All Press Releases for May 18, 2015

US Weak on Production Process Sophistication Compared to Competitors Say Manufacturing Consultants TRU

Focus on technology intensive manufacturing is good but more implementation (and less talk) would contribute greatly to a stronger domestic production capability overall



"America ranks highly in economic competitiveness and the capacity for innovation in manufacturing but falls short on Production Process Sophistication compared to its global competitors"

    TUCSON, AZ, May 18, 2015 /24-7PressRelease/ -- Manufacturing engineering consultants TRU says that the US focus on technology intensive manufacturing is good but more implementation (and less talk) would contribute greatly to a stronger domestic production capability overall. TRU president Edward Anderson says the US domestic technology intensive manufacturing should be performing better compared to the conventional production and may be held back by management timidity. Seems that since the 2001 recession (when fabless or off-shore manufacturing were in vogue) production strategies have strayed off course". See chart titled "US Manufacturing Index with and without Tech Intensive"

The number of manufacturing plants operation in the US declined from around 400,000 in 2001 to 230,000 in 2014. According to MAPI the geographic composition of trade in manufactures changed radically during this period too: The US share of global exports declined from 19% to 12% while the Chinese share soared from 7% to 23%. MAPI reported March 10, 2015: "The rapid growth of offshoring, defined as the substitution of imported intermediates from low-cost countries for domestically produced goods and services, is widely believed to be the major cause for the fast disappearance of industrial capacities in the U.S. since 2000".

Anderson Agrees: "I believe the downfall of manufacturing was caused by short-sighted strategists in the US management unlike in either Germany or Japan." One may ask, where were the visionary American management leaders in the early 2000s that Tesla Motors now clearly possess, having recently announced plans to build a huge Nevada based lithium battery plant. "America ranks highly in economic competitiveness and the capacity for innovation but falls short on Production Process Sophistication compared to its competitors," says Anderson. See table titled "American vs Global Competitor Ranking in Manufacturing Performance" on the TRU Group Inc website.

TRU Group Inc are manufacturing industry consultants and is primarily about engineering technology with a distinctive capability in technology-intensive Manufacturing Industries. We activate your people with our highly qualified resource of distinguished certified professionals, integrating next-level leading-edge engineering technology, advanced manufacturing operations, market research and industrial analysis with strategy to profitably build and manage your business. A catalyst to fuel your company. Find out more about TRU on our website trugroup.com

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Edward R Anderson
TRU Group Inc
Toronto, ON
Canada
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