Assembly Planbook - July 2008 - (Page 25)

by major export growth,” Hal Sirkin, global leader Labor Shortage Is a Growing Concern says Marion Blakey, of BCG’s operations pracAIA president and CEO. tice, believes manufactur“Aerospace employment ers should approach the has climbed steadily since economic slowdown as an 42% 41% hitting a low in 2003 of opportunity to prepare for 587,100.” when business conditions That increase in employeventually improve. “By 36% 34% ment is closely tied to record mainly focusing on cost industry sales, which reached reduction, [companies are] 24% $199 billion in 2007 and are not taking advantage of the 23% expected to eclipse $210 bilopportunities a recession lion in 2008. Demand for can provide,” he points out. aerospace products and parts Sirkin warns that it’s is predicted to continue its easy for management to manage strong showing in the future, fall into the recession trap. reces 2003 2004 2005 2006 2007 2008 with a forecast calling for “In a recession, everyone 11 percent growth in 2009. feels short-term p pain,” he Boeing Co. (Chicago) recently reportexplains. “But, companies that suc- be shipped overseas. co Aerospace is another manufactur- ed that its first quarter revenue rose 4 cessfully approach a recession as an opportunity have the potential to realize ing sector that is experiencing record percent, while its backlog hit a record th long-term gain Vie gain. Viewed the right way, a growth. According to the Aerospace $346 billion. Caterpillar and Deere also have a downturn presents a strategic opportu- Industries Association (AIA, Arlington, nity to leapfrog the competition, rather VA), aerospace employment increased large backlog of orders, but skyrocketthan simply posing a threat.” in March to 651,700, a slight increase ing raw material prices are taking a toll over the 2007 year-end average of on profit margins. According to Deere executives, prices for steel and other Global Growth 645,600. Some industries are contracting, but “While overall manufacturing raw materials were up $110 million pockets of manufacturing remain robust employment has declined, our civil, through the first six months of 2008. Despite that expense, exports are and surprisingly upbeat. For instance, defense and space sectors are strong, with a record backlog of orders fueled expected to continue to bolster the U.S. business is booming for manufacturers of farm and construction equipment. Deere & Co. (Moline, IL) recently announced record second quarter earnings due to strong global demand and favorable currency exchange rates. A worldwide boom in farm prices has boosted demand for tractors, combines and other agricultural equipment. As the dollar weakens in relation to other currencies, such as the euro, products made in the United States become cheaper to foreign buyers. Caterpillar Inc. (Peoria, IL) is another large manufacturer that is benefiting from that economic phenomenon. The company has seen rising orders for its equipment from Brazil, China, Russia and the Middle East. Its export growth climbed 27 percent in the first quarter of 2008. In fact, approximately 70 percent of the backhoes, excavators and diesel engines that Caterpillar assem- Despite recent events in the auto industry and the housing market, most assembly professionals bles in the United States this year will remain relatively upbeat. Photo courtesy Brose North America Inc. www.assemblymag.com July 2008 / ASSE M B LY 25 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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