If you were given the responsibility to decide where to locate the world's most efficient and low-cost manufacturer of automotive transmissions, would you consider the United States? The fact is that the most efficient and lowest cost automotive transmission facility in the world is located in the United States.

This is not because it has the lowest possible price on its MROP supplies or labor costs. The plant produces the highest quality parts at the lowest cost because it has creatively leveraged the company's external resources to become the most efficient transmission manufacturing operation in the world. The company has invested in the latest manufacturing technology and has engaged its supplier partners and its labor union (yes, it's unionized!) to find ways to drive productivity and efficiency.

The U.S. manufacturing sector is faced with a competitive environment, forcing manufacturers to reduce costs and improve productivity; and they need help and ideas from their supplier partners. Many are choosing to move offshore and take advantage of the low labor rates, rather than re-engineer their processes and transform their businesses.

There are significant opportunities for cost savings in restructuring and re-engineering to achieve competitiveness for most manufacturing customers today. As MROP supplier partners, we offer limitless cost-saving opportunities to the manufacturing industry in the United States. It is our challenge and responsibility to clearly understand the value that we can provide to our customers and then to articulate, convince and provide those significant cost-savings opportunities.

It is distressing that there is very little differentiation in perceived value between distributors, causing a significant amount of the opportunities and decision-making within the industry to be largely price driven. The uninformed decisions directly reflect our industry's inability to educate these customers.

The challenges that the manufacturing sector faces are significant, and without the talent, expertise, and innovation of the wholesale distribution industry, the manufacturing industry will have a difficult time in meeting these challenges.

Our manufacturing customers must rely on us to help create processes that can compete with overseas competition. With that said, our customers need to fully engage us, in collaboration with our suppliers, to provide value-added services, maximize product utilization, and significantly drive increased manufacturing productivity. We must educate our customers to help them understand that a 2 percent increase in a facility's productivity can be 50 times more valuable than a 10 percent price reduction on their MROP products.

I suggest that we change our reputation from product providers to supply chain experts, focused on maximizing manufacturing efficiencies and cost saving opportunities. The challenges facing U.S. manufacturers are significant, and without the talent, ingenuity, and innovation available from wholesale distribution partners, the manufacturing industry will have a difficult time surviving in the United States.

Andrew Shearer is president and CEO of IDG, headquartered in Atlanta.