EITEL NEWSLETTER

American manufacturing is facing its next significant challenge. The vaunted "global supply chain" is showing some weaknesses in its links and the successful economies of China and India just further points out our own shortcomings. China and India's growth is based on investments in manufacturing which have raised their standard of living and spawned a new middle class and growth in consumerism. Meanwhile, our efforts at building a "global supply chain" in order to reduce manufacturing costs is backfiring. The weak links include slow response times, poor communications, resource conflicts, rising labor costs, higher transportation costs, and most important of all - quality issues. What are we going to do?

America's once great manufacturing infrastructure is imploding. Plants are closing down and profits are generated by liquidating assets - not new production! Some companies are tempted to acquire these used assets at scrap value and use them to ramp up their production for the future. Is that how we meet the challenge to America's greatness? I don't think so.

If American manufacturers are to regain their reputation for quality, affordable pricing, and superior design, we need to innovate. New products, new processes, and innovation on the factory floor is what is needed. Insanity was once defined as doing the same thing over and over and expecting different results. We need to think outside the box and innovate.

We need to train our workforce for the factories of the future. We have a willing and ready workforce clamoring for the tools to do their jobs better. Give them the education and the tools and you will see the pride they take in their work.

Cultivate a new local supply chain and partner with them. A long term commitment to develop new products with your suppliers will result in consistent quality, consistent pricing and reliable deliveries. These are more important than short term costs reductions.

Demand and expect the best from yourself, your employees, and your suppliers. Invest in new equipment and invest in your people. The results will more than speak for themselves!

Ron Schildge