MANUFACTURING – 7 UNIQUE FACTS
Manufacturing is the production of goods through the use of labour, machinery, tools and biological or chemical processing or formulation. Manufacturing can either mean transforming raw materials into finished goods on a large scale, or the creation of more complex items by selling basic goods to manufacturers for the production of items such as automobiles, aircrafts, or household appliances.
Raw materials are transformed into products through manufacturing engineering or the manufacturing process. This process begins with product design and materials selection. The materials are then modified during various manufacturing processes to create the finished products.
Here are 7 Interesting Facts about the Manufacturing Sector –
- MANUFACTURING CAN LEAD A COUNTRY OUT OF TUMULTOUS ECONOMIC SITUATIONS
Manufacturing Industry supports more than 5.8 million jobs in other sectors. The list includes a wide range of workforce from finance, transportation, agriculture, professional services to sectors pertaining to retail and wholesale. The US manufacturing sector provides more than 11.7 million jobs. It is, in reality, the country’s fourth largest employer. (Source: Adapted from Kim Evan’s article in jobs.net)
- MANUFACTURING EMPLOYEES EARN MORE THAN WORKERS IN OTHER SECTORS
The Manufacturing sector pays 8% higher salaries compared to the combined salary averages of across all other industries. The average salary in manufacturing is about $32.9 per hour as against $30 for other industries. The manufacturing industry outshines others and is second only to State and Local Governments, in providing healthcare benefits to its employees and their families. Though healthcare premiums have more than doubled in the last couple of decades, the manufacturing industry has stayed abreast with the benefit contribution, which also included a slew of benefit programs like “Smoking Cessation”, On-site exercise zones and gym memberships. (Source: Adapted from Kim Evan’s article in jobs.net)
- MANUFACTURING HAS THE HIGHEST SAFETY STANDARDS
Reports of injuries out of occupational hazards have decreased at manufacturing sites by more than 65% over a period of 15 years. This rate of improvement is faster than that of others in private sector. The industry has recognized the fact that safety programs reduce costs, increase productivity, and improve efficiency and overall morale. These factors in turn contribute to the bottom-line. (Source: Adapted from Kim Evan’s article in jobs.net)
4. MANUFACTURERS PERFORM NEARLY 58 PERCENT OF ALL PRIVATE SECTOR R&D
Manufacturers in the United States perform 57.9 percent of all Private Sector R&D, driving more innovation than any other sector. Research & Development in the manufacturing sector has risen from $132.5 billion in 2000 to $295.7 billion in 2020. In the most recent data, Pharmaceuticals accounted for 35.7 percent of all manufacturing R&D, spending $105.7 billion in 2020. Computer & electronics products (16% of manufacturing R&D), semi-conductor & other electronic components (13%), and motor vehicles & parts (8%) also contributed significantly to R&D spending in 2020. (Source: BUREAU OF ECONOMIC ANALYSIS)
5. FOR EVERY $1 SPENT IN MANUFACTURING, ANOTHER $2.79 IS ADDED TO THE ECONOMY
For every $1 spent in manufacturing, another $2.79 is added to the economy. That is the highest multiplier effect of any economic sector. In addition, for every one worker in manufacturing, there are five others hired in other elsewhere. For every $1 earned in direct labour income in the manufacturing sector, there will be $3.14 in labour income earned elsewhere, including indirect and induced impacts. (Source: NAM Calculations using IMPLAN data)
- MAUFACTURING WILL NEED 6 MILLION JOBS IN THE NEXT DECADE
Nearly 6 million manufacturing jobs will be needed over the next decade, with nearly half of them anticipated to go unfilled due to a skills shortage. Furthermore, according to a recent report, 89 percent of manufacturers have stated that there is a moderate to severe scarcity of eligible applicants for skilled and highly skilled manufacturing positions. (Source: DELLOITE & THE MANUFACTURING INSTITUTE)
7. MANUFACTURNG INDUSTRY CONSUMES MORE THAN 30% OF THE NATION’S ENERGY
Manufacturers consume more than 30% of the nation’s energy consumption. Industrial users consumed 32.3 Quadrillion BTU of energy in 2018, or 32.3 % of the total energy used. (Source: US Energy Information Administration, Annual Outlook 2019)
It is also worthwhile to know that before the Industrial Revolution, most manufacturing took place in rural areas where households manufactured goods as a supplemental subsistence strategy to agriculture. (This practice continues to date in places). Entrepreneurs organized a number of manufacturing households into a single enterprise through a sub-contracting system called the Putting–Out System or the Workshop System.
Manufacturing is a very dynamic and competitive industry, so having an integrated solution that can boost productivity, lower costs, increase sales and profitability, and most crucially, enable the business to make correct, informed, and strategic decisions is vital. An Enterprise Resource Planning system (ERP) for the manufacturing sector, or a Manufacturing Execution System could well be the panacea to all of these challenges. An ERP for the manufacturing industry integrates all facets of a business operations (accounting, finance, sales, reporting, scheduling, operations, planning and warehousing and so on) and enables companies to operate properly using a single database.
