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The paper aims to contribute to the renaissance of a manufacturing oriented view of economic system. It begins by providing a critical review of the main turning points in the manufacturing versus services debate evaluating the analytical and empirical arguments deployed in favor of each view. It goes on to describe the profound transformations in industrial systems and the redistribution of manufacturing production across countries over the last two decades which challenge some of the assumptions on which the service oriented view is built.

This section concludes by reviewing old and new rationales supporting a manufacturing oriented view. Finally the negative consequences of de-linking manufacturing production from services off-shoring are explored highlighting the systematic disruption of the bundle of technological linkages constituting the industrial commons. All mistakes remain ours.

However, recent years have witnessed a renewed interest in manufacturing production its potential as an engine of technological dynamism and a source of the wealth of nations for which it was previously recognised.

In particular, deindustrialisation, loss of strategic manufacturing industries, increasing trade imbalances, decreasing technological dynamism and industrial competitiveness have been major concerns in advanced economies. This paper aims to contribute to the renaissance of a manufacturing oriented view in two ways. By sketching the tensions behind the service oriented view that have arisen as a result of the profound transformations in industrial systems and the redistribution of manufacturing production across countries over the last two decades the current financial crisis and resulting manufacturing loss being just the peak of these global trends , a systematisation of old and new rationales supporting a manufacturing oriented view is presented.

There are two main reasons for this insufficiency. Disentangling these new realities and, thus, identifying the new manufacturing oriented rationales, make an integration of economics, engineering and operations management necessary. This second issue is addressed by analysing the negative consequences of de-linking manufacturing production from services off-shoring which systematically disrupt the bundle of technological linkages constituting the industrial commons.

Finally, to what extent can a sustained process of economic growth rely on the increasing relative expansion of the service sector? Until the late s, the debate was dominated by scholars working in the classical economics tradition who supported what we call here a manufacturing oriented view. Then, in the subsequent two decades of the twentieth century s a service oriented view came to dominate and remained central to the academic and policy debate until the recent financial crisis.

These two opposing views emerged in, and may partially reflect, the worldwide process of structural change and manufacturing development that started after the World War II. In due course latecomers including Germany, Russia and Japan joined the industrialising nations, while the developing world both colonies and non-colonies remained oriented towards primary production Gerschenkron, ; Maddison, This group took the opportunity to start their own manufacturing development process through import substitution because of the contraction of world trade during the Great Depression s.

This allowed them to enter the worldwide manufacturing development race Wade, ; Chang, and ; Amsden, and ; Reinert, At a first glance, three sets of stylised facts emerge as characteristic features of the last half of the twentieth century. The manufacturing development path followed by countries in Africa was on average almost flat, reaching its peak in and decreasing to 11 per cent again a return to figures seen in During the second half of the last century, few East Asian economies experienced a sustained catching up process responsible for the quantitative redistribution of world manufacturing value added shares and world manufactures trade.

In the three most successful countries in East Asia, namely China, The Republic of Korea and China Taiwan Province taken as a whole accounted for one fifth of world manufacturing value added shares and world manufactures trade. Figure 1. Worldwide manufacturing development paths changes in the shares of manufacturing in GDP at current prices per country groups over the period Figure 2. The manufacturing development trajectories followed by China and India or Brazil are also very different.

Participation in the global industrialisation race was regarded as a sine qua non for countries that wished to experience accelerated economic growth, increasing labour productivity and socio-economic welfare improvements. Classical development economists provided two sets of explanations for manufacturing being the engine of economic growth. The systematisation of a manufacturing oriented view was mainly due to the seminal work of Nicholas Kaldor and Albert Hirschman amongst others.

These showed the existence of increasing returns within manufacturing and the reasons why manufacturing was the engine of aggregate growth. The first of these laws states that the faster the rate of manufacturing growth, the faster the rate of economic growth of the overall system.

Finally, according to the third law, aggregate productivity growth is positively associated with the growth of employment in manufacturing and negatively related with the growth of non-manufacturing employment.

Firstly, there are relatively broader opportunities for capital accumulation and intensification in manufacturing in comparison to agriculture and services. Secondly, there are greater possibilities of exploiting economies of scale induced by large-scale production and technical indivisibilities, both within and across industries. Finally there are the higher learning opportunities in manufacturing production through which embodied and disembodied technological progress is generated.

Unlike agriculture, the industrial sector is characterised by both strong backward and forward linkages and thus emerges as the main driver of development 3. However, sectors are not just linked through the set of physical relations of supply and demand. The embodied and disembodied knowledge generated within the manufacturing sector connects within and across sectors through so-called spillover effects.

The latter take the form of product and process technologies hardware on which software-producing and software-using service sectors are based see Szirmai, This opens up dynamic opportunities for the development of manufacturing production.

Moreover, flourishing production of manufacturing tradeables was considered a fundamental condition for avoiding balance of payments crises. This was particularly the case where countries cannot rely on a high-value primary commodity export sector and the income elasticity of demand for its imports is higher than the foreign income elasticity of demand for its exports Prebisch, ; Landesmann However the manufacturing oriented view came under attack during the s and was gradually abandoned in the following decade when the service oriented view became dominant.

Since the s the most advanced economies have lost on average almost half of their manufacturing sector as a percentage of GDP as a result of an accelerated process of de-industrialisation. Finally services often grew at a faster long-term rate than manufacturing during the s once again this was particularly marked in countries like India , which suggested that services can actually substitute for manufacturing as engines of growth.

The basic intuition is that as people increase their income they begin to demand relatively more services. The falling demand for manufacturing goods thus naturally leads so the argument goes to the shrinking of the manufacturing sector 5. Most fundamentally, the idea that productivity increases are limited in service industries came under sustained attack with the flourishing of modern services such as finance, engineering, distribution.

The increasing application of information and communication technologies ICTs has allowed major productivity improvements in services and the marginal cost of providing services has collapsed, showing the potential for scale effects. They also emphasised the possibilities opened up by tradable knowledge-based services such as engineering, consulting and banking. It was suggested that developing countries now experience a historically novel pattern of structural change that is determined by a new technological paradigm.

According to this explanation, services such as ICT, business support and finance are replacing or complementing manufacturing in a pro-growth way. Little emphasis is given to the fact that developing countries run the risk of premature de-industrialisation.

And of course this was precisely what characterised the manufacturing-led pattern of growth see Cohen and Zysman, ; Rowthorn and Coutts, 6. Here the following set of policies is recommended with the explicit aim of strengthening the potential of services to foster employment, productivity and innovation:. Open domestic services markets to create new job opportunities and foster innovation and productivity. Take unilateral and multilateral steps to open international markets to trade and investment in services.

Reform labour markets to enable employment creation and adjustment to a growing services economy. Adapt education and training policies to rapidly changing requirements for new skills.

Provide a fiscal environment that is conducive to the growth of services. We must investigate whether de-industrialisation defined as a decline in the share of manufacturing employment in a given country is indeed caused by the growing irrelevance of manufacturing as service oriented advocates suggest.

It occurs because a number of activities from design and data processing to transport, cleaning and security have been contracted out by manufacturing firms to specialist service providers. Thus, in contrast with what the service oriented view, deindustrialisation has not been a sudden process occurring with declines in manufacturing output, productivity and demand.

Rather, employment losses have involved different industries and countries in different ways with no exception for high tech manufacturing Pilat et al. In the very period when deindustrialisation began , manufacturing production and value added in fact continued to experience strong growth and demand for manufacturing goods was sustained. Most tellingly, productivity growth in manufacturing remained high in many OECD countries while deindustrialisation was occurring and there is evidence that the manufacturing sector continued driving the process of innovation and technological change.

The recent analysis of the structural evolution of the United States economy provided in Spence and Hlatshwayo confirms these general trends in mature industrial economies. The bundle of interactions that connects manufacturing and services is becoming increasingly dense, given the outsourcing of services activities from manufacturing firms to service providers but also the changing technological linkages between manufacturing and services in particular production-related services.

The existence of strong intersectoral interactions and interdependencies between manufacturing and services is something that was originally revealed by input-output analyses performed by Park , Park and Chan and Park The influential work by Se-Hark Park and Kenneth Chan addressed this issue by examining separately the linkages existing between disaggregated groups of services and various manufacturing industries Their analysis was based on the classification proposed by Gershuny and Miles which divides service activities into two major groups: marketed services and non-marketed services, and then breaks these down into further sub-categories including the sub-category of producer services which, in turn, is constituted by specialised technical services which support production processes.

Specifically, it tends to generate a two to three-fold greater output impact on the economy because of the denser backward and forward linkages formed within and around it Precisely these results have been recently confirmed by Guerrieri and Meliciani This is because different manufacturing industries require different producer services and tend to use them with different degrees of intensity. Their analysis also highlights how the cumulative expansion of services can follow both inter- and intra-sectoral patterns as the same service producers are also intensive users of these producer services.

Figure 3. However, in contrast, the manufacturing value added MVA in developing countries continued growing at least with respect to the zero growth rate scenario so there was a total manufacturing gain of In other words, MVA has multiplied by 2.

This means that the process of sectoral re-composition that mature industrialised economies have been experiencing since the s accelerated as a result of the financial crisis. The speed at which mature industrialised economies in particular US and countries in the Euro area have been losing manufacturing shares in GDP is remarkable.

During the period , traditional industrialised countries registered on average a significant shrinking of their manufacturing base as measured by the fundamental industrial diagnostic, MVA per capita. The Republic of Korea is the only country among the industrialised nations that increased its MVA performance. In contrast, amongst developing countries, China and India witnessed an overall expansion of their manufacturing base.

Figure 4. Table 1. Winners and losers in a time of global financial crisis, This is rooted in the following arguments:. Producing tradable manufactured goods is essential to maintain the trade balance , given that around two-thirds of world trade is still in manufactured goods according to UN Comtrade, the figure was Manufacturing is the main engine of economic growth, thanks to its higher productivity and scope forinnovation.

This study found that the share of manufacturing is positively related to economic growth from to in particular for poorer countries , while services have a significant positive effect only until and with coefficients far lower than those of manufacturing. Interestingly in the period the coefficient for services becomes insignificant.

Thus we explore the kind of linkages that make manufacturing central for economic dynamism. In the second section, we investigate the systemic technological linkages which affect the scope for innovation of the overall economic system.

This second issue is going to be addressed by analysing the negative consequences of de-linking manufacturing production from services off-shoring which systematically disrupt the bundle of technological linkages constituting the industrial commons.

There are various reasons why machine tool industries are at the very core of the manufacturing engine Fransman Secondly, the fact that machine tools critically enable cost reductions, quality improvements and productivity increases, and reduction in set-up production times.

Thirdly, machine tools have a wide range of applications in major industries such as mechanical engineering and construction, computers, automotive and aerospace, wind turbines and satellite and all manufacturing processes involving metals.

In recent years, there have been many different studies into the purchasing habits of different demographics throughout society. It was

Manufacturing Best Practices is the community that enables manufacturing companies and their vendor partners to learn, share and grow together. A healthy manufacturing base is the motor that keeps the global economy in motion. Whether an operation is focused on mass production or total customization, quality expertise is required for a manufacturer to thrive. Manufacturing Best Practices is dedicated to helping companies and their supplier partners maintain the edge their operations need to streamline processes, lower costs, develop successful new products and evolve with the dynamic marketplace. Knighthouse Media provides marketing and media services to the construction, energy and resources, manufacturing, retail and food and supply chain business-to-business industries.

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Industry News and Trade Magazines: About this Guide

Manufacturing is no longer simply about making physical products. Changes in consumer demand, the nature of products, the economics of production, and the economics of the supply chain have led to a fundamental shift in the way companies do business. Customers demand personalization and customization as the line between consumer and creator continues to blur. As technology continues to advance exponentially, barriers to entry, commercialization, and learning are eroding. New market entrants with access to new tools can operate at much smaller scale, enabling them to create offerings once the sole province of major incumbents. While large-scale production will always dominate some segments of the value chain, innovative manufacturing models—distributed small-scale local manufacturing, loosely coupled manufacturing ecosystems, and agile manufacturing—are arising to take advantage of these new opportunities.

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The paper aims to contribute to the renaissance of a manufacturing oriented view of economic system. It begins by providing a critical review of the main turning points in the manufacturing versus services debate evaluating the analytical and empirical arguments deployed in favor of each view. It goes on to describe the profound transformations in industrial systems and the redistribution of manufacturing production across countries over the last two decades which challenge some of the assumptions on which the service oriented view is built. This section concludes by reviewing old and new rationales supporting a manufacturing oriented view. Finally the negative consequences of de-linking manufacturing production from services off-shoring are explored highlighting the systematic disruption of the bundle of technological linkages constituting the industrial commons. All mistakes remain ours. However, recent years have witnessed a renewed interest in manufacturing production its potential as an engine of technological dynamism and a source of the wealth of nations for which it was previously recognised. In particular, deindustrialisation, loss of strategic manufacturing industries, increasing trade imbalances, decreasing technological dynamism and industrial competitiveness have been major concerns in advanced economies. This paper aims to contribute to the renaissance of a manufacturing oriented view in two ways. By sketching the tensions behind the service oriented view that have arisen as a result of the profound transformations in industrial systems and the redistribution of manufacturing production across countries over the last two decades the current financial crisis and resulting manufacturing loss being just the peak of these global trends , a systematisation of old and new rationales supporting a manufacturing oriented view is presented.

The Top 33 + Most Helpful Manufacturing Publications

Global leaders discover why Charleston, South Carolina is the ideal location for life science companies. How companies can modernize supply chains, minimize legacy technology costs, and adapt to new market opportunities. Business process automation allows organizations to scale with growth, manage order volumes and avoid delays and errors. Heavy, advanced and light manufacturers are high sustainability performers compared to counterparts in seven other sectors.

Wildeck, Inc. Day, a results-oriented finance executive, will be responsible for managing Wildeck's total financial direction, Forest City Gear has hired Brad Lindmark as Director of Sales to help meet the growing demands of its customer base in the gear-making industries.

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Building a Future in Rural Florida John Dyck, the CEO of CESMII (the Clean Energy Smart Manufacturing Innovation Institute), doesn't mince words, and for.

Wildeck Names Chief Financial Officer

Members, legislators, government officials, and other guest gathered at the JW Marriott on Janaury 8, to connect and share ideas about legislation that is being discussed at the Indiana Statehouse during the legislative session. At p. Andrew Weissert, of We Ask America, gave a rundown of the poll results and fielded questions from members. Download a full copy of the report. Contact Us About Membership Today! IMA Initiatives. Indiana Federation for Advanced Manufacturing Education. The Indiana Manufacturers Association is a partner in this mission.

Founded in September , 3ders. Additive Manufacturing is the magazine devoted to industrial applications of 3D printing and digital Additive Manufacturing resource providing the latest news, and unique and insightful information abo Aerospace Manufacturing and Design provides up-to-date information on the latest manufacturing proce Find information on metalworking, machining, industrial automation processes and technology developm AZoNetwork is a global information provider for scientists, engineers, technologists, researchers an Design News is the leading technical resource for design engineers and engineering managers who buil Find design engineering news and engineering videos on Design World.

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Most of the news sources and trade magazine titles listed here are organized by two-digit NAICS sector numbers, with three or four-digit numbers added, where appropriate, for the sources in the Manufacturing and Retail sectors. General business magazines are listed on a separate tab ; a new section highlights titles for Nonprofit Organizations. Individuals with disabilities are encouraged to direct suggestions, comments, or complaints concerning any accessibility issues with Rutgers web sites to: accessibility rutgers. Hours My Account Ask Us.

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