Manufacturing Trends 2012 -2013

Manufacturing Trends 2012 -2013
Jason Putnam
General Manager of the Americas
MFG.com and LiveSource.com
Agenda
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What does MFG.com do?
Re-Shoring. Is it a real thing?
The ease of doing business with the government
Manufacturing trends 2012
Pride always comes before the fall
Connecting American Manufacturing (DoD)
Closing and questions
Buyer and supplier panel
What Does MFG.com do?
• MFG.com is the world’s largest manufacturing marketplace,
helping buyers and suppliers conduct more than $115 billion in
business
• MFG.com delivers unique value to different audiences
• Buyers find and qualify manufacturers more efficiently
• Manufacturers grow sales and profits while increasing capacity
utilization
• Supply chain professionals improve risk mitigation and
management
Recent News and Press
Last 30 Days on MFG.com
Recent Partnerships
NTMA and MFG.com Partnership
• Joint effort to aid contract manufacturers and
machine shops grows
• Co-branding initiatives focused on re-shoring
• Connecting MFG.com buyers with NTMA suppliers
• Private portal for NTMA members to conduct
business with each other
• Discounted rates and incentives for NTMA members
Re-Shoring
Is it a real thing?
A Manufacturing Economy in Decline
• Manufacturing activity fell more than analysts
expected
• Export activity fell to 48.4, down from 49.3
• Decline reflected weakness in both domestic
and export markets
• Manufacturing economy is probably
“bottoming out”
• Manufacturing sector shrank for a 7th straight
month
China Snap-Shot
Why the movement?
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Increased shipping costs
Increased labor rates
Long lead times
Inability to correct mistakes
Trust of intellectual property
Lack of payment terms
Language barrier
Time zone difference
Travel cost
Currency exchange
Japan Tsunami
Sony, Panasonic, Toshiba, Canon, General Motors, Caterpillar, Boeing, Intel, Apple,
Texas Instruments, Ford, Cisco, Hewlett-Packard, National Semi-Conductor
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Thailand Floods
Toyota (reduced operating profit by $1.6 billion), Ford (lost production of
30,000 vehicles), Lenovo (shortage of hard disks), Canon and Sharp
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Volcanic Ash Cloud
Airline industry, Food importers/exporters, Nissan
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Chinese Natural Disasters
A total of 38.25 million people in China were affected by natural disasters
last month, seeing direct economic losses of about 28 billion Yuan
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A Manufacturing Economy on the Rise
• Credits improved U.S. competitiveness and rising
costs in China
• Re-shoring movement represents a major
reversal over the early 2000s
• Manufacturing firms are bringing their operations
closer to home
• “As a result, we’re now seeing some disappointed
manufacturers moving production back into the
U.S.”
• 40% of surveyed suppliers have benefited from
re-shoring work in Q1 of 2012
Re-Shoring
It is real and it is here.
Have a plan in place.
Doing Business with the DoD
“Made Easy”
How MFG.com Simplifies DoD Sales
• Extract key information from complex DoD RFQs
– Material, dimension, tolerance
• Filter and match needs to your capabilities
– Focus on just a few instead of thousands
• Lower DoD hurdles
– Simplify registration
– Convert jargon to plain language
– Reduce volumes of info to only what is relevant
Doing Business with the Government
The DoD will release billions of dollars worth of
parts this year and MFG.com will make it easier
for suppliers to quote and win these jobs.
Have a plan in place.
Trends
Trends
Trends
Supplier Trends - 2012
• Recent survey shows machine shops are at break
even when they are at 75% capacity
• Over 40% of shops have benefited this year from reshoring
• 78% of shops are optimistic about sales and profits in
2012
2012 Trends
Pride Comes Before the Fall
Pride Comes Before the Fall
• The internet is not going away
• Average buyer sourcing online is under 30 years
old
• Price is not the only thing buyers care about
• Buyers will not walk in your door with prints
• Fair market value is fair market value, whether
you agree with it or not
• You must be in the right place at the right time all
the time – have a plan to be found and to find
You can take back control.
The Proof
The Proof
The Proof
• #1 in Google Search
Results out of
nearly 19,000,000
results
The Proof
• 5 Day Lead Stream
• 15 Unique Buyer
Leads
The Proof
Lead 1
Lead 2
Lead 3
Lead 4
The Proof
• Found over 100 times on search engines by nonregistered MFG.com buyers
• Found 195 times by registered MFG.com buyers
• 47 emails from buyers
• 25 phone calls from buyers
• 50 clicks on Spargo website
• 403 special invites to quote private RFQs
• Market as a preferred vendor 34 times`
• Over 50 awarded RFQs
The Proof
• Recently awarded RFQs
The Proof
• 21 unique customer ratings
• Could you use this type of
scorecard at an event like
this?
What Success Looks Like
New customers acquired through MFG.com since Nov 2011
The Proof
• Mosey’s Precision Machinists
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Found 15 times on Search Engines by non registered MFG.com Buyers
15 Special Invites to Private RFQs
Selected as a Preferred Supplier by 32 MFG.com Buyers
26 emails from Buyers
• Sultec
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Was awarded 7 jobs within the first two weeks of becoming a member
11 Special Invites to Private RFQs
Selected as a Preferred Supplier by 20 MFG.com Buyers
43 emails from Buyers
Closing
• Re-shoring is real
• The government wants to do business with you
• Buyers use the internet and are looking for new
suppliers
• Suppliers with a plan can dramatically grow their
business over the next 24 months
Have a plan in place and execute.
Questions / Comments
Buyer Panel
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Department of Defense
Kimberly-Clark
Cobra Technologies
Spargo Machine Products
Sultec
Mosey’s Precision Machining