US-Based Industrial Manufacturers

• An uptick is anticipated with the continued strength of international sales as manufacturers move into the first months of 2008
• Most sector players are facing similar challenges:
• Increased costs for oil, natural gas, steel, and copper are squeezing margins, unless offset by pricing and surcharge increases.
• Customer reluctance to invest in new equipment has intensified the importance of aftermarket service.
• To bolster core product lines or expand geographical reach, some players are seeking acquisition candidates, while others are looking to divest under-performing units.
• Local and national taxes are increasingly complex and under continuous review.
• Industrial manufacturing companies are trying to figure out how to get the most out of their IT and people investments.
• Technological innovation is ever increasing in importance as a source of competitive advantage and a means of growth.

Lean Manufacturing

Lean manufacturing typically involves a process of continuous improvement meant to eliminate waste, lower production costs, and improve technologies. It also employs workers, materials, equipment, and space with maximum efficiency. Suppliers are encouraged to deliver “just in time” to keep inventory levels at a minimum. In the past few years lean manufacturing has become a top operational strategy as plant managers extend lean operations beyond the plant floor and into supply chains, back offices, and inventories.

Employment Concerns Among Manufacturing Executives

• Improving the public image of the industry in order to generate interest in manufacturing careers.
• Developing 21st century recruitment strategies.
• Addressing demographic shifts, including the retirement of the Baby Boomers, integrating the foreign-born workforce, and utilizing displaced workers and other alternative labor pools.
• Finding qualified instructors.
• Defining competencies and career ladders.

Manufacturing and the Low-Carbon Economy

• As the effects of climate change become more apparent, cutting carbon emissions – the key cause of climate change – has become an important priority for government, business, and investors, as well as a core focus for the manufacturing industry.
• Cutting carbon does not have to stifle economic development. Tackling climate change will not necessarily require businesses to rein in their operations and lose market share or competitive advantage. Instead, the low-carbon economy offers significant opportunities that manufacturing cannot afford to ignore.
• Forward looking businesses that act quickly have exciting opportunities ahead. Embracing the low-carbon economy now could secure both the long-term economic and environmental future of the world.