MICHAEL MCKELDON WOODY, CEO of Trans-Tex LLC, authored the book, “American Dragon: Winning the Global Manufacturing War Using the Universal Principles of Fewer, Faster, and Finer,” which was recently named a finalist for Business & Economics INDIES Book of the Year by Foreword Reviews. The book explores the events leading to the offshoring of thousands of Rhode Island manufacturing jobs, and provides strategies for domestic manufacturers to navigate the import business more effectively.
What is an American dragon? An American dragon is a company that uses the principles of “Fewer, Faster and Finer” to compete more effectively against low-cost overseas manufacturers, particularly those in China. The name is derived from the fact that each chapter of my book begins with a quote from Sun Tzu’s “The Art of War.” In essence, by attacking the strategic weaknesses of the China manufacturing business model, U.S. manufacturers are using Sun Tzu’s battle strategy against manufacturers in China. So, we’re turning the tables.
What is the greatest threat to manufacturing in the U.S. right now? Is that reflected in Rhode Island’s manufacturing landscape specifically? The greatest threat today is the inability of national [leaders] from either political party to level the playing field for U.S. manufacturers competing with imports. For decades, national trade policy has consistently thrown U.S. manufacturing under the bus, which has directly led to lower median-household income and increasing income inequality. In my book, I recount the history of how this has directly affected the jewelry and textile industries in our state. Today in Rhode Island, we’re fortunate to have a congressional delegation, a governor and a commerce corporation that is working hard to help manufacturers overcome the hurdles that misguided national trade policy has created. But we need more collective political will in D.C. to truly level the playing field.
Much of your philosophy relies on exploiting the weaknesses of today’s manufacturing industry. Can you explain how that is implemented with your three-step “fewer, faster, finer” model? Keep in mind that the manufacturing business model of low-cost overseas producers is to make and sell long runs of commodity products at the lowest possible price, then put them on a slow boat to the U.S. The American dragon business model combats that strategy by focusing on:
FEWER: shorter, more-customized production runs;
FASTER: hyperspeed to market;
FINER: Good-quality products, manufactured in a responsible manner and compliant with the Consumer Products Safety Improvement Act.
As my book explains in greater detail, these principles exploit very specific weaknesses in the business model of overseas manufacturers. They’ve proven successful at Trans-Tex and, as I point out in “American Dragon,” for many other companies in a variety of industries across the country that are competing effectively against imports.
