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What makes service different than manufacturing? 

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lkballer24 | Student, Grade 11 | (Level 1) Valedictorian

Posted September 20, 2013 at 8:20 PM via web

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What makes service different than manufacturing? 

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Michelle Ossa | College Teacher | (Level 3) Educator Emeritus

Posted September 20, 2013 at 11:44 PM (Answer #1)

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The service industry is different from the manufacturing industry. The service industry may depend almost entirely on the manufacturing industry because the service that is being provided is that of offering the manufactured product, be it 

  • in commercials
  • for promotion
  • for consumption and preparation
  • for entertainment

Therefore, when the manufacturers produce one item, such item has to be "served up" to the public for consumption or purchase. This requires the human factor: that which can only be provided by human agency. 

Service does usually require a higher labor content, and manufacturing does involve a higher capital than the service industry. However, there are some service industries that by-pass the manufacturing industry in terms of capital needed, mainly because they service the production and assembly lines that are needed to create production. Therefore, it is safe to say that both, the service and manufacturing industries require a similar amount of capital. 

Included is a list of sectors and the capital that they require to operate. Notice how advertising, a service, is one of the highest in capital. 

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