The Manufacturing Sector

Globally, manufacturing sector has become a significant contributor to the economy of many nations. The products are consumed locally and internationally. It is important to realize the contribution of the manufacturing sector in a country.  Government’s support for the sector would boost its productivity. Moreover, it is relevant to acknowledge the products and goods manufactured in the sector that improve the infrastructure of a country. Generally, the raw products are turned into finished products on large scale. Manufacturing involves the employment of machines, labor and other tools for the production of goods. These goods are produced for sale or use. Manufacturing sector provides complete and tangible goods. The government should aid the manufacturing sector in creating strategies and initiatives in order to develop the industries in the country.

Government’s Support for Manufacturing

The manufacturing sector is very beneficial to the economic growth of a nation. It is equally vital for the economic long-term sustainability of the nation. The government should take the initiative of creating special programs and services to help the manufacturers. The Higher Education Framework illustrates the role of education in advancing the manufacturing sector. This framework clearly states the support of the government towards the sector and the workforce. The education offered is aimed at improving the skills of the people in order to help in the growth of the economy. Moreover, the higher education offers the skills to new people in the manufacturing sector. The government should engage innovative initiatives in order to support the skills needed for the manufacturing sector.

 

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Why the Government should Support the Sector

The manufacturing sector is perceived as a wealth producing division of an economy. Innovative technology has highly contributed to the growth of the manufacturing sector. In order to support the sector, the government should embrace the dynamic technology. Technically, the manufacturing sector is vital to the growth of national infrastructure and the sustainability of national security. The national infrastructure promotes the operation of society for an economic growth. Certain assets and facilities such as airports, schools, canals, bridges, electricity, port, roads, rails, hospitals, levees, and telecommunications enable an economy to function. Still, the manufacturing sector provides tangible products a country employs for defense. The military uses weapons to combat attacks made against the country. The national defense requires weapons such as nuclear, armor, cavalry, and artillery. The manufacturing sector develops products that help in building a nation. The government should enhance in investing on the manufacturing sector.

The manufacturing sector employs the production of the primary sector and fabricates finished products. The primary sector involves the raw materials. The finished products are exported to other countries. Still, these products are vended to domestic customers and supplied to other businesses for use. Most of the industries in the manufacturing sector use great quantities of energy.  They require industrial units and machinery to renovate the raw materials into tangible goods and products. These industries generate waste materials and heat that may cause environmental pollution. 

Economically, manufacturing provides employment opportunities that offer suitable wages. It boosts the financial ability of many regions in a country. The manufacturing sector produces large quantities of product for export. Exportation of these products has a great effect on the economy of a country. The global economic fluctuation greatly affects the manufacturing sector. The rapid changing economic environment and a fast-rising dollar alter the productivity of the manufacturing sector. The government should concentrate on strengthening the influence and operation of the sector. The government should uphold the initiative of promoting productivity and investment. The government’s projects that strengthen its support on the sector create development plans based on innovation, skilled personnel, productivity, and sustainable development.Many initiatives taken by the government have a great effect on the manufacturing sector. The government reduces capital tax and develops research and innovation strategies. The government’s action plan promotes the manufacturing sector by complementing its tools in order to handle the challenges of productivity and technology. The sector’s tools are well sustained and modified in order to face current challenges.

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Problems and solutions

Problem 1

Low productivity

In the manufacturing sector, the industries highly rely on the huge pool of cheap labor for its development. The eminence and effectiveness of manufacturing sector has developed slower than its scale. The developed nations such as China still hold low productivity at a low level. These countries can not avoid the problem during their rapid development. The manufacturing sector faces low productivity. China is also one of the countries that adhere to the production of complex manufacture products. In the manufacturing sector, low productivity is a challenge that demands immediate attention. The manufacturing industries highly rely on the cheap labor. Clearly, the workforce performs most of the transactions in the industries.

Solution

The manufacturing sector should highly concentrate on high productivity strategies. The government should outline certain strategies and service that would help boost the sector’s productivity. The government should reduce the capital tax for the manufacturing sector. Still, the government should aid the sector in purchasing technologically improved machinery. Innovative technology would improve the production of goods in the sector. It is clear that the manufacturing industries should maintain high productivity in order to survive the stiff competition. The manufacturing sector should target highly skilled workforce. Moreover, the industries should keep educating the staff in order to improve their skills. Highly skilled workforce provides efficient labor and increases the productivity.

Problem 2

Rising Labor Cost

In the manufacturing sector, costs are increasing faster than manufacturing development. The China Enterprise Survey System recently carried out a survey on the challenges facing Chinese firms' development. The survey confirmed that most of found that most of the companies experience labor costs as a major challenge. Others claimed that the elevating prices of energy and raw materials were a great challenge. Raw material, fuel, and labor are factors that intensify the manufacturing costs among the firms. The firms have had to find ways of dealing with the challenges. The labor act of China disseminated in 2008 forced a strict minimum wage customary. This increased the production costs. In the manufacturing sector, cheap labor has been of great benefit to its manufacturing capabilities. However, the benefits cannot sustain the development of industrial nation’s economy.

The manufacturing sector has maintained minimum wages for a long time thus elevating the sector’s profit. The workers receive meager wages without any benefits in order to increase the companies’ profits. Increment of wages would burden the industrial companies because they often operate at a minimum margin.

Solution

The manufacturing sector should cease from relying on cheap labor. The industrial companies should work towards achieving high productivity. The employees should earn adequate wages that could also help their families.  The government should ensure that the currency is not very strong. The exporters would earn further revenues with a weaker currency, as local goods could be sold lesser as compared to imported products. Through the increased revenue, the employees would send a lot of money to their families in other countries. The manufacturing sector should invest in a high-value expansion model. Government’s aid towards the sector would boost the sector’s revenue thus abandoning cheap labor. The manufacturing sector should concentrate on improving effectiveness and innovation. It is an effective method for the industries to survive the stiff competition. Manufacturing sector is well positioned to trail higher value work. It's also part of the overall strategy to change to more domestic consumption and less exporting. The manufacturing sector has to alter from low-cost production in order promote its development. Productivity and innovation in the sector will determine its future effectiveness. 

Problem 3

Energy-Intensive Projects

The manufacturing sector highly relies on coal as a source of power for its great manufacturing advancement. Over the years, the sector’s demand for fossil fuel has continually grown despite its minimum energy efficiency.  Nations like China are enormous manufacturers, which guzzle great amounts of energy. They emit pollutant wastes at enormous levels. Many energy-intensive, polluting companies have migrated to China. The manufacturing sector condensed energy use by an approximate percentage of 3.61 percent because of the ricocheting energy guzzlers in 2009. Clearly, the manufacturing sector finds it difficult to maintain high production rates and conserve the environment. It strives at maintaining the urbanization and industrialization mode. Moreover, the energy-intensive projects inhibit the manufacturing sector’s efforts in pursuing green development.

Solution

Certain factors influence the energy intensity in the manufacturing sector. The activities carried out in the industry determine the rate of energy demand. Different production activities of an industry have a direct control on its energy consumption. Increasing manufacturing productivity increases energy use. The government should help in funding sources of energy for production. Manufacturing industries consume large units of electricity. Productivity expansion and economic growth in a country requires high consumption of electricity by the industries. Therefore, the government should create policies that facilitate adequate electricity use in the sector. The control of energy intensity also helps in the conservation of the environment. The manufacturing sector should maximize on the use of electricity. Electricity has substituted natural gas as the mainly used source of energy.

Evaluation

In the manufacturing sector, productivity is vital because the industries survive market competition. The government should be keen on offering education programs to the personnel in order keep up with current trends. Still, the government should embrace new technology in a country. It should fund innovative machinery that would improve productivity. The government should reduce certain costs imposed on the industries such as taxes. It should also ensure that the currency is fairly weak to increase revenues in exportation. Through increase in revenue, the manufacturing sector will have the capability to avoid cheap labor. The government should formulate policies that allow adequate consumption of electricity for energy use in the industries. Maximum use of energy would boost the rate of production in the sector.  

Conclusion

The government should highly support the manufacturing sector. The manufacturing sector provides essential products and goods to a nation. This sector faces various challenges that strengthen its tools for operation. The government should develop strategies that support the sector in development. The manufacturing sector should improve in productivity and innovation. It has created many employment opportunities in the region. Therefore, the industries should abandon the era of cheap labor. The employers require suitable wages in order to improve their lives. Still, a good wage and benefits act as incentives to the workforce. The manufacturing industries should maximize production in ways that help conserve the environment. The manufacturing sector is vital in the building of a nation’s economy.