Why is Manufacturing Important?
Manufacturing is the backbone of any economy because it boosts innovation and creation of cutting-edge technology. Manufacturing is often associated with manual work only. Contrary to popular believe, manufacturing does not only include the manual work of assembling. It is a complex process that includes sourcing for raw material, designing products, and engineering, producing, assembling, selling and shipping the end product. Countries that constantly expand their manufacturing base have more power than countries with a small manufacturing base.
Advantages of manufacturing
Manufacturing locally can lower the end price of the product. This is mainly true when the raw materials are locally available and the customers are local. The lack of shipping costs and deliveries to the customers has a huge impact on the final product price.
The manufacturing industry passes down knowledge by practice. Sustaining local industries requires that new employees be trained on the manufacturing activities. In addition, to stay ahead of the competition the industries have to come up with innovative ideas. These innovations are later passed down to employees in the industries.
Having local industries is a huge advantage to the workforce. Industries require employees in large numbers. The employees needed are casual laborers, engineers, chemists, biologists, IT gurus and many more professionals. These professionals ensure that the product specifications are done appropriately.
China is among the biggest producers in the world. They also have a large and stable economy. At one time they almost became a super-power. Their secret is producing everyday materials from cups and plates to components and accessories for phones and computers. They specialize in making the essential goods. The manufacturing business is a numbers game, the higher the sales the bigger the returns. Manufacturing goods in high demand puts a country at an advantage because more money comes in as exports than the amount that leaves the economy as imports.