The Manufacturing Decline

Control Engineering asks the provocative question: is manufacturing in decline in the USA?

Boston, MA – The keynote address at Aberdeen’s first annual Manufacturing in the 21st Century Executive Summit served as a stronger wake-up call for attendees than the free coffee. During this session, best-selling author Michael Treacy highlighted the dramatic evolution of workplaces during the past several decades and asked the provocative question “does manufacturing even matter anymore?”

Well does it? The magazine has some answers.

Subsequent presenters, however, demonstrated that manufacturing in North America is not only relevant, but thriving.

Innovation is indeed the engine which keeps our factories running, and the transformation of raw production data into actionable business information is central to improving the performance, productivity and ultimately the productivity of any industrial endeavor. Case in point: the transformation highlighted by Juan Carlos Sol, special projects manager of Sigma/Q.

Sigma/Q, a leading provider of custom packaging products in North and Central America, recognized a need to improve the performance and return of multi-million dollar equipment within their plants while simultaneously decreasing operational costs. To accomplish this, however, the organization needed to transition to an automated data collection process without creating significant downtime. Once in place, the data could then be used effectively to drive continuous improvement and facilitate better decision making in real-time.

As per usual the answer is to work smarter and harder. Control Engineering agrees.

However, as the name implies, continuous improvement is a journey, not a destination. Even the most robust data is of little value unless that data is used to consistently measure the performance of the business. This point was reinforced by continuous improvement experts and co-presenters Richard Kunst, VP of continuous improvement for La-Z-Boy and Mariela Castano-Kunst, continuous improvement manager for Nestle Waters Canada.

“A few years ago, a case of our water would sell for around $12 - $15,” said Castano-Kunst. “This week, one of our customers will be selling two cases for $5. Change happens rapidly and the business must be equipped to react.”

To maintain profitability and competitive advantage, manufacturers need to continually challenge themselves to seek new ways to work smarter, better, and more cost-effectively. Processes must be both repeatable and sustainable to deliver the desired results. Methodologies, such as lean, six-sigma, 5S, and others truly can create a positive effect. However, even with data-centric programs such as these, the most critical success factor is properly engaging the workforce and getting them to embrace the changes such programs enforce as part of their day-to-day activities.

Kunst described how success at La-Z-Boy begins and ends with trusting and empowering employees, providing the audience with insights on team dynamics and how to best mobilize a workforce to improve the chance of successful results.

“Every workforce or team, regardless of industry, tends to share a similar composition,” said Kunst. “Twenty percent of your workers will be positive leaders, 20% will be negative leaders and the remaining 60% will be neutral and can shift from one camp to another. It’s critical that you focus your attentions on the positive leaders and leverage their enthusiasm to sway the 60%.”

So the real question is as always: do American's still have the competitive spirit that G. S. Patton described so well.

When you, here, everyone of you, were kids, you all admired the champion marble player, the fastest runner, the toughest boxer, the big league ball players, and the All-American football players. Americans love a winner. Americans will not tolerate a loser. Americans despise cowards. Americans play to win all of the time. I wouldn't give a hoot in hell for a man who lost and laughed. That's why Americans have never lost nor will ever lose a war; for the very idea of losing is hateful to an American."

Interestingly enough manufacturing represents about the same percentage of the economy as it has for the last 50 years. So output is actually increasing to match the growth of the economy. So why all the talk of decline? In a word. Jobs. We are making more stuff than ever with fewer people. Just as the mechanical revolution eliminated farming as a mass employer, automation is in the process of eliminating manufacturing as a mass employer. So the question is - what next?

As usual there is no obvious answer. It is up to you to determine where the economy will go. Your best bet? Join the enthusiastic 20%. Figure out how you can be of service and just do it.