Pent-Up ‘Puppy Demand’ Driving Discrete Manufacturing Growth

Sep 23, 2010 12:00:00 AM

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Below, we are proud to present a guest post by Bob Aronson, Industry Director – Microsoft Dynamics Manufacturing. Bob has over 20 years of experience in the manufacturing industry and has been instrumental in driving development and execution of Microsoft’s Dynamics Manufacturing Industry strategy.

We look forward to more posts from Bob in the future, and are always open to guest posts from our readers representing the manufacturing or warehouse management industries. For guest post consideration, please feel free to contact To-Increase.

Measured on a quarter-to-quarter basis, discrete manufacturing grew at an 8% annual rate in the 3 months that ended July 2010.  This growth is on top of the 5% annual growth rate in the 3 months that ended in April of 2010.

Industry Week reports predictions from the Manufacturers Alliance/MAPI stating that while positive growth in discrete manufacturing may slow, it is still likely to outperform the rest of the general economy.  So what are the underlying reasons behind this?  According to Daniel J. Meckstroth, Chief Economist for the MAPI the reasons could be seen as two-fold: pent-up consumer demand for durable goods (domestically and internationally) and enhanced business investments in equipment.

In terms of pent-up consumer demand, imagine walking by a store window each day and seeing the same adorable puppy.  Each day, you walk by knowing that while that puppy may make your life infinitely easier (ie a new friend, a new guard) you just don’t have quite enough to support him (or her).

And then finally, that day arrives where you have just enough cash on hand to take care of this puppy today – and at least through tomorrow.  And like many who have fallen for big brown eyes in the past, you walk into the pet store and scoop up your new friend almost uncontrollably – and you don’t give it a second thought.

Now – transform that adorable puppy into a durable good that will make your life infinitely easier regardless of where you live (ie a car, a washing machine). During this transformation, transfer that same feeling of pent-up ‘puppy demand’, and you have created the first reason why manufacturing is growing even if overall consumer spending is stagnant at best.

Of course, equipment to build these durable goods must be invested in to ensure this pent-up demand can be met.  Here-in lies the second reason for manufacturing’s growth.

Earlier this week, Luciano did a great job with his post advising you of how to ensure your discrete manufacturing strategy is ready to grow and face the storm of demand that may soon fall upon us.

By sharing with you some of the underlying reasons behind this growth, I hope you re-read his post and take to heart his sage-like advice.

A storm of discrete manufacturing demand is just beyond the horizon.

Dig in – it’s the one we’ve been waiting for.

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About Author
Luciano Cunha

Luciano Cunha

Chief Executive Officer (CEO) For Luciano, being responsible for To-Increase’s global sales and marketing means unleashing the company’s insight, innovation, and creativity to tell our story and help customers achieve their goals. On the road much of the time, he travels the world to meet with customers, understand their challenges and ambitions, and find the most effective ways to help them advance. Luciano develops and mentors our marketing and sales team, and creates strategies to help the To-Increase worldwide partner channel thrive and grow.
Making Customer Needs the Main Business Driver Luciano and his team have daily conversations with the To-Increase research and development organization to bring customers’ requirements and concerns into the road maps and design of our solutions. Luciano brings his insight to the marketing group to make sure the company’s communications resonate with customers and speak directly to their experience.
“I’m awed by customers’ innovative spirit in taking business management technology past its limits and by their generosity in letting us participate and empower them. I hope to transform our organization to become even more customer-centric than we are today. That means making more resources available to spend productive time with both our customers and partners, so we can ensure that we place into customer businesses effective solutions that fit the evolutionary stage of their operation and the way their people and processes work.”
Empowering a Global Channel
Because To-Increase only sells through partners, readying the channel to be successful in helping customers is a business-critical effort. Luciano aims to meet partners where their interests are. Partners who consider the relationship with To-Increase strategic can rely on our industry specialists to work with them as they plan their growth and serve customers. If partners prefer a less collaborative relationship, they still receive the rich To-Increase expertise and resources to ensure they win the business, perform a successful deployment, and retain a satisfied customer. In working with partners and their customers, Luciano brings to bear his experience of many years of creating successful, customer-focused business development and marketing strategies in many of the world’s countries and regions.
Enabling Customer Success in Challenging Business Environments
Looking into the near future, Luciano expects that customers will continue to expect To-Increase to help them make business sense of unfolding trends and technologies. For example, the internet of things (IoT) will thoroughly revolutionize manufacturing, engineering, and supply chains. Big data will be meaningful and valuable when decision-makers can use technology solutions to transform it into actionable business intelligence that supports key roles and business processes. Mobility will help companies become digital enterprises and move business processes forward from any location, at any time. Team To-Increase harnesses innovation to help customers translate the promise of these technologies into business results.
Before his current role, Luciano for several years was one of To-Increase’s global industry directors, responsible for our industry solutions. His experience also spans more than 17 years in IT and manufacturing management roles. These positions took him into various areas at IBM Brazil, serving as product manager for several software development companies, and included working in senior management at a manufacturing organization in the U.S.
Luciano is married with two young children. Away from work, he enjoys participating in a soccer class together with his son and daughter as well as taking relaxing walks in natural environments with his family.

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