North Jefferson News, Gardendale, AL

Community News Network

December 12, 2012

6 things to know about the future of manufacturing

(Continued)

Moreover, more than one-third of manufacturing sector employees work in service-type jobs, such as design, marketing and office support. In globally traded high-tech industries such as semiconductor manufacturing, the number is more than half. If all the service jobs created by manufacturing outsourcing are counted, manufacturing employs more service workers in the United States (9 million) than production workers (7 million). Meanwhile, some service industries are beginning to resemble manufacturing in the way they compete globally and contribute to exports.

4. Manufacturing is diverse

A full understanding of manufacturing means knowing the subsectors. Manufacturing is not monolithic, and one-size-fits-all approaches -- by manufacturing leaders and by nations -- are not likely to succeed. We break manufacturing into five broad categories based on how labor, capital or research and development (R&D) intensive they are, and how dependent they are on low-cost transportation or high-skill talent. The five categories vary considerably in sources of competitive advantage and necessary conditions for success.

The largest group, which accounts for 34 percent of manufacturing value added, we call "global innovation for local markets." It consists of industries, such as automotive and pharmaceutical manufacturing, in which companies compete by introducing a steady stream of new products, features, and models, but also must operate in or near end markets, often because of governmental regulations (e.g., drug safety standards).

The next biggest group, "regional processing," is closely tied to local markets. Food companies, for example, need to cater to local tastes and ensure freshness. Only two of the groups are heavily traded: "labor-intensive tradeables" (apparel and toys, for example) and "global technologies," which includes electronics, a high-tech industry that relies on low-cost assembly. The difference in subsector performance can be stunning. Advanced economies, for example, run a surplus of $726 billion in goods from the "global innovation for local markets" group and a $342 billion deficit in "labor-intensive tradeables."

Text Only
Community News Network
  • Dangerous Darkies Logo.png Redskins not the only nickname to cause a stir

    Daniel Snyder has come under fire for refusing to change the mascot of his NFL team, the Washington Redskins. The Redskins, however, are far from being the only controversial mascot in sports history.  Here is a sampling of athletic teams from all areas of the sports world that were outside the norm.

    July 28, 2014 3 Photos

  • 'Rebel' mascot rising from the dead

    Students and alumni from a Richmond, Va.-area high school are seeking to revive the school's historic mascot, a Confederate soldier known as the "Rebel Man," spurring debate about the appropriateness of public school connections to the Civil War and its icons.

    July 28, 2014

  • Fast food comes to standstill in China

    The shortage of meat is the result of China's latest food scandal, in which a Shanghai supplier allegedly tackled the problem of expired meat by putting it in new packaging and shipping it to fast-food restaurants around the country

    July 28, 2014

  • wd saturday tobias .jpg Stranger’s generosity stuns Ohio veteran

    Vietnam War veteran David A. Tobias was overwhelmed recently when a fellow customer at an OfficeMax store near Ashtabula, Ohio paid for a computer he was purchasing.

    July 28, 2014 1 Photo

  • Screen Shot 2014-07-28 at 1.33.11 PM.png VIDEO: High-dive accident caught on tape

    A woman at a water park in Idaho leaped off a 22-foot high dive platform, then tried to pull herself back up with frightening results. Fortunately, she escaped with only a cut to her finger.

    July 28, 2014 1 Photo

  • CATS-DOGS281.jpg Where cats are more popular than dogs in the U.S.-and all over the world

    We all know there are only two types of people in the world: cat people and dog people. But data from market research firm Euromonitor suggest that these differences extend beyond individual preferences and to the realm of geopolitics: it turns out there are cat countries and dog countries, too.

    July 28, 2014 1 Photo

  • How spy agencies keep their 'toys' from law enforcement

    A little over a decade ago, federal prosecutors used keystroke logging software to steal the encryption password of an alleged New Jersey mobster, Nicodemo Scarfo Jr., so they could get evidence from his computer to be used at his trial.

    July 25, 2014

  • Russia's war on McDonald's takes aim at the Filet-o-Fish

    Russia said earlier this week that it had no intention of answering Western sanctions by making it harder for Western companies to conduct business in Russia.
    But all bets are off, apparently, when you threaten the Russian waistline.

    July 25, 2014

  • cleaning supplies Don't judge mothers with messy homes

    I was building shelves in my garage when a neighbor girl, one of my 4-year-old daughter's friends, approached me and said, "I just saw in your house. It's pretty dirty. Norah's mommy needs to clean more."

    July 25, 2014 1 Photo

  • Arizona's prolonged lethal injection is fourth in U.S. this year

    Arizona's execution of double-murderer Joseph Wood marked the fourth time this year that a state failed to dispatch a convict efficiently, according to the Constitution Project, a bipartisan legal group.3

    July 24, 2014