Manufacturing sector benefits drive billions in impact

In this infographic we explore impacts at three levels, including among manufacturing workers, manufacturing companies and across industries and the economy. These insights are based on an Economist Impact survey of US workers, national benefits data and an economic model. Our survey included 1,500 full-time workers across medium to large companies, including 500 in the manufacturing sector.

Individual impacts

Companies in the manufacturing sector spend $260 billion on benefits for workersHover to explore

Insurance

Health, life and disability insurance plans, which provide access to routine healthcare and coverage in case of emergencies

Paid time off

Paid time off for vacation, sick leave, mental health, family reasons or volunteering

Retirement

Employer-sponsored investment plans that help employees save for retirement (eg, pension, 401k)

Education and training

Education or training offered/sponsored by an employer. Can include student loan repayment benefits

Wellness

Physical wellness benefits (eg, gym memberships), mental wellness benefits (eg, employee assistance programs) and financial wellness benefits (eg, financial advice/resources)

Family planning and care

Fertility/family planning benefits (eg, financial support for IVF), parental leave/support and caregiving support

Number of workers who use each benefitHover to explore

Insurance

Health, life and disability insurance plans, which provide access to routine healthcare and coverage in case of emergencies

Retirement

Employer-sponsored investment plans that help employees save for retirement (eg, pension, 401k)

Paid time off

Paid time off for vacation, sick leave, mental health, family reasons or volunteering

Wellness

Physical wellness benefits (eg, gym memberships), mental wellness benefits (eg, employee assistance programs) and financial wellness benefits (eg, financial advice/resources)

Education and training

Education or training offered/sponsored by an employer. Can include student loan repayment benefits

Family planning and care

Fertility/family planning benefits (eg, financial support for IVF), parental leave/support and caregiving support

More than

10.8m

manufacturing workers take advantage of employer-provided benefits.

On average, this amounts to

$23,900

in direct spending per beneficiary.

Manufacturing workers make additional contributions of more than $107 billion

$53bn

Contributions to retirement plans

$37bn

Contributions to health insurance

$17bn

Personal healthcare spending

Benefits also pave the way for social impacts

They encourage workers to take advantage of subsidized caregiving, education and wellness programs11%

of workers say their family takes advantage of their education benefits.

They promote upward mobility and equality14%

of Asian workers say they are the first in their families with access to benefits such as retirement, health insurance and parental leave.

Industry and economic impacts

Spending on manufacturing benefits supports the economy

Financial flows from employers and workers (left) to benefits providers and other recipients (right), US$bn

*Also includes administrative and other servicesNote: Paid time off not depicted as an industry flowSource: Economist Impact calculations; see methodology appendix for details

$126bn

The health and social work sector plays the largest part in benefit provision, receiving $126 billion in spending.

$28bn

The manufacturing sector plays a role, too, receiving $28 billion in benefit spending. One-third of this is due to the sector’s role in pharmaceutical production, a key factor in health benefits.

As every dollar spent on manufacturing benefits ripples through the US economy, it ultimately generates 1.5 times its value in economic impact

Total impact on the US economy

$528bn

Total impact on the US labor market

5.5m jobs

Impacts on manufacturing companies

Benefits also drive countless positive impacts for the employers that provide them

Talent acquisition64%

of manufacturing workers say they would consider switching jobs for better benefits.

Productivity and innovation4 in 5 workers

say that taking advantage of education and training programs positively impacts their success and happiness at work.

Workplace culture1.5x

Workers are nearly 1.5 times more likely to have positive views about their company values and culture at organizations that offer more comprehensive benefits packages.¹

Workforce health78%

of manufacturing workers with wellness benefits say these have improved their health.

Notes

¹Compared with companies that offer the fewest benefits (see related chart in our article "Rethinking benefits for better talent outcomes")

Continue the benefits conversation

Tackling areas where benefits fall short

Our next infographic explores three areas where benefits can be improved in the manufacturing sector.

Continue the benefits conversation

Rethinking benefits for better talent outcomes

In our next article, we explore how manufacturing companies can use benefits more effectively to promote growth and resilience for their organization.

Continue the benefits conversation

Optimizing benefits provision: three strategic recommendations

To elevate the impact of their benefits, companies need a holistic strategy to guide decision-making. Learn more about how manufacturing employers can set themselves up for success.

Continue the benefits conversation

Benefits 2.0: building a market-leading benefits strategy

Learn more about how employers can optimize benefits to better meet workers’ needs, gain a competitive advantage and drive socioeconomic growth.

Advertisement feature

Empowering workers in a changing retirement landscape

What has propelled the shift away from traditional pension plans, and how can employers still support their workers’ retirement goals?

The benefits of lifetime income

How can lifetime income ease workers’ anxieties over retirement savings–and give employers an edge?

Disclosure statement:

Nuveen and Economist Impact, or any of their affiliates or subsidiaries are not affiliated with or in any way related to each other. The research was independently developed by Economist Impact and is sponsored by Nuveen, LLC. The views and opinions expressed in this publication are those of Economist Impact and do not necessarily reflect the view and policies of Nuveen, LLC.

This material, along with the views and opinions expressed within, are for informational and educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market, economic or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty (express or implied) as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information, and it should not be relied on as such.

Nuveen, LLC provides investment solutions through its investment specialists.

QAR-3325909CG-E1223W