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Speaking of Precision

Speaking of Precision is a knowledge preservation and thought leadership blog covering the precision machining industry, its materials and services. With over 36 years of hands on experience in steelmaking, manufacturing, quality, and management, Miles Free (Milo) Director of Industry Research and Technology at PMPA helps answer "How?" "With what?" and occasionally "Really?"

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Manufacturing Defined: Making Things!

Posted March 18, 2014 11:59 AM by Milo

We were pleased to be quoted in the weekend edition of the Wall Street Journal in an article by Tim Aeppel titled Feds Try Redefining Manufacturing.

Our initial post on Factoryless Goods Producers was cited in the article.

It's like manufacturing, except without us actually making anything.


The issue is that federal agencies are trying to redefine "Manufacturing" to recognize "Factoryless Goods Producers" as Manufacturers.

If you don't actually make something- how can you be considered a Manufacturer?

If you contract to have some company in a foreign country make your product, why should you be credited as manufacturer and why should US get balance of trade credit for being the manufacturer?

We think that definitions ought to be honest.

Manufacturing is actually making things. not designing them, ordering them, or buying them from another company.

We think that manufacturing ought to be credited where the making things actually happens. Apple designs and sells some really cool electronics- but the manufacturing is not done in the US.

Why would we want to let US companies claim to be manufacturers when in fact they don't make the products in the first place, and often have them made overseas where the operations are not governed by US legal protections for labor rules, safety, environment?

Deceiving consumers and the voters with fraudulent numbers is what this about. It's not about reacting to globalization. It is about counting the hollowing out of US Manufacturing as actually manufacturing.

  • Yet no new employees are hired.
  • No new assembly lines or factories are built.
  • No new payroll taxes are being paid.

Manufacturing is about making things.

If you don't actually make it, you aren't a manufacturer.

Sorry if that offends you.

You may be a great designer. Broker. Outsourcer. Wholesaler, Distributor. Whatever.

But you aren't a manufacturer unless you actually make things.

Read Tim Aeppel's WSJ Story

What is manufacturing?

He's Lying Photo Credit


Editor's Note: CR4 would like to thank Milo for sharing this blog entry, which you can finish reading here.

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#1

Re: Manufacturing Defined: Making Things!

03/18/2014 1:01 PM

Making money doesn't count....

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#2
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Re: Manufacturing Defined: Making Things!

03/18/2014 1:33 PM

Making money does not define "manufacturing."

In fact for many companies, making money doesn't even make them a business some years.

The issue is what constitutes manufacturing, and wholesaling or importing are not manufacturing.

Milo

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Re: Manufacturing Defined: Making Things!

03/18/2014 2:08 PM

I said in a Tongue in cheek.......

The transition when a manufacturing company becomes a management company. I have see it happen, and it's usually due to surviving as a company.....

When it happens the company usually loses its core values and seemly progress without direction....... just to generate cash flow and profitability...

I have worked at such companies, and for me it unsettling.

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Re: Manufacturing Defined: Making Things!

03/18/2014 2:30 PM

I get it. I am sad to say it, as an MBA myself, but it usually coincides with the arrival of the MBA's...

Milo

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Re: Manufacturing Defined: Making Things!

03/18/2014 2:52 PM

The company that I worked...... its a transitional thing......... some manufacturers such as OEM's job items out....... it is cheaper...... and the focus is soon lost....... I worked at a company (Machine Shop) that was going into a ownership transition, and the original owner requirement to the new owner a stipulation of 'buying into' the company was that he had to get his MBA. (he already had an undergraduates degree in Chemical Engineering)

Well Manufacturing was replaced with enterprising selling, and the problem is, sure it works. but the people had to stay focused. I was only there for about a year. but every 2 months we had to get together and refocus to get back to enterprise selling......

I was left go because I did not fit the culture.......... which I agree.

Yet, I was hired back 3 weeks later as a contractor, due to customers requests.......... (At a very high hourly rate......... a little of enterprising selling of myself)

But frankly, after awhile it was more than I could take, I was not a fit there.

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#6

Re: Manufacturing Defined: Making Things!

03/18/2014 6:14 PM

"Deceiving consumers and the voters with fraudulent numbers is what this about.

But you aren't a manufacturer unless you actually make things."

Bravo!

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#7

Re: Manufacturing Defined: Making Things!

03/19/2014 9:44 AM

If I shop for items that are Made in the USA, I expect them to be fabricated and assembled wholly in the USA.

If the feds are trying to cast a shadow over the Made in the USA concept, I'll just have another reason to distrust our gov't and politicians.

It seems they are trying to eliminate the concept of Nationalism and National Pride at every opportunity.

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Re: Manufacturing Defined: Making Things!

03/19/2014 10:40 AM

Of course, Nationalism is 'bad for business' and makes Corporations cry.

If we the short-lived fleshy things are too wrapped up in things like 'national pride' and 'social welfare,' how can we properly grovel and worship at the feet of the Eternal, Undying 'True' People, the Corporate Personhoods?

With all the power grabs corporations have made in just the past few years, NAFTA, SOPA, Peoples United, the TPP, isn't it obvious that the Corps are trying to abolish nations, abolish religions, abolish personal freedom, and set themselves up as the rulers of the world, all in a bid for more and more power. They don't even care about Profit for Profit's sake, money is just how they keep score.

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Re: Manufacturing Defined: Making Things!

03/19/2014 11:43 AM

While I don't buy into the full scope of what you're describing, I do believe there is a good bit of truth in it. As well as having the politicians either bought off by the corps or trying to manipulate them to their own ends.

It appears nobody (or damn few) in a position of power does anything for the USA anymore.

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Re: Manufacturing Defined: Making Things!

03/19/2014 11:58 AM

Hyperbole and 'fear-mongering' seem to be what Americans respond to these days. The GOP appears to understand this, actively supporting the 'Extreme Right' as a way to make their own position seem 'centrist' and make the Democrats seem like 'commie liberal fascists' to their 'actual centrist' constituents.

(I know that Communism and Facism are separate, incompatible political entities, but again, you have the hyperbole; Commies are scary, Nazi's are scary, Commie Nazis must be even scarier than either group alone.)

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