Tag Archive: Inland Empire

Which State Has the Most Manufacturing? The Answer Might Surprise You…

September 25th, 2019

According to an Industry Week article on the US 500: Top Manufacturing States, which state is #1 in terms of having the most manufacturing headquarters? California! Certainly, CA is not a manufacturing-friendly state in most places (although there is an initiative to create an advanced manufacturing consortium of excellence in the Inland Empire which is gaining support across the board). Manufacturers account for 10.93% of total output in the state and employ 7.2% of the workforce. Neither of these figures is #1 but the total output of $300 billion with an average of 1.3 million manufacturing employees does! #2 is Texas, followed by Illinois, Ohio and New York.

One of the reasons manufacturing is bucking the trends so far is that there are a vast number of consumers and companies in California, and in today’s Amazonian environment, rapid, customized deliveries are the norm. Thus, proximity matters. California is larger than all but 6 countries! The powerhouse of manufacturing is Southern CA. Additionally, California and specifically the Inland Empire is #1 in logistics in the U.S. According to research by a University of Redlands professor, logistics is at the center of what’s called an onion structure. It is the lifeline of the economy. Manufacturing co-locates or locates next to the logistics lifeline. Supporting services form the next layer of the onion, followed by all others such as retail, construction, leisure and hospitality.

What Should We Consider and/or What Impacts Could Arise?
For one, all this talk about “manufacturing being dead and gone to Asia” is obviously an exaggeration. In fact, we are starting to see executives look at reshoring as rapid delivery is of paramount importance. After all, everyone is scrambling to provide one-day delivery to keep up with Amazon, and B2B customers are expecting B2C service as well!

Further, we are seeing a SHARP increase in concern over high inventory levels to support these service levels. Some clients are concerned about the cost impact of tariffs and inventory levels and others are just becoming more focused on managing cash so they can better utilize existing resources to launch new products and services, invest in the business and more.

Since manufacturing is directly correlated to logistics, trusted advisors and other industries, it is worth paying attention. Start thinking about potential impacts such as the following:

  • Will your supply base change or move with the changing times?
  • Will capacity be available? Suppliers, transportation partners, manufacturing operations, equipment, skilled resources etc.
  • Are you agile so that you can meet changing conditions rapidly and without a significant hit to your customer experience or bottom line?
  • Do you have a skills gap? Please take our brief survey.

If there ever was a topic related to the resilient supply chain, this would be it! We have recently upgraded and added content to our resilient supply chain series.



The Highest # of Factory Jobs Since 2008!

May 1st, 2018

Supply Chain Briefing

According to Industry Week, we have the highest number of factory jobs since 2008!  We have reached over 12.6 million people employed by the sector. This is all the more impressive when we consider the significant rate of automation and deployment of technological advances occurring the last several years.  

In the era of the customer, executives are locating manufacturing in close proximity to their customers. Since customers expect rapid deliveries and high levels of customization, it is making more and more sense to locate manufacturing in Southern California and especially the Inland Empire with lower costs, extra space and access to top talent.  Are you prepared to grow?

What Should We Consider and/or What Impacts Could Arise?
Since manufacturing is transitioning from a necessarily evil into a strategic advantage supporting superior customer service, it is well-worth thinking about how you are positioned.  A

re you leveraging the opportunity if you are well-located by a significant customer base? What can you offer to provide customized, specialized experiences for your customer? Undoubtedly, the executives thinking this way will surpass their competition.  

Similar to retail shopping – if the store you go to doesn’t have what you want customized for you when you want it, what do you do? Buy from the competition! We don’t wait for products to arrive on a boat from China patiently.

Take note if you would pay more for customized, quick service.  I find that I am willing. Are your customers?



Manufacturing Strategy Expert, Lisa Anderson, Predicts Innovation as Catalyst for Inland Southern California “Place to Be” for Manufacturers and Distributors

April 26th, 2018

CLAREMONT, CALIFORNIA – April 25, 2018 –  Supply Chain and Manufacturing Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., sees innovation as key to the success of manufacturing.

“In order to be ahead of the curve and the competition, continuous improvement is no longer enough. Companies must innovate. Innovative products, processes, ideas, collaboration techniques, and technologies such as IOT, block chain and business intelligence allow manufacturers to maximize the customer experience and enable profitable, scalable, dramatic business growth.” explained Ms. Anderson.  In today’s Amazonian environment, we are in the era of the customer.  Innovation, rapid customization and manufacturing agility have led to a resurgence.

“Since the Inland Empire of Southern California is located in an epicenter of the population (larger than 25 states and part of California which would be the 6th largest country), it is an ideal location to provide a superior customer experience, highly customized product and service with rapid delivery. When added with its many advantages – access to high-skilled talent, technological and automation prowess, lower-cost space and labor costs vs. surrounding areas and top-notch manufacturing and supply chain programs and education such as Harvey Mudd, there is no better place to be” she said.

Ms. Anderson recently chaired the Innovation Awards at the 7th Annual Manufacturers’ Summit hosted by the Manufacturers’ Council of the Inland Empire. Awards were given for innovation in process, product, human capital and marketing, and included a special award to students.

“There is tremendous opportunity for manufacturers to thrive.  After all, we have set the standards for innovation since manufacturing became a powerhouse in the 1920’s. There’s every reason to believe that we can continue raising the bar and make Inland Southern California “the” destination of choice for manufacturers around the world” she concluded.

In support of manufacturing and the related industries, Ms. Anderson is President of the APICS Inland Empire Chapter and is taking on a greater role in Inland Southern California by becoming a board member for the Inland Empire Economic Partnership. She is moderating a panel at the Southern California E-Commerce and Logistics Summit on April 26th.

About LMA Consulting Group – Lisa Anderson, MBA, CSCP, CLTD

Lisa Anderson is the founder and president of LMA Consulting Group, Inc., a consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth Ms. Anderson has been named a Top 40 B2B Tech Influencer by arketi group, a 50 ERP Influencer by Washington-Frank, ranked in the top 46 most influential in Supply Chain by SAP, named a top woman influencer by Solutions Review and subject matter expert by HowDo. She recently published, I’ve Been Thinking, an inspiring collection of 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including supply chain, ERP and SIOP, Ms. Anderson is regularly interviewed and quoted by publications such as Industry Week, tED magazine and the Wall Street Journal.  For more information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com.



The Economy and the Inland Empire are on Fire!

April 17th, 2018

IE Forecasts
Since we attended not one but two economic forecast events last week (one hosted by Claremont McKenna and one hosted by the Inland Empire Economic Partnership), we thought it made sense to share the take-aways:

 

 

  1. The economy has never looked better especially in the Inland Empire – All the signs point up.  Even though folks are concerned about when the other shoe will drop, from an economic point-of-view, all appears positive.
  2.  Jobs at record levels with the Inland Empire leading California –  We are virtually at zero unemployment. Perhaps we need to be concerned about retaining our top talent!
  3.  Tax law is a boost for manufacturers! The Claremont McKenna economic forecast showed the progression and the definite boost from the tax law.  Not only is it increasing profit but it is also encouraging investment. It is likely to lead to interest rate increases as the Fed meets in 2018.
  4.  The Inland Empire is on fire!  First, did you know that just the Inland Empire is larger than 25 of the 50 states, let alone if we added the rest of Southern California?  It is leading California in many respects – job growth for one. And it is an attractive place to be in business, surrounded by tons of customers/ consumers, lower wages on average, more space availability at lower prices than Los Angeles and Orange County, access to a growing Ontario airport (with a new international direct flight to China soon) and with significant advances in technology and access to skills.We believe the IE is the place to be in manufacturing and distribution today! Amazon agrees since they have 21 of their 26 million square feet in Southern CA in the IE!
  5.  And a few cautionary comments…  There was a panel of CEO’s at the Claremont McKenna economic forecast that spoke about the California minimum wage hikes.  These are definitely not popular with manufacturers and distributors who utilize talent in the lower pay scales – challenging to compete with other states of course. At the IEEP, there was talk about the pace of automation and technology. From a profit, customer and competitive perspective, there are lots of advantages. In manufacturing, this is already prevalent and the impacts aren’t expected to be dramatically different.  However, in distribution, they are just getting started.  Although there are several positive points, it will be disruptive in terms of jobs and there will be a need to redeploy these blue collar employees.Lastly, trade can certainly impact the IE – stay tuned. In talking with two IEEP manufacturers, one said the tariffs helped, and the other said it could go well or really, really poorly depending on a few factors.

The IE is on fire and  growing!



World Logistics Center & the Sheer Relevance of Logistics

June 14th, 2017

There is no doubt logistics is relevant in the U.S. and the Inland Empire. During a presentation by the visionary behind the World Logistics Center in the Inland Empire, I heard several amazing statistics. One that stands out in my mind is the fact that the GDP of the 11 Western States would be the 3rd largest economy in the world behind the U.S. and China, largely due to the impact of international trade.

Going hand-in-hand with the sheer relevance of logistics is the fact that we’d be hard pressed to find any product solely made in any specific country. For example, Apple has 776 global suppliers. In partnering with several Southern California manufacturers and distributors, the picture below is not uncommon in terms of sourcing requirements to produce a product. The bottom line is that logistics can have a powerful impact on the world economy and on your customer experience and profitability.

World Logistics Center

What Should We Consider and/or What Impacts Could Arise?

Certainly, a good place to start is to not ignore logistics. It might seem like goods movement wouldn’t be that important yet it can have a profound impact, starting with the customer. Regardless of your supply chain network (whether you are a single manufacturing facility with local suppliers and local customers, a pure global network or anywhere in-between), you must think about your customers (both current and prospective). What type of service and experiences do you need to provide in order to gain customer loyalty? Once you know this answer, you can think further about your network and logistics implications.

Once you are evaluating logistics options, you’ll see the vast array of options and trade-offs. We are collaborating with a client currently to evaluate their supply chain network, and there are far more considerations than you’d think. Before jumping to a decision that you’ll be stuck with for the long-term, take stock of your current situation. Evaluate your forecast and future business. Consider innovative customer collaboration programs. There is a heightened interest in these lately! Understand your customer requirements, and align your supply chain network to these while optimizing sales growth/customer service, cash flow, and profitability.