Manufacturers Are Experiencing the Benefits of Big Data

In the article and exhibits presenting in How Software and Big Data are Changing Manufacturing in the United States, the author lays out a vast array of benefits manufacturers can experience when they incorporate big data analytics into their processes and decisions.  The manufacturing sector represents just 12% of the US GDP, but the actual dollar amount is $1.2 trillion of exported goods.  Furthermore, the US manufacturing sector has increased output 30% since the global financial crisis of 2009.  Any advantage manufacturers can gain going forward translates to incremental dollars in sales and cost savings.  Big Data is the key that is allowing manufacturers to save money, grow, and compete in an international marketplace.

Some of the distinct advantages big data gives manufacturers are in productivity, product development, and simulation based approach test new products.  The conclusions drawn by an Ohio University study suggest that manufactures could boost productivity by 30% by utilizing more flexible production techniques along with big data analytics.  Manufacturers could experience up to a 50% decrease in production development costs which translates to a 7% reduction in capital assets.  Another interesting path big data paving is a simulation based approach to testing new products.  An example of this is Volvo integrating customer data into its forecasts to understand if a new design will appeal to customers.

Finally, big data also creates value in the supply chain and is spurring change in the management of manufacturing.  In the supply chain, big data is predicted to be able to save 15-20% on transportation costs and help reduce inventory by 20%-30%.  Big data is changing the way manufacturing enterprises are managed as well.  Big data is creating a huge number of jobs, estimated at 1.5 million.  Managers now must understand what data is relevant and how to use this relevant data.  Not adapting to the big data world will result productivity decreases and manufacturers falling behind competitors who do utilize big data.  Its management’s job to become familiar with big data techniques and hire those who specialize in the data so that companies can stay ahead of the curve.

 

Will big data finally allow manufacturers to bring manufacturing jobs back to the US?

Do you think the future of big data is in the simulation side?

Do you think that current managers can differentiate between what data is useful and what is not?

http://www.dataversity.net/software-big-data-changing-manufacturing-united-states/

 

TPP: What’s in it for Australia?

In this article we will discuss the impact of TPP on Australia.

Over the long term, Australia would probably benefit from increased productivity and access for Australian industry to parts of Asia that are currently closed to it. However, the advantages for Australian consumers are not that obvious.

SUGAR– One of the most lucrative markets that Australia wants access to is America’s sugar consumers but this may be a struggle as the US sugar lobby is very powerful.

DAIRY- The US and New Zealand all want more access to Canada’s milk market, which the government has traditionally restricted supply to thereby keeping prices high.

MEDICINE- Currently, the government sets the highest price and also subsidizes the cost of these medicines. But the US wants the market to be less regulated to benefit new medicine manufacturers.

REGIONAL COOPERATION- Members of the TPP account for nearly 40 per cent of the global GDP and Australia would benefit from being part of the regional supply chain.

Current Situation

Many of the sweeteners that Australia are hoping for, including access to America’s sugar consumers and to Canada’s dairy market, are probably unlikely to happen. This has some National MPs starting a “no sugar, no deal” campaign, which demands Australia abandon negotiations if access to new sugar markets is not included. Also, there is speculation that the US could be using the agreement as a way of limiting China’s expansion. This has triggered a rival Chinese deal, the RCEP, which excludes the US and which Australia is also involved with.

Source- http://www.news.com.au/finance/economy/the-transpacific-partnership-agreement-whats-in-it-for-australia/news-story/418aaf44c026a90a6febfc908481c838

Beefy Boost

In a recent article on the website, The Cattle site, the impact of the U.S. waiting to approve the TPP deal on trade, is discussed. The only country to approve the TPP to date is Malaysia. Since there is no deal in place, tariffs on U.S. exports are extremely high. This is particularly crippling on the agricultural sector, as almost one third of gross agricultural income is through exports. The Japanese and other countries are concerned with what the U.S. will do with regard to the approving the TPP deal and are in a nervous “wait and see” mode. How can U.S. agriculture come out without too much loss? What will the U.S. ultimately do with respect to the proposed TPP deal? How will other countries respond to the U.S.’ actions?

Deal or No Deal?

In a recent article in, The Wall Street Journal, the ratification of the TPP by the involved countries is discussed. Japan is making a strong push to have their parliament ratify the TPP deal to help gain momentum for the deal in the US. Without the support of the US, the deal dies, and President Obama’s support is crucial to the deals ratification before he leaves office in January. The deal would help to open up free trade in the Asia-pacific region and eliminate costly tariffs for all parties, especially Japan. Will the deal get done in time? Will the US government ratify the deal if Japan does? What will be the implications if the deal doesn’t get approved by the 12 members?

Singapore Supports the TTP, Anticipates US Agreement

In the articles Singapore PM: Rejecting TPP Means War, Shifting Alliances in Pacific More Certain, the author examines how Singapore views the TTP and as well as how Singapore anticipates the US will sign on to the TTP, thus avoiding possible future conflict in the pacific.  These observations stem from the political meeting between President Obama and the Prime Minister of Singapore Lee Hsien Loong in August of this year, where Prime Minister Lee spoke at the White House about the TTP, and how not passing it could be potentially disastrous.

The TTP is a 12-nation trade agreement, which primarily has stalled out in the US congress.  Nonetheless, president Obama, a stark supporter of the TTP, and believes it will get passed.  Singapore’s Prime Minister pointed out that in the next 50 years, the major superpowers in the world can work toward interdependence and peaceful cooperation or towards rivalry and a higher risk of conflict.  Lee also pointed out that the reason there is manageable relationships between countries in the Pacific is because of mutually beneficial trade.  On the flip side, Americans are worried about localized job losses because of an agreement like the TTP, and Obama acknowledged this, though he did not give specifics on how such people will be helped should the agreement pass.

Singapore views the TTP through a Confucian mindset in that the trade agreement is about relationships between countries and how these countries balance their obligations and benefits of the agreement.  In the same thread, Lee likened the US to a bride in this relationship, in that if the bride does not show up, many countries will be hurt.  With both US potential presidential candidates against the TTP, it will be interesting to see what happens.  Surprisingly and optimistically, Lee ended the conference with a statement regarding Singapore’s previous dealings with US Democrats and Republicans, noting that relations have been good with either party in power.

 

Do you think that actual war could break out if the TTP is not passed?

Does the US have the most to lose, or gain, from the TTP?

Do you think that the presidential candidate elected will change his/her stance on the TTP once in office?

 

http://www.breitbart.com/2016-presidential-race/2016/08/02/singapore-pm-rejecting-tpp-means-war-shifting-alliances-pacific-certain/

 

The TPP, Trump’s wall, and Mexico

In the article “TPP May Hamper Mexico’s Apparel Industry” (http://news.apparelresources.com/trade-news/tpp-may-hamper-mexicos-apparel-industry/), the complex relationship between the TPP, the United States, and Mexico is examined. It is important to understand the current U.S.-Mexico relationship; last year the US exported “6.5 billion of apparel and textile to Mexico… $4 billion was fabric and $1.2 billion apparel parts”. There was also “$665M of textiles and yarn”, based on AAFA data. Likewise, Mexico sent “$4.5 billion to the U.S., about $3.5 billion of which was apparel and #1 billion textiles”. With such a successful relationship, what it happening? Upon inspection it appears that Mexico’s apparel “kryptonite” may be Vietnam. According to the article “eighty products is nothing compared to the 1,300 textiles categories that could be affected by this arrangement”. The second major hurdle for Mexico is Trump’s proposed US-Mexico wall. Mexico estimates that “$11 billion in trade flows could fall 20%, or $2.2 billion, in the wall’s first year”. What can Mexico do to elevate their apparel potential? Is it possible to form another deal with the US? What other potential avenues can they take to better their economic performance?

Trade minister: TPP dead and ‘buried’ if Trump becomes US president

An article posted on March 21st, 2016 in the Malay Mail Online, http://www.themalaymailonline.com/malaysia/article/trade-minister-tpp-dead-and-buried-if-trump-becomes-us-president, states that the Trans Pacific Partnership (TPP) will likely end if Donald Trump becomes the next US President and the world superpower opts to withdraw from the trade deal. Malaysian International and Industry Minister Datuk Seri Mustapa Mohamed believes that the trade deal would be ineffective without participation from the US seeing as it is the world’s biggest economy. According to Mustapa, “We don’t want to make a prediction but if Congress doesn’t agree with the TPPA, then TPPA will be buried because section 30 of the TPPA needs the participation of the US because they are the world’s largest economy, with 20 per cent of the global economy,” and “So when we negotiate TPPA without the US, then it’ll be less effective and have less meaning.” He also stated that Malaysia will not agree to the TPP if the United States seeks to push through any amendments to the current proposal. Donald Trump has already shown his feelings about the TPP, reportedly calling it the “biggest betrayal” of Americans, and claiming that the deal will result in job losses to US countrymen from massive work outsourcing. No one is certain who will win the United States Presidential Election this year, but it is very apparent that it will have a huge impact on Malaysia and all of the 12 countries involved in the TPP.

Do you think that the TPP will be buried if Donald Trump is elected president? Do you think that the US will back out of the TPP if Donald Trump is elected president?