The dynamics of marketplaces across the globe have drastically changed over the last decade. Since the dawn of digitisation and the implementation of technological advancements in workspaces, industries all over the world have experienced a dramatic shift in their functionings.
One of the biggest effects of this modernisation has been experienced by the Manufacturing Industry. Synonymous with innovation, optimisation, research, development, and advancement, the manufacturing industry has seen a great evolution in the last 20 years. Keeping up with the times, manufacturing has been a prominent player in the eCommerce marketplace as well.
Now, many people wonder how exactly does manufacturing take place across various industries. Let’s take a deep dive into some of the most prominent elements in manufacturing.
The Scope of Manufacturing
Manufacturing is a part of the processes that span across any and all industries that you can think of. Whether it is agriculture, food & beverage, medicine, automotive, distribution, electronics, security, petroleum, plastic, or any other industry, manufacturing is a crucial part of their operations. For instance, the Foreign Direct Investment of the manufacturing industry in India reached over 88.5 billion dollars in 2020!
The scope of manufacturing is limitless, and it is an industry that has recorded amassing growth over the past 20 years. With the growth in demand across the spectrum, manufacturing is expected to be one of the fastest-growing industries by 2025. For instance, the Global Respiratory Ventilator Manufacturing industry reported record growth of 54.8% in its revenue in 2019-2020.
Now that you know about the scope of this colossal industry, let’s take a look at how it takes place across various domains.
Medical Manufacturing Industry
In the world of medicine, manufacturing is the first and foremost process that makes the domain operational. Whether it is the manufacturing of medicines, equipment, or anything else, the manufacturing process is crucial in carrying out any task.
Enterprises and businesses across the globe invest money on manufacturing plants that produce the instruments or products. These plants majorly work under contract with big enterprises to manufacture products, which are then distributed to the vendors or medical institutions directly.
The Distribution Industry
Have you ever wandered into a supermarket and been amazed by how their shelves are always shelved to their maximum capacity? The distribution industry has been one of the most prominent collaborators of the manufacturing industry.
Goods and products are transported via various mediums to the distribution establishments by manufacturers all across the globe. These products are usually produced in manufacturing plants that produce a singular type of product, and a multitude of manufacturers are contracted to produce and provide products to the big and small establishments like department stores, supermarkets, general stores, and much more.
The one significant boost the distribution and manufacturing industries have gotten from the technological advancements is the implementation of the Internet of Things (IoT). IoT has paved the way for much better streamlined and precise operations by easily handling big chunks of data, and ensuring that the manufacturers and distributors are in line with the expected production.
The Fabrication Industry
The fabrication industry is an umbrella term for the production of different types of metals. This involves companies that manufacture parts made of different types of metals for different purposes.
The comprehensive use of techniques such as bending, shaping, moulding, forging, casting, etc., is heavily implemented in the production plants to meet the requirements of the vendors. The fabrication industry has been a critical element in the functioning of various domains that require customised or mass-produced machinery, equipment, or parts.
The primary identifier of the fabrication industry is that it works primarily with raw materials. This is a process in itself, in which the workers obtain the raw materials through mining for copper, iron, and other types of metals. These raw materials are then used in the production of different types of products.
The fabrication industry is heavily dependent on the state of the economical healthiness of the region, and is hugely an industry that is capital-intensive. If the economic health of the region is good, then the production goes seamlessly. But in the opposite case, cost cut-down measures are taken by the industry to accommodate for the low revenue generated because of economical degradation.
One of the most known industries amongst the manufacturing domain, the electronics industry is the one responsible for the computers, laptops, smartphones, and other electronic devices you use on a daily basis.
This is perhaps, one of the only manufacturing industries where the human workforce is only a fraction of the entire workforce. The main production is done by heavy machinery that mass produces parts of the main products, and then they are further assembled by different pieces of machinery with minimal human intervention.
One key highlight of this industry is that the companies working in this domain usually start off small, and even with optimum growth, prefer to keep the human workforce at a minimum. For instance, tech startups all across the globe are known to be operating in small team sizes of 20-30 employees. One great example of this is Microsoft and Apple, both of which started off in a small workspace with just 2-5 employees!
Petroleum and Chemicals Industry
One of the most comprehensive and diverse industries in the manufacturing domain, the petroleum and chemical industry is a prominent player in the normal functioning of a normal person’s day to day life.
Comprising of the production of things like gasoline, diesel, petrol, pesticides, plastics, soaps, and much more, the importance of this industry is known very well. The chemicals industry, in particular, is responsible for the production of plastics, that have a plethora of uses across many industries across the world. For instance, plastics are used for making disposables, but also used in making some high-end machinery equipment like MRI scanners.
On the other hand, the petroleum industry is often underestimated in terms of its uses apart from automobiles (petrol/diesel) and cooking (gasoline). Petroleum is also used in the production of pesticides, paints, and soaps. It also plays a key role in helping many other manufacturing domains function well, like the distribution industry is greatly assisted by the petroleum industry in the form of transportation services. Similarly, the fabrication industry also is assisted by the chemical industry in the form of high-end plastics that are used in the heavy pieces of machinery used to make metal products.
Manufacturing is a key part of the automotive industry. This industry comprises of a vast number of processes, and they all start with the manufacturing process.
The production process of various types of automobiles starts off with the manufacturing of individual parts like shafts, pipes, engines, motors, etc. These parts are manufactured by the company itself, or external partners who provide them these manufactured parts. Then, these parts are assembled in the assembly part of the production process.
But this is not the only extent of manufacturing in this industry. The body and chassis are also some things that are manufactured and used in the end part of the production process of automobiles.
Now that you’re aware of the grand scope of the manufacturing industry and how it takes place across various domains, you can explore further about the process of manufacturing in the domain that you’re interested in. Manufacturing has, and will continue to be one of the most prominent sectors in the world, as it is a crucial element for any and all companies in some form or the other.
Q. How does manufacturing factor into the various industries?
A. Manufacturing is one of the first steps in the production of any product. Right from obtaining the raw materials to moulding them into what the end product needs to be, manufacturing is a key element for any industry across the world.
Q. Is manufacturing a process that can be skipped if you are an eCommerce business?
A. Manufacturing is a crucial part of any business, whether physical or digital. Even if your eCommerce business only acts as a vendor to sell products online, these products have to be manufactured somewhere. Hence, it is important that eCommerce businesses consider the importance of monitoring the manufacturing process to ensure optimum quality products.
Q. Is manufacturing still as relevant after the COVID-19 spread as it was before?
A. Although the manufacturing industry has taken a huge hit from the COVID pandemic like all other industries, it is still a prominent industry on which many other industries depend upon. As the situation starts to slowly get better, the manufacturing industry will be back with full capability to cater to businesses across the globe.
Q. Do the manufacturing industry and banking industry work together?
A. Yes, the manufacturing industry is very crucial to the banking industry. The production of currency, bank vaults, cards, and much more is taken care of by the manufacturing industry. Hence, it plays a very important role in the banking industry.