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KSM Blog | Katz, Sapper & Miller CPA

U.S. Manufacturing's Competitive Advantage

Posted 7:32 PM by

Over the past few decades, many U.S. manufacturing jobs have moved overseas due to competitive disadvantages in the U.S., such as high labor costs and higher business taxes. However, in Manufacturing.net's article Manufacturing Can Be Competitive In The United States, the authors argue that the U.S. still has a strong competitive advantage that should be factored into any outsourcing decision.

Companies who keep manufacturing facilities in the U.S. are able to reduce costs through lean manufacturing, and not just outsourcing to a cheaper labor market. Lean manufacturing, when implemented correctly, has the ability to reduce costs, reduce lag time, increase productivity, and strengthen customer relations. Lean manufacturing is successful because it creates a culture of flexibility and continuous improvement. This leads to greater manufacturing profitability.

Whether outsourcing for cheaper labor is a consideration or not, it could be a huge benefit for all manufacturers to consider implementing lean processes into their manufacturing production plans. 

About the Author
Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group. Justin works with clients to help ensure accurate financial reporting, keeping an eye on their bottom line, and helping them avoid risk and maximize efficiencies. Connect with him on LinkedIn.

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Comments (1)
David wrote
the challenge is the low cost area also can deploy lean manufacturing to keep the advantage
Posted Aug 29 2012 10:35 PM
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