If you want to survive in the manufacturing industry, you need to keep up with the current trends. Here are the top manufacturing business ideas for you!
Are you looking into putting up a manufacturing business this 2021? You’ve come to the right place! Here, we have compiled the best factory business ideas as well as simple manufacturing business ideas for rural areas you can try.
Manufacturing plays a crucial role in improving a society’s economy. In fact, a country’s economic strength is measured by how developed its manufacturing industry is. It raises living standards as well as leads to more productivity, exports, innovation, and jobs.
But how does it benefit you as a businessperson? Since manufacturing involves transforming raw materials into more valuable finished goods, you earn more profit.
Not sure what manufacturing business to start? Check out these 10 good manufacturing business ideas and large-scale manufacturing business ideas. If you’re also into sustainability, we’ve included eco-friendly manufacturing business ideas.
#1 Electronic Manufacturing Business Ideas
Source: Pexels
Although the COVID-19 pandemic has greatly affected the electronics industry in 2020, it is expected to grow by around 6% in 2021. The industry has been continuously advancing and developing to create smarter devices that would allow consumers to live more conveniently. It comprises both consumer electronics (e.g. home appliances, computers, etc.) and industrial electronics (e.g. HVAC, lighting, etc.).
Investment Range to Start
- Manufacturing business under 10 Lakhs
- 1 Lakh (small suburban areas) – 10 Lakhs (metro cities)
Niche Markets/Business Cases
- Urban areas
- Government
- Military and aircraft products
- Medical devices and communication technology
- Industrial
- Large-scale computers
- Television and radio broadcasting equipment
- Electronic office equipment
- Consumer
- Television
- Cell phone
- Radios
- DVD players
- Video game systems
- Home alarm and intercommunication systems
Why Electronics Manufacturing
- Fast-growing industry
- Huge demand
- Large market
- Easy to start
- Can be easily sold
#2 Electrical Manufacturing Business Ideas
Source: Pexels
Electrical equipment and devices have been helpful in improving the productivity as well as the efficiency of various processes ever since. Electrical machines have also evolved over time, but the great demand for them is still there to automate production processes. They also aim to create intelligent systems to lower energy efficiency levels and to comply with more stringent production standards.
For other manufacturing industries, compliance with various standards is among the most important factors that need to be taken into account. By starting an electrical manufacturing business, your goal is to help these industries comply with these standards by providing them with improved technologies.
Investment Range to Start
- Manufacturing business under 30 Lakhs
- 3 Lakhs (small suburban areas) – 20 Lakhs (metro cities)
Niche Markets/Business Cases
- Light manufacturing business ideas
- Power generation
- Household appliance manufacturing
- Battery manufacturing
- Wiring device manufacturing
- Security systems
- Computer networking
- Home theaters
Why Electrical Manufacturing
- Extremely diversified and most flourishing sector
- A great demand for energy-efficient equipment
- Large market
- Easy to sell
#3 Automobile Parts Manufacturing Business Ideas
Source: Pexels
The automobile industry is still growing rapidly no matter where you go. In fact, the projected market size in 2025 will be USD 25,719 million from USD 20,321 million in 2020.
A lot of automobile manufacturers are now investing heavily in automatic hybrid vehicles that offer more comfort features. But, of course, they would need the help of automobile parts manufacturers to achieve their goals. Auto parts manufacturing plays a crucial role in ensuring the success and growth of the automobile industry.
Investment Range to Start
- Manufacturing business under 20 Lakhs
- 5 Lakhs (small suburban areas) – 15 Lakhs (metro cities)
Niche Markets/Business Cases
- Heavy Commercial Vehicles
- Light Commercial Vehicles
- Passenger Cars
- Battery
- Cooling System
- Underbody Components
- Engine Components
- Automotive Filter
- Lighting Components
- Electrical Components, etc.
Why Automobile Parts Manufacturing
- Booming industry
- Growing demand for lighter and more fuel-efficient auto parts
- Easy availability of raw materials
- You don’t need to manufacturer all components (only the required parts on a regular basis)
#4 Machine Manufacturing Business Ideas
Source: Pexels
Manufacturing machines is another one of the best B2B manufacturing business ideas you can try. No business is not in need of machines for their daily processes. Machines help in streamlining a business’s processes and in increasing productivity.
The main challenge you are faced with is to produce machines that are cheaper, faster, and better than your competitors to survive in the industry. Not only that, but you should also be able to provide your customers with solutions that are specific to their needs to ensure sales.
Investment Range to Start
- 200 Lakhs – 1,200 Lakhs
Niche Markets/Business Cases
- Agricultural, automobile, chemical, pharmaceutical, fashion, food, and beverage industries
- OEM manufacturers
- Heavy equipment
- Industrial machines
- Construction machines
- Paper and printing machines
- Textile manufacturing machines, etc.
Why Machine Manufacturing
- Steady industry growth
- High demand (the majority of businesses need machines)
- Diverse market
#5 Medical Manufacturing Business Ideas
Source: Pexels
The COVID-19 pandemic has caused a great impact on the healthcare industry. The sudden increase in the demands for medical supplies and equipment has disrupted the supply chain which became a challenge to medical manufacturers. This also gave rise to the need for more efficient devices in the healthcare sector in case such an unfortunate event happens again.
As for market growth, the medical manufacturing industry market is expected to grow at a CAGR of 5.4%. Also, medical technology businesses have been heavily investing in research and development which created a favorable scenario for the industry. For instance, more devices are now being approved so that they can reach customers faster, especially in emergency situations.
Investment Range to Start
- 1,500 Lakhs – 3,500 Lakhs
Niche Markets/Business Cases
- Drug manufacturing
- General surgery
- Nephrology
- Dental
- Ophthalmics
- Diabetes care
- Wound management
- Diagnostic imaging
- Cardiovascular devices
- Orthopedic devices
Why Medical Device Manufacturing
- High demand for more intuitive and innovative medical devices with longer lifespans
- The use of 3D printing technology is now being accepted for creating medical implants
- Increasing need to improve patient care more cost-effectively through cloud-based solutions
- Many laws have been modified to allow medical products to reach the desired customers quickly which provides more opportunities for new medical devices
#6 Chemical Manufacturing Business Ideas
Source: Pexels
The chemical industry is among the most essential and largest industries worldwide. It plays an important role in boosting the economy. Without chemical manufacturing, other industries won’t be able to progress because they rely on chemicals for their systems to work. In fact, approximately 50% of the chemical industry’s output is being used by other manufacturing industries.
Investment Range to Start
- 7,000 Lakhs – 30,000 Lakhs
Niche Markets/Business Cases
- Automotive, industrial, and manufacturing operations
- Agriculture, construction, and packaging industries
- Other manufacturing opportunities include the following:
- Perfume making
- Nail polish manufacturing
- Toilet preparation, cleaning compound, and soap manufacturing
- Paint, adhesive, and coating manufacturing
- Medicine and pharmaceutical manufacturing
- Pesticide, insecticide, fungicide, and fertilizer manufacturing
- Filament, artificial synthetic fiber, synthetic rubber, and resin manufacturing
Why Chemical Manufacturing
- Promising growth trends
- Wide range of market
- Diverse products to manufacture
- Chemical products are used daily so you don’t need to worry about sales
- Profitable
- Big potential in export
#7 Home Manufacturing Business Ideas
Source: Pexels
Are you looking for cheap manufacturing business ideas? The easiest manufacturing business to start would be a small manufacturing business from home. For stay-at-home moms or students who want to earn extra income, starting a small manufacturing business at home would be a great idea. Once you have earned enough profit, you can scale up your business and put up an actual shop for your buyers.
Investment Range to Start
- Manufacturing business under 1 lakh
- 25,000 Rupees – 1 Lakh
Niche Markets/Business Cases
Below are a few home business ideas you can try:
- Embroidery – Create custom embroidered products by investing in an embroidery machine.
- Jewelry Maker – You can learn a few basic jewelry-making skills and buy some good-quality tools for your business.
- Glass Bead Production – Create beads from glass or other similar materials and sell them to jewelry manufacturers or your friends.
- Bread Maker – This is an easy business to start. You just need to learn how to bake and acquire the necessary baking materials.
- Candymaker – If there are many kids in your area, a candy business would be excellent
- Snack Foods Maker – If you are into healthy snacks and want to promote a healthy living lifestyle, this is for you.
Why Home Manufacturing
- Wide variety of options
- Easy to do and sell
- Cheapest business to start
- Fast way to earn money
- You do not need to rent a business space
- Saves money and time
- Flexible working hours
- Fewer risks
#8 Agriculture Manufacturing Business Ideas
Source: Pexels
If you are searching for the most profitable manufacturing business to start in rural areas, agriculture manufacturing would be your best option. This might also be the best manufacturing business in village areas.
According to AP News, the population worldwide has quadrupled in just one century. It is expected to reach around 10 billion by 2050 from 7 billion in 2020. This will also increase the demand for food globally by 59%-98% by 2050 which will shape the agricultural market in unforeseen ways. This will force farmers worldwide to increase their crop production to meet this demand.
Investment Range to Start
- Manufacturing business ideas under 10 Lakhs
- 50,000 Rupees – 7 Lakh
Niche Markets/Business Cases
- Consumers, supermarkets, and restaurants
- Food production
- Poultry farming
- Agrichemicals
- Seed supply
- Farm machinery
- Marketing and sales of agricultural products
- Agricultural production byproducts (e.g. fuel)
Why Agricultural Production
- Fast-growing market (growing demand for food as population increases)
- You can start it as a small-scale business
- Makes money right away
- Various options
#9 Toy Manufacturing Business Ideas
Source: Pexels
Manufacturing toys are among the top creative manufacturing business ideas you can try. The toys market worldwide is projected to grow at a CAGR of 4% until 2023. Below are the factors fueling the growth of the toy industry:
- Demand for instrument replicas like stuffed toys, art and craft toys, as well as musical instruments
- The recent trend to buy educational toys to help in the cognitive development of children
- The increasing number of fictional television shows and movies
- Extensive use of jigsaw puzzles and board games for teaching communication skills
Investment Range to Start
- Best manufacturing business to start with 15 Lakhs
- 1 Lakh – 10 Lakhs
Niche Markets/Business Cases
- Age groups: 0-3, 3-5, 5-12, 12-18
- Categories:
- Dolls
- Construction
- Outdoor and sports
- Games and puzzles
- Infant and preschool
- Others
- Distribution Channels:
- Online
- Retail
Why Toy Manufacturing
- Large market
- Various niche markets
- Small scale or large scale
- Diverse products
- Easy to sell
#10 Plastic Manufacturing Business Ideas
Source: Unsplash
Do you want other cheap manufacturing business ideas with a broader market? You can try a plastic manufacturing business. The global plastic market size is expected to grow at a CAGR of 4.2% in the coming years. The packaging industry holds the largest market share with India and China as the leading consumers.
Plastic products have been in demand and used every day because they are lightweight, durable, waterproof, and recyclable. And with the COVID pandemic, this demand even increased to keep up with the need for medical personal protective equipment which are made of plastic.
Investment Range to Start
- Manufacturing business under 25 Lakhs
- 50,000 Rupees – 10 Lakhs
Niche Markets/Business Cases
- Toys
- Food and beverage packaging
- Plastic bags
- Kitchen utensils
- Automotive
- Decorations
- Construction Pipes
- Medical products
- Consumer good appliances
Why Plastic Container Manufacturing
- Huge demand for plastic items (they are used daily)
- Can be done from home
- Profitable business
- Low investment
- Easy to manufacture
- Wide product range (water bottles, plastic cups, chairs, toys, mugs, PVC pipes, etc.)
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Best Future Business Ideas 2020-2030
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Small Town Business Ideas
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Beauty Business Ideas
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Printing Business Ideas
Conclusion
Most businesses are in the manufacturing industry because they can generate more profit compared to other businesses. Aside from generating more sales for your business, you also help your economy prosper by diversifying your country’s manufacturing industries.
You can even help in reducing poverty and unemployment in your country which should be among the main goals of every successful business. So hopefully, our compilation of the best innovative manufacturing business ideas and low-cost manufacturing ideas was able to help you find the ideal business for you.
