The impression that the U.S. is no longer on top of the global manufacturing game is reasserted over and over by our day-to-day shopping experiences. Clothes, electronics, toys, and household goods are likely to be made outside the country, and yes, probably in China. We can’t be blamed for thinking America no longer produces anything useful. However, our daily experience tells us only one side of the story. After all, most of us are never in the market for a communication satellite or an aircraft carrier, big ticket items that are very likely to be made in America. The U.S. may not be making many of our $20 toys, but it is certainly manufacturing our planes.

Regardless of what the prevailing perceptions are, the simple truth is that the United States hasn’t lost its lead as the manufacturing power. It is still the world’s number one producer. Japan comes in second ahead of China, which takes a precarious third place. To top it off, brand U.S.A. continues to get high marks. American products are thought of as safe and reliable in much of the world, something China can by no means claim.

Truth in Numbers

The U.S. makes some 5 trillion dollars worth of goods, and the manufacturing sector still employs 13 million people across the country, according to NPR. The country has less than 5 percent of the world’s population but actually manufactures 20 percent of the world’s goods. These numbers are impressive by any standard. American manufacturers sell their products all over the world. In 2007 alone, the U.S. rang up over $200 billion in sales of aircraft and other high tech goods, and $80 billion in cars and parts, according to the Associated Press. Just one heavy machinery company, Deere & Co., recorded $16.5 billion in sales of farming equipment. The U.S. produces two and a half times more than China in dollar value.

The Role of Small and Medium-sized Companies

Those who work for small and medium-sized firms may be wondering where they fit into this manufacturing picture. In 2007, some 266,457 American companies exported merchandise, according to the U.S. Department of Commerce. A staggering 97 percent of these companies were small and medium-sized enterprises (SMEs). That is, 259,381 SMEs in total, more than doubling from the 108,026 that were exporting in 1992. Among these companies, 29 percent (75,220) were manufacturing firns.

Looking Ahead

Much has been said about the challenges small and medium-sized American companies face from global competition. It is easy to overlook some of the advantages being smaller can confer. Well-run, forward-looking SMEs can react better to the markets by repositioning themselves to ride new trends much faster than big, bureaucratic companies. They can also customize their services to a greater extent to fit individual customers. In addition, they can expand into small niche markets that are often ignored by multinationals.

That said, to ensure long-term existence and to remain competitive, all American manufacturing companies, especially small and medium-sized, need to raise their productivity, continue to innovate, and improve their products. To do this, SMEs must maintain a well-trained workforce, keep channels for customer feedback open, and foster an environment where collaboration with customers can thrive.