Domestic manufacturers have an opportunity to become more effective globally through pre-competitive research.

Having spoken to many manufacturing executives from a wide variety of market sectors, the editors of Manufacturing Today have found the industry agrees that U.S. manufacturing can compete on a global scale through innovation and applications requiring advanced skills. Due to low-cost foreign markets, U.S. producers can’t compete in low-mix, high-volume manufacturing, but they excel when advanced technology comes into play. So, what can be done to promote growth through technology?

To encourage technological innovation in its industries, the Netherlands government has set up several Top Technology Institutes, which are comprised of a network of specialists from universities and private industry. These institutes allow companies and researchers to work to develop pre-competitive industrial innovation. Ensuring it is proactive in this research, the Dutch government provides the same incentives to foreign-owned and Dutch-owned companies, including tax credits, subsidies, legislation and partial funding for research, research institutes can receive grants from the Royal Netherlands Academy of Arts and Sciences or can develop contracts with the business community.

Companies such as Shell, Dow and Phillips have gone to the Netherlands to create new polymers and materials as well as to make progress in nanotechnology and sustainable energy. A number of OEMs have worked with Dutch firms and institutes to develop advances in high-tech automotive systems.

Is there a reason why U.S. manufacturers shouldn’t work together in the pre-competitive arena to develop innovations for the good of the entire industry?

Some U.S firms have already begun to work together in the pre-competitive arena to increase their manufacturing presence in the global market. Chrysler, Ford and General Motors have been working with the National Institute of Standards and Technology (NIST) to improve the automotive industry through technical research in the areas of digital/virtual tools, plant floor controllers and ergonomics. Additionally, members of the Semiconductor Industry Association (SIA) have been working together to ensure continued U.S. technology leadership, which has led to much of America’s high-tech growth.

“U.S. leadership in technology is under assault,” said Craig Barrett, CEO of Intel, in a statement. “The challenge we face is global in nature and broader in scope than any we have faced in the past. The initial step in responding to this challenge is that America must decide to compete. If we don’t compete and win, there will be very serious consequences for our standard of living and national security in the future.”

Now that major technology players are involved, smaller segments of the manufacturing industry need to get active. Manufacturing organizations also have to get involved to improve America’s position in the global market place. Right now, no pre-competitive research is mentioned on the National Association of Manufacturers’ Web site, but hopefully, that will change soon. If companies don’t work together to improve, what will happen to the U.S. manufacturing landscape?