Manufacturing

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Manufacturing is the production of goods for use or sale using labor and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users – the "consumers".

Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation.

Modern manufacturing includes all intermediate processes required for the production and integration of a product's components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead.

The manufacturing sector is closely connected with engineering and industrial design. Examples of major manufacturers in North America include General Motors Corporation, General Electric, and Pfizer. Examples in Europe include Volkswagen Group, Siemens, and Michelin. Examples in Asia include Toyota, Samsung, and Bridgestone.

Contents

History and development

  • In its earliest form, manufacturing was usually carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world the guild system protected the privileges and trade secrets of urban artisans.
  • Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture (and continues to do so in places). Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.
  • Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm.
Assembly of Section 41 of a Boeing 787 Dreamliner

Manufacturing systems: changes in methods of manufacturing

Industrial policy

Main article: industrial policy

Economics of manufacturing

According to some economists, manufacturing is a wealth-producing sector of an economy, whereas a service sector tends to be wealth-consuming.12 Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and for national defense.

On the other hand, most manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. Developed countries regulate manufacturing activity with labor laws and environmental laws. Across the globe, manufacturers can be subject to regulations and pollution taxes to offset the environmental costs of manufacturing activities. Labor Unions and craft guilds have played a historic role in the negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the third world. Tort law and product liability impose additional costs on manufacturing. These are significant dynamics in the on-going process, occurring over the last few decades, of manufacture-based industries relocating operations to "developing-world" economies where the costs of production are significantly lower than in "developed-world" economies.

Manufacturing may require huge amounts of fossil fuels. Automobile construction requires, on average, 20 barrels of oil.3

Manufacturing and investment

Surveys and analyses of trends and issues in manufacturing and investment around the world focus on such things as:

  • the nature and sources of the considerable variations that occur cross-nationally in levels of manufacturing and wider industrial-economic growth;
  • competitiveness; and
  • attractiveness to foreign direct.

In addition to general overviews, researchers have examined the features and factors affecting particular key aspects of manufacturing development. They have compared production and investment in a range of Western and non-Western countries and presented case studies of growth and performance in important individual industries and market-economic sectors.45

On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand.6 Further, while U.S. manufacturing performs well compared to the rest of the U.S. economy, research shows that it performs poorly compared to manufacturing in other high-wage countries.7 A total of 3.2 million – one in six U.S. manufacturing jobs – have disappeared between 2000 and 2007.8 In the UK, EEF the manufacturers organisation has led calls for the UK economy to be rebalanced to rely less on financial services and has actively promoted the manufacturing agenda.

Countries by Manufacturing output using the most recent known Data

Data is provided by Worldbank.910 It shows the total value of manufacturing in US Dollars for its noted year.

Rank Country/Region (Millions of $US) Year
 World 9,963,056 2010
9999999  European Union 70062257019000000002,257,019 2010
1  United States 70061771400000000001,771,400 2010
2  China 70061756621000000001,756,621 2010
9999999 Logo European Central Bank.svgEurozone 70061744073000000001,744,073 2010
3  Japan 70061063593000000001,063,593 2010
4  Germany 7005610184000000000610,184 2010
5  South Korea 7005313429000000000313,429 2011
6  Brazil 7005308125000000000308,125 2011
7  Italy 7005306196000000000306,196 2010
8  France 7005253608000000000253,608 2009
9  Russia 7005252125000000000252,125 2011
10  India 7005238621000000000238,621 2011
11  United Kingdom 7005229615000000000229,615 2010
12  Indonesia 7005205632000000000205,632 2011
13  Mexico 7005202974000000000202,974 2011
14  Spain 7005172433000000000172,433 2009
15  Canada 7005169120000000000169,120 2008
16  Turkey 7005125825000000000125,825 2011
17  Thailand 7005113606000000000113,606 2010
18  Australia 700498344000000000098,344 2010
19  Argentina 700484100000000000084,100 2011
20  Poland 700476438000000000076,438 2010

Manufacturing processes

Theories

Control

See also

Main article: Outline of manufacturing

References

  1. ^ Friedman, David (2006). "No Light at the End of the Tunnel". Los Angeles Times. New America Foundation. Retrieved 2007-05-12. 
  2. ^ Joseph, Keith (1976). "Monetarism Is Not Enough". Center for Policy Studies. Margaret Thatcher Foundation. Retrieved 2007-05-12. 
  3. ^ "World oil supplies are set to run out faster than expected, warn scientists". The Independent. June 14, 2007.
  4. ^ Manufacturing & Investment Around The World: An International Survey Of Factors Affecting Growth & Performance, ISR Publications/Google Books, revised second edition, 2002. ISBN 978-0-906321-25-6.
  5. ^ Research, Industrial Systems (2002-05-20). Manufacturing and Investment Around the World: An International Survey of Factors Affecting Growth and Performance. ISBN 978-0-906321-25-6. 
  6. ^ Bailey, David and Soyoung Kim (June 26, 2009).GE's Immelt says U.S. economy needs industrial renewal.UK Guardian.. Retrieved on June 28, 2009.
  7. ^ Brookings Institution, Why Does Manufacturing Matter? Which Manufacturing Matters?, February 2012
  8. ^ "Factory jobs: 3 million lost since 2000". USATODAY.com. April 20, 2007.
  9. ^ "Manufacturing, value added (current US$)". access in February 20, 2013.
  10. ^ "Manufacturing, value added (current US$) for EU and Eurozone". access in February 20, 2013.

Sources

  1. Kalpakjian, Serope; Steven Schmid (August 2005). Manufacturing, Engineering & Technology. Prentice Hall. pp. 22–36, 951–988. ISBN 0-13-148965-8. 

External links

Look up manufacturing in Wiktionary, the free dictionary.
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