Over the next three years, manufacturers increasingly plan to use service as a competitive differentiator and aim to grow business through product service innovation and value-added services for existing products, according to Business Strategy: Modernizing the Service Chain with Smart Technology, a report from IDC Manufacturing Insights.

The new global marketplace has brought many benefits for consumers, while also ushering in new levels of expectations for manufacturers, which can complicate the delivery of products.

If the time is right for U.S. manufacturers of all sizes to consider modernizing their operations, it is important to first look at modernizing their supply chain and logistics operations in order to optimize potential investments. Manufacturers must think holistically about their business before making these decisions, and this includes looking at their supply chain and distribution models and the impacts of these investments on their operations.

As manufacturing seeks to drive down costs and improve efficiency, RFID technology is increasingly being considered for use in the sector's supply chain.

New York's manufacturing sector receives an 'F' and its logistics gets a 'C'. The situation isn't much better for several nearby states, according to the 2013 Manufacturing and Logistics Report Card, an in-depth analysis from Ball State University's Center for Business and Economic Research. The report grades all 50 states, ranking several areas of the economy.

U.S. manufacturing isn't likely return to prerecession levels for at least year and a half largely because the sector is grappling with weak demand for American exports and federal government cutbacks.