Business Development, Marketing for Manufacturers, Your Web Site
Hey Manufacturers – Watch Seth Godin On Tribes To Market Your Business Better
I’m not one to latch onto or spread parlor tricks – the usually have no legs, have little nutritional value to manufacturing businesses and they distract us from the real work to be done.
To many of you, this presentation from Seth at this year’s TED conference may seem like mumbo-jumbo, pie-in-the-sky nonsense. But manufacturing businesses trying to make sense of the Web, that have taken to Twitter because they thought they had to or that can’t see the value of marketing via social & emerging media these days such listen. And listen closely.
All of us belong to ‘tribes.’ So do you. It’s nothing new – ‘birds of a feather,’ and all. But what the Web has done is allowed us to coagulate into clusters of specific, shared interests. And your efforts to market these days are supposed to help. It’s where value is for people who want to learn more about you and do business with you.
Take the 20 minutes to watch this. It will help you.
Hat Tip: @BusinessTalk
Business Development, MFG.com, Manufacturing Economy, Marketing for Manufacturers
MFGWatch Survey: Supply Chain Risks, Backshoring Rise; Small Manufacturers Add Jobs, Large Manufacturers Cut
MFG.com has conducted the latest MFGWatch survey of North American manufacturers (select this link for the complete survey results and a downloadable PDF). The survey focused on their activities in the second quarter of 2010, and on their expectations for the third quarter.
Highlights of this most recent survey include a significant rise in the number of large North American manufacturers that have seen significant supply chain risks in the second quarter and a rise in the number of buyer manufacturers that are planning to investigate backshoring of production back from low-cost countries. Also of note, while larger manufacturers in the region have indicated they’ve shed jobs since April small supplier manufacturers say they’ve added jobs during the same period.
Asked of BUYERS (Large North American Manufacturers)
How has/will your company adjust staff?
Analysis: North American Buyers in Q2 ‘10, appear to have reverted to the employment activity numbers of Q3 ‘09, with 23% indicating they’ve decreased staff at their companies (compared to just 10% in Q1). The number of these companies that increased staff in Q2 fell to 20% from 27% in Q1.
In the past 3 months, has your company experienced a significant supply chain disruption that caused you to investigate or select new suppliers?
Analysis: For the third quarter in a row, many more Large Manufacturers in North America have experienced a significant supply chain disruption and sought relief from new suppliers. In Q2 ‘10, over half (51%) stated they’ve experience significant disruptions, up from 44% in Q1 ‘10.
In the past 3 months, has your company returned any portion of its production into or closer to North America from a low-cost country?
Analysis: A significantly larger number of Large Manufacturers in North America have either repatriated production, or moved production closer to North America. For Q2 ‘10, 21% indicated a contraction of their supply chain, nearly double the number (12%) from Q1 ‘10. While this may appear to bode well for many American manufacturing suppliers and small manufacturers, much more activity must take place for meaningful economic or employment improvements to be seen.
In the next 3 months, will your company be researching bringing any portion of its production into or closer to North America from a low-cost country?
Analysis: North American OEMs & Large Manufacturers say that they expect to research bringing production closer to North America in the coming months. A formidable 38% of those surveyed say they will begin investigating near-shore options for production currently placed in low-cost countries (up from 31% in Q1 ‘10).
Asked of SUPPLIERS (Small/Medium North American Manufacturers)
How has/will your company adjust staff?
Analysis: While large manufacturers appear to be shedding jobs, Small/Medium Manufacturers show improvement in employment with 29% indicating they’ve hired for their businesses. For the third quarter in a row, this number has trended up (from 10% in Q4 ‘09 and 23% in Q1 ‘10). One likely explanation for suppliers’ upward trend (compared to more job losses with larger manufacturers) is outsourcing of production to smaller manufacturers.
In the past 3 months has your company received queries or actual work from companies suffering from supply chain disruptions and in need of immediate assistance?
Analysis: North American Suppliers have seen increased activity from buyers that are suffering from supply chain disruptions. A full 42% responded that they’ve received queries/work from buyers under duress, compared to 36% in Q1 ‘10.
MFGWatch is a quarterly, recurring survey conducted by MFG.com of nearly 500 North American Suppliers and OEMs/Buyers of manufacturing goods and services. The survey is conducted via e-mail from a sampling of MFG.com member companies, and is intended to reflect projected (intent) and reported (actual) behaviors of companies in the North American manufacturing sector. MFGWatch data and its analysis are provided to share openly – however, MFG.com does ask for responsible acknowledgement as the source of MFGWatch data. Industries represented include aerospace/aeronautics, automotive, medical, defense and consumer products manufacturers.
Business Development, Manufacturing Economy
Strike At Ports Of LA, Long Beach End, But May Not Be Over
Earlier this month, MOJO featured a post titled “Strike at Ports of Long Beach & Los Angeles – Won’t Disrupt Supply Chains?” We were a bit incredulous that there were reports that those striking were “only” clerical workers from a couple of companies, and therefore shipping likely wouldn’t be disrupted. Our point: lesser events have blossomed into full-blown stoppages, so don’t get too confident.
Last week, the strikers returned to work. All is well, right? Uh … maybe not.
The unions that called the strike were protesting clerical jobs being outsourced. During the week-plus strike, the clerks reportedly picketed the docks in hopes of convincing those workers to join in the festivities. But an arbitrator ruled twice that the strike was not “bona fide.” So, the clerks are back to work without a contract. So, of course, union officials have said not to rule out another walkout.
Just because these folks returned to work doesn’t mean that the situation has improved. Anyone who’s spent anytime near or around SoCal and the shipping business there knows the score … until the fire’s out, a flare-up is always possible.
Again, sourcing professionals should pay close attention due to supply chain impact. And small supplier manufacturers should, too – since any disruption would present a perfect opportunity to solicit work from comapnies that’ll be looking for alternatives – fast.
Business Development, Manufacturing Economy, Marketing for Manufacturers
iPhone 4 Flaw: Was It Design Or A Supply Chain Issue, Too?
There are clearly more questions than answers right now about what’s caused Apple’s iPhone 4 design faux pas. With a company that size and with the command & control that comes with it, that’s not surprising. I mean, these guys just KNOW how to manage a message.
(BTW, in case you’ve been living under a rock over the past couple o’ weeks, Apple released their latest iPhone to much fanfare. With a design flaw in the antenna that causes its reception to seriously degrade if the user holds it on its sides. It’s so noticeable that Consumer Reports recommended that we not buy it. Apple found out that if users put a bumper cover on the phone, it would fix the problem. Now, the issue for Apple is how to make it right – buy everyone a bumper cover, recall the phones or fix ‘em at their stores.)
So far, the vast amount of press and reports point to poor design. As you may know, Apple’s design takes place in the US, while its production takes place in China. Apple’s primary Chinese supplier – Foxconn – is having its own problems around reputation and costs right now.
So here’s my point – if Apple’s controlling the message, and the story from them is it’s a design issue (that it’s speculated Apple design engineers were aware of a year ago), and the company’s R&D and design arms are so far separated from its production, is anyone surprised about this? Really? What does this say for user testing – at a company with the highest reputation for user experience, didn’t anyone think to look at the reception? Of a CELL PHONE? When held in the palm of the HAND?
Much has been written lately about backshoring work to the U.S. Many of its advocates point to several factors that contribute to unforeseen higher costs of offshoring production – among those factors are intellectual property risks, long lead times, rising labor costs and … wait for it … QUALITY CONTROL ISSUES.
By separating its design and production processes, isn’t it possible that Apple pulled a Toyota here? A VERY large and VERY successful company that began pushing product to satisfy its own sets of internal standards ends up overlooking basic quality issues? Has Apple’s supplier become distressed to the point of distraction? How is it that a supplier – a PARTNER – didn’t turn on or test the phone themselves?
Like I said, there are more questions right now than answers. But here’s something to look for – if Apple decides to be transparent about what caused this, we’re likely to find that this wasn’t just poor design.
Apple’s supply chain failed.
Business Development, Manufacturing Economy, Marketing for Manufacturers, Your Web Site
Some Advice For Small Manufacturers In ‘Non-Manufacturing’ States
I had a conversation yesterday with a small contract manufacturer in Colorado. The shop owner was describing the challenges he has being a discrete parts manufacturer (CNC/manual milling, turning, EDM) in a state that “doesn’t promote manufacturing.”
Not many steel mills around these parts, huh?
Now, I don’t entirely agree with his assessment, but I do see his point. Aside from California & Washington, most western US states aren’t hotbeds for industrial commerce – at least not the kind our friend is talking about. And Colorado isn’t exactly in the rust belt. On the other hand, every state these days – including Colorado – is certainly looking to boost its economy and employment. Maybe Colorado isn’t pushing THE KIND of manufacturing he or you may like, but they certainly aren’t adverse to business. You feelin’ me?
The fact is, there are opportunities available for small manufacturers that feel there are few to be had in there state or region. Here are some suggestions I gave our friend, from my recent experiences with similar manufacturers and from our observations on MFG.com:
Get your Web site in order: Your site is where buyers and prospects are researching you. It’s 2010, not 1998. You should be on developing or nurturing your business’ site like John Goodman on a fried twinkie.
MRO work for local manufacturers: There are almost ALWAYS “manufacturers” in his/your region that aren’t in what ’s considered the “sweet spot.” Instead of lamenting the decline of buyers in “traditional” markets, look for manufacturers in areas like food processing, agriculture, energy/power, pharmaceuticals and others. They often have large, precision equipment that require spare parts in inventory for maintenance, repair & operations. Many small manufacturers are doing quite well utilizing this under-utilized approach.
Go “Green” – and hurry: When I first mentioned to our friend that clean energy is jumping – especially in the western states – he balked. Then after reflecting, admitted that he had heard of “wind and solar manufacturers in the area.” These cats are often looking for quick turnaround and reducing the carbon footprint of their supply chains. Local is often good, and while his/your history or capabilities may not be in clean energy, they can often translate. Approach them, and market yourself VIA YOUR WEB SITE accordingly. But act now – many of his/your competitors are pursuing this work and quantities are limited.
Go (farther) West: Remaining a “regionally-focused” small manufacturer is rife with peril these days – communications and the availability of machining supplier options are commoditizing these businesses around the country. One option is to “step out” of a comfort zone. For our friend – with low overhead and relatively low regulatory/tax burdens – going to California & Washington to pursue aerospace work might be the ticket. They aren’t too far, work is picking up, there are fewer suppliers available, and the cost issue cannot be overemphasized.
The bottom line for small manufacturers in any region these days is to be creative, step out of your comfort zone(s) and build on your strengths. Waiting for things to go back to the way they were simply isn’t an option.
Business Development, MFG.com, Manufacturing Economy
Hey Manufacturers! What Have You Cut To ‘Survive’?
(NOTE 07/21/10: I just found this really interesting article from CNBC titled “Consumers Beating Manufacturers at Their Own Game.” It looks at how consumers, raw from job losses, climbing costs, and economic upheaval have become more frugal and less wasteful. The comparisons to the manufacturing industry and how its businesses are run are compelling.)
A colleague and I were talking shop the other day, and she asked this very compelling question.
Certainly, choosing what and where to eliminate waste is important. And despite the environment in which we’ve had to make those choices, it’s not an altogether bad thing for a business’ long-term vitality.
But manufacturing in general – and small & medium sized manufacturers especially – have had to make some brutally tough choices over the past 2 years. It’ pure agony, determining what or who to do without.
(I know, could’ve said “the past 20 years” – but follow me here …)
Most small manufacturing companies are naturally lean to survive (or exist). That doesn’t mean they’re Kaizen geniuses – just that they have the instincts in place and fewer layers of management. That makes ‘em more agile, but it also means that the options for what to cut in abysmal economic conditions is tougher.
Less waste, less options.
So have you cut customer service activities to reduce costs? If not, what have you cut? Sales? Marketing? Have you laid off employees, or fired “bad” customers? Have you been forced to weaken your customer-facing resources to survives?
MOJO wants to know.
Business Development, Marketing for Manufacturers
2 Social Media Tools For Small Manufacturers
Small and even mid sized manufacturers need all the help they can get these days. Economic, government and business playing fields are shifting with the frequency of a cheap ham radio. It’s hard to keep up.
Add to that the emerging influence of Social Media, and it really gets complicated. Understanding what they are and how to benefit is tough without the time to devote to learning them. Here at MFG.com’s MOJO, we try to help a little. So here’s some more help for you to get ahold of some business through Social Media Channels. These 2 tools are cheap/free and can get you in the game relatively easily:
We’ve written about Constant Contact before – a great tool for small businesses to manage email campaigns to work their markets. Now, they’ve come up with a new product called Nutshell Mail. It allows a small business to manage all Social Media accounts – Twitter, Facebook, etc. – and various email accounts through one client. It’s free for basic account with add-ons for extra charges, and relatively inexpensive even if you want to step up. Simple and effective. Another plus is that it ties in all of your activities and prospects to create a pretty effective marketing campaign.
Postling is a product that helps to manage Social Media accounts, monitor activity of followers and friends (that’s your prospects & customers, don’t cha know), and even post to your WordPress blog. All in one spot. You can also post to all of your Social Media accounts with one post – you don’t have to type or copy & paste many times. An added benefit is the Postling Community – forums and other interactive platforms that allow Postling users to interact and exchange ideas and seek advice.
Both of these products reduce the effort for manufacturers to plug into these emerging, valuable channels. Either product is worth your time, because there’s business to be won through Social Media – and now’s a pretty good time to get after it.
Business Development, Manufacturing Economy
Strike at Ports of Long Beach & Los Angeles – Won’t Disrupt Supply Chains?
A week-old strike by clerical workers at 2 of the 14 priminent companies serving the ports of Long Beach and Los Angeles continues. Three separate negotiations have ended without resolution, and reports state that actual shipping hasn’t been disrupted because (a) only clerical personnel are striking and (b) only a couple of companies are striking.
I wonder if BP said at some point, “Hey! It’s only one well …”
What isn’t clear about this strike is what happens in the coming days or weeks if talks continue to break down. Will other members of the International Longshore and Warehouse union from other companies joing their brothers and sisters on the picket line? Will other unions show fellowship and join? While clerical work for shipments is said to be done “several days in advance,” how long until disruptions do begin?
The strike is centered around compensation and job security – the employers are said to be considering automation which would eliminate clerical postitions. That’s a pretty touchy subject, especially these days. Point is, this could become a perfect storm without much effort if comprimises aren’t reached.
For suppliers of manufacturing services in the US – whether you’re a member of MFG.com or not – this is something to watch closely. To say today that supply chains won’t be disrupted may be whistling past the graveyard. And if disruptions DO occur, they represent another perfect opportunity to reconnect with previous customers and prospects in the US to remind them that sourcing in-country helps to eliminate those risks.
Business Development, Manufacturing Economy
Reshoring On The Radio
Harry Moser is the longtime president of Agie-Charmilles and advocate of backshoring work that can (and should) be brought back to the U.S. from costly international sources.
Harry will be appearing on The Lean Nation radio show (790AM, Providence, RI) on July 8th, 2010, from 4:00 to 5:00pm to discuss the reshoring initiative and why it’s so important. For those not able to tune in live, the show will be posted as a podcast for download immediately after the show.
According to the 790AM site: The Lean Nation … airs from 4-5pm ET, weekdays and streams online at 790business.com. The Lean Nation features real world examples and actionable advice from local and national business leaders on how to reinvent yourself into a lean operation in business and in life. The show’s host, Karl Wadensten, is the president of VIBCO, a Rhode Island manufacturing company. Over the last 3 years VIBCO has created a Lean Revolution, using lean methodologies (based on the Toyota Production System).
Business Development, Marketing for Manufacturers, Uncategorized, Your Web Site
Small Manufacturer Gets The Web & Social Media
One of the most significant hurdles between small manufacturers and success on the Web is the acceptance of discovery.
Most want to see absolutes and guarantees before they invest. Makes sense – they’re engineers. But the Web in general – and Social Media specifically – often introduce our businesses to unexpected partners and opportunities that we never imagined on the drive into work this morning. Happens all the time.
You can’t win if you don’t play.
Recently on Twitter, I ran into a company named Graphicast, a specialty castings and machining company out of New Hampshire. A few days ago, I got some comments on a MOJO Blog post about how to be more social with Social Media. One of the comments mentioned Graphicast and how well they do online.
I dove into Graphicast’s online universe to check ‘em out in depth, and what I found shocked and surprised me – a small manufacturer that gets the Web & Social Media. You don’t see that everyday.
If you’re a small or mid-sized manufacturer yourself, considering your online strategies and what to do (next) you could do a whole lot worse than using what Graphicast does as a guide for your own company. Consider:
- They built their site on Wordpress: It’s inexpensive, it’s powerful (meaning it works, it’s customizable, and easy to use/manage), it’s open source and offers myriad tools and options. What tools you select don’t have to be complex or expensive – just effective.
- They use Social Media outposts to feed their Web site: You can follow or interact with Graphicast throughout the Social Media landscape: Twitter, Facebook & LinkedIn. The company also utilizes (very well) a video channel and SlideShare for presentations on all manner of manufacturing topics. Graphicast presents information in various mediums to attract buyers with varied interests. That’s smart.
- They promote their value and differentiate themselves: This is the primary marketing goal for any manufacturer online, and it’s the rationale presented for choosing Graphicast as a partner throughout the site. Their “Better Process, Lower Total Cost, Rapid Turnaround” graphic on the home page clearly enunciates the superior attributes of the Graphicast process over traditional castings. Other pages throughout the site offer more detail on these advantages, which give a great mix for buyers with varying levels of sophistication.
- They share Blogging and Social Media across the company: Graphicast has used Blogs in some interesting ways. Look at the lower right corner of their home page under “Graphicast Resources.” You’ll find many of the categories – Engineering & Design, Events, Company News, Perspective – contain contributions from various Graphicast team members, from the CEO on down.
What really distinguishes Graphicast is that last part – the entire culture is represented online. I recently wrote about Social Media as your new receptionist – a channel into all sectors of your business. What Graphicast does is take that to the next logical step – creating direct channels between their customers and prospects into engineering, sales and the executive suite. Embracing Social Media culturally improves the level & quality of knowledge, presents the company more accurately to customers/prospects, and greatly improves the efficiency of managing media. “We” is smarther than “me,” indeed.
Take some time to get to know Graphicast. You’ll find they’re approachable, competent and easily distinguishable from just about any other small manufacturer you’ll find online.
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