Manufacturing: A failed diagnosis

For years, we have been confronting the consequences of a failed diagnosis: that manufacturing is "dying".

Manufacturing is not dying, it is changing. Smart manufacturing companies are moving to high productivity business models based on networks -- with customers, research organizatioons, training partners, strategic partners, customers, teams of employees. 

Manufacturing based on stand-alone organizations producing stable runs of commodity products -- the old model of manufacturing -- are dying. This is not new. These facilities have been vulnerable for over twenty years. 

Old line manufacturing operations will continue to wither, because they cannot learn and adapt fast enough. 

You can figure out which manufacturing facilities are in trouble in your region by asking about their business model: Who does the company partner with? How many new products have they introduced in the last three years? Does the plant manager know the employees on a first name basis or is work organized around more rigid job classifications and hierarchical reporting? These are all predictors of whether the company is flexible and adaptive.

Another good predictor: If the value added per employee is below $100,000, chances are the company will face difficulty in the years ahead. 

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