As with the advent of any new year, our thoughts turn to what might occur in the months ahead, wish lists, hopes, and dreams. Here are a few of mine:
The Economy: The new year will see a continued slow healing of the economy and an equally slow improvement in the employment picture. Even though reports indicate that many manufacturers have improved their cash positions considerably, they are reluctant to spend for new capital equipment and to increase hiring until they have clearer signals about consumer demand. The demand picture won’t improve until people are more confident, and that won’t occur until we have greater political and economic stability, not only in the U.S. but abroad as well. My prediction: U.S. manufacturers shouldn’t look for too much help from government in 2011 as the political warfare and gridlock between the parties gets more intense.
Innovation: This is an area I have great confidence in going forward. I see manufacturers in just about every sector determined to innovate not only in new product ideas and development, but also in processes and activities such as service and support, and in how they engage with customers and partners. It is also true, though, that manufacturers are challenged with how they systematize innovation. In 2011, look for greater scientific rigor applied to the processes of innovation.
Efficiency: How much more efficient can manufacturers get? Aren’t we as lean as lean can be? Surprisingly, even after all the years manufacturers have been practicing ideas such as lean and OEE, there still appears to be plenty of headroom with these disciplines. I recently attended the annual conference of the Association for Manufacturing Excellence, held in Baltimore, and I was taken by the extent of the discussion, and the questions, with regard to lean in particular. The learning curve will continue in 2011, and this means more gains will be had.