Manufacturing Today - Spring 2011 - (Page 18)

FEATURE BY RAFE VANDENBERG & BARRETT THOMPSON Not too many years ago, the number of manufacturing markets and sectors that could truly be described as dynamic from a pricing perspective was fairly limited. While some emerging categories were certainly deserving of the label, most categories were far more stable and even somewhat predictable. In these more mature sectors demand would ebb and flow, of course, but within a fairly predictable and manageable range. Competitive actions were relatively measured, rational, and slow to manifest. And though material costs would certainly fluctuate, there was usually ample warning and companies had plenty of time to evaluate the courses of action. That all changed in 2008, and the chaos that went along with the global economic meltdown caught many manufacturers by surprise. Overnight, their markets went from being relatively stable to being highly dynamic. The somewhat predictable demand projections were replaced with best-guess estimates. Material cost fluctuations that would previously take weeks or even months to play-out were now happening in a matter of days. Once rational firms were now making seemingly desperate price moves on a daily basis. M F G TOMORROW B USINESS VALUE N EWS S U STA I N A B I L I T Y I MPROVEMENT C ONTENTS D IALOGUE P RICING A Costly Capability Gap Gaining Control responding to market dynamics ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// In today’s dynamic markets, the ability to quickly respond to cost fluctuations or competitive actions has a direct impact on growth and profitability. Learn how leading manufacturers are using pricing technology to automatically detect subtle changes in the marketplace and respond long before the trends become obvious to everyone. M F G TO N EWS A CCOUN C ONTEN D IALOGU P RICING B USINES I MPROV For many manufacturers, the economic condition has exposed a critical weakness in their ability to sense and respond to changing market dynamics in a rapid fashion. While their capabilities in this area may have been sufficient under relatively stable market conditions, manufacturers found them to be lacking as their markets became more dynamic in nature. In fact, capabilities that had once been deemed “good enough” became a liability and put companies at a clear disadvantage. Some companies lost their share of the shrinking pie as they failed to S U STA I N 18 SPRING 2011

Table of Contents for the Digital Edition of Manufacturing Today - Spring 2011

Manufacturing Today - Spring 2011
Business Value
Supply Chain
Patriot Forge Co.
Reading Bakery Systems
The South African Mint Co.
GCX Corp.
Jay Industries Inc.
Johnson Electric Coil Co.
Certified Transmission
Olhausen Billiards
Pace Industrues
RTI Claro
The Testor Corp.
Restonic Matresses
Advanced Automation
Anadigics Inc.
Hermes Cones & Snack Manufacturers
JR Automation Technologies LLC
Prodomax Automation Inc.
Stafford Manufacturing Corp.
New England Ropes
Berger Paints Trinidad Ltd.
Air Tractor
Artisans Inc.
Bermingham Foundation Solutions
Bowers Manufacturing Co.
Ferti Technologies
Industrial Acoustics
Morton Industries
Presstek Inc.
Ranco Fertiservice Inc.
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Manufacturing Today - Spring 2011