Module 15B: Small, Smart, and Agile: Manufacturing in the 21st Century

Magical formula Innovative Small Smart Agile

Global Context Friedman was right

Global Context “A differentiated and memorable customer experience.”

Global Context Customized products – iTunes Negotiated prices – Not Y Flexible places – iPod, iPhone, iPad Targeted promotion – “hulu effect”

Global Context Structural break

Recognize these? P&G (1837) GE (1873) IBM (1896) GM (1908) United Technologies (late 1920s) Allstate (1931) HP (1939) Federal Express (1973)

Do’s and Don’ts Do’s – Recognize – Simplify – Rethink Don’ts – Keep on keeping on – Only an axe

Manufacturing 2012 Twain was right

Manufacturing 2012 Not your grandfather’s industry – growth and jobs growth and jobs World's largest manufacturing economy, – US: 21% – China: 15% – Japan: 12% 11.7% GDP

Manufacturing million US jobs – one in six private sector jobs Avg $77,186 annually (pay and benefits) – average non-manufacturing = $56,436 annually. 5 66% of all R&D in the nation Would be the 8th largest economy

Manufacturing 2012 Twain was right Why he was right

Tide is turning High investments and productivity (?) Policy changes Structural costs Costs abroad

Manufacturing 2012 Twain was right Why he was right Barbell

Start-ups Mega-corps