Major manufactured products consist of transportation equipment, computers and electronics, chemicals, machinery, food and products made of plastic, metal and paper. Demand depends entirely on consumer spending. And profitability of individual manufacturing companies is determined on efficient production and distribution. The larger companies in this sector often have large economies of scale in purchasing, production and marketing. Subsequently, the smaller manufacturing companies are able to compete by producing specialized products.

Most manufacturers sell to wholesalers, so developing and maintaining long-term relationships with repeat customers are central goals to marketing and sales initiatives. Additionally, although pricing is important, product quality and timely delivery are often more crucial. Price pressures, for instance, are high for North American based manufacturers that compete with lower-cost foreign producers. As a result, these manufacturers are increasingly setting their sights on specialty products that have a low-labor, but high technology content.

• Business-to-Business Internet Communication: Many manufacturers have cut delivery time and bypassed distributors by ordering parts and products through Internet sites. Internet auction sites enable suppliers to bid to fill supply contracts. The success of Internet-based procurement is tied to the enhancement of logistics networks, so suppliers can essentially keep delivery costs low.

• Improved Logistics: Many manufacturers invest in distribution technology and better logistics communication in an effort to minimize inventories and speed distribution. Such enhancements include satellite communication links with delivery trucks, cargo containers with communication capabilities, specialized cargo ships that can be unloaded in less time and radio frequency identification (RFID) tags which allow individual products to be tracked. Ultimately, superior communication between suppliers and manufacturers eases productions scheduling and product flow.                                                                                                                                             
  
• Green Manufacturing Practices: Along with investing in overall energy efficiency, manufacturers are also redesigning plants and entire processes in order to reduce emissions and the company’s carbon footprint. These types of green investments can provide an attractive return and allow the company to promote a positive environmental message to consumers and investors.