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benefits local manufacturing

3 local benefits of investing in manufacturing

"Regions that rely on manufacturing have been forced to innovate in order to remain competitive."

Developments like automation and computerization in manufacturing have changed the way we produce. Whereas, back in the days, villages with factories had jobs for the whole town, the number of jobs has decreased in the past decade. However, the type of jobs in manufacturing have changed and in most cases are better paid. These are some local effects of manufacturing.

Better prospects

Every dollar put in manufacturing, generates in $ 1.33 in output from other sectors. This is the strongest multiplier effect that is found across sectors. Thus, investing in manufacturing is not only good for the future, but also for the achievements in other sectors. In the end, it even has a positive impact on economic development. Regions that have a steady manufacturing industry, have in most cases more job creation, more investments in new technologies and more innovations. That brings us to the second advantage.

More prosperity

Manufacturing has proven to be a solid foundation of a flourishing economy. Although many countries around the world have suffered from the economic downfall years ago, the regions that lived from manufacturing experienced an improvement much quicker than cities that relied on for example financial services. In manufacturing regions, unemployment rates often lie below national rates and incomes are higher. That makes the regions more attractive for people to live.

Brighter future

New business is important to remain successful in the future. Regions that rely on manufacturing have been forced to innovate in order to remain competitive. Due to this stimulant to investment in progress, regions are more likely to keep up with developments. In addition, people learn new skills and are able to perform better at their jobs. Being up-to-date now is a lifesaver for the future, since technologies advance exponentially and stepping in becomes more difficult every day you wait.

Of course, there is not one path to success: every region has its own features and profits from a different approach. However, we can state that manufacturing is always a good investment in the welfare of a region.

Sources:
Technology Review
The Manufacturing Institute

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