Manufacturing is a long-time practice. Even thousands of years ago, when people relied on stone tools, we can identify the manufacturing process. Throughout time, manufacturing has empowered us to streamline processes and create innovative products and goods that have allowed us to take great technological strides.
Without manufacturing, people would have fewer incentives to develop ideas and find new ways to stay competitive in regional and international markets. We’d also see a decline in job growth and experience a large trade deficit, which would threaten the American dollar and citizens.
Manufacturing fuels our economy by providing jobs, fostering skills and empowering other industries to thrive. Mass production has become an attainable way to deliver consumer goods and participate in world trade, allowing businesses in numerous industries to create and produce the goods they need to drive business.
Overall, manufacturing is an essential element of our economy, and we can see its reach spreading into almost every other industry. Keep reading to discover why manufacturing is important to the economy and how it affects millions of people and industries.
One of the most significant aspects of manufacturing is providing goods for regional and international trade. Without trade, the United States would accumulate a large deficit that could threaten the American dollar in the future by lowering its value, making imports incredibly expensive.
Trade deficits describe the amount by which imports exceed the value of exports in a country. This deficit affects national income and employment and can create short- and long-term problems for citizens. With more people buying goods from out of the country, fewer people would feel inclined to make goods in the country, reducing the money that circulates through the economy and effectively weakening it.
Manufacturing can reduce the trade deficit by prompting the country to produce valuable goods and increase our exports, allowing us to stay competitive in trade.
The manufacturing industry needs well-trained, knowledgeable and skilled workers to create new ideas and execute their ideas. From designers to engineers to managers, manufacturing businesses require a large pool of workers to contribute to the development, creation and production of goods. As of 2020, the United States Census Bureau notes that manufacturing is among the top five employers in the country.
Manufacturing businesses often offer high-paying jobs to compensate for the level of skill and training these workers need. Research shows that manufacturing employees can make as much as 13% more in hourly wages than comparable private-sector workers. Additionally, many of these workers have access to retirement and insurance benefits and unions, creating an even better outlook for these positions.
With more people entering this industry, we could see many more ideas brought to the surface that could highlight our collaborative and effective processes.
As we refine practices and develop more effective ways of doing things, we see these methods integrating into other industries, particularly service industries. For example, computer technologies and communication processes have streamlined processes in nearly every industry.
Small changes like incorporating point-of-service systems in restaurants, software in pharmaceutical and medical facilities, tracking devices in warehouses, and much more have turned daily practices into manageable, efficient tasks that reduce downtime and errors. Simply put, manufacturing more goods has empowered us to boost productivity and streamline effective processes.
Additionally, many industries rely on manufactured products. Warehousing facilities and retail clothing or technology stores rely on manufactured goods to drive business. Telecommunication, airline and software industries need broadcast equipment, phones, aircraft and computers to perform necessary services.
At its core, manufacturing is a guiding hand for people to imagine and develop ideas, processes and products. While these ideas alone encourage us to be more creative and productive, it also furthers our nation. The most powerful countries have the most advanced technologies, and innovation leads to great economic returns.
We can see the power of advanced technology in any industry and recognize our reliance on efficient processes in essential industries. Consider agriculture. The most productive farms rely heavily on processes and products that streamline food production. Farms use nearly 1 billion pounds of pesticides to control insects, weeds and other pests from affecting their food. Additionally, technologies and farming equipment, like combines, tractors, sprayers and plows, allow farmers to complete tasks in a fraction of the time.
Manufacturing encourages people to continue evolving these practices so we can become even more efficient. This practice, in turn, allows us to reap the benefits of ideas while making more profit and jobs for the country.
Manufacturing creates a beneficial cycle that propels countries to success. By requiring skilled and productive workers, we can ensure we have a worthwhile workforce that circulates money back into the economy. We can also save money by relying on local materials, components and equipment rather than paying for international resources.
While manufacturers give money back to the economy, the nation can also spend less on imports, reducing the trade deficit and increasing profits, thus encouraging more innovators to join the ranks of manufacturing businesses to continue the cycle. Overall, the existence of manufacturing drives significant parts of the economy and helps strengthen it.