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S. market. A declining ability of the United States to supply its own manufactured goods, however, would fundamentally change the relationship between this country and foreign manufacturers. Domestic companies would have less revenue and incentive to pursue strong research and development programs, leading to less innovation and invention and fewer patents. S. S. market. S. manufacturing in purely economic terms. Clearly, each individual industry need not survive, but manufacturing as an economic activity is too important to let decay.

THE ROLE OF ADVANCED TECHNOLOGY IN FUTURE MANUFACTURING 37 however, to expand and enhance both the hardware and software technology to allow high-volume production of complex parts (see Appendix A). Manufacturers in the future are likely to find that the responsiveness provided by CIM is a necessary competitive advantage. By providing virtually immediate information on every aspect of the manufacturing enterprise, CIM will force manufacturers to eliminate delays in design and production, because rapid reaction to new opportunities and changing conditions will be a major competitive factor.

STATEMENT OF THE PROBLEM 21 operations in the United States. The rising competition from previously weak or nonexistent sources is prompting a response, but it is insufficient. The initial, and natural, reaction is to do everything better. Redoubled efforts are nearly always beneficial; it is a rare company that does not have room to improve. Doing things better than yesterday or better than competitors today, however, will not necessarily ensure long-term competitiveness. 21 Another response has been to move production facilities offshore, through foreign direct investment, outsourcing, joint ventures with foreign producers, or other mechanisms.

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