Open Site Navigation

WHAT’S DRIVING MANUFACTURING TRANSFORMATION?

A “Perfect Storm” under which the manufacturing industry
is radically transforming.

What’s Driving Manufacturing Transformation?

CHANGING INTERNATIONAL DYNAMICS

Changing international dynamics placing intense pressures on U.S. manufacturers to re-shore.

INNOVATIVE TECH

Increasing levels of automation and digitization across the entire value chain.

CLOSING WAGE GAPS

Decades of stagnant wages in the U.S. relative to Asian markets, have dramatically narrowed the labor cost component and labor arbitrage.

EVOLVING PRIORITIES

Greater customization and lean supply chains in many markets have led to a push for greater efficiencies at lower and moderate volume productions and an increasing premium on agility.

MANUFACTURING RESET

New manufacturing technologies (including additive manufacturing) over indirect and direct components are starting to become competitive on unit economics and throughput.

CLOSER TO CUSTOMERS

Shifting to more regionalized production facilities, closer to customers, with “build-to-order” business models is a growth strategy as production costs decline and logistics become a large portion of total COGS.

GREEN PRODUCTION

A new premium is being placed on reducing energy, space, and emissions to reduce supply chain costs.

INFRASTRUCTURE!

The U.S. government is investing at once-in-a-generation levels in infrastructure, manufacturing, and supporting technologies, creating opportunities for disruptors.

DIGITALIZATION

Manufacturing is finally adopting digital, e-commerce, go-to-market, two-sided marketplace, and infrastructure/cloud practices. (Note that the COVID pandemic’s WFH transition is accelerating manufacturing’s digital adoption.)