Last month I had the opportunity to sit down and talk with the author of Saving American Manufacturing, Michael P. Collins. We talked about our views of American Manufacturing and it’s future and I want to share with you some of the lessons form his book.
Current Situation of American Manufacturing:
Manufacturing as a Percent of Gross Domestic Product (GDP)
US 11% (29% in 1950)
Michael believes there is a critical mass of manufacturing we need in the US before our national growth falls from 3% per year down to 1-2 % per year. This will greatly impact the way of life in the US.
Lessons from the Book - Saving American Manufacturing (Ways to Grow American Manufacturing):
1) Stop the Bleeding – Find out why you are losing orders, find out how your products/services compares to your competitors and put plans in place to correct any product outages and TALK TO YOUR CUSTOMERS
2) Find New Markets – classify you most profitable customers by NAICS code and market to other companies under that NAICS code. Begin looking internationally for markets for your products and not just markets within the US. Also, determine the best combination of sales/distribution channels to reach these niche markets.
3) Offer New Products/Services – from marketing research that includes customer/prospect conversations, create new products to meet a niche or add services to your product offering.
4) Offer Customized Products & Short Production Runs (this is one of my favorite methods for American Manufacturers because in order to provide a customized product you have to build a relationship with that customer that is hard to duplicate by another company and your product margins typically are much higher).
5) Become a Prospector Organization – Most manufacturers have a Defender Organization that works well for stable, reliable markets with a functional organizational structures with centralized decision making. Prospector Organizations works well in a changing environment. Prospector Organizations have decentralized control, service multiple markets and constantly finding and capitalize on new product and market opportunities.
I recommend any one in manufacturing to purchase the book on Amazon.com.
Agent Technologies, Inc.