Managing Automation - August 2008 - (Page 20)

COVER STORY MORE FROM THE POLL: Straight Talk from Manufacturers As part of the survey questionnaire, Thomas readers were offered the opportunity to provide comments. More than 550 respondents took us up on that offer. Here are a select few of them. “ I’m not against trade with countries like China. But the playground must be leveled. They must live up to the same labor and environmental standards as we do. We don’t want to buy stuff made in China by sweatshops. We don’t want to trade with a country where more than 10 coal miners die on the job each day, where slaves are used in brick factories, where river water has turned into black ink. When the playground gets leveled, we have a competitive edge. With NAFTA and open markets, it seems that the prime benefit is for the manufacturers who go overseas for cheaper goods. The bottom line is to make more profit for the company and the shareholders, and not for the good of USA workers and our economy. Where are our children’s children going to work? “ “ “ Innovation is key to our continued prosperity and national health. Private and public sectors need to work together to create the opportunities and to develop critical resources. Throughout the U.S. we are faced with worker shortages, not due to a lack of workers but a lack of qualified workers. Without proper access to basic skills and industry-specific training, we will continue to lag behind in the world economy. If you look at the structure of the current community college system and of our four-year universities, they lack the flexibility to change to meet industry-specific training needs. For the benefit of all of our young people, we need to change the perception that athletes and movie and rock stars are cooler and hipper than scientists and engineers. ” “ The free market will determine who succeeds and who fails. Government usually provides more regulations, which only increase the cost of doing business, thus making U.S. industry non-competitive. Free trade will ultimately benefit the U.S. “ ” “ Whatever administration [wins] in November should balance the benefits of outsourcing with the need to keep American jobs in America. We have lost far too many jobs to India and China, and will continue to lose them unless the government somehow stops the practice. The government should drastically reduce spending on the military, putting more into basic research, social programs, the country’s infrastructure, alternative energy, and the reduction of global warming. ” ”“ ” ” Deloitte/NAM: Top Execs Show More Optimism ” ” A sizable number of top executives of North American manufacturing companies are optimistic about their competitiveness today and expect to be in an even stronger position five years from now, according to a survey released in June. The survey, called Made in North America, garnered responses from 321 senior executives from companies with North American operations. It was conducted by member firms of Deloitte Touche Tohmatsu in Canada, Mexico, and the United States, with the cooperation of the National Association of Manufacturers, The Manufacturing Institute, and Canadian Manufacturers & Exporters. Craig Giffi Among U.S. companies, 41% believe that they are now ahead of their competitors, but 57% predicted that they would be even better positioned against primary competitors within five years. “The survey reveals a fairly optimistic view of increasing global competitiveness,” said Craig Giffi, chairman of the global manufacturing industry practice at Deloitte. Many respondent companies said they would expand business activities in the United States. Sales operations led the list, with 76% saying they would expand sales in the United States over the next three years. In production, 44% of North American companies said they would expand over the next three years, 49% said they would grow services and sourcing, and 39% said they would expand engineering and research and development efforts. “The simplistic way to view manufacturing is to look only where production is located,” Giffi said. “It’s clear that a more accurate way to measure the economic impact of these companies is to look at where all operations are located, including sourcing, research and development, distribution, finance, marketing, and all of the other functions necessary for a company to thrive. In most cases, executives are telling us that North America provides a competitive business environment for most of these activities.” With regard to international trade agreements, specifically NAFTA, 49% of the executives said it has had a positive effect on their businesses, 41% have a neutral view, and 10% said it has hurt them. Among the top barriers to competitiveness over the next few years, 71% of survey respondents, the largest group, cited labor costs, followed by work rules, tax policy, government bureaucracy, and raw material prices. Among the top priorities for government to address were labor costs, tax policy, and availability of skilled labor. “The survey clearly shows concerns that manufacturing companies want government to address,” said Emily DeRocco, NAM senior vice president and president of The Manufacturing Institute, in a prepared statement. “With an election on the horizon, U.S. candidates should redouble their efforts to explain how they will address these major pressure points and improve prospects for a continued strong manufacturing production base in America.” ma 20 2008 August

Table of Contents Feed for the Digital Edition of Managing Automation - August 2008

Managing Automation - August 2008 Contents Take 1 After 18 Months, the Oracle/SAP Suit Has Little Effect on Maintenance Sales At 100, Foxboro Reinvents Around Its Customers New Private Equity Firm Eyes Software A Software Suite Just for Manufacturers i2 Chief Focuses on Services Plan Notes It's Time for Action Examining U.S. Competitveness Leveling the Field An Unhealthy Situation Exploring Alternatives Math and Science: Key to the Future Product Scan Advertiser Index Next

Managing Automation - August 2008

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