In a move that marks Japanese automaker Toyota’s very first plant closure, either in Japan or abroad, the company has decided to shut down a Fremont, California plant known as NUMMI. Toyota once ran the plant as a joint venture with General Motors, but when GM had to pull out of the deal, Toyota decided that it could not afford to keep the plant open alone.
 
New United Motor Manufacturing Inc., which produces Toyota Corolla cars and Tacoma pickups, will shut down in March 2010. According to Toyota, which had previously vowed not to close down any of its plants, the …read more

Although gross production from American factories, mines, and utilities has slowed for the past nine months, July marked a larger-than-expected increase in production and the first gain in the same period. Marking the second increase in production since December 2007, analysts have pointed to the statistic as a beacon of hope that the economy may be on a path to recovery.
 
The data came from the Federal Reserve, which noted a 0.5 percent total increase in production throughout the month of July, trumping the average analyst estimate of a 0.3 percent increase. Automakers were the most significant component of the increase, …read more

It may seem that China already produces a much greater quantity of goods than the United States because of the abundance of “Made in China” labels in every retailer; however, the U.S. still out-manufactures China, producing 20 percent of goods globally to China’s 12 percent. Analysts predict, though, that the U.S. may not be the world’s largest manufacturer for much longer.
 
IHS/Global Insight, an economic-forecasting firm based in Lexington, Massachusetts, predicts that China will surpass the U.S. in real value-added manufacturing in 2015. This would mean that China will have managed to nearly quadruple the value of its manufactured goods in …read more

Nowadays, news that would have been bad a couple of years ago serve as glimmers of hope in a troubled economy. Although manufacturing has shrunk again and home sales are still nowhere near they are in a strong economy, manufacturing decreased the smallest amount since August 2008 and home sales continue to creep upwards for the fourth month in a row.
 
According to the Institute of Supply Management, their factory index, which measures manufacturing, has risen in June to 44.8, with any number under 50 signaling a contraction. The National Association of Realtors has expressed a similar increase in the number …read more

The Society of Manufacturing Engineers has a suggestion for getting the US economy thriving again–Make Things. The organization points out that manufacturing creates wealth when your eco-conscious neighbor buys new solar panels to decrease his energy bill. Payment then goes to the store, other vendors, and the manufacturer. The money continues its journey down the supply chain to other service providers, where it’s reinvested in companies to purchase new equipment and develop new technologies. It also pays employees – one of whom goes out to buy new solar panels and the cycle continues.

Here are six ways to begin:
Encourage innovation …read more

As I was saying in my last post, Strategy+Business hit the nail on the head in their analysis of why manufacturers in developed countries are successful (countering the trend of outsourcing manufacturing to non-developed countries). Then they ruined a perfectly good article by suggesting that governments get involved in “encouraging” these companies:
How then can national leaders foster a revitalized manufacturing base? By encouraging the development of more companies with the vision to invest wisely. To be sure, it will never be easy. Even enlightened manufacturing companies must work extremely hard to keep their edge. But with any luck, in the …read more

With global warming firmly pointed at the US wealth generating industrial machine, federal schemes for regulating carbon producing industries and an emerging carbon trading system impact all companies. CFO magazine lays out the pros and cons of all of this in it’s article on “Carbon Trading“. The message is clearly to be aware and start understanding this area or be left behind having to purchase expensive carbon offsets combined with costly carbon-reducing improvements.
The mind-numbing uncertainty of this area, combined with a need for action, is leaving many confused. On one hand CFO says:
“When federal legislation hits, the clutch of credits …read more