In an interesting convergence, the new United States Mexico Canada Agreement (USMCA) trade deal has taken effect within days of celebrating Independence Day here in the United States of America. The new deal replaces the old North American Free Trade Agreement (NAFTA) that was implemented on January 1, 1994. While the net effect of NAFTA has been the subject of spirited debate, there are two unfortunate realities. First, the US trade deficit with these countries increased from $17 billion to over $177 billion per year, and over 800,000 US jobs were displaced during NAFTA’s 26-year existence. Likewise, and worse for Americans, since China joined the World Trade Organization (WTO) in 2001, 3.4 million US jobs have been displaced, and the annual US trade deficit with them peaked in 2018 at over $400 billion. To add insult to injury, trade with China has strengthened a totalitarian regime that oppresses the Chinese people and views the United States as an obstacle to their global ambitions.
Choosing the right Contract Manufacturer is integral to business success, whether taking a strategic outsourcing approach, or a tactical one. In this episode of Wired Success, Mark Cessar talks with Liberty’s Director of Business Development, Scott Anderson about how the right Contract Manufacturer can benefit your business, and how that can depend on whether the business takes a strategic approach or a tactical approach to outsourcing the work.
OEMs and suppliers both bring experience, expertise and specialized knowledge to the table during the manufacturing process. Suppliers often don’t enter the picture until a design is created, and sometimes not until prototypes have been manufactured. However, there’s an argument to be made that a partnership between an OEM and a trusted supplier should be formed during the design phase. Collaborative design can benefit both OEMs and suppliers for a number of reasons.
Although the aerospace industry is leading the effort to combat counterfeiting through methods like serialization tracing and supply chain control, the use and sale of counterfeit parts is still an issue in manufacturing. Counterfeiters are changing with the times too, applying more sophisticated approaches and techniques to skirt testing, laws, and standards. Blanks, clones, and undisclosed remanufacturing are just some of the growing trends infiltrating the world of counterfeit.
Investing in the right prevention procedures, purchasing processes, and product quality controls might seem daunting, but the value of the price of protection far outweighs the cost you might pay for buying, selling, or using counterfeit parts. Here are some steps you can take to mitigate the risk of falling victim to counterfeit.
The Bill of Material is a critical component of the planning process in manufacturing for any industry. This comprehensive list of components and equipment required to manufacture a product can fluctuate depending on cost, availability, and capacity. For original equipment manufacturers (OEMs), outsourcing a level up the Bill of Materials might prove to be beneficial.
Industry predictions indicate that manufacturing will grow faster than the general economy*. Growth in areas such as global aircraft manufacturing is projected to spike from the less than 4% rise seen from 2013-2017 to nearly 9.5% from 2017 until 2021. These high manufacturing expectations are bound to cause an increase in production needs for OEMs. But how do you best scale up production without falling victim to overspending on inventory or finding yourself unable to fill orders due to long lead-times and or lack of capacity?