Manufacturing Industry

Definition

The manufacturing industry comprises businesses that convert raw materials into finished goods on a large scale.

Analogy

Imagine you're baking cookies for a school bake sale. You take raw ingredients like flour, sugar, eggs (raw materials) and mix them together following a recipe (production process) to create delicious cookies (finished goods). That's what manufacturing industries do but on a much larger scale!

Related terms

Mass Production: The manufacture of large quantities of standardized products often using assembly lines or automated technology.

Industrial Revolution: A period when new manufacturing processes were introduced leading to significant changes in industry.

Outsourcing: Contracting out part of the manufacturing process or services to another company, often overseas where labor costs may be cheaper.