manufacturing trends 2013 mfg.com
DESCRIPTION
Presented at NTMA 2013, Jason Putnam from MFG.com discusses how to market yourself to buyers, what buyers care about, reshoring, why eSourcing has changed things and more | MFG.comTRANSCRIPT
Manufacturing Trends 2013
Jason PutnamVP of Sales/GM of the AmericasMFG.com and LiveSource.com
2
Agenda What does MFG.com do? NTMA Partnership Re-Shoring “Buyers” – What are they? Why has eSourcing changed everything?
Enterprise eSourcing Pride always comes before the fall… Success Stories
3
What does MFG.com do?
MFG.com is the world’s largest manufacturing marketplace, helping buyers and suppliers conduct more than $115 billion in business
MFG.com delivers unique value to different audiences Buyers find and qualify manufacturers more efficiently Manufacturers grow sales and profits while increasing
capacity utilization Supply chain professionals improve risk mitigation and
management
4
Marketing to Buyers The majority of our efforts go into
attracting great buyers The majority of our marketing dollars
and time go into attracting great buyers
5
Partnerships
6
Last 30 Days on MFG.com
7
NTMA and MFG.com Partnership
Joint effort to aid contract manufacturers and machine shops grows
Co-branding initiatives focused on re-shoring
Connecting MFG.com buyers with NTMA suppliers
Private portal for NTMA members to conduct business with each other
Discounted rates and incentives for NTMA members
Re-ShoringIs it a real thing?
9
A Manufacturing Economy in Decline
“Manufacturing activity fell more than analysts expected”
“Preliminary reading of 50.5 for April, down from the final level of 51.6 for March”
“Decline reflected weakness in both domestic and export markets”
“Signs of slowing expansion are spreading across Asia”
Manufacturing economy is probably “bottoming out”
10
A Manufacturing Economy in Decline
China Stock Market – Last 2 Years
11
Global Natural Disasters
Sony, Panasonic, Toshiba, Canon, General Motors, Caterpillar, Boeing, Intel, Apple, Texas Instruments, Ford, Cisco, Hewlett-Packard, National Semi-Conductor
12
Tsunamis & Floods
Toyota (reduced operating profit by $1.6 billion), Ford (lost production of 30,000 vehicles), Lenovo (shortage of hard disks), Canon and Sharp
Volcanic Ash Cloud
13
Airline industry, Food importers/exporters, Nissan
14
Chinese Natural Disasters
A total of 38.25 million people in China were affected by natural disasters last month, seeing direct economic losses of about 28 billion Yuan
15
China Snap-ShotWhy the movement? Increased shipping costs Increased labor rates Long lead times Inability to correct mistakes Trust of intellectual
property Lack of payment terms Language barrier Time zone difference Travel cost Currency exchange
Manufacturing costs in China to equal US by 2015
16
A Manufacturing Economy on the Rise
Credits improved U.S. competitiveness and rising costs in China
Re-shoring movement represents a major reversal over the early 2000s
Manufacturing firms are bringing their operations closer to home
“As a result, we’re now seeing some disappointed manufacturers moving production back into the U.S.”
40% of surveyed suppliers have benefited from re-shoring work in 2012 – expected to rise in 2013
17
A Manufacturing Economy on the Rise
US DOW – Last 12 Months
18
A Manufacturing Economy on the Rise
19
Re-ShoringIt is real and it is here. Have a plan in place.
Buyers – What are they?
21
Direct vs. Indirect
Indirect Direct
22
Manufacturing Process
Design Source Make Assemble Ship Sell
23
Roles
Design and Engineering Supply Chain Sourcing Procurement
24
Buyers Care About… Quality Diversity On time delivery Risk Stability Sustainability Ease of doing business Price
Why has eSourcing changed everything?
26
The Ecosystem – Pre 2000
27
The Ecosystem – Post 2000
28
Buyers use the Internet
29
Buyers use the Internet
What information can Buyers find?
Fabrication Shop
Duns # Cage Code ATSM DOT HUB Zone
30
Machine Shop Duns # Cage Code ITAR Small
Business
Machine Shop Duns # Cage Code AS9100 ISO9001:2008 ITAR Small Business
Fabrication Shop
Duns # Cage Code ISO9001:2008 Small Business SDVO
Enterprise eSourcing
32
Enterprise Clients
A cloud based eSourcing and supplier management solution combined with the
power of a global supplier marketplace
33
How MFG.com Simplifies Enterprise Sales
Enterprise accounts pay to use platform Corporate mandated adoption and usage
Filter and match needs to your capabilities Focus on just a few instead of thousands
Lower hurdles Simplify registration Convert jargon to plain language Reduce volumes of info to only what is relevant
34
Growth StrategyVertical Targets
Medical Automotive/
Construction Aerospace/Defense Diversified
Manufacturing Consumer Products Private Equity
35
Doing Business with Them
These accounts will release millions of dollars worth of parts this year and
MFG.com will make it easier for suppliers to quote and win these jobs.
Have a plan in place.
Pride Comes Before the Fall
37
Pride Comes Before the Fall The internet is not going away Average buyer sourcing online is under 30 years
old Price is not the only thing buyers care about Buyers will not walk in your door with prints Fair market value is fair market value, whether
you agree with it or not Zip Codes are not important You must be in the right place at the right time
all the time – have a plan to be found and to findYou can take back control.
38
Pride Comes Before the Fall
The Proof
40
The Proof
41
The Proof – Be Found
42
The Proof – Be Found• 559 unique Inbound Leads
in the last 12 months• 371 from Search Engines
and Directories• 188 from registered
MFG.com Buyers
43
The Proof – Go Find Machining - $54,167,000 Molding - $9,157,531 Fabrication - $3,313,000 Assembly - $1,100,000 Stamping - $1,050,000 Casting - $985,000
44
The Proof – Go FindLead 1
Lead 4Lead 3
Lead 2
45
The Proof – Go FindMachining of Castings Milling and Turning
Find a new supplier for an existing design Find a new supplier for a new design
Milling and Turning
46
The Proof – New Business
• Recently awarded RFQs
47
The Proof – Happy Customers
• 21 unique customer ratings• Could you use this type of
scorecard at an event like this?
48
What Success Looks LikeNew customers acquired through MFG.com since Nov 2011
49
The Proof – Net Results Found over 550 times on search engines by non-
registered MFG.com buyers Found over 180 times by registered MFG.com
buyers 75+ emails from buyers 30+ phone calls from buyers 70+ clicks on Spargo website 403 special invites to quote private RFQs Market as a preferred vendor over 50 times Over 50 awarded RFQs on the marketplace Is Spargo a better company than you?
50
Closing
Re-shoring is real Buyers are looking for new suppliers eSourcing is here to stay Enterprise eSourcing is the future You must be in the right place at the right
time all the time
Have a plan in place and execute.
51
Questions / Comments