AIDS BRIEF for Sectoral Planners and Managers: Manufacturing Sector

The sector is characterized by the physical or chemical transformation of materials or compounds into new products, with a strong multiplier effect on the economy. In the US, a final sale in manufacturing of $1 results in a total increase in the economy of $1.62, compared to $1.30 for services. Manufacturing is defined as the making of articles by machinery as well as by hand, with industries usually located in areas with natural resources, good transportation, mild climates, and a large population. The sector can be broadly categorized into heavy or light, and durable or non-durable goods, with three manufacturing processes: synthetic, where basic ingredients are mixed or assembled; extractive, where raw materials are broken down into their component parts; and conditioning, where the form of raw materials is changed. The manufacturing sector is a major employer, with a significant impact on the economy. Labour is an essential input in the manufacturing sector, and any factor affecting the availability, performance, or cost of labour will have a direct effect on the operation. In the event of significant numbers of workers being infected with HIV, productivity will be affected due to morbidity, other absenteeism, mortality, poor staff morale, and disruption in the workplace. The costs of the epidemic will be felt throughout the payroll, depending on how the worker's provision for healthcare, pension, insurance, and housing is structured. Where the worker is paid a wage for work and makes their own provision for these benefits, there will be no immediate impact on the company's payroll cost. However, in the longer term, if the state has to bear these costs, either revenue will have to be reallocated or additional revenue raised. Manufacturing enterprises require investment to maintain or increase capital stocks, with possible sources including reinvested profits, money raised through banks, financial institutions, or stock markets, and local capital, which may be reduced as assets are used to meet immediate health needs. Investors may be sensitive to risks such as the HIV/AIDS situation in countries where investment is contemplated. The manufacturing sector's response to the HIV/AIDS epidemic should ideally consist of management strategies, a workplace HIV/AIDS/STD/TB programme, and community participation. Management strategies involve leading manufacturers to adjust quickly to changes in the market and competitors, and to react to the strategic issue of HIV/AIDS. A workplace HIV/AIDS/STD/TB programme should be implemented to train employees to enable them to keep up with the ongoing high technology, and to provide a precedent for a workplace programme for HIV/AIDS prevention, care, and support. Community participation is essential to extend initiatives into the surrounding communities, share resources, develop non-traditional partnerships, and utilize opportunities to meet the multiple challenges posed by the epidemic. An audit should be conducted to measure the organization's response and to prioritize areas for future action.