Manufacturing Powers the U.S. Economy

Manufacturing Sector Profitability Has Been Strong Since 2010

Manufacturing sector profitability is affected by cyclical movements in the economy. Profits as a percentage of stockholders’ equity fell sharply in three of the four recessions that occurred between 1980 and 2009. Aggregate profits and the rate of profitability rebounded as the deep 2008-2009 recession ended. After-tax manufacturing sector profits as a percent of equity averaged 15.8% over the 2010-2013 period and in aggregate reached a record high of $602 billion in 2013. Most manufacturing industries are presently in sound financial condition.