Chapter 1 (Transcripts created by Tulsa Community College from content created by 180 Skills LLC)

An Inside Look at Manufacturing

 Manufacturing is the engine that fuels our economy. The manufacturing industry provides the products we need to live as well as rewarding and challenging careers,

An Inside Look at Manufacturing

Manufacturing provides the products we need in every aspect of our lives. In this chapter, you will get an inside look at manufacturing and how important it is to our economy.

At the end of this chapter, you will be able to

  • Define manufacturing
  • Describe the importance of manufacturing
  • Describe how manufacturing impacts people and the environment
  • Identify the challenges and rewards of working in manufacturing
  • Identify different types of manufacturers

Manufacturing Defined

  • What is Manufacturing?
  • Manufacturing is the process of transforming raw materials into finished or semi-finished products using machines, tools, and labor.

Why is manufacturing important?

  • Manufacturing supplies the products we use every day.
  • Look around you. Your cell phone, laptop, car, food, and clothes are all manufactured items.
  • Manufacturing makes it possible for us to work, play, travel, eat, and communicate.
  • Unless it comes from Mother Nature, most of the things you use are manufactured.

Life Without Manufacturing

  • Can you imagine living without the products you use every day?
  • What would you do without your car, cell phone, house, refrigerator, and your favorite foods?
  • Without manufacturing you would be living in the dark ages without lights, heat, cars, cell phones, computers, clothes, and packaged foods.

Manufacturing Provides Jobs

  • Besides increasing our quality of life by providing products we need, manufacturing is one of the world’s largest employers, employing nearly 62 million people worldwide.
  • In the U.S., about 17.2 million people were employed in manufacturing in 2010.
  • Manufacturing companies employee people in a variety of disciplines including
  • Production
  • Engineering
  • Marketing, sales & customer support
  • Information Technology
  • Finance
  • Human Resources
  • Management
  • In addition, about 4.7 million service sector jobs depend on manufacturing.

Why Work in Manufacturing?

  • Better Pay and Benefits
  • Manufacturers provide better pay and benefits than other industries. The total compensation for manufacturing employees is approximately 17 percent higher than those of other industries.
  • More Challenging Careers
  • Global competition and an increased emphasis on quality require employees who are creative problem solvers.
  • Highly Desired Skills & Training
  • Advances in manufacturing equipment, materials, and processes has increased the need for highly skilled employees. Manufacturers fund training to help employees gain the skills they need to succeed.

Manufacturing Strengthens the Economy

  • Manufacturing is the engine that drives the economy.
  • Besides generating jobs, manufacturing generates wealth.
  • For every $1 spent on manufacturing, $1.48 is put back into the economy.
  • This means that the manufacturing company, as well as its employees, buys goods and services within the community, further strengthening the economy.

Manufacturing is Green

  • Manufacturing plays a critical role on solving environmental challenges faced by our word today.  Manufacturing companies are designing new technologies and equipment for
  • Alternative energies
  • Reduced energy consumption
  • Reduced greenhouse gas emissions
  • In addition, U.S. manufacturers are reducing their footprint on the environment by
  • Recycling materials in production
  • Reducing energy consumption
  • Reducing air and water contamination.


Manufacturing Provides New Technology

  • Manufacturing companies fund 2/3 of the research and development conducted in the US.
  • The money invested in research and development has contributed to the creation of new products and technologies as well as improvements to existing products and technology.
  • Have you ever thought about how your smart phone evolved from a telephone?
  • Research and development will continue to advance the products and technology of today to create the products of tomorrow.
  • Can you imagine what smart phones will be like in 10 years?

Other Industries Need Manufacturing

  • How would buildings be built without bulldozers, hammers, drywall, nails, paint, and all the other items required in construction?
  • How could airline companies and airports operate without jets, baggage carousels, air traffic control equipment, and ticket kiosks?
  • Manufacturing provides the materials, tools, and equipment needed by other industries.

Types of Manufactures

  • There are over 760,000 manufacturing companies throughout the U.S.
  • Manufacturing companies are located in large cities as well as small towns.
  • Some manufacturers are large, employing thousands of employees, while others only employ a few.
  • About half of the people employed in US manufacturing work for small companies with less than 500 employees.

Suppliers vs. Manufacturers of Finished Goods

  • Some manufacturers produce finished goods to be sold directly to consumers.
  • Other manufacturers, called suppliers or vendors, only produce parts and materials to be used by other manufacturing companies.
  • Some manufacturers are suppliers as well as manufacturers of finished goods.

Manufacturing Sub-industries

There are many manufacturing sub-industries including

  • Food & Beverage
  • Textiles
  • Wood & Paper
  • Chemicals
  • Petroleum & Coal
  • Plastics & Rubber
  • Primary & Fabricated Metals
  • Manufacturing Machinery
  • Appliances & Electrical Products
  • Transportation
  • Medical, Precision, & Optical Products
  • Computers & Electronic Products

Click on the boxes to learn more about each manufacturing sub-industry.

I did not add the information about each of the subindustries.

Where Do You Fit In?

  • As you learned in this chapter, manufacturing companies are almost as diverse as the products they produce.
  • Was there a particular manufacturing industry that caught your attention?
  • Can you see yourself helping to produce a miniature smart phone, luxury jumbo jet, or the complex manufacturing equipment used to produce these products and others?

Things to remember

  • Manufacturing is the process of transforming raw materials into finished or semi-finished products using machines, tools, and labor.
  • Manufacturing provides the products we need to work, play, travel, and communicate.
  • Manufacturing strengthens our economy and provides jobs to millions of Americans.
  • Manufacturing jobs require advanced skills and provide higher pay than other industries.
  • Some manufacturers are suppliers or vendors for other manufacturing companies.
  • There are many manufacturing sub-industries which produce the products that consumers and other industries need.

An Inside Look at Manufacturing

In this chapter, you have learned how manufacturing impacts our economy and provides the products we need in every aspect of our lives. You also explored the different types of manufacturing companies.

Transcripts created by Tulsa Community College from content created by 180 Skills LLC which are licensed under CC by 3.0 

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