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May 5, 2008
Pella, Iowa Celebrates
It's great to have pride in our heritage and in America, there is such diversity of origins that a rich tradition in many communities is a celebration of their founders and the culture they brought with them.
Dutch settlers in America are a part of this wonderful American tradition. We all pretty much know from high school history that the Dutch had one of the world's most valuable pieces of real estate--now known as Manhattan--but lost it to the English. Some may have heard about the Dutch tradition in Holland, Michigan where many settlers from the Netherlands went to live. But how many of you knew that Pella, Iowa has a legacy of Dutch settlers that is celebrated every year at this time, when the tulips bloom?
The accompanying picture is from the tulip festival in Pella, Iowa and shows in the background the Tulip Toren, or Tulip Gate. Mary Vermeer Andringa, a native of Pella and the chief executive officer at Vermeer Corporation there, told me about this festival a few days ago. Her family has Dutch roots as you might have guessed with names like Vermeer and Andringa. Mary's family and friends were in town to see the parades, enjoy the children's programs, concerts, auto shows and of course the tulips. I understand there are 30,000 tulips in Pella. Vermeer Corporation -- manufacturer of a wide range of industrial equipment -- alone plants 12,000 tulips on their own corporate campus. The tulip is one of the most beautiful flowers of the year, not least because it blooms early when we need some cheer after the long, grey winter. Some day I've got to make it to Pella at this time of the year to take in this floral spendor.
For more images of Pella, Iowa's tulip festival just click here and get ready for their 2009 festival from May 7-9. And kudos to the Vermeer Corporation for helping to make their town special with support for this festival and their own magnificent plantings.
By the way, if you are a fan of tulips ...
By the way, if you are a fan of tulips, you may be interested that their origin was in Asia. According to Wikipedia
The tulip, or "Lale" as it is called in Turkey, is a flower indigenous to Iran, Afghanistan, Turkey and other parts of Central Asia. A Dutch ambassador in Turkey in the 16th century, who was also a great floral enthusiast, Ogier Ghiselin de Busbecq, got their very names because of their Persian origins. Tulips were brought to Europe in the 16th century.The tulip then was an early benefit of world trade, bringing something to Europe that was not indigenous. Tulips became so valuable for a few years after 1634 that they even came to be used as currency. And the prices of some tulips were bid up so high that there was a "tulip frenzy" that economists will tell you was one of the first speculative bubbles of the modern era.
So next time you gaze on this special flower, appreciate its intersting migration from Asia to Europe and then to America and its role in the Dutch economy long ago. And go to Pella, Iowa or Holland, Michigan or wherever tulips grow this spring and take in their beauty. (By the way, the poinsettia has a similar intersting international history but we'll wait to write about that in December).
Posted by Bill Canis at 8:00 AM | Click here to comment | Send to a Friend
April 16, 2008
One Year Ago
Just a year ago today, the shots of a crazed student brought down 32 aspiring students and faculty at Virginia Tech. Then the madman took his own life.
Since then and more recently, the headlines about this Virginia Tech tragedy have centered mostly on who was to blame for this and compensation for the families who lost sons, husbands, daughters. Some of the families have put donations to incredible use, like the Cloyds who use those contributions to repair dilapidated houses in the poorest sections of Appalachia. Stories like this are truly inspiring.
Yet the huge Hokie Spirit that impressed the nation immediately after the shootings seems to have dissipated and many of the students are saddened by that loss, as the editor of their student newspaper reports in an article.
This is a poignant day for our family because our daughter, who is now a sophomore there, lived in the dorm and on the same floor where the first two students were gunned down. A girl a few doors away never came back from German class. And the girl whose family is rebuilding homes in Appalachia, Austin Cloyd, was in her 8 am communications class only to go on next to the fateful French class that took her life. To top it all off, April 16 is our daughter's birthday.
This year, like last, she doesn't see anything to celebrate on her birthday. She often talks about how short life is and this viewpoint influences her young life. That her grandmother lived to be 94 doesn't count in her mathematics of longevity. There will be a number of solemn memorials today on the campus and classes are canceled. It's a Day of Remembrance. Even though April 16, 2007 is long gone, its aftermath lives on with many students like my daughter. It's good to pause today and remember those who fell as well as those who carry on with the kind of memories they never thought they'd acquire in a bucolic college setting.
Posted by Bill Canis at 8:40 AM | Click here to comment | Send to a Friend
April 9, 2008
The North American Marketplace
To listen to Senators Obama and Clinton, one would think that the North American Free Trade Agreement (NAFTA) was like a meteor hitting U.S. manufacturing. Now, these otherwise smart officials know better. In fact one of their leaders, Congressman Rahm Emanuel and the Chairman of House Democratic Caucus said
NAFTA is not the main reason workers today are hurting.He was pretty clear what some of the issues facing manufacturing are and he called in a Wall Street Journal article for a "new social contract" dealing with health care, job training and other changes which would help workers facing global competition.
Congressman Emanuel is right about NAFTA of course and the senators are dead wrong. A recent survey The Manufacturing Industry conducted with Deloitte of manufacturers in the U.S., Canada and Mexico showed this fact clearly. Our survey showed that 49 percent of companies had found NAFTA to help their competitiveness; 10 percent said it hurt and the remaining 41 percent said it had no impact one way or the other.
Several recent articles, which are reality checks for Senators Obama and Clinton, discuss what NAFTA has wrought. In today's Business Section of the Washington Post, an article by Michael Fletcher, Don't Blame NAFTA for Downturn, Many Economists Say lays out the fallacies. Most interestingly, he concludes his article on the right note with a quote from a professor at American University who sagely notes that
NAFTA is not the issue. That debate is finished. What the candidates should be debating now is the future of North America. That requires them to look forward, not backwards to NAFTA.
Please, candidates, deal with the real issues facing America's future.
Posted by Bill Canis at 10:45 AM | Click here to comment | Send to a Friend
April 4, 2008
The Weatherman Has It Right
It's a rainy, gray day in Washington, DC and by most accounts it's been a cool spring thus far. Mostly I turned to the weather page to see how long the rain would last today and if I still needed an umbrella for the commute to work.
But it was almost like the sun was shining when I turned to the weather page in The Examiner newspaper to see a very short column by local weatherman, Topper Shutt, with local Channel 9 News.
I couldn't find a direct link to his little column, so it follows. Mr. Shutt gave us a nice fresh breath of air by pointing out this important book by Bjorn Lomborg:
I read three books while I was on vacation [last week]. One book really made a lasting impression on me. it is entitled 'Cool It' by Bjorn Lomborg. I don't want to give it away, but he doesn't dispute global warming is occurring but rather how we should attack that issued from an economical viewpoint.Lomborg also prioritizes what world issues are most pressing and what actions would give us the highest return from our investment, in terms of lives saved and dollars.
It is refreshing to learn about a new perspective on this highly charged issue. I try and remind our viewers that climate is always in a state of flux and yes, the world has warmed over the last 25 years but claiming that Katrina is a product of global warming is absurd.
We have had much stronger hurricanes hit the United States in the past, the Labor Day or Keys hurricane of 1935 and Camille in 1969 to name just two. There is much more development now on our shores. Anyway, check it out. It's a quick and informative read.
By the way, it's supposed to be rainy in DC through Saturday, although the sun came out today with this column. Thank you, Mr. Shutt. And if you'd like to comment on Mr. Shutt's good sense, here's a link to his blog whichi is on the same topic today.
Posted by Bill Canis at 8:55 AM | Click here to comment | Send to a Friend
April 2, 2008
Dream It, Do It in San Antonio
The latest Dream It! Do It! campaign gets under way in San Antonio, Texas, encouraging young people to consider and prepare for careers in manufacturing. From MySA.com:
"The greatest danger to San Antonio economic development and manufacturers is if we hit the upper limit of our labor resource," said Henry Cisneros, former San Antonio mayor and former secretary of housing and urban development. "We've got massive work to do to bring focus to the simple reality that we have to act."Inspirational quote: "These are jobs for the taking" -- Judy Ingalls, executive director, SAMA Workforce Development Corp.
Best of luck to the San Antonio Manufacturers Association and congratulations for showing such leadership.
Posted by Carter Wood at 12:50 PM | Click here to comment | Send to a Friend
March 17, 2008
Advancing Employee Training in San Antonio
A David Henricks column in the San Antonio News Express, "Manufacturers to launch campaign for workers."
Manufacturing companies believe that without a rejuvenation of young workers, their futures are cloudy. Creating a worker pipeline is proving difficult, however, when too many young workers believe manufacturing jobs pay little or that too few job opportunities exist locally.The vehicle? Dream It! Do It! a manufacturing promotion, training and economic development campaign based here at the Manufacturing Institute.Having experienced limited results from two previous efforts to recruit manufacturing workers and to boost awareness of job opportunities, area manufacturers will launch a third program on April 1.
Best of luck to the San Antonio Manufacturers Association.
Posted by Carter Wood at 12:17 PM | Click here to comment | Send to a Friend
March 15, 2008
A Report from San Diego
From the San Diego Daily Transcript:
The Workforce Summit 2008 held at the Convention Center yesterday was a big success. The annual gathering of educators, government representatives and employers was treated to a great opening speech from Emily DeRocco, president of the National Center for the American Workforce and senior vice president of the National Association of Manufacturers. She addressed the "morbid fascination" that the media has with all things China. The truth is, she said, is that the United States is still the world leader, accounting for a quarter of all global manufacturing activity. China ranks third behind the United States and Japan with only a 6 or 7 percent share of the world market. True, China is gaining ground fast and our domestic industries are at a "tipping point" that requires attention. DeRocco also pointed out that local industries like biotech, technology and aerospace are all part of manufacturing and will only get better. She also pointed out that one-fifth of all the manufacturing companies in the United States are owned by women.Emily DeRocco was recently named president of the Manufacturing Institute.
Posted by Carter Wood at 12:47 PM | Click here to comment | Send to a Friend
March 3, 2008
North American Free Trade Agreement
We take for granted all the benefits of international trade and what they continue to bring to the American economy. Right now, the exports of thousands of U.S. manufacturers--large and small--are helping to offset the economic bad news stemming from the housing and credit sectors. That's right. U.S. exports have risen so much in the past few years that they are boosting the economy, just when we need it most. Those exports go all over the world, but especially to our largest trading partners, which include Canada and Mexico.
So it's more than a little unsettling to see Senators Clinton and Obama jumping on NAFTA--the North American Free Trade Agreement--as if it were a truly bad thing for the U.S. economy and calling for it to be reopened and renegotiated. I guess they don't recognize a good trade agreement for America when they see it. There's been lots of misinformation spewed about NAFTA for a long time and it's surprising to see these well-informed legislators buying into the bashing at this time. One of Vice Presidennt Al Gore's greatest moments was his debate long ago with Ross Perot where Mr. Gore forcefully and effectively demolished the untruths about NAFTA being circulated by Mr. Perot and his allies.
Why are these two Democratic candidates for president so off track? I'm not the only one to ask that question. In Sunday's Washington Post, Sebastian Mallaby really laid out the case for how dangerous this anti-trade juggernaut has become. Mr. Mallaby's article really zoned in on the facts in his last paragraph:
The pity is that the Democrats didn't have to go this way. It's not that difficult to explain that U.S. manufacturing output has gone up, not down. It simply isn't true that production has been shifted en masse to Mexico or even China. Manufacturing employment has fallen not because of trade but because of technological progress....
The steady rise in manufacturing output that Mr. Mallaby refers to is presented in the accompanying graph. To see the chart in a larger format, please click here.
Long before NAFTA surfaced as a campaign issue, The Manufacturing Institute launched a survey of manufacturers in the United States, Canada and Mexico to gauge their views on how competitive our big market is compared to those in Europe and Asia. This report is nearing completion and will be made public later this spring. It appears that our survey of manufacturers will give all the presidential candidats something to think about and for those finding fault with NAFTA, there will need to be some serious back-peddling.
Posted by Bill Canis at 11:17 AM | Click here to comment | Send to a Friend
February 15, 2008
Manufacturing Summit in Illinois
Yesterday, the Illinois Manufacturers Association (IMA) joined with other area business groups to hold a Manufacturers Summit at the College of DuPage outside of Chicago. By all accounts it was a terrific success in focusing on the workforce needs of the greater Chicago manufacturing community and developing a plan to ensure a pipeline of skilled men and women in the future.
Ron Bullock, chairman of Bison Gear & Engineering in St. Charles, Illinois, is the newly-elected chairman of IMA and he gave the keynote address to the audience. He struck a note that is important to the future of U.S. manufacturing. Namely, that the success of manufacturing depends on its alliances and partnerships with community colleges and technical colleges that attract and train the next wave of skilled workers for manufacturing.
The College of DuPage is at the center of this competitiveness drive. It offers 140 hours of classroom training for young men and women, leading to certification in 4 distinct career areas by the MSSC--the Manufacturing Skills Standards Council. Students who master the coursework and obtain the coveted MSSC certification will participate in a job fair afterwards, so the connection between training and obtaining a good job is real and tangible.
The Summit also announced the formation of a Manufacturing Council in Illinois that will create business champions--executives who will speak publicly about the needs of skilled manufacturing workers and the linkage with the nation's community colleges. The Council will also find ways to deepen the connection between manufacturers in northern Illinois and other community colleges. The College of DuPage has set the pace and tone for what needs to be done. Now we hope others will see how important this direction is the future standard of living and economy of Illinois.
Next week we will bring you more about this important convocation. In the meantime, kudos to IMA, the College of DuPage and Mr. Bullock for launching it.
Posted by Bill Canis at 5:20 PM | Click here to comment | Send to a Friend
February 11, 2008
Global Value Chain: Financing
Our fourth and final installment about our new report --Forging New Partnerships--i s about how companies can effectively pay for their expansions and worker training programs. As our report notes:
Doing business in the global value chain increases the level of complexity in all aspects of the company, including financing. The environment for securing capital to finance operations and growth is no longer as easy as filling out a loan application or placing a call to your neighborhood banker. Small and medium manufacturers (SMMs) should look to a wider range of financing sources to grow.
Our partner for this report was RSM McGladrey, a global accounting, tax and business consulting firm headquartered in Minnesota. A survey they conducted among their manufacturing clients last year showed that one of the leading barriers to pursuing international growth is the inability to obtain suitable financing. As the global value chain expands, this need will only intensify. The same survey showed that the top three reasons for not participating in government programs that can assist SMMs with financing are:
294 companies were unfamiliar with the government financing programs; 196 were not interested in them and 187 were unsure how to get started.
One of the reasons for writing Forging New Partnerships is to better educate SMMs about some of the financing options open to them. It also profiles three companies that have found ways to utilize some of these resources.
Bison Gear & Engineering in Illinois has used industrial revenue bonds to build a new plant and tapped a Small Business Innovation Research (SBIR) grant from the National Science Foundation to conduct research on new motor technology. Pacific Plastics in California harnessed state grants for worker training and has applied for a federal Trade Adjustment Assistance grant that is being piloted in the innovation corridor in California. Al-jon in Iowa turned to investment partners to grow his business, not only with cash, but also with the know-how of applying it wisely to lean manufacturing and redesign of its service delivery.
This wraps up our blog discussion of how manufacturers are dealing with new challenges in the value chain. We always welcome comments and questions and, if you'd like to read Forging New Partnerships, it's available for free on our website. Just click the link above and it will take you to it.
Posted by Bill Canis at 11:23 AM | Click here to comment | Send to a Friend
February 7, 2008
Global Value Chain: Skilled Workforce
This blog series looks at our latest publication, Forging New Partnerships, which takes a close look at how the manufacturing supply chain is changing and the implications for small and medium firms. Through recent blogs, we've already looked at staying ahead with innovation and lean manufacturing and finding new markets, especially overseas. Today, we focus on the book's analysis of the workforce challenge that is a growing concern because half of all manufacturing workers will retire in the decade ahead--over 7 million men and women.
This is particularly challenging for SMMs--small and medium manufacturers. They don't have the large inhouse training and recruitment units that large manufacturers have. The tangled series of challenges the SMMs face include:
attracting new entry-level and skilled workers; training existing workers so they can deliver on the innovation and global business priorities; replacing the knowledge that skilled workers take with them when their retire; and handling the competition when customers, competitors and even smaller companies try to attract an SMMs skilled workers.
Developing partnerships to meet these workforce goals is particularly important for SMMs, as it is these partners who can help them solve these challenges. One successful SMM in Minnesota provides 100 hours of training a year for every employee and devotes more than 5 percent of payroll to this purpose year in and year out. Some of the partnering that can help SMMs fill their employee pipeline include:
establishing internships for high school and community college students; participating in job fairs with other local employers; publicizing their industry in local publications, with a toll free number or email connection for applicants; and working with manufacturers in the state to get skills back into high schools, just as a "Get Real" program is doing in California.
Forging New Partnerships has many examples from SMMs who are succeeding in building unique pipelines and it includes, on page 44, a Human Capital Success Matrix showing SMMs how they can evolve their workforce pipeline, step by step. Check it out!
Posted by Bill Canis at 8:57 AM | Click here to comment | Send to a Friend
February 1, 2008
R&D Spending Pays Off in Minneapolis
Yesterday we blogged about innovation and how staying ahead of that curve is important for manufacturers. That's true whether your company is large, medium or small.
Minnesota-based Tennant Co. has learned that lesson and has found a route to successful U.S. manufacturing through increased spending on R&D. Tennant manufactures industrial floor cleaners and, like many manufacturers, it has faced rising and cheaper competition from overseas. One option Tennant had and discarded was to move its production abroad.
According to a recent article in the Wall Street Journal and the Pioneer Press, the option its management took was to boost R&D spending to outwit the competition with signifcantly different products that would give it an edge:
In 2007, Tennant's R&D spending was an estimated $23 million, the company says, up 38 percent from 2003. About 10 percent of that went toward developing breakthrough products.
Tennant brought in a new director of the research group, whose background was in aerospace and defense contracting. He and the team brought a new focus on improving technology rather than just durability. Engineers were encouraged to visit trade shows unrelated to their specialities to cross fertilize new ideas and that approach,, along with its new financial suport for R&D, worked for Tennant. To find out more about how this Midwest manufacturer developed new carpet scrubbers and other essential products for keeping factories, schools, malls and other large spaces clean, check out this very insightful article.
Posted by Bill Canis at 8:14 AM | Click here to comment | Send to a Friend
January 31, 2008
Global Value Chain: Innovation
Last week we inaugurated this blog series on what the global value chain means for today's manufacturers, especially the small and medium companies. Our latest publication, Forging New Partnerships, takes an indepth look at it.
A while back I met with a large group of manufacturers in Colorado Springs, Colo. They had been hammered by the tech drop off at the start of this decade and wanted to make sure it didn't happen to them again. After prioritizing all their interests, finding a way to stay ahead of the innovation curve came out as the top area that they felt would ensure a more competitive future for them. So it's no surprise that in today's manufacturing value chain--where large OEMs expect their suppliers to contribute more in the way of new products and processes--Forging New Partnerships focuses on how small and medium manufacturers (SMMs) can keep their innovation edge.
From our interviews and a special SMM roundtable we held last fall, some of the innovation best practices emerged:
A better informed team of employees who know the stakes if new products are not produced correctly A system of employee rewards for those who innovate, both in terms of cash bonuses to companywide recognition Better informed customers who may need to understand why they need to share risks and costs for new product development A high-tech college partner that can help SMMs think through and even develop their new innovation mandates. One California SMM has turned to local colleges for a "compute to compete" partnership.
Forging New Partnerships provides SMMs with a range of innovation options that they should consider now, from mastering lean manufacturing--including the Toyota Production System; developing new products and tailoring current products to new markets; harnessing federal and state programs by tapping grants and advisory services--such as the NIST Manufacturing Extension Partnership; and seeing the strong future for sustainable manufacturing and reducing the energy and environmental impact of products and processes. All of these are different paths to innovation; Forging New Partnerships highlights how many of today's SMMs are following these pathways to build a strong business model.
Posted by Bill Canis at 8:38 AM | Click here to comment | Send to a Friend
January 24, 2008
The Candidates on the Economy
It's American as apple pie that issues in presidential elections blossom overnight and seize the campaigns, completly rejiggering the outlook. It's that way this year as the economy has soared to the number one, if not only, issue on the minds of candidates this month. There's good reason for this shift of course, with a possible recession looming.
Yesterday the New America Foundation sponsored a very interesting and informative discussion, wtih the economic advisers to four candidates: Barack Obama, John Edwards, John McCain and Hillary Clinton. Mike Huckabee's economist had hoped to be there, but had to cancel at the last moment. New America's program title was -- As the Economy Screams: Perspectives and Proposals from the Presidental Campaigns.
The campaign economists are all distinguished in their own right:
Austan Goolsbee (for Obama) is a professor of economics at the University of Chicago's School of Business; Leo Hindery (for Edwards) is managing director at InterMedia Partners; Kevin Hassett (for McCain) is director of economic policy studies at the American Enterprise Institute, AEI; Gary Gensler (for Clinton) is a former undersecretary of the U.S. Treasury Department and Goldman Sachs executive.
So what did they say?
There wasn't much discord among them, so for anyone expecting fireworks, they will have to wait for debates between the candidates themselves. The three Democrats had similar prescriptions for a stimulus package: there should be more long-term investment in education, technology and energy. The middle class needs to be strengthened and a stimulus package should be directed at them, especially those at the bottom of the wage scale who would spend it right away.
They agreed that the subprime mortgage crisis was more than just a problem faced by poor people, that it is, in their view, part of a wider, pervasive problem of an economy hooked on too much debt, including credit cards, corporate borrowing and the U.S. government itself, which finances a large budget deficit.
Leo Hindery was particularly vocal in speaking about a credit crisis and said that it was a problem that dates back 25 years. He went on to say that in his view, 90 percent of Americans have flat incomes and that we currently have the widest income inequality since 1928. He and others fingered the Fed and irresponsible regulators for prompting the current crisis (but surprisingly they said nary a word about Congress having any responsibility!) Wall Street was called to task,too, and greater transparency in their activities was called for. There seemed to be consensus that the Fed's monetary policy independence should be respected but that its role as a bank and consumer regulator has not been well executed.
Kevin Hassett from AEI did not share many of these perspectives. He pointed out that most economic stimulus packages don't work because they come too late or are only targeted at pet constituencies. He believes a permanent tax cut, instead of a temporary one, is the only medicine that will revive the economy. He's the only economist who addressed the need to boost private sector competitiveness by addressing the tax inequality between the high tax U.S. and the lower tax areas in Europe and Asia and went so far as to say the U.S. is not a friendly tax place. He also pointed out that strengthening corporate performance is the best path to strengthening the middle class through job creation.
There were numerous questions from the floor and it's interesting that a member of the audience had to ask about international trade since it had barely been mentioned. There was some competition about who had coined the phrase "smart trade" which several said meant that the U.S. would enforce trade agreement violations more rigorously than the Bush administration. Generally all supported the concept of open markets and Gensler pointed out that trade policy has evolved so that now agreements, such as the recent one with Peru, include labor and environmental standards. Unfortunately, no one really touted the positive benefits of trade and how the current export boom is offsetting the GDP impact of the financial meltdown. This is, of course, a sea change in opportunities for the manufacturing sector.
Finally, soverign wealth funds and their increasing investment in U.S. assets were discussed with a general feeling that we needed to know more about their operations and motives, without discouraging their activities here. Hassett noted that if not watched carefully, national security could be compromised.
Posted by Bill Canis at 11:30 AM | Click here to comment | Send to a Friend
January 23, 2008
Global Value Chain at Work in Minnesota
In our latest publication, Forging New Partnerships: How to Thrive in Today's Global Value Chain, we highlight small and medium manufacturers who are expanding their business model into overseas markets.
One of the most clearcut case studies in our book is that of E.J Ajax, a metal stamping company outside of Minneapolis. With 50 employees, the company is not shy about pursuing business opportunities abroad. One of Ajax's customers makes rice and vegetable steamers and Ajax supplies a sophisticated metal part for those appliances.
When his customer decided to move its production of these products to Asia, it didn't at first look good for Ajax to hold on to this business. But Erick Ajax explains in Forging New Partnerships that he was committed to keeping this business and in following his customer to Asia. He succeed in convincing them that he was still the right supplier and so he maintained his contract with the appliance maker.
Best of all is this: the appliance maker sold 100,000 rice and vegetable steamers when they were made in the United States. Now, with an Asian market that is more interested in such products, they sell 700,000 units. And Erick Ajax outside of Minneapolis is now supplying seven times the number of metal components that he did before.
Erick Ajax and his company have found the way to survive in the global marketplace and even thrive. Following customers as they locate production abroad to serve foreign markets is one way to do it.
Posted by Bill Canis at 8:23 AM | 1 comment; click here to read it or submit your own! | Send to a Friend
January 22, 2008
Proving Workforce a Priority
Big news at the NAM and the Manufacturing Institute.
WASHINGTON, D.C., January 22, 2008 – National Association of Manufacturers President John Engler today announced that Emily Stover DeRocco will become President of the Manufacturing Institute’s National Center for the American Workforce, which is dedicated to fostering a new generation of manufacturing workers for the 21st century, and a Senior Vice President of the NAM.From the Dec. 20, 2007, Department of Labor news release announcing DeRocco's departure from the agency.“Emily provided exemplary leadership as Assistant Secretary of Labor for Employment and Training and is widely regarded as a leading authority on workforce development,” Engler said. “Finding qualified employees is a daunting challenge for the great majority of manufacturers and the skills gap will become an ever greater problem as older manufacturing workers retire. Emily comes to us at a pivotal moment when her leadership is greatly needed.”
"America's workers and employers have had a steadfast friend in Emily Stover DeRocco, who always has understood that it is essential to prepare our workforce for the rewarding opportunities that lay ahead," said Secretary Chao. "Emily transformed a $10 billion social services agency into an economic development driver actively working to enhance workers' talents and prosperity. Her distinguished service will be missed by her colleagues in the Administration and scores of partners in workforce and economic development circles."Full NAM release in th extended entry below.
EMILY DEROCCO TO ASSUME HELM
OF NATIONAL CENTER FOR THE AMERICAN WORKFORCE
Worker Skills Expert Led Employment and Training Administration
WASHINGTON, D.C., January 22, 2008 – National Association of Manufacturers President John Engler today announced that Emily Stover DeRocco will become President of the Manufacturing Institute’s National Center for the American Workforce, which is dedicated to fostering a new generation of manufacturing workers for the 21st century, and a Senior Vice President of the NAM.
“Emily provided exemplary leadership as Assistant Secretary of Labor for Employment and Training and is widely regarded as a leading authority on workforce development,” Engler said. “Finding qualified employees is a daunting challenge for the great majority of manufacturers and the skills gap will become an ever greater problem as older manufacturing workers retire. Emily comes to us at a pivotal moment when her leadership is greatly needed.”
Nominated by President Bush and confirmed by the U.S. Senate as head of the Employment and Training Administration in the summer of 2001, DeRocco was responsible for managing an annual budget of more than $10 billion funding the country’s workforce investment system. She represented the U.S. in numerous international forums and led boards and commissions in areas ranging from the future of the aerospace industry to the aging of the American workforce, and the U.S. Department of Commerce’s Interagency Working Group on Manufacturing, Education and Workforce Committee. She also served as vice chair of the Secretary of Defense’s Base Realignment and Closure Economic Adjustment Committee.
“As a result of Emily’s strong, steady and articulate leadership, the Employment and Training Administration has significantly expanded the availability of the postsecondary education and training that are the cornerstone of workforce competitiveness,” said Secretary of Labor Elaine Chao upon DeRocco’s departure from federal service. “Her seminal leadership on behalf of America’s workers will be missed.”
“The government’s loss is our gain,” Engler said. “The NAM has made substantial progress through our Dream It! Do It! campaign encouraging bright young people to pursue careers in modern manufacturing. Emily will take this excellent program to a higher level as we create an enticing career path into the future that millions of our best and brightest young people will want to pursue.”
--NAM--
Posted by Carter Wood at 11:31 AM | Click here to comment | Send to a Friend
Global Value Chain: Exporting
Last week we began our blog series about the manufacturing value chain, based on The Manufacturing Institute's newest publication, Forging New Partnerships: How to Thrive in Today's Global Value Chain.
Forging New Partnerships focuses on four areas where many small and medium manufacturers (SMMs) can improve their performance within the manufacturing supply chain: exporting and global trade; staying ahead of the innovation curve; attracting new, skilled workers and financing options.
Becoming engaged in international trade is perhaps one of the largest of all business hurdles for SMMs. It seems formidable, especially when companies have the big U.S. market to operate in. But that's leaving a lot of the growth markets overseas out and why let overseas competitors harvest all that business?
Our new report looks at some of these challenges that inhibit broader SMM engagement in trade. According to Industry Week, two-thirds of SMMs export less than 10 percent of their production and nearly 30 percent export nothing. U.S. manufacturers can do a lot better than that, especially with the U.S. dollar making U.S. exports very, very competitive.
What are the opportunities to grow overseas sales? The report gives a great range of ways to succeed, based largely on what has worked for other SMMs who have plunged into the international market:
know how to exploit your stratetic advantage have a proactive commitment and mindset about pursuing international opportunities tailor products for the international market develop a partnership with an overseas representative invest in personal relationships abroad and understand and adapt to local cultures and business ways leverage relationships with existing multinatinal customers as initial sources of exports.
Highlighting this chapter are excellent sidebars about Schloss Engineered Equipment in Colorado, Power Curbers Inc. in North Carolina and Allmand Bros. Inc. in Nebraska. Check out pages 16 to 24 for this discussion by clicking on the report title above.
Posted by Bill Canis at 8:11 AM | Click here to comment | Send to a Friend
January 16, 2008
Global Supply Chain: Manufacturing Risks, Rewards
All manufacturers are part of a supply chain. The latest publication of The Manufacturing Institute and RSM McGladrey looks into this important component of today's interconnected business relationships.
Many small and medium manufacturers build product for larger manufacturers who, in turn, sell to a final customer. Looking at the supply chain from the large company perspective, its many suppliers provide essential products without which they can't complete finished products. Small, medium and large manufacturers are all together and the more successful the communication within a supply chain, the better it performs.
But manufacturing supply chains are changing with the advent of a global marketplace. Large U.S. companies can find suppliers around the world. Similarly, smaller companies can follow their large customers as they set up operations to supply burgeoning markets such as China and India and they can diversify their own business by becoming to European and Asian companies. A decade ago these kind of opportunities were rarer.
Forging New Partnerships: How to Thrive in Today's Global Value Chain is a new report designed for executives who run small and medium manufacturing firms (SMMs). This is the first of several blog entries that will discuss this new report and its implications for the future competitiveness of manufacturers, both large and small.
Globalization and greater competition in the supply chain are actually morphing the traditional system into a value chain. What's the difference between these two? As our report notes:
The old supply chain connected assembled and/or transformed components into a final product and sold it to the end consumer. It was a vertically organized structure with mainly components flowing through the supply chain while product design, pricing and service were dictated and managed by the final producer. Primary responsibility for innovation and value creation resided with the Original Equipment Manufacturer. (OEM)
Today, manufacturers are part of a new value chain that is a more complex matrix of interdependent corporate relationships and the workforce that makes them succeed. Innovation and value are created at all levels of the chain and in collaboration with external partners. In the new value chain, SMMs are more than just "build-to-print" suppliers. They are integral partners that help create the new technologies, products, services and business models that are vital for success, here and abroad.
In the days ahead, we'll loook at the four chief elements of this value chain: innovation, exporting and global sales opportunities, workforce and financing.
Posted by Bill Canis at 12:36 PM | Click here to comment | Send to a Friend
November 11, 2007
On Veterans Day, Honor and Employment
Manufacturers are keenly aware of the sacrifices made by America's veterans. In addition to honoring their great efforts, manufacturers also recognize that the men and women serving today have much to offer the nation in the future.
Today’s typical soldier, sailor, airman, Marine, or Coast Guardsman or Guardswoman combines outstanding personal traits such as leadership, personal initiative, and self-discipline with a strong educational background and excellent training.
The National Association of Manufacturers and RecruitMilitary are working with NAM's member companies to offer employment to these high-skill workers. For employers, participation in the NAM’s initiative is a way of saying to military veterans, “Thank you for your service and sacrifice.”
It is also very good business. Many of these men and women work in military occupations that have easily recognized civilian counterparts — for example, “Machine Operator and Precision Work” and "Engineering, Science, and Technical." Individuals who have served in combat roles in the military make excellent leaders in corporate America. To learn more about this partnership, please visit our website at www.nam.org/recruitmilitary.
Posted by Carter Wood at 3:15 PM | Click here to comment | Send to a Friend
October 24, 2007
A Future for Manufacturing in Baltimore and Beyond
A fine piece in today's Baltimore Sun, profiling a young man making the most of his skills, training and opportunities at local manufacturer (and great NAM member), Marlin Steel Wire Products. From "No college required for high-paying jobs":
Reginald Priester II was going to work in a shoe store for $6 an hour after he graduated from high school in 2005. Money made college problematic, and any job was looking pretty good. Then he found that the global economy was ready to bid much higher for the drafting and math skills he learned at Edmondson-Westside High.We might quibble with a point or two here, thinking that the reporter might have better drawn the distinction at requiring a "four-year college degree." Two-year degrees from technical or community colleges are very important educational programs, conducive to productive careers in manufacturing. That said, there are also good, focused training programs that certify students who gain specific knowledge or skills.Today he's a designer for Marlin Steel Wire Products, making close to $30,000 a year, plus retirement and health care plans. He figures he can double that in a few years.
This could be you, high school students, if only society were better at allocating talent. For the right people, there still are good factory jobs that don't require a college degree. If you're proficient at math, like machines and don't feel like beginning your career with $30,000 or $60,000 in college debt, pay attention. Some vocational career tracks will take you further than you think.
But in any case, the essential point is one we endorse entirely: Manufacturing provides great opportunities for young people who acquire good technical skills. Thanks to the Sun, Marlin Steel Wire and Reginald Priester for make the case so clearly.
Posted by Carter Wood at 2:49 PM | Click here to comment | Send to a Friend
October 17, 2007
Staying Afloat with Skills -- Dream It! Do It!
The Boston Globe reported last week on the struggles of Maine's boat-building industry in finding enough skilled employees to keep up with the demands of business. Maine's population is aging, young people are leaving the state, and the state's relative isolation makes it hard to recruit employees from elsewhere. From "Boat Building Faces a Headwind":
In an unprecedented effort to address the shortage, industry leaders are bearing down hard to impress a new message on young Mainers, about cutting-edge opportunities in an age-old livelihood. They are trying to impart the word that boat building demands a wider range of skilled employees than in the past, including engineers, electrical and composite technicians, plumbers, and computer draftsmen, as well as carpenters and craftsmen.Sounds familiar to all of us at the NAM. We asked Phyllis Eisen, executive director at The Manufacturing Institute's Center for Workforce Success, to comment on the story. She writes:"People don't realize how challenging the work is, the technology and the new methods we're using in design through construction," said Tim Hodgdon, a fifth-generation boat builder at 191-year-old Hodgdon Yachts in East Boothbay. "The fantastic thing is that everybody's busy, and there are opportunities, so the next challenge is to develop the workforce."
We hear this cry for skilled workers from every industry sector and every region of the country. In fact, close to 90 percent of our membership has said they are having a miserable time filling skilled production/technical jobs for traditional industries, such as our great shipbuilding industry, to newer industries such as nanotechnology. We are all hurting and we will be hurting even more as more than seven million manufacturing employees retire in the next few years. That, on top of the negative, old images young people, teachers and parents not wanting to come in to manufacturing because of those old perceptions. Double whammy.Virginia's manufacturers launch the statewide campaign on October 29th.That’s why we created the Dream It. Do It. Campaign – designed to reverse the negative image of manufacturing from dark and dirty to high skilled, clean, creative and innovative i.e. telling the truth about modern, 21st century manufacturing. We are in a race for talent – and the winners will be those who tell the tale of manufacturing the best – be it boats or new textiles – from potato chips to computer chips. The Campaign, now in 10 regions, including three states around the country seeks to help communities fill their skills needs in the exciting careers in today’s manufacturing and changing Why not bring this campaign to Maine? Go to www.dreamit.doit.com for more info.
Posted by Carter Wood at 8:55 AM | Click here to comment | Send to a Friend
September 13, 2007
Some Short-Sighted Cities
Manufacturing takes place all around the United States, in every state and in many cities. For many places, manufacturing was the economic staple for decades and provided the jobs and tax revenue that fired the growth of the cities. Even New York City at one time had a vibrant manufacturing base and there are still many things made in the Big Apple today.
Manufacturing:
Yet some cities have the notion that they don't need manufacturing, its jobs and its tax revenue anymore. In fact, there are places that want to drive manufacturing right out of town. This is a startling attitude and not one you would find in countries that we compete with day to day, that see the tremendous economic benefits of manufacturing and seek to encourage it, not undermine it. This is also a new iteration of the NIMBY mindset--Not in My Back Yard.
Here a few cases of towns where there are some backward-thinking voices that think that manufacturing should be done somewhere else or not at all. They are undermining U.S. manufacturing far more than any Chinese competitors:
It's a pity that these cities are so backward in their views on America's competitiveness and our future. Fortunately not all cities across the country see things like these 3 towns. Most cities and their economic development partners seek to attract new manufacturing investments, for the reasons I highlighted above. If all cities and towns had these backward attitudes and short-sighted vision, we'd squander our high living standards and world standing as an innovation powerhouse for condos with balconies. Not much of a trade off, is it?
Posted by Bill Canis at 9:45 AM | Click here to comment | Send to a Friend
August 11, 2007
Cummins Partners for Energy-Efficient Engines
There have been a lot of headlines in recent weeks about the congressional energy bills, with their many provisions focused on energy efficiency and lack of attention in spurring new sources of oil and gas for our industrial economy.
While the headlines have been focused on the legislation, energy efficiency itself has taken steps forward in many ways at the level where it counts: in the plants and homes across the country. Unlike some issues Congress deals with that can be dealt with and "solved", energy efficiency is a process and, within manufacturing, it's one that does not really ever end. New products and ways to make things are being invented all the time that raise the bar on what manufacturers can do. And in many instances, federal support can be important in meeting these higher targets of efficiency.
We had a really good example of that just this week when it was announced that Cummins Inc., a manufacturer of diesel engines in Columbus, Indiana, had been selected for a US Energy Department grant to demonstrate ways to increase the fuel efficiency of light weight diesel engines by 10.5 percent. Cummins will partner with BP and DaimlerChrysler on this research.
Further research and work on diesel technology leads directly to greater energy efficiency and lower greenhouse gas emissions becasue diesel fuel itself has better fuel economy than gasoline and emits much lower greenhouse gas. Some say that a diesel engine will get 40 percent more mileage per gallon and emit only 70 percent as much GHG when compared with a gasoline combustion engine.
Cummins is a good candidate for this kind of research because their business line is diesel engines. Their diverse line of engines has proven to be a good balance this year, leading them to record second quarter revenues and strong earnings, despite a major pullback in orders in the North American heavy-duty engine market.
Posted by Bill Canis at 9:41 AM | Click here to comment | Send to a Friend
August 10, 2007
Memo to Senator Dorgan
Earlier today, the NAM Blogger hit the nail on the head when he took a real time look at corporate tax rates around the world. Aside from Japan--hardly the economic poster child for growth--the United States has the highest corporate tax rates in the industrial world. Moreover, OECD countries have been slashing rates so that the OECD average is about ten points BELOW the United States. In a competitive global marketplace, that's not a good spot to be in.
In 2003, The Manufacturing Institute and the Manufacturers Alliance/MAPI released its first report on five structural costs--including corporate taxes--that were making U.S. manufacturing less competitive. It showed that US manufacturers bore an additional 22.4 percent in structural costs than our nine major trading partners. That report was hand delivered to Senator Dorgan's office.
Last year, we updated our report and found that the gap had widened, with US manufacturers now carrying a 31.7 percent higher burden than competitors in Canada, Japan, Germany and other major manufacturing nations. Senator Dorgan's office received a copy of that report, too, as did all members of Congress.
Next time you hear a politician lament the shifting of jobs and production abroad, remember the lack of interest among some legislators in making U.S. manufacturing stronger by helping companies get a handle on costs. For The Escalating Cost Crisis and its predecessor, click here.
Posted by Bill Canis at 10:29 AM | Click here to comment | Send to a Friend
August 7, 2007
More Exploration of the Red Planet
It's amazing that the Mars Rovers, which landed over four years ago, are still transmitting data back to earth about the Martian surface. After all, these two robots had a 90 day life expectancy but they have outperformed in a truly hostile environment for well beyond their inventors' wildest expectations.
Next spring, just as presidential primary races are crowing a front runner, the Rovers will be joined by the Phoenix Mars Lander, which was launched from Earth just a few days ago. If all goes according to plans, it will be the first man-made vehicle to touch down in the far northern climes of Mars, in an area like our Arctic Circle. There, it will drill into ancient ice and dust--expected to be as hard as concrete--scoop up samples, mix them and bake them and measure the quantity of water and the types of organic matter that might be preserved in it. This dirt-digging machine will also measure the atmosphere thanks to new technology invented in Canada. (In fact this is a joint mission between NASA and the Canadian Space Agency).
The Phoenix Mars Lander was designed and built by Lockheed Martin, one of our nation's pre-eminent space and aerospace manufacturers. Catch that word "manufacturers?" The only countries that can send something as sophisticated as this Lander to a far-off planet and have it transmit back incredible volumes of data are countries that excel in manufacturing, like the U.S. and Canada. Some NAM members have built components for these robots, including ACE Clearwater Enterprises in Torrance, California which has parts on the Rovers. Imagine a job where what you built is used in space exploration?! That has to be one of the coolest careers today's men and women could ever imagine.
The picture above shows Lockheed scientists working on the Phoenix Lander.
Posted by Bill Canis at 1:00 PM | Click here to comment | Send to a Friend
June 24, 2007
$3.5 Billion in Regulatory Costs in Manufacturing
The cost of regulation is often cited as one of the structural costs that affect U.S. competitiveness. A unit of the Virginia General Assembly recently surveyed manufacturers in that state and has issued a report on the Impact of Manufacturing Regulations.
The General Assembly's report concludes that the cost for environmental, economic, workforce and tax compliance costs were $3.49 billion in 2005 alone in Virginia. Brett Vassey, President and CEO of the Virginia Manufacturers Association commended his legislators as perhaps being the first state legislature to develop an accurate picture of the true costs of regulation.
Regulatory costs are no stranger to manufacturers anywhere. NAM and The Manufacturing Institute have shown in recent studies how structural costs are rising faster here than in some of our major trading competitors. The Escalating Cost Crisis that we issued last year shows how U.S. manufacturing is saddled with 31.7 percent higher structural costs than nine major trade competitors like Canada, Germany, France, Japan and China.
Congratulations to VMA and the Virginia legislature for being cognizant of how these costs can affect manufacturing. Imagine if the US Congress would issue such a report on the regulatory impact on manufacturing?! Would that day ever dawn?
Posted by Bill Canis at 10:34 AM | Click here to comment | Send to a Friend
June 15, 2007
Panting for Justice
Readers of this blog and, by now, of just about every paper in the country, will know all about the $65 million law suit over a pair of misplaced pants at a dry cleaner. The case was brought by an administrative law judge in Washington, DC who is charged of course, in his job as a judge, with using good judgment on the bench. We are not the only ones who questioned his abilities after doggedly pursuing this case against a local small business owned by Korean immigrants.
The case is an excellent example of runaway legal mania and costs that affect all Americans. It's estimated that excess litigation in the United States costs our economy upwards of $865 billion a year! This has a huge impact on our nation's competitiveness and Mr. Pearson's case is a good summary of why we need legal reform in the United States.
So it was truly refreshing to read today's headline:
Pants Lawsuit Could Cost D.C. Judge His $100,000 Job.The judge who heard the case this week said she'd rule next week. In the meantime, Mr. Pearson's boss has now opined that Mr. Pearson does not deserve a reappointment. Now that's what I call justice.
Posted by Bill Canis at 9:44 AM | 1 comment; click here to read it or submit your own! | Send to a Friend
The Cuomo Fund
The headline in today's paper sounded innocent: Hopkins to Give $1m for Financial Aid Awareness. Goodness knows, young people in this country need better instruction on how the financial marketplace works, from credit cards to mortgages to balancing a checkbook. (They need similar advice about how to select their careers, but that's another story). So Johns Hopkins University's plan sounds good.
Reading further, the storyline gets more complicated. Maryland-based Johns Hopkins is taking this step as a result of an agreement with New York attorney general Andrew Cuomo who conducted a nationwide investigation of the student loan industry and found some alleged irregularities at some campuses, including Hopkins. Mr. Cuomo testified about this investigation a few weeks ago. Rather than dispute Cuomo's standing to even bring such a suit against a Maryland university, Hopkins has thrown in the the towel and, according to the article, agreed to:
give $562,500 each to Cuomo's fund for educating students and families about financial aid and a similar effort headed by Maryland attorney general Douglas Gansler.
While lauding the end product, I wonder about the process that produced it. Does anyone else think it's good for state AGs to be conducting nationwide campaigns? Isn't their first and foremost responsibility to enforce the laws of their home states?
Moreover, what about this: the money goes into "Cuomo's fund". I can't find any specific information about this fund. Does Mr. Cuomo control it? How much of the money goes for administrative overhead and how much directly to students? What independent fiduciary rules are in place? Is it partisan with only allies of Mr. Cuomo in charge? What benchmarks are in place to ensure that it is a result-oriented program? Most of all, is it right for any attorney general to use his or her legal clout to direct university money into a pet project? That really caught my attention. What do you think about this?
Posted by Bill Canis at 8:50 AM | 1 comment; click here to read it or submit your own! | Send to a Friend
R&D Goes Global
Manufacturing research and development is taking on a global nature just like the rest of manufacturing. With only 5 percent of the world's population in the United States, any manufacturer who declines to participate in the growing prosperity abroad is missing out on major market developments, to say the least.
Products used in this country are not always the ones that sell in China, Brazil or South Africa so researching and developing and thereby localizing the product is one challenge to operating abroad. There is a lot of talent in these countries, too, as education levels rise and mushrooming middle class populations grow. Nevertheless, it's still an appropriate topic for a hearing by the U.S. House Committee on Science and Technology. Here's what chairman Gordon said:
This Committee has been working hard to address one of the country’s most pressing issues, U.S. competitiveness,” said Committee Chairman Bart Gordon (D-TN). “As is widely recognized, our competitiveness and high standard of living is derived largely from our technological superiority. But almost on a daily basis we read announcements that more high-tech jobs are being offshored to developing countries.One of the witnesses at the committee's hearing this week was Dr. Tom Duesterberg, president of the Manufacturers Alliance/MAPI, one of the nation's foremost manufacturing research organizations. He presented cogent testimony about the manufacturing economy and trends in manufacturing R&D:
the United States remains a commanding R&D presence in the world, although China especially is becoming more attractive when future investments are considered. When UNCTAD asked non-U.S. multinationals from around the world what their preferred location was for new R&D projects abroad, the United States was listed second most often. China was mentioned most often, and India was listed third most often, followed by Japan and the United Kingdom.10 The survey demonstrates that the United States is a preferred location for R&D among multinationals headquartered in other developed and emerging countries.For Dr. Duesterberg's complete statement click here.
Posted by Bill Canis at 7:53 AM | Click here to comment | Send to a Friend
June 11, 2007
Pulling the Curtain Back on The New Deal
Like many Americans, we learned about the Great Depression in high school and college. Most perplexing about that era was why it lasted as long as it did. After all, recessions today might limp on for a few months, but back then something was very different.
From a political point of view, it was even more perplexing to me about how FDR could get re-elected in 1936 as the depression just worsened. It was even bad in 1940 when he ran for his unprecedented third term. Clearly the man had charm. Had the mantra then been, "It's the economy, stupid," he would have been tossed from office in '36 or '40.
Now some new light is shed on these important questions about American history and the functioning of our economy. Amity Shlaes, a former Wall Street Journal editorial writer and economic commentator, has published The Forgotten Man, which is a long overdue exploration of the New Deal and the real, forgotten people behind the U.S. economy in those years.
She spoke at the Heritage Foundation about her book last week, and I was drawn to her remarks because of the lingering questions I have always had about that era. It's clear that all the New Deal programs that gushed out of the Roosevelt administration did not have much of an impact on the economy. Ms. Shlaes writes that they in fact hindered the recovery that would have taken place otherwise. Make no mistake, she carries no brief for President Hoover either, but his errors of judgment in those days have been well described. Not so for the New Deal.
Ms. Shlaes looks at men and women who made a difference during the depression, but who had little to do with the New Deal. Her keen analysis shows that it was the economy itself that was the forgotten man of the 1930s, as FDR and his deputies strove to make social policy with little or no understanding about the economy. One of their goals was to nationalize government spending--often through the giant Public Works Administration--which was at that time mostly in the purview of the states. New Dealers didn't understand the economy, so they ignored it.
You'll have to read this book to see its full power. As reviewer Arnold Kling commented:
I would have thought that 1929 should have looked pretty good to people living in the depths of the Depression. But one of the many interesting lessons of Amity Shlaes' new history of the Great Depression and Franklin Roosevelt's New Deal is that many Americans, both inside and outside the Roosevelt Administration, thought of prosperity as an aberration. Instead, they saw hard times as the new norm.It's not hard to see the parallels with today. All sorts of bogus ideas are being floated by some running for President. We don't need another charismatic president who doesn't have a solid grip on how our economy works. We can't afford a president in that respect who needs on the job training. Read this book to see the follies of the Great Depression and who some of the true heroes were.
Posted by Bill Canis at 10:01 AM | Click here to comment | Send to a Friend
June 9, 2007
The Bottom of the Barrel
It's surprising to learn that barrels are still made in the United States. They seem like the preferred packaging of the late 1800s. How many old westerns have you seen where there wasn't a barrel?
Louisville-based Brown-Forman Corp. is not primarily in the barrel business, but it has the largest barrel making plant in the country and the oak products of this facility are a key component in making Jack Daniel's and its Kentucky bourbon whiskies. The barrel provides both the color and a lot of the flavor in whiskey, according to industry experts.
Thanks to the AP for bringing us this interesting insight into manufacturing. Economists would say that the barrel-making is part of intermediate manufacturing since it supports another major type of manufacturing, beverages.
Each week, 191 employees produce a staggering 10,000 to 11,000 barrels, each of which holds 53 gallons. According to AP,
About 90 percent of the barrels are filled with Jack Daniel's, reflecting the brand's robust market share. Case sales of Jack Daniel's Tennessee whiskey rose 6.6 percent last year to 8.9 million cases, and the brand is sold in 135 countries.
To get a good glimpse into how these barrels are used by Brown-Forman -- a great NAM member, by the way -- and later by other industries, be sure to read this article. When the phrase, "bottom of the barrel" is used in this industry, it thankfully has a whole different meaning than when it is usually used in Washington, DC.
Posted by Bill Canis at 7:39 AM | Click here to comment | Send to a Friend
June 5, 2007
Jenny Donaldson Votes for Manufacturing
The media often misses so much of what is really shaping our country and economy that it is almost a shock to read a piece that gets it right on every point.
Reporter Caitlin Gibson captured the story of Jenny Donaldson in the Washington Post magazine on Sunday, profiling this very enterprising young woman who is studying to be an engineer. "Engineering the Future" has a subtitle that tells it all: "Jenny Donaldson is at the vanguard of efforts by Montgomery College to help boost the number of engineers, especially among women and minorities."
The story gets it so right because (1) we have a critical shortage of native born American engineers, (2) this is a field that is critical to the future of US manufacturing, (3) community colleges have moved into the forefront to educate young Americans with the skills that are rising in demand and (4) a key part of this strategy is to ink agreements with regular, four-year colleges who will accept the credit hours of students like Donaldson who want to go further with their education.
Jenny is a remarkable young woman, a 22-year old single mother with a two-year old toddler. She graduated from high school a few years ago with a 3.8 GPA and a love of science and with courses in physics and calculus under her belt. Like so many high schoolers, she was encouraged to go right away to a four-year college, with apparently little career guidance. So she followed the pack to a four year college, but she left after three semesters. Like a third of all students entering four-year colleges, she dropped out. Jenny is finding a way around this non-system that we call higher ed.
Her dream is to design and build spacecraft! You can't have a much more ambitious dream than that and she has the interest and skills to get there. After all, 45 percent of all professional engineers now begin their education at a community college. Kudos to the US Department of Education for nurturing this process with a grant to Montgomery College to increase the number of women and minorities pursuing such degrees. If all the foreign students being trained as engineers left for opportunities back home, we'd be faced with an unprecedented shortage of engineers that would bode poorly for the future competitiveness of US industry.
We need to change attitudes toward engineering and manufacturing and community colleges and capture the talented young people like Donaldson and her classmates. The Institute's Dream It. Do It. campaign is helping do that too. Check it out at here.
To read the full story about Jenny Donaldson, click here.
Posted by Bill Canis at 9:47 AM | 2 comments; click here to read them or submit your own! | Send to a Friend
June 4, 2007
Memorial Day Continues: 65 Years Ago Today
While Memorial Day was marked a week ago today, the spirit behind it lives on. The Battle of Midway in the Pacific was fought 65 years ago today, decisively tipping the war in favor of the United States, even though the conflict had many more years to run its pace.
Six months after the decimation of the U.S. fleet at Pearl Harbor, U.S. ships confronted their Japanese adversaries and, after three days of battle, sank four enemy aircraft carriers and shifted the military advantage. Donald Goldstein, a history professor at the University of Pittsburgh, has written a book about the battle, "Miracle at Midway" and he says,
Japan's military never recovered from the loss because its industrial sector was unable to manufacture replacement aircraft carriers quickly enough to retake the advantage.
As much a today's political candidates for the highest office in the land talk about war and their views on it, listen to how few, if any, talk about the state of manufacturing that lies behind our preparedness. Here's another lesson that a thriving, strong manufacturing sector is important to any nation that would lead the Free World.
Click here for an AP story today about this important milestone in World War II. (Pictured is the current USS Yorktown, named for a predecessor ship tha was sunk at the Battle of Midway. It is the oldest Naval aircraft carrier still afloat today.)
Posted by Bill Canis at 9:16 AM | Click here to comment | Send to a Friend
June 1, 2007
TB Andy: Personal Injury Lawyer!
They are calling him TB Andy: the guy who had TB and was told by US health officials not to return to the United States because he could possibly infect others on his plane. He came back anyway and did so stealthily, flying to Canada and driving across the border. If others came down with his rare strain of TB, who cares?!
Now we've learned that this self-centered guy is a personal injury lawyer! Bingo, no wonder he doesn't care what happens to others! He's a perfect guy for the occupation he is in. It's all too well known that many in his "profession" are glad to line their own pockets while their clients get pennies. One of the champions of this line of graft is William Lerach. Click here to read an editorial from The Examiner about this guy.
In legal abuse circles, I wonder if someone who was on the plane with him will file a class action law suit again TB Andy? Wouldn't that be ironic? In more civilized places, people would say let's get over it and move on, but in America, many lawyers deem such sentiments absurd. And so up and up spiral the legal costs, higher here than anywhere else on the planet.
TB Andy is of the same ilk as Roy Pearson, the DC lawyer who is a DC employee and who is trying to extort $65 million from his dry cleaners because they misplaced a pair of pants. It's all me, me, me. One wonders if law schools teach any notion of ethics or if yesteryear's pirates have just smarted up and put on a new title.
Posted by Bill Canis at 8:30 AM | 2 comments; click here to read them or submit your own! | Send to a Friend
May 30, 2007
Romans to Streisand: No Price Gouging!
We have identified a new area for Congressional legislation on price gouging: entertainment. It seems that a consumer group in Rome has protested the high price of tickets that Barbra Streisand was going to charge for a concert in the Stadio Flaminio, which would have been her first concert in Italy and the start of her European tour.
According to the AP story,
Last week, consumer groups Codacons and Adusbef protested as "absurd and shameful" ticket prices ranging from $200 to more than $1,200, calling on authorities to deny Streisand use of the 24,000-seat stadium. The stadium is "public property and cannot be used for immoral deals that are shameful to a civilized country," the groups said in a statement.
Apparently believing in the power of the market, Streisand has shifted her opening concert to Zurich. Her tour promoter said that the change resulted from "unexpected production delays." Well, in fact, such things do happen. But Ms. Streisand and her fellow travelers are impatient when similar delays occur in the rest of the business world -- especially energy -- and demand government intervention. Will price control-loving members of Congress demand similar price gouging laws on entertainers' ticketing prices?
Don't hold your breath. This episode brings to mind the film in which Ms. Streisand performed about ten years ago, The Mirror Has Two Faces. Click here for the full story.
Posted by Bill Canis at 11:05 AM | 4 comments; click here to read them or submit your own! | Send to a Friend
May 29, 2007
Question for Sen. Hillary Clinton
At The Manufacturing Institute, we often undertake research projects dealing with the manufacturing economy and what strengthens it and what weakens it. I'm always interested in new perspectives.
Sen. Hillary Clinton is quoted in today's news with the following statement that I find intriguing:
There is no greater force for economic growth than free markets. But markets work best with rules that promote our values, protect our workers and give all people a chance to succeed," she said.
I'm genuinely interested to know if there is a report or study that corroborates her statement that markets work best with the kind of rules she cites. Maybe there are quite a few. I'm interested in the sources for that statement and presume others are too. If you can recommend that report, we'd all be interested. Thanks, readers.
Posted by Bill Canis at 12:49 PM | Click here to comment | Send to a Friend
May 27, 2007
Turning $6 billion into $66 billion
Manufacturers come in all sizes, from small companies with one or two employees to large companies that are household words. Their experiences as people who make things for the world to use are as diverse as the companies themselves.
That's why it is always interesting to read interviews with successful managers at manufacturing companies. The insights are always a pleasant surprise. So it was recently when a Wall Street Journal reporter interviewed George David, CEO of United Technologies Corp, maker of helicopters, jet engines, air conditioners, elevators and other sophisticated products that most people just take for granted.
During his 15-year tenure as the top executive, UTC's market capitalization has leaped from $6 billion to $66 billion. With that impressive record, the WSJ asked him