Maker

economic-dictionary

The manufacturer is the entrepreneur or company that develops finished products from raw materials, that is, aimed at the final consumer.

In other words, the manufacturer produces final goods that will go to the market, becoming distributed through a supply chain.

This means that the manufacturer sells its product to the wholesaler, who in turn has the retailer as a customer. The latter will finally make the merchandise in question available to the public.

To be competitive in the market, manufacturers must seek the highest possible efficiency. This, as we will see later, will depend on the nature of the demand.

Manufacturers' production types

Manufacturers can produce in the following ways:

  • In mass: Large quantities of identical units of the same product are produced. It seeks to automate tasks to achieve a higher volume of production without the need to increase (so much) the number of workers. To implement such a system requires a high and frequent demand for the merchandise. Otherwise, there would be unsold stock.
  • In batches: Several identical items are produced in a limited quantity. It requires the use of a template or model and that reduces manufacturing time. Example: Making t-shirts exclusively for a single sporting event.
  • On request: The company manufactures the merchandise each time a client requests it, the result being different each time. This means that there will be no unsold stock. However, it requires that the producer have the necessary inputs available to satisfy the demand. It may even be that the company keeps the parts of its merchandise ready for assembly at the time it receives an order.

Manufacturers and technology

Technology has allowed the automation of different production processes. Thus, mechanical tasks previously performed by workers today can be performed by machines.

The foregoing is relevant for practically all manufacturers because, if new technologies are not incorporated, the firm would lose competitiveness in the market.

For their part, employees who have been developing tasks that can be automated will be forced to learn new skills or change jobs to stay in the job market.

Another important phenomenon to analyze is that with globalization, production processes have become internationalized. That is, parts of a car, for example, can be manufactured in one country and assembled in another.

Tags:  Commerce markets Spain 

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