In our day jobs, we analyze, build and invest in technologies that leverage AI and machine learning to do things such as optimizing procurement cost savings strategies based on an underlying price forecast for a particular grade of metal. This can tell manufacturers when to lock into long-term agreements with a supplier, when to float the underlying material price via an index, when to buy on the spot market, etc. We’ve found AI (especially neural networks for price prediction) to be a pretty exceptional tool in our technology crib for building solutions which enable manufacturers to do things they could not previously accomplish with the same degree of efficiency, speed and consistency — not to mention delivering a superior outcome. Moreover, in one of the companies we run, we estimate that we are doing the work of at least twice the … [Read more...] about Should You Trust AI in Manufacturing?
Industry News
Tracking the Manufacturing Slowdown
Recent economic manufacturing data suggests a US economy in a downturn (and likely, overall, in recession). In March, ISM’s Manufacturing Index declined for the fifth month in a row (after growing for 28 months before the decline commenced at the end of 2022), at a level signifying material economic contraction and a likely recession. Overall, every single sub-index comprising the overall ISM Manufacturing PMI contracted for the first time since May of 2009. In its latest report, ISM suggests that the PMI stood “at its lowest level since May 2020, when it registered 43.5 percent.” Particularly bearish in the report was the “New Orders” sub-index which “remained in contraction territory at 44.3 percent, 2.7 percentage points lower than the figure of 47 percent recorded in February.” According to ISM and Reuters, buyer anecdotes are … [Read more...] about Tracking the Manufacturing Slowdown
The Future of Productivity and Growth in U.S. Manufacturing
With many technological advancements and changes happening in the manufacturing industry, it can be hard to keep up. To put it simply, the future of manufacturing looks very promising. In fact, more than 670,000 manufacturing jobs have been added since 2021, according to Spectrum News. So, what does the future of productivity and growth in United States manufacturing look like? Let’s answer some looming questions about the manufacturing industry. How Is Manufacturing Changing? In recent decades, the United States seemed to be in danger of losing its position as a world-leading manufacturing economy. This can be contributed to design services and software activities rather than actual physical production. However, there are some recent trends that point to the potential for a growth resurgence. Today, manufacturing in the United … [Read more...] about The Future of Productivity and Growth in U.S. Manufacturing
Manufacturing Trends & New Technology in 2022
It was over 200 years ago that the world went through the first industrial revolution where work transitioned primarily from manual labor performed by people to the use of machine tools and steam powered engines. Since then, we have gone three more industrial revolutions: The early 20th century steel and electricity, Late 1950’s computerized machinery technology, and finally where we are today, the fourth industrial revolution known as the internet of things (IoT) revolution, or industry 4.0. But where do we go from here? What does the rest of this decade look like in the manufacturing and industrial machinery world? Internet of Things (IoT) The biggest trend right now in the manufacturing world is coming from the internet of things (IoT). Manufacturers are adding more connectivity within their machines than ever … [Read more...] about Manufacturing Trends & New Technology in 2022
Manufacturing and COVID-19: A Survival Guide
COVID-19 is the economic Black Swan event of the year (if not the decade) that no one expected. But how the US government responds to it from a policy standpoint will have as great an impact on the health of domestic manufacturing as the responses businesses take. For both policy makers and executives, navigating these volatile and uncertain times may be a week-to-week challenge; or it could last months or quarters. No one knows yet. In this month’s Publisher’s Page, we first share some of the highlights that NAM (National Association of Manufacturers) provided in a recent policy statement on COVID-19. Then we provide our own tips which we are advising our manufacturing clients on in terms of managing uncertainty and volatility in their own businesses. NAM divides their policy and business recommendations into five groups. The … [Read more...] about Manufacturing and COVID-19: A Survival Guide
