Assembly Planbook - July 2008 - (Page 24)

Special Report: State of the Profession 2008 Surviving the Roller Coaster Volatile conditions force assemblers to brace for a rough ride. By Austin Weber Senior Editor T oday’s economy is like a wild roller coaster ride. Recent events in the domestic auto industry and the housing market, not to mention skyrocketing prices for oil and raw materials, have eroded the confidence of many individuals. But, despite those challenges, most assembly professionals remain relatively upbeat. While the U.S. economy may not officially be in a recession, many manufacturers are feeling the effects. Record oil prices have left the auto industry at its most critical juncture in 30 years. Prices at the gas pump soared 10 percent between March and April, when the 2008 ASSEMBLY State of the Profession survey was conducted. American automakers are struggling to address a dramatic shift away from profitable sport-utility vehicles (SUVs) and pickup trucks to more fuel-efficient cars. Year-over-year sales of large SUVs were down 29 percent in April, while large pickups were down 17 percent. At the same time, sales of subcompact sedans rose 33 percent. This year, new vehicle sales are expected to reach their lowest levels since 1994. Tightening credit markets and a slowdown in new home construction, which is expected to reach a 60-year low in 2008, has had a ripple effect in other industries as well, such as appliance manufacturing. General Electric Co. (Fairfield, CT), the largest maker of refrigerators and washers for new U.S. homes, recently announced that it will spin off its 103-year-old appliance unit because of incremental growth projections. The Federal Reserve Bank (Washington, DC) claims that overall industrial production in the United States rose a mere 0.2 percent in March. However, the U.S. Department of Commerce (Washington, DC) reports that new orders for durable manufactured goods increased just 0.1 percent. As a result, manufacturers in many industries are scrambling to cut costs and trim their operating budgets. Indeed, the need to implement successful cost reduction programs was cited by 46 percent of the ASSEMBLY respondents, a 4 percent increase over 2007. While the urge to slash costs is a natural instinct for many manufacturers when faced with uncertain business conditions, it may not be the best strategy to follow. In fact, experts at Boston Consulting Group (BCG, New York) urge companies to be careful with their cost-cutting efforts. 24 ASSEMBLY / July 2008 www.assemblymag.com http://www.assemblymag.com

Table of Contents Feed for the Digital Edition of Assembly Planbook - July 2008

Assembly Planbook - July 2008 Contents Editorial Quality in Assembly Station to Station Assembly Lines Assembly in Action Surviving the Roller Coaster The Human Side of Manufacturing Do Your Fasteners Need a Preapplied Thread-Locker? Manufacturing Innovation A Century of Progress Trendsetting Plants Pulse Tools Get Smart Plastics: Design for X Product Reviews Products Advertisers Index Classified Leading Lean

Assembly Planbook - July 2008

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