Prepare for more change
What was normal two years ago will almost certainly not be
normal during the second half of 2010, or even during the first months of 2011.
What was normal then, in fact, might never be normal again. However much it
might be a cliché, change really is the new normal in manufacturing.
Among those changes are the new gaps in the supply chains of
some larger original equipment manufacturers, the result of smaller companies
closing, which might cause delays and problems in receiving supplies in a
timely manner. A number of industry experts say the availability of credit will
also likely change, what with banks starting to somewhat relax their
requirements. But the biggest change might be the addition of manufacturing
jobs.
“Manufacturing is now the only business sector that has been
adding jobs for five months,” says Emily Stover DeRocco, president, The
Manufacturing Institute. “Manufacturers have added 126,000 new jobs.
“But the focus is going to continue to be more on what we
call mass customization, as opposed to mass commoditization. This reflects,
again, the industry’s response to globalization, which is that U.S.
manufacturers, in order to maintain their global leadership, have had to move
to a higher quality and a higher value product.”
And that higher quality product will almost certainly lead to
more changes in the way manufacturers and so many other companies plan and do
business, the ripple effect across industries.
For example, if you have not already reassessed your vision
and your plan for your company, that should move to the top of your priority
list.
“I think manufacturers need to continue to innovate their
products,” Johnson says. “Some manufacturers haven’t explored all the
after-sell services — are you doing warranty work? Are you outsourcing it? Are
you doing installation or maintenance work? And you can position yourself
better in the marketplace if you have those services to offer.
“From a financial standpoint, it also improves your annuity
base of revenues. If the manufacturer historically outsourced that or let
others do it, those are areas that can help improve both their relationships
with their customers and their bottom line.”
