The Manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products.
Establishments in the Manufacturing sector are often described as plants, factories, or mills and characteristically use power-driven machines and materials-handling equipment. However, establishments that transform materials or substances into new products by hand or in the worker’s home and those engaged in selling to the general public products made on the same premises from which they are sold, such as bakeries, candy stores, and custom tailors, may also be included in this sector. Manufacturing establishments may process materials or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing.
Manufacturing is the production of goods for use or sale using labor and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users – the “consumers”.
Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation.
Modern manufacturing includes all intermediate processes required for the production and integration of a product’s components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead.
History and development
In its earliest form, manufacturing was usually carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world, the guild system protected the privileges and trade secrets of urban artisans.
Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture (and continues to do so in places). Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.
Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm.
Companies in this industry manufacture a wide variety of goods; major product groups include food and beverages, chemicals, machinery, transportation equipment, and computers and electronics.
Major companies include Pfizer, Unilever, Procter & Gamble, and Tyson Foods (all based in the US); Nestlé (Switzerland), Sanofi (France), Siemens (Germany), and Toyota Motor (Japan).
The global manufacturing sector generates about $12 trillion in annual revenue, according to the UN. Top manufacturing countries include China, the US, Japan, Germany, South Korea, India, Italy, France, and the UK. Leading exporting countries include China, the US, Germany, the UK, Japan, France, the Netherlands, and South Korea. Growth drivers include rapid industrialization in the developing world, along with the use of technology to improve products and supply chains.
The US manufacturing sector consists of about 256,000 companies with combined annual sales of about $5.4 trillion.
The US manufacturing industry appears back on track and is likely to surpass growth expectations for two consecutive years in a row. Deloitte projections based on the Oxford Economic Model (OEM) indicate the 2018 manufacturing GDP numbers are likely to register a 3 percent upswing over 2017, the highest annual growth levels recorded since 2010.2 This year was also notable in terms of net employment gain, with the industry adding 300,000 new jobs.3 Meanwhile, the US Manufacturing PMI in September 2018 stood at 55.6 on the back of increasing industry output and new order gains.4 This brings us to an all-important question: Will the industrial manufacturing industry continue to remain the bright spot in the economy and a leader in global manufacturing performance?
The answer is uncertain, given today’s complicated times. Deloitte’s economic analysis indicates that manufacturing GDP should increase by 3.7 percent in 2019, and based on the confidence of industry leaders, this could be a feasible outcome. According to the latest Manufacturers’ Outlook Survey, optimism soared this past year at 93.9 percent, the highest yearly average in the history of the survey.5 An analysis by the Manufacturers Alliance for Productivity and Innovation (MAPI) indicates that the US manufacturing sector is likely to regain output levels lost during the Great Recession before the middle of 2019.6
Yet there are indications that the outlook may not be all bright. The manufacturing industry is currently dealing with one of the tightest labor markets in history, exacerbated by high job-opening levels (more than 400,000 since January 2018) and historic low unemployment rates.7 Also complicating the market momentum are the recent activity around trade agreements and tariffs and rising raw material costs, which have the potential to send disruptions throughout the manufacturing industry in the coming months.
Companies in this industry manufacture a wide variety of goods; major product groups include food and beverage, chemicals, machinery, transportation equipment, and computers and electronics.
The top manufacturing countries include China with $4 trillion, accounting for about 30% of the world total, followed by the US at $2.3 trillion (about 17%), Japan at $1 trillion (about 7%), Germany at $800 billion (about 6%), and South Korea at $460 billion (3%).
The US manufacturing sector consists of about 290,000 establishments with combined annual sales of about $6 trillion.
THIS PROFILE IS COURTESY US DEPARTMENT OF LABOR AND WIKIPEDIA.ORG –CLICK HERE FOR MORE ON THIS PROFILE
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Strategy And Synergy Session 8 with Dr. Ken Walley
Date: 03/25/2025
Time: 9.30 AM US Eastern Time
Discussion Questions:
1. What are some of the obvious ethics/practices of the industry or entity in the industry that violate scriptures?
2. What are the notable complaints of those who patronize this industry or entity in this industry?
3. What services or products of this industry or entity of this industry ultimately hurt people?
4. Does the industry or entity in the industry violate Environmental Social and Governance ESG sustainability goals in any way?
5. How does this industry or entity in this industry compete that is flawed in your opinion?
6. What are some of the tactics of this industry or entity in this industry that does not augur well for other industries and the overall economy?
3 Responses to “Manufacturing Industry – Nestle, Procter & Gamble, Unilever, Sanofi, 3-M and others”
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March 18th, 2025 at 9:15 pm
The way forward for us as believers is to stay true to whatever product, revelation or recipe God gives us when we start a business. We must never come to the point where we begin to behave like the world, putting money and profit above our Christian values and compassion. Can we hold on to our vision/product and not end up selling it to an unbeliever who will pervert whatever vision God gave us? We must not succumb to the pressure from the world to sell our visions?
Secondly, when we find ourselves working at a place of influence, we must not operate/conduct business like the world does. We must operate beyond the laws of the land by being ethical and allowing the principals of God’s word to guide our works and actions. As the Bible states, we have a responsibility to take care of the Earth. Are our actions taking care of the planet or destroying it? The over usage of plastic products in our society today is leading to many diseases like cancer. So then, if each one of us can decides to make a little change, we can help eliminate the toxic waste that is polluting our planet. The oceans are being polluted with plastic waste and this is having an effect on ocean life. Let’s all play our part in preserving the planet we call home
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March 21st, 2025 at 9:28 am
In the eighties and nineties, many businesses in the United States saw cheap labor in China as an opportunity to outsource their manufacturing to Chinese firms. As a result, many manufacturing firms in the US closed shop and investors shifted focus to building malls for marketing goods produced in China and elsewhere. Today there is another regime here in the US that has reintroduced tariffs that would make goods manufactured overseas expensive. Assuming there is a regime change in the next four, eight or twelve years that reverses the tariffs, what will happen to those who are now considering the prospects of local manufacturing in the US?
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March 21st, 2025 at 10:12 pm
Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation. in this current economic system, many manufacturing entities are in flux. where they were able to follow a predictable path, not so right now. Many manufacturing industries do not always follow guidelines that would benefit the planet or its people. Manufacturing challenges can be any obstacle that hinders operations and impedes growth for manufacturing businesses. These challenges, such as regulatory compliance, supply chain disruptions, and data security, directly affect many aspects of a manufacturing business, including production rates, productivity, and profitability. By understanding the unique issues facing the manufacturing sector and analyzing how operations are directly affected by these challenges, business leaders can devise and implement innovative solutions to create a more resilient operation.
The environmental, social, and governance (ESG) controversies, defined as bad behavior that calls into question the commitment to the firm under the media and captures the attention of investors causing conflicts with sustainable business practices, have received increasing attention from academics of several fields. implications of the literature analysis and providing some opportunities for future research. This research provides to an understanding of the ESG controversies context and shows insights for future lines of research.
The landscape of American manufacturing has undergone significant changes over the last few decades. Once a powerhouse of industrial activity, the U.S. has seen a decline in manufacturing jobs, with many companies relocating production to countries where labor costs are lower. However, recent trends indicate a potential resurgence in domestic manufacturing, fueled by advances in technology, shifting consumer preferences, and a renewed interest in supporting local economies. This section examines the current state of manufacturing in the U.S., highlighting both the challenges and opportunities that exist. On one hand, American manufacturers face stiff competition from countries like China, India, and Mexico, where lower labor costs and fewer regulations make it easier to produce goods cheaply. This has led to job losses and factory closures in the U.S., contributing to a growing debate about whether American manufacturing can remain competitive on a global scale.
Trump’s proposed trade policy shifts could affect sectors such as consumer products, technology, industrials, agriculture, and life sciences. Companies have already been adapting their strategies. Trump’s trade policy tools include tariff authority (e.g., Section 301), executive orders, sanctions and embargoes (e.g., International Emergency Economic Powers Act), trade agreement negotiations, trade promotion authority, and trade enforcement. Some actions can be taken immediately, while others will require congressional involvement. Increasing inventory: Companies may increase inventory levels to avoid the immediate impact of tariffs, though this could lead to higher holding and logistics costs.
Relocating production: Some companies are considering moving manufacturing operations to countries less likely to be affected by tariffs, though this can be costly and disruptive.
Passing costs to consumers: Companies may raise prices to offset tariff costs, though this could affect competitiveness.
Customs valuation planning: Reducing customs value can lower duties owed, but requires careful planning and collaboration.
Employers have a legal and ethical responsibility to ensure workers are not subject to sexual harassment or other forms of workplace hostility and to treat all employees fairly. If your manufacturing environment has mostly male workers, you have to be especially vigilant that female employees feel welcome and comfortable. To meet both the legal and ethical challenges, institute detailed policies against harassment and make sure all employees comply.
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