Manufacturing capability shortcomings

A while ago I wrote that there seemed to be the beginnings of some thinking amongst the smaller manufacturing operations I interact with about the relative value of manufacturing in high cost Australia, and retaining control of, and having the opportunity to develop, the intellectual capital involved, rather than sending manufacturing offshore in pursuit of lower costs.

I came across this article reflecting the same view, but amongst some of the biggest manufacturers in the US, and  it also reflects the beginnings of this trend.

In Australia, we have let our trade skills erode so dramatically over the last 25 years that if we do start to see some sophisticated manufacturing return to our shores, and the obvious contender is photo-voltaic cells, now almost exclusively manufactured in China with Australian technology, we may not have the technical manufacturing skills to deliver.

If this nascent trend does harden,  it will usher in a huge gap in our operational skills capability, one that will take a generation or more to fix, and most importantly to any solution, we need a recognition by federal and state politicians that we have a problem bigger than the next election cycle. The long term investment  in education and the culture changes necessary will add another big chunk of time to the reaction, possibly a generation.

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
This entry was posted in Demand chains, Management, Operations, Strategy and tagged , , , , , . Bookmark the permalink.

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