MIT-Siemens Study
finds global competitiveness, energy efficiency are top concerns of U.S. manufacturers
September 30, 2005
CAMBRIDGE, Mass., & NEW YORK, N.Y., Sept. 30, 2005 - A looming global energy crisis and increased pressure for globalization are just two of the primary issues facing U.S. manufacturers today, according to a recent survey by the Massachusetts Institute of Technology (MIT) Sloan School of Management and Siemens. The survey data, which was unveiled at today's Siemens–Forbes Innovation Summit in New York, shows that 59 percent of U.S. manufacturers believe that their customers and consumers doubt their ability to keep up and compete with manufacturing on a global scale.
In addition, the study found that 44 percent of U.S. manufacturers believe energy efficient automation technologies will have the greatest impact on their business over the next five years. With a global energy crisis looming, it is critical that U.S. manufacturers address the threat of rising costs and growing doubt from their customers and consumers. However, when asked if technology improvements alone could drive their future global success, 66 percent said that all investments must be accompanied by related process improvements to truly affect the organization and industry.
"The survey results clearly point to technology as a key determinant of a manufacturer's global competitiveness," said David Simchi-Levi, Co-Director of MIT's Leaders for Manufacturing Program and Professor of Engineering Systems at MIT. "However, manufacturers are keenly aware of the uphill battles they have to fight, including economic forces, off-shore wages, energy availability and cost, and the need for constant process improvement – an area where fortunately the U.S. still excels in comparison to its competitors."
The study findings served as the basis for discussion at the Siemens-Forbes Innovation Summit hosted by George Nolen, President and CEO, Siemens Corporation and Steve Forbes, President and CEO, Forbes, Inc. and Editor-in-Chief, Forbes. The Summit featured keynotes and interviews with The Honorable Edward Rendell, Governor of Pennsylvania; The Honorable Al Frink, Assistant Secretary for Manufacturing and Services, International Trade Administration, U.S. Department of Commerce; Don Johnson, Group Vice President, Global Operations and Engineering, DuPont; and Mohammad Zaidi, Chief Technical Officer and Vice President, Alcoa. In addition, attendees addressed critical competitive issues in discussions hosted by Forbes Senior Editor, Bruce Upbin, entitled "The Need for Speed" and "How to Flourish in a ‘Flat' World."
"Siemens is driving the manufacturing industry to be more innovative by developing manufacturing technology solutions that help companies improve quality and cut production time. The survey results tell us that we have made great strides in helping our customers stay competitive in the U.S., but the results also indicate we have a perception problem in the U.S. and that the challenges we all face are not getting any easier," said George Nolen. "Siemens initiated this innovation summit with Forbes as a way to strengthen the dialogue between the public and private sectors to learn what we can do to mitigate challenges, stimulate technology investments and strengthen the image - and output - of American manufacturing."
The MIT Sloan–Siemens study on U.S. Manufacturing polled executives of top manufacturers on a wide array of issues that probed their insights into the state of American manufacturing amidst an increasingly borderless world. The study was conducted between August and September 2005.
About the MIT Sloan School of Management & Leaders for Manufacturing Program
For over fifty years, the MIT Sloan School of Management, based in Cambridge, Mass., has been one of the world's leading academic sources of innovation in management theory and practice. With students from more than 60 countries, it develops principled, innovative leaders who improve the world. The Leaders for Manufacturing (LFM) program, created in 1988 in response to the need for U.S. companies to become more competitive, is a collaboration among MIT Sloan School of Management, MIT School of Engineering, and industry partners. LFM students, graduates, faculty, and partners research and implement principles of manufacturing excellence to propel global socio-economic prosperity. LFM's two year dual-degree academic program is sponsored jointly by MIT Sloan and MIT's School of Engineering and resides within MIT's Engineering Systems Division, an organization whose interdisciplinary academic programs and research centers address the technical, managerial, and socio-political challenges of large-scale, complex engineering systems.
About Siemens
Siemens AG (NYSE:SI) is one of the largest global electronics and engineering companies with reported worldwide sales of $91.5 billion in fiscal 2004. Founded more than 155 years ago, the company is a leader in the areas of Medical, Power, Automation and Control, Transportation, Information and Communications, Lighting, Building Technologies, Water Technologies and Services and Home Appliances. With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $16.6 billion and employs 70,000 people throughout all 50 states and Puerto Rico. Thirteen of Siemens' worldwide businesses are based in the United States. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 440,000 people in 190 countries. For more information on Siemens in the United States: www.usa.siemens.com .