Making up more than half of the world’s total GDP at $40 Trillion, nothing about the manufacturing space is small. Somewhere on its way to becoming the largest market in the world, manufacturing developed a problem with global implications: 20% of every dollar spent in the industry is wasted – adding up to $8 Trillion, or 10% of the global GDP.
This 20% economic waste is money that was spent that arguably, didn’t have to be spent due to inefficiencies in the process of manufacturing things. The waste comes from errors in design, in the iteration of prototypes, in expensive failed tools, parallel developments due to lack of engineering confidence, lost time due to failures upstream, missing parts holding up lines – and we’re not even accounting for physical waste.
Typically a 20% efficiency loss would be a red-alert issue, and we have a recent example as proof: for those products impacted by the US-China tariffs, which are economically at the same order of magnitude (10-25%), brands and manufacturers mobilized a massive undertaking to move supply chains they wouldn’t have imagined possible even a few years ago. Though on the same scale, manufacturing waste hasn’t been prioritized and optimization is slow at best.
This event exists to bring together leaders who are concerned with leaving behind the buzzwords and optimizing manufacturing for improved products, processes, and bottom lines. If you have questions about this event please reach out to communications@instrumental.com.
