The significance of the local market for manufacturing industries

Abstract

An economic transformation is apparent in the Maltese Islands. Changes are taking place with regard to the else of the firm and also as regards policies of firms at present in progress or already planned, necessitating the widening of the local markets and the tapping of foreign market for future production expansion. Here lies the problem and the ‘raison d'etre’ of this project. We shall study the role of industry and the development planning of the manufacturing industries; to consider in particular the factors which limit the size of the local market and the significance to the manufacturing units. In a micro-sense we have to assess a) through theoretical discussion the extent to which the local market to a limiting factor; b) through research and investigation to provide an additional background on the forces hindering growth; 9) firm results obtained to suggest remedial action where necessary. In a wider sense, the purpose of this project aims, first, to provide information regarding the significance of the local market to an infant economy; secondly, to review the need of expansion of the manufacturing unite against the background of estimated population trends and the local market potential; finally, to discuss the main problem local manufacturers must face when the stage of extending into foreign markets is reached. The project suggests some remedies that may help to solve the problem of extending the market overseas. In their attempt at breakthrough, the application of Marketing techniques has been stressed.