Largest Manufacturing Subsector in the US (2025): Clear Answer and Data

You clicked to get a straight answer fast. Here it is: by the metric most economists use (value added/GDP), the largest manufacturing subsector in the United States is Chemical manufacturing (NAICS 325). If you mean “largest” by jobs, the picture changes-Food manufacturing (NAICS 311) and Transportation equipment (NAICS 336) battle for the top spot depending on the month and year. I’ll keep this simple, show the data logic, and give you a quick way to verify it yourself.

Before we jump into the details, here are the jobs you likely want to get done right now:

• Get a one-line, defensible answer you can put on a slide.
• See how the ranking shifts by metric: value added, jobs, shipments, exports.
• Know which sources to cite so your answer stands up in a meeting.
• Grab a quick data snapshot for 2023-2025 without wading through spreadsheets.
• Avoid the common trap of using “shipments” to claim “largest sector.”

TL;DR: the largest manufacturing subsector in the US

Short version you can quote with confidence:

• By value added (GDP contribution): Chemical manufacturing (NAICS 325) is the largest US manufacturing subsector. Source: U.S. Bureau of Economic Analysis (BEA), GDP by Industry, latest 2024/2025 releases covering 2023 data.
• By employment (number of workers): Food manufacturing (NAICS 311) and Transportation equipment (NAICS 336) are typically the top two; Food often edges out, but Transportation equipment can lead during production upswings. Sources: U.S. Bureau of Labor Statistics (BLS) CES and QCEW, 2024-2025.
• By shipments (gross sales/output): Petroleum and coal products (NAICS 324) often ranks first because refining has very high sales values when fuel prices are elevated. Source: U.S. Census Bureau, Annual Survey of Manufactures (ASM), latest available year.
• By exports: Chemicals and Transportation equipment usually trade places for #1 and #2 depending on aerospace cycles and commodity prices. Sources: U.S. Census Bureau, U.S. International Trade in Goods and Services; industry groups.
• Rule of thumb for “largest” in a report: use BEA value added unless your topic is workforce planning or logistics.

How to measure “largest” the right way (and prove it in 5 steps)

“Largest” only makes sense after you pick the yardstick. Here’s a quick, repeatable method that works for an analyst, a founder, or a student trying to nail a fact-check.

1. Pick the metric based on your goal.

   • If your question is macro (“Which sector drives US manufacturing?”), use value added (GDP contribution). That’s the standard in economics and policy.
   • If you care about jobs or site selection, use employment.
   • If you manage supply chains or sales targets, check shipments (gross output) and capacity/utilization.
   • If you’re looking at trade exposure, use exports and imports by NAICS.

2. Use NAICS “subsectors” (3-digit codes: 311-339). The word “subset” is vague. The clean, standard slice is NAICS 3‑digit. Examples: 311 Food, 325 Chemicals, 336 Transportation equipment.

3. Pull the top-line numbers from primary sources.

   • Value added: BEA GDP by Industry (Manufacturing breakdown). Look for “Chemical products” vs other subsectors. BEA often groups “Food, beverage, and tobacco products” together; if you need pure 311 vs 312, use supplemental tables or ASM.
   • Employment: BLS Current Employment Statistics (CES) for monthly trends; BLS QCEW for detailed annual county/state splits.
   • Shipments/gross output: Census Annual Survey of Manufactures (ASM); for monthly production trends, see the Federal Reserve G.17 Industrial Production index.
   • Trade: Census FT-900 and related data for exports/imports by NAICS.

4. Adjust for timing. Right now (2025), BEA’s latest detailed manufacturing value-added split generally covers 2023 with updates through 2024; BLS employment is current to last month; ASM lags by a year. When in doubt, state the reference year next to the number.

5. State the winner and the metric in one sentence. Example: “By value added (BEA, 2023), Chemicals (NAICS 325) is the largest US manufacturing subsector.” Then add a parenthetical for jobs if your audience will care.

Pro tips that save you from awkward corrections:

• Don’t use “shipments” to claim “largest sector” in a macro context. Refining (NAICS 324) looks massive on shipments because oil prices inflate revenue, but its value added share is much smaller.
• Watch category bundling. BEA sometimes groups “Food, beverage, and tobacco” as a single bucket. If someone shows that as #1, they might be mixing 311+312. Chemicals remains #1 when you compare at the 3-digit level.
• Employment vs GDP can point to different winners. Sectors with high automation (chemicals, semiconductors) deliver huge value with fewer people. Labor‑intensive sectors (food, fabricated metals) employ more but add less value per worker.
• Check revisions. BEA and BLS revise. If a stakeholder pushes back, make sure you’re quoting the latest vintage.

Data snapshot and examples you can use (2023-2025 context)

Below is a compact snapshot that matches how people argue about “largest.” Numbers are rounded and indicative. The point is the ranking and the logic, not the last decimal.

Why chemicals top the value-added list: value added strips out intermediate inputs (think: the crude oil, feedstocks, components you buy). It focuses on the new economic value created. Chemical plants add a lot of value with advanced processes, IP, and capital. That’s why chemicals punch above their weight even if headcount is lower.

Why food and transportation equipment dominate employment: these subsectors have large, distributed factory networks and complex assembly lines. Food plants are everywhere because they need to be close to farms and customers. Transportation has long supply chains that pull in a lot of labor-from body and trailer makers to aircraft assembly.

Why petroleum looks “largest” on some charts: if you look at shipments when oil prices are high, refinery revenues soar. But once you back out the cost of crude, the value added shrinks. That’s the classic shipments vs GDP trap.

Recent context (2023-2025) that can tilt the rankings a little:

• Semiconductor investment (CHIPS Act): Big capital outlays lift value added within Computer & electronic products, but fabs take years to finish. The jobs bump lags the spending.
• Autos/EV transition: Re-tooling and new battery plants push Transportation equipment employment up in some states, even if unit production is choppy.
• Chemical capacity expansions: Gulf Coast and Midwest projects support chemicals’ top value-added ranking, though prices and global demand can move margins.
• Food inflation comedown: Price normalization cools shipments growth in Food, but the headcount stays high because demand is steady.

State examples to make it real:

• Texas: Heavy in chemicals and refining. You’ll see chemicals dominate value added even where petroleum dominates shipments.
• Michigan and Ohio: Transportation equipment drives jobs; suppliers show up in Fabricated metals and Machinery.
• California and Arizona: Computer & electronic products (including chips) lift value added per worker.

Cheat sheet, quick checks, and what people ask next

Use these rules and checklists when you need a clean, defensible claim fast.

Decision shortcut

• If you need the macro “largest subsector” statement: say Chemicals (value added).
• If your focus is workers or plant counts: say Food or Transportation equipment (check the latest BLS month).
• If you’re discussing revenue/throughput: note Petroleum & coal products leads by shipments when fuel prices are high.
• If your angle is trade exposure: cite Chemicals and Transportation equipment as the top two exporters, flipping places with aerospace cycles.

Source checklist (primary only)

• BEA: GDP by Industry (Manufacturing subsectors). Use the latest annual detailed tables.
• BLS: CES for monthly manufacturing employment; QCEW for annual employment by NAICS and geography.
• Census: Annual Survey of Manufactures (shipments, payroll, value added) and FT-900 for exports/imports.
• Federal Reserve: G.17 Industrial Production for monthly output trends by industry group.

Common mistakes to avoid

• Mixing levels: comparing a grouped BEA category (e.g., “Food, beverage, and tobacco products”) to a single NAICS 3-digit like 325 (Chemicals). Either compare grouped to grouped or stick to pure 3-digit subsectors.
• Using a single hot month to claim a yearly trend. Employment spikes or dips (strikes, retooling) can flip the monthly leader.
• Quoting shipments as if they were value added. They are not the same.
• Ignoring revisions. Always note the data vintage (e.g., “BEA 2024 release, 2023 data”).

Mini‑FAQ

• What exactly counts as “Chemical manufacturing”? NAICS 325: basic chemicals, resins, synthetic rubber and fibers, fertilizers, pharmaceuticals, paints, soaps, and more.
• Has chemicals always been #1 by value added? In recent years, yes. The exact share moves with prices, capacity, and pharma cycles, but Chemicals consistently sits at or near the top in BEA value added tables.
• Is Food really the biggest employer? Often, yes. Food’s footprint is broad and steady. Transportation equipment can take the #1 jobs spot in high-production periods, especially when aerospace or autos ramp.
• Why do BEA and Census numbers not match? Different concepts. BEA measures value added (GDP). Census ASM reports shipments and value added using survey methods and sometimes different industry aggregation. Use the measure that answers your question.
• Is 2025 data final? Employment data is current monthly. Detailed GDP-by-industry splits generally lag by a year. Expect revisions.

Next steps (pick your lane)

• You’re prepping a board slide: Use “Chemicals (NAICS 325) is the largest US manufacturing subsector by value added, per BEA 2023. By jobs, Food and Transportation equipment lead.” Add a small footnote with sources and the year.
• You’re an investor sizing a market: Start with BEA value added to gauge economic weight, then ASM for shipments and margins. Cross-check with company 10‑Ks in each subsector (chemicals vs semis vs autos) for real-world revenue mix.
• You’re doing workforce planning: Pull BLS CES for the latest employment by 3‑digit NAICS in your target states. Map to program completions (community colleges) to see the pipeline.
• You’re a student writing a brief: Lead with value added (chemicals), acknowledge the employment leader, and explain the shipments trap in one sentence. That shows you understand the metrics.

If you want to be airtight, keep this phrasing handy: “By value added-the standard macro measure-Chemical manufacturing (NAICS 325) is the largest US manufacturing subsector (BEA, 2023 tables; 2024 release). For employment, Food (NAICS 311) and Transportation equipment (NAICS 336) are typically the top two (BLS CES/QCEW, 2024-2025).” That one paragraph answers the question and preempts the most common pushbacks.

About author Aarav Tandon

I am a manufacturing engineer specializing in streamlining production processes and reducing waste. I have a keen interest in exploring the manufacturing landscape in India and often write about innovative practices in this sector. My work involves collaborating with a diverse team to optimize efficiency and implement sustainable practices. I enjoy sharing insights and stories from the field with a wider audience through my writing.