Modern manufacturing is no longer as simple as Henry Ford's first moving assembly line in 1913. In 2015, multiple lines are often running at the same time, with parts attached by robotic arms.
Ford also sourced most of his supplies locally from the new parts factories around Detroit built to support the auto industry. It's likely that he wouldn't recognize today's supply chain with parts and raw materials imported from around the world. Ford's 1913 supply chain was vulnerable, but not to the same degree as manufacturers find in the 21st century.
At first risk managers often focus on "how quickly can we replace a machine that breaks down" when assessing risk in a manufacturing facility, says Scott Higgins, president, commercial accounts with Travelers. Then they begin to notice that the risk is more about the people, especially in small to mid-sized companies, defined as those with revenues of $50 million or less.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
