Manufacturing forms the basis of what most people think of as “industry”. It means using materials to make a product. There are often many stages of manufacturing between the raw material and the finished product. Many Indus, tries involving the assembly of component parts, which will have been made by any number of separate companies.
Manufacturing is the processing of raw material or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Large-scale manufacturing allows for the mass production of goods using assembly line processes and advanced technologies as core assets. Efficient manufacturing techniques enable manufacturers to take advantage of economies of scale, producing more units at a lower cost.
Manufacturing is a value-adding process allowing businesses to sell finished products at a higher cost over the value of the raw materials used. It is often reported on by the conference board, and well examined by economists.
Humans have historically sought ways to turn raw materials, such as ore, wood, and foodstuffs into finished products, such as metal goods, furniture, and processed foods. By refining and processing this raw material into something more useful, individuals and businesses have added value. This added value increased the price of finished products, rendering manufacturing a profitable endeavor. People began to specialize in the skills required to manufacture goods, while others provided funds to businesses to purchase tools and materials.
How products are manufactured has changed over time. The amount and type of labor required in manufacturing vary according to the type of product being produced. On one end of the spectrum, humans manufacture products by hand or through the use of basic tools using more traditional processes. This type of manufacturing is associated with decorative art, textile production, leatherwork, carpentry, and some metalwork. At the other end of the spectrum, manufacturers use mechanization to produce items on a more industrial scale. This type of manufacturing does not require as much manual manipulation of materials and is often associated with mass production.
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