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Manufacturing executives have IT confidence

By Staff -- MSI, 9/1/2004

In five major manufacturing economies, a survey reveals increasing reliance on technology to gain competitive advantage. The survey—conducted by TBM Consulting Group, a global manufacturing consulting practice based in Durham, N.C.—evaluated year-to-year comparisons among 1,100 mid-sized to large manufacturers in the U.S., U.K., Germany, Mexico, and Brazil. More than half cited an increased use of technology.

"The study suggests manufacturers in all highly industrialized countries are increasingly adopting a technology-friendly approach to improving productivity," says Bill Schwartz, senior partner at TBM and managing director of its LeanSigma Institute. "The inclination to increase technology and employee training suggests that the manufacturing community understands the continuous need to improve and innovate."

Manufacturers in each country reported productivity gains in 2003. Germany led with 54.5 percent reporting improvement, followed by the U.S. with 51.7 percent, the U.K. with 47.4 percent, Brazil with 46.7 percent, and Mexico with 38 percent. How productivity was measured varied by country, with more manufacturers in Germany, Mexico, and Brazil favoring value added per employee, while those in the U.S. and the U.K. favored units per hour.

Survey results in select areas:
Increased use of technology:
Mexico72.6 percent
U.K.62.3 percent
Germany58.1 percent
U.S.58.1 percent
Brazil53.3 percent
Continuous process improvement/Lean as a top initiative:
U.S.50 percent
Germany46.3 percent
U.K.42.3 percent
Mexico27.3 percent
Brazil13.3 percent
Increased commitment to employee training:
Brazil80 percent
Mexico69.4 percent
U.S.62.2 percent
U.K. 54.4 percent
Germany49.1 percent
Source: TBM Consulting

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