Manufacturing costs include more than just material, labor and overhead.
Possibly it's because inflation has ticked up over the past year or so, or possibly it's because despite a long career in manufacturing, and I am still not sure all stakeholders from production, sales, customers, suppliers – and especially accounting – really understand or agree, but I find myself now more than ever trying to identify and come to grips with the "real cost" of what I produce.
I am hardly the first to ponder this question. Truth be told, I spent too many years early in my career performing standards engineering and being responsible for product costing. All that experience, I fear, has left me more a skeptic than an expert on product costing. Too many companies in our industry have ended up foundering, in no small part because of their leadership not understanding the real cost of their product.
Remember to sell the excitement of the industry.
As finding and hiring talent has become so difficult over the past several years, it seems in every conversation I have, especially when younger people are involved, the subject turns to the need for talent in the world of manufacturing. With the baby boomers retiring in record numbers and the millennial generation showing so little knowledge of, or interest in, manufacturing, while appearing to prefer a "gig" type of employment (read: it's just a temporary job), my mantra of talking about the needs of industry for new talent at times seems like a broken record.
Getting the North American electronics band back together will take significant time and effort.
Thanks to a series of events and geopolitical shifts – think global supply chain strains caused by a pandemic; import tariffs ricocheting throughout the electronics industry; weapon systems depleted from regional wars – there is an outcry to get the band back together: the band being North American electronics manufacturing.
The band was playing the hits in the late 1980s and early 1990s when North America was in a leadership position as gauged not just by technical development but the ability to produce that technology in volume. The music (read: technical development) is still being written profusely, but where are the bands to play (read: manufacture) the music? That is why the crowd is chanting to get the band back together. The chanting comes in the form of legislation such as the CHIPS Act, as well as from "strategic sourcing" executives searching for local North American suppliers like they had back when the band was alive, well and making the hits.
The industry’s next generation is on the rise.
I am continually amazed at how many people I see and run into at each industry meeting or event – especially at technical meetings when I’m watching people leave one room and enter another for the next session. It strikes me a bit like watching the changing of the guard at Buckingham Palace – people leave one room to enter the next to do the same thing, and repeat!
One thing that makes our industry so strong and enduring is having so many people work together to contribute to developing and refining technologies, writing standards for those technologies and processes, and sharing their knowledge with others to fully understand those technologies and standards. And then as they say, “repeat.”