The Sophistication of the Manufacturing Technology Consumer

Now that we are well into 2013 and 2012 is behind us it is always useful to look at what has changed(evolved) over time and what is still the same.

As a technology provider to engineering and manufacturing organizations, we have seen a number of changes, to say the least, in our 20-plus years of operations. I like bullet points because I have a really short attention span so I will use those.

First, what has not changed in terms of what our clients expect: 

• High level of rapid response to support issues


• An expectation that we are providing only the best solutions -That the solutions
  actually work

So nothing very surprising in those elements. Now lets take a look at a top-level view of some things that have evolved. 

• Instead of throwing additional personnel at problems, companies are increasingly looking at maximizing their output via better processes or technologies


• Clients are now competing globally in more and more situations -Differentiation is even more key than before. The ability to differentiate via technology solutions is very broad. From offering interactive 3d content for assembly manuals to proof of concept 3d models can be huge.


• Instead of in-house resources, companies are using external,flexible partner personnel to complement their own teams


• The availability of powerful yet mainstream tools allows every aspect of product
  development to be streamlined for a wider range or organizations

Because of these trends, as a partner it is no longer acceptable to have generalists to support all technologies. A number of years ago, we decided to invest heavily in specialized resources and continue to do so. The manufacturing consumer will only continue to raise their expectations and level of sophistication as times goes on.

 

Rich Werneth
Computer Aided Technology, Inc.

The Rapidly Disappearing Chinese Cost Advantage-What does it mean for you?

  With last month, we have now had 21 straight months of manufacturing growth here in the US. This has been a bright spot in our economy while areas such as the housing sector still have not recovered.

It is true employment at manufacturing over the last 40 years has declined but, at the same time, productivity and total output has risen, similiar to the agricultural revolution many years ago.

There has been much talk of losing jobs to China over the years and certainly there will still be new factories built there by US companies. However, we are now seeing a combination of events including rapidly rising labor rates abroad, shipping and material costs, and a bevy of incentives from US states, that may be changing the tide. In many areas, labor rates in China are rising by 15% or more annually. Christian Murck, president of the American Chamber of Commerce in China, is predicting that China's low wage advantage will disappear within 5 years. What about other low-cost locales such as Vietnam, India, etc? Very often those locations do not have the supply base, infrastructure or labor pool to support their needs.

In fact, the Boston Consulting Group is a releasing a study this week that predicts an American manufacturing renaissance over the next 5 years as production increases here.

What does this mean for you and your company? Get ready now to compete and differentiate yourself by investing in technology, training and processes. Saddle up.