WASHINGTON — The National Association of Manufacturers (NAM) released Wednesday a report analyzing the changing role of small and medium manufacturers (SMMs) in traditional supply chains.
With U.S. manufacturing output and production at an all-time high and a more competitive dollar, the report suggests that small and medium manufacturers must seek new partners at every stage of the global supply chain to capitalize on growth opportunities.
“Manufacturers must collaborate closely with new domestic and overseas partners to survive and thrive in the global supply chain. In today’s economy, small and medium manufacturers are more than just suppliers. They are helping to create the new technologies, products, services and business models that are vital for success, both here and abroad. By connecting with outside resources — customers, government, academia — small and medium manufacturers can swiftly expand their core competencies and gain economies of scale,” said NAM President and CEO John Engler.
The report covers four areas where small and medium manufacturers can optimize opportunities and minimize risks in the global value chain:
- Harnessing innovation
- Building a skilled workforce
- Exporting and overseas growth
- Financing
“Traditional supply chains are morphing under the pressure of a globalizing economy. Manufacturers adhering to old supply chain rules are putting their businesses in jeopardy by not adapting to new rules,” said Thomas G. Murphy, Executive Vice President of RSM McGladrey, Inc., a cosponsor of the report. “The new global manufacturing supply chain is a whole new frontier. This increased responsibility for firms comes with increased risk that is intensified by the unprecedented movement of goods around the world.”
The report also cites best practices drawn from interviews and a roundtable discussion with NAM members, the results of an annual survey by RSM McGladrey and insights from the U.S. Department of Commerce’s Manufacturing Extension Partnership (MEP).
To view the report, click here. https://www.nam.org/supplychain/
