In today’s world, 90 percent of what people use in their day to day activities comes from manufacturing companies. For example, some of the durable goods like jewelry, automobiles, and even the non-durable are its beverages, food among others. The manufacturing industry is quite big as it can also include infrastructural developments like facilities for water supply and production, roads, and many more. The manufacturing industry plays a big role in boosting a country’s economy. Here are some of the reasons why manufacturing is important to a country as well as its economy.
Creation Of Job Opportunities
Establishment of manufacturing companies is not only for the production of goods but also for employment purposes. Even though machines have been introduced due to the latest technology, laborers are still needed to handle other important things that machines can’t handle. Most countries facing the youth unemployment problem have decided to put up more manufacturing companies, as they do not only help individuals get jobs in the manufacturing sector but also in the marketing, selling and distributing sectors. Also, the manufacturing industry pays its workers very well, as well as offering them education development and other good benefits.
Adds Value To The Economy Of A Country
The main drivers for economic development are the technology improvement of the manufacturing machinery. There can be no growth in a country’s economy if they are not using modern technology in the machinery industry. Most manufacturing machines are used to make new gadgets which also end up being used to make other machines. For example, some of the metals used in companies, like alloy, are used again to manufacturing other machines. The manufactured machines are then sold to other countries, thus generating more revenue for the country. It’s because of the manufacturing industry that a country like China has accumulated so much power and wealth over the past few years.
Manufacturing Industries Help To Support Other Companies
Every production and manufacturing company depends on another company for raw materials. If there is a machinery breakdown in one company, production may be discontinued and losses may occur. To avoid this, it is good to have a backup plan, either by buying new machinery or material. It is good to have breakdown prevention measures or repair and maintenance leads. For instance, you can rely on wear plates that help in the prevention of machine breakdown and these include a chromium carbide wear plate. These wear plates are used to prevent damage and excess wear of the machines being used in a manufacturing firm, thus ensuring that the manufacturing process is running smoothly. It also good to have contacts ready to avoid delay when an emergency need occurs.
Manufacturing Companies Promote Trading In A Country
According to the World Trade Organization, a country cannot trade more than 20% of its services because they have to trade 80% of their goods. This means that all countries participating in trade activities must have several manufacturing companies. After all, the economy will be very poor if countries were only trading services.
Most Services Depend On Manufactured Goods
Most services depend on the act of using manufactured goods. The wholesale and retail, which make up more than 10% of the economy, involve selling and buying of manufactured goods. Other services, like real estate, depend on manufacturing as it involves the buying and selling of properties, thus making up 14 percent of the economy. This shows that every finance indirectly depends on the manufacturing sector. If all countries adapted modern technology and used it in the manufacturing sector to produce more goods and services, poverty will not be an issue as they would have so much wealth.
Helps In Generating A Countries Revenue Through Taxes
Both the manufacturers and the employees have to pay taxes, thus generating more revenue for the country. The taxes go to the government who then use it to develop the country through infrastructure. The money is used to provide facilities like hospitals, schools, better roads, and also social programs.
If every country has the power and resources to create more wealth through manufacturing companies, not only will the country gain power and high economic growth but also they will be able to prevent wars as a result of power imbalance. These and many others are the reasons why it is necessary for a country and its economy to have a manufacturing industry.