Manitowoc Leads the “Revival”

Dal blog di Evolving Excellence l’articolo sul “presunto” declino dei manufatturieri americani…

The media, unfortunately driving popular perception, continues to insist that North American manufacturing is dying.

Sure, U.S. banking is in trouble, but the longer-term and possibly more damaging threat to the nation’s prosperity is the decline of the manufacturing sector. Late last year, the number of U.S. manufacturing jobs dropped below 14 million for the first time since 1950.

We continue to try to correct this perception with the facts.

America’s manufacturing output, as measured by the Federal Reserve, is up seven-fold since 1950, but manufacturing jobs as a share of all jobs have fallen to 10% from 30%.  The problem, if it really is one, is not foreign competition or evil financiers. It is technology and productivity. In the 10 years ending in 2007, durable goods manufacturing productivity averaged an annual growth rate of 4.8%.

And even our friend Jim Womack has tried to use his considerable stature to change the presumption of manufacturing decline.

Manufacturing output has increased 11 percent in the last year. U.S. exports of manufactured goods are also up over 12 percent. Moreover, U.S. manufacturers consider the United States the most desirable country for expansion of their businesses over the next three years, according to a recent survey of 321 North American manufacturing executives released in mid-June by the National Association of Manufacturers, The Manufacturing Institute, the Canadian Manufacturers and Exporters and Deloitte Touche Tohmatsu. And 57 percent of U.S. manufacturers predicted they will become more globally competitive over the next five years.

But sometimes it takes a real story to really bring it home.

A rugged cadre of producers like these in Manitowoc have survived a decades-long shakeout of American manufacturing — and are now leading a largely overlooked revival.  Many towns that have retained their factories — and are adding manufacturing jobs in the face of a wider downturn — share certain traits. They have a deep history of manufacturing and a pool of skilled laborers and entrepreneurs who still live there.

Another reason is that they understand the power of knowledge and speed.

Orion is the brainchild of an inveterate tinkerer, Neal Verfuerth, who was raised in a small town an hour south of Manitowoc. While looking for something to do during the long winters, when tuck-pointing halts, he started selling solar panels and developed an interest in alternative energy. He started Orion in 1996, initially distributing lights for other manufacturers, and by 2000, producing high-efficiency fixtures.

Mr. Verfuerth is convinced manufacturing needs to return to its vertical roots: A company should make most of its component parts itself. Outsourcing, he says, has diminished quality and service. Moreover, in the middle of the night, when he has an idea, he wants to be able to come to his factory and try to build it.

Sort of like our friend Dov Charney’s short elevator trip.  Although I’m fairly sure Mr. Verfuerth doesn’t share Dov’s other “attributes.”

Manufacturing is succeeding in North America.  Sometimes you just have to look past the bluster to find the facts.

Autore

Ciao, sono Dragan Bosnjak e sono qui per guidarti nella scoperta del mondo di lean thinking!

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