As of 2025, the U.S. had approximately 600,000 manufacturing businesses with nearly 13 million workers and three sectors divided into large, medium and small sectors, with the majority of manufacturing shops falling in the small category with less than 50 employees. Further, 75% of those small shops have fewer than 20 employees.
These small but mighty powerhouses have a significant role in the manufacturing industry, U.S. economy and local economies in areas where they operate. They create a wide variety of products we use every day, making our world and our lives better. Equally important, they reflect the values of the people who make these products and the people who use those products every day.
Big economic impacts
In the third quarter of 2024, manufacturers contributed almost $3 trillion to the U.S. economy. Every dollar spent manufacturing made an impact of $2.64 to the overall U.S. economy; this is the manufacturing multiplier effect that stimulates broader economic activity. Given the high percentage of small manufacturers, their sector’s contribution is economically significant.
Over the next decade, manufacturing will likely increase their financial impact through things like automation, AI integration and the focus on sustainability. Industry experts expect a shift towards more localized and personalized production driven by technologies like 3D printing and smart factories. The industry will pursue more integration of IoT devices, and data analytics will enable real-time monitoring, predictive maintenance and smarter decision-making. These technologies will create more opportunities for small manufacturers to show the world the incredible things they make.
imagine a world without small manufacturers
Given their economic contributions mentioned above, imagine if small manufacturers didn’t exist. Without them, neighborhoods and communities would lose not only jobs, but also the sense of pride that comes from seeing products crafted close to home. Their focus on quality and customer satisfaction is more than a business model – it’s a relationship. These are the companies that know your name, remember your last order and adapt quickly to what their community needs.
Without small manufacturers, customers would be left with mass-produced goods lacking personality and purpose. The unique, high-quality items that feel personal – like a handcrafted bookshelf made from local wood – would be harder to find. Innovation might slow, as larger manufacturers aren’t always as agile or willing to take creative risks on niche products. Local economies would take a hit, too, losing the jobs, tax revenue and supply chain diversity that small manufacturers bring to the table.
In short, the absence of small manufacturers would leave our economy less resilient, our communities less connected and our homes less personal. Without them, our economy (and our lives) would look a lot different.
Risky Business without Small Manufacturers
The more shoppers realize the value of buying from small manufacturers, the more it positively affects their local community and our world.
- When you shop small, you strengthen the local economy and jobs, keeping money circulating within your community.
- When you buy small, you increase tax revenues in your cities and towns, helping to fund schools, libraries, infrastructure and projects that are vital to keeping our communities great.
- When you buy local, you enable small manufacturers, who are your neighbors, to produce higher quality products. Shoppers get the advantage when you shop small with an edge on pricing and competitiveness in the market.
- When you buy from small manufacturers, you allow families to build businesses that last generations – crafting quality products for your businesses and family.
- When you shop from small manufacturers, you get direct access to the decisionmakers – effecting positive change on products that matter to you.
- Without small manufacturers, you lose access to regionally available, diverse products.
Job Creation
By the end of 2024, manufacturing generated 462,000 job openings, an increase from the year prior. Small manufacturers contributed to a significant number of industry job openings, ranging from machine operators, welders and assemblers to inventory and quality control, management and leadership, as well as other skilled trades.
When small manufacturers hire, they create accessible opportunities for people in their community. These jobs help families earn income, build stability and contribute to local economies through spending and taxes. They provide entry-level roles with room to grow. Without them, many communities would face limited options for steady, meaningful work. By supporting small manufacturers, you help keep doors open for workers, communities and the future of our economy.
Family-Run Manufacturers
In addition to the above, many small to medium sized manufactures are family-run businesses. We hear all the time from manufacturers who started in their garage who are now thriving businesses run by their children and grandchildren. What were formerly “mom and pop” shops are now businesses growing our communities and providing us quality products and incredible job opportunities.
Family-run manufacturers benefit their community with strong commitment, earned trust and customer loyalty. Their long-term vision means they and their products are built to last generations. Decisions they make are about sustainability and legacy rather than short-term profit. Their strong company culture fosters professional accountability, mutual respect and shared values – where employees feel like family. When a family name is on the door – or product label – quality, craftmanship and pride in their work is personal. They transfer knowledge, skills and expertise down through the generations preserving quality and traditions.
Small manufacturers are more than just businesses – they are the heartbeat of our local economies and the threads that weave innovation, resilience and community into the fabric of American industry. By supporting them, we invest in quality, character and sustainability. The next time you make a purchase, remember the story behind it – one of craftsmanship, dedication and family legacy. When we choose to shop small, we’re not just buying a product; we’re championing a future where our communities thrive and where meaningful work and human connection remain at the center of it all.