In order for US manufacturers to thrive in today’s competitive world, several identifiable areas need improvement (see figure 1.1). While we do pay attention to and help where we can with issues involving Medical Reform, Fair Trade and Tax Incentives, Livingston & Haven’s greatest abilities to contribute center on helping US manufacturing improve their overall efficiencies.  

We strongly believe that investing in automation is an essential ingredient to the future of US manufacturing.

Consider a U.S. Census Bureau study conducted by Andrew B. Bernard of Dartmouth University and J. Bradford Jensen of the University of Maryland covering the years from 1977 to 1997. Their conclusions include:

• Single product manufacturers are more likely to fail than companies producing multiple goods.
• Manufacturing plants that export are significantly less likely to fail.
• A U.S. multinational is more likely to close a plant than a comparable domestic firm.
• Survival probabilities are greater for plants with high capital-labor ratios and for those with relatively skilled, higher wage workers.
• Surviving plants are 31 percent more capital intensive than plants that exit an industry.

They also found that marginal improvements in productivity levels can affect a manufacturing plant’s ability to survive.

• Survivor plants are 0.9% more productive than the average manufacturing plant
• They are 3.3% more productive than plants that fail.

Bernard and Jensen looked at many factors relating to the success or failure of a manufacturer.  However the most important factor cited and reinforced was:

• Increased capital investment provides one of the strongest determinants as to whether a manufacturing plant will survive and continue to prosper.

In order for US manufacturing to survive and thrive, they must take a new direction in their investment strategies.

The following observation from a recent Business Week article illustrates how an industry can simply fall behind.

In an effort to provide the answers to manufacturers that do not know where to turn or how to begin, we have formed collaborative evaluation teams that can provide something as simple as a one day survey of potential productivity improvements to detailed productivity roadmaps to follow for years to come.

In addition we have invested the dedication and commitment of each associate and all of our resources in helping manufacturers discover the most effective strategies for their needs. This is revealed through our corporate directives and demonstrated through the actions of our associates each and everyday.