Manufacturing Trends 2013

Jason PutnamVP of Sales/GM of the AmericasMFG.com and LiveSource.com

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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

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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

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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

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Partnerships

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Last 30 Days on MFG.com

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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?

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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”

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A Manufacturing Economy in Decline

China Stock Market – Last 2 Years

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Global Natural Disasters

Sony, Panasonic, Toshiba, Canon, General Motors, Caterpillar, Boeing, Intel, Apple, Texas Instruments, Ford, Cisco, Hewlett-Packard, National Semi-Conductor

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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

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Airline industry, Food importers/exporters, Nissan

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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

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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

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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

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A Manufacturing Economy on the Rise

US DOW – Last 12 Months

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A Manufacturing Economy on the Rise

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Re-ShoringIt is real and it is here. Have a plan in place.

Buyers – What are they?

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Direct vs. Indirect

Indirect Direct

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Manufacturing Process

Design Source Make Assemble Ship Sell

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Roles

Design and Engineering Supply Chain Sourcing Procurement

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Buyers Care About… Quality Diversity On time delivery Risk Stability Sustainability Ease of doing business Price

Why has eSourcing changed everything?

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The Ecosystem – Pre 2000

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The Ecosystem – Post 2000

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Buyers use the Internet

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Buyers use the Internet

What information can Buyers find?

Fabrication Shop

Duns # Cage Code ATSM DOT HUB Zone

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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

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Enterprise Clients

A cloud based eSourcing and supplier management solution combined with the

power of a global supplier marketplace

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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

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Growth StrategyVertical Targets

Medical Automotive/

Construction Aerospace/Defense Diversified

Manufacturing Consumer Products Private Equity

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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

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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.

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Pride Comes Before the Fall

The Proof

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The Proof

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The Proof – Be Found

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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

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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

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The Proof – Go FindLead 1

Lead 4Lead 3

Lead 2

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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

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The Proof – New Business

• Recently awarded RFQs

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The Proof – Happy Customers

• 21 unique customer ratings• Could you use this type of

scorecard at an event like this?

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What Success Looks LikeNew customers acquired through MFG.com since Nov 2011

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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?

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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.

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Questions / Comments