The Manufacturing Industry Blog

Hello!  I have been asked to take over this Manufacturing Blog from my colleague Lynette McTigue.  I have to say it is a very remarkable time to be discussing Manufacturing! There is so much in the news today. Who would have thought GM would ever declare bankruptcy or Chrysler would go to the Italians (Fiat).

Xerox is also facing some exciting times with Ursula Burns taking the helm from Anne Mulcahy next month. I actually started working with Xerox manufacturing not too long after Ursula did.   First in a selling role with Digital Equipment selling manufacturing systems, and then having actually joined the company to work as a production engineer and in operations.  I even had visions of becoming a plant manager at one point but then ended up on a different path.

It is also interesting how the focus from when I worked in the factory has evolved to many of the issues we discuss today.  One obvious example is sustainability – although we really didn’t use the word “sustainability” to describe this before – the environmental focus was clearly there.   Back in the early 90’s I was part of a team at Xerox that worked on improving our re-manufacturing process, meaning we re-used most parts from machines that were returned (when clients upgraded to newer models), so they did not end up in a land fill.   Today we not only continue our environmental focus in our factories, but have designed products that utilize less power, and generate significantly less waste from packaging throughout their life cycle, greatly reducing our customer’s environmental impact.

As an industry marketer for Xerox, focusing on the manufacturing industries, I work with our major manufacturing clients, consultants and sales teams and see first hand the challenges our clients are facing and what is working for them.   In this blog I look forward to exploring current manufacturing issues, trends, and challenges, sharing ideas and hearing from you.

Manufacturers are spending large amounts of energy, time and money to improve their sustainability image.  We are developing new products that are more environmentally friendly, reducing our carbon footprint, improving productivity, and all the while, our customers are saying, “So, what does that mean for me?”

The sustainability issue of today has now become a question of how companies innovate and uncover the things that will impact the sustainability goals of companies and consumers alike.  And by doing so, how do they really provide additional value to the client?

Leading organizations will find ways to prove the value of sustainability to their clients.  They will stand ahead of the pack with respect to customer perception and success of green activities by providing thought leadership that will define the next level of what it means to be “Green”.

Xerox itself, is a leader in green manufacturing and sustainable services practices.  Take a look through the Xerox Thought Leadership web site and click on Sustainability.  You can sign up for e-newsletters and belong to a group of leading sustainability thinkers, or download the whitepaper “Smarter Ways to Green: How to Make Sustainability Succeed in Business.”  As you may have seen, Xerox has also announced the first Sustainability Calculator for the office environment.  Take a look and let us know what you think.

After posting last week on sustainability, I came across the Economist’s Special Report on Corporate Social Responsibility.  In summary, the report claimed companies will continue to work with CSR and sustainability initiatives, but only on a level of making good business sense.   However, I believe that these “Corporate Feel Good Programs” have business impacts that may make them last forever.

I agree that companies will continue to do grow their CSR and sustainability practices basically for PR purposes, but these programs are addressing problems that are core to today’s manufacturers.  For example, one of the biggest challenges for the manufacturing industry for 2008 has been identified as strategic risk by AMR Research.  Strategic Risk is defined as “making decisions that culminate in designing, buying, building, storing, distributing, or selling the wrong products in the wrong market. It also covers not having the requisite competence to manage the global network or deliver a new service offering.”

In a global economy, an organization is challenged with its ability to manage developing facilities overseas, working with locals to address housing concerns, threats to ground water, requirements to hire local workers and townspeople, and so on.  The company’s success in this effort will not only ensure the buy-in  of regional talent and government, but will also improve its ability to gain product feedback, accessibility to new markets and confidence of the new customer base.  All of which reduce strategic risk and supplier failure in the local market.  Core to any global business’ success.

Sustainability executives will continue to be in high demand, not just for protecting the environment and decreasing global warming, but for keeping the company out of trouble with the public and reducing the business risk associated with poor performance on a regional front.  This “feel good” factor becomes successful business practice when we consider that these companies will be exposed to less risk in the supply chain, and the result will be improved business results.

I say that CSR and Sustainability programs are worth the effort.  The laggards are missing huge opportunities, but are more likely fail due to lack of planning and risk management.

It appears that green manufacturing is becoming ever more a reality.  When executives like General Electric’s Chairman and CEO, Jeff Immelt declare that “We are going to solve tough customer and global problems and make money doing it,” it sets the stage for all manufacturers to take the responsibility of stepping up their Corporate Social Responsibility and Sustainability initiatives, and become the leaders in the drive towards sustainable practices.

The article, From Challenge to Opportunity: The role of business sin tomorrow’s society, by World Business Council for Sustainable Development, highlights  items that manufacturers really need to take to heart to order to take the lead.  The are:  Eco-efficiency, Sustainable consumption, Sustainable supply chains, First mover innovation, Monetizing resources, and Policy engagement.

Many manufacturers are reducing their carbon footprint, developing new products that are more environmentally friendly, and innovating new items that will impact the sustainability goals of companies and consumers alike.  The trick for success will be getting a jump on the ball.  According to Industry Week, manufacturers need to be more proactive in developing products and services with minimal environmental impact – design for sustainability in order to drive and maintain leadership.

Leading organizations like Nissan, Toyota, DuPont and General Electric have all engaged in this activity for some time now.  They stand ahead of the pack with respect to customer perception and success of green activities.  Xerox, itself, is a leader in green manufacturing and sustainable services practices through its Office Services Division.

Additionally, industries like the automotive are significantly investing in green technologies in hopes that this will attract new buyers for their products as witnessed during the 2008 NA International Auto Show.  However, the question remains “How can manufacturers foster stronger markets for sustainable products or technologies, particularly when consumer demand or policy incentives do not support scale and viability?