Three sides on solving manufacturing problems
May 8, 2007

1. In this corner: The Alliance for American Manufacturing, the latest group interested in “strengthening manufacturing” is really focusing its early blogs on the whole idea that it’s China’s fault for the state of manufacturing. “Our policymakers must re-examine our trade policies and make sure we’re doing all we can to hold China accountable. The jobs we’re losing aren’t just a natural result of globalization. They’re the result of cheating and sidestepping the rules of fair trade.”

Yep. That’s the real reason people prefer the Camry to the Impala.

2. And in this corner: On the other hand, you’ve got the defending champion of “strengthening manufacturing,” the National Association of Manufacturers, which focuses on lowering the tax and regulatory costs of doing business, which they figure will eventually lead to jobs. Because that always works.

For example, this quote from John Engler on a new bill for R&D tax credits: “The R&D tax credit is about jobs because more than 75% of the credit dollars are used for wages of employees engaged in research and development,” Engler said. 

Yep. More jobs through tax credits. That’s the real solution.

3: Here’s the real solution: It would be nice to live in a world where trade rules were equal and taxes were small. That’s not the world we live in because each manufacturer can’t control those things. Among the things we can control – working with local educators to develop local programs that enhance regional and local programs to promote manufacturing, train workers and develop innovative products. It’s the next great product innovation that will drive manufacturing growth.

To their credit, NAM has a Business Champions program. “The goal of Business Champions is to enable more underserved students and people of all ages and background to prepare for good jobs and help meet the nation’s growing demands for a skilled workforce.”

If business leaders wanted to strengthen manufacturing, they'd stop pointing to China, or to their wallets, roll up their sleeves and get to work.

4. Thoughts at Matrikon: At their two-day event in suburban Chicago, Matrikon CTO Dave Shook gave clients an overview of the company’s refined product offering. The products remained much the same, but Matrikon renamed a good number of their products to better describe what they products did. For example, the module that monitors the control performance is now called the Control Performance Monitor.

Shook also had some very good insights of what’s really going on in manufacturing in a presentation before about 200 manufacturing leaders in the continuous process industry. “Instead of competing against two or three companies, you’re competing against a lot of very smart people all over the world with newer plants who have a lower cost base. Competition is global.

“You’re also competing for the skilled people market,” Shook said. “You have to work harder to get the same work done. Fewer and fewer people are in charge of more and more equipment.”

Matrikon is one of many companies offering a wide array of product solutions driven toward continuous improvement. The goal is to drive “operational excellence” one of the new hot buzz words. And with a purpose. “Mediocrity is easy,” Shook noted at the presentation. “Excellence is tough.”

5. Dice stacking: I don’t know how this works. I don’t know what this guy was thinking when he said to himself, “I wonder what would happen if I did this?” But it’s pretty cool…

Posted by Wolseley on May 8, 2007 | Comments (2)