Advanced Manufacturing Techniques enable mid-size manufacturers in US to compete globally

Mid market manufacturing companies are using advanced manufacturing techniques to increase revenue, improve productivity and increase profit. The detailed analysis, a joint effort by the National Center for the Middle Market and the National Association of Manufacturers, shows that nearly half of the study’s respondents – 47 percent of mid-market manufacturers, are currently using advanced manufacturing techniques. The result, the study says, is that these manufacturers have experienced a 20 percent profitability increase over the last five years. These companies are most frequently leveraging automation, computer technologies, process technologies, and information technologies.

There is a perception that advanced manufacturing techniques will reduce the number of jobs through automation. But, that is not true. The industries will need more skilled workers and it could increase the number of jobs in the industries. The study done by NAM shows that Advanced manufacturing users reported a net increase in jobs over the past year of 3.4% and anticipate to further grow jobs by 4.7% over the next 12 months. With increased adoption of advanced mfg techniques,  there is a need for more skilled workers with technology knowledge.  In United states, skills gap is a challenge that companies need to overcome.

According to the report, only about 47% of mid market manufacturers use some kind of advanced manufacturing capability. It is surprising to see that only 47% of US mid market companies use advanced mfg capability. In order to compete with countries like China, and India where the labor is cheaper, I would have expected this number to be higher. But, it is good to know that the majority of middle market manufacturers expect to implement advanced manufacturing techniques in the near term. Within the next three to five years.

These days, there is a increasing demand for mid size manufacturers to bring products to the market faster and to produce high quality products at low cost. The advanced manufacturing techniques help companies to reduce cost, improve profit, increase revenue and reduce time-to-market. With implementation of ‘future factory’ capabilities, mid size manufacturing companies in US will be fully ‘equipped to compete’ globally. Discover how SAP4SME and SAP Industry solutions can help mid size manufacturing companies to compete better globally.