With the US economy working it's way through inevitable recovery, we hear stories every day about the overall health of the Manufacturing sector. We constantly hear of high tech manufacturers challenged to handle compressed product lifecycle, global visibility and constantly changing regulatory compliance. Here's one we don't hear enough: The US leads the world in manufacturing output.
If the US manufacturing sector were a separate country, it would rank today as the sixth-largest economy in the world. While no one likes the growth trends of US manufacturing as compared to China, America is a manufacturing powerhouse. Still, manufacturing in certain industries does present some unique challenges for the US. USA Manufacturers must operate as efficiently as possible to main profitability and thrive in this recovery.
ERP Manufacturing software, such as xTuple, help manufacturers manage product lifecycles, global visibility and regulatory compliance. When manufacturing companies are looking for new ERP software they should have the following:
- Web-based supplier Portal. It is critical that high tech and electronics manufacturers communicate in real time though a Web-based supplier portal. Manufacturers and suppliers can share data and have real-time communication.
- Integration of Lean Tools. It is important to have an ERP software to help facilitate lean management. Automate scheduling, inventory, floor communication, and production tracking.
- Product Traceability. Business management software, like xTuple, must easily track product serialization, providing product data from start to finish. If products get recalled, you need to have access to all serial numbers.
- Business Intelligence. Your ERP software needs to also provide management with key business intelligence. Capturing real-time data allows management to make real-time business decisions.
Two reporters from the New York Times put together an interesting article which reports on the state of Electronics Manufacturing, globally. They use Apple as the case study, but really dig into the issues surrounding Electronics Manufacturing Supply Chain. This was one of the topics of discussion at a White House dinner which Steve Jobs attended, not long before he took his turn for the worse. The President asked Jobs how to get more Electronics manufacturing jobs here in the US. Apparently Jobs told the President unambiguously, “Those jobs aren’t coming back.”
The authors point to some of the issues with manufacturing in America, highlighting first and foremost the challenges in the labor supply. They cite as problematic the US education infrastructure not allowing enough students to emerge from different levels of schooling with the right mix of skills and training. They review as well the facilities and material proximity realities that make working in that geography beneficial to the consumer electronics companies striving to stay ahead in the fast moving market.
Fortunately they do report on areas of the economy that are emerging and may well provide opportunity in the manufacturing sector. The US isn't out of manufacturing all together, by a long shot. So as this recovery hits it's stride, companies of all sizes should be ready from some exciting growth.
See the New York Times article, How the U.S. Lost Out on iPhone Work.
And for words of encouragement on manufacturing in the US, see The Demise of America’s Manufacturing Sector Has Been Greatly Exaggerated.
If you are looking for a new Manufacturing Software that can help you prosper join me on one of our next xTuple webinars.