Month: September 2016

Why are Manufactured Goods and Manufacturing Jobs Important?

When it comes manufacturing in the country, media seems a bit confused. In the past, there was a bunch of stories argued that losses of manufacturing jobs over the last decade don’t matter because productivity looks so good. Now, stories like this one are suggesting that manufacturing itself doesn’t matter much after all because the sector isn’t creating enough jobs. The current argument in vogue maintains that job growth figures just haven’t been robust enough in manufacturing to warrant policies that support the sector.

However, what most authors miss is that mass employment on manufacturing is not the fundamental reason why we need a healthy and vibrant manufacturing sector. Manufacturing—or rather advanced manufacturing—is essential to the economy because it is the main source of innovation and global competitiveness for the country. Simply put, advanced manufacturing is the pipeline for new products and productivity-enhancing processes. Manufacturing goods and manufacturing jobs then fuel the country’s economic growth which actually results to the power, influence, strength and success of a country.

Image courtesy of Stuart Miles at

So for most who think that manufacturing jobs are quite modest jobs, think again. Without manufacturing jobs, there will be no production of manufacturing goods. And without these goods, there will be no economic growth. Once you scan boards like Reliance Recruitment you will see that there are categories under manufacturing jobs.

While most people think of standing on a long line of production or operating machines or packing goods, manufacturing jobs have of course other tasks that fall under it. Managerial positions in the manufacturing sect will be considered in a manufacturing jobs category on boards like Reliance Recruitment. Supervisory positions are also great manufacturing jobs you can scout from Reliance recruitment. Team leader, maintenance crew, quality control and a lot more as long as they are on the manufacturing sect will always fall under the manufacturing jobs section of boards like Reliance Recruitment.

The future and wealth of the country greatly relies on manufacturing sect through the goods. Why?

Manufactured goods are necessary for trade. We need goods to trade for foreign goods, or we rack up a large and growing trade deficit, which the country has been doing for many decades now. This will eventually threaten the value of the dollar; if the dollar becomes very cheap, imports will become very expensive, and the country won’t have the capacity to replace imports. In addition, the global trade system has become very unbalanced. So we need to stay strong in the competition with good quality goods we can bring abroad.

Manufactured goods are crucial for the service industries. Even though about two-thirds of most economies are composed of service industries, these service industries are dependent on manufactured goods for their operation and for their own technological progress. For instance, the retail and warehousing industries, which comprise about 11 percent of GNP (value-added), are in the business of selling manufactured goods. The airline industry, the telecommunications industry, and the software industry depend on airplanes, phones and broadcast equipment, and computers for both their existence and for their technological progress.

Manufacturing jobs create other jobs. Each manufacturing job supports three other jobs in the wider economy, through something called “the multiplier effect.” That is, the wages from manufacturing employees are re-spent in other parts of the economy, because manufacturing adds so much value to the economy.

Economic growth depends on manufacturing. Manufacturing productivity, that is, the goods that are output from a specific amount of input, increases by about several percent each year because technological advances are always being made for factory machinery. By contrast, service industries either have very slow productivity growth or depend, directly or indirectly, on technological progress in machinery. In addition, since machines can make other machines, what is called exponential growth, as in quickly reproducing animal populations, can take place.

A world in which all regions had a strong manufacturing base would go far to eliminate poverty and war. Manufacturing creates middle class jobs that anchor a middle class economy. Unions thrive in manufacturing industries because it is easier for the employees to bargain. If all global regions have the power to create the wealth that comes with manufacturing, there will be less opportunity for wars to break out as a result of imbalances of power.

Image courtesy of PANPOTE at