What
is the Future of American Manufacturing?
In 1960, over 25% of the US workforce was involved in
manufacturing. Now only around 10% of the US workforce is involved
in manufacturing. But over that time the share of US manufacturing
as a percent of Gross Domestic Product (GDP) has stayed relatively the
same, while the US GDP (economy) has significantly grown.
What does that mean?
It means American manufacturing has had significant
productivity gains and will become even more productive - primarily due
to automation - requiring fewer workers but delivering increased
output. Yes, there has been some offshoring, but these jobs have
been primarily of less automated commodity items. In 2016, 27,000 MORE jobs were
“re-shored” than were “off-shored” according to The
Reshoring Initiative
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2000
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2016
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Workforce
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18.3 million
(13.5% of workforce)
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12.3 million
(9% of workforce)
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Contribution
to US Economy
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$1.23 trillion
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$2.18 trillion
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From the Bureau of Economic Analysis and
Bureau of Labor and Statistics
So what is the Future of American
Manufacturing?
The low skilled monotonous tasks of the past won’t exist in
the future and will be taken over by robots. But the manufacturing
of custom products and other high-end products will only continue to
grow. When a product is made for the unique needs of an individual
company or person, the manufacturer’s margins and market share are
protected. The tool that helps make custom products possible on a
mass scale – product configurators.
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Benefit of Product Configurators
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Reasons to Believe
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105% Increase in Deal Size
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Rules automate upselling to quote all
options the customer could use and not just the options the salesperson
is familiar with
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28.8% Shorter Sales Cycle
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Automated approvals for technical and
pricing reviews reduce sales cycle
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25% Decrease in Costs of Sale
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Decreasing the number of technical
resources tied to supporting sales process
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49% More Quotes
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Automated generation of
proposal/quote
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16% Increase in Win Rate
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By getting quotes to customers faster
and being more responsive to their requests
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40% Reduction in Order Errors
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Rules prevent incorrect product
configurations
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Eliminates Waste in Operations in the
Making of the Product
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Eliminates checking and re-checking
of product configurations for manufacturability
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Statistics from 2013 Aberdeen Group study and a Gartner
Research study
If you are interested in how product configurators can help
your organization, contact
us. We have been implementing product configurators for
organizations for over 20 years.
Thanks,
Ben Moore
President
Agent Technologies, Inc.
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The Consumer's Workshop: the future of American
manufacturing
The Consumer's
Workshop: The Future of American Manufacturing is a hand book on how to
setup the systems within your company and create the workforce you
need to be successful now and in the future. Written by
authors that have worked at some of America's largest manufacturers,
founded their own manufacturing organizations and helped numerous small
manufacturers grow.
The Consumer's
Workshop: The Future of American Manufacturing is a must read for today's
business leaders. It is insightful and provocative in its approach
to where US manufacturing has been, how manufacturing got into the
troubles it faces today and what we need to do to become the standard for
world class once again. If we want to know how to regain that
competitive edge once again, the roadmap is certainly the pages of The
Consumer Workshop.
-- Bruce Vaillancourt,Director, NIST MEP Program, TechSolve, Inc.
 The Consumer's Workshop is an extremely
timely review of how manufacturing strategy developed in the past
and how it will change in the future. The author team clearly
demonstrates that companies have to change -- and provide plenty of
advise how such a change should take place."
-- Frank Piller, PhD, International Manufacturing Consultant
As the authors make clear, eventually American manufacturing
will become the workshop for direct production of consumer's own designs
-- or it will be no more. Begin that path by following the steps outlined
here."
-- B. Joseph Pine II, author, Mass Customization: The New Frontier in
Business Competition
Investment: $12.99
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Manufacturing Statistics:
- Industrial production rose 0.4 percent
in June for its fifth consecutive monthly increase. Manufacturing
output moved up 0.2 percent. At 105.2 percent of its 2012
average, total industrial production in June was 2.0 percent above
its year-earlier level. Source: Federal Reserve Board
- Total nonfarm payroll employment increased by 209,000
in July, and the unemployment rate was little changed at 4.3
percent. Source: Bureau of Labor Statistics
- Goods and services deficit was $43.6
billion in June, down
$2.7 billion from $46.4 billion in May, revised.
June exports were $194.4 billion, $2.4 billion more than May
exports. June imports were $238.0 billion, $0.4 billion less than
May imports. Source: Census Bureau, Bureau of Economic
Analysis
- New orders for durable manufactured goods
in June 2017 increased
$14.8 billion or 6.4% to $245.8 billion. Source:
Census Bureau
- Inventories of manufactured durable goods
in June 2017 increased
$1.8 billion or 0.5% to $397.4 billion. Source:
Census Bureau
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Agent
Technologies, Inc.
Phone:
513-942-9444
Fax:
513-942-9446
Email: info@agenttech.com
Agent
Technologies Inc
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Founded in 1995,
Agent Technologies provides operation improvement through software and
consulting. Solutions include: Custom
Application Development, xRP
- Online CRM/ERP Solution (xrpsystem.com), Operations
& Mass Customization Consulting and Product
Configurators (Oracle CPQ Cloud/Big Machines). Try xRP - Our Online
CRM/ERP Solution (xrpsystem.com)
- FREE 30 Day Trial!
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