Survival Strategy

According to Michigan Manufacturing International (MMI) CEO Jacob Prak there are two strategies for survival that U.S. manufacturers should employ: 1. target markets that benefit from lower energy and commodity prices, such as transporation; and, 2. modify supply chains to reflect the new realities brought on by economic changes.

When sharing manufacturing trends for 2016 and beyond in this interview, Prak stated that international sourcing will be an essential component of survival, "By intelligently sourcing some inputs from cheaper foreign sources, domestic companies will be able to concentrate on those activities that set them apart and continue to generate acceptable rates of return. Also, the commodity price swoon must be reflected in any manufacturer’s cost structure." 

Also noted in the interview is that U.S. manufacturers must be "technology leaders and only make products that are a unique competency for them; have geographically unlimited knowledge of customer requirements, production technology and supply chain capabilities; maintain a presence in multiple markets; and, properly use sales, marketing and purchasing resources to take full advantage of the strength of the dollar or the relative changes in U.S. versus international energy prices."

MMI produces assemblies, castings, stampings, machined parts, gears, bearings and more. Services include product engineering, manufacturing, inventory management and stocking programs.