Faced with low-cost competition, many manufacturing operations in Europe and the U.S. are under pressure to produce more with less. That pressure will only increase. For these operations, the time has come to pursue the lean manufacturing potential that has been dormant for well over a decade.
The current offshoring debate represents both a threat and an opportunity. Most unions, works councils, and governments in the West are undoubtedly becoming more desirous of a transformational approach in which dying brownfield plants are overhauled into highly productive factories. And senior management is more amenable than in past years to listening to creative and sometimes even futuristic concepts such as the “digital factory” and “instant manufacturing,” which hold out the hope of massive productivity gains. For all sides, the alternative is the wholesale destruction of a large part of a manufacturing base that once was the bedrock of Western nations.
Yet, despite the growing political will to do so, converting brownfield plants in Western Europe and the U.S. will not be easy. It requires a fundamentally different approach. We are optimistic, however, that if the issues are addressed head on, the promise of a new dawn for manufacturing in the West can, finally, become a reality.
Kaj Grichnik (grichnik_kaj@bah.com) is a vice president with Booz Allen Hamilton based in Munich. As a leader of research and practice in manufacturing, he has visited more than 350 plants in the past 10 years. He focuses on the pharmaceuticals, food, aerospace, and automotive industries.
Christian Basedow (basedow_christian@bah.com) is an associate with Booz Allen based in Frankfurt. His focus is on manufacturing transformation projects in process industries such as pharmaceuticals, chemicals, and oil.
John Hedgcock (john.hedgcock@cibavision.com) was formerly a principal with Booz Allen in Houston, who specialized in manufacturing and supply chain strategy and operations performance improvement. Currently, he is the director of global supply chain strategic planning for CIBA Vision.
John Potter (potter_john@bah.com) is a vice president with Booz Allen based in London. He focuses on value chain optimization, especially for consumer goods manufacturers and retailers. His areas of expertise include supply chain management, manufacturing performance improvement, and business integration.
