As trade agreements shift, tariffs fluctuate, and geopolitical tensions escalate, manufacturers need to be more strategic and adaptable than ever before. Old assumptions about cost, scale, and stability no longer hold in today’s increasingly fragmented global trade environment, and there is mounting pressure for manufacturers to rethink how and where…

A recent article (Traditional Risk Models Don’t Apply During Tariff Uncertainty | IndustryWeek) usefully discussed supply chain strategies for volatile trading environments, but it didn’t address some important considerations.  The authors catalog short- and medium-term strategies for supply chain management in this much more volatile trading environment, and some of…

Artificial intelligence is poised to revolutionize manufacturing sooner than many industry leaders anticipate. AI isn’t coming to manufacturing. It’s already here. While buzzwords like “generative AI” grab headlines, a more consequential force is quietly taking shape on factory floors and in planning meetings: agentic AI — systems that can reason, act autonomously, and drive…

When customers have many choices, companies feel the pressure to expand their product lines. Whether in capital goods or fast food, it’s tempting to add another SKU or slightly tweak a product to meet a customer’s request. This results in a broader range of offerings and increased complexity across engineering,…

We’ve been talking about challenges for incumbent manufacturers, and suggested in our last post that for manufacturers to thrive, they need to command privileged positions in at least some of the business ecosystems in which they participate. A privileged position means: Being core to or at the center of the…

By expanding the range of their manufacturing capabilities, manufacturing leaders increase their strategic options for the business. Manufacturing strategy is a key element of business strategy.

When capacity is limited, even temporarily, how should manufacturers decide which orders get priority? There are three dimensions to consider: 1. Which customer’s order it is 2. The organization’s ability to make and deliver it 3. The comparative profitability of different orders

Implementing the strategic change from machinery maker to solutions provider is difficult if the company is organized around its products, rather than its customers and their tasks.  

Consumer and medical goods shortages during the global pandemic have inspired some media backlash against Lean Manufacturing practices; the Wall Street Journal even published an article saying we should “blame lean manufacturing” for paper towel shortages.  Yet most manufacturing leaders have been taught (or learned the hard way) to “buffer…

In today’s constantly evolving and increasingly competitive business landscape, many companies are urgently developing new products/services and exploring new revenue streams.  However, their traditionally developed business strategies are either outdated or not as directly applicable.  Over time, strategy comes unmoored from competitive reality, leading to misalignment of the company’s offerings,…