Blog posts on manufacturingPosts selected fromManagement Blog - Engineering Blog - Investing Blog and other blogs - Bitbeam: Open Source Hardware Prototyping Platform
 Bitbeam is an open source construction toy/hardware prototyping platform.
The Bitbeam project aims to define a set of parts which the users themselves can produce using increasingly available technologies for local fabrication like 3D printers, laser cutters and CNC mills. continue reading: Bitbeam: Open Source Hardware Prototyping Platform - Manufacturing and the Economy (2005)
The conventional wisdom was that the rest of the world would not be able to compete with the United States for high wage, high value jobs. It turns out the rest of the world is much more able to compete for that work than was expected.
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I think we often talk as though manufacturing in the United States is not feasible. Yes, things are changing, and have been for several decades. But the United States is still the largest manufacturer in the world.
It is true (in my belief – and based on the statistics above and in the graphs) that the United States has been decreasing manufacturing employment. And it is also true other countries – notably: China, Korea and Mexico are increasing manufacturing output. However, I believe the there has been no increase (in fact I believe their has been a decrease) in manufacturing jobs worldwide.
[in future posts I was able to find data that showed in fact China, while manufacturing output was booming, actually lost more manufacturing jobs than the USA did: Manufacturing Employment Data: USA, Japan, Germany, UK… 1990-2009, Manufacturing Job Losses: USA 2 million, China 15 million from 1995-2002, Global Manufacturing Employment Data – 1979 to 2007, Manufacturing Jobs Data: USA and China, ] continue reading: Manufacturing and the Economy (2005) - Poor Management Harms USA Manufactures (2005)
The global competition in manufacturing is intense. But America is still the largest manufacturer in the world and managers should not be allowed escape responsibility for their failure to manage effectively with claims that manufacturing in the USA cannot compete. The biggest change needed is an improvement in management. Other things would also help greatly, such as improving the health care system. continue reading: Poor Management Harms USA Manufactures (2005) - Global Manufacturing Data by Country from 2001 to 2004
This data shows the United States manufacturing economy is continuing to grow and is solidly the largest manufacturing economy: which contradicts what many believe. It is true manufacturing jobs are decreasing in the United States and worldwide – China is losing far more manufacturing jobs than the USA. continue reading: Global Manufacturing Data by Country from 2001 to 2004 - Innovation at Toyota in Developing the Prius
By the end of 1993 the development team had determined that higher oil prices and a growing middle class around the world would require the new car to be both roomy and fuel-efficient. Other than that, they were given no guidance. “I was trying to come up with the future direction of the company,” says Watanabe, who headed corporate planning at the time. “I didn’t have a very specific idea about the vehicle.”
Investing in innovation is risky. If successful, the benefits can build a competitive advantage that is difficult for others to eliminate. However, others will try and if you fail to execute as well in the future those benefits can disappear quickly. Toyota shows few signs of letting others catch up though.
continue reading: Innovation at Toyota in Developing the Prius - Is Made in the USA Back In Vogue? (2006)
This example provides more evidence of the benefits of "lean manufacturing," though it seems they are getting only a few benefits (reduction of waste, faster resupply of "hot items") and they may well not know about <a href="http://curiouscat.com/management/leanthinking.cfm">lean thinking</a>. By studying and applying lean ideas they should be able to reduce the 45 day turn-around time. Perhaps they should read the Fashion Incubator blog... continue reading: Is Made in the USA Back In Vogue? (2006) - Manufacturing Jobs Data: USA and China
10-20% of manufacturing jobs disappeared worldwide from 1995 to 2002. China lost between 17% and 34% of theirmanufacturing jobs and the USA lost 11.4% of theirs. continue reading: Manufacturing Jobs Data: USA and China - China’s Manufacturing Economy
The constant mention of the eroding manufacturing sector on the USA I believe leads many to think it is shrinking and small. Yet output continues to increase and the share of worldwide manufacturing output is holding steady. China is gaining substantial ground but the Chinese increase has largely come from Japan and Europe. To me this understanding is important because of my felling about the misperceptions of many. continue reading: China’s Manufacturing Economy - Toyota in the US Economy
 From Toyota’s web site: Toyota Manufacturing in the USA: by 2008, Toyota will have the annual capacity to build 1.81 million cars and trucks, 1.44 million engines, and 600,000 automatic transmissions in North America.
The company’s direct employment in North America is more than 38,000 and direct investment is nearly $16.8 billion with annual purchasing of parts, materials, goods and services from North American suppliers totaling an additional $26 billion.
[In 2016 Toyota manufactured 2,450,000 vehicles in the USA, Toyota promotes a fake number for employees counting many non-employees, employees of suppliers etc., so you can't view the accurate data on their site in 2017 - in 2006 they did post an honest number]. continue reading: Toyota in the US Economy - Is Innovation Needed to Keep Manufacturing in the USA?
There is no ace in the hole. If countries want to keep manufacturing jobs they are going to have to do lots of things right. No country has such an advantage they can expect to rely on their country being more innovative (or offering cheaper labor, or their citizens working harder or…) than all the other countries in the world.
Innovation has been an advatage for the USA. It should continue to be an advantage for the USA but many other countries will innovate very well (Japan, Germany, China, Korea, Singapore, England…). The USA has many assets: transportation infrastructure, banking, rule of law, educated and skilled workforce, huge market, decent tax laws, engineering education… The key will be to keep focusing on the whole system (and fix things like huge budget deficient, huge current account deficit, excessive health care costs, excessive executive pay…).
I also believe a key competitive advantage will be in applying management improvement concepts such as lean manufacturing. continue reading: Is Innovation Needed to Keep Manufacturing in the USA? - American Manufacturing Successes
- New Look American Manufacturing
Many factors determine whether the USA will continue to lead the world in manufacturing. The USA has to continue to support a dynamic economic system, maintain a transportation system, improve the health care system, improve the educational system, maintain the rule of law, reduce excessive legal costs, improve the management of manufacturers etc.. Each country has to work on these and other systems to stay competitive globally.
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Excessive regulation compared to what countries – China, India, Germany, Japan? If you are talking about environmental regulation, the USA has more than China less than Germany or Japan. If you are talking about permits to get things done I think the National Association of Manufacturers (NAM) needs to go try to do business in Japan, China, India, Thailand, Mexico… and see how easy it is to navigate the undocumented processes.
And does NAM think the USA is good at nothing? Don’t manufacturers here benefit from being the USA? What cost advantages does that give them? I think being a manufacturer in the USA offers huge advantages as well as some challenges. The prospects are good. continue reading: New Look American Manufacturing - Manufacturing Value Added Economic Data
From 1990 to 2001 China's manufacturing is up 250% (it would be even more if 2002 data were available). The United States (as of 2002) is by far the largest manufacturing economy and USA manufacturing continues to grow faster than global manufacturing. continue reading: Manufacturing Value Added Economic Data - How Toyota Management Develops a New Camry
- Manufacturing Jobs
Focusing on manufacturing output and jobs and their importance to the economy makes sense. However, I think people need to update the model they use to set expectations of manufacturing job levels. And given a world in which no countries seem able to do gain manufacturing jobs, it seems more reasonable to expect a continuation of decreased jobs and increased output until that worldwide trend changes. continue reading: Manufacturing Jobs
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