ECONOMY: HOW TO KICKSTART SMALL-SCALE MANUFACTURINGDawn #Should_BeMarch 24, 2019
Small-scale manufacturing is widely regarded by experts as the solution to many economic problems confronting developing countries.
Certain proactive steps have been taken by the government, including low mark-up loans, industrial parks, industrial excellence board, etc.
The government has started “industrial parks” but some modifications are required to improve them.
In the short term, it is difficult for Pakistan to start producing customised machine tools or manufacturing machinery but, at this stage, it is better to import and source cheap manufacturing machinery from China or any other suitable country.
Since the import process is complicated, the government should import a range of machinery for people through government-controlled duty-free malls.
Therefore, at this stage, the government should import specific machinery and make it available at purpose-built utility shops and stores, thus making it easy for anybody to buy the machinery.
But in order to penetrate the existing market, the new entrant has to lower the cost, reduce the weight, and improve quality or increase functionality.
It is indeed a profitable business, especially if the produced furniture is modular or has some innovation in design or material and is of high quality.
Before starting this type of business, it is advisable, however, to conduct a thorough market survey and feasibility studies to identify agricultural products that can potentially be improved and sold readily.
Operating a large-scale nails, nuts and bolts manufacturing business offers the privilege of exploring international markets.