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TRU American Manufacturing Index

US Technology-Intensive Manufacturing needs Production Process Sophistication to Maintain its Global Position and Build Domestic Production!

U.S Manufacturing Competitiveness Global Rank • Manufacturing Index 2000-2017 • Manufacturing Output Ranking

TRU Group Inc, Tucson AZ, USA Toronto ON preview of release April 8, 2017- Manufacturing engineering consultants TRU says that in the era of the Trump Administration its 2015 observations that US manufacturing “falls short on Production Process Sophistication compared to its competitors" has even more relevance. TRU president Edward Anderson says "Going forward 2017, TRU projects tough times for manufacturing and the need for the aggressive implementation on advanced manufacturing could not be more urgent. The current level of manufacturing capacity utilization at 75% (latest March 2017) is too low and we believe the index is set to fall further. The overall strength of the US dollar will persist (given the policy of the FED on interest rates) thus making imports more competitive than they would otherwise be. The reality is that US manufacturing faces huge challenges with or without the stress inherent in the radical changes in the trade policies envisaged by the Trump Administration". See Industry Production (IP) Chart above right titled "US Manufacturing Index with and without Tech Intensive".

TRU Group Inc, Tucson AZ, USA Toronto ON release May 18, 2015 - Manufacturing engineering consultants TRU says that the US focus on Technology Intensive Manufacturing* is good but more implementation (and less talk) would contribute greatly to a stronger domestic production capability overall. TRU president Edward Anderson says the US domestic technology intensive manufacturing should be performing better compared to the conventional production and may be held back by management timidity. Seems that since the 2001 recession (when fabless or off-shore manufacturing were in vogue) production strategies have strayed off course". See Industry Production (IP) Chart above right titled "US Manufacturing Index with and without Tech Intensive".

The number of manufacturing plants operating in the US declined from around 400,000 in 2001 to 230,000 in 2014. According to MAPI (Manufacturers Alliance for Productivity and Innovation) the geographic composition of trade in manufactures changed radically during this period too: The US share of global exports declined from 19% to 12% while the Chinese share soared from 7% to 23%. MAPI reported March 10, 2015: "The rapid growth of offshoring, defined as the substitution of imported intermediates from low-cost countries for domestically produced goods and services, is widely believed to be the major cause for the fast disappearance of industrial capacities in the U.S. since 2000".

Anderson Agrees: "I believe the downfall of manufacturing was caused by shortsighted strategists in the US management unlike in either Germany or Japan".USA manufacturing ranking 2015One may ask, where were the visionary American management leaders in the early 2000s that Tesla Motors now clearly possess, having recently announced plans to build a huge Nevada based lithium battery plant. Tesla last week beat expectations on its sales of American built electric vehicles to boot. “America ranks highly in economic competitiveness and the capacity for innovation but falls short on Production Process Sophistication compared to its competitors" says Anderson. The Tesla Plant will be associated with new innovative products, materials and likely employ some of the most advanced manufacturing methods available. See table left titled "American vs Global Competitor Ranking in Manufacturing Performance"

* "Technology Intensive" in the index are defined as semiconductors & related electronics, communications equipment and computer manufacturing.
US Manufactruing per cent of output

Contact: Edward R. Anderson B.Sc.(Hons)., Dpl.(Marketing Research)., MBA., FCIArb., President & CEO TRU Group Inc Website: Email Tucson 1-520-575-0674 Toronto 1-416-935-1754 Cell 1-520-229-7836

TRU Group Inc are industrial management and engineering consultants with a strong capability in manufacturing project development. . TRU Manufacturing Team has advised a number of players on a wide variety of manufacturing, engineering, process, business and investment issues.

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