national study released June 11th by the American Small Manufacturers Coalition (ASMC) identifies critical threats to the ability of U.S. manufacturers to compete and win in a fast-changing 21st century global economy.
      More than 2,500 manufacturing firms across the nation participated in the Next Generation Manufacturing Study, a research effort coordinated by ASMC and member Manufacturing Extension Partnership (MEP) centers. The study is the first step in a long-term effort to help U.S. manufacturers survive the recession and renew America's manufacturing leadership over the next decade.
      Next Generation Manufacturing refers to a framework of six strategies essential for global competitiveness today and in the future. The strategies are customer-focused innovation, systemic continuous improvement, advanced talent management, global engagement, extended enterprise management and sustainable products and processes. The study included a 61-question Web-based survey that asked manufacturers to rank their progress in these areas.
      "The results are a wakeup call," said Michael Klonsinski, ASMC board chair and executive director of the Wisconsin MEP. "The consequences of inaction could trigger even more job losses in manufacturing and ultimately a lower standard of living for all Americans."
      Among the key findings:
      • A serious gap exists between the strategies U.S. manufacturers believe are critical to their future success and their actual progress in implementing those strategies. More than a quarter of American manufacturers – representing more than 90,000 firms – are at risk because they are not at or near world-class performance levels in any of the next generation strategies.
      • Small and mid-sized manufacturers are less likely than larger firms to be at or near world-class status in each of the next generation strategies. One third of respondents with less than US$10 million in annual revenue are not at or near world-class in any strategy, in contrast to 14 percent of respondents with more than $100 million in revenue. In a country where 282,000 small and mid-sized firms comprise the backbone of the industry, this is a significant threat to U.S. competitiveness and the viability of these companies.
      • Green/Sustainability ranks low among the strategic priorities of U.S. manufacturers despite increasing government regulation, growing consumer demand and new requirements from large manufacturers in their supply chains. Only 16 percent of respondents rank green/sustainability as highly important to their success over the next five years. Another 16 percent said it was not important.
      • Only 28 percent of respondents believe global engagement is highly important despite a near-term future in which markets, talent, competitors and partner opportunities are growing faster outside the U.S. than within its borders.
      • Leadership loss represents a significant threat – or opportunity. One quarter of respondents say a planned leadership succession will occur within the next five years – potentially impacting 80,000 U.S. manufacturing firms. Another 29 percent think a succession may occur.
      • Measurement systems are inadequately deployed. Even in one of the most fundamental and easiest-to-measure areas – process improvement – 46 percent of the respondents had no or only ad hoc measurement systems.
      • Effective partnerships with employees, suppliers and regional support organizations are the exception rather than the norm. For example, the majority of respondents engage less than half of their employees in improvement initiatives, falling short of industry best practices that require company-wide participation.
      For more information on the study, visit www.smallmanufacturers.org.       Manufacturing employs 13 million Americans and drives job growth in supporting industries. Manufactured goods represent two-thirds of U.S. exports and drive more net wealth creation than any other sector. Yet even before the recession, the nation's manufacturers were facing intense international competition and a host of other challenges.
      "The solution is not to shift away from manufacturing, but to transform our manufacturing base into a faster, more flexible industry capable of capturing global market share," said Klonsinski. "The good news is that many manufacturers are already adopting next generation strategies and becoming stronger, more profitable firms as a result. The challenges we're facing are real but not insurmountable."
      "Manufacturers that focus on achieving world-class status in Next Generation Manufacturing strategies are leaving their competitors behind," said John Brandt, CEO of the Ohio-based Manufacturing Performance Institute (MPI), a global research firm that conducted the study. "They manage differently, implement best practices at far higher rates and outperform their non-world-class peers on a wide array of operational and financial metrics."
      The study results provide a wealth of data for manufacturers, business leaders and state and national policymakers. Manufacturers can see how they rank against performance benchmarks and target improvements where needed. Knowing where the critical needs are, policymakers can strengthen and improve programs and services supporting manufacturers, said Klonsinski.