TBM Take Back Manufacturing WWW.SME-TBM.ORG A 20 Minute Fly-by Take Back Manufacturing 2017 Nigel Southway TBM Advocate 50 years of Manufacturing Experience, Engineer, Consultant, Author, Business Owner. LEAN and Global Supply Chain Consultant. Past Chair of Society Manufacturing Engineers. Advocate for Take Back Manufacturing
TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing TBM Since Mid 2011 A Forum Dedicated to Restoring our Manufacturing Sectors. www.SME-TBM.org
3
GLOBALIZED MANUFACTURING
Moved Off- shore….. For low cost labor rates Un- controlled “FREE” trade….. “herd behavior” 15% Reduction in Manufacturing Intensity in the last decade Foods Fittings Equipment metalwork Appliances AUTO PARTS Electronics Furniture Plastic goods Footwear Textiles TBM 5
CANADA TBM More than 500,000 jobs lost in 6 year period (300,000 Ontario) 25% Reduction (Quantity and Quality) Lost 10,500 Plants (50%MFG SME’s Ontario) 10% Productivity Loss (Reduced Capacity utilization) Redeployed to part time and lower paying service jobs 2009 2010 2011 Source: Statistics Canada 6
CANADA TBM More than 500,000 jobs lost in 6 year period (300,000 Ontario) 25% Reduction (Quantity and Quality) Lost 10,500 Plants (50%MFG SME’s Ontario) 10% Productivity Loss (Reduced Capacity utilization) Redeployed to part time and lower paying service jobs 2009 2010 2011 Source: Statistics Canada Employment 15 to 24 Year Olds Due to this…. We have a skill shortage!!! 1,000,000 Young Canadians (NOT a labor shortage) Now un or under employed!! 7
CANADA -1% GDP (GDP=1350B) 8
CANADA -1% GDP (GDP=1350B) -10% GDP Worse than USA numbers!!! Increasing dependence on Imports Increasing dependence on Exports of raw resources 9
Canadian Prosperity Measures show significant decline… Citizen Debt is Fueling Real Cost of Living …. Weak Economic Growth …………..is Escalating..
TBM Take Back Manufacturing WWW.SME-TBM.ORG OUR ECONOMY NEEDS MANUFACTURING! It is VERY obvious that we need a Balanced Economy (Resources/Services/Manufacturing) Start making what we consume!! 11
Globalized Trade has outpaced Wealth Creation 800% 350% or less Ave Prosperity Flatlined at best Winners Losers Emerging Economies Mature Economies Bankers National governments Traders Mature Economy Middle class Global Corporations Citizen level investors Global Capitalists Youth early in careers The Planet! 12
Globalized Trade has outpaced Wealth Creation Trade is an inefficient method to generate wealth! 800% Significant failure to correctly manage trade balance Wealth and wealth entitlement Dilution 350% or less GDP is now a very poor measure of prosperity! Ave Prosperity Flatlined at best Winners Losers Emerging Economies Mature Economies Bankers National governments Traders Mature Economy Middle class Global Corporations Citizen level investors Global Capitalists Youth early in careers The Planet! 13
Globalized Trade has outpaced Wealth Creation Trade is an inefficient method to generate wealth! 800% Significant failure to correctly manage trade balance Wealth and wealth entitlement Dilution 350% or less GDP is now a very poor measure of prosperity! Ave Prosperity More Global trade deals will just NOT help! Winners Losers Emerging Economies Mature Economies Bankers National governments Traders Mature Economy Middle class Global Corporations Citizen level investors Global Capitalists Youth early in careers The Planet! 14
15
GLOBALIZED MANUFACTURING TBM Positional Paper on the Waste in a Global Supply Chain
GLOBALIZED MANUFACTURING TBM Positional Paper on the Waste in a Global Supply Chain
GLOBALIZED MANUFACTURING TBM Positional Paper on the Waste in a Global Supply Chain
GLOBALIZED MANUFACTURING TBM Positional Paper on the Waste in a Global Supply Chain
Waste of VERY Expensive Bunker Fuel PURE WASTE Much Non-Value-Adding Inventory 20
Waste of VERY Expensive Bunker Fuel VERY LARGE CARBON FOOTPRINT This low grade bunker fuel is used by the worlds 90,000 cargo ships A single large container ship emits pollutants equivalent to 50 million cars. Total container ship pollution is 6 times that of the TOTAL cars in world 2,000 times the amount of sulfur compared to diesel automobiles. Container ships account for 90% of global trade by volume. Our Economies will be jeopardized by this global warming enabler 21
22
INSANITY 23
GLOBALIZED MANUFACTURING TBM Positional Paper on the Waste in a Global Supply Chain
LEAN Review of Trading Models GLOBAL Localized SUPPLY CHAIN TRADE Bloc 25
NOW LEAN Review of Trading Models GLOBAL Process SUPPLY CHAIN Dig Resources Ship resources HIGH WASTE Dock resources NOT LEAN Use Resources NOT GREEN Ship products Canada Dock products Ship Store ship CHINA/ASIA Sell Manufacturing recycle loop USA $ Cost Drivers SCRAP 9000 km Each way MIN 6 weeks Transit Inventory MIN $100/M cube to transport MIN Many Transactions / Handling…… Much Waste of Natural Resource’s 26
NOW LEAN Review of Trading Models GLOBAL Process SUPPLY CHAIN Dig Resources Ship resources HIGH WASTE Dock resources NOT LEAN Use Resources NOT GREEN Ship products Canada Dock products Ship Store ship CHINA/ASIA Sell Manufacturing recycle loop USA $ Cost Drivers SCRAP 9000 km Each way MIN When Interest rates are “normalized” 6 weeks Transit Inventory MIN $100/M cube to transport MIN we will have a “High cost of Inventory trap” Many Transactions / Handling…… Much Waste of Natural Resource’s 27
CHINA … L ow C ost C ountry ? The end of cheap China What do soaring Chinese wages mean for global manufacturing? Mar 10th 2012 | HONG KONG AND SHENZHEN | from the print edition WEALTH TRANSFER???
NOW LEAN Review of Trading Models GLOBAL Process SUPPLY CHAIN Dig Resources Ship resources HIGH WASTE Dock resources NOT LEAN Use Resources NOT GREEN Ship products Canada Dock products Ship Store ship CHINA/ASIA Sell Manufacturing recycle loop USA $ Cost Drivers SCRAP 9000 km Each way MIN When Interest rates are “normalized” 6 weeks Transit Inventory MIN $100/M cube to transport MIN we will have a “High cost of Inventory trap” Many Transactions / Handling…… Much Waste of Natural Resource’s 29
NOW LEAN Review of Trading Models GLOBAL Process SUPPLY CHAIN Dig Resources Ship resources HIGH WASTE Dock resources NOT LEAN Use Resources NOT GREEN Ship products Canada Dock products Ship Store ship CHINA/ASIA Sell Manufacturing recycle loop USA $ Cost Drivers SCRAP 9000 km Each way MIN When Interest rates are “normalized” 6 weeks Transit Inventory MIN $100/M cube to transport MIN we will have a “High cost of Inventory trap” Many Transactions / Handling…… Much Waste of Natural Resource’s 30
FUTURE LEAN Review of Trading Models Localized Process TRADE Bloc Dig Resources Ship resources Dock resources Use Resources Ship products Canada Dock products Ship Store ship Sell CHINA/ASIA USA Cost Drivers 9000 km Each way MIN 6 weeks Transit Inventory MIN TBM $100/M cube to transport MIN Many Transactions / Handling…… Much Waste of Natural Resource’s 31
FUTURE LEAN Review of Trading Models Localized Process TRADE Bloc Dig Resources Ship resources Dock resources Use Resources Ship products Canada Dock products Ship Store ship NAFTA Sell CHINA/ASIA USA Cost Drivers 9000 km Each way MIN Mexico 6 weeks Transit Inventory MIN TBM $100/M cube to transport MIN Many Transactions / Handling…… Much Waste of Natural Resource’s 32
FUTURE LEAN Review of Trading Models Localized Process TRADE Bloc Dig Resources Ship resources Dock resources Use Resources Ship products Canada Dock products Ship Store Ship Sell Short Supply Chains USA FAST RESPONSE to customers Cost Drivers 11% 9000 km Each way MIN 1000 km Each way MAX Mexico 6 weeks Transit Inventory MIN 16% 1 week Transit Inventory Max $100/M cube to transport MIN $10/M cube to transport Max 10% Many Transactions / Handling…… 10% Few Transactions Much Waste of Natural Resource’s Minimal Inventory/Interest rate exposure 33
FUTURE LEAN Review of Trading Models Localized Process TRADE Bloc Dig Resources Use Resources Ship Sell Canada Local Manufacturing Strong Incubator for INNOVATION Short Supply Chains USA FAST RESPONSE to customers 1000 km Each way MAX 1 week Transit Inventory Max $10/M cube to transport Max Few Transactions Minimal Inventory/Interest rate exposure 34
FUTURE LEAN Review of Trading Models Localized Process TRADE Bloc Dig Resources Use Resources Ship Sell Canada Local Manufacturing Strong Incubator for INNOVATION Short Supply Chains USA FAST RESPONSE to customers 1000 km Each way MAX 1 week Transit Inventory Max $10/M cube to transport Max Few Transactions Minimal Inventory/Interest rate exposure 35
Recommend
More recommend
