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Manufacturing Industry and Quality Control Facts

The manufacturing share of the USA economy dropped from 21% in 1980 to 18% in 1990, 16% in 2000 and 13% in 2008.From 2000-2007 USA has experienced an average of 3% decline in number of employment.

Consider this now China’s manufacturing share has grown from 4% in 1990, 6% in 1995, 10% in 2000, 13% in 2005, 14% in 2006, and 16% in 2007 to 18% in 2008.

Number of manufacturing companies in Georgia is approximately 700. These employ about 9.2% of Georgia workforce. Georgia lost 52,400 jobs.

With recession all the impact felt like a big blow. Then in one of my network meetings I came to know that several of manufacturing companies have finally decided to close doors. If they are not able to match the price where developing countries are able to give US stiff competition there is no way these jobs will be retained. How to beat the labor prices cost of manufacturing, material, packaging and shipping along with following all the regulations for ISO certifications.

A lot many contracts are lost for price or want of certification.

So how does the offshored product get the same certified seal?

Has the quality changed for them?

Suppliers from other countries are still able to meet the quality and safety guidelines. Again, there is limited check for these regulations in imports. How much oversight can you have when a majority of products are off shored?

Does it mean the customer is satisfied? Maybe. The cost is a huge factor but if the product does not work well such great divide in the ratio of quantity vs quality will bear the consequence of lost customer loyalty.

Some of the manufacturers are coming back to USA; GE is moving manufacturing of its energy efficient water heater to USA which is about 400 jobs. Ford Motors, Caterpiller, NCR, are moving back to USA. The frustration of consumer over poor quality control, recalls, long product delivery cycle has made this return possible.

Quality Control is the biggest parameter which cannot be introduced at the end of product manufacturing but in each phase of its development. It is the only feature which will dictate if organizations  will make gains or loss in bid to one of the off shored manufactured product.

About Sunita Verma

Sunita Verma, Founder and President of Sync Resource started the company in 2009 with a vision to provide management consulting to small & medium size businesses around the country. Sunita holds a Master’s Degree in Mechanical Engineering from Cleveland State University, Cleveland, Ohio, Bachelors in Mechanical Engineering(India) with prestigious gold medal by then President of India and renowned Scientist Dr Abdul Kalam Azad. As an active philanthropist she believes in pay it forward and is a contributing member of charitable organizations like St. Jude’s Foundation and North Fulton Charities.

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One comment

  1. I am not surprised to see decline in manufacturing numbers. Even though there is a greater need for manufacturing now than before, global competition is what drives these numbers. 10 years ago it was more difficult for companies to compete on international level. However, with development of search engines and social media, practically any company can compete on international level.

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