Tag Archives: Manufacturing industry

The Manufacturing Industry has Reason to be Optimistic in the New Year

manufacturing new yearThe manufacturing industry is kicking off the New Year with cautious optimism. The GDP is expected to remain within the 2 to 3 percent range with a 2.5 percent increase in 2019 and 2.6 percent industry growth. 2019 is also the ninth year of economic expansion, the second longest in U.S. history, according to William Strauss, senior economist and economic adviser for the Federal Reserve Bank of Chicago.

The pace predicted for the manufacturing industry in 2019 is somewhat faster than that of other segments in the general economy with sales and revenue expected to grow. Part of this increase can be attributed to the health of the industry and an improving competitive position for the U.S. in the global manufacturing market, according to FABTECH, an exhibiting company that showcases what’s new in metal forming, welding, finishing and fabricating.

Not surprisingly, the industry’s top priorities haven’t deviated much from those of the past five years. Industry leaders, tasked with orders from boards and shareholders, will continue to look for ways to grow sales, cut costs and address talent gaps. What is new is a greater emphasis on the use of digital technologies to improve business and a changing focus on teaming artificial intelligence (AI) and the human element of business. Leaders surveyed in KPMG’s 8th edition of the Global Manufacturing Outlook report stressed the importance of looking at AI as a partnership with human intelligence. The blend of AI and the human element will put an increased focus on the need for extensive retraining and educating workers on new roles.

Impact of AI on Workforce

64% say it will create more jobs than it eliminates

36% say it will eliminate more jobs than it creates

Building Partnerships

Such an approach will require new partnerships that extend inside and outside the industry. Manufacturers will need to continue to look for ways to build up a pipeline for new workers. This will be necessary as more Baby Boomers retire from the industry, leaving an information drain that could be difficult to replace.

Companies will also need to build and maintain strong supply chain partnerships on more than a handshake and prior contracts. KPMG stressed that with the threat of cyber security it will be more important for a business to know who they are considering a partnership with. The safety of a company’s data will only be as secure as those connected to the data throughout the supply chain. This includes the use of intrusion detection and a firewall to protect the perimeter from outside attack, secure communications through a VPN or SSL, increased securing measures using intrusion-detection software and network elements and upgraded monitoring systems.

Other Possible Obstacles to Growth

Higher inflation

More stringent immigration policies

Tariffs impacting trade protectionism

NAFTA uncertainty

Rising borrowing costs

By applying a mindset of digital and embracing the human element of business, the manufacturing industry can continue to adapt to customer needs in a changing competitor landscape.

This article is brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, automotive deburring, power transmission, powdered metals, fluid power and custom deburring applications. 

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Robots + Humans Collaborating on The Manufacturing Floor = “Cobots”

fanuc robot manufacturing

 

 

 

 

 

Throughout the manufacturing industry, the density of robots continues to rise around the world. Such technological applications help free up time for tasks requiring creativity and thought. According to the International Federation of Robotics, there is an average of 74 robot units per 10,000 employees. This includes the high end of 99 units in Europe, 84 in the Americas and 63 in Asia.

Countries by Level of Automation

Republic of Korea

Singapore

Germany

Japan

Sweden

Denmark

United States

Italy

Belgium

Taiwan

Robot Density

Since 2016, robot density continues to grow, as represented by the United States’ No. 7 rank in the countries of automation list above. Robots have been part of ongoing efforts to strengthen the American market and keep manufacturing at home. The automotive industry leads the way in the use of robots and it’s anticipated that between 2017 and 2020 the use of robots will rise 15 percent each year on average, according to a report from the International Federation of Robotics.

Manufacturing Collaboration

Despite some fears of robots replacing jobs, robots are now a common scene in many factories as robots and humans learn to co-exist. One of the ways this is happening is through Robotic Process Automation or RPA. With technological similarities to graphical user interface testing tools, RPA tools can automate interactions with the graphical user interface. RPA can also mimic the task-based processes, speeding up repetitive tasks and freeing up humans for interaction and the application of intelligence, judgement and reasoning. With the potential to fully automate routine tasks, RPA can reduce the total cost of end-to-end transactional processes by 50 percent to 75 percent, according to an RPA release from The Hackett Group, a global strategy, operations and business application consulting firm.

Collaborations on the manufacturing floor also include self-navigating Autonomous Indoor Vehicles, which shift goods between workstations without the need for magnets or beacons. This joint work between human and robot was coined “cobot” by professors from Northwestern University and is being tested at Cornell Dubilier, a power manufacturer who is using robots to speed up the inspection of capacitor installations, doubling the speed of its labeling process.

Growing Demand in RPA

The behind-the-scenes aspect of RPA translates into a variety of applications from supply chains, interactions between IT systems and repetitive business office tasks. Adoption will necessitate an increasing level of comfort for manufacturers concerning robotics and artificial intelligence’s. It remains to be seen how quickly companies will embrace these technologies, but such adoption has the potential to revolutionize the industry and the work of those employed within it.

This article is brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, automotive deburring, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today and speak with one of our experts!

 

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Great Inventions & Manufacturing Have Always Been a Part of New Jersey

new jersey manufacturing

From air conditioning to bubble wrap, New Jersey has been the land of great inventions and manufacturing, which go hand in hand, for a very long time.

When we check the stats on New Jersey manufacturing, it’s easy to understand why they’re one of the top states in the country.

21 Fortune 500 companies call New Jersey home.

Johnson & Johnson, Campbell soups, and Goya foods dominate their respective industries and are headquartered here.

The manufacturing sector contributes to 7.8 percent of the state domestic product with over 7,222 units.

The sector contributes around $28.72 billion to the state’s exports.

Accounts for 245,000 jobs. These employees represent around 6.1 percent of New Jersey’s labor force.

The total output of the state’s manufacturing industry is around $44.52 billion.

The average annual compensation of an employee is $90,540.

**Sources from Center for Manufacturing Research

The chemical industry is the largest contributor to New Jersey manufacturing. In fact, nearly 18 percent of the statewide industrial sector consists of chemical industries. The sector employs around 49,000 workers and pays salaries well above the state average. Chemicals contribute around 37 percent of New Jersey’s total manufacturing output with the chemical industry generally divided into four sub-sectors:  pharmaceutical & medicine, cleaning compounds, toiletries, and paint, coating & adhesives.

New Jersey also has a long and a rich history within the food industry. It is home to Campbell Soup, one of the world’s leading food companies. This company rose to fame after John T. Dorrance developed the first condensed soup. One of the most significant Hispanic food companies, Goya Foods, also has been a cornerstone of the state’s business community since 1974. More recently, Goya unveiled its new state-of-the-art corporate headquarters in Jersey City as part of a $250 million investment. With another 1900 companies employing around 44,000 people, the state’s food industry is worth approximately $105 billion.

For information on a deburring machine to fit your manufacturing needs or a free evaluation, contact CDMC today via contact form or call us at (216) 472-0200 to speak directly with one of our experts!

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