How To Fix The Manufacturing Talent Gap February 16, 2024At a recent monthly meeting of local executives that we participate in, a recurring theme emerged: a significant loss of talent and skills in manufacturing, challenging to replace with new hires. A primary reason for this talent gap is demographic: the retirement of the Baby Boomer generation. Some sources indicate that 10,000 Baby Boomers reach retirement age daily, though not all are leaving the workforce immediately upon eligibility. Pew Research Center reports that by the end of 2021, nearly 50% of adults over 55 had retired. However, among those aged 55-64, less than 20% had chosen retirement. This specific age group is increasingly impacting manufacturers, many of whom are inadequately prepared in knowledge management to transfer these workers' 40+ years of experience to new recruits or systems. Deloitte Consulting and … [Read more...] about How To Fix The Manufacturing Talent Gap Industrial News Manufacturing and Supply Chain Publisher Page
0% Financing is Back: Is Automotive and US Manufacturing in Trouble? December 13, 2023If you’ve tried to buy a new car or truck recently, you’ve likely encountered (even with good credit) interest rates in the neighborhood of 9-10%. For someone borrowing $50K for a modestly optioned Ford F150 (including taxes, registration, and fees), current monthly payments at these rates approach $1,100 over a 60-month term. That’s in the ballpark of $250 per month more than they would be at the 0% (or .9%) financing costs! Which, of course, helps explain why car sales are slumping and why both new and used cars are piling up on dealer lots. This is only part of the picture. Major manufacturers have spent 2023 producing cars that consumers don’t actually want: namely EVs. In fact, according to Copilot, dealers had (as of November 2023) over 253 days of supply for the Ford Mustang Mach-E sitting on lots. Chevy had 221 days of supply … [Read more...] about 0% Financing is Back: Is Automotive and US Manufacturing in Trouble? Industrial News Manufacturing and Supply Chain Publisher Page
Tesla Channels Henry Ford’s Pricing (and Supply Chain) Strategies October 17, 2023 We were driving in a caravan to a friend’s dock the other day on a beautiful late-summer Midwestern day. The line of cars winding through the back coastal roads near Lake Michigan was notable not for our vehicle (a V8 truck) but for what was absent: a Tesla. All four other cars in our group were Tesla Model Xs, all of which had been purchased in recent months by friends who previously drove a mix of fully loaded GMCs, Suburbans, Expeditions, and other similar vehicles. This proves that Tesla’s ingenious pricing strategy is working. On January 1 of this year, a Tesla Model X (the three-row SUV) cost $120,990. The exact same car in September was priced at $79,990. Comparable gas or electric top-end large SUVs from Ford, GM, BMW, Mercedes, and others still cost $100K and up. That's a roughly 34% price drop, for those keeping score. … [Read more...] about Tesla Channels Henry Ford’s Pricing (and Supply Chain) Strategies Manufacturing and Supply Chain Publisher Page
How Manufacturing is Saving Vaccine Production in the United States May 10, 2021 What do manufacturing facilities have to do with vaccine production and distribution? Expanding the coverage of vaccines globally is a critical goal, and expanding vaccine production simply wouldn't be possible without the help of manufacturing facilities. Let's take a look at key ways in which manufacturing is contributing to vaccine production and distribution in the United States. Onshoring Effects on Vaccine Production and Distribution The COVID-19 crisis has put a spotlight on the need to begin onshoring drug manufacturing back in the United States. The pandemic has played a large role in alerting Americans to the importance of shifting away from heavy dependence on other countries like India and China for active pharmaceutical ingredients (APIs), medical devices, and finished pharmaceutical products. With COVID-19 … [Read more...] about How Manufacturing is Saving Vaccine Production in the United States Industrial News Manufacturing and Supply Chain
Private Equity in 2020: Time to Sell/Partner For Manufacturers?By Jason Busch and Lisa Reisman July 20, 2020Private equity (PE) firms are some of the most likely buyers of manufacturers. Known as “financial buyers” rather than “strategic buyers” – e.g., another industrial firm or peer looking to expand its business – these organizations leverage a combination of their own cash and debt to fund their acquisitions. While private equity got a bad name in the 1980s during the heyday of the “leveraged buyout” or LBO market, today’s firms, especially those investing in manufacturers, look quite different. Granted, while they will still borrow 50% or more of the cost to fund many transactions, usually guaranteed against the cash flow of the business, many have truly become operators in terms of rolling up their sleeves with management to drive growth, creating operating efficiencies (often in procurement and supply chain) and driving the overall … [Read more...] about Private Equity in 2020: Time to Sell/Partner For Manufacturers? Industrial News Manufacturing and Supply Chain