Manufacturers Assisted by IMEC Report $448 Million in Gains;.... Center experts help manufacturers improve productivity and competitiveness
DATELINE: PEORIA, Ill. Nov. 6
PEORIA, Ill., Nov. 6 /PRNewswire/ -- Small and mid-sized manufacturers expect to realize nearly $448 million in sales, cost savings and employment gains as a direct result of working with the Illinois Manufacturing Extension Center (IMEC), according to FY '06 results released by IMEC. Last fiscal year, the non-profit IMEC served 450 Illinois manufacturing clients, helping them implement world class manufacturing strategies, advanced production techniques, and cost-saving technologies. These companies reported that, on average, the technical expertise and coaching provided by IMEC will help them increase/retain sales by $1,308,000, cut operating costs by $231,000, increase capital spending by $553,000, and create and retain 11 jobs.
"These impact results are especially encouraging in light of the significant economic challenges that domestic manufacturers confront," said Bob Weinstein, IMEC President. "It shows that manufacturers who commit to continuous improvement can achieve breakthroughs in performance that will help them compete over the long-term."
Rising business costs, coupled with imports from low-cost foreign producers have forced many manufacturers to make dramatic changes in how they operate. When manufacturers can't increase prices to offset rising structural costs, they can only reach their profit targets by operating at the highest level of efficiency. IMEC provides a number of solutions to help companies address this challenge.
"As an example, many more companies have begun to embrace Lean Manufacturing," said Weinstein. "Lean enables manufacturers to produce to actual demand rather than forecasts, reducing inventory costs and allowing production to flow more efficiently at the pull of the customer's order. The quicker the product goes from raw material to shipment, the more money companies will make." Last year, IMEC conducted 188 process improvement projects utilizing lean techniques. These companies reported a 228-to-1 return on their investment in IMEC's assistance.
Weinstein also indicated that smaller manufacturers have begun to realize that they can compete globally by providing a total value to their customer. This can include offering design support, logistics, packaging, or any other value added component that customers are willing to pay for. While margins have disappeared for certain highly repeatable commodities, some manufacturers are developing niche products and services that they can succeed with.
Another stride made by IMEC in FY '06 was to collaborate with larger manufacturers to help their suppliers improve performance. IMEC managed Boeing's Illinois Supplier Training program, worked closely with Deere & Company and their suppliers, and built on a long track record of working with suppliers to Caterpillar Inc.
"The large companies all essentially want the same things from their suppliers: speed, quality, and capacity. That's what we help them deliver," said Weinstein. "In the future, we'll be even more involved in working with them to support new product introductions and bigger, more complex programs."
IMEC directly employs 30-plus specialists based at eleven Illinois' office locations. Partially funded by the Illinois Department of Commerce and Economic Opportunity, the U.S. Department of Commerce, and service fees, IMEC reaches out to small and mid-sized manufacturers who typically have great potential to succeed, but often do not have the internal expertise or time to focus on making the changes necessary to compete long-term.
CONTACT: Tucker Kennedy, VP - Marketing and Public Relations, of
Illinois Manufacturing Extension Center, +1-309-677-4633, tkennedy@imec1.org
Web site: http://www.imec1.org/
SOURCE Illinois Manufacturing Extension Center