How Will Auto Manufacturers Respond to Environmental Regulations?

Automotive manufacturers feel immense pressure from environmental groups who continue to emphasise on the need to instil emission reduction targets as part of their long term growth strategies. For manufacturers, it appears that the biggest challenge is to gain a picture of the entire scope of their business to see where reductions in emissions can be made and how they can look to re-purpose their existing resources in order to reduce emissions further.

Since automotive manufacturers operate in an industry impacted heavily by environmental regulations, they must look into innovative ways to brighten their environmental record. Some manufacturers may investigate the development of alternative powered vehicles; some may investigate ways to reduce operational costs in the development of an auto-mobile; and others may consider a unique strategy that looks to capture the best aspects of both of the aforementioned strategies.

 

An Aberdeen article entitled ERP in Automotive Suppliers seems to indicate that auto manufacturers should consider the implementation of an ERP platform since it is responsive to their changing business landscape. An ERP solution is designed to offer manufacturers a single view into all of their IT systems, delivering the control and insight that they would need to effectively reduce their carbon footprint. According to Aberdeen, the benefits achieved through the use of ERP include a reduction in operational, administrative, and inventory costs; a reduction in waste; and increased profits and revenue.

Click here now to review the Aberdeen article for further insight!
 

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Onshoring US Manufacturing - Strategies for the Future

A recent article published by The Globe and Mail indicates that large US manufacturers are reverting their offshoring business strategies. Larger manufacturers like Boeing Co. and General Electric Co. are now finding that the benefits of lower wages accrued through offshoring strategies are offset by higher material costs and logistics. Here are some interesting things to keep in mind:

• The US unemployment rate of 8.3% stands as a significant barrier towards full economic recovery from the economic downturn of 2007 - 2009;
• The resurgence of US manufacturing added 50,000 new jobs during the month of January;
• As some manufacturers begin transitioning their business processes by onshoring what was previously offshored work, CEO's will be looking to fill approximately 600,000 manufacturing jobs;
• According to The Institute for Supply Management, US factories grew in January at the fastest pace in seven months at a reported index rating of 54.1 (ratings above 50 indicate expansion).

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