Manufacturing economics

The U.S. manufacturing industry is a critical component of the U.S. economy and a major contributor to global manufacturing. In terms of economic value added, the U.S. is the second largest manufacturing country in the world. Promoting innovation and industrial competitiveness in manufacturing can often require understanding the economics of the industry. This might include examining the value and quantity of the goods produced, measuring stakeholder costs and losses, estimating the costs/benefits of potential technological advancements/adoptions, or developing methods for investment analysis. NIST has made a number of efforts to advance economic research in manufacturing.

Manufacturing Economy 

Economic Statistics: NIST’s Applied Economics Office annually produces statistics characterizing the U.S. manufacturing economy. Three primary aspects of U.S. manufacturing competitiveness are discussed: (1) how the U.S. industry compares to other countries, (2) the trends in the domestic industry, and (3) the industry trends compared to those in other countries. 

Supply Chain Research: The Applied Economics Office also produces research on supply chains, including examining costs, flow time, and supply chain disruption. 

Compilation of Reports: NIST’s Manufacturing Extension Partnership (MEP) assembles a compilation of reports about manufacturing, which often focuses on economic issues.

Technology Economics 

NIST frequently investigates the economic impact that various technologies might have on the manufacturing economy. These might include the adoption of advanced maintenance or additive manufacturing. Some of these reports are conducted by the Applied Economics Office while others are provided by NIST’s Technology Partnership Office: 

• Applied Economics Office research
• Technology Partnership Office research

NIST Economic Impact Studies

Economic Impact Studies: In addition to the studies discussed above, NIST conducts some studies examining the impact of its research, including impacts in manufacturing. The studies include various subjects such as chemicals, electronics, manufacturing, pharmaceuticals, semiconductors, and materials. This research can be found on the Technology Partnership Office page for NIST Economic Impact Studies. We also have provided a table summarizing findings from many of these studies.

Economic Decision Making

Tools and Guides: The Applied Economics Office provides tools and guides for economic decision making in manufacturing that can aid manufacturers in making investment decisions. For instance, consider a manufacturer that has several investment options for improving efficiency and/or productivity, but can only afford one of them. The guides and tools for economic decision making can aid in identifying which investment to select.