Manufacturing

Topic Content:

Brief History and Development of Manufacturing:

In its earlier form, Manufacturing was usually carried out by a single skilled artisan with assistants. The training was by apprenticeship in much of the pre-industrial world, the guild system protected the privilege and trade secrets of urban artisans.

Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy for agriculture. Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.

From this, one can now conclude that manufacturing relates to an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm.

Manufacturing:

To an economist, Manufacturing is a wealth-producing sector of an economy. 

Manufacturing is the production of goods for use or sale using labour, machine tools, chemical, and biological processing or formulation. 

The term can also be referred to as a range of