Manufacturing landscape ‘confusing’

There are certainly different takes on the current state of American manufacturing, depending on what parameters you choose to look through. The problem is that many of these measuring sticks provide a contradictory idea of what is going on in the industry.

A recent article from Cerasis attempted to examine the entire marketplace. The biggest takeaway from the article is the sector is confusing.

"From the rapid decline of new orders and the ISM's PMI, to the talks of reshoring as a reality to bring more manufacturing to the U.S., all to the dispute and 'weirdness' of how all of these various indexes are really capturing the true outlook on the renaissance (or perhaps volatility) of American manufacturing," the article reads. "In short, the current state of American Manufacturing is just plain….CONFUSING!"

The best takeaway from article comes from the conclusion. It mentions that despite all the data, opinions, thoughts and hopes, organizations need to constantly work toward improving the landscape. This can happen by keeping your head down, working smart and hard and using common sense. On top of that, organizations need to make decisions based on long term impact, mitigating risk and staying effective.

The article adds that in 2014, the focus needs to be on investments in operations improvement and technology. This could mean hiring the right talent to manage the process or deploying a software solution that can improve overall operations. Regardless, organizations should partner with a business management software provider to help improve overall operations.

Manufacturing software innovations ‘transforming’ industry

When it comes to the manufacturing industry, there is a shift going on where many organizations are bringing operations back to the United States. As the cost of maintaining manufacturing facilities overseas grows because the price of labor, energy and transportation increases, it makes more business sense to open plants in the states, creating quality jobs in the process.

A recent article from Strategy Business examined this growing trend. The piece says that the current change in global manufacturing is happening faster than at any point in recent history. On top of that, the technology and software used in large-scale manufacturing have created a new era of proficiency.

The article goes on to say that there is a new wave of software solutions being created that are going to transform the industry and boost the manufacturing offerings in the U.S. There are several ways that this will happen, which include:

  • Product design – Creating a virtual representation of products to improve design, testing and optimization
  • Production planning – Simulating a wide range of scenarios for cost, speed, productivity, utilization, energy usage and quality
  • Engineering – Programming and coordinating any number of automated systems to optimize workflow
  • Execution – Monitoring production performances in real time for both short and long-term goals
  • Service – Integrating systems like mobile devices, big data and analytics to create opportunities for remote monitoring and advanced predictive failure analysis that will reduce costs and improve utilization and productivity

With the help of a solution provider that specializes in manufacturing business software, any company can take steps toward improving its overall operations.

Manufacturing trends for 2014

When it comes to the manufacturing industry, there is no shortage of challenges that can cause organizations to stumble. However, after falling on hard times because of the economic downturn, the market has experienced strong growth, according to a recent Motley Fool article.

"After a remarkable recovery from the depths of the recession, the manufacturing sector continues to thrive in America," the article reads. "Recent data shows that the U.S. trade deficit sank to its lowest level in four years in November. Meanwhile, industrial stocks have climbed 183% over the past five years, and experts believe that manufacturing will fully recover to pre-recession levels by the end of 2014."

The article goes on to talk about several major challenges that will be a factor in the manufacturing industry in 2014. Many of these are continuations of things that are already affecting the market. These include:

  • Rise of reshoring in the U.S.
  • Natural gas revolution
  • 3D printing boom
  • Debut of the industrial internet
  • Lingering "skills gap"
  • U.S. trade deficit
  • High-tech materials like carbon fiber

These areas will not cause splashed overnight, but instead be a series of ripples that will be felt in many different ways. Regardless, it is something that should not be ignored by businesses.

Companies should use this as motivation to upgrade their operations and make sure they are ready for any changes that could be coming down the pipeline. One way to do this is through the use of manufacturing business software and ERP solutions, which can improve efficiency and provide better insight into overall operations.

‘Re-shoring’ a major trend in manufacturing in 2013

When it comes to the manufacturing landscape, there were several stories from the last year that had a major impact on the industry. From natural disasters to major shifts in operational efficiency, there was much to talk about in 2013.

A recent series of articles from Manufactuting.net examined some of the major stories from the industry over the last year. Coming in at number two on the list is the seemingly sudden push to start "re-shoring" operations away from areas like China and setting up shop closer to home.

"Manufacturing.net has been covering the 're-shoring' trend for years, but in 2013, the trend finally hit mainstream, and became a real possibility for far more companies than previously thought possible," the article reads. "Re-shoring was discussed in the news and within important economic circles, and even the President mentioned it multiple times during the State of the Union and other key speeches."

The article mentions that there are several factors pushing this trend. These include fluctuating values of various currencies, labor rate inflation, concern over supply and operation interruption and improved energy and gas prices in the U.S. On top of that, the "Made in America" moniker is being attacked to products from local food to Mac Pro computers.

Bringing operations back to the United States is easier said than done. However, with the right manufacturing business software in place, pivoting operations from one country to another can be simpler because it streamlines overall operations and allows businesses to be more successful.

Manufacturing Day helps open the industry up to younger generations

The manufacturing world is at an interesting cross road. Technology is improving how companies operate, but it also has some thinking that a career in this field is a dead end. However, the industry is trying to change that opinion.

A recent article from the January 2014 issue of Metalforming Magazine profiled Manufacturing Day. The second annual nationwide event took place on October 4. The goal is to open the doors and spread the word of what manufacturing is all about and promote a career in this field to students and others. It is a great opportunity to bring in the younger generation and inform them that the industry isn't going anywhere.

Created by the Precision Metalforming Association (PMA), on the day members design plant tours and informational sessions to address misperceptions about manufacturing. The article features an interview with PMA President Bill Gaskin.

"Manufacturing Day is important for PMA member companies because it allows them to raise awareness in their communities about 21st century manufacturing," Gaskin said. "Our members showed off their modern facilities that utilize computers, robots and automation. We know that counteracting outdated misperceptions with the reality of today's high tech manufacturing is the best way to address challenges like the skills gap that threaten the American manufacturing sector's growth."

While automation is playing a larger role in manufacturing, there are still important roles that need to be filled by individuals who understand not only the industry but also how to manage manufacturing ERP software that is becoming a more crucial piece of overall operations.

Washing machine company bringing operations into US

Whirlpool, a well-known American provider of washing machine units, is joining in the trend of bringing manufacturing operations back to the United States, in a classic example of the process that many have called "onshoring."

In this case, the benefits seem to be pretty obvious for Ohio, the state where the company will be adding as many as 100 jobs, according to the Wall Street Journal. But without the kind of planning and manufacturing business software that can help you really figure out the best use of your time, this might seem like a hollow effort, and could lead to some rather disastrous consequences for your brand overall if you aren't sure about this process.

While Whirlpool is not completely shutting down its plant in Mexico that it's drawing these jobs from, it does seem to be relocating workers with a firm purpose of strengthening domestic production, even though it is more expensive to do so.

Brian Belski, who works for BMO Capital Markets, was recently interviewed by Bloomberg on the importance of domestic production to America's future in business.

"We believe you're going to see more onshoring in America," he said, speaking for himself and his co-interviewee, money management CEO Bill Harris. "It's going to be all about productivity here and capacity coming back to America, which is a big theme with the Capex (capital expenditures) recovery of the next ten years."

This might sound like rose-tinted daydreaming until your business starts considering redistributing as well. You don't have to completely shut down one sector to revitalize another if you have the right business management software to help coordinate this.

How do new business moves play into your manufacturing strategy?

Companies are obviously bought or absorbed into larger companies for all sorts of reasons, but there are some deals that carry with them an immediate benefit, whether or not this is the overriding one. As always, your ERP manufacturing software can help you put these changes into perspective, especially when the change is poised to bring with it a brand new side to your business.

One incredibly high-profile deal that is inescapable in the news right now is the recent move Google made to buy Boston Dynamics, a well-known robotics firm, for an undisclosed sum. While speculation is running wild about the various uses, good or "evil," that any Googlebots might have, another concern is what this does to a business that now needs to manufacture more complex products without losing any of its previous productivity.

It all depends, of course, on how the company decides to use these newfound abilities, and whether they do so to their complete advantage. The more they decide to capitalize on robots, the more services they could perhaps open up.

Forbes writer Robert Hof mentioned that there's a sense of freedom in whatever Google decides to do next.

"Whether robots or self-driving cars or wearable computers become significant businesses for Google is less important than the fact that today, it's willing to spend the big bucks to push forward in these seemingly unrelated areas," Hof writes. "One of them may well turn out to evolve into something that helps Google's current business or redefines it in a coherent, profitable way. But we can't know yet."

Even though we can't, this can serve as a model for how manufacturing inventory management software can help update a business' image of what it has at its disposal.

Federal reserve: Manufacturing activity up

So much depends on context when it comes to figures. 1.1 percent might not sound like a very big number on its own, but in the context of other major developments within certain sectors of business it could mean a major milestone. According to a release from the Board of Governors of the Federal Reserve System, domestic industrial production went up by exactly that much last month.

And compared to the measly 0.1 percent that it rose in October, this represents a significant development for this figure. More details from the release indicate an even higher level of improvement for specific "market groups", like "materials," which was at a level of nearly 4 percent higher than it was in 2012.

On the whole, manufacturing has also made out well, having risen steadily by nearly three percent since last November. Manufacturing has also done well when it comes to "capacity utilization," growing by more than 1.5 percent in total.

Although the overall effects of these kinds of reports may not always be easy to spot, your company can take on software for manufacturing that might help you translate these into locally relevant terms, or at least cull data like this from your own processes. The Wall Street Journal went into a little more detail on the different aspects of manufacturing that grew.

"Textiles, oil and coal, wood products; nonmetallic minerals like stone, clay and glass fabricated metals electrical equipment appliances; and furniture also posted gains," Jeffery Sparshott writes in this source. 

You need to create an atmosphere in which these kinds of upticks are capitalized on and responded to in the right way. Software business solutions can help you keep up-to-date, especially if we see this jump in productivity continue.

Learn to use your supply chain correctly

Different types of companies seem to be at different levels of professionalism when it comes to managing supply chains correctly. According to a report derived from multiple sources and featured in a recent Forbes article, many industries, including consumer package goods and medical device manufacturers, have seen a sluggish pace of growth since the dawn of the new millennium.

This comes up in an article in which writer Lora Cecere describes the problems that businesses have to deal with in their use of supply chains, as well as the use of inventory management software to make these processes stick. Even though she alleges that "more than 80 percent" of companies are using these networks, she also claims that a lot of these networks are not being used to their full potential.

"One of the reasons that corporate performance is failing is that the supply chain has become a function," she writes. "In a functional organization, the definition of a supply chain as yet another function becomes a problem, not a part of the solution."

This means that companies need to start matching the different "links" in this chain so that they sync up to each other and give companies the chance to work alongside skilled consultants to do so.

Using your supply chain in the best way possible might mean reconsidering it altogether, and the fresh look that an outside provider could help you jar your thinking and look at the cold, hard information that can come out of your business.

Incorporating customer service into middle-scale manufacturing

Alternatives to traditional business models can still find a use for the accredited manufacturing business software that follows industry standards, and perhaps create their own approach to setting American business back on the right path.

So says Bruce Upbin in a recent piece on the role of something he calls "artisanal manufacturing." In his words, this is an approach to production that would allow companies to focus on the things that make their product great.

In the midst of this piece, Upbin notes the role that modern technology can play in the development of a form of manufacturing that makes a difference both on a national level and for individual customers. This could include the planning software that allows for companies of a medium size to get the most out of what they have to offer.

"Technology has enabled American companies to move jobs offshore, drive labor costs to precariously low levels, and provide US customers with an endless supply of disposable goods," Upbin writes. "But it can also enable local sourcing, rapid changes in supply, efficient distribution, direct marketing, smaller inventories, reduced working capital, and improved customer relations and services."

The future of education on these instances may include the effects that they have in different levels of the business. A press release from local Indiana school Ivy Tech Community College now has a new course offering to grant interested parties a chance to focus more on the skills that might help them see the opportunities available in areas that might go unnoticed without the specificity this knowledge can bring.

Invest in software to stay ahead of the game when it comes to these moments.