Manufacturing
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Manufacturing is the creation or production of
goods In economics, goods are anything that is good, usually in the sense that it provides welfare or utility to someone. Alan V. Deardorff, 2006. ''Terms Of Trade: Glossary of International Economics'', World Scientific. Online version: Deardorffs ...
with the help of equipment, labor,
machine A machine is a physical system that uses power to apply forces and control movement to perform an action. The term is commonly applied to artificial devices, such as those employing engines or motors, but also to natural biological macromol ...
s,
tool A tool is an Physical object, object that can extend an individual's ability to modify features of the surrounding environment or help them accomplish a particular task. Although many Tool use by animals, animals use simple tools, only human bei ...
s, and
chemical A chemical substance is a unique form of matter with constant chemical composition and characteristic properties. Chemical substances may take the form of a single element or chemical compounds. If two or more chemical substances can be combin ...
or
biological process Biological processes are those processes that are necessary for an organism to live and that shape its capacities for interacting with its environment. Biological processes are made of many chemical reactions or other events that are involved in ...
ing or
formulation Formulation is a term used in various senses in various applications, both the material and the abstract or formal. Its fundamental meaning is the putting together of components in appropriate relationships or structures, according to a formula ...
. It is the essence of the
secondary sector of the economy In macroeconomics, the secondary sector of the economy is an economic sector in the three-sector theory that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in constructi ...
. The term may refer to a range of human activity, from
handicraft A handicraft is a traditional main sector of craft making and applies to a wide range of creative and design activities that are related to making things with one's hands and skill, including work with textiles, moldable and rigid material ...
to high-tech, but it is most commonly applied to
industrial design Industrial design is a process of design applied to physical Product (business), products that are to be manufactured by mass production. It is the creative act of determining and defining a product's form and features, which takes place in adva ...
, in which
raw material A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials/Intermediate goods that are feedstock for future finished ...
s from the primary sector are transformed into finished goods on a large scale. Such goods may be sold to other manufacturers for the production of other more complex products (such as aircraft, household appliances, furniture,
sports equipment Sports equipment, also called sporting goods, are the tools, materials, apparel, and gear, which varies in shapes, size, and usage in a particular sport. It includes balls, nets, rackets, protective gears like helmets, goggles, etc. Since th ...
or
automobiles A car, or an automobile, is a motor vehicle with wheels. Most definitions of cars state that they run primarily on roads, Car seat, seat one to eight people, have four wheels, and mainly transport private transport#Personal transport, peopl ...
), or distributed via the
tertiary industry The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors in the three-sector model (also known as the economic cycle). The others are the primary sector (raw materials) and the seco ...
to
end user In product development, an end user (sometimes end-user) is a person who ultimately uses or is intended to ultimately use a product. The end user stands in contrast to users who support or maintain the product, such as sysops, system administrato ...
s and consumers (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers).
Manufacturing engineering Manufacturing engineering or production engineering is a branch of professional engineering that shares many common concepts and ideas with other fields of engineering such as mechanical, chemical, electrical, and industrial engineering. Manufac ...
is the field of engineering that designs and optimizes the manufacturing process, or the steps through which raw materials are transformed into a
final product In production, a final product or finished product is a product that is ready for sale,Wouters, Mark; Selto, Frank H.; Hilton, Ronald W.; Maher, Michael W. (2012): ''Cost Management: Strategies for Business Decisions'', International Edition, ...
. The manufacturing process begins with
product design Product design is the process of creating new Product (business), products for businesses to sell to their customers. It involves the generation and development of ideas through a systematic process that leads to the creation of innovative products ...
, and materials specification. These materials are then modified through manufacturing to become the desired product. Contemporary manufacturing encompasses all intermediary stages involved in producing and integrating components of a product. Some industries, such as
semiconductor A semiconductor is a material with electrical conductivity between that of a conductor and an insulator. Its conductivity can be modified by adding impurities (" doping") to its crystal structure. When two regions with different doping level ...
and
steel Steel is an alloy of iron and carbon that demonstrates improved mechanical properties compared to the pure form of iron. Due to steel's high Young's modulus, elastic modulus, Yield (engineering), yield strength, Fracture, fracture strength a ...
manufacturers, use the term fabrication instead. The manufacturing sector is closely connected with the engineering and industrial design industries.


Etymology

The
Modern English Modern English, sometimes called New English (NE) or present-day English (PDE) as opposed to Middle and Old English, is the form of the English language that has been spoken since the Great Vowel Shift in England England is a Count ...
word ''manufacture'' is likely derived from the
Middle French Middle French () is a historical division of the French language that covers the period from the mid-14th to the early 17th centuries. It is a period of transition during which: * the French language became clearly distinguished from the other co ...
'' manufacture'' ("process of making") which itself originates from the
Classical Latin Classical Latin is the form of Literary Latin recognized as a Literary language, literary standard language, standard by writers of the late Roman Republic and early Roman Empire. It formed parallel to Vulgar Latin around 75 BC out of Old Latin ...
'' manū'' ("hand") and Middle French '' facture'' ("making"). Alternatively, the English word may have been independently formed from the earlier English ''manufacture'' ("made by human hands") and ''fracture''. Its earliest usage in the English language was recorded in the mid-16th century to refer to the making of products by hand.


History and development


Prehistory and ancient history

Human ancestors manufactured objects using stone and other tools long before the emergence of ''
Homo sapiens Humans (''Homo sapiens'') or modern humans are the most common and widespread species of primate, and the last surviving species of the genus ''Homo''. They are Hominidae, great apes characterized by their Prehistory of nakedness and clothing ...
'' about 200,000 years ago. The earliest methods of
stone tool Stone tools have been used throughout human history but are most closely associated with prehistoric cultures and in particular those of the Stone Age. Stone tools may be made of either ground stone or knapped stone, the latter fashioned by a ...
making, known as the Oldowan " industry", date back to at least 2.3 million years ago, with the earliest direct evidence of tool usage found in
Ethiopia Ethiopia, officially the Federal Democratic Republic of Ethiopia, is a landlocked country located in the Horn of Africa region of East Africa. It shares borders with Eritrea to the north, Djibouti to the northeast, Somalia to the east, Ken ...
within the Great Rift Valley, dating back to 2.5 million years ago. To manufacture a stone tool, a " core" of hard stone with specific flaking properties (such as
flint Flint, occasionally flintstone, is a sedimentary cryptocrystalline form of the mineral quartz, categorized as the variety of chert that occurs in chalk or marly limestone. Historically, flint was widely used to make stone tools and start ...
) was struck with a hammerstone. This flaking produced sharp edges that could be used as tools, primarily in the form of choppers or scrapers. These tools greatly aided the early humans in their
hunter-gatherer A hunter-gatherer or forager is a human living in a community, or according to an ancestrally derived Lifestyle, lifestyle, in which most or all food is obtained by foraging, that is, by gathering food from local naturally occurring sources, esp ...
lifestyle to form other tools out of softer materials such as bone and wood. The
Middle Paleolithic The Middle Paleolithic (or Middle Palaeolithic) is the second subdivision of the Paleolithic or Old Stone Age as it is understood in Europe, Africa and Asia. The term Middle Stone Age is used as an equivalent or a synonym for the Middle P ...
, approximately 300,000 years ago, saw the introduction of the prepared-core technique, where multiple blades could be rapidly formed from a single core stone. Pressure flaking, in which a wood, bone, or antler punch could be used to shape a stone very finely was developed during the
Upper Paleolithic The Upper Paleolithic (or Upper Palaeolithic) is the third and last subdivision of the Paleolithic or Old Stone Age. Very broadly, it dates to between 50,000 and 12,000 years ago (the beginning of the Holocene), according to some theories ...
, beginning approximately 40,000 years ago. During the
Neolithic The Neolithic or New Stone Age (from Ancient Greek, Greek 'new' and 'stone') is an archaeological period, the final division of the Stone Age in Mesopotamia, Asia, Europe and Africa (c. 10,000 BCE to c. 2,000 BCE). It saw the Neolithic Revo ...
period, polished
stone tool Stone tools have been used throughout human history but are most closely associated with prehistoric cultures and in particular those of the Stone Age. Stone tools may be made of either ground stone or knapped stone, the latter fashioned by a ...
s were manufactured from a variety of hard rocks such as
flint Flint, occasionally flintstone, is a sedimentary cryptocrystalline form of the mineral quartz, categorized as the variety of chert that occurs in chalk or marly limestone. Historically, flint was widely used to make stone tools and start ...
,
jade Jade is an umbrella term for two different types of decorative rocks used for jewelry or Ornament (art), ornaments. Jade is often referred to by either of two different silicate mineral names: nephrite (a silicate of calcium and magnesium in t ...
, jadeite, and greenstone. The polished axes were used alongside other stone tools including projectiles, knives, and scrapers, as well as tools manufactured from organic materials such as wood, bone, and antler. Copper
smelting Smelting is a process of applying heat and a chemical reducing agent to an ore to extract a desired base metal product. It is a form of extractive metallurgy that is used to obtain many metals such as iron-making, iron, copper extraction, copper ...
is believed to have originated when the technology of pottery
kiln A kiln is a thermally insulated chamber, a type of oven, that produces temperatures sufficient to complete some process, such as hardening, drying, or Chemical Changes, chemical changes. Kilns have been used for millennia to turn objects m ...
allowed sufficiently high temperatures. The concentration of various elements such as arsenic increase with depth in copper ore deposits and smelting of these ores yields
arsenical bronze Arsenical bronze is an alloy in which arsenic, as opposed to or in addition to tin or other constituent metals, is combined with copper to make bronze. The use of arsenic with copper, either as the secondary constituent or with another component ...
, which can be sufficiently work-hardened to be suitable for manufacturing tools.
Bronze Bronze is an alloy consisting primarily of copper, commonly with about 12–12.5% tin and often with the addition of other metals (including aluminium, manganese, nickel, or zinc) and sometimes non-metals (such as phosphorus) or metalloid ...
is an alloy of copper with tin; the latter of which being found in relatively few deposits globally delayed true tin bronze becoming widespread. During the
Bronze Age The Bronze Age () was a historical period characterised principally by the use of bronze tools and the development of complex urban societies, as well as the adoption of writing in some areas. The Bronze Age is the middle principal period of ...
, bronze was a major improvement over stone as a material for making tools, both because of its mechanical properties like strength and ductility and because it could be cast in molds to make intricately shaped objects. Bronze significantly advanced shipbuilding technology with better tools and bronze nails, which replaced the old method of attaching boards of the hull with cord woven through drilled holes. The
Iron Age The Iron Age () is the final epoch of the three historical Metal Ages, after the Chalcolithic and Bronze Age. It has also been considered as the final age of the three-age division starting with prehistory (before recorded history) and progre ...
is conventionally defined by the widespread manufacturing of weapons and tools using iron and steel rather than bronze. Iron smelting is more difficult than tin and copper smelting because smelted iron requires hot-working and can be melted only in specially designed furnaces. The place and time for the discovery of iron smelting is not known, partly because of the difficulty of distinguishing metal extracted from nickel-containing ores from hot-worked meteoritic iron. During the growth of the ancient civilizations, many ancient technologies resulted from advances in manufacturing. Several of the six classic simple machines were invented in Mesopotamia. Mesopotamians have been credited with the invention of the wheel. The wheel and axle mechanism first appeared with the potter's wheel, invented in
Mesopotamia Mesopotamia is a historical region of West Asia situated within the Tigris–Euphrates river system, in the northern part of the Fertile Crescent. Today, Mesopotamia is known as present-day Iraq and forms the eastern geographic boundary of ...
(modern Iraq) during the 5th millennium BC. Egyptian paper made from
papyrus Papyrus ( ) is a material similar to thick paper that was used in ancient times as a writing surface. It was made from the pith of the papyrus plant, ''Cyperus papyrus'', a wetland sedge. ''Papyrus'' (plural: ''papyri'' or ''papyruses'') can a ...
, as well as
pottery Pottery is the process and the products of forming vessels and other objects with clay and other raw materials, which are fired at high temperatures to give them a hard and durable form. The place where such wares are made by a ''potter'' is al ...
, were mass-produced and exported throughout the Mediterranean basin. Early construction techniques used by the Ancient Egyptians made use of bricks composed mainly of clay, sand, silt, and other minerals.


Medieval and early modern

The
Middle Ages In the history of Europe, the Middle Ages or medieval period lasted approximately from the 5th to the late 15th centuries, similarly to the post-classical period of global history. It began with the fall of the Western Roman Empire and ...
witnessed new inventions, innovations in the ways of managing traditional means of production, and economic growth.
Papermaking Papermaking is the manufacture of paper and cardboard, which are used widely for printing, writing, and packaging, among many other purposes. Today almost all paper is Pulp and paper industry, made using industrial machinery, while handmade pape ...
, a 2nd-century Chinese technology, was carried to the Middle East when a group of Chinese papermakers were captured in the 8th century. Papermaking technology was spread to
Europe Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...
by the
Umayyad conquest of Hispania The Muslim conquest of the Iberian Peninsula (; 711–720s), also known as the Arab conquest of Spain, was the Umayyad Caliphate, Umayyad conquest of the Visigothic Kingdom, Visigothic Kingdom of Hispania in the early 8th century. The conquest re ...
. A paper mill was established in Sicily in the 12th century. In Europe the fiber to make pulp for making paper was obtained from linen and cotton rags. Lynn Townsend White Jr. credited the spinning wheel with increasing the supply of rags, which led to cheap paper, which was a factor in the development of printing. Due to the casting of cannon, the
blast furnace A blast furnace is a type of metallurgical furnace used for smelting to produce industrial metals, generally pig iron, but also others such as lead or copper. ''Blast'' refers to the combustion air being supplied above atmospheric pressure. In a ...
came into widespread use in France in the mid 15th century. The blast furnace had been used in China since the 4th century BC. The stocking frame, which was invented in 1598, increased a knitter's number of knots per minute from 100 to 1000.


First and Second Industrial Revolutions

The
Industrial Revolution The Industrial Revolution, sometimes divided into the First Industrial Revolution and Second Industrial Revolution, was a transitional period of the global economy toward more widespread, efficient and stable manufacturing processes, succee ...
was the transition to new manufacturing processes in Europe and the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
from 1760 to the 1830s. This transition included going from hand production methods to machines, new chemical manufacturing and iron production processes, the increasing use of steam power and water power, the development of
machine tool A machine tool is a machine for handling or machining metal or other rigid materials, usually by cutting, Boring (manufacturing), boring, grinding (abrasive cutting), grinding, shearing, or other forms of deformations. Machine tools employ some s ...
s and the rise of the mechanized factory system. The Industrial Revolution also led to an unprecedented rise in the rate of population growth. Textiles were the dominant industry of the Industrial Revolution in terms of employment, value of output and capital invested. The
textile industry The textile industry is primarily concerned with the design, production and distribution of textiles: yarn, cloth and clothing. Industry process Cotton manufacturing Cotton is the world's most important natural fibre. In the year 2007, th ...
was also the first to use modern production methods. Rapid industrialization first began in Britain, starting with mechanized spinning in the 1780s, with high rates of growth in steam power and iron production occurring after 1800. Mechanized textile production spread from Great Britain to continental Europe and the United States in the early 19th century, with important centres of textiles, iron and coal emerging in Belgium and the United States and later textiles in France. An economic recession occurred from the late 1830s to the early 1840s when the adoption of the Industrial Revolution's early innovations, such as mechanized spinning and weaving, slowed down and their markets matured. Innovations developed late in the period, such as the increasing adoption of locomotives, steamboats and steamships, hot blast iron smelting and new technologies, such as the
electrical telegraph Electrical telegraphy is point-to-point distance communicating via sending electric signals over wire, a system primarily used from the 1840s until the late 20th century. It was the first electrical telecommunications system and the most wid ...
, were widely introduced in the 1840s and 1850s, were not powerful enough to drive high rates of growth. Rapid economic growth began to occur after 1870, springing from a new group of innovations in what has been called the
Second Industrial Revolution The Second Industrial Revolution, also known as the Technological Revolution, was a phase of rapid Discovery (observation), scientific discovery, standardisation, mass production and industrialisation from the late 19th century into the early ...
. These innovations included new steel making processes, mass-production,
assembly line An assembly line, often called ''progressive assembly'', is a manufacturing process where the unfinished product moves in a direct line from workstation to workstation, with parts added in sequence until the final product is completed. By mechan ...
s,
electrical grid An electrical grid (or electricity network) is an interconnected network for electricity delivery from producers to consumers. Electrical grids consist of power stations, electrical substations to step voltage up or down, electric power tran ...
systems, the large-scale manufacture of machine tools and the use of increasingly advanced machinery in steam-powered factories. Building on improvements in vacuum pumps and materials research,
incandescent light bulb An incandescent light bulb, also known as an incandescent lamp or incandescent light globe, is an electric light that produces illumination by Joule heating a #Filament, filament until it incandescence, glows. The filament is enclosed in a ...
s became practical for general use in the late 1870s. This invention had a profound effect on the workplace because factories could now have second and third shift workers. Shoe production was mechanized during the mid 19th century. Mass production of sewing machines and
agricultural machinery Agricultural machinery relates to the machine (mechanical), mechanical structures and devices used in farming or other agriculture. There are list of agricultural machinery, many types of such equipment, from hand tools and power tools to tractor ...
such as reapers occurred in the mid to late 19th century. The mass production of bicycles started in the 1880s. Steam-powered factories became widespread, although the conversion from water power to steam occurred in England earlier than in the U.S.


Modern manufacturing

Electrification Electrification is the process of powering by electricity and, in many contexts, the introduction of such power by changing over from an earlier power source. In the context of history of technology and economic development, electrification refe ...
of factories, which had begun gradually in the 1890s after the introduction of the practical DC motor and the AC motor, was fastest between 1900 and 1930. This was aided by the establishment of electric utilities with central stations and the lowering of electricity prices from 1914 to 1917.
Electric motors An electric motor is a machine that converts electrical energy into mechanical energy. Most electric motors operate through the interaction between the motor's magnetic field and electric current in a wire winding to generate Laplace force i ...
allowed more flexibility in manufacturing and required less maintenance than line shafts and belts. Many factories witnessed a 30% increase in output owing to the increasing shift to electric motors. Electrification enabled modern mass production, and the biggest impact of early mass production was in the manufacturing of everyday items, such as at the Ball Brothers Glass Manufacturing Company, which electrified its
mason jar A Mason jar, also known as a canning jar, preserves jar or fruit jar, is a glass jar used in home canning to food preservation, preserve food. It was named after American tinsmith John Landis Mason, who patented it in 1858. The jar's mouth has a ...
plant in
Muncie, Indiana Muncie ( ) is a city in Delaware County, Indiana, United States, and its county seat. It is located in East Central Indiana about northeast of Indianapolis. At the 2020 census, the city's population was 65,195, down from 70,085 in the 2010 c ...
, U.S. around 1900. The new automated process used glass blowing machines to replace 210 craftsman glass blowers and helpers. A small electric truck was now used to handle 150 dozen bottles at a time whereas previously used hand trucks could only carry 6 dozen bottles at a time. Electric mixers replaced men with shovels handling sand and other ingredients that were fed into the glass furnace. An electric overhead crane replaced 36 day laborers for moving heavy loads across the factory. Mass production was popularized in the late 1910s and 1920s by Henry Ford's
Ford Motor Company Ford Motor Company (commonly known as Ford) is an American multinational corporation, multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. T ...
, which introduced electric motors to the then-well-known technique of chain or sequential production. Ford also bought or designed and built special purpose machine tools and fixtures such as multiple spindle drill presses that could drill every hole on one side of an engine block in one operation and a multiple head
milling machine Milling is the process of machining using rotary cutters to remove material by advancing a cutter into a workpiece. This may be done by varying directions on one or several axes, cutter head speed, and pressure. Milling covers a wide variety of ...
that could simultaneously machine 15 engine blocks held on a single fixture. All of these machine tools were arranged systematically in the production flow and some had special carriages for rolling heavy items into machining positions. Production of the
Ford Model T The Ford Model T is an automobile that was produced by the Ford Motor Company from October 1, 1908, to May 26, 1927. It is generally regarded as the first mass-affordable automobile, which made car travel available to middle-class Americans. Th ...
used 32,000 machine tools. Lean manufacturing, also known as just-in-time manufacturing, was developed in Japan in the 1930s. It is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It was introduced in Australia in the 1950s by the British Motor Corporation (Australia) at its Victoria Park plant in Sydney, from where the idea later migrated to Toyota. News spread to western countries from Japan in 1977 in two English-language articles: one referred to the methodology as the "Ohno system", after
Taiichi Ohno was a Japanese people, Japanese industrial engineering, industrial engineer and businessman. He is considered to be the father of the Toyota Production System, which inspired Lean Manufacturing in the U.S. He devised the Muda (Japanese term)#Toyo ...
, who was instrumental in its development within Toyota. The other article, by Toyota authors in an international journal, provided additional details. Finally, those and other publicity were translated into implementations, beginning in 1980 and then quickly multiplying throughout the industry in the United States and other countries. The concept of world-class manufacturing has been promoted by author Richard J. Schonberger.


Manufacturing strategy

According to a "traditional" view of manufacturing strategy, there are five key dimensions along which the performance of manufacturing can be assessed: cost,
quality Quality may refer to: Concepts *Quality (business), the ''non-inferiority'' or ''superiority'' of something *Quality (philosophy), an attribute or a property *Quality (physics), in response theory *Energy quality, used in various science discipli ...
, dependability, flexibility and
innovation Innovation is the practical implementation of ideas that result in the introduction of new goods or service (economics), services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a n ...
. In regard to manufacturing performance, Wickham Skinner, who has been called "the father of manufacturing strategy", adopted the concept of "focus", with an implication that a business cannot perform at the highest level along all five dimensions and must therefore select one or two competitive priorities. This view led to the theory of "trade offs" in manufacturing strategy.Wassenhove, L. van and Corbett, C. J.
"Trade-Offs? What Trade Offs? (A Short Essay on Manufacturing Strategy
, p. 2, ''
INSEAD INSEAD ( ; French: ''Institut européen d'administration des affaires'') is a non-profit business school with locations in Europe (Fontainebleau, France), Asia (Singapore), the Middle East (Abu Dhabi, UAE) and North America (San Francisco, USA ...
'', published April 6, 1991, accessed September 27, 2023
Similarly, Elizabeth Haas wrote in 1987 about the delivery of value in manufacturing for customers in terms of "lower prices, greater service responsiveness or higher quality". The theory of "trade offs" has subsequently being debated and questioned, but Skinner wrote in 1992 that at that time "enthusiasm for the concepts of 'manufacturing strategy' adbeen higher", noting that in
academic paper Academic publishing is the subfield of publishing which distributes Research, academic research and scholarship. Most academic work is published in academic journal articles, books or Thesis, theses. The part of academic written output that is n ...
s, executive courses and
case studies A case study is an in-depth, detailed examination of a particular case (or cases) within a real-world context. For example, case studies in medicine may focus on an individual patient or ailment; case studies in business might cover a particular fi ...
, levels of interest were "bursting out all over". Manufacturing writer Terry Hill has commented that manufacturing is often seen as a less "strategic" business activity than functions such as marketing and
finance Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Admin ...
, and that manufacturing managers have "come late" to business strategy-making discussions, where, as a result, they make only a reactive contribution.


Industrial policy


Economics of manufacturing

Emerging technologies Emerging technologies are technology, technologies whose development, practical applications, or both are still largely unrealized. These technologies are generally innovation, new but also include old technologies finding new applications. Emer ...
have offered new growth methods in advanced manufacturing employment opportunities, for example in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and also for national defense. On the other hand, most manufacturing processes may involve significant social and environmental costs. The clean-up costs of
hazardous waste Hazardous waste is waste that must be handled properly to avoid damaging human health or the environment. Waste can be hazardous because it is Toxicity, toxic, Chemical reaction, reacts violently with other chemicals, or is Corrosion, corrosive, ...
, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. These costs are now well known and there is effort to address them by improving
efficiency Efficiency is the often measurable ability to avoid making mistakes or wasting materials, energy, efforts, money, and time while performing a task. In a more general sense, it is the ability to do things well, successfully, and without waste. ...
, reducing waste, using industrial symbiosis, and eliminating harmful chemicals. The negative costs of manufacturing can also be addressed legally. Developed countries regulate manufacturing activity with
labor laws Labour laws (also spelled as labor laws), labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship be ...
and environmental laws. Across the globe, manufacturers can be subject to regulations and pollution taxes to offset the environmental costs of manufacturing activities. Labor unions and craft guilds have played a historic role in the negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the
third world The term Third World arose during the Cold War to define countries that remained non-aligned with either NATO or the Warsaw Pact. The United States, Canada, Taiwan, Japan, South Korea, the Southern Cone, NATO, Western European countries and oth ...
.
Tort law A tort is a civil wrong, other than breach of contract, that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. Tort law can be contrasted with criminal law, which deals with crime ...
and
product liability Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause. Although the word "product" has ...
impose additional costs on manufacturing. These are significant dynamics in the ongoing process, occurring over the last few decades, of manufacture-based industries relocating operations to "developing-world" economies where the costs of production are significantly lower than in "developed-world" economies.


Finance

From a financial perspective, the goal of the manufacturing industry is mainly to achieve cost benefits per unit produced, which in turn leads to cost reductions in product prices for the market towards end customers. This relative cost reduction towards the market, is how manufacturing firms secure their profit margins.


Safety

Manufacturing has unique health and safety challenges and has been recognized by the National Institute for Occupational Safety and Health (NIOSH) as a priority industry sector in the National Occupational Research Agenda (NORA) to identify and provide intervention strategies regarding occupational health and safety issues.


Manufacturing and investment

Surveys and analyses of trends and issues in manufacturing and investment around the world focus on such things as: * The nature and sources of the considerable variations that occur cross-nationally in levels of manufacturing and wider industrial-economic growth; * Competitiveness; and * Attractiveness to foreign direct investors. In addition to general overviews, researchers have examined the features and factors affecting particular key aspects of manufacturing development. They have compared production and investment in a range of Western and non-Western countries and presented case studies of growth and performance in important individual industries and market-economic sectors. On June 26, 2009, Jeff Immelt, the CEO of
General Electric General Electric Company (GE) was an American Multinational corporation, multinational Conglomerate (company), conglomerate founded in 1892, incorporated in the New York (state), state of New York and headquartered in Boston. Over the year ...
, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and
consumer spending Consumer spending is the total money spent on final goods and services by individuals and households. There are two components of consumer spending: induced consumption (which is affected by the level of income) and autonomous consumption (which ...
to drive demand. Further, while U.S. manufacturing performs well compared to the rest of the U.S. economy, research shows that it performs poorly compared to manufacturing in other high-wage countries. A total of 3.2 million – one in six U.S. manufacturing jobs – have disappeared between 2000 and 2007. In the UK, EEF the manufacturers organisation has led calls for the UK economy to be rebalanced to rely less on financial services and has actively promoted the manufacturing agenda.


Major manufacturing nations

According to the
United Nations Industrial Development Organization The United Nations Industrial Development Organization (UNIDO) (French: Organisation des Nations unies pour le développement industriel; French/Spanish acronym: ONUDI) is a specialized agency of the United Nations that assists countries in e ...
(UNIDO),
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
is the manufacturer with the highest output worldwide in 2023, producing 28.7% of the total global manufacturing output, followed by the
United States of America The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 states and a federal capital district, Washington, D.C. The 48 contiguo ...
,
Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
,
Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
, and
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
. UNIDO also publishes a Competitive Industrial Performance (CIP) Index, which measures the competitive manufacturing ability of different nations. The CIP Index combines a nation's gross manufacturing output with other factors like high-tech capability and the nation's impact on the world economy. Germany topped the 2020 CIP Index, followed by China,
South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korea, Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and t ...
, the United States, and Japan. In 2023, the manufacturing industry in the United States accounted for 10.70% of the total national output, employing 8.41% of the workforce. The total value of manufacturing output reached $2.5 trillion. In 2023, Germany's manufacturing output reached $844.93 billion, marking a 12.25% increase from 2022. The sector employed approximately 5.5 million people, accounting for around 20.8% of the workforce.


List of countries by manufacturing output

These are the top 50 countries by total value of manufacturing output in U.S. dollars for its noted year according to
World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
:


See also

* Discrete manufacturing * Outline of manufacturing * Process manufacturing *
3D printing 3D printing, or additive manufacturing, is the construction of a three-dimensional object from a CAD model or a digital 3D model. It can be done in a variety of processes in which material is deposited, joined or solidified under computer ...
* Urban manufacturing


References


Further reading

*


External links

*
EEF, the manufacturers' organisation – industry group representing uk manufacturers

Enabling the Digital Thread for Smart Manufacturing

Evidences of Metal Manufacturing History

Grant Thornton IBR 2008 Manufacturing industry focus

How Everyday Things Are Made
video presentations

of the National Occupational Research Agenda, US, 2018. {{Authority control Production and manufacturing