Archive for the ‘manufacturing’ Category

Industrial Internet of Things Offers Significant Opportunity for Growth of Digital Services, Says Accenture Report

September 23, 2014 Comments off

Industrial Internet of Things Offers Significant Opportunity for Growth of Digital Services, Says Accenture Report
Source: Accenture

The Industrial Internet of Things represents a tremendous opportunity for innovative companies looking to unlock new revenue sources by packaging their products with new digital services, says Accenture (NYSE: ACN) in its new report, “Driving Unconventional Growth through the Industrial Internet of Things.”

Combining sensor-driven computing, industrial analytics and intelligent machine applications into a single universe of connected intelligent industrial products, processes and services, the Industrial Internet of Things generates data essential for developing corporate operational efficiency strategies. However, the Accenture report finds that the Industrial Internet of Things also provides a rich opportunity to drive revenue growth through new, innovative and augmented services for a rapidly expanding marketplace.

The potential payoff is enormous. Third party sources predict that global investment in the Industrial Internet of Things is predicted to reach $500 billion by 2020: a 2,400 percent increase from the $20 billion spent in 2012. Companies that introduce automation and more flexible production techniques to manufacturing can boost productivity by as much as 30 percent, and predictive maintenance of assets can save companies up to 12 percent over scheduled repairs, can reduce overall maintenance costs by up to 30 percent and can eliminate breakdowns by 70 percent.

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Deloitte Review — Issue 15

September 11, 2014 Comments off

Deloitte Review — Issue 15
Source: Deloitte

Is the romance gone? An extensive new study suggests that Gen Y takes a more pragmatic view of car ownership. Deloitte Review issue 15 also explores analytics and predicting behavior; new players in the intellectual property arena; the economics of additive manufacturing, and the persistent problem of labor abuse in supply chains.

Automotive Value Creators Report 2014: A Comeback in the Making

August 28, 2014 Comments off

Automotive Value Creators Report 2014: A Comeback in the Making
Source: Boston Consulting Group

A Comeback in the Making is the first in a series of annual reports from The Boston Consulting Group on value creation in the automotive industry. The report analyzes the industry’s two largest sectors, original-equipment manufacturers (OEMs) and makers of automotive components that are sold either to OEMs or to end users in the aftermarket.

These two businesses are very different, with distinct dynamics, financial characteristics, typical growth rates, capital requirements, and profit margins. Nevertheless, the sectors are inextricably linked and often have in common the same challenges; a pressing one for both sectors has been finding their footing in a global economy that was rocked to its foundation in 2008. Our analysis of total shareholder return (TSR) over the past three, five, and ten years suggests that the long-awaited recovery for both OEMs and component makers is finally starting to gain traction—across countries and regions and in all subsectors.

In fact, few economic sectors have mounted a more impressive comeback from the ravages of the financial crisis than those in the automotive industry. Both OEMs and component makers delivered five-year median annual returns that were well in excess of the median return for the 26 industries tracked by BCG. OEMs produced a median annual TSR of 29 percent from 2009 through 2013, while component makers posted a median annual TSR of 33 percent. The median annual return for all industries was 21 percent. The automotive industry’s recent performance represents a striking recovery from the depths of the 2008 financial crisis, when the big three U.S. automakers alone posted nearly $75 billion in losses and unit sales plunged worldwide.

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Automobile Manufacturing Shipments and Employment Up, According to Census Bureau’s Economic Census

August 25, 2014 Comments off

Automobile Manufacturing Shipments and Employment Up, According to Census Bureau’s Economic Census
Source: U.S. Census Bureau

The total value of shipments for the automobile manufacturing industry (NAICS 336111) was $108.8 billion in 2012, up 28.4 percent from $84.7 billion in 2007, according to the latest 2012 Economic Census statistics released today by the U.S. Census Bureau. The number of employees increased 5.6 percent, from 65,436 in 2007 to 69,078 in 2012.

While shipments and employment increased, the number of establishments decreased from 188 in 2007 to 180 in 2012. The average payroll per employee decreased 6.5 percent, from $78,092 in 2007 to $73,053 in 2012.

Total value of shipments for the light truck and utility vehicle manufacturing industry (NAICS 336112) decreased 20.7 percent, from $154.0 billion in 2007 to $122.2 billion in 2012. For this industry, other highlights include:

  • The number of establishments decreased from 90 in 2007 to 77 in 2012.
  • The number of employees decreased 31.3 percent, from 84,806 in 2007 to 58,241 in 2012.
  • The average payroll per employee decreased 3.8 percent, from $81,262 in 2007 to $78,194 in 2012.

The Shifting Economics of Global Manufacturing: How Cost Competitiveness Is Changing Worldwide

August 20, 2014 Comments off

The Shifting Economics of Global Manufacturing: How Cost Competitiveness Is Changing Worldwide
Source: Boston Consulting Group

For the better part of three decades, a rough, bifurcated conception of the world has driven corporate manufacturing investment and sourcing decisions. Latin America, Eastern Europe, and most of Asia have been viewed as low-cost regions. The U.S., Western Europe, and Japan have been viewed as having high costs.

But this worldview now appears to be out of date. Years of steady change in wages, productivity, energy costs, currency values, and other factors are quietly but dramatically redrawing the map of global manufacturing cost competitiveness. The new map increasingly resembles a quilt-work pattern of low-cost economies, high-cost economies, and many that fall in between, spanning all regions.

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Missing Makers: How to Rebuild America’s Manufacturing Workforce

August 1, 2014 Comments off

Missing Makers: How to Rebuild America’s Manufacturing Workforce (PDF)
Source: Hope Street Group

The U.S. manufacturing workforce is aging rapidly, with half of the existing workforce only 10-15 years away from retirement.1 Yet, American manufacturing employers are struggling to build a pipeline of new workers. Some 600,000 positions are currently unfilled,2 and more than three million additional positions are due to open by 2020.

Meanwhile, the youth unemployment rate remains above 16%, with nearly four million 16-24 year olds looking for but unable to find work.4 Why does this gap continue to exist across many regions, and what challenges are preventing the U.S. education and workforce training systems from addressing these issues? How can manufacturing employers and workforce development practitioners most effectively invest in youth in their regions, so that more young people are aware of, interested in, and on the path to careers in manufacturing?

Hope Street Group and Alcoa Foundation set out to address these questions. In this report, we frame the systemic challenges that currently discourage able young people from entering manufacturing career tracks.

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New From the GAO

July 31, 2014 Comments off

New GAO Reports and Testimonies
Source: Government Accountability Office


1. Air Force Working Capital Fund: Actions Needed to Manage Cash Balances to Required Levels. GAO-14-480, July 31.
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2. Large Bank Holding Companies: Expectations of Government Support. GAO-14-621, July 31.
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3. Defense Health Care Reform: Actions Needed to Help Realize Potential Cost Savings from Medical Education and Training. GAO-14-630, July 31.
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4. Defense Management: DOD Needs to Improve Future Assessments of Roles and Missions. GAO-14-668, July 31.
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5. Defense Health Care: US Family Health Plan is Duplicative and Should be Eliminated. GAO-14-684, July 31.
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6. Ineffective Planning and Oversight Practices Underscore the Need for Improved Contract Management. GAO-14-694, July 30.
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7. Active and Reserve Unit Costs: DOD Report to Congress Generally Addressed the Statutory Requirements but Lacks Detail. GAO-14-711R, July 31.


1. Contract Planning and Oversight Practices Were Ineffective Given the Challenges and Risks, by William T. Woods, director, acquisition and sourcing management, before the Subcommittee on Oversight and Investigations, House Committee on Energy and Commerce. GAO-14-824T, July 31.

2. Department of Homeland Security: Continued Actions Needed to Strengthen Oversight and Coordination of Research and Development, by David C. Maurer, director, homeland security and justice, before the Subcommittee on Research and Technology and the Subcommittee on Oversight, House Committee on Science, Space, and Technology. GAO-14-813T, July 31.
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3. Aviation Manufacturing: Status of FAA’s Efforts to Improve Certification and Regulatory Consistency, by Gerald L. Dillingham, Ph.D., director, physical infrastructure issues, before the Subcommittee on Aviation Operations, Safety, and Security, Senate Committee on Commerce, Science, and Transportation. GAO-14-829T, July 31.
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4. Large Bank Holding Companies: Expectations of Government Support, by Lawrance L. Evans, Jr., Ph.D., director, financial markets and community investment, before the Subcommittee on Financial Institutions and Consumer Protection, Senate Committee on Banking, Housing and Urban Affairs. GAO-14-809T, July 31.


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