I’ve made it my personal crusade to keep a focus on the fundamental importance of productivity to manufacturers, to the Manufacturing Extension Partnership (MEP) program at the National Institute of Standards and Technology (NIST), and to the MEP centers that do the daily work of helping small manufacturers boost their performance. It may seem strange to consider productivity right now, given the current environment, but it remains important to both national economic and business success. Indeed, productivity will be even more critical as we recover from the current health and economic crisis.
Currently, there is significant excess capacity of both capital and labor that we can reengage to help the economy grow faster and return to full employment and capacity utilization of plants. In his 2004 book, The Power of Productivity (University of Chicago Press, 2005), William Lewis argues that the real solution is not necessarily more capital or working smarter (although these things certainly help), but rather how a company organizes and deploys its capital and labor.