2/23/2017 TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing 2017 Nigel Southway TBM Advocate 50 years of Manufacturing Experience, Engineer, Consultant, Author, Business Owner. Past Chair of Society Manufacturing Engineers TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing The Globalized Manufacturing approach with efficient Supply Chains has been the business norm for the last 3 decades…. Many experts now predict a Total Economic Re-Engineering: Sustainable Supply Chains LEAN Business practices.. Including Disruptive Technologies Balanced Sourcing involving Reshoring Localized and Nationalistic trade blocs. More nationalistic politics are now in vogue and may reverse 30 years of poor global management and low prosperity. This will be the next business initiative to understand and embrace. 1
2/23/2017 TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing The Globalized Manufacturing approach with efficient Supply Chains has been the business norm for the last 3 decades…. Many experts now predict a Total Economic Re-Engineering: Sustainable Supply Chains LEAN Business practices.. Including Disruptive Technologies Balanced Sourcing involving Reshoring Localized and Nationalistic trade blocs. More nationalistic politics are now in vogue and may reverse 30 years of poor global management and low prosperity. This will be the next business initiative to understand and embrace. SORRY!... This presentation may offend current Economic doctrine. Manufacturing and Engineering has been a good career for a lot of us!! It’s been good to me! 2
2/23/2017 1966….. 4 Important things happened…. England won the Soccer World Cup The Beatles released the LP…. Revolver Star Trek premiers on TV I start my Engineering Apprenticeship at 16 BRITISH 60’s 6 3
2/23/2017 MODS THE BEATLES BRITISH 60’s British Rock Music The MODs Miniskirts MINI The Small Faces THE WHO Career choice… WHICH INSTRUMENT?? This?…. Electron Electron OR This?…. 8 4
2/23/2017 NIGEL SOUTHWAY www.nigelsouthway.com • 40+ years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. • Manufacturing Engineer (1972) British Aerospace/SPAR British Aerospace Electronics / Space-Systems group Bristol Division England Student Engineering Apprenticeship British Engineering Apprenticeship Indentured and Integrated with industry Embedded Education within Industrial Training program CONCORDE SST 002 April 1969 Proto-test platform Mach 2 (1350 mph) 120 Passengers 5
2/23/2017 INTELSAT/COMSTAR/ANIK Communication Satellite Space Shuttle Remote Manipulator System (SRMS) Canada 12 6
2/23/2017 NIGEL SOUTHWAY www.nigelsouthway.com • 40 years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. • Manufacturing Engineer (1972) British Aerospace/SPAR • MOTOROLA Director Manufacturing Eng / LEAN and Six Sigma Implementation (1980,s) • Engineer / Manager / Director ……….Brampton / Chicago / Nogales Mexico HI Tech Boom …. ABM Secure Networks Modems/Multiplexors NIGEL SOUTHWAY Owner of NEXUS CONSULTING SERVICE • 50+ years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. (Bristol) • Manufacturing Engineer (1972) • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s (1992) • Engineer / Manager / Director / VP Operations / General Manager • Consultant/Change Agent/Educator/Coach for LEAN business improvement • AUTHOR : CYCLE TIME MANAGEMENT … Fast Track to Productivity Improvement Consulting coaching and education on Business Productivity Improvement and Advanced Manufacturing, Joint Ventures, New Product Introduction Systems, Global Technology Transfer projects, Disruptive Technologies and Sustainable Supply Chain Management. Develop a Vision, Strategy and Evolution plan to attack waste, capture productivity improvements, increase profits, and become more competitive in the global market. Society Manufacturing Engineering Toronto Secretary and Past Chair in 2012-2013, Presidents Award. Lecturing at Canadian learning institutions and Industry Associations on Sustainable Supply Chains. NEXUS Advocate for the Take Back Manufacturing Forum and North American Reshoring initiative www.nigelsouthway Clients in Canada, USA, Asia and Europe. 7
2/23/2017 Supported Clients World Wide on LEAN THINKING & Productivity Improvement. • Electronic assembly • Bubblegum and candy factory • Meat processing plant.. • Food additive producer • Metal fabrications • Data-com system provider • HVAC Manufacturing • Computer software developer • Toothpaste manufacturing • Mint (Coins and Medals) • Steel mill processes • Security equipment • Bank check clearing house • Off-road equipment • US army medical Corp • Water pipeline manufacturer • Whiskey distilling • Exhaust System Manufacturing • Dry-cell battery production • Commercial swimming pool manufacturing • Credit card emboss house • Auto dealerships • Electrical products • Medical equipment Design/Manufacturer • Custom Power-Supplies • Oil extraction equipment manufactures • Computer design/manufacture • Nano-tech Battery Manufacturing • Sheet-metal fabricators • Automotive parts supplier • Plastic injection molding • Generic drug manufacturer • Truck Components supplier • Vaccine Development and Manufacturing • Construction equipment • Robotic Medical surgical devices • Oil industry equipment providers • Commercial Heating Equipment • Aerospace equipment providers • Soap factory NEXUS Canada / USA / Mexico / UK / China / Russia / India / Ukraine NAFTA Manufacturing Expansion…To a LCC (Low Cost Country) MEXICO 1996 to 2002 A Maquiladora or Maquila (used interchangeably) is a plant in Mexico that retains a Maquiladora Permit from the Mexican government to import raw materials duty free into Mexico for manufacturing, assembly, repair or other processing. The foreign company must agree to re-export a majority of its production. • Low cost labor: Wages range from 15% to 25% of comparable rates in the U.S. Normal work week is 48 hours. Productivity often exceeds the U.S. rates. (U.S. Bureau of Labor) • Favorable duty/tax treatment : Southbound, the Mexican government allows duty-free imports of all materials and machinery needed for the plant. Northbound, many North American sourced products are now duty free under NAFTA. • 100% Ownership of subsidiary: Leaves total control for all operations in the hands of the parent. There are professional services available to handle such matters as personnel, accounting and import/export management. • Proximity to U.S.: Lower turnaround times compared to other low labor rate countries, lower transportation costs, and the ability for managers or skilled technicians to commute on a daily basis to the Mexican facilities is possible in the border areas. • Access to the Mexican Market: Maquilas may sell part of their previous years export output in Mexico’s 107 Million person consumer market . Also… Free trade with EU and other trade jurisdictions with registered Mexican subsidiary status. And tax compliance 16 8
2/23/2017 GLOBALIZED MANUFACTURING 2004 Onward CHINA MANUFACTURING 9
2/23/2017 CHINA MANUFACTURING Metal and Plastics + Welded Assemblies Components Mixed Volumes Subassemblies Some final assemblies 20 10
2/23/2017 CHINA MANUFACTURING CHINA MANUFACTURING CHINA MANUFACTURING 11
2/23/2017 CANADA MANUFACTURING The future of Manufacturing in Ontario’s economy. 23 CANADA MANUFACTURING A NORTH AMERICAN PROBLEM The future of Manufacturing in Ontario’s economy. 24 12
2/23/2017 TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing TBM Since Mid 2011 www.SME-TBM.org A Forum Dedicated to Restoring our Manufacturing Sectors. TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing TBM 25 Technical Associations 3 Trade associations 5 Educational groups 6 Economic Policy makers 7 Media experts 3 Local government 5 Industry experts A Forum Dedicated to Restoring our Manufacturing Sectors. www.SME-TBM.org 13
2/23/2017 Presentations.... TAKE BACK MANUFACTURING Raising the Awareness CMTS Toronto Canada October 2011 SME Annual Conference Cleveland USA June 2012 TBM Many Society and Association events in 2012/13 M http://www.canadianmanufacturing.com/fabrication/production/taking-back-manufacturing-51066 14
2/23/2017 Professional Engineers Ontario http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf 30 15
2/23/2017 BNN BUSINESS NEWS NETWORK What can Canada learn from German Manufacturing? 31 TBM Take Back Manufacturing WWW.SME-TBM.ORG TBM …Our Ultimate Goal Government, Education organizations Work together …. Industry leaders ROADMAP……..Recover our future industrial capability …… and therefore our future prosperity. 32 16
2/23/2017 TBM Take Back Manufacturing WWW.SME-TBM.ORG WHY? ..Take Back Manufacturing FOR OUR KIDS!! 33 This is NOT a game!!!... Our Kids will Believe we don't make things!!! ? ? ? ? 34 17
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