New Manufacturing Marketing Guide 2026

Last Updated: March 22, 2026

85+ Small Manufacturing Business Statistics for 2025-2026

Small business manufacturers are the backbone of American industry. They represent 98% of all US manufacturing firms, yet most have fewer than 50 employees. These establishments in the U.S. employ 4.8 million workers, navigate complex supply chains, and face unique challenges from tariffs to technology adoption that larger competitors can absorb more easily. Manufacturing in the United States depends on these smaller firms to drive innovation, create jobs, and anchor local economies.

We compiled over 85 data points from the SBA Office of Advocacy, Census Bureau, Bureau of Labor Statistics, NAM, NIST MEP, the Federal Reserve Small Business Credit Survey, and other authoritative sources. Every statistic links to its original source so you can verify the data and cite it in your own work.

98%

Of US manufacturers are small businesses (under 500 employees)

235,088

Small manufacturing firms in the US (2022 Census data)

4.8M

Workers employed by small manufacturers

What's in This Report

Firm Size and Distribution

The US manufacturing sector is overwhelmingly made up of small businesses. While large companies with 500+ employees generate most of the sector's revenue and employ most of its workers, the vast majority of manufacturing firms are small operations. Understanding the size distribution of these businesses is critical for policymakers, suppliers, and anyone marketing to the manufacturing industry.

1. There were 239,265 manufacturing firms in the United States in 2022. All but 4,177 of them (98.3%) were small businesses with fewer than 500 employees. — US Census Bureau, Statistics of US Businesses

2. Small manufacturing firms represent 98% of all US manufacturers, according to the SBA Office of Advocacy's 2025 manufacturing statistics report. — SBA Office of Advocacy

3. Approximately 75% of US manufacturing firms have fewer than 20 employees, making micro-manufacturers the most common type of manufacturing business. — NAM / Census Bureau

4. 93.1% of manufacturing firms have fewer than 100 employees. Only 6.9% of manufacturers employ 100 or more workers. — NAM / Census Bureau

5. Despite making up only 1.7% of manufacturing firms, companies with 500+ employees account for 59.1% of all manufacturing employment. — NAM / Census Bureau

6. Small manufacturers (under 500 employees) employed 4.8 million workers, representing about 40.9% of total manufacturing employment. — SBA Office of Advocacy

7. Small businesses across all industries represent 99.9% of all US businesses. Manufacturing's 98% small business share is slightly lower than the national average due to the capital-intensive nature of the sector. — SBA Office of Advocacy, 2026 FAQ

8. In 2022, there were 5.52 million firms with 1 to 499 employees across all industries in the US, up from 5.38 million in 2021. — US Census Bureau, Business Dynamics Statistics

9. The SBA defines a "small" manufacturer as having fewer than 500 employees, though size standards vary by NAICS code and some manufacturing subsectors use revenue-based thresholds. — SBA Size Standards

Manufacturing Firms by Size Category (2022)

Firm Size (Employees) Share of Firms Share of Employment
1-19 employees ~75% ~8%
20-99 employees ~18% ~15%
100-499 employees ~5.2% ~18%
500+ employees ~1.7% ~59.1%

Source: US Census Bureau, SUSB 2022 / NAM

Employment and Workforce

Small manufacturers punch above their weight in job creation. While large firms dominate total headcount, employment in the sector from small and medium-sized manufacturers is often the largest source of private jobs in their communities, particularly in rural areas. Recent data shows the sector pays well compared to other small business categories, even as inflation and economic uncertainty create strategic challenges for business owners trying to manage contractor costs and consumer spending trends that affect demand.

10. Total US manufacturing employment was approximately 12.59 million in January 2026, gaining 5,000 employees from December 2025. — Bureau of Labor Statistics

11. Manufacturing employees earned an average of $106,691 per year including pay and benefits in 2024, compared to $90,601 for all private nonfarm industries. — Bureau of Economic Analysis

12. Average hourly earnings for all manufacturing employees reached $36.07 in December 2025, up 4.4% year-over-year. — Bureau of Labor Statistics

13. Production and nonsupervisory manufacturing workers earned $29.51 per hour on average in December 2025, with 4.2% growth over the prior 12 months. — Bureau of Labor Statistics

14. There were 433,000 manufacturing job openings in December 2025, up from 399,000 in November. This is in line with the pre-pandemic average of 432,000 (2017-2019). — Bureau of Labor Statistics, JOLTS

15. For every one manufacturing worker, 5 additional workers are added to the broader US economy through indirect and induced employment effects. — NAM (2024 IMPLAN data)

16. 95% of manufacturing employees were eligible for employer-provided health insurance in 2025, the highest percentage of any industry. The national average across all firms is 80%. — Kaiser Family Foundation

17. The average annual cost of a family health plan in manufacturing was $25,428 in 2025, below the all-industry average of $26,993. — Kaiser Family Foundation

18. California leads all states in manufacturing employment with 1,181,588 workers, followed by Texas (853,346), Ohio (678,989), Michigan (590,386), and Pennsylvania (563,035). — US Census Bureau

Revenue and Financial Performance

Small manufacturers operate on tighter margins than their larger competitors but contribute significantly to the overall US manufacturing output. Understanding the financial landscape helps small manufacturers benchmark their performance and identify growth opportunities.

19. US manufacturing contributed $2.951 trillion in value-added output (annual rate) in Q3 2025, up from $2.860 trillion in Q2 2025. — Bureau of Economic Analysis

20. Manufacturing accounted for 9.5% of total US GDP by value added in Q3 2025. — Bureau of Economic Analysis

21. For every $1.00 spent in manufacturing, there is a total impact of $2.69 on the overall US economy, including indirect and induced impacts. This is one of the largest sectoral multipliers. — NAM (2024 IMPLAN data)

22. For every $1.00 earned in direct manufacturing labor income, $4.33 in labor income is earned across the overall US economy. — NAM (2024 IMPLAN data)

23. Revenue and employment growth for small businesses held steady between the 2024 and 2025 Fed surveys. However, firms were slightly more likely to report revenue decreases than increases in the prior 12 months. — Federal Reserve Small Business Credit Survey 2025

24. Expectations for revenue growth among small businesses fell to their lowest level since the 2020 survey. The revenue expectations index dropped six points year-over-year, from 39 to 33. — Federal Reserve Small Business Credit Survey 2025

25. Employment expectations for small businesses also declined, falling three points to 23 on the expectations index, the lowest since 2020. — Federal Reserve Small Business Credit Survey 2025

26. Rising costs of goods, services, and wages was the most common financial challenge for small businesses, with 77% of firms reporting rising costs or tariff-related cost increases or both. — Federal Reserve Small Business Credit Survey 2025

27. US-manufactured goods exports totaled more than $1.7 trillion in 2025, rebounding after pandemic-era weakness. — NAM

Survival Rates and Business Growth

Manufacturing businesses have some of the highest survival rates of any industry. The capital-intensive nature of starting a manufacturing operation means that founders tend to be better prepared and better funded than in lower-barrier industries. However, the 10-year outlook still shows significant attrition.

28. Manufacturing has one of the highest 10-year business survival rates at 43.6%. Only mining (51.4%) and utilities (45.7%) had higher rates among businesses started in 2013 and tracked through 2023. — Bureau of Labor Statistics, Business Employment Dynamics

29. Across all private-sector industries, only 34.7% of establishments born in 2013 were still operating in 2023, making manufacturing's 43.6% rate significantly above average. — Bureau of Labor Statistics

30. The first-year failure rate across all industries is 20.4%. The survival rate drops most sharply in the first year, falling 20.4 percentage points from the establishment's birth year. — Bureau of Labor Statistics

31. After 5 years, 49.4% of businesses across all industries have closed. Manufacturing businesses consistently outperform this benchmark. — Bureau of Labor Statistics

32. After 10 years, 65.3% of all businesses have failed. Manufacturing's 56.4% failure rate over the same period is nearly 9 percentage points better than average. — Bureau of Labor Statistics

33. New business applications across all industries increased 8.2% between 2024 and 2025. Manufacturing applications represent a small but growing share of total applications. — US Census Bureau, Business Formation Statistics

34. Between September 2024 and August 2025, 7.6% of small businesses closed across all industries. — SBA Office of Advocacy, 2026

35. Reaching customers and growing sales was the most commonly reported operational challenge for small businesses in 2025, followed by hiring or retaining qualified staff. — Federal Reserve Small Business Credit Survey 2025

10-Year Business Survival Rates by Industry (2013-2023)

Industry 10-Year Survival Rate
Mining 51.4%
Utilities 45.7%
Manufacturing 43.6%
All Private Sector (Average) 34.7%

Source: Bureau of Labor Statistics, Business Employment Dynamics

Funding and Capital Access

Access to capital is one of the biggest challenges for small manufacturers. Equipment purchases, facility expansions, and inventory requirements all demand significant upfront investment. The SBA's new MARC loan program specifically targets small manufacturers, and the Federal Reserve's surveys show ongoing challenges in securing affordable financing.

36. In September 2025, the SBA launched its first-ever loan program dedicated to manufacturers, the 7(a) Manufacturer's Access to Revolving Credit (MARC) Loan Program. — US Small Business Administration

37. 60% of small businesses applied for financing in the 12 months prior to the 2025 Fed survey. The most common reasons were meeting operating expenses (56%) and pursuing expansion or new opportunities (46%). — Federal Reserve Small Business Credit Survey 2025

38. Only 42% of financing applicants received the full amount they sought. Another 36% received some or most of their requested amount, while 22% received nothing. — Federal Reserve Small Business Credit Survey 2025

39. 86% of small businesses use financing on a regular basis, with credit cards and loans being the most common products. — Federal Reserve Small Business Credit Survey 2025

40. Nearly 45% of small businesses with employees seek loans from large banks, compared to 37% from nonbank lenders and 28% from small banks. — US Treasury Department, January 2025

41. Applicants at small banks were most likely to be fully approved at 57%, compared to lower approval rates at large banks and online lenders. — Federal Reserve Small Business Credit Survey 2025

42. Only 14.6% of small business loan applications were approved by big banks, according to the Small Business Credit Survey. — Federal Reserve Small Business Credit Survey

43. The share of small businesses using online fintech lenders for financing has grown from 17% in 2020 to 29% in 2025. — Federal Reserve Small Business Credit Survey 2025

44. 60% of borrowers at online lenders reported that actual borrowing costs were higher than expected, compared to 37% at large banks and 32% at small banks. — Federal Reserve Small Business Credit Survey 2025

45. The share of small businesses with no outstanding debt (31%) has grown since 2020 (21%), returning to pre-pandemic levels. — Federal Reserve Small Business Credit Survey 2025

46. Of firms with debt, 59% used a personal guarantee to secure it, while 51% used business assets. — Federal Reserve Small Business Credit Survey 2025

47. The average SBA loan amount across all industries was $479,685 in 2023. — Lendio / SBA data

Tariffs and Trade Challenges

Tariffs have become one of the defining challenges for small manufacturers in 2025 and 2026. While large manufacturers have the scale and resources to absorb tariff-related cost increases, small manufacturers are disproportionately affected. The data shows a stark divide between how small and large manufacturers are handling trade policy uncertainty.

48. 72.8% of small and medium-sized manufacturers (under 500 employees) reported paying tariffs on inputs in 2025, compared to 97% of large manufacturers. — NAM Q4 2025 Outlook Survey

49. Tariff-related cost challenges were most prevalent in retail (69%) and manufacturing (62%) industries, according to the 2025 Federal Reserve small business survey. — Federal Reserve Small Business Credit Survey 2025

50. More than 4 in 10 small businesses reported that increased costs associated with tariffs were a financial challenge in 2025. — Federal Reserve Small Business Credit Survey 2025

51. 48% of small businesses sourced at least some inputs from outside the US in 2024, while 14% sourced more than half of their inputs internationally. — Federal Reserve Small Business Credit Survey 2025

52. A large majority of firms with foreign inputs reported year-over-year price increases. 76% passed at least some costs on to customers, while 60% absorbed at least some of the increases. — Federal Reserve Small Business Credit Survey 2025

53. Only 13% of firms with foreign inputs switched to domestic suppliers, 8% changed to different foreign suppliers, and just 3% relocated production to the US. — Federal Reserve Small Business Credit Survey 2025

54. Among the top tariff concerns for manufacturers, 52.1% cited tariffs under IEEPA (International Emergency Economic Powers Act) and 50.0% cited Section 301 tariffs on China. — NAM Q4 2025 Outlook Survey

55. About 32% of firms significantly impacted by tariffs reported plans to reduce employment due to tariff concerns. — Federal Reserve Bank of Richmond

56. About one in five small businesses had sales to international customers in 2024. Firms were more likely to expect a decrease (40%) than an increase (16%) in 2025 international sales. — Federal Reserve Small Business Credit Survey 2025

Key Finding: Small Manufacturers and Tariffs

While 97% of large manufacturers paid tariffs on inputs in 2025, only 72.8% of small and medium-sized manufacturers did. However, small manufacturers are less able to absorb these costs, with 76% passing them to customers and 60% absorbing at least some costs directly, squeezing already tight margins.

Technology and AI Adoption

Technology adoption represents both an opportunity and a challenge for small manufacturers. While AI, automation, and digital tools can dramatically improve efficiency, the cost and complexity of implementation often put these technologies out of reach for the smallest firms. Recent surveys show a surprising level of AI adoption among small businesses broadly, though manufacturing-specific adoption varies widely.

57. Nearly half of small businesses (46%) reported that their business or employees currently use AI, according to the 2025 Federal Reserve Small Business Credit Survey. — Federal Reserve Small Business Credit Survey 2025

58. Small and medium-sized enterprises (SMEs) continue to lag behind larger firms in digital technology adoption, according to multiple 2025 research studies. Capital constraints and limited IT infrastructure are primary barriers. — ScienceDirect, 2024

59. AI-based workforce management is projected to be a core manufacturing capability by 2030, enabling companies to match worker skills to production needs in real time. — Deloitte 2025 Manufacturing Industry Outlook

60. The top manufacturing industries served by NIST MEP Centers include fabricated metal product manufacturing (17%), machinery manufacturing (11%), and food manufacturing (9%). — NIST MEP

61. Over 43% of MEP Center clients in FY 2024 represented advanced industries as defined by Brookings Institution criteria. — NIST MEP

62. Digital transformation in manufacturing SMEs is strongly influenced by IT infrastructure availability, existing innovation levels, and the technological context in which firms operate. — Journal of Innovation and Entrepreneurship, 2025

Workforce Challenges

The manufacturing workforce crisis hits small manufacturers particularly hard. While large companies can offer signing bonuses, tuition reimbursement, and comprehensive benefits packages, smaller firms often compete for the same talent with fewer resources. The skills gap, aging workforce, and perception challenges combine to create a persistent hiring problem.

63. By 2033, 3.8 million manufacturing jobs will likely be needed. An estimated 1.9 million of those roles are expected to go unfilled if the industry cannot attract more workers. — Deloitte / The Manufacturing Institute

64. Of the 3.8 million jobs needed, 2.8 million will come from retirements and 760,000 from industry growth. An estimated 230,000 additional jobs are expected from recent legislative actions including the CHIPS Act. — Deloitte / The Manufacturing Institute

65. In August 2025, there were approximately 409,000 unfilled manufacturing positions. — Deloitte

66. Attracting and retaining talent is the primary business challenge for more than 48% of manufacturers surveyed in NAM's Q2 2025 Outlook Survey. — NAM Manufacturers' Outlook Survey

67. Hiring or retaining qualified staff was the second most common operational challenge for small businesses in the 2025 Federal Reserve survey, after reaching customers and growing sales. — Federal Reserve Small Business Credit Survey 2025

68. The manufacturing sector averaged 12,613,000 employees during the pre-pandemic period (2017-2019). January 2026 employment of 12,590,000 is still slightly below that baseline. — Bureau of Labor Statistics

69. A shrinking US workforce may thwart manufacturing ambitions, with demographic headwinds making it harder to fill roles even as reshoring efforts accelerate. — Deloitte, January 2026

MEP and Government Support

The NIST Manufacturing Extension Partnership (MEP) is the primary federal program supporting small and medium-sized manufacturers. With centers in every state and Puerto Rico, the MEP National Network provides hands-on consulting, training, and technology implementation support. The results show measurable economic impact.

70. The MEP National Network helped manufacturers achieve $15 billion in new and retained sales in FY 2024. — NIST MEP

71. MEP clients reported $5 billion in new client investments in FY 2024. — NIST MEP

72. MEP Centers helped manufacturers achieve $2.6 billion in cost savings in FY 2024. — NIST MEP

73. Over 108,000 jobs were created or retained by manufacturers working with MEP Centers in FY 2024. — NIST MEP

74. Since 1988, the MEP National Network has generated an estimated $152.2 billion in new sales and $34.2 billion in cost savings, and has helped create and retain over 1.7 million jobs. — NIST MEP

75. The MEP National Network achieved a Net Promoter Score of 85.3, well above industry benchmarks. — NIST MEP

76. The top reasons manufacturers chose MEP Centers: staff expertise (60%), cost of service (36%), knowledge (30%), reputation of results (23%), and fair service (22%). — NIST MEP

77. Nearly 1,400 manufacturing experts at approximately 475 MEP service locations provide consulting and training to US manufacturers in every state and Puerto Rico. — NIST MEP

78. In FY 2024, 8,771 MEP clients completed the survey, representing a nearly 75% response rate. — NIST MEP

Industry Outlook

The forecast for small manufacturers in the months ahead is mixed. Reshoring efforts and new government programs are creating opportunities, but tariff uncertainty, rising costs, cash flow pressures, and workforce shortages are creating headwinds. Business owners who invest in technology, diversify their customer base, and build strong marketing pipelines will be best positioned for growth. Unemployment remains a key indicator of the broader labor market that affects hiring for manufacturing roles.

79. In 2023, 287,000 jobs were announced from reshoring and foreign direct investment combined, continuing a trend of record reshoring activity. — Reshoring Initiative / AllAmerican.org

80. The US goods trade deficit reached $1.27 trillion through January-November 2025, partially offset by a services surplus of $335.80 billion. — Joint Economic Committee / Census Bureau

81. Manufacturing value-added output increased for both durable goods (up to $1.576 trillion) and nondurable goods (up to $1.375 trillion) in Q3 2025. — Bureau of Economic Analysis

82. Small businesses were more likely to expect revenue decreases than increases in the 12 months following the 2025 Fed survey, a notable shift from pre-pandemic optimism levels. — Federal Reserve Small Business Credit Survey 2025

83. The SBA's Made in America Manufacturing Initiative committed to cutting $100 billion in red tape, promoting workforce development, and doubling 7(a) and 504 loan limits for manufacturers. — US Small Business Administration

84. US imports of goods and services grew 6.6% to a record $4.1 trillion in 2024, underscoring the continued demand for imported goods despite reshoring rhetoric. — Bureau of Economic Analysis

85. Taken alone, US manufacturing would be the 8th-largest economy in the world, with $2.91 trillion in value added in 2024. — Bureau of Economic Analysis / IMF

The Bottom Line

Small manufacturers are the foundation of US industry. They represent 98% of all manufacturing firms, employ 4.8 million workers, and play an outsized role in local economies across the country. But they face mounting pressures: tariffs are squeezing margins, 77% report rising costs, and revenue expectations have fallen to their lowest point since 2020.

The good news is that manufacturing businesses have among the highest survival rates of any industry (43.6% over 10 years versus the 34.7% average), marking a turning point where regulatory support and new government programs like the SBA MARC loan are specifically targeting small manufacturer needs. Consumer confidence also affects demand for manufactured goods downstream. The NIST MEP Network alone helped manufacturers achieve $15 billion in new and retained sales in FY 2024.

For small manufacturers looking to grow in 2026, the data points to three priorities: invest in technology adoption (46% of small businesses now use AI), diversify away from reliance on single markets or suppliers, and build a consistent lead generation pipeline to address the top operational challenge of reaching customers and growing sales.

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Cite This Resource

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Manufacturing Lead Generation. "85+ Small Manufacturing Business Statistics (2025-2026)." manufacturingleadgeneration.com, March 22, 2026. https://manufacturingleadgeneration.com/small-manufacturing-business-statistics/

Sources

This report draws from the following authoritative data sources. All statistics link to their original source within the text above.