Manufacturing may be moving overseas, but ERP systems create new needs on domestic shores

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Although changes in the global market have increased optimism in the United States, the sentiment shared across the country remains strong: domestic manufacturing is dying. You've probably heard the phrase "We used to build things in this country!" before and there's at least some evidence to support that emotional assessment. However, it isn't necessarily correct. A more accurate statement would be that domestic manufacturing is changing.

Organizations across the country are adjusting their strategies and operations, and they are using technology to make it happen. By implementing manufacturing software solutions such as an ERP system, businesses will likely encounter new opportunities that they didn't have before without the technology. Some could be challenges that would require increased manpower to manage. 

Eric Kimberling, an ERP consultant, recently wrote an article titled "Can ERP Software Help Save American Manufacturing Jobs?" where he addressed the fact that new technology in manufacturing facilities should develop new needs and create employment opportunities to help companies get the most out of their systems.

"There is a general sense that manufacturing jobs are being moved overseas to China, India, and other developing markets, yet from what we can tell, U.S. companies and other developed multi-nationals are still looking for ways to leverage ERP systems," Kimberling wrote. 

One of the ways ERP usage can change manufacturing is by allowing companies to offer a more on-demand service, rather than conducting business in the traditional sense. ERP software can significantly impact the way organizations interact with customers, so adjusting operations to accommodate this is an opportunity for domestic businesses to stay economically viable as they bring on new employees. 

However, managing all of this could be a hassle. Some organizations would be well off working with a manufacturing technology consultant that can help companies ensure their solutions are properly installed and are being used to the best of their ability. These professionals will work with companies to provide them with the tools and knowledge needed to get the most out of their manufacturing applications or ERP system as a whole.

The benefits of manufacturing software virtualization

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A number of factors are weighing heavily on the manufacturing industry, and those that don't adjust their operations to accommodate industry changes will likely suffer moving forward.

Today, profit margins are razor thin in the manufacturing sector. As a result, any shortcoming in the way of budgeting or efficiency could cause businesses to suffer a deficit, which drastically impairs their overall viability. Additionally, real estate is at a premium in many factories, meaning that companies cannot afford to fill their facilities with clunky machines that do little but take up space. 

Fortunately, technology is evolving and it's become easier to reduce the redundancy on the manufacturing floor. As this blog recently mentioned, one way organizations in the industry are using technology to their advantage is by virtualizing manufacturing software solutions. 

Frank Hill, who recently spoke with Manufacturing Business Technology about the benefits of virtualization, suggested in a guest post on the site that companies are implementing more manufacturing applications than ever before. Because most do not have the resources to store all of them in a physical machine, finding a virtual solution is essential. 

Hill wrote about the virtualization process and gave tips to companies looking to virtualize their manufacturing applications. He stressed the importance of finding the right solution.

"When it comes to virtualizing manufacturing applications, there are a number of approaches you can take," Hill wrote, describing a number of popular options, only to list their shortfalls. "An alternative approach is to consolidate your virtual machines running on a fault-tolerant server with redundant hardware."

Virtualizing manufacturing software has a number of additional benefits in terms of operational efficiency, but the wrong system could have an adverse effect on overall company goals. Working with a business software solutions provider will help companies obtain the solutions required for their manufacturing needs that will promote both effective workflow and efficient operations. 

New York manufacturer moves west to Indiana

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To most of the country, New York – specifically the New York City area – is viewed as a beacon for business. Organizations of virtually every industry view New York as an ideal place to set up shop and manage their operations. However, Indiana still maintains a strong position in the domestic manufacturing market, and some organizations are migrating from the Big Apple to America's heartland.

One in particular is Drew Industries Incorporated, a manufacturer of recreational vehicle and manufactured home components. The company is moving from White Plains – located just north of New York City – out west to Elkhart, Indiana. This decision was made in an effort to expand the business, capitalize on Indiana's resources and add a number of new jobs. In fact, by 2017, the company anticipates hiring 800 people.

In order for this move to be successful, Drew Industries must ensure all aspects of the initiative are carried out with the utmost care and efficiency. Investing in new manufacturing software solutions will likely be required in order to accommodate the new personnel.  

However, despite the challenges, executives at Drew Industries, as well as Indiana state officials, are optimistic about the future.

"Our focus on job creation is paying off as Indiana's economic momentum continues," Governor Mike Pence said in a press release. "Drew Industries' announcement builds on our strength as the RV capital of the world and serves as the latest proof that our convenient location, competitive tax environment and talented workforce have put Indiana on the map as a state that works for business."

Whether a manufacturer is moving from another part of the country or launching its operation in Indiana, having the right software solutions in place is a must. Working with an Indiana software manufacturing solutions provider will allow organizations to obtain the best solutions for their needs. 

Enhance manufacturing software solutions with virtualized servers

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The overhead costs in the manufacturing industry can be difficult for any organization to overcome. At large factories, the facility costs can be overwhelming and, if operations are not tightly managed, can hinder profit growth and damage the long-term viability of a manufacturer. That's why companies must find ways to alleviate this burden, by reducing their IT infrastructures.

While manufacturers must process endless lines of data every day, most lack the resources to properly store it on physical machines. Server maintenance can be a major expense, and one that most businesses cannot afford. So, when implementing a manufacturing solutions such as ERP, it's crucial to think about how it is stored. One way to do that is through server virtualization.

Virtualized servers allow organizations to run multiple servers and operating systems on one physical machine. This will reduce maintenance spending and allow companies the flexibility to operate freely without allocating a significant amount of physical space to IT infrastructure.

The online publication Manufacturing Business Technology recently spoke with Frank Hill, a manufacturing business development director, about the benefits of virtualization in the industry.

"What virtualization allows companies to do is leverage the processing horsepower capabilities of today's modern servers to run multiple applications without any conflict," Hill said. "When I say applications, I'm referring to virtual machines (VM). A VM is basically an operating system and an application (or a couple of applications) that are isolated so a company can run them on VMware or a single server. Each server can run multiple applications." 

This allows companies to optimize the value of their ERP or manufacturing software investments because they can run efficiently on virtual machines. Of course, manufacturers will want to work with a business solutions provider to ensure they are obtaining the right solutions for their needs. 

ERP systems help manufacturers go ‘lean and green’ 

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Going green is one of the most common recent initiatives in business – one that is shared by a number of organizations, regardless of their respective industry. One of the major problems companies face as they try to improve their energy efficiency efforts is the cost. Many manufacturers, for example, have to make a myriad of changes in order to successfully reduce their carbon footprint. 

Traditional manufacturing evokes images of big factories with hazardous waste billowing out of smoke stacks. To turn manufacturing green, it takes a concentrated effort from everyone at the company and could possibly require investments into solutions such as ERP software. As an article in the online publication Technorati points out, many of these changes are necessary. 

Travis Wright, the author of the article, suggests that building operational efficiency will go a long way toward improving the way an organization uses its energy.

"As more subcontract manufacturers face increasing federal regulations, rising consumer demand for green products and the need to protect their margins, more organizations are looking to transform their operations and gain new efficiencies," Wright writes. "At their heart both lean and green hold a common objective: eliminating waste. In the case of lean, it's relentlessly driving all forms of waste from operations. In the case of green, it's reducing the amount of waste generated by the production and operation processes."

By implementing manufacturing software solutions or an ERP system, companies can build new layers of efficiency that reduce  the number of operations that would have traditionally required a tremendous amount of energy. Microsoft Dynamics NAV systems can streamline processes to a point where energy is reduced on the part of both the user and machine. By finding a solution built for the manufacturer's needs, organizations can ensure they are well equipped to improve their specific operational duties and reduce overall energy usage.

ERP software helps manufacturers track important materials

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Manufacturers have a bevy of factors to consider as they build efficiency into daily operations. Increasing the speed at which items are built is obviously important, but simply telling employees to work faster isn't going to get the job done. However, there are a number of steps companies can take to ensure processes are streamlined and productivity as a whole is improved. 

For example, those tasked with building products must know where their materials are at all times. They have to be aware of key information, such as material inventory levels. If certain materials are low and it limits one component of the assembly line, the entire operation could be compromised.

An article in the online publication Automation World addresses this and stresses the importance of always knowing the status of all materials. Contributing editor James Koelsch says that to improve material tracking, organizations should invest in stronger technology.

"Knowing day and night where your materials are and what they are doing is part and parcel of profitable manufacturing these days," Koelsch writes. "So, world-class manufacturers like Dow Kokam of Midland, Michigan, have been continuing to invest in the latest technologies for tracking their inventories throughout their supply chains."

Investing in an ERP solution like Microsoft Dynamics NAV can go a long way towards improving materials management, tracking and supply chain efficiency. By giving users access to real-time information generated within the ERP system, they will know the current status of their materials and can quickly adjust to any changes, such as shortages, in a way that will mitigate the risk of a production slowdown.

Working with a Microsoft business solutions provider can allow companies to obtain the right solution for their needs. These professionals offer assistance with every step of the process, from evaluation to implementation to maintenance, and will help manufacturers ensure they receive the highest possible return on investment.

Crawford Industries expanding facilities, creating new jobs

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Typically, the hiring of new employees and the expansion of facilities are positives for an organization. However, while these moves may be indicative of a favorable situation, they come with their own set of challenges that, if not managed properly, could result in disastrous consequences.

Crawford Industries, LLC, a plastics manufacturing and packaging company, is growing. Last week, the Indiana-based company announced that it will be adding 11 new positions and investing $5.2 million into expanding its 100,000-square-foot facility by another 45,000 square feet. This project will likely result in new business needs and the organizations must adjust itself in order to accommodate these changes. To meet this demand, the company may have to invest in new manufacturing software solutions.

For now, however, optimism is high. Eric Doden, president of the Indiana Economic Development Corporation, said in a press release that Crawford's expansion must be successful, as their situation is vital to the future viability of Indiana's manufacturing industry.

"Indiana's robust manufacturing sector is one of the key drivers of our economy. Crawford Industries is a long-time Indiana citizen and we will work hard to create a low-cost, competitive environment where it can continue to grow and create new jobs for Hoosiers," Doden said.

Should Crawford fail to maximize the potential of its expansion, the ramifications could result in a number of incidents including financial losses. However, with the right software solutions in place, this expansion should take Crawford to a new level of success.

Working with an Indiana software manufacturing solutions provider will help Crawford obtain the solutions it needs. Other companies in the area preparing to embark on a similar venture would be wise to partner with a provider of Microsoft Dynamics NAV solutions. A Microsoft business solutions partner can offer organizations the tools they need to successfully complete any expansion project.