Manufacturing ERP Drives Industry Growth & Manufacturing Jobs

Posted in Subcontract Manufacturing Trends on March 22, 2013

driving-industry-growth | Photo Courtesy of amit1077 http://www.flickr.com/photos/62292842@N05/5671749142/sizes/q/

Manufacturing in the U.S. is experiencing a quiet resurgence, but analysts are wondering whether this is temporary.

An article on Forbes.com says for American manufacturing to be key to long-term growth, several problems must be solved, including these four.

  1. Slow adoption of new technology, including manufacturing ERP: Manufacturing ERP can become the tool to enhance skills and resources. Providing key information to the manufacturer in real time accomplishes both major items highlighted in this article: skilled resources and innovation. Integrated and seamless manufacturing ERP is the key to driving more timely insight into the real-world issues needed to take manufacturing jobs to the next level. Cloud services are an important medium to assist with this.
  2. An uncertain future: Manufacturing jobs accounted for 16 percent of new domestic jobs in early 2012. Then economic problems in China and Europe slowed growth.Though Boeing hired between 12,000 and 15,000 employees this year and Apple brought some manufacturing jobs back to the states, “the future of domestic manufacturing is still … hazy.” Daniel Meckstroth, chief economist for the Manufacturers Alliance for Productivity and Innovation, tells Forbes.com that the “businesses who were driving investment spending, which drives manufacturing, are scaling back.”
  3. No investment in enhanced skills through education: More than 10 million manufacturing jobs are unfilled globally because of an unskilled pool of candidates.In the U.S., 67 percent of industrial companies hiring said they are having “considerable difficulty” with finding skilled workers. For the U.S. to “climb back atop the global manufacturing market,” skills education is vital. Skills of the trade for successful manufacturing jobs require brainpower and advanced technical education.
  4. Lack of aggressive innovation: Americans have a huge advantage over the rest of the world because of its advanced university system. There are 215 U.S.-based science, technology, engineering and math (STEM) programs, compared with 29 in China.

But companies aren’t using the higher education system as an R&D resource, the article notes. While China and India are investing in domestic research and innovation, the U.S. is lagging. Companies can consider leveraging technology, including manufacturing ERP, to help compensate for some of these issues.

Source: Forbes.com, February 2013

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