Manufacturing in the US Archives - Business Intelligence

Tag: Manufacturing in the US

A CIO’s Guide to Industry 4.0 – The Future of Manufacturing

Industry 4.0 is the next phase of digitalization in the manufacturing sector that is driven by factors including the proliferation of data volumes, growth of connectivity and computational power, and key advancements in manufacturing innovations. Although they are still in the early stages of development, smart factory and industry 4.0 have already begun transforming manufacturing. By embracing industry 4.0, manufacturers can gain much more than just extending their digital reach and or selling new varieties of products and services. Industrial automation can increase productivity and performance and also bring down the overall production costs. Another major benefit of industry 4.0 is that it will greatly promote globalization through worldwide supply chains and sensor networks. Developing the right digital capabilities for becoming a manufacturing 4.0 organization requires a strategic step-by-step approach. This article outlines the key steps critical to success.

According to Infiniti’s industry experts, ‘Digitization is important, but most companies are not prepared enough.’ Want to strategize for successful digital transformation in your business? Request a free proposal to know how our solutions can help.

Industry 4.0Evaluate existing capabilities with expectations

CIO’s must begin by evaluating their existing technological capabilities and compare them with the digital maturity that they expect to achieve. Prioritize measures that directly align with the organization’s overall strategy and will most likely create better business value. It is also vital to communicate and get commitment for the measures that are chosen for not just the top leadership but also ensure that it is evident to people across the organization who are integral to the execution.

Begin with pilot projects

Pilot projects can be used to demonstrate proof of concept and demonstrate the business gains that can be derived from the industry 4.0 strategy. Early success in the pilot projects can also help gain buy-in from the organization and secure adequate funds for the final roll-out. Collaborate with digital leaders outside the company to create pragmatic designs for the industry 4.0 concept, this is can significantly accelerate digital innovation.

Think you are losing out market share to players who have already embraced technological innovations in manufacturing? Get in touch with an industry expert from Infiniti Research to know how our solutions can help you reassert your position in the market.

Map capabilities required to achieve desired goals

The flaws in the pilots for industry 4.0 transformation will help CIOs identify the capabilities that the organization lacks in achieving the desired results. Create a blueprint highlighting the technology enablers that will help propel the business processes forward. The success of an industry 4.0 transformation will largely depend on the company’s ability to deploy appropriate skills and knowledge.

Embrace digital capabilities

A company can encounter several roadblocks in their journey to embrace digital transformation. Data is critical to make the right business decisions and adopt feasible strategies. Combine data from different verticals of business including logistics, QC, and engineering functions and use this to analyze new methods to attract customers. Advanced technologies such as real-time analytics can be used to attract customers and fully capture the potential of industry 4.0.  Actively understanding customer behavior and orchestrating a distinct role for your organization within complex ecosystems will be the greatest breakthrough to successfully adopting industry 4.0 capabilities.

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shipbuilding company

Competitive benchmarking for a U.S. Shipbuilding Company Helps Improve Productivity By 31%

The U.S. shipbuilding industry is known to be one of the finest producers of both military and commercial fleet. However, the rising costs continue to erode the budgets and overall profitability of shipbuilding companies in the US. According to experts at Infiniti Research, some of the key causes of the rising costs include material and schedule delays, starting production with immature designs, inexperienced labor force, and reduced productivity due to the introduction of a new series of a given combatant. Other roadblocks to growth faced by players in the U.S. shipbuilding industry involve factors such as unstable and declining build rate, lack of appropriate competitive benchmarking, and suboptimal acquisition strategies. While companies are taking measures to address these U.S. shipbuilding industry challenges, the inefficiencies in tackling costs continue to plague the industry’s overall growth.

Top markets (by global market share): South Korea, China, and Japan

RFP for more insights on top segments, market opportunities, and growth strategies in the U.S. shipbuilding industry.

Business challenge

A U.S. shipbuilding company, engaged in building and repairing vessels of assorted sizes and utility, approached experts at Infiniti Research to undertake a competitive benchmarking study in an effort to understand how key players in the shipbuilding industry performed and tackled business challenges. Apart from this they also sought strategies to address other business challenges including:

  • The shipbuilding company noted a decline in productivity when compared to other international shipyards, with outputs tailing by at least 40% in comparison
  • Tackling cost growth by identifying the key cost drivers and taking corrective measures
  • Assess the U.S. private shipyards using a standardized benchmarking system
  • Improving operating margins which was found to be much higher compared to international commercial shipyard companies
  • Enhancing obsolete designs that do not adhere to the quality standards
  • Identifying DoD, Navy, and industry actions, policies, and contract incentives that can be implemented

Facing similar challenges in your business? Get into dialogue with an expert from Infiniti Research to learn how we can help your business with tailor-made solutions.

Our Approach

Experts at Infiniti Research undertook a comprehensive competitive benchmarking study with exhaustive secondary research from proprietary and open source information sources to develop insights and hypotheses specific to the U.S. shipbuilding industry. Rigorous desk research through 750+ sources was executed to understand the U.S. shipbuilding market landscape, competitor strategies, and market trends.

 As a part of the engagement, in-depth market research was undertaken where our experts assessed ten leading international shipyards and the seven major U.S. shipyards to understand their key product lines and compare the shipbuilding practices in the international markets with that of the client. The market data collected was also validated with market experts and independent consultants in the shipbuilding sector. An Industry best practice assessment also identified key strategies and best practices followed by international shipbuilding companies to reduce costs and enhance productivity. This enabled us to help the shipbuilding company benchmark their exiting processes with that of key players in the market and identify the critical gaps. With Infiniti’s market opportunity analysis, the U.S. shipbuilding company was able to analyze various growth opportunities.

Results Achieved

shipbuilding industryInfiniti’s engagement helped the shipbuilding company implement strategies to enhance their overall productivity. Within a span of 7 months, the client recorded a 31% increase in their productivity. The benchmarking analysis also helped the client understand how they compared to top performing shipbuilding companies and replicated their cost-cutting strategies into the business. The shipbuilding company also identified the right suppliers to procure good quality materials at reasonable prices, bringing down the overall cost of production. Additionally, the shipbuilding company was also able to:

  • Improve their operating margins by 10% in each quarter
  • Revamp design implementation strategies by understanding the changing market requirements and discarding the obsolete segments
  • Identify unmet market needs and key growth segments before their competitors, giving them a first-mover advantage in the market

Shipbuilding industry

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Reviving the US Manufacturing Sector

MANUFACTURING

The erosion of the US manufacturing sector over the past couple of years have been a big blow on the growth of the US economy. Small and midsize manufacturing companies are the most affected, while large companies in the US manufacturing sector have managed to thrive despite the growing headwinds. Although it is widely believed that little can be done to put an end to the ongoing decline of US manufacturing sector, continued losses are not a foregone conclusion. On the brighter side, the rising demand, productivity gains through technology, and finding growth in new parts of the value chain will likely create an opportunity for the US manufacturing sector to turntables. Given how vital manufacturing is to the broader economy, capitalizing on these opportunities must be given national priority.

We examine some of the key factors that will fuel growth in the future of manufacturing in the United States and how manufacturers can leverage this opportunity to revitalize their business.

Attaining success in the manufacturing industry involves the use of market research, demand forecasting, product development, and distribution. Facing predicaments in handling it all by yourself? Request a free proposal from Infiniti’s industry experts to learn how we can help you.

manufacturing sectorGrowing demand

Although the US market is not the same familiar ground it was in the past, it remains one of the most developed and lucrative markets in the world. Furthermore, the US consumers are more diverse and expect higher quality and varieties at lower prices. Beyond the domestic market, the demand is also soaring in developed and emerging economies around the globe. However, for tapping into demand growth in emerging economies, it is vital to know exactly where and how to compete. Markets including Africa, Brazil, China, and India represent enormous opportunities, but they have dizzying regional, ethnic, linguistic, and income diversity. This translates to the fact that manufacturing sector companies must navigate greater complexity than ever before and identify the most feasible strategies to produce a wider range of product models with differing features, price points, and marketing approaches.

Industry 4.0

In order to enhance productivity, the US manufacturing sector must capture demand opportunities coming their way. Innovative technologies will play an integral role in determining how effectively they can achieve this and compete better in the market. The rise of industry 4.0 in the US manufacturing sector is largely driven by the increase in volume of data available, new forms of human–machine interactions such as the use of AR, and the ability to transmit digital instructions to the physical world. These advanced technologies are designed to run smart, cost-efficient, and automated plants that produce large volumes or plants that produce highly customized products.

Rethink and reinvent your business strategies with advanced market intelligence solutions. Get in touch with us to learn how our manufacturing sector experts can help your organization achieve this.

Rethinking business models, footprint, and sourcing

US manufacturing sector companies are seeking new ways to capture value beyond traditional production processes. Moreover, with changing input costs, the gap between labor cost in the US and abroad have also narrowed and the cost of industrial robots are rapidly falling. As a result, several US manufacturing sector companies are moving their manufacturing base to the home country. Advancements such as the internet of things and robotics can effectively handle dangerous tasks and eliminate safety risks. Beyond the factory floor, new applications for coordinating distributed supplier networks improve the flow and tracking of raw materials and manufactured parts.

Want more insights on our solutions for the manufacturing sector?

manufacturing industry

Curated Insights on the Manufacturing Industry from Infiniti’s Industry Experts

The past decade has been tumultuous for the global manufacturing sector. Large developing economies made their way into the first tier of manufacturing nations, a severe recession choked off demand, and there was a steep fall in the manufacturing employment in advanced economies. Despite this, manufacturing remains critically important to both the developing and the advanced world. The changing nature of the manufacturing sector means that old responses are no longer sufficient to sustain. While manufacturing remains crucial to support economic stability in both developing and advanced economies, business leaders and policy makers must keep track of the pulse of the sector to identify opportunities and challenges coming their way. We have curated some articles from Infiniti’s thought leaders about how the manufacturing environment is changing and what business leaders must do to adapt.

Key forces that will drive growth in the future of manufacturing in Europe

Europe’s manufacturing industry will play a significant role in building a sustained and competitive economy. The manufacturing sector currently accounts for nearly 15% of Europe’s GDP and will play a significant role in their long-term economic development. According to industry experts at Infiniti, factors including nearshoring in eastern Europe, carbon neutral manufacturing processes, and the rise of industry 4.0 will play a pivotal role in driving the future of manufacturing. Read the article for more insights.

A guide to effectively tackle your manufacturing overhead costs

The current scenario in the US manufacturing sector is much different from what it has been for over the past two decades. As output growth in the US manufacturing industry has been largely concentrated on a few industries such as electronics, pharmaceuticals, and aerospace, there has been a considerable fall in labor share of US GDP. The US manufacturing industry must now focus on positioning themselves to leverage existing opportunities and prepare to compete in the future rather than making attempts to recreate the past or maintain status quo. Gain expert opinion on how companies in the US manufacturing industry can tackle their excessive overhead costs on this blog.

Top manufacturing industry trends

Manufacturing companies around the globe are increasingly exploring radically new ways of creating and capturing value. Furthermore, with the changing demand of consumers, manufacturing will no longer be limited to producing physical products alone, it will largely revolve around personalization and customization. The new age industrial revolution also termed as industry 4.0 is powered by innovative technologies such as smart manufacturing, robotics, artificial intelligence and the Internet of Things (IoT). These technologies are expected to be major driving forces in the future of manufacturing. In this blog, industry experts at Infiniti provide comprehensive insights on the top manufacturing industry trends that you must watch out for.

FAQs on smart manufacturing

Smart manufacturing is one of the most trending topics among manufacturing experts right now. Smart manufacturing is a powerful force with the potential to restructure the existing competitive landscape and produce a new set of market leaders. In this blog, experts at Infiniti answer four key questions relating to smart manufacturing and how it is transforming the manufacturing landscape as we know it.

Cost Reduction Strategies in Manufacturing: A Guide to Effectively Tackle Your Manufacturing Overhead costs

manufacturing overhead costs

If the production method is inefficient businesses are less likely to profit from it, irrespective of how impressive their products are. Rather than increasing the price of the product in such situations, it is advisable for manufacturing companies to lower the production costs and the manufacturing overhead costs.

What are manufacturing overhead costs?

Manufacturing overhead is concerned with a company’s manufacturing operations and includes the costs incurred in the manufacturing facilities other than the costs of direct materials and direct labor. Manufacturing overhead costs include all the indirect costs incurred during the production process. Our most successful clients focus on ways to improve costs, profits, and flexibility by reducing manufacturing costs. Manufacturing cost reduction efforts can result in significant product cost savings, manufacturing cost-saving, and life cycle cost saving especially when companies implement the right strategies for the reduction of manufacturing overhead costs.

It is vital for manufacturers to reduce their manufacturing overhead costs without having to compromise on the quality and quantity of the products. Not sure how to achieve this? Request a free proposal from our industry experts to find out.

Cost reduction strategies in manufacturing

Cut down material costs

One of the simplest ways to reduce manufacturing overhead costs in by cutting down the material costs. This can be achieved by tweaking product designs and effectively utilizing all the resources available at hand. It is always beneficial to opt for simpler designs and cost-saving raw materials. The leftover materials including cardboard, metal, and paper can be sent for recycling.

Optimize employee performance

Employees in manufacturing companies must be trained to keep pace with the changing consumer expectations. Training and development activities must be carried out to enhance the skills and productivity of employees in manufacturing facilities. Qualified and skilled employees can help businesses minimize their manufacturing overhead costs that occur due to production inefficiencies.

Get in touch with our experts to know how our advanced solutions for the manufacturing industry can help your business to trim down expenses while improving business efficiency.

Negotiate with suppliers

 Another way of significantly reducing the manufacturing overhead costs is to negotiate with the suppliers to reduce prices. To gain a reasonable price reduction from the suppliers, manufacturers can try offering larger deposits and ensuring that all the bills are settled on time.

Control inventory storage and purchases

The longer stocks are held, the more is the warehousing costs incurred by manufacturers. To avoid this and reduce the resulting manufacturing overhead costs, manufacturers must have a fair idea of when to resupply so that they do not get stuck with excess or obsolete inventory. Furthermore, adequate care must also be given to avoid inventory shortages. Inventory shortages lead to backorders which require manufacturers to add extra shipping costs and even worse, they can lead to unsatisfied consumers.

Learn more about Infiniti’s solutions for the manufacturing industry

manufacturing industry in Latin America

Why Top US Brands are Turning to the Manufacturing Industry in Latin America

Earlier, many top manufacturing companies in the US heavily relied on Chinese manufacturers due to the availability of low-cost labor. However, with the rapid economic growth in China and a larger section of the Chinese population moving to middle-class and demanding higher wages, several global brands are turning away from China in search of lower-cost alternatives from emerging markets. The manufacturing industry in Latin America is one such market that has become highly lucrative for companies in the US. Everything from medical supplies, to pharmaceuticals, to apparel, aircraft and computer machinery is now manufactured in Latin America, and the political and economic policy adjustments have significantly contributed to the manufacturing industry growth in Latin America.

A lot goes into finding the right balance in terms of economy and quality while manufacturing a product. Request a free proposal to know how our solutions can help you achieve this!

Benefits of manufacturing in Latin America

manufacturing industry in Latin AmericaProximity

One of the key benefits of manufacturing industry in Latin America is its proximity to the US. When American brands do business with suppliers in overseas regions like Asia, it requires officials from the company to travel to the foreign nation. This is primarily because they may want to gain a firsthand view of where and how their products are manufactured.  One of the key benefits of manufacturing in Latin America for companies in the US is their proximity to Central America. Another challenge that proximity helps solve is the disconnect from the manufacturing process.

Lower turnaround time

By relying on the manufacturing industry in Latin America, companies in the US can ensure faster shipping of the final products than that from overseas. Often, businesses that have their manufacturing units in Asian countries like China re-stock only once a quarter it takes at least a month for an order to ship overseas. This lack of flexibility in ordering can lead to over- or under-stocking of products. Shipping from the manufacturing industry in Latin America gives a lot more flexibility to companies in the US when it comes to placing orders.

Get in touch with our experts to stay updated on the latest manufacturing industry trends, challenges, and opportunities and learn how our solutions can help your business stay ahead of the game.

Vast labor pool

One of the biggest advantages of turning to the manufacturing industry in Latin America is the high labor pool available. With China’s economy on the upswing, the labor costs of manufacturing industry in Latin America would prove to be much cheaper for brands in the United States. Moreover, in changing economies, Like China, where a greater number of people are rapidly entering the middle class, the manufacturing industry is booming due to the rise in demand by the local population. This means that manufacturers are utilizing their own resources to meet local demands. In some places, it is required for them to do so. This could lead to longer turnaround times and higher cost of labor overseas, making the manufacturing industry in Latin America highly attractive for American companies.

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