Streamline Systems

Engineer to Order Will Define American Manufacturing Says Larry Cohn of Streamline Systems

Engineer to Order Will Define American Manufacturing Says Larry Cohn of Streamline Systems

 

Greenwood Village, CO -- (SBWIRE) -- 03/02/2012 -- The CEO of an elevator manufacturing company has a tough choice. Standard elevators can be mass-produced overseas, then shipped and installed in any building. Like most manufacturers, he or she is dealing with a constant competitive battle and ever-shrinking profit margins.

Alternatively, he or she can focus on custom lines (complex, unique, one-of-a-kind products) where margins are more attractive. Suddenly the benefits of outsourcing are lost; the product has to be custom engineered, with lower volume output employing highly specialized manufacturing processes. Custom machined parts are included and installation and custom fitting must be completed at the customer site or project.

Unique, one-of-a-kind solutions offer higher value. ETO manufacturers differentiate themselves in respective markets with customized products and solutions that cannot be easily mass produced. Higher value translates to higher margins and more competitiveness.

Aggressive, forward-thinking companies have already discovered that custom products provide significant value to customers and shareholders, while simultaneously improving the bottom-line.

The climate has never been better to join the growing number of companies who have taken the initiative to develop their engineer-to-order capabilities. The incentives are in place or growing.

Getting the most out of and ETO initiative.

Outdated technology or missing features limit the ability to grow business or even damage existing competitiveness. Trends in early 2012 still provide a compelling argument that Engineer to Order (ETO) or custom manufacturing is THE MOST EFFECTIVE BUSINESS STRATEGY in the current (and foreseeable) economic climate. According to Larry Cohn, Managing Director with Streamline Systems, “ETO Manufacturing keeps manufacturing in America. Custom manufacturing is not cost-effective when out-sourced; foreign manufacturers cannot handle variability and change while maintaining low costs.”

Unique, one-of-a-kind solutions have a higher perceived value to customers resulting in better profit margins for manufacturers when accurately bid and properly executed.

ETO – Made in America. One of the headlines from an early February USA Today article reads “Manufacturing a star of an upbeat jobs report.” According to the article, factories added 49,000 jobs in January. “Higher demand is finally kicking in, particularly in emerging markets”, says economist Cliff Waldman of research group Manufacturers Alliance/MAPI. Productivity gains that let makers put off hiring last year amid economic uncertainty are wearing thin.

The report continues with a comment from an engineer to order manufacturer in Kentucky. After keeping its 192-worker staff stable the past few years, Atlas Machine & Supply in Louisville added 10 workers the past 90 days and last month converted two temporary employees to full time. The industrial parts maker increased overtime last year. But Atlas President Rich Gimmel says, “You reach a point of diminishing returns when you work 70, 80 hours a week.” Plus, “The recovery seems to be getting some legs.”

New technologies provide more options for the ETO organization. The ability to tailor or mold the system to the business can provide significant value. Streamlining business processes or implementing a unique process that better serves the market can mean lower operating costs or increased customer service. Older systems may not allow the flexibility needed.

Microsoft Dynamics AX 2012 is built on the solid foundation of Microsoft business systems. The same people who deliver exceptional office applications like MS Excel and Word, design the role-tailored user experience of AX 2012. Streamline Systems found that AX 2012 enables ETO manufacturers’ IT team to leverage existing investments in Microsoft infrastructure, database and application technologies. AX 2012 is the most agile and flexible ERP system on the market today.

Over the past five years more manufacturers are combining repetitive product manufacturing with custom unique manufacturing. Whether ETO, engineer-to-order, BTO, build-to-order, ATO, assemble-to-order, there is a need for higher margin products and processes. From blogs to industry analysis whitepapers to the leading ETO Twitter conversation, Streamline Systems is leading the conversation.

The Streamline Systems’ ETO blog has quickly become the leading source of information about how AX 2012 serves engineer-to-order manufacturers. This content rich conversation is found at http://www.streamlinesys.com/blog/.

Additionally Streamline Systems just published a vital tool for Engineer-to-Order manufacturers; the white paper is objective and looks at the history, trends, and future of ETO manufacturing. The Streamline Systems ETO ERP white paper may be requested at: http://www.streamlinesys.com/engineer-to-order.php.

The most important interactive resource being offered currently is the engaging daily conversation about the unique characteristics and challenges of ETO manufacturers via Twitter. Tweets reveal how Dynamics AX 2012 is the most powerful, agile and simple ERP available.

Followers of ETO Tweets go to Twitter @StreamlineSysAX.