The manufacturing industry describes all of the companies in the world that use tools and machines to create products for sale. This is a broad term that describes services provided within a number of other different kinds of industries. For example, companies that make automobiles are considered auto manufacturing companies, meaning that their gains and losses may affect both the manufacturing and the automobile industry. Professionals who work in manufacturing industry analysis perform functions such as market research, technological development tracking, and studying the behaviors of competing manufacturing companies.
Market research is an important part of manufacturing industry analysis. This kind of research involves studying the ways in which products and services are delivered to consumers. In the manufacturing industry, market researchers may distribute surveys to consumers in order to learn about their satisfaction with the prices and quality of various products. Information is normally categorized by demographics. For example, an industry analyst who studies the manufacturing of household appliances may categorize market research by age, location, or income bracket.
Manufacturing companies use market research to determine factors such how to price products and what kinds of numbers to produce. Where and how certain products are marketed may also be determined by market research. Professionals in this industry depend on market research to learn about the level of demand there is for certain products.
The industry changes as technology is developed. For this reason, professionals who practice manufacturing industry analysis often keep track of new technological developments that may change the way companies do business. A new tool or machine that can do work faster than what current technology allows can enable an manufacturing company to produce more in less time for less cost.
Developments in the capabilities of products may also be tracked by individuals in manufacturing industry analysis. In the auto manufacturing industry, for example, fuel efficient vehicles produced by one company may require a competing company to develop similar cars. Staying on top of the most current trends and developments can allow a company to stay relevant as needs of consumers change.
Specialists in manufacturing industry analysis may also track and predict the behaviors of competitors. The pricing of one manufacturing company often determines the pricing of another manufacturing company. Low prices are a great way to lead away consumers from another company with higher prices. The demographics to which a manufacturing company markets also may be determined by the behaviors of competitors. An organization may choose to compete for a demographic or find a different demographic depending on sales of the competitor.