For decades now, one of the most important buzz words in American manufacturing has been globalization. Because the dawn of widescreen globalization brought about many drastic changes in the last half of the 20th century, many American manufacturers feel uneasy about the future–and inflated stories about the downfall of American manufacturing have done little to help this situation. The truth, however, is more complex. Manufacturing has certainly changed–and will continue to change: but companies who adapt to the challenges, address the pain points, and take advantage of the opportunities stand poised for long-term success.
Opportunity: new global markets. The chief concern that many manufacturing companies have about globalization is the increased competition that they will face in the global market. What is overlooked, however, is the fact that new manufacturing jobs and economic growth in foreign countries has created millions of new middle class consumers and a drastically larger global demand for many products.
Pain Point: increased pricing competition. Of course, the increased competition does remain: manufacturers must strive in order to be more efficient and to create new and innovative products in order to remain competitive.
Opportunity: rising productivity and efficiency. A rise in the number of global manufacturing companies has given rise to thousands of new innovators who have helped make the industry more efficient and profitable thanks to new production methods, new technology, and new software.
Pain Point: inventory management and scalability. At the same time, it is important to consider that many manufacturers must change both their production methods and their production scale. Some manufacturers adapt to serving broader global markets, whereas others hone in on a particular niche here at home or abroad. EIther way, the result often demands careful management of changing production counts, inventory sizes, and general scalability.
Opportunity: embracing new potential. For manufacturers who grow and embrace the new potential that change brings, the sky is the limit. Smart software is an important way for manufacturers to become more flexible and efficient. To learn more, try a free demo from SMe Software.