For years and years, the manufacturing industry has continued to grow at a rapid rate and becoming more and more vital to the world’s economy. There are both internal as well as external factors that contribute to this growth.
Manufacturers have the opportunity to drive growth all over the world and some of the measures that have made this possible include the following:
Focusing on research and development
Manufacturers have constantly increased investment into research and development in an attempt to drive growth in the industry. For instance, specialized equipment is being increasingly being incorporated into the economy to aid in improving the manufacturing sector.
Elimination of repetitive regulations
Throughout their legislative sessions, many of the world’s congresses have continued to pass new laws that improve manufacturing in their countries and compliance. Manufacturers have to follow these laws and push for more amendments that will further improve their sector.
Considering the cons of Offshoring
Even though the initial cost of Offshoring is very appealing, manufactures are wise enough not to indulge thoughtlessly into it. Offshoring has a serious impact on the quality assurance and brand identity. For example, foreign countries may not protect propriety information as well as an individual government would. Thus governments have put measures in place to regulate Offshoring.
Promotion of the Value Added Tax (VAT)
Most countries are trying to boost their manufacturing sector by discouraging the importation of goods. One way to curb reshoring that has proved the most successful is adding a VAT onto imports.
Increasing the value of exports in the global economy
Generally, countries avoid importing goods with high export rates and tariffs, so most economies have lowered prices for exported products to foreign buyers as a result, the flow of exports has increased tremendously.
Improving automation of manufacturing
Workers often oppose automation due to fear of job cuts and losses however, automation has proven to be very positive as it has opened new doors to new types of workers. These include those who repair automated equipment and those who work to control or program robotics. Workers have been educated on how automation will impact their duties and how it will reduce their workload. By workers embracing automation, indeed the manufacturing sector has grown tremendously. Through the improvement of automation we have seen manufacturing become a much safer working industry, whether you are building and shipping things quite specific like art crates or museum display cabinets which are much larger and direct, it is a much more stable place to work within.
Accessing the potential of graduates of vocational programs
Manufacturers have taken advantage of the many opportunities being availed by vocational programs. These programs offer contractual debt-forgiveness programs, and they readily provide training, education and course work to these manufacturers. Information is power, having being equipped with all this new information, manufacturers implement them and as a result the manufacturing industry is doing really well lately.
Changes in the Chinese economy
It has been a continuous worry and mind-boggling issue for quite some time on a lot of entrepreneurs on the incumbent of the cheap Chinese manufacturing industry into the economy. It was a reality for a while and many outsourced to China to acquire the cheaply manufactured and readily available items. However, recently there has been an influx in salary payment in China, a clear indication that the cost of manufacturing is high. Other economies have used this opportunity to grow their own economies, currently China is rather expensive and people prefer to make their products in other countries hence allowing these economies to grow as well.
Indeed, the current manufacturing industry is not in any way similar to the way it was a few years back. Despite fears and criticism, it is still on the rise. Manufacturers are assured of a better tomorrow and indeed, this is most convenient time to be involved in the manufacturing industry.