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        Manufacturing Sector Industry Profile

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        Excerpt from Manufacturing Sector Industry Profile

        Companies in this industry manufacture a wide variety of goods; major product groups include food and beverages, chemicals, machinery, transportation equipment, and computers and electronics. Major companies include Boeing, Caterpillar, DuPont, Ford, GE, GM, HP, IBM, Pfizer, P&G, and Tyson Foods (all based in the US); Nestlé (Switzerland), Sanofi (France), Siemens (Germany), and Toyota (Japan). The top manufacturing countries include China with $4 trillion, accounting for about 30% of the world total, followed by the US at $2.3 trillion (about 17%), Japan at $1 trillion (about 7%), Germany at $800 billion (about 6%), and South Korea at $460 billion (3%).

        The US manufacturing sector consists of about 290,000 establishments with combined annual sales of about $6 trillion.

        COMPETITIVE LANDSCAPE

        Globalization has opened new markets and opportunities for manufacturers but has also created new challenges, including how to manage far-flung supply chains and distribution channels. Manufacturers have turned to digitalization to improve efficiency across every area of operations, including product development, design, production, distribution, and marketing. However, implementing a successful digital transformation strategy -- including the leveraging of internet of things (IoT) technology and big data -- requires careful planning and significant investment.

        Demand ultimately depends on consumer spending. The profitability of individual companies depends on efficient production and distribution. Large companies often have large economies of scale in purchasing, production, and marketing. Small companies can compete effectively by producing specialized products. The US ...

         
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