Many people in the Pittsburgh area remain dedicated to turning out manufactured goods of the highest quality. But as we stare into the headlamps of new tariffs, there’s questions about our trading landscape.
Manufacturers have trepidation of what to expect next. Will it spark a trade war? Will it help us or hurt us? Who will it hurt? Will it bring back manufacturing? One congressman described the tariffs as “a huge wet blanket of uncertainty.”
However, when it comes to the short-term future of manufacturing, one thing is certain: the value of partnership. Partnerships are, perhaps, the best hedge against any risk — seen or unforeseen — in an environment of uncertainty.
Hedge your risk
Many are using their muscle to catalyze American manufacturing and create an industrial renaissance. Smart manufacturers know, however, that going it alone presents risk. Manufacturing extension partnerships with trusted parties make all the difference.
A trusted partner brings savvy and specialized experience: better ways to fabricate and avoid waste, strategically placed quality checkpoints, simplified bills of materials and streamlined specifications that make assemblies easier to produce, in less time, at a more favorable cost.
A smart, strategic partner brings another valuable component to the manufacturing equation: human capital and skill. There’s a shortage of skilled labor, particularly in the metal trades. This includes welders, machinists, complex equipment operators, etc., who can tip the scales in the direction of profitability and quality.
According to research by Deloitte and The Manufacturing Institute, nearly 3.5 million manufacturing jobs will likely be needed over the next decade. At present, 2 million jobs go unfilled. Eighty percent of manufacturers report a moderate or serious shortage of qualified applicants for skilled and highly skilled production positions. A valued fabrication partner can help fill that skills gap.
Working together
We’ve learned the value of partnership by being a valued partner. In the business of manufacturing and metal trades, fabrication poses risk in many ways and places. A smart partner knows this; your problems and successes become ours.
This can lead to grand slams on the factory floor, from a lean supply chain to a robust quality program, from value engineering and smart shortcuts to efficient material use and innovative cutting and joining methods. Moreover, a quality partner may know better ways to procure raw materials or mitigate price risk with hedging strategies. Their insight becomes your insight.
This is precisely what happened in our partnership with a machinery manufacturer. Its specifications were quite conservative and rigid, and we found unneeded design tolerances. With communication, the company understood that easing the design requirement would result in lower cost and easier fabrication.
In a value partnership — with a manufacturer that competes globally, with products that may include complex assemblies, subassemblies and not-so-easy-to-fabricate specifications — it has been our experience that knowledge sharing increases the probability of success.
As manufacturing anxiety rises (while tariff talk continues) and eventually settles, high-performing manufacturers have an opportunity to stick to the knitting — the kind that helped the industry of Pittsburgh’s yesteryear flourish — and take advantage of the value of partnership.
Eric D. Miller is the president of Miller Fabrication Services. Eric represents the third generation of Miller family leadership. The Brookville, Pennsylvania-based company is a metal fabrication partner for innovative OEMs with a global presence.
