Importance of manufacturing industries
(a) Manufacturing industries are sources of employment for both skilled and unskilled labour. These employees can raise their standards of living and improve quality of life with the income they earn. The income they earn caters for basic needs such as food, shelter, clothes and education.
(b) Manufacturing industries also lead to the diversification of the country’s economy due to their potentials for promoting other sectors of the economy. This reduces over-dependence on one or two economic sectors, which can be affected by fluctuation of prices in the world market.
(c) Manufacturing industries enable countries to process locally produced raw materials before they are exported. This process helps to add value to the exports.
(d) Manufacturing industries stimulate the development of infrastructure such as railways and roads. These means of transport are useful in carrying raw materials to manufacturing centers and the finished or unfinished goods to the markets.
(e) Industries also help to create a large internal market as workers get wages and salaries from industries which enable them to buy goods and services. In fact, the more the workers, the larger the market for manufacturing industries.
(f) Manufacturing industries also lead to increased agricultural production. For example, the textile industry requires cotton as raw material. Thus, it can stimulate the expansion of cotton growing.
(g) Manufacturing industries are sources of foreign currency. The products manufactured in a country are exported to other countries for sale which, in turn, attract foreign currency.
(h) Manufacturing industries reduce the country’s dependence on imported goods because a country with well- developed manufacturing industries can meet the needs of the people.
(i) Manufacturing industries also stimulate the development of science and technology. Indeed, for a country to develop well in manufacturing industries, it needs to invest in science and technology to increase production.
(j) Manufacturing industries improve international relations through trade transactions with different countries. These trade transactions improve relations between the importing and exporting countries.