Tight Lines Advisors’ Strategic Approach to Accelerating Manufacturing Productivity Provides Pathways for Re-Shoring Trend Sustainability
Stamford, CT (PRWEB) July 24, 2017 -- Gross output of U.S. manufacturing industries — counting products produced for final use as well as those used as intermediate inputs — totaled $6.2 trillion in 2015, about 36% of U.S. gross domestic product, nearly double the output of any of the other big sectors: professional and business services, government and real estate.
Manufacturing companies also account for about 77% of what the private sector spends on research and development each year. Many industry experts suggest that if it weren’t for manufacturing; there would be considerably less innovation in the United States.
Most recently, a number of market forces have aligned to make re-shoring of overseas operations a consideration for U.S.-based manufacturers. Among the influential factors are a growing reduction in the wage gap between American and foreign labor, lower U.S. energy costs, and a greater ability to control scheduling, supply-chain and quality.
Moving to a potentially higher cost labor area can be a difficult consideration, however, “More than any other factor, what truly makes re-shoring both viable and sustainable is productivity,” states John Abplanalp, Founder and President of Tight Lines Advisors LLC, a firm that partners with manufacturing companies to improve their operational performance gross margin.
“When productivity improves, margins improve,” continues Abplanalp. “Conversely, stagnant or reduced productivity squeezes margins, adversely impacts growth, and inhibits marketplace competitiveness.”
Concern over a possible slowdown in the re-shoring trend was recently noted in a March 2017 Labor Department report indicating that the U.S. domestic workforce is not gaining productivity rapidly enough to provide for robust economic expansion that the U.S Government is projecting. Findings revealed that across the board, worker productivity fell 0.6% since January. A much bigger drop than expected, this statistic underscores the main challenge to greater economic growth.
Yet, despite the ups and downs of the economy over the decades, many companies have thrived through continuous productivity improvement. Nucor Steel is a prime example. Headquartered along the Cooper River in Huger, SC it has more than 150 facilities and $16 billion in sales last year. Nucor’s ability to thrive and succeed through challenging economic times can be found in the company’s enduring approach to identifying productivity opportunities and implementing solutions that take advantage of them. As a result, Nucor is well positioned to take advantage of an upswing in the domestic demand for steel. The company uses advanced technology to turn scrap metal into a wide range of products, including skyscraper-worthy support beams, paper-thin water heater linings, and delicate sheets that can be molded into Christmas ornaments and fishing lures.
“Nucor is a very progressive and nimble company, expanding its range of products, processes and capabilities to reach new markets,” comments Abplanalp. “Their approach to maximizing productivity is consistent and companywide, which enables them to turn cold scrap steel into product very quickly and efficiently.”
Another key factor driving Nucor’s productivity is the stability of its workforce. Workers stay one, two and three decades with the company while encouraging family and friends to join them. Good benefits and pay-for-performance bonuses inspire loyalty. A no-layoff tradition, even during the Great Recession, means the Company has been able to retain its trained workers who are ready to stoke up when demand picks up. Nucor maintains the highest margins, lowest costs, and highest paid employees, with the lowest percentage of labor costs in the steel industry. This is something that can only be achieved through exceptional productivity.
A FIVE-PHASE APPROACH TO SUSTAINABLE PRODUCTIVITY
Achieving dramatic results and measurable benefits such as the previous example demonstrates, requires a comprehensive, holistic approach to make re-shoring both viable and profitable; something the five-phase Tight Lines Performance AcceleratorSM offers. This principled strategic operating approach forges an exceptional and mutually beneficial relationship between a company and its various stakeholders.
The gross margin improvement, greater competitive positioning and sustainable value creation can lead to original equipment manufacturer (OEM) and supply chain relationships, and ultimately, success for all stakeholders. “The ability to use productivity as a way to offset dynamic market volatility, both domestic and globally, makes re-shoring a smart option for companies looking to do more, more efficiently and more profitably,” concludes Abplanalp.
ABOUT TIGHT LINES ADVISORS LLC
Tight Lines Advisors LLC is a business consultancy with values-driven operational processes for enhanced business efficiency, performance, competitive position and financial growth. The firm offers a comprehensive and principled strategic operating approach, The Performance AcceleratorSM. This holistic five-step process is an inclusive partnership process, which results in sustainable operating efficiencies and open-ended value creation. Among the industrial sectors the firm serves are plastics, injection molding, metal forming, packaging, assembly, consumer products and others. For more information on Tight Lines Advisors LLC and its services, please visit: http://www.tightlinesadvisors.com.
ABOUT JOHN ABPLANALP
John Abplanalp is the former CEO and President of Precision Valve Corporation. During his tenure there, John successfully led the transformation of the company into an effective and efficient global supply chain management system for the manufacture and assembly of more than 30 billion parts annually.
A hands-on leader, John learned from the bottom up during his 35-year career in manufacturing. He founded Tight Lines Advisors LLC to utilize his extensive experience in the manufacturing industry and assist companies in improving their operational performance.
John has served on the Executive Board of the Consumer Specialty Products Association from 2002 to 2015 and as their Chairman and Assistant Treasurer. He received his MBA from Fordham University and undergraduate degree in mechanical engineering from Manhattan College.
For more press information, please contact:
Ed Delia
Delia Associates
T: 908.534.9044
E: edelia(at)delianet(dot)com
Ed Delia, Delia Associates, +1 908-534-9044, [email protected]
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