Industry Trends & Analysis

In a guest editorial, CEO and author Steven L. Blue argues that "Smart manufacturing should start with people, not machines" and that companies should "start by building a workforce that is engaged, enlightened, and empowered. A workforce that trusts in its leadership."

Could it really happen? An unnamed source tells Nikkei Asian Review that iPhone maker Apple has asked two Taiwan-based iPhone assemblers, Foxconn and Pegatron, to examine the feasability of manufacturing the devices in the U.S.

Reuters reports that America's manufacturers are urging President-elect Donald Trump to back off from his most threatening trade rhetoric and pursue a more nuanced approach to trade with China and Mexico, avoiding unilateral tariff actions and focusing on negotiations. Corporate lobbying groups, some chief executives and pro-trade lawmakers also say they eventually even hope to persuade Trump that free-trade agreements can help grow the U.S. economy and create jobs.

Deloitte Touche Tohmatsu Ltd. and the Council on Competitiveness have released their 2016 Global Manufacturing Competitiveness Index. In it, CEO survey respondents were asked to rank nations in terms of current and future manufacturing competitiveness. Top performing nations have each demonstrated strengths across multiple drivers of manufacturing excellence. They also clearly illustrate the close tie that exists between manufacturing competitiveness and innovation. The 2016 study takes a closer look at six focus nations: United States, China, Japan, Germany, South Korea, and India.

There was plenty to see, eat, drink, learn and hear at the United States Cutting Tool Institute's (www.uscti.com) 2016 Fall Meeting, held Oct. 15-17 at the Omni Royal hotel in New Orleans, writes Cutting Tool Engineering Publisher Don Nelson. "As a former resident of Louisiana, I already knew the best places in the Crescent City to sightsee (Lower Garden District), eat (any po'boy stand) and imbibe (Napoleon House)."

People in the industry continue to proactively do something about overcoming the skills gap, and I'd like to highlight two such efforts.

The Kentucky Federation for Advanced Manufacturing Education (KY FAME) is a partnership of regional manufacturers and local educational institutions working to implement dualtrack, apprenticeship-style training with the goal of creating a pipeline of highly skilled workers, according to the organization's website. To help get the word out about the program, KY FAME recently produced a video to introduce itself.

With rising salaries, labor unrest, environmental devastation and intellectual property theft, China is no longer an attractive place for Western companies to move their manufacturing, writes Vivek Wadhwa. "Technology has also eliminated the labor cost advantage. [China] built its dominance in manufacturing by offering massive subsidies, cheap labor, and lax regulations. With technologies such as robotics and 3D printing, it has no edge."

Los Angeles Times reports: Factories south of the border are fueled by American goods and services—creating a silver lining for at least some workers in the U.S.

At Forbes, commentary by Adam Smith Institute Fellow Tim Worstall: "There seems to be some idea that making things in huge sheds is a well paid occupation – it isn't. Or that making things is hugely profitable for a company – it isn't. And if it isn't either of those things then nor is it hugely important to an economy."