Manufacturing: A Promising Investment Opportunity 260

Manufacturing: A Promising Investment Opportunity

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Taking on investments has been a global trend over the years. Many are seeking different opportunities where they can invest and profit at the same time. They are willing to put their money on promising and developed businesses to reap their share later on. 

But every investment has different risks and returns. Therefore, it is crucial that before you venture on anything, you are well-oriented and well-informed. If you are looking for an investment opportunity, the manufacturing industry is an excellent place to consider. 

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Let us explore what this industry can offer you.

The Role of Manufacturing

Manufacturing does not merely revolve around the making of goods by using human resources or any machine. Its role is not limited to processing raw materials or parts into finished products. Manufacturing is more than a process. It is also the means for various technological and economic developments. 

Because of the increasing demand for mass production, the manufacturing industry has been innovating over the years. Different businesses introduced high-tech manufacturing methods with computers and precision electronic equipment. In fact, without a manufacturing sector, the economic competence to sustain such innovation will also be challenging. 

Dan Su and Yang Yao from the National School Development of Peking University studied the role of the manufacturing and services sector during a country’s development. Their findings indicated that the manufacturing industry is still the key engine of economic growth. 

The occurrence of the technology transfer process in the manufacturing industry can also make use of human capital. This means that manufacturing can create skilled jobs and revenues, which are suitable for the economy. 

The State of Manufacturing Industry

Like all other sectors in the market, manufacturing has experienced growth and decline throughout the years. However, according to Tony Uphoff, Thomas’ President and CEO, “the state of manufacturing is greater than ever.” It will continue to innovate, build a strong economy, and increase national awareness.

In one of the surveys, manufacturing ranked number 3 in terms of the importance of creating new jobs in the US, which is a positive indicator of economic growth. And whenever there is an improvement in economic growth, investments will also rise. It is based on the accelerator theory, which states that the level of investment is dependent on the rate of change of economic growth. 

It is consistent with the study by Sigñe and Johnson that manufacturing plays a significant role in reaching the next stage of economic development in Africa. It is predicted that revenues will increase in this subsector by $120 billion over the next decade. 

The demand for manufactured products in the near future will continue in most countries. Therefore, a market that can produce affordable and durable products like telecommunication goods is in demand. There will also be likely increases in the processed food and beverage industry for manufacturing. 

Hence, a stable economy and an available target market are some of the many benefits that the manufacturing industry can offer. 

Manufacturing Industry in The Future

A good investor doesn’t only look at the present. A vision for the future is also vital in making investments. How will the business thrive in the next five to ten years? What is the future of your investment in manufacturing?

IndustryWeek and Kronos’ research found that manufacturing leaders are overwhelmingly optimistic about the prospect of their business growth. They reported that out of ten manufacturers, nine are expecting their revenues to grow. More than half expect 5% or more revenue growth per year over the next five years. 

Manufacturers have indeed strong growth expectations, which is essential in doing any business. You have to believe that your investment will prosper. No investors will venture on any opportunity that they deemed to have no potential. This growth mindset will lead to strategy and performance.

One report from McKinsey Global Institute says that manufacturing is entering a dynamic new phase. As per the report, a new global class of consumers will emerge by 2025. The higher number of this consumption will take place in developing economies. Because of this, there will be new and abundant market opportunities.

It seems that the manufacturing industry is still promising more, especially in the coming years. In manufacturing, you can look at the future with confidence for your investment. 

How To Start Your Investment?

The earlier you invest, the higher the potential you have for returns. However, you need the money and other assets to produce goods and services. If you don’t have the resources yet, there is a platform that helps start fundraising for a company, just like Fundsition. Fundsition allows small to medium enterprises to have access to capital and potential investors. Just visit their site to learn more. 

Takeaway

Money is not only the key to a successful investment. No matter how much you put up, you need the appropriate plan and strategy. If manufacturing is your potential business prospect, you need to be knowledgeable about the industry before investing in it. Investing is more than putting your money on something. It is an opportunity to reach your fullest potential.

Blog SME Connect Blog 03/24/2020