It is undeniable that manufacturing is the creation of finished goods through the use of tools, human labor, machinery, and chemical processing. It allows businesses to sell finished products at a higher cost than the value of the raw materials used. Efficient manufacturing techniques enable manufacturers to take advantage of economies of scale, producing more units at a lower cost.
Manufacturing industries are able to reduce redundancies, improve the quality of work, update equipment and procedures, set realistic goals and streamline intake supply chain and distribution channels. Manufacturing industry plays crucial role to economic growth.
Recently The Ethiopian Herald interviewed Teshome Hurrisa, an industrial engineer graduated from Addis Ababa University, to have a professional comment about the issue under discussion.
He said, “Manufacturing is the process of turning raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Manufacturing is an integral and huge part of the economy involved the process and refining of raw materials, such as ore, wood, and foodstuffs, into finished products, such as metal goods, furniture, and processed foods.”
He said that, manufacturing industry has long been recognized as a primary driver of economic growth and economic stability. It creates well-paying jobs, fosters technological innovation, and stimulates investments in downstream industries. The multiplier effect of manufacturing extends beyond direct economic contributions, creating a ripple effect that benefits local communities, generates tax revenues, and fuels overall economic prosperity.
As to him, manufacturing sector is imbued with three important characteristics like pulling along services, promoting the incentives of savings and accelerating the pace of technological accumulation. In addition, an increased share of the manufacturing sector in middle-income economies can enhance the utilization of human capital and economic institutions. Manufacturing has traditionally played a key role in the economic growth of developing countries.
The manufacturing sector offers special opportunities for economies of scale, which are less available in agriculture or services. Technological advance is concentrated in the manufacturing sector and diffuses from there to other economic sectors such as the service sector. The transfer of resources from agriculture to manufacturing provides a structural change bonus, of course, he added.
He said, “Manufacturing industry is an important economic sector and the share of large scale manufacturing industry in employment, income generation and tax revenue is larger than small scale manufacturing. The manufacturing process encompasses a diverse range of activities, including research and development, engineering, assembly, packaging, and distribution.”
It is vital because it not only provides essential goods for consumers, but also creates employment opportunities and stimulates economic growth. By fostering innovation and technological advancements, manufacturing industries enhance productivity, competitiveness, and overall economic performance, he opined.
As to Teshome, the manufacturing sector plays a crucial role in driving societal progress. Through the production of goods, manufacturers contribute to improving the quality of life by providing access to essential products and services. From medical equipment that saves lives to sustainable energy solutions that combat climate change, manufacturing has a profound impact on society as a whole.
Sustainability is a growing concern in the manufacturing industry. Additionally, sustainable manufacturing production will become increasingly important as the world grapples with the challenges of climate change and environmental degradation. Embracing renewable energy sources, reducing waste, and prioritizing eco-friendly materials will be key drivers in the evolution of the manufacturing sector.
As technology continues to advance, the boundaries between physical and digital manufacturing will blur. This integration of digital technologies and physical manufacturing will lead to increased efficiency, reduced downtime, and improved product quality, he added.
As far as Teshome, the manufacturing industry is a dynamic and ever-evolving sector that plays a crucial role to the economy. From its historical roots to the adoption of advanced technologies, manufacturing continues to shape the universe people live in. By embracing innovation, technological adaptation and collaboration, the future of manufacturing holds immense potential for growth and positive change.
He said “The manufacturing industry is thus a complex and dynamic sector that constantly faces a range of challenges and opportunities. From navigating global supply chain complexities to addressing environmental concerns, manufacturers must adapt and innovate to thrive in today’s competitive landscape.”
“Manufacturers need to invest in training programs that focus on developing skills in areas such as robotics and programming. By empowering their workforce with these new skills, manufacturers can enhance productivity, improve product quality, and drive innovation. Additionally, fostering a culture of continuous learning and providing opportunities for career advancement can help attract and retain top talent in the industry,” Teshome added.
It is obvious that, he said forward-thinking manufacturers are finding innovative solutions to integrate sustainability into their operations. From adopting renewable energy sources to developing eco-friendly materials, these companies are pioneering sustainable production that reduce waste, conserve resources, and minimize environmental impact.
Growth in the manufacturing sector can be hindered by various factors, including limited access to capital, regulatory hurdles, and market fluctuations. Governments and industry stakeholders must collaborate to identify and overcome these barriers, fostering an environment that supports manufacturing growth through investment incentives, streamlined regulations, and market stability.
By providing financial support and incentives, the government can encourage manufacturers to invest in new technologies, expand their operations, and create job opportunities. Streamlining regulations and reducing bureaucratic red tape can also facilitate innovation and improve the ease of doing business. Additionally, collaboration between industry stakeholders, such as manufacturers, suppliers, and trade associations, can help address common challenges and advocate for policies that promote the sector growth, he underscored.
He also said that, strategic government policies are essential in shaping the manufacturing landscape. By prioritizing infrastructure development, policymakers can ensure that manufacturers have access to efficient transportation networks, reliable utilities, and modern facilities. This infrastructure is vital for manufacturers to operate smoothly and deliver products to consumers in a timely manner.
Manufacturers must comply with international standards to ensure product safety, quality, and compatibility in global markets. Adhering to these standards promotes trust among consumers, enhances market access, and fosters fair competition. They also must implement safety protocols, provide adequate training, and maintain a safe working environment. By prioritizing safety, manufacturers not only protect their employees but also enhance their reputation as responsible and reliable businesses, he added.
According to Teshome, the effectiveness of industrial policies on national economies is a topic of great importance. The government and policymakers must regularly evaluate the impact of these policies on employment rates, economic growth, and industrial competitiveness to ensure continuous improvement and optimize outcomes. By embracing sustainable manufacturing, governments can support the transition to a more environmentally friendly and resource-efficient manufacturing sector.
As to him, sustainability will be at the forefront of future manufacturing development. Manufacturers will embrace renewable energy sources, implement circular economy principles, and adopt sustainable production methods to mitigate environmental impacts. The integration of sustainable practices will not only fulfill societal expectations but also unlock opportunities for cost effectiveness, improved brand reputation, and long-term business resilience.
Manufacturing has the power to shape urban development and infrastructure. It clusters often emerge in cities, promoting urbanization, job creation, and infrastructure development. By attracting investments and supporting local businesses, manufacturing can stimulate urban growth and enhance the quality of life for urban dwellers.
The sector growth presents an opportunity to address inequality and promote inclusive economic development. By creating jobs, stimulating small and medium-sized enterprises, and investing in workforce development, manufacturing can uplift marginalized communities and contribute to reducing income disparities.
In sum, manufacturing industry serves as the engine of economic growth and innovation, catalyzing advancements across various industries and driving socio-economic progress. Understanding the fundamentals of manufacturing, embracing emerging technologies, addressing challenges, and ensuring sustainable practices are all critical for the sector to thrive in an ever-changing global scenario. By recognizing the profound impact of manufacturing on economic advancement and societal wellbeing, Ethiopia can cultivate an environment that fosters innovation, empowers workers through establishing their own professional association which defend their interest and paves the way for a prosperous and sustainable future. Strategies for inclusive and equitable manufacturing development involve targeted efforts to provide equal access to education, training, and employment opportunities. Collaboration between governments, industry stakeholders, and educational institutions is crucial to ensure that under represented communities have the resources and support necessary to fully participate in the manufacturing workforce. Furthermore, fostering diversity and inclusion within the manufacturing industry will cultivate a more resilient and innovative ecosystem.
BY MENGESHA AMARE
THE ETHIOPIAN HERALD TUESDAY 9 JULY 2024
