Small manufacturing business trends 2016
The question is, how...
Manufacturing has come a long way in the United States, which has paved the way for smaller manufacturers wanting to set up shop.
The question is, how are small manufacturing businesses doing and what trends are they following?
Here is a brief look at small manufacturers in the U.S. in 2015:
Small Manufacturers in the U.S.
There are a growing number of smaller manufacturers in the United States.
In fact, according to the American Small Manufacturers Coalition, there are more than 270,000 small manufacturers across the country as of 2015. And, a large percentage of those manufacturers have fewer than 50 employees.
In addition, U.S. manufacturing both large and small is responsible for 60 percent of exports in the country. That's nearly 12 percent of the United States Gross Domestic Product.
Based on the numbers above, it's plain to see that small manufacturing in the U.S. is a booming business.
Small Manufacturing Trends
Unlike larger manufacturers, small manufacturing businesses follow different trends when it comes to production.
By creating an atmosphere of fast and agile production schedules in combination with product customization, smaller manufacturers are able to stay afloat and compete with larger businesses.
As the following article looks at, one of the 5 financial tips for starting a business is establishing the cost of products.
In order to keep production costs low, smaller manufacturers are following the made-to-order trend. Instead of keeping an inventory, manufacturers are making products on demand.
This allows smaller manufacturers to customize products with each new order while avoiding overstock situations.
In addition, the made-to-order trend also allows small manufacturers to decrease supply chain costs by not over ordering certain supplies and materials.
Small Manufacturing Business Examples
Although the U.S. economy has seen some ups and downs, small manufacturing businesses of all kinds are still opening their doors across the country and finding success along the way.
Here are just a few small manufacturers that went into business in the last few years:
- Enviro-Log - Located in Fitzgerald, Georgia, this earth-friendly fire log manufacturing company only has 30 employees. However, the company's product is already being carried in such stores as Home Depot, Walmart, and Sears.
- Art's Way Manufacturing - With just more than 200 employees, this farm machinery manufacturer and distributor out of Armstrong, Iowa now ships its farm machinery all across the country.
- Green Toys - With just eight employees, Green Toys out of San Francisco, California manufactures children's toys made from 100 percent recycled materials. The company, which leases manufacturing space in a few different U.S. factories, has increased its sales by 50 percent each year for the past two years.
Even though small manufacturers don't produce the same products as their larger counterparts, they have the same business goals in common.
By avoiding such manufacturing pitfalls as overproduction and over processing, smaller manufacturing businesses are able to continuously meet sales goals.
Likewise, small manufacturers are increasing their quality control standards, which are resulting in fewer manufacturing defects. This allows smaller manufacturers to more accurately meet their budgeting goals by avoiding costly production imperfections.
When it comes to small manufacturers in the United States, more and more businesses are finding success.
Siemens: Providing the First Industrial 5G Router
Across a number of industry sectors, there’s a growing need for both local wireless connectivity and remote access to machines and plants. In both of these cases, communication is, more often than not, over a long distance. Public wireless data networks can be used to enable this connectivity, both nationally and internationally, which makes the new 5G network mainframe an absolutely vital element of remote access and remote servicing solutions as we move into the interconnected age.
Siemens Enables 5G IIoT
The eagerly awaited Scalance MUM856-1, Siemens’ very first industrial 5G router, is officially available to organisations. The device has the ability to connect all local industrial applications to the public 5G, 4G (LTE), and 3G (UMTS) mobile wireless networks ─ allowing companies to embrace the long-awaited Industrial Internet of Things (IIoT).
The router can be used to remotely monitor and service plants, machines, as well as control elements and other industrial devices via a public 5G network ─ flexibly and with high data rates. Something that has been in incredibly high demand after being teased by the leading network providers for years.
Scalance MUM856-1 at a Glance
- Scalance MUM856-1 connects local industrial applications to public 5G, 4G, and 3G mobile wireless networks
- The router supports future-oriented applications such as remote access via public 5G networks or the connection of mobile devices such as automated guided vehicles in industry
- A robust version in IP65 housing for use outside the control cabinet
- Prototypes of Siemens 5G infrastructure for private networks already in use at several sites
“To ensure the powerful connection of Ethernet-based subnetworks and automation devices, the Scalance MUM856-1 supports Release 15 of the 5G standard. The device offers high bandwidths of up to 1000 Mbps for the downlink and up to 500 Mbps for the uplink – providing high data rates for data-intensive applications such as the remote implementation of firmware updates. Thanks to IPv6 support, the devices can also be implemented in modern communication networks.
Various security functions are included to monitor data traffic and protect against unauthorised access: for example, an integrated firewall and authentication of communication devices and encryption of data transmission via VPN. If there is no available 5G network, the device switches automatically to 4G or 3G networks. The first release version of the router has an EU radio license; other versions with different licenses are in preparation. With the Sinema Remote Connect management platform for VPN connections, users can access remote plants or machines easily and securely – even if they are integrated in other networks. The software also offers easy management and autoconfiguration of the devices,” Siemens said.
Preparing for a 5G-oriented Future
Siemens has announced that the new router can also be integrated into private 5G networks. This means that the Scalance MUM856-1 is, essentially, future-proofed when it comes to 5G adaptability; it supports future-oriented applications, including ‘mobile robots in manufacturing, autonomous vehicles in logistics or augmented reality applications for service technicians.’
And, for use on sites where conditions are a little harsher, Siemens has given the router robust IP65 housing ─ it’s “dust tight”, waterproof, and immersion-proofed.
The first release version of the router has an EU radio license; other versions with different licenses are in preparation. “With the Sinema Remote Connect management platform for VPN connections, users can access remote plants or machines easily and securely – even if they are integrated in other networks. The software also offers easy management and auto-configuration of the devices,” Siemens added.