In today’s world, there are many industries where you can invest your finances. However, not all investments are lucrative, and some can be unpredictable, so you should weigh the pros and cons before making any decisions. An industry you may have overlooked or not even considered is the manufacturing industry.
An Industry That Supports Productivity Rather Than Competition
The manufacturing industry does not have the same levels of competition as others. For one company to do well, another often has to take a loss. Since manufacturing typically supports and enhances productivity, it is less competitive.
Our Infrastructure Demands Are Changing
Our infrastructure demands have changed dramatically in recent years. Technological advancements have brought new consumer demands for everything from appliances, transportation, homes, materials, and many more. It is an exciting time to consider getting involved in manufacturing, as it will continue to grow and adapt.
According to the CDC, the manufacturing sector is crucial to our world’s development agenda and contributes directly and indirectly to many of the United Nations Sustainable Development Goals. Your investments in the industry would help initiate, sustain, and transform manufacturing operations to cope with our ever-changing world.
These investments will have many exciting outcomes, such as improving the availability of manufactured products, accelerating the development of the manufacturing sector, and creating more responsible production and consumption. Therefore, it’s an exciting sector to be involved in, and unlike other investments, you’ll be able to see change and improvement because of the money you invested.
The Demand for Automotive Software
Manufacturing incorporates many sectors and growing industries, such as automotive software. There is a huge demand for connected cars with advanced driver assistance systems. The days when a ‘check engine’ light was our sole indicator that there was something wrong with our vehicles are numbered. Newer models can tell you which tire needs air, what part of the car needs serviced, who is and isn’t wearing service belts, how close you are to other drivers, and if you’re not driving in your lane.
The global automotive software market will grow exponentially over the next few years. In 2019, it was valued at $18.5 billion and is projected to reach $43.5 billion by 2027. The software will become more accurate and intelligent, and soon, all drivers will be reliant upon it.
The Growing Window and Door Market
Another sector is the window and door market. It’s currently valued at $153 billion, according to a report by Global Market Insights. Demand for windows and doors is growing and driven by things such as growth, increased construction activity, and urbanization.
There is also a push to find more energy-efficient and sustainable building materials. Many of the building materials we used to rely on have been proven to be harmful to the environment or inefficient, meaning that many windows and doors will be replaced in the coming years.
Growth Doesn’t Mitigate Risk
While there are many advantages to investing in the manufacturing industry, it doesn’t come without risk. It’s impossible for every product the industry produces to be perfect, and if something breaks or hurts someone, manufacturers will often be held liable. Therefore, before you jump into this investment, weigh out the risks.
Manufacturers can be sued for product liability if their products have manufacturing defects. If automotive software tells a driver that nobody is in the lane next to them, but when the driver turns, they hit another vehicle, the manufacturer may be held responsible. In an industry responsible for so much of our infrastructure, there will inevitably be complications at some point.
Investing in the manufacturing industry requires careful planning and research. However, this ever-growing and changing sector offers an excellent opportunity to watch your investment change the everyday functioning of the world around you.
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