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Embrace the Principles of Next-Generation Manufacturing ... and Prosper

To be successful in the future, to stay competitive and relevant, and to revive and save the manufacturing sector, all manufacturers must adopt next-generation manufacturing principles.

By Daniel Burrus, founder and CEO of Burrus Research

Jan. 27, 2012

We're all well-aware of the myriad challenges facing U.S. manufacturers in the 21st century -- from intense global competition to increasing market volatility to the aging workforce and shortage of skilled labor.

Despite all of that, we know that the U.S. economy cannot move forward without a strong manufacturing base.

So what's the answer?

Today's manufacturers must transform -- along with the rest of the world -- by adopting next-generation manufacturing principles.

And while many manufacturers have started to adopt some next-generation manufacturing principles, there are six advanced principles they need to embrace in order to move forward -- now.

Let's look at both categories: the current and the advanced.

Current Principles in Practice

Manufacturers that have adopted basic next-generation manufacturing principles:

  • Are connected to the global economy. They can reach more consumers and can sell in ways that they couldn't have sold before.
  • Have higher productivity. Technologies such as low-cost advanced robotics; private and hybrid cloud computing; software as a service (SaaS); hardware as a service (HaaS); virtualization; and mobility using smartphones, tablets and business apps can yield new levels of productivity at lower pricepoints every year.
  • Are lean and agile. Lean means not carrying a lot of inventory, maximizing the supply chain and logistics, and keeping costs down. Being agile means being flexible enough to respond to market conditions faster and not be stuck with a lot of parts or raw materials should the market suddenly shift.
  • Innovate using cutting-edge technology. Manufacturers are looking at how new technologies can enable them to do things they couldn't do before. These technologies can include everything from robotics to new devices that allow you to print three-dimensional objects.
  • Attract, develop and retains talent. While today's manufacturers are using fewer employees, the ones they do hire are often more specialized. Attracting, developing and retaining these skilled workers has become a top priority for manufacturers to stay competitive.

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