Manufacturing sector is considered one of the largest wealth producing sectors of an economy. The others being agriculture and mining. In contrast service sector is famous as the wealth consuming sector of the economy because they depend upon the other wealth producing sectors for their operation and growth. It means that manufacturing hold a great importance as a wealth producing sector in the economy of any country. It is the process in which all the resources are utilized efficiently to convert raw materials in to the value added finished goods by physical or mechanical efforts. Sometimes, these final products are used for the manufacturing of other items or they are sold to the wholesalers who in turn sell them to the retailers from where they reach the ultimate consumers.
Manufacturing sector of an economy bears huge significance as mostly it is operated on large scale and it produces wealth in large quantities. A lot of manufacturers are engaged in producing necessary or luxury products to fulfill peoples need. They include food, clothing, automobiles, electronics, accessories etc. These items are very common and are used by the people in their daily lives.
The sale of such items in bulk renders huge revenue to the wholesale manufacturers who are also obliged to pay the taxes on their produce. Increase in volume of production increases How To Manufacture A Product In China the income of the economy by charging more taxes from the suppliers or manufacturers of the products. So, wealth of an economy grows with the increase in productivity.
Manufacturing on large scale reduces the cost of production for the manufacturers and thus brings the economies of scale. After satisfying the needs of the domestic nation, the Industrial Growth Definition goods manufactured in bulk quantities are exported abroad to sell at higher rates. This again produces large wealth to the country by earning foreign exchange in big amounts.
A high investment in the manufacturing sector brings innovation in the production methods by the use of latest technologies. This helps to earn maximum output from the least input with minimal amount of waste. This brings variety of new products with higher qualities. When people use high quality consumer products, their standards of living begin to flourish. Manufacturing sector provides employment opportunities to the people and increases the per capita income of individuals. This increase in per capita income results in an increase in overall wealth of an economy.
So, thriving manufacturing sector derives the engine of any country’s economy by producing wealth and saving its economy from entering into the vicious circles of poverty.
