| Rank | 10 Largest U.S. Manufacturing Industries | 2010 Revenue (Millions) | Examples of Companies |
|---|---|---|---|
| 1 | Petroleum and Coal Products | $1,027,938 | ExxonMobil, Chevron, Conoco |
| 2 | Computers and Other Electronic Products | $581,344 | HP, IBM, Microsoft |
| 3 | Chemicals | $387,326 | P&G, Dow, DuPont |
| 4 | Food | $284,390 | ADM, Kraft, Tyson |
| 5 | Pharmaceuticals | $257,975 | J&J, Pfizer, Abbot |
| 6 | Aerospace & Defense | $250,446 | Boeing, United Technologies, Lockheed Martin |
| 7 | Electrical Equipment & Appliances | $245,307 | GE, Emerson, Whirlpool |
| 8 | Machinery | $194,098 | Caterpillar, Deere, Xerox |
| 9 | Motor Vehicles | $150,721 | Ford, Navistar, PACCAR |
| 10 | Beverages | $133,619 | Pepsi, Coke, Dr. Pepper/Snapple |
The chart above displays the top ten largest manufacturing industries based on 2010 sales revenue. I reported on the IndustryWeek rankings previously in this post back in February.
Interesting, Mark. All 19 of the DJIA companies you described as manufacturing companies are also on Industry Week's list of manufacturing companies. I suppose the same critic of your list will likewise be ready to criticize Industry Week's list.
ReplyDeleteI'm not familiar with all the products which Microsoft and IBM provide their customers. Based on my exposure to those companies, I would agree with morganovich that they are not primarily manufacturing companies. At least, as I understand the government's NAIC and SIC classifications, I don't believe those two should still be considered manufacturers.
Some items Microsoft manufactures:
ReplyDeleteMicrosoft SideWinder Mouse
Microsoft Comfort Curve Keyboard
Microsoft Wireless Optical Desktop
Microsoft Media Center Keyboard
Microsoft Natural Ergonomic Keyboard
Microsoft Wireless Notebook mouse
Microsoft Optical Desktop
XBox 360 Rock Band Drum Set
Microsoft Xbox 360 Controller
Microsoft Xbox 360
Business hardware:
ReplyDelete"Microsoft Hardware for Business, available through qualified resellers, is an easier way to purchase and deploy Microsoft Hardware. Our full line of products for business—from webcams and headsets to keyboards and mice—are designed to work seamlessly with Microsoft software and help save you money, increase productivity, and improve employee comfort."
peak-
ReplyDeletenope. not at all.
microsoft itself does not manufacture any of those products. every one is outsourced.
Would you be able to point me to where I can find how much taxes each industry paid so I can effectively show progressive friends that the oil industries effective tax rate was higher than the 35% corporate tax rate? Thanks.
ReplyDeleteBy any normal usage extracting oil and coal would be considered mining rather than manufacturing. Does this data include only value added activities like refining in "petroleum and coal" category?
ReplyDeletepatriot-
ReplyDeletepull XOM's 10k.
if you factor in all the taxes they pay, the rate is around 70%.
Thanks.
ReplyDeleteI was wondering if there is a source where they state what is the total tax oil and gas sector paid collectively?
The 2010 IW 50 Best Manufacturing Companies
ReplyDeleteIndustryWeek
Microsoft is ranked 6th, Apple 3rd, IBM 21st, and HP 49th.
I can understand the quibbles on categorizing IBM and Microsoft as manufacturers. It could be viewed that MSFT assembles code for resultant software products. IBM has transformed itself into a service company but it still produces "Big Iron" mainframes which they call mainframe servers.
ReplyDeleteOne Dow component, McDonald's, is probably more of a manufacturer then IBM or Microsoft. Go into a McDonald's at breakfast or lunch, and watch the assembly line of food inputs into a McMuffin or McChicken.
Economist Greg Mankiw got involved in some controversy by asking: "When a fast-food restaurant sells a hamburger, for example, is it providing a 'service' or is it combining inputs to 'manufacture' a product?" Professor Mankiw was Chairman of the Council of Economic Advisors under George dubya Bush. The question was academic, as posed by an academic, in non-academic WA DC.
Buddy,
ReplyDeleteThe question for me is not whether IBM sells big iron mainframes, but whether they actually manufacture them.
Ignoring morganovich's limited definition of manufacturing, I'll refer instead to the federal government definition of manufacturing:
"The Manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing, except in cases where the activity is appropriately classified in Sector 23, Construction."
If IBM actually crafts the components of its Big Iron Mainframes, then it is clearly a manufacturer of them.
If IBM assembles its Big Iron Mainframes from components crafted by someone else, it is also a manufacturer of them.
But if IBM outsources the entire crafting and assembly, and only adds operating system software, then I'm not sure we should still call IBM a manufacturer of Big Iron Mainframes.
Do those distinctions make sense to you? That's how I see it.
Jet, I think the problem is that the definition of manufacturing includes both transformation and assembly.
ReplyDeleteIs Boeing a manufacturer or a very large scale assembler? BA transforms some carbon fiber filaments into tail sections, but assembles the great majority of inputs, transformed by others, into aircraft.
I wonder if Greg Mankiw would concede that McDonald's is an assembler of Quarterpounders and not a manufacturer? (not trying to get Prof. Mankiw back into unjustified controversy):>)
And how many people are employed at these companies nowadays? Every few months I go past the IBM plant where my late father worked for 32 years. There are a lot less cars in the parking lot. But the corporate pay,that has skyrocketed. But it's minimum wage workers who are greedy, not corporate executives.
ReplyDeleteUnless I'm thinking of a different company, isn't United (airlines?) in "transportation" rather than aerospace?
ReplyDeleteIt's United Technologies, not United Airlines. I changed the post to clarify.
ReplyDeletebuddy: "I think the problem is that the definition of manufacturing includes both transformation and assembly."
ReplyDeleteYes, the definition does include both. But I don't see that as a problem. Both activities are manufacturing processes.
One of the "Dr Dooms" I follow is predicting a recession next year.
ReplyDeleteI doubt we'll be on a solid growth track with Obama in power:
6 hours ago
Shilling says the shock to trigger the next recession is "another big leg-down in housing."
"When you have slow growth it doesn't take much of a shock to throw you in negative territory."
Based on Shilling's research, there are 2 million to 2.5 million excess homes in the country -- a supply that will take 4-5 years to work-off.
The result: Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%, he says.
I'm not familiar with all the products which Microsoft and IBM provide their customers. Based on my exposure to those companies, I would agree with morganovich that they are not primarily manufacturing companies.
ReplyDeleteNotice how ADM, Boeing, United Technologies, Lockheed Martin, and GE depend on government subsidies or mandates for some of their profits? And aren't ExxonMobil, Chevron, Conoco, and the coal companies also in the mining business?
VangeIV: " aren't ExxonMobil, Chevron, Conoco, and the coal companies also in the mining business?"
ReplyDeleteYes, that's true. I thought the Census and the BLS attempt to separate the revenues and employees of these companies into different sectors when creating statistics about manufacturing and mining.
Of course, as I commented on a prior post, ExxonMobil reports that almost 80% of its revenue from outsde the company is derived from downstream operations (chiefly refining) and chemicals production. There is no doubt in my mind that ExxonMobil is primarily a manufacturing company.
vangeiv: "Notice how ADM, Boeing, United Technologies, Lockheed Martin, and GE depend on government subsidies or mandates for some of their profits?"
ReplyDeleteYes, that's true. Not sure about ADM, but there should be little dount that the other 4 are manufacturing companies. Not sure what point you're making.
vangeIV,
ReplyDeleteIn you comment on the other manufacturing post, you semmed to argue that drug companies are not manufacturing companies, but rather drug development companies. Why do you make such a distinction? Merck most definitely manufactures the products it sells at the 77 factories it owns and operates.
Would you describe DuPont as a chemical development company rather than a chemical manufacturing company?
In any case, you nor morganovich seem to ignore the NAIC and SIC codes which are widely used by government and industry for classifying companies. Both sets of codes categorize production of defense armaments and pharmaceuticals as manufacturing.
That should have been:
ReplyDelete"you and morganovich seem to ignore"
There is no doubt in my mind that ExxonMobil is primarily a manufacturing company.
ReplyDeleteI have no trouble with this statement. But I do think that the case about manufacturing was overestimated by people looking for straws to grasp.
Yes, that's true. Not sure about ADM, but there should be little dount that the other 4 are manufacturing companies. Not sure what point you're making.
I am sorry. I thought that my point was clear. I was just trying to point out that without huge subsidies many of the manufacturing companies would be a lot smaller relative to the rest of the economy. Imagine how much smaller the weapons companies would be without government largesse. How much less profit would GE have without the massive green energy subsidies that allow it to cover its losses in its other segments or engine sales for jets that are not really needed.
In you comment on the other manufacturing post, you semmed to argue that drug companies are not manufacturing companies, but rather drug development companies. Why do you make such a distinction? Merck most definitely manufactures the products it sells at the 77 factories it owns and operates.
ReplyDeleteThe revenues do not come from the low margin manufacturing activities but from the patent protection granted to drugs that Merck developed.
Would you describe DuPont as a chemical development company rather than a chemical manufacturing company?
It depends on which revenue stream you look at. Off patent products are certainly in the manufacturing category. But chemicals that provide huge margins because DuPont owns the patent would fit in the development category.
In any case, you nor morganovich seem to ignore the NAIC and SIC codes which are widely used by government and industry for classifying companies. Both sets of codes categorize production of defense armaments and pharmaceuticals as manufacturing.
I cannot speak for morganovich but I do not put much faith in the way that governments report anything.
It is interesting that the oil and mining areas are the largest of the groups. Since they are so highly capital intensive and therefore demand very high returns on capital rather than labor, I wonder if this is one of the causes of seemingly low wage rates within the manufacturing sector.
ReplyDeleteIt is interesting that the oil and mining areas are the largest of the groups. Since they are so highly capital intensive and therefore demand very high returns on capital rather than labor, I wonder if this is one of the causes of seemingly low wage rates within the manufacturing sector.
ReplyDeleteLow wage rates? Where is the evidence that skilled positions in the manufacturing sector are not getting paid well enough?