US manufacturing has fallen to now represent just 11% of total US economic output, and only 8% of US employment - and both these numbers have been heading in the wrong direction for years.

Does it matter?

It sure does, according to McKinsey & Company managing partner for North America Asutosh Padhi.

In a recent blog post on the World Economic Forum web site, Padhi noted the still outsized impact manufacturing has on the overall economy, as shown in the graphic below from the article:

As can be seen, manufacturing drives 20% of the nation’s capital investment, 35% of productivity growth, 60% of exports, and 70% of business research and development expenditures.

Padhi believes US manfacturing can still be revived, but that it willl take significant investtment in digital technologies and work force training and development.

See Reviving US Manufacturing Key to Reducing Inequality, McKinsey Leader Says

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