Economics of manufacturing
Published on August 31st, 2008.
According to several economists, manufacturing is a wealth producing sector of an economy, while a service sector tends to be wealth consuming. Emerging technology has provided a number of new growths in higher manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provide important material support for national infrastructure and for national defence.
Alternatively, most manufacturing can involve significant environmental and social costs. The clean up costs of dangerous waste, for example, might outweigh the benefits of a product that create it. Hazardous materials might expose workers to health risks. Developed countries control manufacturing activity with labour laws and environmental laws. In the United States, manufacturers are subject to rules by the Occupational Safety, Health Administration and the U.S Environmental Protection Agency.
In Europe, pollution taxes to balance environmental costs are another form of rule on manufacturing activity. Labour Unions and craft guild have played a historic role negotiation of worker rights and wages. Environment laws and labour protection that are obtainable in developed nations might not be obtainable in the third world. Product liability and tort law impose extra costs on manufacturing.
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