eya abrantes | mashee sy | rosh wee eng | justin toribio | ian claveria | lloyd reyes | jhay capuz

Manufacturing and its definition

The word manufacture comes from the Latin manus (hand) and facere (to make).

Manufacturing is the use of machines, tools and labor to make

things for use or sale.



The term may refer to a range of human activity, from handicraft to high tech.

But is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.


Manufacturing and its definitionAmong the most important manufacturing industries are those that produce aircraft, automobiles, chemicals, clothing, computers, consumer electronics, electrical equipment, furniture, heavy machinery, refined petroleum products, ships, steel, and tools and dies.

Manufacturing in the Tropics


Economic Status of Tropical Countries relative to Temperate Countries

Temperate:JAPAN• 2nd technologically advanced country in the world• Small defense allocation (1% of GDP)• Based on PPP – 3rd largest economy in the world after USA and China• Big debt (170% of their GDP)• 2 notable characteristics: close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force.• Industrial sector is highly dependent on imported materials• Agricultural sector is also focused on

GDP - real growth rate:

-0.7% (2008 est.)country comparison to the world: 206 2.3% (2007 est.)2% (2006 est.)

GDP - per capita (PPP):

$34,000 (2008 est.)country comparison to the world: 37 $34,200 (2007 est.)$33,400 (2006 est.)note: data are in 2008 US dollars

GDP - composition by sector:

agriculture: 1.5%industry: 26.3%services: 72.3% (2008 est.)

Labor force:

66.5 million (2008 est.)country comparison to the world: 9


Labor force - by occupation:

agriculture: 4.4%industry: 27.9%services: 66.4% (2005)

Unemployment rate:

4% (2008 est.)country comparison to the world: 48 3.8% (2007 est.)

Budget:

revenues: $1.72 trillionexpenditures: $1.788 trillion (2008 est.)

Public debt:

173% of GDP (2008 est.)country comparison to the world: 2 164.3% of GDP (2004 est.)


USA•Most technologically powerful economy in the world•Business firms in US have greater flexibility than their counterparts in West Europe and Japan•Advanced in technology•Just recently, Pres. Obama signed a bill providing an additional $787 B to create jobs and make the economy recover


1.1% (2008 est.)country comparison to the world: 172 2% (2007 est.)2.8% (2006 est.)





Labor force:

154.3 million (includes unemployed) (2008 est.)country comparison to the world: 4



farming, forestry, and fishing 0.6%, manufacturing, extraction, transportation, and crafts 22.6%, managerial, professional, and technical 35.5%, sales and office 24.8%, other services 16.5%note: figures exclude the unemployed (2007)

Unemployment rate:

7.2% (December 2008 est.)country comparison to the world: 91 4.6% (2007 est.)

Budget:


Public debt:

60.8% of GDP (2007 est.)country comparison to the world: 24 65% of GDP (2004 est.)

Industries:

leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining


United Kingdom•1 of the 5 trillion dollar economies in West Europe•Agriculture is intensive and highly mechanized•Government has greatly reduced public ownership


0.7% (2008 est.)country comparison to the world: 188 2.6% (2007 est.)2.9% (2006 est.)





Labor force:





Unemployment rate:

5.6% (2008 est.)country comparison to the world: 69 5.3% (2007 est.)

Population below poverty line:

14% (2006 est.)

Budget:


Public debt:

52% of GDP (2008 est.)country comparison to the world: 34 39.6% of GDP (2004 est.)


Agriculture - products:

cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish

Industries:

machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer good


Tropical:

PhilippinesGDP - real growth rate:

3.8% (2008 est.)country comparison to the world: 108 7.1% (2007 est.)5.3% (2006 est.)





Labor force:



agriculture: 35%industry: 15%services: 50% (2008 est.)

Unemployment rate:

7.4% (2008 est.)country comparison to the world: 95 7.3% (2007 est.)

Population below poverty line:

30% (2003 est.)

Household income or consumption by percentage share:

lowest 10%: 2.4%highest 10%: 31.2% (2006)


Budget:

revenues: $27.05 billionexpenditures: $28.58 billion (2008 est.)

Public debt:

56.3% of GDP (2008 est.)country comparison to the world: 32 74.2% of GDP (September 2004 est.)

Agriculture - products:

sugarcane, coconuts, rice, corn, bananas, cassavas, pineapples, mangoes; pork, eggs, beef; fish

Industries:

electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing


General Types of Manufacturing in the Tropics


mostly agricultural in nature• Fruits and fruit products• From livestock• Timber Products

Fruits and Fruit ProductsPineapple Products : juice, canned, candied, furniture


Fruits and Fruit ProductsMango Products: purees, dried, juices


Fruits and Fruit ProductsCoconut: furniture, jam, biscuits, oil, etc.


Fruits and Fruit ProductsSugarcane: rum, sugar, cane ethanol


Sample Countries

Pineapple Producers


Sample Countries

mango ProducersArea harvested of mangoes as of 2007

Country Hectares

India 2 143 000

China 445 000

Thailand 285 000

Indonesia 266 000

Pakistan 215 000

Mexico 200 000

Philippines 181 000

Nigeria 126 500

Brazil 89 800

Guinea 82 000

Vietnam 52 000

Bangladesh 51 000


Sample Countries

mango Producers


Top Ten Mango Producers of 2007

Country Production in Tonnes

India 13501000

Pakistan 1719180

People's Republic of China 3752000

Mexico 2050000

Thailand 1800000

Indonesia 1620000

Brazil 1546000

Philippines 975000

Nigeria 734000

Vietnam 370000

Earth 33445279

Top Ten Coconuts Producers — 11 June 2008

Country Production (Tonnes)

Philippines 17000000

Indonesia 15580000

India 9400000

Brazil 2770554

Thailand 1705446

Vietnam 962000

Sri Lanka 954000

Papua New Guinea 677000

Malaysia 568000

Myanmar 370000

World 54716444

Sample Countries

coconut Producers


Source: Food And Agricultural Organization of United Nations: Economic And Social Department: The Statistical Devision

Sample Countries

sugarcane Producers


Top Ten Sugarcane Producers — 11 June 2008

Country Production (Tonnes)

Brazil 514,079,729

India 355,520,000

People's Republic of China 106,316,000

Thailand 64,365,682

Bangladesh 60,142,000

Pakistan 54,752,000

Mexico 50,680,000

Colombia 40,000,000

Australia 36,000,000

United States 27,750,600

Philippines 25,300,000

World 1,557,664,978

Source: Food And Agricultural Organization of United Nations: Economic And Social Department: The Statistical Devision

From LivestockBeef Jerky, milk


Sample CountriesTropical part of Australia, Philippines


From TimberLogs, sawn wood, veneer, plywood


Sample CountriesBrazil, Burma, Sri Lanka, Singapore


Climate, Soil and Vegetation,

and the Manufacturing Sector

Climate, Soil and Vegetation, and the Manufacturing Sector

CLIMATE•aggregates of weather

over a span of time•elements: temperature,

pressure, wind, precipitation•considered an economic

resource-‘dualistic’ influence on

economic conditions


CLIMATE AND MANUFACTURING

1. climate affects the type of good to manufacture/process [nature of industry]

- tropical countries: plenty of raw materials

- mostly agricultural [primary] product - manufacturing- concerned with the processing of agricultural

or primary products [for export and domestic

consumption]-most tropical countries

are agricultural


2. climate affects manufacturing locations

According to Riefler and Lamphear (1980)a. effect to people’s behavioral patterns: “people

variable” i. role of climate: amenity orientation ii. industries are highly attracted to places

with high amenities - more favorable climate: more people would migrate to that

place - industries would emerge as the result; services (tertiary

industries) also emerge


b. economic costs: energy costs- firms become more ‘climate-

oriented’ as energy costs become higher

- industries tend to move toward places with climates favoring their ‘craft’

- food processing industries: colder climates

- lumber industries: tropical climates


3. climate affects [investment flows] developments in manufacturing - tropical climate: not conducive for economic development [Ezeala-Harrison (1996)]

- restricts economic development” - presence of torrential rains and

destructive storms- dehydrating effect of heat: drains

physical and mental efforts in production

- industrial activity [manufacturing]: indicator of economic development

- Most tropical countries are considered as developing countries with the exceptions of Singapore and Hong Kong.

- Singapore: island city-state- Hong Kong: former British colony

SOURCESEZEALA-HARRISON, F. 1996. Environmental Issues and Development. In: Economic development: theory and policy applications by Ezeala-Harrison, F. 1996. Greenwood Publishing Group. Pp. 209-211 RIEFLER, R. & LAMPHEAR, F.C. 1980. Climate and Manufacturing Location. US Department of Commerce. Retrieved October 1, 2009. In: http://www.jrap-journal.org/pastvolumes/1980/v14/14-2-4.pdfChapter Sixteen: Manufacturing. [Hand-outs in Geog133]


Soil

Pros• The soil in the tropics is very fertile and thus

manufacturers have capitalized on this and several plantations have been built. – Terra preta


SoilExamples • Coffee plantations

– Coffee is an important necessity commodity. With over 500 billion cups consumed every year.

– Most of the production of coffee is produced in the tropics most notably in Brazil where 2.59 millions in metric tons are produced.

• Tobacco/Cigar manufacturing– Good example are Cuban cigars in cuba– Tobacco plantations and then hand cigars

are made in a factory.


Soil

Cons• Soils in the humid tropics are normally highly acidic

and nutrient poor; decomposition is rapid because of high temperatures, high humidity and frequent heavy rains.

• Approximately a third of all tropical soils are too acidic to support traditional food crops. These highly acidic tropical soils represent the largest untapped arable land left in the world, and therefore more productive utilization of these lands is key to expanding the world food supply.


vegetationPros

• The tropics has lush vegetation and abundant of raw materials that is beneficial for manufacturing.

Examples•Timber used for manufacture of woodwork

and construction materials.•Several tropical plants which has various

uses ranging from medicine to household shampoos and such.


vegetationCons

• As said most of the tropics (especially in the rainforests) it is impossible to establish any type living.

• Manufacturing requires lots of capital and since most of the countries in the tropics are considered “poor” then manufactures are mostly owned by foreigners.

Manufacturing in the Philippines

Status of the manufacturing sector of the philippines relative to nearby

countries


Manufacturing accounts for roughly 71% on the average of industry output and 24.6% of gross domestic product (GDP) for the period

1986-2007.

Source: ADB, SDBS Key Economic Indicators Source: Facts in Figures

Congressional Planning and Budget Department

House of Representative July 2008

Source of basic data: NSCB – I-Stat online.

Growth of Gross Domestic Product and Manufacturing (%)

The growth of manufacturing gross value added (GVA) spiked at 5.8% in 2005. Thereafter, while growth

in GDP has been on the upswing to a resurgent high of 7.2% in 2007, manufacturing was on a downslide to 3.4%,

lower than its 3.5% growth posted in 2002.

Source: Facts in Figures




Among selected Asian countries, the Philippine manufacturing share to GDP for the period 2000-2006 was one of the lowest,

marginally higher than Vietnam and does not even come close to that of Indonesia.





Almost 90% of total Philippine exports are manufactured goods highlighting the dependence of the country on manufactured

good for exports.





Jobs generated in the manufacturing sector grew by 1.3% per annum on the average over the period 1996-2006. However, as

a percentage of total employment, the share of manufacturing went down from 10.3% in 1997 to 9.3% in 2006.





Except for Vietnam, the share of manufacturing employment to total employment of all comparator countries declined for the period 2000-2006. The Philippines consistently has one of the

lowest shares.






History1880 (last years of Spanish Era): food, tobacco, and beverages1900-1940: agricultural products (sugarcane and coconuts), the manufacture of apparel, and the production of ceramics, cement, glassware, and wooden and rattan furniture1960: manufacturing accounted for 20 percent of the gross domestic product (GDP)1970 and 1972: the Export Incentive Act, and the Export Processing Zone project1980: protection of the domestic manufacturing aimed at import

substitution1992: ASEAN free trade


Did you know? •Manufacturing which account for about 20.7% of total GDP felt the crunch of the global crisis as it declined by 7.3%.• Manufacturing is the second most important economic sector after services, employing 9.8 percent of the labor force and contributing 22 percent of the GDP in 1998.• Over 60 percent of the manufacturing establishments are still concentrated in the Manila area and the southern Luzon region.• Foreign direct investment, an important source of funding and technology for manufacturing, is low compared with countries such as Malaysia and Thailand.


Manufacturing Industry

Food manufacturing BeveragesTobacco Products TextilesFootwear and wearing apparel Leather

productsPaper and paper products Publishing and

printingPetroluem products Chemical

productsRubber and plastic products Non-

metallic mineral productsBasic metals – ron and steel

Fabricated metal productsMachinery excluding electrical Electrical

machineryTransport equipment Furniture

and fixturesMiscellaneous manufactures

Source: http://www.census.gov.ph/data/sectordata/datamfg.html


TOP 3 industries

Electronic components earned the highest revenue amounting to P461.1 billion (15.6%)

Food except beverages followed closely with P456.2 billion earnings (15.5%)

Petroleum products placed third with an income of P337.0 billion (11.4%).


More on Electronics Semiconductors have traditionally been the main output of the Philippines electronic industry and in 2005 they accounted for 51% of total production with computer equipment and parts accounting for 34%In 2008, there was a 5.6% fall in production of electrical machinery (including semiconductors), mainly due to soft external demand in the second half.


More on Food Manufacturing The food manufacturing sector in the Philippines is highly-concentratedThe largest food manufacturing companies in the Philippines are San Miguel Corporation and Purefoods Corporation (1990’s)On average, the top four firms in the food manufacturing sector accounted for 63 percent of total revenues in 1978 and about 72 percent in 1994, representing an increase of 14 percent.


More on petroleum industry Top three oil refineries in the Philippines are Petron, Shell and Caltex

Petron, our state-owned company, accounts 52 percent of the industry’s refining capacityPetron Corporation is the Philippines' leading refiner, marketer, and distributor of

petroleum-based productsPetron's two principal shareholders, each of which hold 40 percent of the company, are the Philippine government's Philippine National Oil Company and Saudi Aramco, based in Saudi Arabia. The remaining 20 percent of the company's shares are listed on the Philippine Stock Exchange and are held by more than 200,000

shareholders. However, at mid-2003, the Philippine government was considering selling its 40 percent stake in the company in a move to drive down the country's budget deficit.


Top Manufacturing Zones

ManilaNorthern MindanaoIligan: steel, fertilizers and other chemicals, and cementCagayan De Oro: a steel plant and a pineapple processing factory that

cans pineapples for a nearby plantationDavao: plywood and lumber mills, furniture firms, food processing plants, and cement factories

Cebu: rattan furniture, shell craft industry


Sources:

http://www.bookrags.com/research/manufacturing-industryphilippines-ema-04/

http://www.census.gov.ph/data/sectordata/datamfg.htmlwww.census.gov.ph/data/sectordata

http://dirp4.pids.gov.ph/ris/pjd/pidspjd01-1retailfood.pdfhttp://www.fundinguniverse.com/company-histories/Petron-

Corporation-Company-History.html

OPEN FORUM Free Trade vs. Protection of Local Products

eya abrantes | mashee sy | rosh wee eng | justin toribio | ian claveria | lloyd reyes | jhay capuz

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