Manufacturing is an integral part of the Illinois economy. While it accounts for 12.1% of the State’s GDP and 7.8% of total employment, it also impacts many other sectors of the economy. Manufacturers also spend millions of dollars on goods and services from local suppliers, which in turn supports addiƟonal jobs and business sales. In addiƟon, manufacturing workers, as well as the employees of related suppliers, spend their earnings on food, housing, ransportaƟon, healthcare, entertainment, and other consumer goods in their communiƟes. When these factors are taken into account, manufacturing contributes 24.7% of Illinois’ total GDP and supports one in five jobs.

1. Source: CGS analysis of data generated by IMPLAN, 2016.
Economic Impact Categories
DIRECT
Jobs,wagesandoutputsourceddirectly
to themanufacturingsector
INDIRECT
Impactof themanufacturingsector’s
suppliersandvendors
INDUCED
Impactof manufacturingemployee’s
householdspendingonthe economy
TOTAL
Sumof direct,indirectandinducedimpacts
+
+
=
Made in Illinois
The Economic Contribution of Manufacturing
Illinois Manufacturing Operations (2016)
INDUCED
INDIRECT
DIRECT
TOTAL
Employment
Impacts
Labor Income
Impacts
Output (Sales)
Impacts
530,293
472,340
590,018
1,592,652
INDIRECT
DIRECT
TOTAL
$33.8 B
$51.0 B
$110.8 B
INDUCED
INDIRECT
DIRECT
TOTAL
$75.1 B
$91.8 B
$304.2 B
$471.1 B
INDUCED
$26.0 B
$54.1 B
INDIRECT
27.6%
INDUCED
23.5%
$46.5 B
Manufacturing is an integral
part of the Illinois economy.
While it accounts for 12.1% of
the State’s GDP and 7.8% of
total employment, it also
impacts many other sectors of
the economy.
Manufacturers also spend
millions of dollars on goods
and services from local
suppliers, which in turn
supports addi�onal jobs and
business sales. In addi�on,
manufacturing workers, as well
as the employees of related
suppliers, spend their earnings
on food, housing,
ransporta�on, healthcare,
entertainment, and other
consumer goods in their
communi�es.
When these factors are taken
into account, manufacturing
contributes 24.7% of Illinois’
total GDP and supports one in
five jobs.
DIRECT
48.9%
$95.7 B
Manufacturing’s total contribu�on to the Illinois
economy (GDP) in 2016 was over $196 billion; 24.7% of
the total GDP of the State.
Manufacturing’s total contribu�on to the Illinois
economy (GDP) in 2016 was over $196 billion; 24.7% of
the total GDP of the State.

2. Made in Illinois
The Economic Contribution of Manufacturing
Key Employment Impacts
Industry Descrip�on
Wholesale trade
Management of companies & enterprises
Truck transporta�on
Employment services
Grain farming
Services to buildings
Market research; professional, scien�fic & technical services
Real estate
Jobs
75,900
41,400
28,800
16,000
15,200
14,700
13,200
11,000
Industries experiencing the greatest indirect employment impacts...
Industries experiencing the greatest induced employment impacts...
Industry Descrip�on
Hospitals, physicians & related healthcare services
Ea�ng & drinking establishments
Real estate
General merchandise retailers
Food & beverage stores
Wholesale trade
Personal care services
Individual & family services
Jobs
82,200
66,400
21,900
16,900
15,000
12,600
11,400
11,300
The Multiplier Effect
For every 10 jobs created or retained
by Illinois manufacturers…
… another 17 jobs are supported in
other industries such as
transporta�on, healthcare, business
services and retail trade.
... a mul�plier of
2.70
Leading Manufacturing Clusters by Employment
Industry Descrip�on
Fabricated metal products
Food products
Machinery
Miscellaneous manufacturing
Chemical products
Plas�cs & rubber products
Transporta�on equipment
Electrical equipment, appliance, & components
Jobs
90,900
90,800
71,500
44,000
43,600
42,500
41,900
35,200
Employment (Jobs) – An employee is someone who enters into an agreement formal or informal, to perform work
in return for compensation in cash or in kind. Note: job numbers have been rounded to the nearest hundred.

3. Made in Illinois
The Economic Contribution of Manufacturing
Key Output Impacts
Industry Descrip�on
Wholesale trade
Management of companies & enterprises
Truck transporta�on
Grain farming
Electric power transmission & distribu�on
Real estate
Rail transporta�on
Lessors of non-financial intangible assets
Output
$19.9 B
$10.8 B
$4.7 B
$3.8 B
$2.9 B
$2.7 B
$2.0 B
$2.0 B
Industries experiencing the greatest indirect output impacts...
Industries experiencing the greatest induced output impacts...
Industry Descrip�on
Hospitals, physicians & related healthcare services
Owner-occupied dwellings
Real estate
Ea�ng & drinking establishments
Wholesale trade
Insurance carriers
Monetary authori�es & depository credit intermedia�on
Other financial investment ac�vi�es
Output
$9.4 B
$9.2 B
$5.2 B
$4.3 B
$3.3 B
$2.5 B
$2.4 B
$2.0 B
The Multiplier Effect
… supports an addi�onal $54.90
of output in other industries.
a mul�plier of
1.55
Leading Manufacturing Clusters by Output per Worker
Output is the value of an industry’s production. For the manufacturing
sector this is includes sales plus or minus any change in inventory.
Industry Descrip�on
Petroleum and coal products
Chemical products
Beverage and tobacco products
Transporta�on equipment
Food manufacturing
Primary metals
Machinery
Computer & electronic products
Output per Worker
$3,716,400
$1,081,800
$796,400
$714,200
$650,800
$531,400
$493,500
$409,900
Every $100 in output generated
by Illinois manufacturers…

4. Made in Illinois
The Economic Contribution of Manufacturing
Value-Added in the IMPLAN framework is the same as the official measure of “Gross Domestic Product” or “GDP” at the national or state
level. In contrast to the concept of output, it represents the difference between the value of goods and services purchased as production
inputs and the value of the goods and services produced.
Key Value-Added Impacts
Industry Descrip�on
Wholesale trade
Management of companies & enterprises
Truck transporta�on
Real estate
Monetary authori�es & depository credit intermedia�on
Adver�sing, public rela�ons & related services
Lessors of non-financial intangible assets
Maintenance & repair of nonresiden�al structures
Value-Added
$14.2 B
$5.9 B
$2.2 B
$2.2 B
$1.4 B
$1.2 B
$1.0 B
$1.0 B
Industries experiencing the greatest indirect value-added impacts...
Industries experiencing the greatest induced value-added impacts...
Industry Descrip�on
Owner-occupied dwellings
Hospitals, physicians & related healthcare services
Real estate
Wholesale trade
Insurance carriers
Ea�ng & drinking establishments
Monetary authori�es & depository credit intermedia�on
Legal services
Value-Added
$6.2 B
$4.0 B
$3.7 B
$2.4 B
$1.7 B
$1.7 B
$1.5 B
$0.9 B
The Multiplier Effect
Every $100 in value-added created
by Illinois manufacturers…
a mul�plier of
2.05
… supports an addi�onal $105 of
value-added in other industries.
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $
Top Manufacturing Sub-Sectors by 2016 Value-Added
Industry Descrip�on
Pharmaceu�cal prepara�ons
Petroleum refineries
Construc�on machinery
Prin�ng
Miscellaneous plas�cs products
Wet corn milling
Automobiles
$9.4 B
$6.2 B
$4.9 B
$2.6 B
$2.4 B
$2.2 B
$1.9 B
Total
Value-Added

5. Made in Illinois
The Economic Contribution of Manufacturing
Labor Income represents all forms of employment income, including wages and salaries and all benefits and employer
paid payroll taxes, as well as proprietor income.
Key Labor Income Impacts
Industry Descrip�on
Wholesale trade
Management of companies & enterprises
Truck transporta�on
Management consul�ng services
Market research; professional, scien�fic & technical services
Adver�sing, public rela�ons & related services
Securi�es & commodity contracts & brokerage services
Accoun�ng, tax prepara�on, bookkeeping & payroll services
Labor income
$7.1 B
$5.6 B
$1.7 B
$1.0 B
$1.0 B
$0.8 B
$0.8 B
$0.7 B
Industries experiencing the greatest indirect labor income impacts...
Industries experiencing the greatest induced labor income impacts...
Industry Descrip�on
Hospitals, physicians & related healthcare services
Ea�ng & drinking establishments
Wholesale trade
Real estate
Monetary authori�es & depository credit intermedia�on
Junior colleges, colleges, universi�es & professional schools
Religious organiza�ons
Food & beverage stores
Labor Income
$5.5 B
$1.7 B
$1.2 B
$0.7 B
$0.7 B
$0.7 B
$0.5 B
$0.5 B
The Multiplier Effect
Every $100 of labor income
generated by Illinois manufacturers…
a mul�plier of
2.08
…supports an addi�onal $108
of labor in other industries.
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
Top Manufacturing Sub-Sectors by 2016 Employee Earnings
Industry Descrip�on
9.9%
5.7%
14.2%
5.7%
4.0%
6.8%
-0.9%
Chemicals
Petroleum & coal products
Miscellaneous manufacturing
Machinery
Computer & electronic products
Electrical equipment, appliances, & components
Primary metals
$111,066
$107,829
$87,240
$75,507
$69,909
$69,909
$65,226
Average
Earnings
3-Year
Trend
Source: Longitudinal Employer-Household Dynamics (LEHD) program, Center for Economic Studies, U.S. Census Bureau.

6. Made in Illinois
The Economic Contribution of Manufacturing
Methodology
This research brief u�lized the best available data to summarize the economic impact of the manufacturing sector in Illinois for 2016 calendar year. The impacts were calculated using
IMPLAN, a popular Input-Output sta�s�cal model. The direct employment and other figures for manufacturing sector were derived from the 2016 IMPLAN model, as were the indirect
(business-to-business spending) and induced (household spending of employees) impacts. The model was adjusted to eliminate double coun�ng
in the es�mates of indirect and induced effects. As is the case with all econometric models, there are certain limita�ons that should be c
onsidered when reviewing results.
Further Information
Brian L. Harger
Research Associate
Center for Governmental Studies
Northern Illinois University
148 North Third Street
DeKalb, Illinois 60115
815.753.0934
bharger@niu.edu
h�ps://www.cgs.niu.edu
h�ps://www.linkedin.com/in/brianharger/
h�ps://www.slideshare.net/BrianHarger/
The Center for Governmental Studies (CGS) at Northern Illinois University (NIU)
provides exper�se that helps decision-makers implement efficient, sustainable,
and cost-effec�ve approaches to social, economic, and informa�on manage-
ment issues. Founded in 1969, CGS assembles interdisciplinary teams to work
with government at all levels, non-profit organiza�ons, school districts, commu-
nity colleges, park districts, library districts, land conserva�on districts, land
developers, health care agencies, and u�li�es. CGS projects focus on five
outcomes:
1) Reinvigora�ng local economies
2) Suppor�ng local governments
3) Promo�ng balanced communi�es
4) Informing sound decision-making
5) Reskilling the workforce
About CGS