The Changing Face of Global Manufacturing

Jul 2, 2014 0 Comments in Uncategorized by

As globalization becomes more pervasive than ever, the manufacturing industry is evolving right alongside all the rest. It’s not what it used to be even five or ten years ago. New communication structures, new legal approaches, new environmental initiatives, and new political and economic scenarios are constantly reshaping international industry—and unless we change along with them, we’re apt to be left behind on the competitive front.

But what are the changes we should be paying the most attention to? How are these changes impacting our bottom line?

Let’s look at a few facts:

  • Manufacturing development is shifting from advanced countries to developing countries. For centuries, leaders such as Germany, Japan, UK, and Canada led the way with manufacturing output. However, nowadays, China, India, and Russia are at the forefront of production, achieving higher manufacturing gross value overall while also seeing greater annual percentile growth.
  • Surprisingly, Taiwan leads the way in workforce integration, with 27% of its entire population employed in manufacturing in 2013, the highest by far compared to other countries. At the same time, while Asian markets might offer lower labor costs, European-based companies are able to respond more quickly to public demands, gaining stronger market shares.
  • US manufacturers are becoming increasingly concerned with lowering costs, trying tactics such as offshore labor production and distribution in an often misguided attempt to impact the bottom line. However, many hidden costs—such as a fragile and expensive global supply chain, rising oil costs, sending engineers overseas, and international exchange rates—have shown that a knee-jerk shift to a foreign workforce is hardly a long-term solution to profitability.
  • The increasing complexity of the global market requires manufacturers to adapt more agile strategies, including predictive analytics, preemptive resource allocation, demand-driven forecasting techniques, supply chain optimization, and higher product lifecycle management.

The Marzolf Company has taken much of this into consideration in determining how we continue to build on our current operations. While we certainly enjoy working with international clients, we strive to remain anchored in American labor and job opportunities, avoiding outsourcing pitfalls that might negatively impact our product line. We keep a firm hand on the full development and production line, never letting anyone else be responsible for the flanges and fittings we eventually place in our clients’ hands.

How does your company approach the global manufacturing market? Have you analyzed the full range of costs involved and determined whether it’s actually worth investing in?