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industry of the future


US companies, either. The cost advantage of manufacturing in North America is now so substantial that a number of fi rms from Europe and Asia are beginning to manu- facture goods in the US for sale in North America, as well as for export. The trends driving this shift are expected to have a long-lasting effect on manufactur- ing too.


The North American energy revolution is a key driving trend. The growth of un- conventional oil and natural gas extrac- tion from shale reserves has been broadly benefi cial for manufacturers. Aside from increased demand for manufactured pipe, pumps and other parts for extracting, stor- ing and transporting energy, it has also lowered energy costs dramatically. This has made it more attractive than ever to make goods here with advanced manufac- turing technology, the biggest operational cost of which is often energy. But the role advanced manufacturing technology is playing in this pendulum shift is also substantial.


What is advanced manufacturing? In some ways, it is easier to say what it is not. Traditional manufacturing was labor-inten- sive and often required one man per task, as a piece of material was shaped from one station to the next. Advanced manufacturing, on the other hand, employs a more sophisticated, inte- grated approach. Using information, auto- mation, software, sensors, networks and new materials and machines, many of which perform multiple tasks at once, advanced manufacturing works together to create a super-productive manufacturing system that builds more goods faster, with higher quality. Ultimately, manufacturers in this new mi- lieu are working toward production systems that require as close to a single setup as possible to build a near-complete part—so-called “done-in-one”—and can work around the clock, even untended, to deliver near-perfect parts just in time. Often, these systems are customized, creative and highly


Davi (Cesena Forli-Cesena, Italy; www.davi.com), which specializes in plate roll, angle roll and press roll machines and equipment, has been benefi ting from several energy trends in North America. Its equipment is widely used to build tanks that move liquid products, from petroleum to milk, but it’s also a market leader in providing the machines that help to mold steel for windmill towers.


tage: productivity-adjusted la- bor costs.


So in the fi nal analysis, “when logistics, shipping, costs and the many risks of operating extended global supply chains are factored in, it will be more economical to make many goods now imported from China in the US if they are consumed in the US,” BCG writes.


All of which explains why many global companies are bullish on North America’s manu- facturing industry, despite what- ever headwinds might come from the federal government or other uncertain economic factors. Optimism about the US econ- omy among industrial manufac- turing executives increased to 68% in the PwC Manufacturing Barometer for the fourth quar- ter of 2013. That is 20 percent- age points higher than a year ago and compares to 47% who were optimistic about the global economy.


Automation Leads the Way


Leading the charge of ad- vanced manufacturing are ma- chines, equipment and tech- nology that automate and


integrate manufacturing processes. In a survey of more than 300 North American-based manufacturing executives for the Ital- ian Trade Agency, nearly 40% of manufacturers said their com- panies had added new automation and robotics in the past year, surpassing other forms of advanced manufacturing technologies that have been adopted. That included, among others, multitasking machines (28%),


software-assisted


fl exible—specialties of Italian machinery fi rms. Because of the productivity improvements enabled by these advanced manufacturing technologies, US labor looks increasingly competitive when adjusted for efficiency. In fact, by 2015, BCG forecasts that it will cost less to manufacture in the US than most other major exporting countries, with China only slightly more affordable. A large part of the advan-


planning and scheduling


(26%), advanced materials (24%), supply chain integration (23%) and integrated quality controls (19%). Mr. Luigi Galdabini, President of the Italian Machine Tools, Robots and Automation Manufacturers Association (UCIMU- SISTEMI PER PRODURRE) (www.ucimu.it), said the shift toward advanced manufacturing technology favors many Italian companies. Italian fi rms, he explained, view themselves not simply as suppliers but as “real technological partners” who assist with engineering, installation and fi nal production.


1-888-italtrade 5


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