Speaking of Precision Blog

Speaking of Precision

Speaking of Precision is a knowledge preservation and thought leadership blog covering the precision machining industry, its materials and services. With over 36 years of hands on experience in steelmaking, manufacturing, quality, and management, Miles Free (Milo) Director of Industry Research and Technology at PMPA helps answer "How?" "With what?" and occasionally "Really?"

Previous in Blog: Why Haven’t You Started Your Blog?   Next in Blog: Training- What We Want vs. What We Need
Close
Close
Close
14 comments
Rating: Comments: Nested

What is Manufacturing?

Posted September 07, 2012 11:00 AM by Milo

There seems to be a lot of confusion these days about manufacturing. As a guy who has worked his entire life in manufacturing, I'd like to eliminate this confusion.

The word "Manufacture" is made up from two Latin Roots "manu" and "factura."

(To make with hands)

"Manu" means "by hand"

"Factura" is a derivative of "facere" which meant "to perform" or "to do." Factura means" a working."

Those Junior High Latin Classes sure made understanding big words pretty clear.

(This was the nurtury of my English vocabulary)

While the linguistic origins of 'manufacturing' were "a working, by hand," the essence was the creation of something by work into something else. In modern terms, it is "the conversion of raw materials into finished goods by labor."

Today, with our abundance of machines, and non-human provided energy, we define manufacturing as "the use of machines, tools and labor to convert raw materials into finished goods."

In North America, (for now) Manufacturing is denoted officially by NAICS codes numbering from 31-33 according to BLS.

So what is the confusion about manufacturing?

There is a move afoot to count the foreign production of Factoryless Goods Producers (FGP's) as " U.S. Manufacturing."

Federal Register see part VI

If you don't actually make something, you aren't really a manufacturer.

If you don't make it here, how can you count it here?

-You may be a great designer. Great engineer. Great logistics company. Great sales company.

But if you don't make whatever it is that you designed, engineer, or sell - it ain't manufacturing.

So when someone tries to tell you that they are a "factoryless goods producer," don't flinch, don't blink, don't bat an eye.

And whatever you do don't call them a liar. (It's rude to call people liars, even when they are lying.)

(Remember her?)

Just tell them that they are mistaken, they are an outsourcer, not a manufacturer.

Manufacturers actually make things and often export their products.

Factoryless goods producers don't make anything themselves.

In some cases however outsourcers EXPORT OUR JOBS.

Register to Reply

Interested in this topic? By joining CR4 you can "subscribe" to
this discussion and receive notification when new comments are added.

Good Answers:

These comments received enough positive votes to make them "good answers".

"Almost" Good Answers:

Check out these comments that don't yet have enough votes to be "official" good answers and, if you agree with them, vote them!
Guru
Technical Fields - Technical Writing - New Member Engineering Fields - Marine Engineering - New Member

Join Date: Sep 2008
Location: Vancleave, Ms about 30 miles inland from Biloxi and the coast
Posts: 3197
Good Answers: 106
#1

Re: What is Manufacturing?

09/07/2012 2:47 PM

I knew that.

__________________
Mr.Ron from South Ms.
Register to Reply
Guru
Hobbies - DIY Welding - Don't Know What Made The Old Title Attractive... Popular Science - Weaponology - New Member United States - US - Statue of Liberty - 60 Year Member

Join Date: Apr 2009
Location: Yellowstone Valley, in Big Sky Country
Posts: 7425
Good Answers: 295
#2

Re: What is Manufacturing?

09/07/2012 3:14 PM

This sort of this further blurs the already blurry lines defining Made In America, or Buy American, or...

Every year many of the manufacturers I trade with amend their product offering, many items previously marked as "Made in USA" are now marked "Assembled in USA, using Foreign and Domestic Materials".

I gather from the tone of the blog that Milo is displeased with this prospect. I agree. But money talks, and this proposed change is coming from somewhere...

__________________
Semper Ubi Sub Ubi
Register to Reply
Power-User

Join Date: Jan 2010
Location: India
Posts: 166
Good Answers: 1
#3
In reply to #2

Re: What is Manufacturing?

09/08/2012 10:09 AM

Why can't USA get manufactured items more from countries where they have favourable

trade balance in stead of China with whom it has negative trade balance? It should have

policies to manuafacture more in the country with incentives. If all countries in world

make 50% of products they consume in house, the world will be different.

Register to Reply Score 1 for Good Answer
2
Guru
Hobbies - DIY Welding - Don't Know What Made The Old Title Attractive... Popular Science - Weaponology - New Member United States - US - Statue of Liberty - 60 Year Member

Join Date: Apr 2009
Location: Yellowstone Valley, in Big Sky Country
Posts: 7425
Good Answers: 295
#9
In reply to #3

Re: What is Manufacturing?

09/10/2012 10:15 AM

"It should have policies to manuafacture more in the country with incentives." In the USA, there is a move afoot aimed at reducing government intervention in business, and government spending in general. The upward spiraling deficit spending needs to be brought under control; adding incentives as you suggest will not help in that effort.

"Why can't USA get manufactured items more from countries where they have favourable trade balance in stead of China with whom it has negative trade balance?" This is a good question, and a valid point. However, television or camera manufacturers are few and far between in Romania. Many countries with whom the USA has favourable trade balance need to import goods but, in general, have few items marketable on a global scale... unless these items happen to be a product of the factoryless manufacturing we are discussing.

"If all countries in world make 50% of products they consume in house, the world will be different." Agreed... but what about Vatican City, the plantation economy of Sri Lanka, the tourist economt of Belize...? These entities will never be able to independently produce anywhere near 50% of their own consumer goods.

__________________
Semper Ubi Sub Ubi
Register to Reply Good Answer (Score 2)
Commentator

Join Date: Nov 2007
Posts: 85
Good Answers: 2
#13
In reply to #3

Re: What is Manufacturing?

09/26/2012 4:42 AM

Good and Valid points from Guest1947. Though all manufacturing can't be outsourced to countries where BOP is in your favour, depending on the strength of a particular country, you can choose items that can be developed to create a win win situation.

Register to Reply
Guru

Join Date: Sep 2012
Location: Iowa, USA
Posts: 577
Good Answers: 50
#4

Re: What is Manufacturing?

09/08/2012 5:30 PM

What are ISO-9000 "diplomas" are they a manufactured product? I wish I had the idea to use a printer to print diplomas that I charge big bucks to audit, re-audit, all for a signed piece of paper with some Norwegian writing on them saying that company X is ISO-900X certified.

__________________
ignator -
Register to Reply
Guru
Panama - Member - New Member Hobbies - CNC - New Member Engineering Fields - Marine Engineering - New Member Engineering Fields - Retired Engineers / Mentors - New Member

Join Date: Dec 2006
Location: Panama
Posts: 4273
Good Answers: 213
#5

Re: What is Manufacturing?

09/08/2012 6:13 PM

I don't have a factory, but I make things. I make things from pre-proecessed roaw matierials (i.e., steel bar or rod, steel plate, aluminum, plastic, wood, etc.). Sometimes I even sell the things I make, although of late, I have been more prone to giving them away. I prefer the old-fashioned, operator-controlled lathe and milling machines to more modern CNC approaches, but, then, I am the sole operator, so it doesn't matter much if I replace my "labor" with a computer...I have recently added 3D printing to my suite of equipment I use to make things. But I still don't have a factory.

I may not be the world's greatest designer. I may not be the world's greatest engineer. My logistics and sales we won't even talk about. But I AM a manufacturer...

Unfortunately, I live in Panama, not the United States, so you can't count me as a US manufacturer...

Register to Reply Off Topic (Score 5)
Guru
Technical Fields - Technical Writing - New Member Engineering Fields - Piping Design Engineering - New Member

Join Date: May 2009
Location: Richland, WA, USA
Posts: 21017
Good Answers: 795
#6

Re: What is Manufacturing?

09/08/2012 9:35 PM

A competent dictionary would define it as "making stuff."

--Ed. C

__________________
In vino veritas; in cervisia carmen; in aqua E. coli.
Register to Reply
Guru

Join Date: Jul 2006
Location: "Dancing over the abyss."
Posts: 4884
Good Answers: 243
#7
In reply to #6

Re: What is Manufacturing?

09/08/2012 9:58 PM

Wait till you see the follow up, guys. Milo

__________________
People say between two opposed opinions the truth lies in the middle. Not at all! Between them lies the problem, what is unseeable,eternally active life, contemplated in repose. Goethe
Register to Reply
Guru
Popular Science - Weaponology - New Member Netherlands - Member - New Member Fans of Old Computers - Commodore 64 - New Member

Join Date: Sep 2007
Location: Japan
Posts: 2703
Good Answers: 38
#8

Re: What is Manufacturing?

09/10/2012 4:54 AM

Wait so if you have a factory full of robots where the humans only take out the completed parts and fill the robots with raw material is it still manufacturing as it is not done by hand?

__________________
From the Movie "The Big Lebowski" Don't pee on the carpet man!
Register to Reply
Guru
Hobbies - Musician - New Member

Join Date: Feb 2012
Posts: 523
Good Answers: 17
#10

Re: What is Manufacturing?

09/10/2012 1:31 PM

GDP: produced within country; GNP: produced by county's citizens (see

http://www.factcheck.org/2008/02/gdp-vs-gnp/)

Currently, Apple's FoxConn operation counts towards the US GNP and China's GDP.

"There is a move afoot to count the foreign production of Factoryless Goods Producers (FGP's) as " U.S. Manufacturing."

Are you saying there are folks who want to add Apple's Chinese manufacturing to the US GDP? Isn't that double bookkeeping with China and US both claiming the manufacturing?

Register to Reply
Guru

Join Date: Jul 2006
Location: "Dancing over the abyss."
Posts: 4884
Good Answers: 243
#11
In reply to #10

Re: What is Manufacturing?

09/25/2012 1:40 PM

YES.YES.

Milo

__________________
People say between two opposed opinions the truth lies in the middle. Not at all! Between them lies the problem, what is unseeable,eternally active life, contemplated in repose. Goethe
Register to Reply
Guru
Panama - Member - New Member Hobbies - CNC - New Member Engineering Fields - Marine Engineering - New Member Engineering Fields - Retired Engineers / Mentors - New Member

Join Date: Dec 2006
Location: Panama
Posts: 4273
Good Answers: 213
#12

Re: What is Manufacturing?

09/25/2012 11:01 PM

Just out of curiosity, I visited the National Labor Board site to see if I could come up with a number for how many actual producers of goods there were in the US. Statisitcs can be found here.

Essentially, we find that 409,590 people are employed in the Farming, Fishing and Forestry industries; 4,956,770 people are employed in "Construction and Extraction (including mining, oil production, etc.); and 8,365,980 people are employed in "Production". That gives us 13,732,340 "Generators of Wealth" in a total US population of 311,591,917 people. In other words, each producer must create enough wealth to support more than 22 additional people.

Some additional information from this data base: there is roughly one manager employed for every two producers; there are nearly two Office/Administrative people employed for every producer...

It would be interesting to see similar statistics for China, Germany, Greece and a few other countries for comparison...

Register to Reply
Commentator

Join Date: Nov 2007
Posts: 85
Good Answers: 2
#14
In reply to #12

Re: What is Manufacturing?

09/26/2012 5:08 AM

Startling revelations... One person creating wealth and 22 persons piling on to share. This one person's capability to produce has increased many fold due to automation, yet computerization has not reduced the piling on category. In fact statistics in your post indicates the number of such people keeps growing . It is true and applicable to all countries with slight variations.

Register to Reply
Register to Reply 14 comments

Good Answers:

These comments received enough positive votes to make them "good answers".

"Almost" Good Answers:

Check out these comments that don't yet have enough votes to be "official" good answers and, if you agree with them, vote them!
Copy to Clipboard

Users who posted comments:

cwarner7_11 (2); Doorman (2); Epke (1); Guest1947 (1); ignator (1); k.v.gopalakrishnan (2); Milo (2); reward54 (1); ronseto (1); Tornado (1)

Previous in Blog: Why Haven’t You Started Your Blog?   Next in Blog: Training- What We Want vs. What We Need

Advertisement