Manufacturing has the potential to spark productivity more than any other sector in the economy. It is important to note that, contrary to common perceptions, manufacturing does not ‘compete’ with other industries such as the services sector, but rather, it is an ‘enabler’ for productivity for all other sectors.
For starters, it has been proven that, as long as the share of manufacturing to the GDP is rising, similarly, the per capita growth rate (which reflects average incomes), continues to rise. This is what economists have referred to as, structural change bonus. Read more. Source | The Exchange