Manufacturing plays a crucial role in our economy. Not only does it play a major role in wealth production for the country, it also provides jobs and materials that a significant portion of our population and government relies on. Manufacturing encompasses any industry that partakes in the production or processing of goods.
The manufacturing industry includes categories such as: Engineering, Construction, Electronics, Chemical, Energy, Textile, Paper, Food and Beverage, Metalworking, Plastic and Rubber, Transport, Petroleum and Coal, Wood Products
Facts about the manufacturing industry:
• In the beginning of 2017, the manufacturing industry employed 12,355,000 individuals (Bureau of Labor Statistics)
• Work in manufacturing accounts for more than a tenth of GDP in the United States (Economics and Statistics Administration)
• Chemical products, computer and electronic products, and food, beverage, and tobacco products hold the top three largest shares of the manufacturing industry at 17.8%, 13%, and 12.1%, respectively (Economics and Statistics Administration)
• Auto manufacturers account for almost a third of manufacturing job gains since the recession (Economics and Statistics Administration)
With new technologies and an increasingly globalized supply chain system, the manufacturing industry has excelled in efficiency and growth. However, such changes have also increased the amount of risk exposures present that are unique to the industry; more advanced machinery has increased the possibility of breakdowns as well as the cost of repairs, and a more expansive supply chain has increased the possibility of errors leading to product recalls or halts in production.
Since the industry is constantly changing and improving, insurance policies will continue to change to address new ensuing risks. We at Diversified Risk Solutions are here to help industry professionals find insurance policies that provide coverage that recognizes new and significant risks so that manufacturers can promote a safe and fluid business model.
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