An Information vs. Manufacturing Economy

In recent years, the United States has been moving away from a manufacturing economy and toward an information economy, which emphasizes the availability of information. Although the information economy has forced the manufacturing industry to change the way it operates, the importance of information has not made manufacturing obsolete. Instead, managers and workers must find ways to produce goods and services in a country where consumers demand information twenty-four hours per day.

The original manufacturing economy focused on the production of goods. In the early days of manufacturing, goods were scarce. Consumers bought whatever brands were available, so marketing was not an issue. In the 1920s, the United States moved from the production era to the sales era. During this period, there were more products available than consumers could reasonably buy, so manufacturing companies hired salespeople to promote their products. This manufacturing economy has given way to a new economy where manufacturers must use technology and other advanced manufacturing methods to produce goods.

The new manufacturing economy is powered by digital technology, skilled workers, and advanced manufacturing processes. Technology makes it possible to do business online, expand beyond geographic boundaries, and focus on open-source manufacturing. New technologies also make it possible for manufacturing companies to focus on innovation and customization of goods. Customization is just one way to meet consumer demands and increase satisfaction.

As the new manufacturing economy emerges from an economy based on information, manufacturing professionals must change consumer perception of the industry. In Kentucky, the number of vacant skilled manufacturing jobs available is expected to increase to 6,250 within the next ten years. Focus groups show that parents and students have negative opinions of the industry, so current industry professionals will have to change the negative perception into a positive one. One program aims to do this by introducing students to the innovation now available in manufacturing facilities. Program coordinators hope that this will spark an interest in the new manufacturing economy and make it easier to fill vacant manufacturing jobs.

It is important to note that an economy based on information has its flaws. The sheer amount of digital information available to consumers actually exceeds the limits of human comprehension, according to a 1 paper from Berkeley published almost 10 years ago. An information-based economy also has to deal with intellectual property issues that may limit access to certain types of information. The manufacturing economy is not limited by these constraints.

The one thing that will remain constant in the manufacturing economy is change. The success of manufacturing companies will depend on executives' abilities to anticipate changes and respond to them quickly. Companies that can withstand the winds of change will succeed in this new manufacturing economy, while companies that refuse to change their ways will find themselves struggling for market share.

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