Five steps to bring back American manufacturing jobs

Many proclaim that American manufacturing is gone, never to return. The numbers certainly are frightening. Yet other signs point to a possible resurgence. Manufacturing executive Carol Ptak argues that significant numbers of good manufacturing jobs can and will return if America takes the following five steps.

4. Use sensible metrics

The current manufacturing metrics of efficiency, keeping all machines busy all the time (utilization), and overhead absorption were developed after the stock market crash of 1929. Any manufacturing manager can tell you what products are really the most profitable. Rarely does the formal accounting system come up with the same answer.

Sensible metrics must be deployed that encourage better integration of various components within the company. These metrics align resources, working capital, and activities to the company goal of being sustainably profitable. Sustainable profitability is far more important than short-term operational efficiency.

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