Regional Resource Based Manufacturing

Manufacturing from locally available resources is referred to as regional resource-based manufacturing. The goal of a regional resource-based approach is to offer public (and private) infrastructure investments to increase work possibilities for the unemployed, increase productivity, provide social and economic infrastructure assets and amenities, enable commerce, and improve general well-being.

It is clear that a sufficient supply of talent pool for a longer duration is required to maintain a sustainable ecology in the region. Recruiting external talent isn’t the only way to go. Developing a local talent pool is a win-win option for the region’s government and businesses. Given the scarcity of capital and skilled labor, and the abundance of unskilled labor, low-income nations can achieve pro-poor growth quickly by implementing employment-friendly technologies in as many industries as possible. The need for unskilled and low-skilled labor would skyrocket as a result.  

The Department of Industrial Policy and Promotion (DIPP) has announced the National Manufacturing Policy (NMP). The fundamental goal of this program is to increase the manufacturing sector’s proportion of GDP from 16% to 25% by 2022, while also creating 100 million jobs.

Some Major Challenges of Regional Resource-Based Manufacturers

1. Disruption in the Supply Chain 

Supply chain interruptions are one of the most significant difficulties facing manufacturers. Manufacturing has been hit more than any other industry by supply chain challenges, with stocks at their lowest levels in decades. Electronic component offshoring to Taiwan and China, along with the pandemic’s effects and shipping delays, has resulted in substantial supply chain disruptions.

2. Shortage of workers

Manufacturers are collaborating with the local community and technical colleges. Apprenticeships and internships that lead to full-time work are also available. Some even aid in the development of programs and the training of applicants in areas like as die manufacturing, welding, robotics programming, and sheet rolling.

3. Identifying and Recruiting Qualified Leads

Manufacturers’ traditional marketing efforts are proving to be significantly less effective than in the past; trade exhibitions, trade ads, and cold calls aren’t performing as well as they once did. In the age of digital marketing, businesses must do more than just put up a website and hope that their top prospects find it.

Impact of Regional Resource-Based Manufacturing

1. Cost-cutting: The closeness of the raw materials and the production unit will help to save transportation costs. This will aid in the hiring of more skilled workers from that location. In Punjab, ex-millers buy rice from local farmers, ensuring a ready market.
2. Supply chain: A supply chain is a network that connects a company and its suppliers to provide a certain product to the final consumer. The expansion of the region’s supply chain creates more work opportunities. This network encompasses a wide range of activities, people, entities, data, and resources. As a result, regional resource-based manufacturing generates auxiliary sectors, which in turn generate additional jobs.
3. Specialization: People with specialized skill sets are necessary to operate in industries where the major focus is on a single sort of resource. As a result, there will be a demand for employees with certain skills. For example, a distillery and a manufacturing facility for alcoholic beverages.
4. Creating ancillary industries: When a specific type of industry is formed with specialized resources, various little industries in the form of MSMEs are established to supply smaller things to the main industry. These tiny businesses will aid in the creation of new jobs. Aside from that, there are secondary job opportunities in the form of cafes, hotels, and shops that spring up to serve the industry’s workers. All of these would result in more jobs being created. For example, the vehicle manufacturer is a major industry in Gurugram and Chennai. Smaller industries that supply smaller goods to the major sector, such as nuts, axles, and cranks, have sprung up as a result of the presence of vehicle production. Or Thousands of dairy farmers in Gujarat were employed by the dairy business.
5. Greater production: Well-organized companies may take advantage of locally available raw materials, allowing for more production and processing. This would aid in the general growth of the region.
6. Entrepreneurial opportunities: The industry also creates entrepreneurship and employment opportunities in ancillary industries and services in the secondary and tertiary sectors.
7. Consumer goods demand: Demand for consumer goods would be higher and more diverse. This sets in motion a cycle of probable expansion in secondary and tertiary sector production, distribution, and support.
8. Reduce the income gap: Indirectly, income disparity may be lowered by lowering the incomes of the wealthiest and raising the incomes of the lowest. Policies that focus on the latter include increasing employment or incomes, as well as transferring income.

 There are six policies that may be used to minimize economic inequality:

• Increase the minimum wage.
• Expand the Earned Income Tax.
• Build assets for working families.
• Invest in education.
• Make the tax code more progressive.
• End residential segregation

Conclusion

• India has a wealth of mineral assets and resources that can support “Made in India,” but we haven’t been able to take advantage of them. For example, bauxite, one of the most sought-after worldwide natural resources, is still largely undiscovered and underutilized in India.
• The sluggish expansion of India’s natural resource sector is mostly to blame for the country’s slow GDP growth.
• Brazil, Canada, Australia, and a few Latin American countries were among the first to use natural resources, but they are now far ahead of India in terms of regional resource-based manufacturing.
• Mining becomes a curse (environmental and habitat difficulties) rather than a cause of progress if this method is not taken.

It has been noticed that the rate of development in some locations is extremely rapid due to geographic advantages and a high degree of industrialization, while other areas lag behind. Regional manufacturing, in this light, becomes a solution to a variety of socioeconomic issues.