​S manufacturing may be poised for an overhaul and a rebound, with a potentially significant impact on the nation’s overall economy. In the United States, manufacturing accounts for $2.3 trillion in GDP, employs 12 million people, and supports hundreds of local economies. Although that represents just 11 percent of US GDP and 8 percent of direct employment, the sector makes a disproportionate economic contribution, including 20 percent of the nation’s capital investment, 35 percent of productivity growth, 60 percent of exports, and 70 percent of business R&D spending

LOS ANGELES--(BUSINESS WIRE)--Despite California’s famously high cost of living, the state remains the largest contributor to the U.S. manufacturing industry in terms of both employment and output. A comprehensive new analysis examines the manufacturing industry in California and reveals some surprising findings that contradict the popular perception that the industry and its workers have been priced out of the state.

​The report, produced by Beacon Economics LLC and commissioned by California Manufacturing Technology Consulting (CMTC), found that the state’s manufacturing output has exceeded the national rate by 83% since the late 1990s. And contrary to widespread belief, California’s share of manufacturing jobs in the United States has ticked up slightly since 2000, currently standing at 11%.

Despite supply headwinds, labor shortages, and an uncertain economic environment, the manufacturing industry continues to surpass the expectations of previous years. To maintain this growth, leaders should leverage digital technologies, adopt strategies for the future of work, and drive supply chain resiliency. Our 2023 outlook explores five manufacturing industry trends that can help organizations turn risks into advantages and capture growth.

Manufacturing has demonstrated continued strength in 2022, building on the momentum it gained emerging from the pandemic, and surpassing expectations from the prior two years. While overall demand and production capacity have hit recent highs, there are indications that the near-term outlook may not be as bright.

The industry is currently experiencing concerns related to inflation and economic uncertainty. In addition, manufacturers continue to grapple with talent challenges that may limit the industry’s growth momentum. Moreover, supply chain issues including sourcing bottlenecks, global logistics backlogs, cost pressures, and cyberattacks will likely remain critical challenges in 2023. As leaders look beyond leading amid disruption and revamp their approach, our 2023 manufacturing industry outlook examines five important trends to consider for manufacturing playbooks in the year ahead.

Source: Deloitte