Manufacturing, Related Indsutries and Products
There are two basic definitions of manufacturing: the technological one and the economic one.
The technological definition of manufacturing is the following: “Manufacturing is the application of physical and chemical processes to alter the geometry, properties, and/or appearance of a given starting material to make parts or products; manufacturing also includes the joining of multiple parts to make assembled products.”
The economic definition is the following: “Manufacturing is the transformation of materials into items of greater value by means of one or more processing and/or assembly operations” (Groover, 2007). Therefore, we can view manufacturing as a process or as a value adding activity for a company.
The manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing (NAICS, 2014). The three basic industry categories are the following:
- Primary industries: those that cultivate and exploit natural resources, such as agriculture and mining
- Secondary industries: those that convert the outputs of the primary industries into products; they include manufacturing, construction, and power generation
- Tertiary industries: those that constitute the service sector of the economy; this includes banking, retail, transportation, education, government
