On 11/29/07, a report titled "Midwest Manufacturers Fight to Stay Competitive in Global Marketplace" ran on the News Hour with Jim Lehrer. The transcript and audio files (available via this link) make some compelling and balanced points about what manufacturers in one of the hardest-hit sections of the U.S. are doing to not only survive, but also thrive.
There are some hard truths in the piece – like the story of a capital equipment distributor that no longer can easily find U.S.-made equipment to sell as he once did, and now sells machine tools from Taiwan to support his family, instead.
But there are inspirational and strong cases for optimism here. For example:
- The cost gap between U.S. manufacturers and their lower-cost foreign competitors is down to approximately 17 percent, due to economic factors like the falling dollar and China's adjustments to its currency and taxes.
- U.S. manufacturers can tighten (or even eliminate) the gap by reducing materials costs and controlling (improving) worker productivity.
- Becoming a more participative partner in your customer's design process – not just existing as a parts provider – can insulate your company from competitive threats.
- Develop relationships within "Short Supply Chains" – those where proximity between buyer and source are critical, especially if something could go wrong with logistics or quality.
There are specific examples of successes in this piece, and actually some good advice from an unlikely source. Pass the link around your plant or shop and look for ways you can take advantage.
Shout Out: Jason Busch [www.spendmatters.com
It's a golden opportunity right now. If US manufacturers can't take advantage of the weak dollar, continued productivity gains and reduced material costs to take back market share, then we never will. But the window is not going to last forever.