Tag Archives: Global Manufacturing

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.

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Manufacturing in Canada is A Substantial Contributor to Their GDP

manufacturing in Canada

Canada has a very important manufacturing industry and is among the wealthiest nations in the world with a purchasing power of $1.75 trillion and a nominal GDP of $1.6 trillion, ranking it the 10th largest GDP in 2016. Canada is also known to be one of the countries with a highest economic freedom index. The Canadian economy, as the economy of most developed countries, is dominated by the tertiary sector, where about three-quarters of Canadians are employed.

Today, manufactured products account for 11 percent of the Canadian GDP. It is the second largest economic sector after real estate.  In Canada, manufacturing is a well-paying and high-skilled sector that pays about 1.85 billion dollars weekly to Canadians, which is more than any other sector in the country. It benefits about 1.7 million Canadian workers through full-time jobs and it also impacts about 3 million indirect jobs. Canadian manufactured products represented 61% of total merchandises exported by Canada.

Autos and Aircraft

The top manufacturing sector by sales in Canada is transportation equipment which generates $112.6 billion annually. Canada is home to major automobile makers from the United States, Japan and different Canadian firms such as Magna International and Linamar Corporation. However, Canada produces much more than just cars and motorcycles. They also provide a significant amount of jets.  For example, Bombardier Inc. is a Canadian multinational aerospace and transportation company and the third largest manufacturer of commercial aircraft in the world.

Food Processing

The second most important manufacturing industry is food processing which sold more than $107.1 billion each year since 2014. Companies such as Beaver Buzz (energy drinks and teas), Just Us! Coffee Roasters Co-op (Coffee), DavidsTea (teas) represent the largest companies in this sector. The US is the largest purchaser of Canadian food products buying more than half of all food exports. Their stricter regulations of GMOs-free and organic specialty foods have made them a primary producer for the US health food market.

Energy

Petroleum and natural gas products are responsible for generating 83.1 billion of the Canadian economy. In fact, Canada has the third-largest oil reserves in the world and is the fifth largest oil producer. There are about a dozen of oil companies in Canada and among the most important are Imperial Oil, Shell Canada, and Suncor Energy. Guess who buys the majority of Canadian petroleum and petroleum product exports? The US, of course. In fact, Canada is the largest source of US petroleum imports.

The key to understanding the prosperous Canadian economy is the development of the manufacturing industry. Canada has been focused on having one of the most educated labor forces, which is an important basis to sustain the development of the economy and the welfare of the population. With a well-developed infrastructure since the 1960’s, Canadian industry has thrived. The investment and growth of this sector have allowed the promotion of technology and other public projects further fueling wealth and stability.

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Manufacturing Growth in France Could Propel it to Number 3 in The World

French Manufacturing

France is the fourth largest industrial manufacturer in the world. Twenty percent of their GDP comes from industrial manufacturing, and their success shows no sign of slowing. With an annual growth rate of 0.5%, manufacturing serves as a primary source of income and an essential piece of the economy. As the tenth largest economy in the world, Frances boasts a $2,699 trillion GDP and a 1.1% GDP real growth (2016).

One of the keys to French manufacturing success is the diversity of products they produce. With their strength in technological innovation and knowledge, they can produce goods in almost any industry:  food products, chemicals and pharmaceuticals, textiles, vehicles, metallurgy, and machinery. Today, we talk about French industries with the most significant contributions to their global standing.

Gourmet Food and Wine

The French have always been famous for their food, but maybe you didn’t know about their food and beverage manufacturing and exports. They produce and export gourmet and artisan cheeses (as the second largest producer after the US), wines (as the second biggest producer after Italy), meats, and bread.

This industry plays a major role in the economy by employing more than 500,000 French workers across more than 11,000 companies. The beverage sector alone contributes more than 11 billion euros in annual revenue. Such products are particularly beneficial because they add value to local agriculture while strengthening trade agreements. Nearly 30 percent of all food and beverage exports are sent outside of the EU, particularly to Asia and North America. Trade agreements continue to open a variety of other relationship possibilities.

Chemicals and Pharmaceuticals

France’s Chemicals and Pharmaceuticals industry occupies sixth place in the world. Their production of basic, specialty, and fine chemicals earn the country prestige only behind China, the US, Japan, Germany, and South Korea. Specifically, France is THE world leader in cosmetics and perfumes.

While they export these chemicals primarily within the EU, they also export to parts of Asia. Nearly 3,500 chemical and pharmaceutical companies employ over 156,000 people to produce around $110 billion Euros in revenue. These sales alone speak for the significance in the French economy.

 Automotive Investment

France produces an average of 4 million vehicles each year. This places them as the 5th largest automotive producer in the EU. However, their innovation is the industry is well-known and highly regarded.

To the same end, the sector is a magnet for foreign investment which makes it a priority industry for the French government. In recent years, they have redirected policies to aid the development of auto manufacturing while benefiting both local and foreign investors.

This year, France continued to maintain their PMI above 50, which firmly places manufacturing as a primary element of their economy. In addition, the data shows a steady rise in production volume, exports, and employment growth. While France currently sits in a strong global manufacturing position, all indicators point to their continuing ability to flourish with innovative technology, skilled workers, and diverse products. With all market trends pointing up, they may be headed to the top three soon.

This article 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 for a deburring machine that’s right for you.

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