Community Impact stimulates the Manufacturing Multiplier Effect

Ever wonder whether or not having manufacturing within your local community is valuable?  Significant research has been performed regarding the economic benefit of manufacturing, and it is the driver of a healthy, vibrant community.  The impact of manufacturing is so significant on both local and regional economies that it has been given a name:  The Manufacturing Multiplier Effect.

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Outstanding Customer Service Makes or Breaks Small Manufacturers

Business-to-consumer (B2C) companies like Uber, Amazon, and Netflix have changed the way that consumers think about customer service. Other companies have taken the hint and prioritized customer service and convenience, from tech companies like Apple and Dell, luxury brands like Ritz-Carlton and Mercedes-Benz, customer relationship savants like American Express and GoPro, and everyone in between. This shift in B2C relationships has also impacted business-to-business (B2B) relationships, causing customers to expect more from their manufacturing suppliers.

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Environmental Policies Benefit Manufacturers

Sustainable and environmentally-conscious operations secure longevity and safety for future generations, but these considerations also impact businesses’ finances, reputations, hiring practices, and many other aspects. R&M is conscious of the state of the local neighborhood as well as impacts that manufacturers have on the world and uses environmentally-friendly policies and practices to minimize negative environmental impacts. Besides supporting the neighborhood and biosphere, initiating or strengthening positive environmental policies can also benefit businesses commercially and financially.

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The Shift to ISO 9001:2015 Certification

As of September 2015, the International Organization for Standardization (ISO) revised the quality management standards outlined in ISO 9001:2008. These standards impact businesses of all sizes, in all industries, including over 1 million businesses and organizations across over 170 countries. R&M Machine currently operates under ISO 9001:2008 certification and is shifting processes and quality management tools to meet certification requirements of ISO 9001:2015.

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Three Trends to Plan for in 2017

The last year brought a number of surprises, but overall positive growth to the U.S. economy and the manufacturing sector. Looking forward, 2017 looks bright, with trends towards economic growth and new technology taking manufacturing to new horizons.

Revenues, Profits, Hiring Look Up

With only a 1% rise in manufacturing revenues this year, that number is expected to grow to 4.6%, outpacing slower rises in labor and benefits costs, and costs of inputs. Hiring in manufacturing is also expected to expand, though modestly, mainly due to a lack of skilled workers required to fill vacant jobs. While markets soared immediately following the results of the election, economists predict these number to even out, as any policies enacted in 2017 are unlikely to produce such immediate, noticeable economic effects in big businesses. For specific industry outlooks, low food prices are expected to drive down buying in agricultural equipment, aerospace spending is likely to decline from consistent previous growth, but spending in oil, coal, and natural gas production and transportation are expected to increase.

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Additive and Subtractive Processes Complete the Production Equation

Starting with raw materials and milling, turning, or drilling down to the right shape has long been the known and preferred method for machine shop production. Over the years, process evolution has given subtractive manufacturing a diverse range of tools, devices, and methods for creating a wide array of parts and products. Beginning in the 1980’s, 3D printing reversed this process, building materials from the bottom up through a combination of CAD software and laser technology, first constructing simple objects like hammers and screwdrivers and now building complex, delicate items such as dental implants or aerospace components. Where they have been traditionally separate processes, many manufacturers are combining the advantages of each process in different ways to optimize production.

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