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The Evolution of Manufacturing Competitiveness after enjoying decades of leadership in global manufacturing, north america is facing growing competition in the international economic arena. Developing nations are leveraging large labour pools and increasingly sophisticated production strategies to change the ground rules for global manufacturing competitiveness. From 1996 to 2008, the number of developing countries with Fortune global 500 facilities increased by 525 per cent, underscoring the scope and magnitude of this trend. emerging industrial centers like brazil, russia, india, china and others, pose a direct threat to north american job markets. to mitigate these threats and bolster domestic manufacturing bases, we must change the conversation about manufacturing to reflect that the paradigm has shifted from a “goodsonly” production model to encompass research, design and service provision. as a sector, manufacturing has evolved, but our understanding of it has not. in today’s global landscape, manufacturers are inventors, innovators, global supply chain managers and service providers. meanwhile, the source of our competition has evolved as well. where labour costs were once the main driver of north america’s eroding competitiveness, the availability and quality of talent is now the most 38 | www.2020MAgAzINE.CA by JacK mcDougle, senior vice presiDent, tHe council on competitiveness As a sector, manufacturing has evolved, but our understanding of it has not. In today’s global landscape, manufacturers are inventors, innovators, global supply chain managers and service providers important ingredient for a competitive business environment. Findings from the newly-released 2010 Annual Global Manufacturing Competitiveness Index, commissioned by the council on competitiveness and Deloitte, indicate that decision makers are recognizing this critical shift. the index, which polled more than 400 chief executive officers and senior manufacturing executives worldwide, identified talent driven innovation as the central factor accelerating economic competitiveness. the index also delivered sobering news regarding how executives expect manufacturers in the western hemisphere to fare in the next five years. respondents targeted china, india and the republic of Korea as the most fertile ground for manufacturing investment, now and in the five-year outlook. sustained commitments to science, technology and innovation, coupled with strong national support for the manufacturing sector, have positioned these nations to dominate high-value manufacturing in the near and medium terms. to continue to be manufacturing leaders in this fundamentally new global environment, north america must develop a comprehensive strategy that addresses these challenges. the council on competitiveness is launching a new multi-year project to create a holistic manufacturing strategy that will be delivered to us private sector leaders, the administration, congress, governors and other key stakeholders at a national manufacturing summit in late 2011. the initiative will focus on strengthening four pillars to support a vibrant manufacturing sector in the us, and its findings can provide a manufacturing blueprint for the entire region. Talent Despite unacceptably high unemployment in north america, many manufacturers are not finding the middle-skilled workers with technical training that they need. not only does this harm the domestic economy, but it contributes to the migration of entire industries away from the region. the largest number of jobs for the next 10-15 years will be in critical middleskilled areas – these jobs pay relatively well, but talent is in short supply. we must focus state and federal workforce training dollars, community college curriculums and union membership programs to meet these needs. Technology north america owes much of its economic success to its leadership in the technology sector. we are still the uncontested leaders in computational [ continued on page 40 ]
Canadian Wind Energy Association Annual Conference and Exhibition November 1–3, 2010 Montreal, Quebec CanWEA’s Annual Conference and Exhibition will bring together over 2,500 delegates and 250 exhibiting companies from around the world to discuss the latest developments and emerging opportunities in Canada’s fast growing wind energy industry. The event will provide an exclusive opportunity to network with industry leaders and generate new business. Join us at Canada’s largest renewable energy conference to explore new manufacturing opportunities and to find out how your company can get involved in the wind industry. www.canwea2010.ca REGISTER Learn more about the emerging opportunities in the Canadian wind energy industry EXHIBIT Promote your products and services and network with global industry professionals SPONSOR Enhance your corporate visibility and position your company as a leader in this rapidly growing industry
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