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“Session 2663 “

Global Competition and Its Effects on U.S. Manufacturing Industry

Mark R. Rajai, Carroll Hyder, William Biles East Tennessee State University/ University of Louisville

Abstract

This paper discusses the global competition and its effects on U.S. manufacturing companies and consumers. In order to compete effectively in the highly competitive global market, American firms must strive to produce high-quality products at low cost and with short lead times, while providing outstanding customer service. Some leading U.S. based companies such as Boeing have recently integrated latest technological innovations (IPTeam software by Nexprise, Inc) into their product development with great success. The results of a survey and the role of Concurrent Engineering and latest technological innovations in enhancing U.S. competitiveness in the world market are also presented.

I. Introduction

The competitive and intense manufacturing market and global economic recession have prompted many manufacturing companies to re-evaluate and reconstruct the process they undertake to design and manufacture a new product. Rapid changes in technology are changing the basis of competition throughout the world. Weakness in design and manufacturing capabilities in U.S. firms is often cited as a major factor in decline of their international competitiveness1. American companies not only have to compete with their traditional Japanese and European counterparts, but with a surge of the newly industrialized countries (NICs) such as China, Korea, Taiwan, and Malaysia. In order to compete effectively, American firms must strive to produce high-quality products at low cost and with short lead times, while providing outstanding customer service. They also must be able to deal with shorter product life cycles.

As the American manufacturing companies become more aware of their weakness, they are devoting attention to the process by which they define customer needs and product performance. They plan concurrently for design and manufacturing with full consideration of the entire product life cycle, including distribution, support, and maintenance. Some leading U.S. based companies such as Boeing have recently integrated latest technological innovations (IPTeam software by Nexprise) into their product development with great success.

The objective of this paper is to discuss the effects of global competition on U.S. manufacturing companies and what they are doing to maintain their international competitive edge. This paper is organized as follows. In the next section, we discuss American-made products versus foreign- made products and related surveys. We then present the problems that U.S. manufacturing companies are facing in their global competition. Next, we discuss some methodologies and innovative technologies that are being embraced and employed to help U.S. manufacturing to remain competitive in the global market. We then examine one such advanced technology

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Biles, W., & Hyder, C., & Rajai, M. R. (2000, June), Global Competition And Its Effects On U.S. Manufacturing Industry Paper presented at 2000 Annual Conference, St. Louis, Missouri. 10.18260/1-2--8409