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How Important is Manufacturing in The US?

Manufacturing is absolutely vital in maintaining the structural integrity of the United States. With manufacturing positions being readily available for everyday workers, individuals with the necessary skills can improve their abilities while providing an invaluable service to society.

What manufacturing does is provide a foundation for these hard workers and a structure for many to follow that is built on time honored traditions. What manufacturing does for the states as a whole is give reason for factories to remain open and continue to provide service to inhabitants of each and every state in the nation.

Manufacturing Requires Knowledge

What most people do not at first realize is that manufacturing is a thinker’s job. It requires a lot of knowledge in order to produce a worthwhile product. Most Americans likely think that a factory worker’s job is not something that is very engaging.

What may come across most people’s minds when they think of factories is a mechanical process of parts being snapped into place by giant machines along a lengthy conveyor belt. While there are certain areas of specific factories where this may be the case, that does not apply to all factory positions. Not every factory worker’s job is to mindlessly press buttons in order to make a machine perform a specific function. In fact, there are plenty of manufacturing facilities that require an expert’s eye for detail and a surgeon’s steady hand for tool work.

Manufacturing Requires Strategic Decisions

Manufacturing facilities are ripe with brilliant minds that are working tirelessly everyday to come up with even better solutions for improving working methods. Scientific experiments are conducted at many of the top factory locations, in order to test out all of the best ways to perform everyday functions.

Managers who work at manufacturing facilities and larger factories are as much a teacher as they are a scientific developer. By showing their workers how to perform better ways of working, factory managers from all states are improving the way that products are being produced in a factory lineup.

They Create Trade and Boost Economies

Goods that are manufactured everyday are necessary for common trade. The United States is constantly engaging in trade agreements with other countries. Without manufacturing being properly funded and managed, we will risk being out of touch with modern trade practices with our affiliated countries of interest, says Thomasnet. Trades performed in the “goods” category is 80% of what American manufacturers produce, according to the World Trade Organization.

Compared to the 20% of trade that the United States offers for services, goods highly outweigh the latter in matter of importance. With that said, it makes sense to treat trade of manufactured goods within the United States with respect to its importance to those with whom American manufacturing companies are trading with. If this area of trade is not appreciated accordingly, then the United States risks developing an even larger trade deficit with foreign goods.

Foreign Trading Is Key

What does upsetting the balance of foreign trade to to the American dollar? It lessens the worth of it. If the American dollar is considered to be a currency that is worth less and less, then that will directly affect the price of imports.

Import prices will skyrocket, which will make it impossible for the U.S. to then make up for the deficit of imports to and from the United States. Other nations have the tendency to model their own currency worth to that of the fluctuating worth of the American dollar. Trading with money, rather than manufactured goods, is affecting the worth of the dollar in the long run.

Manufacturing Creates Jobs

With manufacturing, jobs are guaranteed to be generated. It is estimated that for every manufacturing job generated, three other jobs are also generated through what is referred to as “the multiplier effect.” Through this effect, a sort of domino effect is put into place that allows new types of jobs to crop up due to the support of the manufacturing job created.

Since manufacturing adds so much value to the economy as a whole, what it does is send even more dollars out to three other jobs that exist elsewhere in the economy. With that said, it is obvious that economic growth depends a lot on the successful growth of manufacturing.

The Bottom Line

Productivity from manufacturing sees a 3% increase each and every year in the United States. How is this possible? It’s all thanks to the technological advancements that we continue to make in the realm of manufacturing with the passing of the years. Compared to service industries, manufacturing sees a steady and rapid incline of growth if given the chance.

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