In celebration of National Manufacturing Day, Warren Averett has assembled the top three reasons why we believe the manufacturing industry is a key player in the world as we know it today, and for the possibilities of tomorrow.
1. Manufacturing is fuel for economic activity.
The manufacturing industry is a crucial facet of the American economy. According to the National Association of Manufacturers (NAM), the industry adds $1.89 to the economy for every $1.00 spent in the industry, and the manufacturing industry accounted for 11.6 percent of GDP last year alone. This not only means that the industry is a major force for our nation, but it makes an impact on individuals through employment too, which is also a central economic factor. The NAM also notes that the manufacturing industry employs 8.6 percent of our nation’s workforce, and statistics show that these workers have a larger average income than those who are employed by other industries. This means that the manufacturing industry not only drives economic growth through its daily processes and production, but it also stimulates growth through its people.
2. Manufacturing enables and equips other industries in their own services and functions.
The essence of manufacturing is activity that produces items that are essential to the processes and products that other industries rely upon to conduct their own activities. The manufacturing industry creates a sustainable basis for roadways, waterways and other fundamental necessities of everyday life and business. According to the Roosevelt Institute, “Retail and wholesale, which make up about 11 percent of the economy, are the act of buying and selling manufactured goods. The same goes for real estate, another 13 percent, which is the act of buying and selling a ‘real’ or physical asset, a building. Even health, which makes up about 8 percent of the economy, is the act of using medical equipment and drugs.” Manufacturing truly touches every industry, and its reach is broad enough that nearly every facet of our world can be traced back to the industry in some way.
3. Manufacturing lends itself to opportunities for technological advancements and innovation.
The manufacturing industry has changed significantly throughout history; this means that the technologies developed in and for this industry have had an impact on every industry, whether directly or indirectly. With every new invention and increase in productivity, the industry has come leaps and bounds in its operations. From the moving assembly line to 3-D printing, it’s clear that the manufacturing industry serves as a catalyst for new inventions and advancements. This is an advantage to the industry because of the innovation in itself and the advantage that coincides.
Many companies in the manufacturing industry reap even more benefits, such as federal and state tax credits and incentives, which allow these organizations to invest back into their innovative companies, positioning them to be even more effective and efficient.
The manufacturing industry is a strong basis for our economy, our functions and our growth, and Warren Averett is glad to celebrate and champion this industry on its national holiday.
Warren Averett has an entire group of tax and audit professionals who have specifically dedicated their careers to serving the manufacturing industry. The Firm’s Manufacturing and Distribution Group is one of Warren Averett’s largest industry specialization groups, meaning that the Firm attributes a great amount of knowledge, resources, personnel and time to serving this industry well. Our most recent development is Quali-Finder™, a diagnostic tool designed to identify tax credits, incentives and deductions available to businesses so that they can increase their bottom lines and reinvest their savings into advancing their companies. Our Firm is proud to be a proponent of the manufacturing industry. Warren Averett is grateful to serve so many fantastic organizations in the manufacturing industry, but we are also thankful for how manufacturing companies serve our world every day.