096||15%||$106,602||1,054|
|331492||Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)||9,702||11,147||1,445||15%||$81,555||257|
|325414||Biological Product (except Diagnostic) Manufacturing||24,194||27,791||3,597||15%||$116,275||400|
|332420||Metal Tank (Heavy Gauge) Manufacturing||26,163||29,953||3,790||14%||$64,543||828|
|339112||Surgical and Medical Instrument Manufacturing||107,547||120,421||12,874||12%||$101,211||1,830|
|334517||Irradiation Apparatus Manufacturing||11,708||13,069||1,361||12%||$111,532||326|
|336611||Ship Building and Repairing||92,336||101,195||8,859||10%||$75,497||778|
|336415||Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing||12,087||13,224||1,137||9%||$112,097||71|
|311111||Dog and Cat Food Manufacturing||19,625||21,010||1,385||7%||$72,642||378|
|332410||Power Boiler and Heat Exchanger Manufacturing||21,950||23,450||1,500||7%||$78,614||357|
|311225||Fats and Oils Refining and Blending||6,036||6,306||270||4%||$63,673||138|
|311941||Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing||13,745||14,250||505||4%||$58,071||308|
|311412||Frozen Specialty Food Manufacturing||56,146||57,934||1,788||3%||$47,479||590|
|336414||Guided Missile and Space Vehicle Manufacturing||53,367||55,036||1,669||3%||$136,988||209|
|311612||Meat Processed from Carcasses||110,138||112,430||2,292||2%||$48,604||1,568|
|336413||Other Aircraft Parts and Auxiliary Equipment Manufacturing||99,164||100,548||1,384||1%||$83,588||1,563|
|334511||Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing||149,042||150,862||1,820||1%||$118,095||1,217|
|311822||Flour Mixes and Dough Manufacturing from Purchased Flour||15,495||15,642||147||1%||$56,193||290|
|Source: EMSI Complete Employment – 2011.3|
For fun we have included a more in-depth look at two of the top industries: ethyl alcohol manufacturing and wineries. Images and data come from Analyst.ETHYL ALCOHOL MANUFACTURING
Here is a look at the occupations that staff the sector. Chemical plant and systems operators compose 14% of the workforce.In this chart you can see the very rapid growth that the ethyl alcohol manufacturing sector has experienced. Note: the dotted line after 2011 indicates projected growth given current industry trends.WINERIESHere is a quick look at the staffing pattern for wineries. Eleven percent of the workers in wineries are working as packaging and filling machine operators and tenders.Finally, here is the trend line. Again, the projected line is based on historic trends and should not be thought of as a “forecast.”CONCLUSION
Manufacturing in the U.S. still remains in flux. Most sectors are still shedding jobs, and there is a lot of discussion about how to turn domestic manufacturing around. In subsequent posts we will be bringing the concept of exports into the equation. Stay tuned.If you would like to look at other sectors, please contact us.Post by Rob Sentz. Illustration by Mark Beauchamp.