The State of
Manufacturingin Tennessee
Prepared by Matthew N. Murray
Center for Business and Economic ResearchThe University of Tennessee
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
2
Strengths of Tennessee’s Manufacturing Sector
A key foundation of the state's economic base and exports; competitiveness
Supports state and local tax bases One of six dollars of state GSP from mfg Higher likelihood of workers receiving health
insurance than in other sectors Workers receive an above-average wage Civic involvement of firms and workers New jobs are still being created!
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
3
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Mining
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Construction
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Manufacturing
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Trade, Transportation, Utilities
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Information
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Financial Activities
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Professional & Business Services
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Educational & Health Services
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Leisure & Hospitality
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Other Services
15000
20000
25000
30000
35000
40000
45000
50000
2001 2002 2003 2004
Government
Average Annual Wage by Industry (2000 $)
Mining Construction Manufacturing Trade, Trans, Utilities
Leisure & Hospitality Other Services Government
Information Financial Activities Professional & Business Education & Health
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Nonfarm Job Growth, Tennessee and U.S.
-4.00
-2.00
0.00
2.00
4.00
6.00
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Tennessee
U.S
Perc
enta
ge c
hange, s
am
e q
uarter, la
st y
ear
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
5
Mfg Job Growth, Tennessee and U.S.
-10.00
-8.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
U.S.
Tennessee
Perc
enta
ge c
hange, s
am
e q
uarter, la
st y
ear
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
6
Services Job Growth, Tennessee and U.S.
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Tennessee
U.S.
Perc
enta
ge c
hange, s
am
e q
uarter, la
st y
ear
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Educ & Health9.5%
Other Services
2.6%
Leisure & Hospitality
8.2%
Financial, Info, Prof & Bus Servs
14.7%
Govt16.0%
Trade, Trans, Util
21.9%
Mfg22.5%
Const, Mining4.6%
Other Services
3.9%
Mfg16.2%
Financial, Info, Prof & Bus Servs
18.4%
Educ & Health10.0%
Leisure & Hospitality
8.5%Trade,
Trans, Util20.7%
Const, Mining5.5%
Govt16.8%
Distribution of Nonfarm Jobs: 1990
United States Tennessee
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Educ & Health11.9%
Const, Mining4.6%
Mfg15.1%
Trade, Trans, Util
21.8%
Govt15.2%
Financial, Info, Prof & Bus Servs
18.3%
Leisure & Hospitality
9.4%
Other Services
3.8%
Mfg10.8%
Other Services
4.1%
Financial, Info, Prof & Bus Servs
21.1%
Educ & Health13.0%
Leisure & Hospitality
9.5%
Trade, Trans, Util
19.3%
Const, Mining5.8%
Govt16.3%
Distribution of Nonfarm Jobs: 2005
United States Tennessee
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Mfg Employment as a Percentage of Total Nonfarm Employment
Less than 7.0% 7.0% to 10.9% 11.0 to 19.9 20.0% or greater
1990 2004
Source: Bureau of Labor Statistics.
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Tennessee Manufacturing Jobs: 2005
Durables62.1%
Nondurables37.9%
Durables Wood Nonmetallic Minerals Primary Metals Fabricated Metals Machinery Computer & Electronics Electrical Equipment Transportation Equipment Furniture Miscellaneous durables
Nondurables Food Beverage & Tobacco Textile Mills Textile Mill Products Apparel Paper Printing Chemicals Plastics & Rubber Miscellaneous nondurables
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Tennessee Manufacturing Jobs: 2005
Wood6.9%Machinery
13.4%
Trans Equip24.5%
Misc.6.4%
Computer, Electronics
4.3%
Fab Metals16.4%
Furniture7.8%
Primary Metals4.8%
Electrical Equip9.1%
Nonmetal Minerals
6.3%Food22.5%
Beverage, Tobacco
3.8%
Paper11.8%
Textile Mills4.1%
Printing12.2%
Chemicals17.4%
Apparel5.4%
Plastics, Rubber18.4%
Misc.1.9%
Textile Mill Prods2.6%
Durables Nondurables
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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TN Durables & Nondurables Employment
150
170
190
210
230
250
270
290
310
1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002
Durables SIC Nondurables SIC
Durables NAICS Nondurables NAICS
emp
loym
ent
(th
ou
san
ds)
Source: Bureau of Labor Statistics and CBER.
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Mfg Employment as a Percentage of Total Nonfarm Employment: 1960 to 2004
10.0
15.0
20.0
25.0
30.0
35.0
40.0
1960 1965 1970 1975 1980 1985 1990 1995 2000
TN SIC
US SIC
TN NAICS
US NAICS
2004
Source: Bureau of Labor Statistics.
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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TN Output Shares in Durables, Nondurables, Trade and Services
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01
Perc
ent
Durables Nondurables Services Trade
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Tennessee Gross State Product by Industry: 1997 and 2003.
Educ & Health9.0%
Other Services
2.7%Leis & Hosp
4.1%
Financial, Info, Prof & Bus Servs
29.2%
Govt12.2%
TTU20.7%
Mfg17.4%
Ag, Const, Mining4.8%
Other Services
2.8% Mfg16.2%
Financial, Info, Prof & Bus Servs
26.5%
Educ & Health8.2%
Leis & Hosp4.1%
TTU21.1%
Ag, Const, Mining5.3%
Govt11.4%
1997 2003
Source: Bureau of Economic Analysis
Educ & Health9.0%
Other Services
2.7%Leis & Hosp
4.1%
Financial, Info, Prof & Bus Servs
29.2%
Govt12.2%
TTU20.7%
Mfg17.4%
Ag, Const, Mining4.8%
Other Services
2.8% Mfg16.2%
Financial, Info, Prof & Bus Servs
26.5%
Educ & Health8.2%
Leis & Hosp4.1%
TTU21.1%
Ag, Const, Mining5.3%
Govt11.4%
1997 2003
Source: Bureau of Economic Analysis
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Tennessee
U.S.
Southeastern states
Mfg Establishments as a Share of Total Establishments
pe
rce
nta
ge
Source: County Business Patterns.
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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40
45
50
55
60
65
70
75
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Tennessee
U.S.
Southeastern states
Mfg Employment per Establishment: 1988–2003
em
plo
ye
es
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Manufacturing in the Southeast: 2003
StateManufacturing
employees EstablishmentsShare of manufacturing
establishments
Jobs per manufacturingestablishment
Alabama 279,074 4,980 5.0 percent 56
Arkansas 208,843 3,127 4.9 percent 67
Florida 369,754 14,750 3.2 percent 25
Georgia 449,486 8,652 4.1 percent 52
Kentucky 260,951 4,202 4.6 percent 62
Louisiana 149,603 3,459 3.4 percent 43
Mississippi 172,618 2,706 4.5 percent 64
North Carolina 591,566 10,527 5.1 percent 56
South Carolina 283,244 4,321 4.4 percent 66
Tennessee 393,832 6,824 5.3 percent 58
Virginia 308,571 5,841 3.2 percent 53
West Virginia 69,610 1,442 3.6 percent 48
United States 14,132,020 341,849 4.7 percent 41
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Mfg Establishments in Tennessee
1998 2003 ChangePercentchange
7,376 6,824 -552 -7.5%Food 359 364 5 1.4%Beverage & Tobacco Products 54 68 14 25.9%Textile Mills 98 81 -17 -17.3%Textile Product Mills 154 138 -16 -10.4%Apparel 330 197 -133 -40.3%Leather & Allied Products 40 37 -3 -7.5%Wood Products 636 590 -46 -7.2%Paper 163 154 -9 -5.5%Printing & Related Support Activities 844 762 -82 -9.7%Petroleum & Coal Products 53 56 3 5.7%Chemical 285 282 -3 -1.1%Plastics & Rubber Products 392 345 -47 -12.0%Nonmetallic Mineral Products 378 376 -2 -0.5%Primary Metals 143 135 -8 -5.6%Fabricated Metal Products 1171 1158 -13 -1.1%Machinery 558 504 -54 -9.7%Computer & Electronic Products 190 143 -47 -24.7%Electrical Equipment, Appliance, & Components147 140 -7 -4.8%Transportation Equipment 316 310 -6 -1.9%Furniture & Related Products 552 450 -102 -18.5%Miscellaneous 513 534 21 4.1%
SectorManufacturing
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Manufacturing Establishmentsper County, 2003
Source: U.S. Census Bureau, County Business Patterns.
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Average Employment per Manufacturing Establishment, 2003
Source: U.S. Census Bureau, County Business Patterns.
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Manufacturing Employment as a Percentage of Total Private Employment, 2003
State average = 18.6%
Less than or equal to 18.6%
18.6% to 40.0%Greater than 40.0%
Not disclosed
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Less than 9.6% 9.6% to 16% Greater than 16%
Educational Attainment of Persons 25 Years and Older:Percent with Less than a 9th Grade Education, 2000
TN Average = 9.6% U.S. Average = 7.5%
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
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Projected Growth in TN Mfg Jobs: Nondurables
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0Fo
od
Bev
erag
e,To
bac
co
Tex
tile
Mill
s
Tex
tile
Mill
Pro
ds
App
arel
Pap
er
Pri
nting
Chem
ical
s
Pla
stic
s,R
ub
ber
Mis
c.N
on
dura
ble
s
2006
2007
perc
enta
ge
Source: CBER.
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
25
Projected Growth in TN Mfg Jobs: Durables
0.0
0.5
1.0
1.5
2.0
2.5
3.0W
ood
Non
met
allic
Min
eral
s
Pri
mar
y M
etal
s
Fab
rica
ted
Met
als
Mac
hin
ery
Com
pute
r,E
lect
ronic
s
Ele
ctri
cal
Equip
Tra
ns
Equ
ip
Fu
rniture
Mis
c. D
ura
ble
s
2006
2007
perc
enta
ge
Source: CBER.
November 8 2005 M.N. Murray, Center for Business and Economic Research, The University of Tennessee, Knoxville
26
Center for Business and Economic Research
Web address: http://cber.bus.utk.edu