10 Reasons to Invest in Manufacturing

The past century manufacturing was seen as a sub-process of a factory; with the implementation of the segmentation of production and with the introduction of production sharing manufacturing was born.

This segment of the economy has the most promising future when it comes to investments; not too many in Wall Street know how to invest in manufacturing or tech companies and when they do they pour down loads of cash into incipient technologies and end making bubbles.

These 10 reasons to invest in Manufacturing are logic and promising ideas and processes to invest smartly in tech companies and manufacturing hubs. I believe that we should focus on making public venture capital firms and engineering investment firms because they have the knowledge, the experience and the correct portfolio diversification to make a profit while also investing in the industry.  And now the 10 reasons to invest in manufacturing:

1. Production Sharing

As we move forward into greater interconnectivity production sharing is becoming more reliable to manufacture a single product in multiple sites; this make sense when it comes to knowledge and resources management. Having the right team and understanding the opportunities to improve the products, make them cost efficiently is essential for the consumer.

It makes sense to invest in production sharing because it is part of today’s manufacturing making products better, competitive and with high quality. Companies with multiple manufacturing sites around the world, like China, India, United States, United Kingdom, Mexico, Israel, Chile or any country understand that the consumer needs the benefits that only production sharing can help manufacturing become competitive.

2. Continuous Improvement

Kaizen has first adopted by Japanese manufacturing companies and has given their products and services the quality that the consumer need while making them available at competitive costs, which is why Toyota is so successful.

Manufacturing worldwide is adopting Kaizen or continuous improvement; and the only thing that we are going to see is better products and cuts of manufacturing costs; because that is the purpose of Kaizen, always improves, always make it better, with fewer resources and efficiently, and that is greater margins in profits.

3. Crowdsourcing Product Design

As manufacturing corporations have multiple sites, such as Honeywell, General Electric, Mitsubishi, UTC, ABB, Komatsu, Parker Hannifin among other, they’re whole corporation become research and development, as they can rely on continuous improvement and crowdsourcing knowledge to improve their products, resources and customer services as knowledge is available at all levels and encouraged to create new products.

4. STEM Education

Science, Technology, Engineering and Mathematics are the promise of not only a better future, but the future of humanity as a whole; there is no field in knowledge that one cannot improve with STEM education, everything can rely on STEM to improve and enhance the capabilities of any industry. Investing in Manufacturing is investing in STEM Education and the improvement and diversification of the industry.

5. Scalable Economy

Manufacturing is diversifying and with micro factories becoming able to manufacturing from additive manufacturing local economies will become an scalable comparison with major cities, and manufacturing is becoming available and practical to have multiple micro factories, this scalability improves investments, enhances the local economy and diversifies the sources of manufacturing technologies.

6. Local Self-sufficiency

Energy generation is becoming more available to generate from home and also to generation on site for the manufacturing companies; as energy generation moves into this direction and with sustainability becoming more and more important for our cities and future.  Investing in manufacturing technologies and micro factories is going to be a key element for the success of local self-sufficiency.

7. Interconnectivity

There’s no doubt here, globalization has made us interconnected. And interconnected economy has manufacturing production sharing, resources management and knowledge crowd sourced to be able to compete. Manufacturing is once again the answer to make our cities, our technologies interconnected.

8. Advanced Manufacturing

Automation and Mechatronics are revolutionizing the industry. As we all know see the potential of additive manufacturing and fabrication possible and composites available to introduce products that once we thought were impossible.

As products diversify the opportunity of investment in engineering and manufacturing venture firms will become a logic step for Wall Street and investors all around the world.

9. Internet of Things

Remote manufacturing with the IoT will integrate all efforts in the manufacturing environment, and as I mentioned will become more competitive bringing once again new technology and improved quality to products as they themselves integrate with IoT.

10. Human Development

The last and most important reason to invest in Manufacturing is for the human development; where technology coming from our manufacturing facilities can once and for all achieve the promise of a balanced and prosper egalitarian distribution of development between countries and regions, having the opportunity to be sustainable, self-sufficient, free and fraternal that only competitiveness and continuous improvement coming from manufacturing can spread into the lives of the many that we are.

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