The Economic Impact of the Equipment Manufacturing Industry

The report, with findings from IHS Markit, shows the significant contributions by the equipment manufacturing industry to the U.S. economy each year.

Aem Economic Impact Report 2020 Page 001

AEM’s “The Economic Impact of the Equipment Manufacturing Industry” report highlights the industry’s total and direct contribution to the U.S. economy at the national, state, and congressional levels. This includes capturing the industry’s total employment, contribution to the U.S. Gross Domestic Product (GDP), total sales output, labor income, state and federal tax revenue generated and more.

Highlights of the 2020 report include:

Jobs

  • 2.8 million jobs supported by the equipment manufacturing industry
  • Equipment manufacturers support 12% of all U.S. manufacturing sector jobs
  • Equipment manufacturers support at least 1,000 jobs in 44 states
  • Equipment manufacturers support at least 1,000 jobs in nearly two-thirds of every U.S. congressional district
  • Equipment manufacturing jobs pay 35% above the national average
  • The top 5 states with the most jobs supported by the equipment manufacturing industry are Texas (622,882), Illinois (245,624), Wisconsin (187,699), Ohio (163,990), and Indiana (139,842)

Broader Economic Contribution

  • $288 billion a year contributed to the U.S. economy by the equipment manufacturing industry
  • $791 billion dollars a year is generated by equipment manufacturers in total equipment sales and output
  • $53.7 billion a year is paid by the equipment manufacturing industry in federal, state, and local taxes

AEM's report is based off an IHS Markit analysis titled The Market Size and Economic Contributions of the Off-Highway Industry. For access to the full report and its corresponding underlying data, contact David Ward at dward@aem.org.

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