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.

By helping to build, power, and feed the world this equipment positively impacts the lives of every American, every day.

While a combine harvester cutting corn or an excavator digging a trench are a common sight for many Americans, they may not realize what that equipment means to the hard-working Americans who build it and the impact the equipment manufacturing industry has on communities across America. Whether it is the welder controlling a robotic welding machine or the software engineer designing the controls for a new wheel loader, there are millions of jobs and opportunities created by the equipment manufacturing industry.

On behalf of AEM we are pleased to share this report, with findings from IHS Markit, that shows the significant contributions by our industry to the U.S. economy each year.

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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Learn more about equipment manufacturers contribution in your state.

Learn more about the pro-manufacturing policies that help equipment manufacturers continue to grow and increase the industry’s contribution to the U.S. economy.