The U.S. Machine Tool Industry and the Defense Industrial Base (1983) / Chapter Skim
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4 Problem Synthesis and Recommendations
4 Problem Synthesis and Recommendations
Pages 84-98
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From page 84... ...
machine tool industry is this Committee' ~ ob~ervat ion that the very business of selling stand-alone tools that cut, form, and shape mater ial in product ion processe s has changed radically. An discussed in Chapter 2, manufactur ing process improvement needs today are being met by a group of suppliers of computer and systems technologies in addition to the builders of the machine tools themselves.
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From page 85... ...
This global~zation of business has already taken place in such teas to industries as computers, telecommunications, steel, and -immure ial aircraft. ..~..~._~ The machine tool industry also appears to be subject to these same forces, which are fed by the more rapid diffusion of technology, changing economies of scale induced by new automated production techniques, lowering of transport and communications costs, and a narrowing of income differences between the United States and other industrialized competitors.
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From page 86... ...
, mergers, joint ventures, diversification into new technologies, more R&D spending, and even a basic reorientation of business strategy have been documented. In addition, as this report describes in Chapter 2, the structure of the machine tool industry is changing signif icantly.
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From page 87... ...
while several prime defense contractors are working with leading edge manufacturing technologies, the Committee is concerned that advanced manufactur ing technology is not as widely applied in this country as in Japan and Western Europe. While some of the world' s best production technology can be purchased in thin country, and while delivery time.
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From page 88... ...
The policy tools available to government range from grants and subsidies, to regulations directly affecting an industry, to other policies designed to provide the conditions that encourage certain desired activities In the case of the Department of Defense, the most direct influence that can be brought to bear upon the machine tool industry is through procurement. Additionally, DOD can subs tantially inf luence the lonq-term health of th e industry by supporting industry-wide ef forts to f ill two of its pr ime needs: better research in manufactur ing technology, and a knowledgeable customer for the resulting process technology.
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From page 89... ...
Action: DOD should create productivity improvement incentives within the machine tool industry in the form of a TechMod program for machine tool builders that well to the defense industry and to the DOD i tseLf .
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From page 90... ...
_ ~ ~ = ~ _ ~~ c ~ lie_ L a procurement might serve as a model. Action: DOD should consult with the National Machine Tool Builders' Association to establish a program encouraging individual machine tool f irms to bid directly for government contracts.
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From page 91... ...
Equip DOD research centers to make a more aggressive effort to make manufactur ing technology information available directly to potential adopters. Involve potential adopters in the R&D contract award process.
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From page 92... ...
Action: OOD should commission a study of recent consolidations, acquisitions, and joint ventures within the machine tool industry, with the aim of determining whether (1) such actions strengthen or weaken machine tool production in this country, and (2)
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From page 93... ...
Machine tool orders are a ~lagging" economic indicator; and this means that the industry needs a sustained economic recovery in order to regain a solid equilibrium. The Committee believes that a healthy macro-economy that provides continuous growth oared several years could be the most significant single contr ibutor to a healthy domestic machine tool industry.
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From page 94... ...
machine tool builders in world markets is essential both for the economic return and to ensure full awareness of foreign technological developments, productivity, and costs. In other words the global machine tool market is a reality in which U.S.
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From page 95... ...
The American machine tool industry should combat the reputation some companies have built for having a reluctance to be responsive to user preference in machine design and systems, a slow delivery record, and insufficient service. The changing technology will place increasing value on ~ full product support orientation as the basis for competition.
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From page 96... ...
CONCLUSION The U.S. machine tool industry displays the characteristics of a mature industry facing pressures to undergo fundamental change.
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From page 97... ...
Indeed, several government agencies, including the Department of Defense, the Department of Commerce, the International Trade Commission, and the Export-Import Bank, have planned initiatives aimed at developing more effective policies for the U.S. machine tool industry.
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