Manufacturing why is it important

Much of the prosperity experienced by the United States after the Second World War can be tied to a booming manufacturing sector. Manufacturing is a source of jobs, as well as the segment from which is derived a significant portion of the nation's wealth.

When a country exports more than it imports--a condition referred to as a trade surplus--it generally receives more money than it spends, which results in greater wealth.

In the first half of the 20th century, the U. Now, however, the manufacturing sector has shrunk, leaving the country with a trade deficit imports have outstripped exports.

Introduction Manufacturing has undergone disaggregation over the past few years in the effect of globalization. Manufacturing process once vertically integrated is being distributed into globally decomposed network in search of efficiency.

This new approach of managing manufacturing has caused raise of new markets and new competitors. A combination of disruptive technologies Robotics, ICT, 3D printing , Macroeconomic developments Financial Crisis , Government policies Clusters, Tax benefits, Trade agreements and changing customer expectations has led to a drastic shift in the way firms manage their manufacturing operations.

Why Manufacturing is Important? Manufacturing ability of any nation is known to be its major economic arm. Manufacturing is considered as one of the major contributor for innovation and productivity. According to Ricardo Hausmann and Cesar Hidalgo, More complex the goods produced and more complex the process used to produce those goods, greater the prosperity of the country. Globalization of manufacturing has been a key driver of higher-value job creation and a rising standard of living for the growing middle class in emerging economies, including China, India, South Korea, Mexico and Brazil.

Developed nations have benefited from lower cost products driven by the lower wages used for production in emerging markets. But this. Get Access. Why Manufacturing System is so Important? Read More. Why Was Plane Manufacturing Important In Ww2 Words 4 Pages and mercilessly and because of this, more than half a million people died or were lost in combat. Address the shortage of certain skilled workers by establishing job-specific training programs that would prepare and retrain workers for specific skills for which there is great demand.

Reducing the tax burden. Lower the tax burden on companies locating investment and jobs in the United States by reducing the corporate income tax and the payroll tax, t hereby reducing the cost of capital and the cost of labor —eliminating the current incentives in the tax code to move investment overseas. Enforce U. S trade laws. Better use trade policy to protect American-based companies from unfair trade practices of mercantilist economies.

In particular, the United States should do a better job of protecting American-based companies from supply surges from abroad and from the dumping of excess production during slowdowns in world economic growth, such as occurred after the world financial crisis and is occurring now.

Increase global demand. Encourage greater middle class consumption abroad, which would increase demand for American-made goods and services and relieve the burden on the U. Fairly valued dollar. Such an understanding should permit a decline in the value of the dollar to facilitate the reduction of the U. S trade deficit and to remove the competitive advantages American-based companies now face. A decline in the value of the dollar would help American-based manufactures by making U.

Share this: Twitter Facebook. Like this: Like Loading Skid Steer Attachments said. Lean Education said. Andre Zamith Cardoso said. In addition, since machines can make other machines, what is called exponential growth, as in quickly reproducing animal populations, can take place.

This is because industrial machinery is used both to generate national wealth and to produce military equipment. If all regions of the world had an independent capacity to produce manufactured goods, there would be little opportunity to intimidate and dominate countries. In fact, there would probably be fewer wars because global power would be balanced. Manufacturing creates middle class jobs that anchor a middle class economy.