Featured Image

Building Successful Manufacturing Partnerships for the Future

The more complex the global marketplace becomes, the more attractive the idea of partnership is to many companies. Companies typically enter partnerships to seek benefits they cannot access themselves, and they seek partners for several reasons...
by Ryan Kelly
Jan 29, 2021

Authors: Ryan Kelly, Tim Shinbara

The more complex the global marketplace becomes, the more attractive the idea of partnership is to many companies. Companies typically enter partnerships to seek benefits they cannot access themselves, and they seek partners for several reasons, including access to complementary capabilities, greater financial strength, access to new markets, to pool resources, or to reduce risk. As such, companies that partner may gain an advantage in the marketplace over companies who lack the skills to collaborate effectively.

Although there are many different types of partnerships, principal partnership models include:

  • Supplier/customer partnerships: Partnerships in which the parties have done business together.

  • Partnerships between peers/competitors: Partnerships where companies pool resources to gain a benefit too expensive to acquire alone, such as access to an advanced technology.

  • Joint development partnerships: Partnerships where companies jointly pursue a venture such as access to a new market or to gain scale efficiencies by combining assets and operations to share risk for major investments or projects.

  • Corporate/startup relationships: Partnerships where the larger company typically provides financial resources, and the startup provides a new technology or service.

  • Public-private partnerships: Partnerships between private companies and entities at local, state, or federal levels. At the federal level alone, there are 58 programs in 11 federal agencies that provide support to U.S. manufacturing with hundreds of millions of dollars in aid available.

  • Academic institutions: Partnerships in which companies often obtain early-stage research from universities and gain access to the best scientific and engineering minds in specific domains. 

Successful partnerships don’t just happen without effort. Strong partners set a clear foundation for business relationships and nurture them. They emphasize accountability within and across partner companies, and they use metrics to gauge success. They are also flexible and willing to compromise if needed. Focusing on these priorities can help partnerships thrive and create additional value. While pursuing partnerships requires effort, and there may be tradeoffs, the work and preparation necessary to make your company a good partner – greater self-awareness, ability to generate alignment, strong communication skills, ability to learn and incorporate learnings into strategy – will very likely help make your company a stronger business in the long run.

For some companies, partnerships are the essential ingredient to grow and thrive in an increasingly complex and unpredictable marketplace. In the near future, a company’s collaborative advantage – the ability to leverage effective strategic and operational relationships with other companies – could be more fundamental to winning than what we refer to as competitive advantage today.

To read more about the value of partnerships in industry, read the full white paper here.

PicturePicture
Author
Ryan Kelly
General Manager, San Francisco Tech Lab
Ryan Kelly is the General Manager of AMT’s San Francisco Tech Lab. Ryan focuses on addressing the key challenge in manufacturing of technological inno ...
Recent intelligence News
Russ Waddell, MTConnect Institute managing director, was honored as one of 25 leaders transforming manufacturing by SME. Waddell was recognized for his work at the MTConnect Institute supporting the advancement of the free, open industry MTConnect...
Today, AMT and the larger manufacturing technology community face a period of immense change. The advent of transformative technologies and the digital revolution has already begun to alter how we do business and has shown new opportunities for growth.
Companies who haven’t done the work in areas like collaboration and communication will have a higher rate of failure. Technology advances promise to help manufacturers thrive in an increasingly competitive and turbulent world. Readers of the articles on...
Company knowledge and expertise is a strategic asset and a source of competitive advantage in business. Knowledge management technologies, processes, and applications enable a company to identify, collect, store, evaluate, retrieve, and share digital...
If you want to understand the future of work, observe closely what the telcos are doing, and what they’re investing in. Even after COVID-19 subsides, it’s likely that our technology landscape is forever changed. In the U.S., for example, an estimated...
Similar News
undefined
International
By Arun Mahajan | Mar 26, 2021

India’s PMI continues to maintain its 57-plus run while vehicle, motorcycle, and scooter sales are off to a strong start. India, the world’s largest producer of two-wheelers, sold more than 1.3 million motorcycles and scooters in February alone. 

4 min
undefined
International
By Fred Qian | Mar 15, 2021

In 2020, a year full of challenges, China’s GDP grew 2.3% and is expected to expand 6% in 2021. This year is off to an impressive start with auto production growing leaps and bounds. New energy vehicles (NEV), particularly EVs, showed a 286% YOY increase.

3 min
undefined
International
By Arun Mahajan | Mar 01, 2021

This year, India is predicted to have the highest GDP growth of any large country at more than 11%. The PMI is above 57, and business has resumed at almost pre-pandemic levels.

2 min