Manufacturing is the process of turning raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Most products were handmade using human labor and basic tools before the Industrial Revolution. The Industrial Revolution led to mass production, assembly line manufacturing, and the use of mechanization to manufacture larger quantities of goods at a lower cost.
Financial analysts study the ISM Manufacturing Report each month as a potential early indicator of the economy’s health and where the stock market might be headed. Manufacturing can be defined and classified under different types, processes, or techniques.