Comments on: Business Investment: Why Is America Bad For Business? https://6sigma.com/business-investment-why-is-america-bad-for-business/ Six Sigma Certification and Training Fri, 28 Feb 2025 06:05:43 +0000 hourly 1 By: Frank Green https://6sigma.com/business-investment-why-is-america-bad-for-business/#comment-25930 Tue, 13 Dec 2016 22:41:01 +0000 https://opexlearning.com/resources/?p=21594#comment-25930 Hi
I’ve read with interest your article about the USA, and yes a number of key elements do play a major part in the final product cost. Australia has experienced this, as the US is now, especially with the car manufacturing industry. Over the years we have lost the likes of Nissan, Leyland & Mitsubishi, and now with the recent closure of Ford in October 2016. General Motors and Toyota are going next year too. This means our country will become an importer of vehicles.

The cost of labour is one element which is always a hot topic of discussion as well as the size of the available market/s. Here we are given an immense choice of vehicles, models, etc for this small market. I know when I was in California in 2004 to ride the SOLVANG with a buddy of mine from Santa Maria, I went to a Global brand dealership and was amazed at the difference in prices, so much cheaper (market size again)!

I’ve also seen how we, as a high labour-cost country, can compete with lower labour-cost countries through the introduction of more robotics in the production process. This, however, also means that there is an adverse impact on employment potential.

I’ve included the link to the recent Deloitte’s in-depth Global Manufacturing study which probably offers an opportunity to see where we are. Here it is:
https://www2.deloitte.com/global/en/pages/manufacturing/articles/global-manufacturing-competitiveness-index.html

The Conference Board International Labor Comparisons charts also provide a comparison, not only of labour, but of other key indices too.
https://www.conference-board.org/ilcprogram/

I was also fortunate to deliver manufacturing benchmarks from 2005 to 2013 to local regional manufacturers using the Comparison International program. The results show the importance of implementing Lean principles. Today, as the world ages and the costs associated with health dramatically increase, we see the rise of Lean Health Care.

Some years ago, one of my mentors gave me a white paper from Harvard Business Review, dated 1992, called “Staple Yourself to an Order” and is a great read. He told me to ask 3 questions of the team at each critical touchpoint: they were:- What do we do well here?What don’t we do well here? What can we do better here?

So I suppose one could dust off that quote: that everything old is new again.
Enjoy!

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