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Global Competition Requires New Strategies

Not so long ago some were predicting the death knell of U.S. manufacturing. As the recession brought Detroit’s Big Three to their knees, put the brakes on consumer spending, forced massive layoffs and shuttered cash-strapped plants across the country, American manufacturing seemed to be in its death throes. But as they say, what doesn’t kill us makes us strong. Strong competitors assimilated weak ones. Loose financial and operational practices were tightened. Costs and expenses were pared down. From the assembly line to the board room, American manufacturers are running a tighter ship — and it seems to be paying off. Manufacturing declines have been slowing since December. In July new orders resulted in the biggest production jump in more than two years. Customers are beginning to restock and assembly lines are running again. The light at the end of the tunnel is getting brighter; but there is concern that unless U.S. manufacturers make major changes to their business model, the light could still go out. 

A recent national study found U.S. manufacturers distressingly unprepared to compete in an increasingly global economy. Conducted by the American Small Manufacturers Coalition in conjunction with Manufacturing Extension Partnership, the Next Generation Manufacturing Survey polled more than 2,500 U.S. manufacturers. The report identified six essential next generation strategies manufacturers must adopt to compete successfully in global markets:

  • Customer-focused innovation
  • Talent recruitment, development and retention
  • Systemic continuous improvement
  • Supply chain management and collaboration
  • Sustainable product and process development
  • Global engagement

More than 25% of American manufacturers — over 90,000 firms — were considered at risk because of their inability to meet world-class achievement levels in any of the six strategies. Unless U.S. manufacturers are able to adopt next generation strategies, America may not be able to compete in global markets.

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