To gauge critical significance of advanced manufacturing industries on economic contribution in Saudi and American market

https://doi.org/10.5281/zenodo.19684920

Abstract

In this paper, the contribution of advanced manufacturing industries to the economic development and competitiveness of the United States and Saudi Arabia are assessed in a quantitative manner relying on the latest data (2020-2026). The findings indicate that manufacturing comprises approximately 9.5 per cent of the GDP in the United States and the overall output is approximately 2.95 trillion and Saudi Arabia has a greater relative contribution of 15.57 per cent, which demonstrates that the country has been diversifying. According to an employment study, manufacturing occupies 8.4 percent of total number of employees in the United States (approximately 12.6 million employees) and 7.1 percent in Saudi Arabia and unemployment in Saudi Arabia is gradually declining at a rate of about 3.5 percent. The United States has a technological gap in that high-tech manufacturing constitutes 41% of total manufacturing as compared to 18% in Saudi Arabia. Similarly, in the US, the R&D expenditure is 3.5% GDP that is way higher than Saudi Arabian expenditure of 0.9 indicating a more powerful capability to innovate. Manufactured goods are approximately 62 percent of total exports of the United States in export statistics as compared to Saudi Arabia which is at a lower 24 percent as it is an oil dependent country. The trends in industrial growth also indicate that the United States has a modest growth rate of 0.5% as compared to the high rate of 8.9% in Saudi Arabia, which indicates high industrial growth. Overall, the results of the research suggest that high-technology manufacturing is one of the effective methods to enhance productivity, create jobs, and make a country competitive, and the United States is technologically developed, but Saudi Arabia has a large growth potential because of the diversification policies.