Download The Midwestern economy is strongly rooted in manufacturing

9/17/12
4:00 PM
Page 2
The Midwestern economy is strongly rooted in manufacturing
including automobiles, renewable fuels and food products.
Manufacturing Share of Total GDP,
2000 and 2010
T
Southeast
relies heavily
Midwest
on goods and
resources
the Midwest. Manufacturing is
2000
West
produced and manufactured in
2010
Northeast
a critical part of the region’s
0
economy, and advanced
manufacturing is emerging as
2%
4%
6%
8%
Source: U.S. Bureau of Economic Analysis
manufacturing.
Manufacturing’s share of total
energy also provides the Midwest with
Midwestern gross domestic product
a competitive advantage in
(GDP) outpaces other regions of the
Since 2003, Illinois’ manufacturing exports rose more than three times as fast as the state's overall economy, with
manufactured exports supporting 25 percent of the state’s manufacturing jobs. Small businesses make up 90
percent of Illinois’ exporters.1
Manufacturing Employment
in MGA Region (in thousands)
2007
2008
2009
2010
500
1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Source: U.S. Bureau of Labor Statistics
300,000
MGA Average
250,000
200,000
U.S. Average
150,000
100,000
Iowa’s central geographic
location, its high-quality
higher education system
and its history of interfirm collaboration are just
a few of the reasons why
some of the world’s
leading companies, such
as Rockwell Collins, John
Deere, Alcoa, Winnebago
and Vermeer, reinforce the
state’s position as a center
for advanced
manufacturing and as a
leading exporter.
Machinery
2007
2008
2009
2010
2011
Source: U.S. Bureau of Labor Statistics
10%
20%
30%
Source: U.S. Bureau of Economic Analysis
40%
50%
60%
70%
percent of total U.S. GPD
percent of the nation’s total GDP in
country. In 2010, the Midwest
Commerce, seven of these account for
accounted for 30 percent of total U.S.
67 percent of manufacturing GDP in the
manufacturing workforce represented
MGA region. These leading regional
subsectors also make up a significant
share of the nation’s manufacturing
10 percent of the region’s total
employment, a higher percentage than
GDP for the corresponding subsectors.
The MGA region’s motor vehicle, body,
Of the 19 manufacturing subsectors
trailer and parts manufacturing
defined by the U.S. Department of
contributed 62
Leading Manufacturing Sectors GDP Within
MGA Region
33%
5%
Machinery - $56.1 Billion
12%
12%
6%
8%
that subsector.
The region also accounted for 46
10%
Chemical - $53.8 Billion
Food & beverage & tobacco product - $53.5 Billion
Fabricated metal product - $42.8 Billion
Motor vehicle, body, trailer, & parts $33.9 Billion
Computer & electronic product - $27.0 Billion
Plastics & rubber products - $23.3 Billion
Other - $142.4 Billion
Source: U.S. Bureau of Economic Analysis
Indiana is a leading
state in the research,
development and
manufacturing of nextgeneration batteries and
electric drive vehicles. It
is home to a number of
established and
emerging battery
technology companies
including Delphi
Electronics & Safety, the
only U.S. manufacturer
of hybrid power
converters, controllers
and battery packs. 3
++!/),()*
..!(,-/-/
*,!1*,)*.
/+!(+1.
+(!***-/,
-)!-1(+01
*(!+,--.+
,)!..,11
+*!/1(),*
./!,0+0+)
Kansas leads the world in
aviation manufacturing, with
more than 70 percent of the
world’s embedded aviation fleet
manufactured in the state. A
unique composites cluster can
be found in the south central
region of the state, along with
specialized plastics and polymer
expertise. Whether in the
aviation, plastics or agricultural
sectors, there is a common
thread of advanced techniques
used for precision
manufacturing that is performed
with the newest materials and
supported by in-state centers of
national prominence.4
%0(
$80
%/(
$70
U.S. Total
!!
%.(
$60
%-(
$50
Already home to
many leading
petrochemical plants,
Ohio is poised to take
advantage of its
burgeoning natural
gas production and
increase the
manufacturing of
fertilizers, plastics
and other products
made from natural
gas by-products.
Ohio’s second leading
manufacturing sector,
fabricated metal
products, will also
benefit as more
petrochemical plants
are in Ohio and
neighboring states.
%,(
$40
%+(
$30
%*(
$20
%)(
$10
%(
$0
Midwest Region
2005
*((-
2006
*((.
2007
*((/
2008
*((0
2009
*((1
2010
*()(
Source: U.S. Census Bureauʼs Annual Survey of Manufacturers
!!
manufacturers, as well as smaller
companies that supply the
industry with components
necessary for wind turbine evelopment.
percent of U.S. motor vehicle
manufacturing jobs. Given the current
cross-state supply chains for vehicles,
significant opportunities exist for
any other region.
13%
)((((((
+/!/,0,,/
./!.(-/-1
Primary metal
Motor vehicle, body,
railer, & parts
,.4
,14
Motor Vehicle Manufacturing GDP
Fabricated metal
product
0%
manufacturing, while the regional
economy. The availability of low-cost
2011
350,000
50,000
"%#
Percentage of MGA Regional Share
of U.S. Manufacturing GPD by
Subsector
Printing and related
support
10% 12% 14% 16% 18% 20%
one of the strongest sectors of the U.S.
400,000
Companies are finding opportunity
in the production of everything
from medical devices to military
hardware and increasingly
alternative energy technologies.
With nearly 15,000 manufacturing
establishments in the state,
Michigan's high-quality
engineering and skilled
manufacturing continue to attract
employers in emerging 21st
Century industries. 2
!
"
#
$
11()) 10/() /11*- /0.*1 -0+.. .**(*
+//,0,,/ ++/),()* *,1*,)*. +(***-/, *(+,--.+ +*/1(),*
*(,(.- *(-0,+ )/100- )-.*-) )*,/1* )+-00)
./.(-/-1 ..(,-/-/ /+(+1.(( -)-1(+01 ,)..,11( ./,0+0+)
Plastics and rubber
products
450,000
U.S.
he world
2012
500,000
Average State Manufacturing
Employment
Value
Added (billion $)
MIDWEST MFG BROCHURE 2012.qxp:Layout 1
Midwestern states as domestic and
global markets expand for alternative
fuel vehicles, including natural gas
and electric.
Wind Manufacturing Activity in 2011
<100 MW
100 to 1,000 MW
>1,000 MW to 10,000 MW
Increased use of wind energy has
helped fuel advanced manufacturing
Minnesota ranks second nationwide in the
percentage of the population 25 years and
older that has a high school diploma (91.5
percent) and 11th in the proportion of people
with a bachelors’ degree (31.5 percent).
Minnesota is also participating in the National
Association of Manufacturers’ Dream It-Do It
campaign that targets individuals 18 to 26
years old to pursue manufacturing careers.5
activity in the Midwest, which is
currently home to at least 188
companies contributing to the wind
energy industry.6 These facilities
include major wind technology
Source: American Wind Energy Association
Misso uri is proud of its manufacturing heritage with companies like Boeing, Harley-Davidson, Ford and GM
leading the way. Abundant, low-cost labor, coupled with low business and energy costs, mean a better bottom
line for businesses with operations in the state. Missouri’s proximity to major markets via highway, rail, river
and air means even greater savings for companies shipping their
products outside the state.
>10,000 MW
National Association of
Manufacturers
2
Michigan Economic
Development Corporation
3
Indiana Economic
Development Corporation
4
Kansas Department of
Commerce
5
Minnesota Department of
Employment and
Economic Development
6
American Wind Energy
Association
1
Cover photo 3 courtesy of
Ohio Dept. of Development
While home to many types of manufacturing, such as fabricated metals, machinery and paper, Wisconsin is
also a leader in the manufacturing of food products. Wisconsin is home to over 11,000 dairy farms and 1.27
million milk cows. In 2011, Wisconsin produced an estimated 2.6 billion pounds of cheese.
MIDWEST MFG BROCHURE 2012.qxp:Layout 1
9/17/12
3:55 PM
Page 1
Strong Work Ethic,
Entrepreneurial,
Innovative,
Bioscience,
Energy,
Manufacturing,
America’s
Smartland:
The Midwestern Governors
Association (MGA) is a nonprofit, bipartisan
GROWING OUR
ADVANCED
organization that brings together the governors of
MANUFACTURING
Midwestern states to work cooperatively on public policy
issues of significance to the region. The MGA states
include Illinois, Indiana, Iowa, Kansas, Michigan,
Minnesota, Missouri, Ohio and Wisconsin.
Working as a dynamic
whole, the MGA region’s
unique assets are greater than the
sum of their parts. The Midwest is the
For more information on the MGA, visit
www.midwesterngovernors.org
crossroads for much of the nation’s economic activity, with a robust freight
industry and a rich network of rails, rivers, roads and airports second to none.
Transportation Crossroads,
Sensational Standard of Living,
Here you will find a world-class work ethic and a welcoming climate for
business and job growth, as reflected by our diverse mix of industries. Add
Quality Education,
Skilled Workforce
to this: vibrant cities and towns—both urban and rural—high-quality schools,
cutting-edge universities and research institutions, easy access to
breathtaking outdoor recreation in all four seasons, cultural amenities that
rival any in the world, and you begin to understand how this region became
both bread-basket and manufacturer to the world. This enviable standard of
living and economic resilience is matched by an uncommon decency among
people here, making this an exceptional place to live, raise a family, get an
education, start a business, or grow an industry. Beyond its physical and
intellectual assets, the Midwest has a cultural tradition of cooperation and a
legacy of innovation—based on its pioneer and agricultural heritage—that
makes it a natural home for new cutting-edge technologies, whether in
advanced manufacturing, the biosciences or energy production.
th
50Anniversary
th
50Anniversary