Energy prices pose dangers to manufacturing sector


Reuters Business Channel |

Another example on the theme of costs and prices

“International competition may limit manufacturing companies' ability to pass on higher raw material costs to their customers, said David Huether, chief economist of the National Association of Manufacturers.

‘While they have better pricing power than a couple years ago, they're still being significantly hurt by rising commodity costs,' he said.”

The article DOES point out, at least, that lean is a strategy for reducing costs to get profits back in line:

“Cost cuts and better productivity have helped manufacturers to offset the burden, but these have been squeezed as far as they will go…. and a focus on “lean manufacturing” may help them weather a downturn.”

Now don't confuse “lean” with “cost cuts” meaning layoffs. Lean companies won't take the short-cut approach to slashing costs short-term with layoffs. Identify and fight waste instead!

Please check out my main blog page at

The RSS feed content you are reading is copyrighted by the author, Mark Graban.

, , , on the author's copyright.

What do you think? Please scroll down (or click) to post a comment. Or please share the post with your thoughts on LinkedIn – and follow me or connect with me there.

Did you like this post? Make sure you don't miss a post or podcast — Subscribe to get notified about posts via email daily or weekly.

Check out my latest book, The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation:

Get New Posts Sent To You

Select list(s):
Previous articleLocal firms are squeezed by gas prices
Next articleNo Experience Required?
Mark Graban
Mark Graban is an internationally-recognized consultant, author, and professional speaker, and podcaster with experience in healthcare, manufacturing, and startups. Mark's new book is The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation. He is also the author of Measures of Success: React Less, Lead Better, Improve More, the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, and the anthology Practicing Lean. Mark is also a Senior Advisor to the technology company KaiNexus.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.