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by Jeff Moad, MA Editorial Staff   | Abstract: | Manufacturers have achieved substantial gains in productivity for years. But getting to the next level will require the ability to recognize and quickly respond to demand shifts, operate at maximum efficiency, and generate the greatest possible return on assets. |
 Over the past 25 years, even while coping with an unprecedented pace of change, U.S. manufacturers have managed to maintain at least one constant: a solid, unbroken track record of productivity improvement. Vertically integrated enterprises have given way to virtual networks capable of taking advantage of trends such as cheap offshore production. Long, steady production runs have changed to short, demand-driven production bursts. Manageable bills of materials and product catalogues have exploded as the number of products and features has skyrocketed. Yet, through it all, U.S. manufacturers have remained at or near the top in driving productivity, at least as measured in the traditional terms of output per worker hour. And it's a good thing, too. Without the breakthrough productivity gains that they have achieved in recent years, many U.S. manufacturers would not have been able to overcome an avalanche of rising costs for everything from raw materials to energy. Nor would U.S. consumers have enjoyed the steady supply of low-cost manufactured goods that has played a major role in stimulating economic growth. "While it tends to be cyclical, the long-term rise in manufacturing productivity has resulted in a competitive advantage for U.S. manufacturers and an important boost for the economy, driving down inflation," says Dan Meckstroth, chief economist at the Manufacturers Alliance/MAPI, a manufacturing industry trade group. "It's really quite a success story." [Click to continue] |