Once one accepts the importance of manufacturing, the next question is how is it doing? Is U.S. manufacturing healthy and not in need of a national manufacturing policy or is it in trouble and in need of smarter policies?
Industrial machinery is expected to be the top driver of U.S. export and import trade now and in the next decade, according to the latest HSBC Commercial Banking Trade Forecast.
When people are asked to define lean, as often as not the definition centers on waste. But lean isn't all about waste. It is more about building organizations than trimming them. A popular definition is "do more with less."
Will 2013 be the year of the manufacturing renaissance? Plenty of groups are hoping so. NAM issued its "manufacturing renaissance" strategy over a year ago. Willy Shih and Gary Pisano of the Harvard Business School, as well as Craig Giffi at Deloitte, are leading advocates for policies that will encourage manufacturing innovation on our shores. And Boston Consulting Group has issued a series of reports pointing to a steady rise in new investment in American manufacturing over the next five years.
Multi-tier supply chain visibility is no longer just a pipe dream -- market leaders in every industry segment have visibility not just into their important tier 1 suppliers, but at least a limited cross-section of their tier 2 and tier 3 suppliers as well.
The first to arrive in a market is often the one who ends up owning the dominating market share. But simply recognizing a trend is too little, too late. There will already be a line of other manufacturers who have the new customized product, flexible supply chain and tailored pricing structure in place.
America has done a good job of solving internal manufacturing problems, improving quality and reducing waste and costs. These internal programs have kept American manufacturing in the game. But there is a problem. Manufacturing isn't growing in terms of factories, percentage of GDP, employees, or sales revenue.
The elements of supply chain confidence are visibility and control, the lack of which will increase supply chain risk. Without them, you are at great risk.
After a half-decade of running on the treadmill, manufacturers are once again positioning themselves to achieve growth. An Accenture survey found that 89 percent of 81 senior manufacturing executives at U.S.-based companies with global operations are expecting growth. In fact, about four in 10 companies surveyed already have successfully restored either their production or profitability levels beyond pre-recession levels of 2007.
The strongest case Africa presents for its attractiveness to manufacturing is its GDP growth. The continent is home to six out of the top 10 countries that are experiencing economic growth, according to an analysis by the Economist. Over the past decade, it has been the second-fasting growing region in the world, averaging growth of 5.1 percent during that period.
