Manufacturing, Import & ExportHarbans Singh Buttar

Manufacturing

Manufacturing can be described as the process of converting raw material into finished products by hand or machinery.

Manufacturing is the act of producing something by using mechanical power or machinery with the use of labor.

The manufacturing method is essentially a complex activity, involved wide range of machinery, tools, and equipment with numerous levels of automation, like computers, robots, and different equipment.

History of Manufacturing

Industrial revolution started in the 18th century in England Extended to neighboring nations like France and Germany In late 18th century industrial revolution came to United States The impact of changing the way items were manufactured had a wide reach Industries such as textile manufacturing, mining, glass making and agriculture had

all undergone changes Machinery such as the spinning wheel to produce textiles, the water wheel used to

power machinery and the steam engine were invented

Role of Technology in the Manufacturing

Technology made significant changes to the manufacturing field Manufacturing companies are utilizing technology in new and exciting ways to

make production more effective and efficient Tasks that at one time involved manual labor are now mechanized and automated

by computer systems In addition to being high-tech, today's production facilities are clean and inviting

workplaces New Manufacturing technology that changed the world 3D printing, Nanotechnology, the internet of things, cloud computing, big data

and predictive maintenance technology

Role of IT in manufacturing

IT plays an essential part in different areas of industry and It make production process simple and more computerized

IT helps drastically in delivering just-in-time insights, swift visibility, and seamless innovation for implementing new age solutions

IT plays an important role in various sectors and industries. Similarly, IT strives to make things simpler in the manufacturing sector as well

It help to achieve these goals such as Rapid shift in production from one product to another, Faster implementation of new concepts in products

Faster delivery of products to customers, More interactions with customers, Full utilization of capital and human resources, focus on essential business needs

Elimination of unnecessary or wasteful activities ,development and implementation of it to meet these goals

History of technology

Technology changes mankind’s history From Establishment of Neolithic farming and

food-storage techniques To the development of metallurgy, weaving,

printing, and electronics, history and technology The role of the stirrup in the Middle Ages,

gunpowder in the thirteenth century, Printing in the fifteenth, the steam engine in the

eighteenth, Factories in the nineteenth, and nuclear power in

the twentieth

Role of Technology in industries

Automobiles: Technology has increasingly altered the manufacturing process for motor vehicles

Modern technologies used in advancing manufacturing for the automotive industry include

Programmable machines and tools, Supercomputing; Advanced forging techniques

Over the last 25 years, automation technology has become an essential part of automobile assembly plants.

Typical assembly plant uses several hundred robots to build and paint the vehicle frame

Cont.……

Textiles: innovation made machines processing simple, speedy and efficient

Technology like CAD, CAM, IT and Production Management encourage numerous adjustments in the women’s style and material industry

Process technology to new modes of clothing production based on the systems cost and productivity

Petroleum: 3D technology help to find and create oil & gas asset

3D increase success rate to find fewer well, less surface disturbance and waste

Effect of Import on Economy

Imports are the goods and services that are bought by residents, governments or businesses of a country, but made outside of the country

Most nations in this world would like to import less and export more

The country import to keep fulfill the needs of population and production industry

A country with a higher level of imports needs to increase their currency reserve to pay the due of imports

Any country like to become an exporter instead of an importer

Import give competition to its local companies, who always want to sell more, whether it is locally or overseas

What does United States Import?

In 2015 the USA imported goods of $2.273 trillion goods

Capital goods are the largest category which consists of $599 billion

Consumer good just covers $ 596 billion Automobiles covers $348 billion The food and Beverage cover $128 billion US imports $489 billion in services More than half of U.S. import comes from

these five countries: China, Canada, Mexico, Japan, and Germany

Industry Regulations

Automobiles: The global auto industry faces change in manufacturing technique due to innovations and change in demand for vehicles

A new technique of labor utilizations also develops new ways to adjust flexible manufacturing practices

Automobile manufacturer using new manufacturing process for redesigning vehicles to meet the unending change in taste and preferences of consumers

Automobile industry also facing environmental concerns which are included like carbon dioxide and other health risks

Textiles: Textiles must label with this following information like the fiber content, manufacturer or dealer identity, the care instructions and the country of origin

Cont.…..

Care instruction must be attached permanently to the item Labeling is not required until the final product is ready to reach final buyer Petroleum: The oil industry is counted among big industry and placed on

top ten largest industry Due to diplomacy-free trade among friendly nations is forced In the 1930s the USA energy market started and continued to 1970s Many major laws and executive actions are made to restrict competition,

control fuel prices, and limit imports

Importance of Export

Exports can be simply defined as the process of shipping or transferring goods or service produced in one country to another country for future trade or sale

a) Employment: - Development in exports can make the new employment opportunity

b) Economic growth: - Exports are a part of total demand. Rising exports will build aggregate demand and cause higher financial development

c) Current account deficit: - The quality of export has a big part in deciding the present record deficiency

What does United States Export?

In 2015 the USA exported goods of $1.598 trillion goods Capital goods are the largest category which consists of $538 billion Consumer good just covers $ 198 billion Industry supply covers $428 billion The food and Beverage cover $128 billion Automobile contribute 10% of all goods exports US export is contributing one-third in service More than half of U.S. export goes to these five countries: China, Canada,

Mexico, Japan, and Germany

Industry Regulations

Automobiles: Export of vehicles from the United States must comply with all United States statutes and regulations related to exportation

These regulations do not prohibit the export of new cars. Instead, they establish rules for exporting used cars

A company that engages in the exportation of cars must present vehicle and its identification number documents

Petroleum: In the 1970s when congress made it illegal to trade locally produced unrefined petroleum without a permit

The reason of the enactment was to moderate local oil holds and discourage the foreign importer

But in simple words, this rule does not help to achieve any of the targets

Cont.….

It has now turned out to be to a greater extent a prevention than an assistance.

Textiles: The United States is an internationally competitive maker of Textiles.

Textile industry specialists are talented and the business is best in class, with investments of $1.6 billion in all out capital uses in 2013

As of late, U.S. textiles organizations have concentrated on retooling their organizations

Discovering more powerful work procedures, and putting resources into specialty items and markets.

USA vs India

Volume: Indian auto industry is currently producing approximately 24 million vehicles in April- March 2016

There is a growth rate of 2.58% from last years production

The vehicles produce in India include commercial vehicles, passenger vehicles, three wheelers, two wheelers etc.

In USA total car sales are approximately 4.3 million and decline by 7.7%

Light-duty trucks total sales is approximately 6 million and increase by 9.1%

Total SUV/Cross-over total sales is approximately 3.8 million and it raise by 8%.

Major Industries

India Retail and Wholesale trade = 23% Agriculture = 15.7% of GDP Real Estate = 13.5% Banking & Insurance = 10% IT & ITES industry = 9% Transportation = 8.5% Machinery = 8%

USA Real Estate = 13% of GDP Professional & Business service =

12% State & Local Government = 9.1% Finance & Insurance = 7.2% Healthcare = 7.1% Durable Goods = 6.5% Wholesale trade = 6%

Major Imports

India OIL = 26.8% of total imports Gems & Precious Metal = 15.3% Electronic Equipment = 9.2% Machinery = 8.2% Organic Chemicals = 4.1% Iron & Steel = 3% Plastics = 2.9%

USA Electronic Equipment = 14.4% Machinery = 14.3% Vehicles = 12.3% OIL = 8.7% Pharmaceuticals = 3.7% Medical & Technical equipment's =

3.4% Furniture & Lighting = 2.6%

Major Exports

India Gems & Precious Metal = 14.7% of

total exports OIL = 26.8% Vehicles = 5.3% Machinery = 5% Pharmaceuticals = 4.7% Organic Chemicals = 4.3% Clothing = 3.5%

USA Machinery = 13.7% Electronic Equipment = 11.3% Aircraft = 8.7% Vehicles = 8.4% Oil = 7.1% Medical & technical = 5.5% Plastics = 4%

Conclusion

Manufacturing jobs also offer good employment with a good salary to the workers Due to technology new and better way of production It make industry reliable and automatic import export work is very difficult job than local work Imports are essential for organizations and individual buyers imported items give a superior cost or more decisions to purchasers, which expands their way

of life Import is like excessive amount of treat, it can have terrible results the more local economic or monetary activity are going on More exports mean more production, occupation and absolutely more income If any country is the only net exporter of goods it will increase its GDP