From Manufacturing to Services and Its Local Impact on the Economy

[Davidvictorson]

I have seen countries transition from goods based economies to service based economies. Examples of these countries are China, United States, Germany and some others. These are countries that were once reliant on manufacturing and industrial production but now shifting towards services in education, healthcare, finance, and technology. Have you noticed this type of shift in your own country? If you live in a country that has transitioned to a service-based economy has it had any positive effect such as innovation, growth, income distribution, employment rates, more than the goods based economy or not?

[avikz]

Countries with smaller land mass, thrive on service based economy. But there are countries who beta big on both service and manufacturing based economy. No country would want to choose only one if they have options. Because it provides employment to two different types of mass.

In a service based economy it is important for the mass to be educated. In manufacturing based economy, they need more labours whose educational background does not matter. So these are really serving to different classes of people.

Service based companies pay more where manufacturing based industries pay a little less. That's the only difference I would say! No country will be willingly transition from manufacturing to service based industries. They will keep both and grow on both portfolio.

[slapper]

This transition from making to doing is pervasive. Silicon Valley, China; the whole damn world. Like a tsunami, guy. Some surf the wave, but others are crushed. Are you satisfied? Is bad? Who you ask matters. It's stunning and terrifying. This is a huge innovation spur. The tech and finance sectors are booming. However, inequality, job losses, and middle class squeezing are the downsides

This goes beyond economics, man. It's about social fabric. What kind of future are we building? We must work this out or we will end up in a world where a few are rich and the rest are poor. This is profound shit, man

[Die_empty]

I have seen countries transition from goods based economies to service based economies. Examples of these countries are China, United States, Germany and some others. These are countries that were once reliant on manufacturing and industrial production but now shifting towards services in education, healthcare, finance, and technology. Have you noticed this type of shift in your own country? If you live in a country that has transitioned to a service-based economy has it had any positive effect such as innovation, growth, income distribution, employment rates, more than the goods based economy or not?

Economist believes that most of the advanced economies are shifting to service-based. One of the reasons is that some smaller economies might have started manufacturing some of the products they have been exporting. So it will be more economically beneficial to provide the needed service for these products than to produce them.

I think the service sector is not too capital-intensive like the manufacturing industry. China's economy is moving to service-oriented while countries like Vietnam, Thailand,  Malaysia, etc, are growing in the manufacturing sector of the sub-region. China and the US had that kind of relationship where China was the manufacturer, and the US was the service provider. However, both countries no longer have such partnerships because China is now moving towards a services-driven economy.

The country where I live has an extractive economy. We are not manufacturing much because we rely more on imported products. We are just a country that produces raw materials for other industrialized nations of the world. There has been no shift to the service sector; in fact, we are praying that our country will become an industrialized nation. I predict that it will take us more than five decades of good economic and political leadership for us to become a manufacturing country.

[Fortify]

I have seen countries transition from goods based economies to service based economies. Examples of these countries are China, United States, Germany and some others. These are countries that were once reliant on manufacturing and industrial production but now shifting towards services in education, healthcare, finance, and technology. Have you noticed this type of shift in your own country? If you live in a country that has transitioned to a service-based economy has it had any positive effect such as innovation, growth, income distribution, employment rates, more than the goods based economy or not?

China is still relatively reliant on the manufacturing sector, they grew over the last few decades as the "factory of the world" and are currently in the transition period over to a more service based economy. They have progressed rapidly and are prone to take over the living standards in certain areas, but their style of government is not conducive to long term stability - dictators are always going to dick around and mess up a good thing. Ultimately, until we get to the end game that all the things we want in consumerist societies is built by robotics, there is still going to be a need for manufacturing and the lowest cost producers will always win - so look at cost of living for an example of who will fill the role that China took for a while, maybe India is one that needs a bit more development.

[el kaka22]

If you really think that without manufacturing you could still do something, then you are quite wrong. And the "service" that these nations usually provide is not that easy, like UK providing banking to nearly all over the world isn't all that easy.

We need to remember that we are going to end up with something much bigger, plus China is not in the discussion with these, because they are literally production heaven and they are just switching from being a nation where others manufacture things, it became a nation that manufactures their own stuff and sell to the world. Every nation has something but you can't become a sustainable nation without manufacturing, it has to stay, small or big, it has to stay without a doubt.

[Cryptomultiplier]

I have seen countries transition from goods based economies to service based economies. Examples of these countries are China, United States, Germany and some others. These are countries that were once reliant on manufacturing and industrial production but now shifting towards services in education, healthcare, finance, and technology. Have you noticed this type of shift in your own country? If you live in a country that has transitioned to a service-based economy has it had any positive effect such as innovation, growth, income distribution, employment rates, more than the goods based economy or not?

While many countries just flow with the trend and have to adopt a new approach almost always when these power nations do so, a country like mine, has opted to revert to the old national anthem and also they now focus more on taxing every citizens and businesses while subsidies have been removed and the minimum wage has no value because the countries currency has been devalued twice in just one tenure of the sitting president assuming office.

Even though we once patronized our locally manufactured goods, nowadays it's hard to do so because of the quality of the product and the quality of service often has to be a result of good education and exposure to the right resources for learning as well as the right manufacturer to import products from.

[Plaguedeath]

China is still relying on goods based economies because they have a lot people, they adopt 996 working hour system which mean the employees need to work from 9 AM to 9 PM for 6 days. Even they've work for 72 hours, they didn't get paid well and if you think you can just search for other jobs. Well it's not that easy because if you didn't willing to work for 72 hours, there's always a person willing to do that.

So, the result is, they need to work long hour and get paid low.

[Stepstowealth]

Have you noticed this type of shift in your own country?

My country still depends on mainly importation, so it is obvious that we have not even been able to achieve a manufacturing based economy. We are still very reliant on other countries.

If you live in a country that has transitioned to a service-based economy has it had any positive effect such as innovation, growth, income distribution, employment rates, more than the goods based economy or not?

If a country transitions to a service-based economy, it's manufacturing base economy still functions, more opportunities has been created in the economy so it means that it will create more employment for people with specialty in rendering these services.

[blckhawk]

China is still goods based my guy, they haven't left that part yet, they're still the biggest goods producing country right now and given the current situation in their real estate and all the lies that's been exposed about China, I think that we're going to be seeing China take much longer to become like USA in terms of economy, not to mention that there's a population collapse in China right now, it's really impossible for China to be this big but you're right about countries transitioning from goods producing to service producing countries but that don't mean they've lowered their output on producing those goods, they just got a really good economy and the improvement of their country is just that good.

[Rruchi man]

I have seen countries transition from goods based economies to service based economies. Examples of these countries are China, United States, Germany and some others. These are countries that were once reliant on manufacturing and industrial production but now shifting towards service

Could this transition mean that the service-based economy is more superior to the manufacturing-based economy—that is, that the economies of countries that are service-based are doing better than those of countries with manufacturing-based economies?

Or could the transition be both ways that a country can transition from a service-based economy into a manufacturing-based economy to boost the economy?

[yhiaali3]

For a country that has a primarily agricultural economy with some trend toward services and manufacturing, we have a lot of raw materials but the industry is still in its infancy.

Large countries give up industries to smaller, developing countries that aspire to become industrialized countries. Large countries want to get rid of many industrial problems such as expensive raw materials, high-paid labor, environmental pollution, etc.

Why go to all this trouble when they can simply shift all this heavy burden to another country that will manufacture for them at a lower cost, while they head to the comfortable and profitable service sector.

[bluebit25]

I live in a country where I see the combination of services and manufacturing as not being separated, as I see it as just making the most of the available resources to meet the needs of both parties.

Tourism is something that I see in this country really thriving as it has all the necessary things to attract customers, but I also know that agricultural production is also something that this country very strong as they are almost a major food exporter to the world. So taking advantage of your abilities and learning about change to adapt to change to find a direction for development without being too dependent on one field is something I believe every country needs.

[pinggoki]

We need to remember that we are going to end up with something much bigger, plus China is not in the discussion with these, because they are literally production heaven and they are just switching from being a nation where others manufacture things, it became a nation that manufactures their own stuff and sell to the world. Every nation has something but you can't become a sustainable nation without manufacturing, it has to stay, small or big, it has to stay without a doubt.

I have something to say about the one regarding China, I think that they're not the heaven for production anymore, maybe they're still at the top but if I recall correctly, India is closing in on them and at the same time, a lot of big companies are slowly migrating to other countries for labor because it's getting expensive in China, not to mention that they're currently experiencing a population decline due to their stupid idea of One Child Policy, so I'm sure that we're not going to be seeing China at the top of production soon. Totally in agreement with your opinion about the keeping of manufacturing industry, I mean look at it this way, people have needs and some people need jobs, and it just so happens that the sector of manufacturing can offer that, basically, the only thing that would totally lose that industry is if there's no humans anymore or if the desire to want something or to work for money is gone with the humans, that's probably the only time that we'd see the decline.

[pooya87]

I have seen countries transition from goods based economies to service based economies. Examples of these countries are China, United States, Germany and some others.

Are they?
China is pretty much the world's factory and they do have a massive production based economy.
Germany I'd say is both but mostly production based economy (although deindustrialization is taking that away slowly).
US is neither of these, US economy is a debt based economy.

I honestly see no major shift in the type of each of these economies. Please provide more information on why you think there is such a shift taking place.

Have you noticed this type of shift in your own country?
If you live in a country that has transitioned to a service-based economy has it had any positive effect such as innovation, growth, income distribution, employment rates, more than the goods based economy or not?

We are shifting in the opposite direction meaning we are increasing our production (consequently exports) and that has had positive effects such as increasing employment (and decreasing unemployment), increasing GDP and economic growth, increasing foreign reserves, decreasing inflation, ensuring food security (eg. increasing wheat production by 9 million tons in past 2-3 years), and a lot more.

By the way, type of the economy and whether that type works or not depends a lot on the global situation. For example at times like these years where there is a lot of global tensions and wars that have disrupted production and global supply chain, having any economy other than a solid production based economy will have terrible consequences.

[Darker45]

I think this is a transition that happens when a country has already grown rich. And this seems to be a logical change. You can't just start with technology, for example, or healthcare. You start with taking advantage of whatever resources you have. As soon as you have the wealth, you can freely explore and generously finance other developments and ventures.

But this isn't absolute. My country isn't strong in both manufacturing and industrial production, but we are offering a labor force that could work in different kinds of services around the world. We're exporting nurses and other healthcare workers, seafarers, laborers, teachers even, and maids unfortunately, among others.

But the country itself can't offer these services. We cannot afford offering the best of healthcare services to the world. Neither do we offer global shipping or transportation services. We also don't offer construction services to the international community. We can only send servicemen.

But I think the growth of this sector in the economy has given us a lot. The entire country's economy is heavily dependent on this. This is where a big portion of the country's labor force finds great opportunities.

[Moeda]

I have seen countries transition from goods based economies to service based economies. Examples of these countries are China, United States, Germany and some others. These are countries that were once reliant on manufacturing and industrial production but now shifting towards services in education, healthcare, finance, and technology. Have you noticed this type of shift in your own country? If you live in a country that has transitioned to a service-based economy has it had any positive effect such as innovation, growth, income distribution, employment rates, more than the goods based economy or not?

Despite not having personal experience, I can notice similar trends in many countries, including those that have transitioned to a service-based economy. However, the impact also depends on various factors such as government policy, infrastructure, and workforce readiness to adapt to these changes. There are countries that focus on creating jobs to improve the economy, but I am in a country that focuses on offering services. This has a synergy impact between one country and another.

[kentrolla]

Countries like India are into both and I don't think China is into service based industries as it's still relying on manufacturing industries but if you take example of India it's everywhere be it healthcare and Pharma or Information technology or educational institutes you name it they are in it, on the other hand we cannot compete with some countries in manufacturing since they have cheap or forced labour but we can win if we do our best in service industry.

[Adbitco]

Have never seen such within our country in fact our country has to from a productive nation to a consumption nation where no change are made from the previous to the present rather moving from good to worse. I don't really know what one could account for in our country i believe you understood more better.

[btc78]

I have seen countries transition from goods based economies to service based economies.

Your observation is valid since there seems to be really a shift in economic strategies or trends. Going from goods based economy to s service based one gives way for more employment and distributes a fairer share of income among citizens. Another beneficial factor of a service based economy is that it contributes greatly to the GDP of a country.

A higher GDP typically translates to a great economic situation.

Examples of these countries are China, United States, Germany and some others. These are countries that were once reliant on manufacturing and industrial production but now shifting towards services in education, healthcare, finance, and technology.

I don’t live in any of the countries aforementioned but China and United States seems to be still reliant on manufacturing their goods and distributing it all over the world.