LONDON--(BUSINESS WIRE)--A well-known market intelligence company, Infiniti Research, has announced the completion of their latest article on the US manufacturing industry: how to improve scalability and compete in future. In this blog, experts at Infiniti reveal the opportunities and challenges facing companies in the US manufacturing industry right now and also highlights how manufacturers can leverage these opportunities to improve future scalability and competitiveness.
The US manufacturing industry has evolved drastically over the last few decades. The erosion of American manufacturing companies has contributed to approximately two-thirds of the fall in labor share of US GDP. This is primarily due to the fact that the output growth in the US manufacturing industry has been largely concentrated on a few industries like electronics, pharmaceuticals, and aerospace. Despite the headwinds in the sector, some of the largest US manufacturers have managed to thrive, but several small and mid-size manufacturing companies are facing the heat. The United States must now focus on positioning its manufacturing sector to leverage existing opportunities and prepare to compete in the future rather than making attempts to recreate the past or maintain status quo.
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Improving scalability in the US manufacturing industry
Strengthen supplier base
Keeping suppliers at arms-length often has an impact on the bottom-line of large manufacturers. Furthermore, seeking lower bids from suppliers can result in diminishing returns over time. Procurement should be viewed as a source of value rather than simply a means to cut costs. Companies in the manufacturing industry can also benefit from identifying the suppliers that provide critical, high-value components and these may not be the largest suppliers. Rather than restricting themselves to only monitoring suppliers, US manufacturing industry companies must solicit suppliers’ ideas, invest in their capabilities, and build trust to promote better supplier relationships.
Deeper global engagement
Emerging markets open up new opportunities for companies in the US manufacturing industry to win customer loyalty and build their customer base. But the number of US companies that sell abroad is much lesser when compared to other developed economies. Small and mid-size companies in the US manufacturing industry must gain a deeper and strategic understanding of the opportunities that their counterparts enjoy in advanced economies and turn it to their advantage.
Many manufacturers, particularly in advanced industries, often report difficulties in identifying and capitalizing on opportunities before their counterparts in the market. Get in touch with our experts to know how our solutions can help companies grab opportunities and gain a better foothold in the market.
Improve adoption of digital technology
The US manufacturing industry has been relatively slow in the adoption of digital technologies. This has caused a significant impact on the industry’s productivity and performance. When compared to nations such as Germany, Japan, and South Korea the adoption of advanced technologies and robotics in the manufacturing industry has been comparatively lower in the United States. In order to capitalize on modern technology, manufacturers have to capture, analyze, and integrate data flows across operations. They can also consider upgrading and replacing some outdated machinery with the latest ones.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. To know more, visit: https://www.infinitiresearch.com/about-us
