There’s no doubt that manufacturing has seen many changes over the last few decades. As countries and industries become more technologically advanced, many of the old manufacturing methods are replaced with more efficient and productive means to production. As a result, manufacturing job roles are seeing a change as well.
The Effect of a Growing Economy on the Country’s GDP
As the global economy and technology progress, manufacturing is experiencing some interesting, yet notable, changes as well. One of the most important changes was mentioned in a recent report from McKinsey & Company. In that report, McKinsey analysts noted the growth patterns of manufacturing based on a country’s economic and industrial position.
As countries become more industrialized, manufacturing makes up 20 to 35% of GDP. However, as those countries progress and grow economically, consumers begin spending more money in other sectors, helping increase the growth there, which in turn pushes manufacturing’s GDP comparison downward. That doesn’t necessarily mean manufacturing as a whole suffers, but it no longer acts as such an economic powerhouse for a country’s GDP.
The Effect of a Growing Economy on Manufacturing Job Roles
What that transition does do is introduce new opportunities within manufacturing for employment and productivity. As consumers spend more money in other sectors, technological advancements improve, which are in turn used within the manufacturing industry. Efficiency and productivity grow in manufacturing, which in turn shifts many of the job roles from labor to administration and support. So while there is certainly continued growth in manufacturing, it often happens faster in the service side, rather than the labor side.
The United States, for instance, is in a very mature state of manufacturing. Because of that, many manufacturers are seeing improved productivity due to advancements in technology and processes. It also means there is a growing trend in the United States for service-side job opportunities within manufacturing. So while manufacturing is improving its productivity and in turn displacing some labor-side positions, it’s still considered the key to job growth by many Americans.
As discussed in our previous post, manufacturing jobs in Arkansas have seen a steady increase over the early part of 2017, and that’s expected to continue into 2018. Overall, it’s a healthy time for manufacturing, even if the industry is experiencing changes and transitions in how the jobs and roles are parsed out.
We will undoubtedly continue to see these transitions happen, and watch as manufacturing’s role continues to evolve with time. And through that evolution, manufacturing will continue to maintain its position as a job-creation leader both in the United States and the world.
How Steel Sales Can Help Your Business
For more information about the future of manufacturing, or to learn how you can make your manufacturing business more efficient and productive, contact our team at Steel Sales today.
Source: http://www.mckinsey.com/business-functions/operations/our-insights/the-future-of-manufacturing
