Salt Lake City—  The Kem C. Gardner Policy Institute today released a report commissioned by the Utah Governor’s Office of Economic Development (GOED) that shows that, in 2018, Utah’s manufacturing industry provided 7.0 percent of total state employment, paid 9.6 percent of overall earnings, and produced 11.0 percent of the state’s gross domestic product. The report also shows that despite a nationwide slowdown, Utah’s manufacturing industry continues to grow, though at a slower pace than some industries.

“The Kem C. Gardner Policy Institute was pleased for the opportunity to continue our ‘deep dives’ into important sectors of Utah’s economy,” said John Downen, deputy director of economic and public policy research at the Gardner Institute and co-author of the study. “Our analysts looked at manufacturing’s role in jobs, earnings, and GDP; how we compare with other states; manufacturing in rural Utah; and the demographics of production workers. The analysis revealed a very diverse industry, with establishments in all major types of manufacturing, from food and clothing to transportation equipment and electronics.”

In 2018, the total economic impacts of Utah’s manufacturing industry, both indirect and induced, included 427,980 jobs, $26.4 billion in earnings, and $44.0 billion in GDP. Overall, manufacturing supports one-fifth of all Utah jobs and one-quarter of Utah’s total GDP and earnings. The estimated total net fiscal impact is $605.9 million in state operating revenues. Much of these effects are concentrated in Salt Lake County and the urban Wasatch Front.

“The recent report released by the Gardner Institute demonstrates the significant contributions the manufacturing industry makes to Utah’s dynamic and strong economy,” said Ryan Starks, managing director of Business Services at the Governor’s Office of Economic Development. “Utah’s manufacturing industry is a crucial component of the state’s economic health and prosperity, and supports one-fifth of all jobs in the state.”

Highlights from the report include the following:

  • Employment — Manufacturing provides 143,461 jobs in Utah, the state’s fifth-largest industry. Approximately two-thirds of Utah manufacturing jobs are in durable goods. Manufacturing employment has grown 0.8 percent annually since 2008 but is outpaced by non-manufacturing industries’ 2.1percent yearly growth.
  • Earnings — In 2018, Utah’s manufacturing sector paid $10.4 billion, the third-largest in the state. Average earnings in the manufacturing industry rank fourth at $72,565, 38.6 percent higher than the statewide average for all industries. Manufacturing earnings have grown an average of 1.4 percent per year, slower than the rest of Utah’s economy but much faster than the 0.2 percent national manufacturing growth rate.
  • Gross Domestic Product — At $19.6 billion in 2018, manufacturing is Utah’s third-largest source of GDP and the second-largest private sector industry. Manufacturing GDP has grown an average of 2.0% annually in Utah, twice the national rate.
  • Workforce Demographics — Compared with other occupations in the state, women are underrepresented in production jobs. More than twice-as-many men are employed in production occupations as women. Minorities are overrepresented in production occupations, with over one-third of production workers identified as non-White or Hispanic. The largest minority among production workers is Hispanics at 27.0 percent.

The report focuses on the manufacturing industry as classified by the North American Industry Classification System (NAICS). Manufacturing is defined as “an industry made up of establishments that engage in the mechanical, physical, or chemical transformation of materials, substances, or components into new products.”

“Manufacturing is the engine that drives Utah’s economy,” said Todd Bingham, president of the Utah Manufacturers Association “With one of the highest wages and employment factors in Utah, the manufacturing industry provides high wages, creates opportunities for families, helps build communities and improves Utahns’ quality of life.”

The full report is now available online.

About Utah Governor’s Office of Economic Development

Under the direction of Gov. Gary Herbert, the Utah Governor’s Office of Economic Development (GOED) provides resources and support for business creation, growth and recruitment, and helps drive increased tourism, film production and outdoor recreation in the state. Utilizing state resources and private sector contracts, GOED administers programs in economic areas that demonstrate the highest potential for development. Learn more at business.utah.gov or by calling (801) 538-8680.

About Kem C. Gardner Policy Institute

The Kem C. Gardner Policy Institute serves Utah by preparing economic, demographic, and public policy research that helps the state prosper. We are Utah’s demographic experts, leaders on the Utah economy, and specialists in public policy and survey research. We are an honest broker of INFORMED RESEARCH, which guides INFORMED DISCUSSIONS, and leads to INFORMED DECISIONS™. For more information, please visit gardner.utah.edu or call 801-587-3717.

About David Eccles School of Business

The Eccles School is synonymous with ‘doing.’ The Eccles experience provides world-class business education with a unique, entrepreneurial focus on real-world scenarios where students put what they learn into practice long before graduation. Founded in 1917 and educating more than 6,000 students annually, the University of Utah David Eccles School of Business offers nine undergraduate majors, four MBAs, eight other graduate programs, a Ph.D. in seven areas, and executive education curricula. The School is also home to 12 institutes, centers, and initiatives, which deliver academic research and support an ecosystem of entrepreneurship and innovation. For more information, visit Eccles.Utah.edu or call 801-581-7676.