Facts About
Modern Manufacturing
Small Plants Dominate the Industrial Landscape
The American economy has historically boasted a fast clip of corporate births and deaths. This turnover underpins a churn of capital, people, and ideas in constant search of applications that satisfy consumer needs. Some of the small companies that survive the competitive crush graduate into a middle-size cohort. Others are purchased by larger entities and operate as plant subsidiaries. The considerable share of modestly sized plants (employing fewer than 100 workers) contradicts the stereotypical large factory. Generally, smaller establishments benefit from flexible management practices and sharper insights into tastes and technology. On the other hand, a smaller size tends to inhibit exports and access to international pools of capital and skilled labor. Successful managers generally choose to grow their companies and plants over time, benefiting from economies of scale.
The largest cohort of manufacturing plants is composed of those employing up to four people. Next are plants with 20-99 workers and 5-9 workers. By far, the smallest cohort is made up of the largest establishments, i.e., those employing more than 500 people.