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Strategic Issues facing the Manufacturing Sector

Sunday 3 February 2013

The TASPI Strategic Planning model has four phases which cover ten elements. At the Strategic level phase organisations (and individuals) need to identify the barriers or challenges that require their attention and then allocate resources accordingly. For the Manufacturing sector the shifting state of play has moved on from outsourcing to lower (labour) cost areas and now the main issue is the rise of low cost competitors. This process is a natural state of play where in the initial phase of outsourcing production leads to increased skills within the overseas country. Which then leads

to the increased ability of the overseas country to being making products not on behalf of a manufacturer, but on behalf of themselves. The sales strategy is quite simple - if we are making a product on behalf of a manufacturer, when we begin to make our own similar products, target the country where the original manufacturer makes their sales.

This is a 'learn & conquer' approach. The outsourcing model used by (in particular) large manufacturing firms has by default, created the very competitors who are now undermining and surpassing the very entities that spawned them.

And now we are seeing a new model emerging that Manufacturers around the world will need to be aware of for it has the potential to fundamentally alter the manufacturing landscape. Over at Looking Up Feeling Good, Futurist Marcus Barber has penned some ideas covering this shifting state of play and considers the strong signals of change that 3D In-Home manufacturing and Crowdsourcing present to the incumbent manufacturers. Take a read of 'The Future Of Manufacturing is Upon Us'

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