Manufacturing Industry is the branch of manufacture and trade based on the fabrication, processing, or preparation of products from raw materials and commodities. This includes all foods, chemicals, textiles, machines, and equipment.
The following are significance of manufacturing industries in the world economy:
- It provide employment to the fast growing population in the world especially the tropical countries
- Industries lead to diversification of the economy of the country and reduce reliance on one type of product.
- It contribute to earning of foreign currency to the country. for example Japan earns a lot of foreign currency because of exporting manufactured products
- It leads to self sufficiency. this mean that the country reduces its reliance on imported goods and this can lead to stabilization of its economy
- It stimulate the development of transport and communication like construction of roads, railways and ports
- It leads to development of other economic activities like tourism, trade and agriculture
- It reduce expenses on imports since most of the goods can be produced locally
- It encourages the improvement of social services such as education, health services, electricity and water supply
- Manufacturing is the most important cause of economic growth The growth of manufacturing machinery output, and technological improvements in that machinery, are the main drivers of economic growth. No machinery industries, no sustained, long-term economic growth. Just consider the explosion of the Internet, iPhones, and the like — all made possible by a small subset of production machinery called semiconductor-making equipment (SME), which itself is dependent on other forms of production machinery, such as the machine tools that grind the lenses they use or the alloys of metal the metal-making industries output. These technologies reproduce themselves, as when an SME makes the semiconductors that then go to make more SMEs, or when a machine tool makes the metal components that not only go into other pieces of machinery, such as cars, but are used to produce yet more machine tools. The technological and productive potential of machine tools and SMEs affect each other as well, leading to the explosive economic growth of the last two hundred years.