The Growth of Manufacturing Industry and the Overall Growth of Economies - Essay Example

THE GROWTH OF MANUFACTURING INDUSTRY AND THE OVERALL GROWTH OF ECONOMIES By Location The Growth of Manufacturing Industry and the Overall Growth of Economies Any growth in the manufacturing industry leads to a direct stimulation of growth in the economy of a country. These two factors are directly related. One leads to the other. Growth in the economy of a country will also enhance the level of the manufacturing industry in the country. All aspects of production in the manufacturing industry link directly to the economic aspects of the country. This paper is aimed at explaining how these two factors co-relate and how the manufacturing industry can be improved objectively to accelerate the economy of a country. A growing manufacturing industry impacts on the employment rates of a country in so many ways. As more manufacturing industries come up and volumes of production increase demand for more employees also rise. Technicians, engineers, and laboured workers are required in the manufacturing industry to perform different roles that are dependent on each other. This calls for a high level of production specialization with the likes of mechanical engineers concentrating more in the field of production of mechanical devices. Computer scientists, who is also specialized in the manufacture of computer hardware and software, will also end up specialized in their fields. However, there is inter-relation and all these could be employed in any of the manufacturing industries. For example, is the assembly of robots, specialists in mechanics, computer science and telecommunication will be required in order for the end product to be functional (Carroll & Hannan 2000, 77). With growth in the manufacturing industry, more of these experts are required, therefore, increasing the demand for specialized workers. As demand for workers rise, the rate of unemployment subsequently goes down. High levels of unemployment threaten the economy of a country and as this brings it down, it directly impacts on the growth of the economy. Similarly, as the growth of the manufacturing industry accelerates employment, it may also act negatively. The production of robots which replace humans in terms of labour provision acts negatively in this direction as a company that could have employed ten persons in the production process, would employ one robot instead. As much as this accelerates the rate of production, it creates a deficit in the HR department in terms of workers as the industry is forced to lay off a large number of its workers in effect to the same. This creates a competition between workers, ensuring that everyone inputs their best leading to a maximized production that will shoot up the economy of a country. The economy of a country is highly dependent on the agricultural activities and capabilities of the company. This is because agriculture is a wide factor in the growth of a country’s economy. Through the growth in the manufacturing industry, agricultural activities and capabilities of a country are also enhanced. A growth in the manufacturing industry ensures an increase in agricultural implement production and enhancement of already existing implement into more effective and efficient form. These agricultural implements include tractors, shovels, and combined harvester’s and others. When the agricultural sector of a country is stable; it becomes very easy for the economy to grow. Therefore, as the manufacturing process of agricultural implements grows, the economy of a country also grows (Hull 2009, p. 111). When the manufacturing industry grows, the levels of trade also change simultaneously. This is due to a number of ways in which the two are related. A growth in this industry has directly led to an increase in demand for the raw goods that are used in production. For example, a growth in the motor-vehicle manufacturing industry will lead to an increase in demand for iron, steel, oil and oil products, gas, rubber products, and many other raw materials that are essential in this production. This will improve trade over the same goods. This trade may be locally within the country or may be imported from another country. In a case where these materials are imported from another country, the economy of that country from which they are imported will also be accelerated. Similarly, the end products of the manufacturing processes will derive a demand. These countries manufacturing these products will therefore supply them either locally or internationally therefore deriving revenue from them. Exportation is a direct source of revenue for countries. Through the process of manufacturing, the gap between demand and supply of commodities is bridged thereby ensuring economic efficiency. This acts towards enhancing economic growth. The level of governance in a country is a direct factor towards its economic growth. It can be said that the more effective the governance of a country is, the faster the growth rate of its economy. All decisions and procedures pertaining to production and economic decisions are based on policies that a country lies on development will directly affect levels of development. Therefore, when the governance of a country is effective, the economic growth is assured. Consequently, a growth in the manufacturing industry improves the governance process since technological developments are employed. Proper and better planning methods and facilities arise from these developments, thereby enhancing the governance process. Governance is eased with the availability of resources. Manufacturing industries produce resources for governments in terms of taxes and other forms of returns. These revenues lubricate the governance process. Furthermore, through technological manufacturers, devices have been produced that aid actively in worker assessment. It also helps the government to check through its resources and enable equal and effective disbursement of resources for equitable economic growth. The growth of the manufacturing industry aids a country in reducing the literacy levels. This is done by availing the necessary equipment and resources produced through this process of production. From manufacturing processes, educational equipment, and equipment are produced. This enables learning institutions to acquire the necessary equipment that is needed in their institutions to make learning effective. When the manufacturing industry is growing, the education system has to comply with it since it produces the expertise that is required in the industry. Learning institutions introduce and develop technical learning courses that are related to the manufacturing processes that the students are expected to be engaged in when they are done with their course of study (McMillam & Rodrik 2011, p. 109). Furthermore, these manufacturing industries also provide interfaces of experience when these students go on attachments and internship. With improved manufacturing processes and expectations, there is also a rise in expectations of the learning processes. A rise in the levels of education of a country has a direct impact on the growth of the economy. Growth in the manufacturing process also enhances the security levels of a country. This is due to the production of devices such as CCTV cameras which enhance surveillance. These CCTV cameras aid in identification of criminals and rogue characters. They are also aimed at indicating possible reasons for certain occurrences that led to insecurity in certain areas of interest. Through manufacturing industries, there has also been improved communication that directly impacts on security enhancement. Development in the manufacturing industry has also led to the production of tracking devices that are aimed at tracking lost items, stolen material and lost persons. The economy of a country is highly dependent on the levels of security in the country (López-Claros 2010, p. 120). This is because the flow of goods and services is guaranteed in the presence of security. Therefore, the higher the levels of manufacturing industry in a country, the higher the security level, therefore the higher the growth rate of the country’s economy. When the manufacturing industry grows, the means of transport are also enhanced. This is due to production of highly technical transport systems. The production of modern rails through the manufacturing industry can be cited as a good example of how a growth in the production industry impacts on the growth of the economy. When the transport system of a country is improved, there is also a rise in the movement of people and goods to destinations thereby saving on a lot of time and resources. These modern trains have also eased traffic congestion in major cities, thereby making the movement within cities to be faster (Duesterberg & Preeg 2003, p. 98). The production of effective and economical motor vehicles also enhances transport. Effective airplanes that have been produced through the improved manufacturing processes have enhanced global transport. These planes, owned by certain nationals, act as a source of revenue for the countries they come from. They also act as a source of employment for hostesses, pilots, technical support teams and aeronautic engineers who are actively involved in the running of a plane. This reduces the unemployment rates in a country leading to economic growth. So many manufacturing industries deal with medical implements. These implements, used in hospitals and other health facilities, are useful in enhancing the overall health conditions of a country. The improved production of X-ray machines, oscilloscopes, and other medical equipment, highly help in disease eradication and control. Emerging medical conditions such as cancer have been contained well due to availability of equipment that have been availed by the highly developed manufacturing procedures that have come up due to growth in the manufacturing industry. Furthermore, it has been possible to airlift medical condition and accident victims to hospitals for quicker medical attention aimed at saving lives. A country’s economy is highly dependent on the health of the citizens. A sickly population cannot be engaged directly and effectively in active production. A healthy population is, however objectively involved in the success of a production process (Lin 2011, p. 108). Production of medical implements therefore enhances the health of a country which, subsequently, affecting the economic growth of the country. The economy of a country is highly dependent on the agricultural activities and capabilities of the company. This is because agriculture is a wide factor in the growth of a country’s economy. Through the growth in the manufacturing industry, agricultural activities and capabilities of a country are also enhanced. A growth in the manufacturing industry ensures an increase in agricultural implement production and enhancement of already existing implement into more effective and efficient form. These agricultural implements include tractors, shovels, and combined harvester’s and others (Herrendorf, Rogerson & Valentinyi 2013, p. 123). When the agricultural sector of a country is stable; it becomes very easy for the economy to grow. Therefore, as the manufacturing process of agricultural implements grows, the economy of a country also grows. Furthermore, an improvement and growth in the manufacturing industry bear a direct impact on the physical growth of countries. This is because it impacts directly on the construction industry. Construction equipment produced by manufacturing industries, aid in hastening construction processes. A growth in the manufacturing industry directly attributes to the numerous mega structures that are coming up every day. These structures are also used as a basis that contributes to a country’s economy. Furthermore, construction companies pay huge returns to governments in terms of taxes, thereby acting as a source of revenue for the government in question. The more the revenue that a country generates, the more the funds it has to run its activities. Therefore, construction activities also have a direct relationship with a country’s economy. All this can be attributed to the growth in the manufacturing industry. In conclusion, it would be correct to conclude that the economy of a country is highly dependent on the growth of the manufacturing industry. A growth in the manufacturing industry induces a similar growth in the economy of a country. Growth of the manufacturing industry affects the economy of a country through certain aspects. These aspects include education, employment, governance, agriculture, physical growth, transport, health and security. Therefore, it is recommended that a country wishing to enhance its economy should venture into improving its manufacturing industry and the economic growth will come automatically. Bibliography Carroll, G. R., & Hannan, M. T 2000, The Demography of corporations and industries, Princeton university press, Princeton, N.J. Duesterberg, T. J., & Preeg, E. H 2003, U.S. manufacturing: the engine for growth in a global economy, Praeger, Westport, Conn. [u.a.]. 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