When the economy has lagged in the past, manufacturing jobs have helped stimulate both local and national economies by creating more wealth for the community. It does this by providing a variety of jobs with livable wages, decent benefits and stability, and helping other suppliers and retailers stay afloat in their businesses.
When many companies are floundering and uncertain, the manufacturing industry continues to create goods that fulfill both personal and professional needs around the country.
A Wealth-Producing Industry
Economists separate industries into two categories: wealth producing and wealth consuming. Although many service-oriented businesses, such as education, insurance, or healthcare tend to consume wealth without providing the stimulation a floundering economy needs, goods-oriented businesses will encourage and create wealth production. Goods can be provided at a cheaper and quicker rate than many services, and a boom in the manufacturing industry opens up more jobs and creates more wealth than almost any other business.
Upon creation of a manufacturing company, a variety of jobs will become available in the community. These jobs can range from factory workers, to transportation positions, to business professionals. Manufacturing will also improve the number of jobs in other industries, as it creates products for retail outlets to market and sell.
A large manufacturing industry will consistently purchase bulk items such as wood, metals, cotton, and other materials needed to construct their goods. These large purchases spread the wealth from one company to several outside suppliers, stimulating the economy and encouraging growth in other businesses.
Manufacturing jobs tend to offer higher wages and better benefits than jobs in service industries. When a community has higher-paying jobs available, the residents will begin distributing more of their disposable income to struggling businesses such as restaurants, entertainment, or media. These ripple effects will travel through the economy and positively affect all local industries.
Facing this tough economy is hard on businesses and individuals alike, but patience and a bit of strategy can help you make it through. Hiring temporary staff may be a less expensive solution to keeping your business afloat while still providing the service that you are known for. If you would like more information on our staffing services, please visit us online at Labor Systems Job Center or call 877-836-7527.
No Light at the End of the Tunnel (New America Foundation)
How Critical Are Manufacturing Jobs to the U.S. Economy (Physics Today)
The Economic Overview of Manufacturing (Working for America Institute)