Businessweek: Manufacturing Turning into Music Industry

Standardization and mass production once characterized the American manufacturing industry, but that is quickly changing. Thomas Rings and Sandra Niewiem of "Bloomberg Businessweek" say manufacturing is about to become much like the music industry because of the availability of high-tech processes such as 3-D printing. If manufacturing companies are going to survive these industry-wide changes, executives and line managers must be willing to change the way they do business.

Rings and Niewiem say the manufacturing industry will be like the music industry because manufacturers will be involved in the business of selling digital codes. They cite Nokia as an example; the company recently released a 3-D printing development kit to accompany one of its phone cases. In the future, mechanics and other service providers will be able to buy product blueprints and use 3-D printing technology to print needed parts for repairs and upgrades. Like companies in the music industry, manufacturing companies must be able to shift their priorities from standardized production to the development and sale of digital products.

Although 3-D printing costs more than traditional manufacturing, several companies are embracing the new technology before necessity forces them to change their manufacturing processes. Xerox executives understand the cost savings associated with using 3-D printing to create fixtures and assembly tools. BMW and General Electric are also overhauling their business operations to meet the changing needs of customers. Disney has even started using 3-D printing to produce expressive eyes for its animatronic action figures. There are still some barriers to using 3-D printing in manufacturing, but innovative entrepreneurs and government officials could come up with workable solutions to concerns about product quality and intellectual property.

Companies in the music industry have also had to adjust to the social component of producing and distributing music. Social media and other inexpensive marketing tools have made it possible for independent musicians to share their music with the masses instead of signing with record labels and relying on those labels to produce albums. Music industry experts who did not change their strategies in response to this trend found themselves in trouble, while companies that embraced the social aspect of music production and distribution thrived. If manufacturing executives want to learn from the music industry, they should pay attention to how successful companies changed their policies in response to changing industry trends.    

Mass production is no longer a sure way for manufacturing companies to succeed, as many customers are demanding customized products made with advanced processes. Manufacturing executives should take their cues from successful music industry professionals, as those professionals have managed to survive a revolution in the way music is created and delivered to people around the world. Manufacturing professionals who refuse to embrace new technology will find it difficult to keep their companies afloat as trends change.

(Photo courtesy of stuart miles / freedigitalphotos.net)