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Rob Spiegel
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Efficiency brings manufacturing home
Rob Spiegel   6/28/2013 8:59:23 AM
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Nice artic.le, Cabe. Your final point is an interesting one. Improvements in manufacturing efficiency can help North American manufactueres beat Asian manufacturers at overall cost.

NadineJ
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Platinum
Re: Efficiency brings manufacturing home
NadineJ   6/28/2013 9:48:56 AM
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This is good for the 'Made in USA' movement, which is small to medium manufacturing.

Manufacturing in most of Asia, SE Asia, Eastern Europe and Africa is on a massive scale.  At a certain point, the volume dictates the pricing.  It's the different in producing tens of thousands vs tens of millions per week.

How can this help North America "beat" Asian manufacturing?  At this point, manufacturing in different parts of the world is really worlds apart.  Small-medium, niche, even handcrafted items can be made in N.A and Europe but the cost is high.  I can see this helping bring the cost down for the smaller markets.  How do you see it used in larger scale production?

TJ McDermott
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Blogger
Re: Efficiency brings manufacturing home
TJ McDermott   6/28/2013 10:24:10 AM
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We went from a manufacturing economy to a service economy.  When even the services went offshore (calling a tech support line connects you to some place on the opposite side of the Pacific Ocean), things had to change.

I'm glad to see this swing back the other way.

NadineJ
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Platinum
Re: Efficiency brings manufacturing home
NadineJ   6/29/2013 4:00:31 PM
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You're right TJ.  Seeing more real manufacturing in North America would help the economy. 

We're not just moving to a service economy (aka the 99%).  Simultaneously, we have an idea economy (aka the 1%).  The income disparity hurts everyone. 

In my opinion, true innovation comes from working with your hands.  Successful economies involve exchanging tangible things, not just ideas, not just experiences.

Greg M. Jung
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Platinum
Re: Efficiency brings manufacturing home
Greg M. Jung   6/29/2013 7:47:31 PM
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I like the comment about how this strategy can be especially effective for smaller markets.  Competing against Asian manufacturers can frequently be done if the product is high mix/low volume.  Sounds like this company also offers a lot different value options for their customers (turnkey design and production services).

notarboca
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Gold
Re: Efficiency brings manufacturing home
notarboca   6/30/2013 2:25:00 AM
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I see a great deal of value in this company's offering, especially their quick turnaround as well as expertise in electronic/mechanical advice.

jmiller
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Platinum
Re: Efficiency brings manufacturing home
jmiller   6/30/2013 6:38:51 PM
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I hope that people in higher ups will appreciate all of the advantages that come from getting parts made here in the states.  Often the cost per part might be a little higher and thus the choice is made to go to China.  However, it's all of  those other little advantages that add up to make the total cost less.   Quality and avoiding service calls can add up in a hurry.  But for some reason people don't see that sometimes.  It can be very frustrating.

Rob Spiegel
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Blogger
Re: Efficiency brings manufacturing home
Rob Spiegel   7/2/2013 2:49:34 PM
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Nadine, manufacturing has already come back to North America. A.T. Kearney's 2013 Foreign Direct Investment Confidence Index (FDICI) put U.S. manufacturing back above China as the largest manufacturing region. Higher wages in Asia and shipping costs are drawing manufacturers closer to the makets they serve. For one, the manufacturing that went to Asia tended to be low cost, low mix. The big complicated manufacturing from indiustrial equipment to cars remains near its market -- a great deal of it here. Add to that military and medical -- which isn't leaving North America -- and the U.S. is still a manufacturing powerhouse.

NadineJ
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Platinum
Re: Efficiency brings manufacturing home
NadineJ   7/2/2013 5:23:42 PM
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Rob-I've only seen small to medium manufacturing capacities thriving in the US.  The massive scales that China has succeeded with are moving to SE Asia, Africa and Eastern Europe. 

I see that investment is up but I don't see that mass-production is up.

Do you have examples of companies that produce on a massive (1 million+ units per month) scale in the US?

Nancy Golden
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Platinum
Re: Efficiency brings manufacturing home
Nancy Golden   6/30/2013 4:15:40 PM
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Sounds like the "good ole days" and makes sense especially for smaller volumes. My friend works for distributors that buy from China in large volumes and the stories I get to hear about communication issues and lack of QC makes one wonder why companies go overseas - but it boils down to cost. If Twisted Traces can increase efficiency to drive down cost and make their products competitive that would be a great trend for others to follow! Consumer expectation is so low - wouldn't it be great if we could revert back to quality made in U.S.A. products that are built to function well and last?!

Rob Spiegel
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Blogger
Re: Efficiency brings manufacturing home
Rob Spiegel   7/8/2013 10:46:36 AM
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Nancy, I think in a lot of cases, the downside of outsourcing has caught up with companies and is now threatening the idea of cost savings. There are a range of costs tied up in quality issues.

rrietz
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Iron
Re: Efficiency brings manufacturing home
rrietz   7/1/2013 10:44:12 AM
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Not only are manufacturing efficiencies allowing re-shoring, but labor costs are rising off-shore.  Shipping costs can go down if transoceanic travel is reduced.  The point about the risk of loss of intellectual property is also a part of the equation.  Buy local, think global.

etmax
User Rank
Gold
Re: Efficiency brings manufacturing home
etmax   7/2/2013 10:18:30 AM
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I think we need to pray for higher gas prices. I worked for a US company that manufactured part of the equipment in Mexico and then sent it to Singapore for final assembly then sent it back to the US for wholesale to OEM's. That can only happen when shipping costs are ridiculously low. A similar argument could given for the cost of phone calls, if phone calls weren't so cheap you wouldn't have so many calls at dinner time wanting to sell you something and all of the help lines wouldn't be staffed overseas.

The other option is that we finally become patriotic and demand locally manufactered goods and don't buy cheap imports.


If we don't follow one of these 2 paths we really have exactly the economy that we want.

Rob Spiegel
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Blogger
Re: Efficiency brings manufacturing home
Rob Spiegel   7/9/2013 2:49:34 PM
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Rrietz, you're right about the compounded number of reasons for re-shoring. What I'm seeing is not so much re-shoring as proper-shoring. This is, manufacturing is relocating near its end market. So some of the U.S. manufacturing that began in America and migrated to Asia is moving to Eastern Europe to serve Europe. Some is moving from Asia to Mexico to serve the U.S.

AnandY
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Gold
Prototyping
AnandY   7/1/2013 7:38:40 AM
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Prototype of the PCB is manufactured for the stable design, because inherent design faults become obvious in a prototype. In such a case, these faults need to be addressed and the prototype needs to be remade. It's very important that you get quick prototyping services from PCB manufacturing firm to lauch the product to the market faster. Delay at the prototyping stage wil push the deadlines forward.

etmax
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Gold
Re: Prototyping
etmax   7/2/2013 10:22:09 AM
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Very true, we used to get local PCB's in 2 days if we wanted them, now the fastest is 5 days because of foreign shipping. I used to specify locally made PCB's from our supplier (they also had foreign made) but because we were one of very few that demanded it they shut down their local production and 100 years expertise was retrenched.

William K.
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Platinum
"Twisted Traces???"
William K.   7/1/2013 7:42:04 PM
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This sounds like a good start on a trend that should be rewarding in many ways. And it sounds like they are intent on being a full service board house, which can be the best way to gain customers. I wish them success.

William K.
User Rank
Platinum
"Twisted Traces???"
William K.   7/1/2013 7:42:27 PM
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This sounds like a good start on a trend that should be rewarding in many ways. And it sounds like they are intent on being a full service board house, which can be the best way to gain customers. I wish them success.



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