achilles Posted December 31, 2011 Posted December 31, 2011 Dear ICF'rs, many of us might be working in either of these 2 sectors. Which sector is a better one to work in on the following parameters- 1. Longevity. 2. Remuneration. 3. Opportunities. 4. Starting our own Business. 5. Returns in job/business. 6. Competition.
bulbul Posted December 31, 2011 Posted December 31, 2011 1. Longevity. - depends on you 2. Remuneration - Service 3. Opportunities - Service 4. Starting our own Business - you can start a Manufactruring buseness and offer service also 5. Returns in job/business - service 6. Competition.- No idea
DomainK Posted December 31, 2011 Posted December 31, 2011 Starting your own business: Manufacturing typically takes a capital and involves labor - HR nightmare for a first timer. Make one mistake and the unions will be all over you. There are also many laws and guidelines on mnay things including internal safety, external safety, waste management, labor management, raw material management, use of chemicals and thousand other things that one has to be careful about. In most cases one has to know the government authorities and keep them happy to keep things smooth. Depending on the service, you can start your business with a low capital, may be money borrowed from a friend. Service also allows far more flexibility for innovations and brand positioning, packaging etc depending on the initial success as there are less fixed costs associated with services where it takes more effort and money to change the core product in manufacturing business. On the contrary, in manufacturing, it takes less brain in setting up the business as it more or less follows a pattern. You know exactly what it takes to set up a plant, package the product and deliver it to the market in terms of money as well as labor. If you have the capital, you can also engage professional agencies for branding and promotions, may be even for sales. The model for everything in manufacturing is usually fixed, not flexible and does not change too fast - which can be an advantage or a disadvantage depending on how you see it.
Prakat Posted December 31, 2011 Posted December 31, 2011 1. Manufacturing - although both industries have a long and bright future in India, when it comes to long-term health individual companies in manufacturing are geared for survival. Service sector companies are easier to start-up but can also fold just as easily because of factors, external (economy, govt. policies in India and abroad etc.) and internal (loss of one or two bread and butter clients can bring the shutters down on a medium sized service organization) 2. Service - while the pay scales even out at the top of the organization in both industries, till the middle, Service pays much better than a manufacturing job for most cases. Unless you are in a specialized trade in manufacturing like product design, testing, etc. you will be earning much less than your service sector counterparts till you hit upper management. 3. Not clear about this. Opportunities for business or for job-seekers? 4. Service - manufacturing sector is very capital and labour intensive. The service industry is easier to get into. If you want to start a Service sector company, then getting funding is easier (a lot less paperwork and legalwork is needed as opposed to manufacturing) and finding office-space, hands and feet is almost as easy as picking up a newspaper and searching the classifieds. 5. This is of course directly related to quality of service, efficiencies, markets, worthiness etc. Would tend to slant to manufacturing though all things considered. 6. Service sector is a lot more competitive just in terms of numbers (It's not even funny how many service companies pitch for the same new business!) But so is manufacturing when it comes to maintaining and updating product quality just to stay in the running in the marketplace.
akshayxyz Posted December 31, 2011 Posted December 31, 2011 do what you enjoy.. forget about these superficial criteria.
achilles Posted January 6, 2012 Author Posted January 6, 2012 Thank you so much Domaink, Pravin, Akshay and Dumdum. I was curious to know however as to why and how Manufacturing doesn't pay as much as the Service sector? What is it that maybe doesn't let them provide the kind of remuneration packages that Service does?
punjabi_khota Posted January 6, 2012 Posted January 6, 2012 Thank you so much Domaink, Pravin, Akshay and Dumdum. I was curious to know however as to why and how Manufacturing doesn't pay as much as the Service sector? What is it that maybe doesn't let them provide the kind of remuneration packages that Service does? Because anything can be manufactured cheaply in China ?
akshayxyz Posted January 6, 2012 Posted January 6, 2012 Its just simple economics - in free market pricing primarily boils down to demand vs supply (there have to be some manipulations and regulations, but not on larger scale). It is easier to find lower skilled labor..but not because that they are not capable of acquiring high skills, but more because not everyone is privileged enough to get the desired level and quality of skills. Also, even for similar job functions across different sectors.. due to existing differential in pay grades - 'better educated' job seekers would be first to pick 'better' places, and there is still tough competition for the remaining not so well paid jobs for similar functions.
Mariyam Posted January 6, 2012 Posted January 6, 2012 Thank you so much Domaink, Pravin, Akshay and Dumdum. I was curious to know however as to why and how Manufacturing doesn't pay as much as the Service sector? What is it that maybe doesn't let them provide the kind of remuneration packages that Service does? For a manufacturing unit, the mid level management, often involves supervisors and shop floor leaders who do not have much *thinking* to do. Their job, is to ensure that the systems in place keep functioning. More like a maintenance job. A mid level manager in a service sector outfit however however has no such *thought restrictions* and the job involves more decision making. Hence the difference in remuneration. I say this based on a grand total of 1.5 yrs of work exp. 1 year in the service sector, and currently in mnfg management. :P
zen Posted January 6, 2012 Posted January 6, 2012 Dear ICF'rs, many of us might be working in either of these 2 sectors. Which sector is a better one to work in on the following parameters- 1. Longevity. 2. Remuneration. 3. Opportunities. 4. Starting our own Business. 5. Returns in job/business. 6. Competition. Longevity, Remuneration and Opportunities mainly depend upon your skill level and background. It may not be too dependent on whether you chose manufacturing sector or service sector. You get paid for the job function. Say you are an accountant so you get paid for being an accountant whether you are working in a company that's manufacturing or providing services. This is assuming that both companies are similar in size and market share, and your responsibilities and decision making requirements are similar Starting your own business again depends upon your skill set. Say you are an HR specialist and you have good contacts so may be you could do well by setting up your own HR company. On the other hand, say you are not an accountant, a doctor, a lawyer, etc then you might be better of doing trading/retail etc or if you have capital go into manufacturing. Again depends upon interest levels Best way to move is to introspect, see what your interests are, what you would love doing, etc .... The passion that you can bring in for what you love to do compensates for a lot of things and serves as a motivation. On the other hand, if you do things you don't love, you could just go through the motions at times and that may not be that much fulfilling overall
Lurker Posted January 6, 2012 Posted January 6, 2012 I was curious to know however as to why and how Manufacturing doesn't pay as much as the Service sector? What is it that maybe doesn't let them provide the kind of remuneration packages that Service does? Because service by definition is something that can not be quantified. Take building cars for example. You have a certain cost to it. Material cost, labor cost, transportation, marketing, dealer costs etc. But most of them are a fixed cost. If you spent 20K building such a car you can stand to charge 25K off it and make a decent profit. The moment you charge say 40K people will go someplace else. Services are harder to quantify. They are more qualitative. Take IT for instance. You have Indian consulting companies competing with multinational giants. An Indian IT company will pitch to place a person at $50/hr. A multinational would probably charge 3 times that number. The formers USP would be low cost. The latter's USP would be great technical pool, direct partnership with software/hardware vendors, quicker turnaround time, better business knowledge etc. All good points but hard to put a $$ value to it. Does that make sense? Personally though I think services are overblown. There is no reason a broker, whether he is real estate or Wall Street, should be making as much money as he does. xxx
Malcolm Merlyn Posted January 6, 2012 Posted January 6, 2012 Manufacturing.........Look at Germany.It is standing among ruins of other economies.Wonder why?
Vijay.Sharma Posted January 6, 2012 Posted January 6, 2012 Dear ICF'rs, many of us might be working in either of these 2 sectors. Which sector is a better one to work in on the following parameters- 1. Longevity. 2. Remuneration. 3. Opportunities. 4. Starting our own Business. 5. Returns in job/business. 6. Competition.Achilles, I can't help but second Akshay's opinion big time - forget the industry dude...spend the next 2-3 years (I guess u are 23 now and must be in your first or second job or yet to start) to figure out what it is that you want to do (if you haven't already). Focus on that and the rest will follow.
zen Posted January 7, 2012 Posted January 7, 2012 Take building cars for example. You have a certain cost to it. Material cost, labor cost, transportation, marketing, dealer costs etc. But most of them are a fixed cost. If you spent 20K building such a car you can stand to charge 25K off it and make a decent profit. The moment you charge say 40K people will go someplace else. "Branding and product positioning" helps to maintain a healthy bottom-line
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