Education & Distance Learning Enthusiasts- Why manufacturing matters; Study released by Raytheon

Home | Education & Distance Learning Articles | Article

Why manufacturing matters; Study released by Raytheon

Business Wire - September 22, 1995

LEXINGTON, Mass.--(BUSINESS WIRE)--Sept. 22, 1995-- Raytheon Company released a study today, entitled Manufacturing in Massachusetts: Why Does it Matter? How Have We Done? Where Do We Stand? that spells out the importance of manufacturing to the Massachusetts economy. The study also concludes that a competitive manufacturing sector in Massachusetts is an achievable goal and is vital for a healthy, diversified Massachusetts economy.

The study, which was underwritten by Raytheon, was conducted by Professor Richard K. Lester, Director of the MIT Industrial Performance Center; Andrew Bernard, Assistant Professor of Economics at MIT; Frank Levy, Daniel Rose Professor of Urban Economics at MIT; and Micky Tripathi, research staff member at the MIT Industrial Performance Center, all of whom were acting in a capacity as consultants to Raytheon.

Some highlights from the study:

o One measure of the importance of manufacturing is the number of jobs it provides. Currently, manufacturing employment in the Commonwealth stands at about 450,000. More than 200,000 manufacturing jobs have been lost over the past decade, but 15% of the Massachusetts workforce is still employed in the manufacturing sector-- about the same proportion as for the U.S. as a whole.

o On average, manufacturing jobs in Massachusetts pay significantly higher wages than jobs in other sectors. The wage premium for manufacturing workers applies across the educational spectrum, from the state's most highly educated workers, i.e., those with graduate degrees, to those with a high-school diploma or less.

For example, wages for young male blue-collar workers are 4-15% higher in manufacturing than in other industries. For young female workers the manufacturing wage premium is higher still.

o Moreover, manufacturing jobs are more likely to be filled by workers without college degrees than in other industries. This is especially true of women workers: more than 50% of the female workforce in manufacturing has no college education, compared with about 30% in other industries.

o Over time, the proportion of Massachusetts school leavers earning college degrees will gradually increase, but even today only 50% of high-school graduates plan to obtain a 4-year college degree, and for the foreseeable future tens of thousands of young men and women without college degrees will enter the Massachusetts labor market each year looking for work.

One of the most important contributions of manufacturing to the state economy is its ability to provide relatively well-paying jobs to this important segment of our population, especially at a time when other attractive employment opportunities for this group are growing scarcer.

o Manufacturing industry is also at the center of much of the research and development in the state. The Massachusetts economy is actually the most R&D - intensive in the nation (aside from New Mexico). This has helped to give our economy its distinctive character and dynamism.

Many associate the R&D-intensive nature of the Massachusetts economy with its world-class universities and medical research facilities and the federal funds they attract. But, in fact, about half of the state's R&D funds come from manufacturing industry, and manufacturing firms themselves conduct well over half of all R&D that is performed here. A significant fraction of the R&D is closely linked to downstream manufacturing operations. If manufacturing jobs leave Massachusetts, the R&D jobs will probably follow.

Dr. Richard Lester, who led the study effort, is the founder and director of the MIT Industrial Performance Center and a professor of nuclear engineering at MIT, where he has taught since l979. His current research is focused on innovation and the organization and management of complex technical enterprises. His recent publications include Made in America: Regaining the Productive Edge, a report of the MIT Commission on Industrial Productivity, of which he was the executive director. Inquiries concerning the report can be directed to Dr. Lester at (617) 253-7704. -0-

Raytheon Company, headquartered in Lexington, Mass., is a $12 billion international, high technology company which operates in four businesses: commercial and defense electronics, engineering and construction, aviation, and major appliances.

CONTACT: Raytheon

Elizabeth Allen, 617/860-2141

If you would like to discuss any of the issues raised in this article with hundreds of other Education & Distance Learning enthusiasts from around the world, please feel free to visit the discussion forums & post a message.

Discuss this article in the discussion forums now.

Popular Education & Distance Learning Discussions From The Past

Ahworth College! Any Graduates Ever!!!!??????!!!!?!??!?!?!??please Respond!!!!???? (10 posts)
by quia123 - Last post on: 09-17-03 09:17
JUST WONDERING IF ANY ONE HAS EVER FINISHED WITH ASHWORTH COLLEGE....I UNDERSTAND THAT THEIR detc.ORG ACCREDITED...AND SOMEWHAT RECOGNIZED...I WANT TO START AND 3,200 IS MONEY AND i DONT WANT TO LOOSE IT FOR NOTHING! THANKS! --- View this thread: http://www.online-college.info/article1217.html qui... (Read More)

new healthcare website (1 posts)
by healthline - Last post on: 03-05-04 20:27
This is a new website. Please have a look and leave feedback. http://ahealthline.tripod.com thanks ... (Read More)

Thinking about going back to school - do I have a chance? (2 posts)
by Erin - Last post on: 02-08-04 15:13
Hi. I've been doing my pre-requisites for a post-baccalaureate nursing program, but for various reasons I'm thinking about applying to medical school instead. I'm wondering, though, if I'd have a chance or if I'd be wasting my time. I'm 25, and I earned a B.A. in French when I was 21. My gra... (Read More)

You Are So Full Of SHIT! (6 posts)
by isue4you - Last post on: 12-22-03 16:13
I have visited the aed boards for several years, dating back to the mid-90's, and have finally reached my limit of bullshit! I am sick and damn tired of the fucking ego maniacs, the liars, the fuckheads that espouse baseless opinions, not to mention the losers with a computer and shrunken test... (Read More)

You must register before posting in the Education & Distance Learning discussion forums. It's free & only takes a few seconds. Please also remember that no advertising is allowed...
Enter The Forums Here