2021

Manufacturing Industry

Manufacturing is the creation of trade products from raw materials using manual labor or machinery. In other words, it is a large-scale production of raw materials into finished goods. The manufacturing industry plays a significant part in any nation with extensive economic goals. It provides immense employment opportunities by opening up the domestic market for the middle-class population. 

Definition

Manufacturing is simply the production of finished goods from raw materials using labor and machines. It is the process of using systematic manual-labor and work tools, chemical or biological processing, formulation, or hand-craft to complete the desired product ready for sales. Manufacturing is known as the secondary sector or production sector because it involves secondary processing of raw materials. 

Functions

The manufacturing industry is a boundless sector with multiple different fields of various sizes across the globe. Most of the companies use machines and equipment along with human effort for large scale production. Manufacturing is value creation; less valuable products get transformed into high-value products ready for sale. So much like raw wood getting transformed into furniture. During the old times, we depend on manual labor for manufacturing goods. But when agrarian society turned into an industrial one with social and economic change, mass production became possible and people got to buy products cheap. With the help of machines and equipment, the manufacturing process becomes quick and easy. With the introduction and growth of technology, manual labor reduced, and production of the assembly line and conveyor belt hit a steady high.

There has been a considerable rise in goods manufacturing with the contribution of most modern technology. A technological upgrade of computerized machines, systematic process, and precise calculations resulted in unimaginable output capacity; that means faster and efficient performance in assembling, testing, and tracking production. Though automation left many unemployed, it reduced production costs to a minimum.

Importance

The manufacturing industry offers multiple opportunities in commercial innovation and employment. This field keeps countries afloat with the continuous flow of money, allowing the US and China markets to remain highly competitive. Manufacturing also contributes to 75 percent of all privately funded research and development in the country, making it the center of innovative progress and economic development. The mass manufacturing and advanced technical enterprises help the widespread development of a rapidly expanding market economy, lifting the standard of living for the poor and working-class society. 

For the poor and working-class, employment in the manufacturing sector doesn't necessarily demand an advanced degree. Yet manufacturing companies provide above-average wages for those working in the field. Approximately one out of every six jobs in the service sector comes from the manufacturing sector. Even people from other professional streams like lawyers, accountants, doctors, financial advisors, etc. get employed in these industries. 

Many industries are directly or indirectly associated with the manufacturing sector. For building a manufacturing facility, the construction industry needs to step in with architects, engineers, and related professionals. The transportation industry is essential for products to reach retail stores, and the printing industry is required for marketing these products in-store. The manufacturing industry thus supports countless other fields in different sizes and shapes thrive. The world economy gets influenced by the ripples created in the manufacturing sector.

There are contradictory expectations about the future of the manufacturing industry. Some economists think that the manufacturing industry is going to slow down, and some opine that it is going to grow with the progress in technology. Whether economists could predict it exactly or not, it will continue to stay as an essential part of the economy and employment. 

Production Vs Marketing

Production and manufacturing are usually used interchangeably in simple terms. But technically, they are not the same. They are distinctly different from one another. Manufacturing is one of the methods used to produce goods. Production includes various production methods such as development, assembly, and processing. 

The creation of consumable products with material or non-material utilities is called production, the process of producing consumer goods from raw materials and human effort. Learning the production process of Salty Sombrero Corn Tortillas will explain that. First is the cultivation and harvesting of corn, then mixing it up with an alkaline solution to improve malleability and taste, drying and grounding into flour, making dough adding water and salt, kneaded to small balls. Once the balls are flattened and cooked, they are packaged and sent to distribution centers before reaching retail stores. It is a combination of mixing raw materials and physical work where physical labor is a utility. Sometimes, all utilities are not part of what customers consume. Tortillas could be just one part of the final product customers consume.