April 24, 2008

Tennessee Innovators

Innovation can be elusive. What is it exactly and how can a community nurture and encourage it? One thing is certain: innovation is the foundation of successful manufacturing and those firms that devise new processes and products are more competitive over the long-term.

The business and civic community in Chattanooga, Tennessee has hit on the right formula for identifying what innovation is within their metro region and--better yet--how to recognize and encourage it. More towns should follow their lead.

Every year at this time, the Chattanooga Area Chamber of Commerce announces the winner of the Kreusi Award for Innovation at its Spirit of Innovation Awards Luncheon. This year's local winner was TR Automation; here's a good synopsis from the local Chamber of Commerce about why TR Automation was selected.

Chamber President and CEO Tom Edd Wilson presented the Kruesi Award to Jerry Tyman Jr., TR Automation general manager, for developing a revolutionary approach to robotic work station manufacturing.

Called SuperCell, the innovation boosts productivity because the robot or robot group is working 95 percent of the time. The advance—particularly applicable to the automotive and aerospace industries—reduces floor space, improves the quality of parts manufactured and achieves a 30 percent reduction in production costs. TR Automation was selected from seven finalists, including Accurate Automation Corporation, Andersen Flaps, Inc., Astec Industries, Inc., Cleveland Tubing, Inc., EnWaste Recovery Systems and Transcard. All of these companies exhibited their innovations at the Convention Center event

The Chattanooga awards program always draws top speakers and a very large turnout of the regional business community. Tennessee Governor Bredesen spoke and Roger Staubach gave the keynote address.

Full disclosure requires that I let you know that I've been honored to be a Kreusi Award judge for the last several years. Chattanooga has drawn a wide range of judges from manufacturing and business to evaluate the nominees. It's a hard choice, because there are so many excellent examples of successful innovation in the region.

Other candidates included Astec, which has developed a new method to make asphalt that reduces fuel use by 14 percent and reduces emissions as well. If used in the New York metro region, for example, it would save nearly 19 million gallons of diesel used in conventional asphalt making. Accurate Automation was another finalist, which has developed and implemented an unmanned ocean racer with artificial intelligence. This craft can be operated remotely and serves as a patrol boat that can thwart terrorist attacks on ships and oil platforms.

Congratulations to the Kreusi family for supporting this initiative and to the Chattanooga business community for finding a way to shine a light on those firms that are thinking outside of the box and creating new generations of products and processes.

Posted by Bill Canis at 9:01 AM | Click here to comment | Send to a Friend

December 4, 2007

Harley-Davidson Now A Japanese Status Symbol

Harley-Davidson motorcycles, with their distinctive chrome styling and rumbling sound, are as American as apple pie.

But NAM employees who went on a tour of the company’s sprawling York, Pa., plant this week found out Harleys are going worldwide. In fact, tour guide Dave Spangler said Harleys have become a “status symbol” in Japan, a nation that is no slouch when it comes to motorcycle manufacturing.

Harley-Davidson Inc. shipped 13,300 motorcycles to Japan in 2006, up from less than 5,000 in 1997 when Japan dropped some regulatory barriers that had throttled sales, said Wayne Curtin, Harley Davidson’s government affairs director.

A matter of fact, Curtin said opening foreign markets is a top priority for Harley Davidson. The Senate is scheduled to vote on a Peru trade pact today, which could help boost motorcycle sales there, Curtin said.

It's also important the U.S. also approve trade deals with South Korea, Panama and Columbia because these deals would also make Harleys more affordable in those countries, Curtin said.
"The free trade agreements take tariffs of 8 percent to 20 percent and takes them to zero,” he said.

The 40-or-so NAM employees who took the tour of Harley-Davidson’s ultra-modern manufacturing floor, which featured robotic pressers and laser cutters, found out some more facts about the 104-year-old company.

Take our quiz. The answers are in the extended entry of this blog entry:

1. Harley-Davidson ships about 330,000 motorcycles a year. How many go to foreign countries?
A: 50%
B: 20%
C: 5%
D. 30%

2. Which president has not visited the Harley-Davison plant in York, Pa.?
A. Bill Clinton
B. George Bush
C. Ronald Reagan
D. Jimmy Carter

3. How fast can workers build a Harley-Davidson motorcycle?
A. 4 hours
B. 12 hours
C. 2 hours
D. 24 hours

4. Harley-Davidson offers a motorcycle paint color called “Jake and Elwood" blue. Who was this shade named in honor of?
A. The Blue Angels
B. Two plant workers
C. The Blues Brothers
D. St. Louis Blues hockey team members

Answers: 1.B 2.D 3.C 4.C

Posted by Greg Wright at 10:05 AM | 1 comment; click here to read it or submit your own! | Send to a Friend

November 17, 2007

Part 2--The Surprising Outlook in Idaho

I just returned from a business trip to Idaho where I had the distinct honor to address the 61st annual meeting of the Associated Taxpayers of Idaho, an audience comprised of probably one third business leaders and two-thirds legislative leaders.

While I was in Boise, I had the good fortune to visit the Amalgamated Sugar Company facility just north of town in Nampa. From afar, you can see this plant and its white cylindrical drying towers which have been landmarks here since World War II. If you looked just superficially at this plant, you'd think not much had changed in the past sixty years. And that of course is where you would be dead wrong. And you would have little understanding of how over 200,000 acres of sugar beets are processed at this facility every years--veritable mountains of big white-fleshed sugar beets.

Inside, technology and innovation are afoot as they are at most successful manufacturing facilities. Plant manager Kent Quinney, like many of the employees, has been there for well over a decade because it pays a very good salary and the work is challenging and rewarding. What struck me in my two and a half hours at the plant that much that used to be back-breaking work is now mechanized by machines and even robots. A case in point is a high-speed packaging line where 50 lb bags of finished sugar are handled. Previously one man could fill two, 50 lb. paper bags in a minute. Now, a new high speed packager fills 28 polybags in the same time. That's a great picture of productivity if ever there was one.

It's hard to describe the technology at work in the plant. It's way over my head and I could never do it justice in the same way Kent Quinney explained it. But they are inventing new ways to get more out of each sugar beet and have identified new byproducts that are popular in Japan and Europe, leading to export markets for this staple crop that is used in thousands of ways in baking, candy-making and food processing. Engineers are needed to keep this big operation underway. Large centrifuges are used in the final stages and it is truly magic to watch the yellowed sugar be literally spun white right before your eyes.

While in Boise, I also visited the Darigold milk processing plant. This facility is super clean as you can imagine and the 200,000 gallons of milk that are brought in each day in stainless steel tanker trucks are eventually sent out the door in plastic milk jugs. They plant also processes soy for beverages and it was that line that was underway when I was there, boxing up three large gallon packages for special sale at Costco.

Every batch of milk that is unloaded is sampled for purity and then a similar sample is sent on to company headquarters, in dry ice, for a retest. This is only the start of meticulous testing of the milk product. It's done over and over again in this plant as the milk is separated, cleaned, processed, pasteurized and packaged. After a batch of milk is finished, the plant uses multiple chemicals to clean the pipes and stainless steel tanks so that there will be no remnants of the previous milk left in the system.

The Darigold facility is heavily regulated--the Food & Drug Administration, EPA, state EPA, clients who have product made there visit frequently, OSHA, etc. While it is different in this way from the sugar beet facility, they are the same in that they have harnessed high-tech innovations to provide customers with the lowest-priced, highest quality known anywhere. And they have helped build food processing into the largest sector of U.S. manufacturing.

Posted by Bill Canis at 9:09 AM | Click here to comment | Send to a Friend

November 16, 2007

The Surprising Outlook in Idaho--Part 1

It has been twenty years since I was in this state in the upper northwest and I was not prepared for what I found here, as the keynote speaker for the 61st meeting of the Associated Taxpayers of Idaho (ATI). The ATI meeting was a unique mix of state legislators and business people and Gov. "Butch" Otter joined the ATI meeting for lunch and as the featured luncheon speaker. All in all, an impressive assemblage of men and women interested in the future of this state.

I wasn't prepared to find a state economy that is red hot and one of the top growth economies in the United States. Idaho ranks first in so many important measurements of growth, innovation and entrepreneurialism, that it is hard to know where to start:

It's first in the nation with its investment in manufacturing.

It is first in the nation in the number of patents issued on a per capita basis.

And it's only 5th among the states that show a high start-up rate among new businesses.

It's the #2 state in terms of non-agricultural employment growth and has the fifth lowest cost of doing business.

Its exports have increased by 55 percent, ranking it 7th in the nation.

And it has greater percentage of workers in "high-tech" than even California.

Did you know all this was going on up here?

A state known for great skiing and potatoes has become a LOT more. West of the state of Missouri, only three states obtain as much as 12-13 percent of the state economy from manufacturing and those three are Texas, Kansas and--you guessed it--Idaho. I had the distinct pleasure to visit two of the states major food processing plants while I was here. The Amalgamated Sugar facility in Nampa, just north of Boise. And the Dairlygold milk processing plant in Boise.

Did you know that food processing and manufacturing is the largest single sector in U.S. manufacturing? Bigger than autos. Bigger than chemicals. Bigger than electronics. And Idaho has a commanding lead in many ways within this industry and is carefully laying the basis for further growth within this sector. Hewlett Packard is here and Micron Technologies was born and raised here. But the blog entry that I'll finish up with tomorrow looks at food manufacturing and the amazing things going on with simple products like milk and sugar beets.

Posted by Bill Canis at 9:40 AM | 2 comments; click here to read them or submit your own! | Send to a Friend

October 24, 2007

Report from America: Little Rock, Arkansas

I was pleased for the opportunity to address the combined 79th Annual Meeting of the Arkansas State Chamber of Commerce and the Associated Industries of Arkansas in Little Rock yesterday. It looked like about 200 people, maybe more, turned out to hear U.S. Chamber of Commerce President Tom Donohue and yours truly of the National Association of Manufacturers.

Tom was his usual feisty self throwing rhetorical rocks at labor unions and left-wing activist groups that are advocating higher taxes and bigger government. I focused mainly on the story of manufacturing – that the U.S. remains the world’s greatest manufacturing nation, that manufactured exports are vital to our economy, and that it is high time our political leaders made competitiveness a priority. Tom and I were singing the same tune in our advocacy of a sensible energy policy, reducing corporate taxes, upgrading our infrastructure, reforming health care, bringing sensible balance to our legal system and promoting international trade.

It was my first visit to Little Rock. I was duly impressed with the beautiful city and wonderful people I met there. I extend sincere thanks to Hugh McDonald, Chairman of the Arkansas State Chamber, Benny Baker, Chairman of the Associated Industries of Arkansas and all of the others who made my visit such a pleasure. I hope to see you again.

Posted by Hank Cox at 9:42 AM | Click here to comment | Send to a Friend

June 16, 2007

Goodbye, Bismarck, and Thanks for All That Energy!

As a pleasant week on the prairies comes to an end, allow us one observation about the differences between bicoastal America and the heartland: Boy, it's nice to come to a place where most everybody is proud and supportive of coal and oil. And for good reason -- They're fueling the state's growing economy and population.

Population growth, or more typically its decline, has long been a measure of the North Dakota's vitality. Outmigration, an older demographic and the flight from the rural counties had cast a pall over the state's self-perception.

Now, instead of gloom a baby boom, thanks to energy.

Last year, 23 North Dakota counties had what demographers call a natural increase in population – births outnumbering deaths. But many counties still experience out-migration, so the net effect is that 15 counties saw a net population increase overall, according to a new report by the North Dakota State Data Center.

Many of those counties with increased population are in western North Dakota, reflecting the continuing energy boom, said demographer Richard Rathge, state data center director.

“This is very encouraging news and hopefully we can expand these numbers in the future,” he said.

And, the attitude toward energy remains welcoming:

BISMARCK, N.D. A $130 million plan to expand the Enbridge oil pipeline system in North Dakota is the biggest news for oil producers in the state in more than 20 years, a state official says.

Houston-based Enbridge Energy Partners L.P. announced the plans Friday, saying it will expand its pipeline system by 45,000 barrels per day by late 2009.

"It's the biggest thing since the current Enbridge system was built in about 1984," said Lynn Helms, the director of the state's Department of Mineral Resources.

The Enbridge system brings crude oil from western North Dakota and Eastern Montana to Minnesota to connect with other pipeline systems and then to refinery markets, officials say.

Not coincidently, North Dakota is one of a few states to have added manufacturing jobs in recent years.

We'll have some more reports from Coal Country next week.

Posted by Carter Wood at 2:34 PM | Click here to comment | Send to a Friend

May 8, 2007

Report from America: Cleveland

Yesterday the blogger-in=-chief was out in sunny Cleveland, Ohio, manufacturing mecca, to speak to the Wire Association International's "Wirenet" Conference. We got a bigger audience than we deserved, that's for sure, but were there for the awards ceremony. It was great to hear the many tributes to the various award winners, each one a story of persistence and innovation, the two key elements that make manufacturers special, and great. A special congratulations to Sharon Young, a leader in the industry and the first woman President of the Wire Association International (WAI), a few years back. She won the WAI's Donnellan Memorial Medal. Congrats are also due to Harry Petrohilos -- engineer, innovator and manufacturer -- who was awarded the WAI's "Mordica Award."

In any event, we talked about manufacturing and urged them all to tel their story, to invite their elected Representatives into their plants. Interestingly, we got one question from the crowd, expressing concern over inviting elected officials into their facilities, worried that they might instead try to cause problems for them. We assured the questioner that this would likely not happen, but what a sad commentary on the public's view of elected officials, no? The question was honest and legitimate, a real fear that maybe their elected official might just turn on them. That it was not out of the realm of possibility spoke volumes. Our electeds have a huge perception problem, don't you think...?

In any event, here's a link to our slides. Thanks to WAI Executive Director Steve Fetteroll and to WAI President Tom Moran, who did a very nice introduction (Given what he had to work with) and as always, to our wire pal John Martin of Mar-Mac Wire, a true warrior for manufacturing.

Posted by at 7:12 AM | Click here to comment | Send to a Friend

May 2, 2007

Report from America: Jacksonville and Captiva Island, Florida

The blogger-in-chief's been busy racing around the state of Florida these days, with a speech in Jacksonville to a group of HR types on Monday and a speech to the Power-Motion Technology Representatives Association (PTRA) in Captiva Island yesterday.

Incidentally, it is not possible to fly (commercial) directly from Jacksonville to Ft. Myers or anywhere near Captiva. And so we opted for a flight to Tampa and then drove -- with the help of a very cool portable GPS, a great manufactured product -- to Captiva, a fairly remote spot. For those of you not following the news, things were quite smoky in Jacksonville due to the brush fires just north of there in Alabama. More surprisingly was the fact that the smoke was palpable yesterday morning a few hundred miles south in Captiva. But we were undaunted. Where there's smoke, there's smoke.

To the HR group, we preached of the scourge that was this stupid card check bill. It really is incredible when we travel outside the Washington Beltway into the real world and talk about the card check bill. The look of boredom on their faces is palpable, thinking that it's all just some wacky idea cooked up by the unions and their Amen chorus in the Congress. When they hear that it passed the House in less than two months with 241 votes, the oxygen goes out of the room. They simply cannot believe that Congress would vote to scrap elections in the workplace. We urged them all to send a letter to their Senators to remind them of what a bad idea this bill really is.

To the PTRA, we gave our usual chat about manufacturing, along with a call to action. They were engaged and motivated and wanted to know how to get more involved. Here's a copy of our slides, here's a link to our Prosperity Project site and here's a link where they, too, can send a letter to their Senators on the ill-advised anti-democracy card check bill.

Thanks to both groups for their almost-rapt attention and their hospitality.

Posted by at 7:37 AM | Click here to comment | Send to a Friend

April 27, 2007

This Week on America's Business

"America's Business" spans the manufacturing world from Brazil to Mississippi this week, as host Mike Hambrick tackles trade, Toyota, energy and the manufacturing economy.

Hambrick reports on the recent visit of an NAM-led delegation of U.S. manufacturers to Sao Paulo, where they met with their Brazilian counterparts and government leaders to discuss ways of furthering the Doha Round of global trade talks. NAM President John Engler recounts the discussions; Whirlpool's vice president, Tom Catania, who chairs the U.S.-Brazil Trade Council, adds perspective; and Tom Murphy of Dow-Jones Newswires in Sao Paulo summarizes the news.

From northern Mississippi, Mike covers the groundbreaking of Toyota’s new $1.3 billion SUV plant. He interviews Jim Wiseman, vice president of external affairs for Toyota North America, Mississippi Governor Harley Barbour and Senator Trent Lott, R-MS.

John Byrd, president of the Association for Manufacturing Technology, provides his views on today's manufacturing economy.

And in the first segment of a far-reaching interview, former Speaker of the House Newt Gingrich examines energy security and environmentalist excesses, putting in a plug for nuclear energy at the same time.

In our regular segments, Drew Greenblatt reports from "The Factory Floor" of Marlin Steel Wire Products in Baltimore; Jean Ann Harcourt of Harcourt Industries in Indiana mounts the "Soap Box" to protest the death tax; the NAM's Hank Cox recalls "The Way it Was"; and NAM President John Engler closes with his "The Last Word" commentary on applying duties to counter China's industrial subsidies.

For more on "America's Business" and to listen to the show on-line, please click here.

Posted by Carter Wood at 4:10 PM | Click here to comment | Send to a Friend

April 21, 2007

Report from America: Orlando, Florida

As we noted below, yesterday found the blogger-in-chief in Orlando, Florida (seems he's spending an awful lot of time in Florida these days....) speaking to the Spring Meeting of the Association of Independent Corrugated Converters, expertly honchoed by our buddy Steve Young (not that Steve Young.)

In any event, we promised to post our slides and here they are. The AICC Fly-In is here in Washington DC in June and we have no doubt these folks will descend en masse for that event, carrying the message of manufacturing. As luck would have it, before our talk, three members of the AICC stood up to talk about why it was so important for everyone to participate in the Fly-In. As it turns out, they were about 2000% more effective and articulate than the blogger-in-chief in carrying the message (a low bar, we admit....) These folks are true believers -- in manufacturing, that is -- and it was great to be among them. All we can tell the Congress is to brace yourselves for when they arrive in June.

Thanks again to Steve Young and company (that includes new hires John Morgan and Kevin Ott) for their hospitality and for the invite.

Posted by Blogger's Apprentice at 7:50 AM | Click here to comment | Send to a Friend

April 4, 2007

Report from America: Asheville, NC

Yesterday found the blogger-in-chief in Asheville, North Carolina at the beautiful and historic Grove Park Inn, speaking to Barb Higgens and the nice people at the Plumbing Manufacturers Institute at their annual Spring Meeting. These are the folks who make the stuff you find inside every American home (except maybe In West Virginia), like sinks, toilets, etc. Theirs are the brands you all know well: American Standard, Price Pfister, Moen, Delta Faucet, Elkay, Fluidmaster, Kohler, Whirlpool, and a bunch of other smaller manufacturers like NEOPERL who you may not have heard of, but who are just as central to the ins and outs (if you will) of plumbing.

In any event, they didn't get the usual old time manufacturing religion speech but instead suffered through the blogger-in-chief bloviating about -- what else? -- blogging. We regaled them with all sorts of tales from the world's oldest blogger. We are clearly zealots on the topic and are bilingual in that we are middle-aged but speak blog. They make some of the coolest stuff and with a little luck, we might have scored a few videos of "Cool Stuff Being Made" from this group.

A few folks came up to us afterward to chat and to tell us of some very cool innovations that they are developing as we speak. As details of those come through, we will post them here. We mentioned the late great Dick Kelch and his "Peacemaker." These are every bit as cool -- and useful.

We also mentioned Google's April Fools' joke, their "TISP", beta wireless broadband access that first required the flushing of fiber optic cable down your toilet. We thought that would be right up their alley, and they clearly got a big charge out of it. maybe they'll partner with Google on the beta testing of this important invention, make a hoax into reality. We also touched on our little April Fools prank which also ended up fooling more people that we ever thought, and showed once again the tremendous power of the blogosphere.

So thanks again to bagpiper extraordinaire Barb Higgens for the invite and for doing such a great job with PMI. She's also incoming Chair of the NAM's Council of Manufacturing Associations so we had to be extra special nice to her. Truth is, in Barb's case it's not hard.

A good day, great location, good to be among America's leading manufacturers.

Posted by at 7:37 AM | 4 comments; click here to read them or submit your own! | Send to a Friend

March 20, 2007

Report from America: Jacksonville, Florida, v.2

Down here for the NAM's Annual Public Affairs Conference, a great agenda, turnout and lineup. Some highlights from yesterday:

An excellent trade panel where we discovered -- among other fun facts -- that in Scandinavia, unions are unabashedly pro-trade, because they see is obvious benefits. If only that were the case here...

Exporter extraordinaire and US manufacturer CNH (we've written about them here before) talked about their trade education program. They not only have a great site on trade education but they also have games on the site that teach the benefits of trade, games like, "Global Trader 2: Shaping Our World," "Seek-A-Word" and "Where's That?" Check 'em out.

Proud NAM member 3M is also an exporting powerhouse, exporting $4 billion worth of US-made goods around the world for every $1 billion of goods it imports.

3M also has a great employee involvement program, with 87% of employees surveyed saying they want to receive more information from the company on public policy issues and an astonishing 94% of those surveyed who actually voted. Don't believe manufacturers can't make a difference when they put their minds to it? Just ask former Rep. Bill Luther (D-MN). He ignored manufacturers and lost his election.

More tomorrow.

Posted by at 7:43 AM | Click here to comment | Send to a Friend

Report from America: Jacksonville, Florida

As we noted yesterday, this week the blogger-in-chief is in Jacksonville, Florida for the NAM's Annual Public Affairs Conference. But we did double duty yesterday, moseying on over to see the Mike Perry and the good folks from the Investment Casting Institute at their annual meeting here.

We told them we'd post our slides and here they are -- who we are (manufacturing in the US), what we're up against and what we need to do about it. They were engaged and motivated. We expect a bunch of Members of Congress to hear from ICI members, inviting them into their plants and talking to them about manufacturing, its importance and impact.

Got a question on card check, which enabled us to riff on that a bit. We must admit, the biggest problem with this issue is getting regular Americans to believe that it's a serious issue. At first blush, they simply cannot believe that Congress would pass a law throwing elections and democracy out the window. But then they hear it sailed through the House with 241 votes and they panic, get renewed vigor to contact their Senators. The ICI folks were no different. We expect a few letters to Senators on this topic. In fact, why not click here and send one now?

Thanks again to ICI for their great hospitality and their commitment to manufacturing.

Posted by at 7:14 AM | Click here to comment | Send to a Friend

February 13, 2007

Report from America: Frankfort, Kentucky and the Kentucky Association of Manufacturers

Yesterday found the blogger-in-chief in the cold Kentucky rain of Frankfort Kentucky at the "Prosperous Kentucky" Summit hosted by the newly-named Kentucky Association of Manufacturers. Bravo to the KAM for inserting "Manufacturers" into their name, as they were formerly Associated Industries of Kentucky. Glad the new KAM decided to wear it proudly.

Kentucky, as you may not be aware, is a major manufacturing state, and there are tons of NAM members there. Manufacturing is responsible for some $26 billion -- or 20% -- of the state's Gross Domestic Product, and a few hundred thousand jobs. The program opened with Kentucky Adjutant Gen. Donald Storm who gave just a great speech about the global war on terror -- and the enormous contribution of the Kentucky National Guard -- and referred to the assembled manufacturers as, "The folks who pay the bill." There's no doubt about that. They pay a lot of bills, send a lot of money up to Washington for them to spend on all sorts of stuff.

Rep. Ed Whitfield (R-KY) was there, stole the blogger-in-chief's thunder (not hard to do) by giving one of the most pro-manufacturing speeches we've ever heard. He correctly debunked a lot of myths about manufacturing in decline but gave a cautionary tale about the costs coming from Washington. When he finished, he was presented with the NAM's Award for Manufacturing Legislative Excellence. In the 109th Congress, he voted with us a whopping 96% of the time. (Anyone who votes with us over 70% of the time gets the award, remember.) He not only talks the talk (heck, even John Edwards does that -- and he scored 8%), he walks the walk, fighting every day for manufacturers, fighting to make us more competitive.

He was followed by Gov. Ernie Fletcher, another great friend of manufacturing. He recalled our work together on a bunch of issues when he was in Congress -- also winning our award. A physician, he was at times a lone voice on such ill-advised legislation as the so-called Patient's Bill of Rights, a voice that we sorely needed at the time. He has been tested of late in Kentucky, but his speech, too, was a reaffirmation of the importance of -- and his commitment to -- manufacturing. He's a great Governor, has created lots of jobs during his tenure. Would that all governors were as conscious as Ernie Fletcher about creating a climate in their states that allows manufacturing to survive and prosper. And, he is one of the most decent men in politics today -- a low bar, maybe, but he's a great guy.

All in all it was a great event and a great day. We even ran into our old buddy Rich Gimmel, President of Atlas Machine and Supply in Louisville. He handed us his card and tapped on the logo noting "A Century of Solutions."

"It's our hundredth year," he said proudly, and deservedly so. Rich served a time in broadcast news before returning to the family business, but now -- like all manufacturers -- is just proud of his company and the stuff they make. It's always great to be among manufacturers. These guys and gals power the economy, make prosperity wherever they go.

Thanks to Andy Meko of KAM for his hospitality and leadership. Through their ProsperousKentucky program, they are re-casting the image of manufacturing into what it truly is: The sector that drives the rest of the economy.

Today in that room, you couldn't help but feel the manufacturing vibe.

Posted by at 7:23 AM | Click here to comment | Send to a Friend

January 19, 2007

Report from America: Beaumont, Texas

Wednesday and Thursday found the blogger-in-chief in Beaumont, Texas for a few speeches and some related side trips. Beaumont is one of those places that is just so uniquely American. It's all too easy to forget, having been in Washington, DC far too long that middle America is alive and well. They started every meeting with a prayer, the pledge (and even the Texas pledge!) and is just one great big small town. Hard hit by Hurricane Rita, they have bounded back with a vengeance. Thanks to some great leadership by a good Mayor, Guy Goodson, and a very supportive Chamber of Commerce and Regional Planning Commission, they have not only come back up off the mat after the hurricane but have attracted an astounding $10 billion of investment and expansions. Many a state would covet Beaumont's record on this front. They did it by cooperating among various agencies and the private sector and by creating a climate for business. (California, are you listening....?) Big problem now is finding workers to handle all the work, a problem common to most manufacturers.

In any event, we promised them we would link to our slides and here they are. Thanks to Mayor Goodwin for his kind remarks and to Chamber President Jim Rich for his leadership and his hospitality. We even took a side trip to a CBI facility, a 70+-acre site that's being rehabbed -- right on the Neches River -- and being turned into a fabrication plant from which stuff will be loaded on to ships and sent all over the world -- from small but mighty Beaumont, Texas. Thanks to Sharon Dauterive of CBI for a grand tour of this facility that embodies the turnaround in Beaumont, and serves as a model for us all that when it comes to powering the economy, manufacturing leads the way.

Posted by at 7:35 AM | Click here to comment | Send to a Friend

December 2, 2006

Florida Manufacturers Meet

Yesterday I had the pleasure to speak to the annual meeting of the Manufacturers Association of Florida (MAF), meeting in Orlando. While it was nice to fly down to a warm, sunny destination like that, this blogger was there for about 6 hours and then came back to the office. That's a commute my grandparents wouldn't believe if they were still around, and it's been made possible by rising ecnomic growth in this country and the advanced technology manufactured products such as today's airplanes that make such travel easy and relatively affordable. Some of the parts on the plane I flew were probably even made in Florida.

One thing that might surprise many of you is that the manufacturing sector in Florida, which is clearly not as large as in Ohio, Wisconsin or California, still contributes more to the gross state product than either construction or agriculture! When you consider all the building that is always underway in the Sunshine State, as well as its deserved reputation as a citrus powerhouse, it's instructive to find out how dynamic and diversified the Florida manufacturing community is today.

If MAF has its way, then Florida will continue to grow as an important manufacturing location. I met an executive from Hoerbiger Compression Technology that makes the reciprocating compressors used in refrigeration and petroleum and natural gas production. Next time you turn on your gas stove or cooktop, think about how that gas got from the Gulf of Mexico to your kitchen. It doesn't just flow there by itself. Hoerbiger compressors all along the pipeline keep it moving so you can fix dinner or boil water for coffee. And those compressors are made in Florida (and Texas).

Manufacturing workforce issues are on everyone's mind in Florida. With ambitioius plans in many counties to bulk up on new manufacturing investments, they want to make sure they have the kind of workforce that will attract new companies and expansions at existing firms. This linkage between the schools, the economic developers and the manufacturers is never an easy one. Making it work is one of the functions of the Workforce Investment Boards around the country as well as associations such as the South Florida Manufacturers Association.

Floridians have a number of initiatives underway to help them see this path forward. Florida Trend's NEXT magazine had a special section recently on manufacturing geared to students who might want a career in manufacturing. It caught their eye by noting, "more than 400,000 Floridians statewide earn an average annual wage of $43,732 working at more than 16,000 manufacturing companies to make the products you use daily. The manufacturing industry offers not just jobs, but high-wage, high-skill careers that are 'Made in Florida.'" We learned at the meetings that in just one month, over 1,400 students had contacted MAF and other organizations, responding to this special section on manufacturing careers.

Florida also received a National Science Foundation grant to establish advanced technological education centers. There are only 33 in the United States, and 3 of them are right in Florida. As Arden Bement, head of the NSF said, this is the agency's "premier initiative with two-year colleges." To learn more about the NSF program, click here. And to learn more about the Florida component, click here.

Posted by Bill Canis at 8:18 AM | Click here to comment | Send to a Friend

November 18, 2006

Report from America: MANA - Louisville, Ky.

Yesterday found the blogger-in-chief in Louisville, Kentucky, visiting with and speaking to the good folks at the Manufacturers Agents National Association, the professional association for manufacturers' reps. These folks help sell our stuff domestically and around the world. As such, we are great allies and they are part of the great brother- and sisterhood of manufacturing in this country. They were led for years by our good friend Joe Miller, who recently retired. Bryan Shirley has taken Joe's place and is our newest friend at MANA, with whom we hope to work for many years.

Lots of interest in manufacturing, of course, took some questions about skilled workers, a growing issue in this booming economy. We talked about energy, and noted Rep. Jim Davis' (D-FL) comment on CNBC's "Squawkbox" this week in opposition to tapping our own resources in the Outer Continental Shelf. Debating OCS warrior Rep. John Peterson (R-PA), Davis said he feared that in looking for natural gas we might hit oil. Said one MANA attendee, "What's so bad about striking oil...?" Good point. Only in Washington is that a bad idea.

In any event, here's a copy of our slides from yesterday. Thanks to Bryan and to Jay Owenby and Linda McKee for their hospitality. Always good to be among members of the manufacturing family.

Posted by at 7:30 AM | 1 comment; click here to read it or submit your own! | Send to a Friend

November 10, 2006

Report from America: ISPA - Orlando, Florida

We're safely back from the sunny climes of Orlando, Florida, where the International Sleep Products Association rolled out the red carpet of hospitality, suffering through the blogger-in-chief's remarks without anyone nodding off. A first.

We were preceded by Dr. James F. Smith, an economist and professor at University of North Carolina's Flagler School of Business. He was great and insightful, rattling off some pretty bullish facts about the economy, nothing that the economy doesn't get much better than it is at this moment. His handout was entitled, "The Near-Term Global Outlook is Terrific," noting, "as usual, the media misreport economic conditions." On the topic of "offshoring" (he noted that "outsourcing" really describes the typical contracting out of, e.g., HR and administrative functions), he said that the Bureau of Labor Statistics found that in 2004, approximately 42,000 jobs -- out of about 150,000,000 -- were "offshored." According to the Organization for International Investment (OFII), over 5 million people in the US are directly employed by companies headquartered outside the US. Overall, a very bullish assessment of the economy by Dr. Smith. He really hammered away on productivity, where we lead the world. It is a measurement often overlooked by the media, but is critically important to our competitiveness and our wealth creation and standard of living.

We followed with our spiel and these slides, laying out the picture for manufacturing -- who we are, our challenges and the road ahead.

In any event, as a big end user of the product, it was great to be among the sleep products manufacturers. Dick Doyle runs a first-rate organization and is blessed with some great leadership like past chair David Orders of Park Place Corp. and current chair Kerry Tramel of Lady Americana. We did a panel on trade issues in the afternoon with Dick and Richard Diamonstein of Comfort Solutions. There were some tales in that room of some pretty flagrant intellectual property and trademark violations by China, and a sense that there's a need for some stepped-up enforcement by the US in this important area. We told them about the NAM counterfeiting toolkit, and steered them in that direction.

So thanks again to the folks who make all the stuff we use every day, to rest our weary bodies at day's end, for some hospitality and some interesting give and take. And no, there's no truth to the canard that your mattress doubles its weight every ten years, but a Wall Street Journal got the ball rolling on that one, and it's been hard to stop.

In any event, when you hit your mattress tonight, don't forget to thank America's manufacturers.

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November 4, 2006

Midwestern Legislators

It was a real pleasure to be invited to speak to the Council of State Governments, 61st Annual Meeting of their Midwestern Legislative Conference in Chicago.

The organizers of this year's Annual Meeting, which they say was the best attended in their history, had the foresight to include a special discussion on manufacturing. I was one of the speakers, as well as Bill Strauss from the Chicago Federal Reserve and Ron Bullock, Chairman and CEO of Bison Gear & Engineering, an innovative manufacturer outside Chicago.

When I sat down at the panel table, I looked out over the audience and thought, "uh, oh, these legislators don't care a hoot about manufacturing," because there were a lot of empty seats. But within a few minutes, a veritable gusher of attendees came in, eventually packing the room to standing-room-only. The interest in the future of Midwest manufacturing was strong and deep and cut across party lines. It was clear that some of our messages about the importance of manufacturing to the economy, the high-paying jobs and innovation in manufacturing had gotten through to these legislators.

A few years ago, when manufacturing was shedding jobs every month, the National Governors Association (NGA) held a special meeting during their winter session that focused on the future of manufacturing. Then-NAM chairman Dick Dauch (Cofounder, Chairman and CEO of American Axle in Detroit) spoke effectively and forcefully for manufacturers. These are important opportunities to reach the decision-makers who affect--for better or worse--the ability of manufacturers to compete in America. While we commend NGA and CSG for these opportunities, we'd sure like to see more of a regular dialog given the role manufacturers play in generating state revenues and jobs. Cutting costs that bedevil manufacturers is also a responsibility at the statehouse level and our recent report, The Escalating Cost Crisis, is as much directed to state government officials as it is to Federal policy makers. That's something for all legislators to think seriously about after Election Day, November 7.

If you would like to tap into the manufacturing program at the CSG meeting, click on this link for my Power Point presentation and click here for the Federal Reserve presentation. Ron Bullock addressed the skills shortage in manufacturing; download file here for his excellent overview

Posted by Bill Canis at 8:02 AM | Click here to comment | Send to a Friend

November 2, 2006

Fostering Pride in Craftsmanship in Michigan

Two businessmen from Michigan were in town the last few days and paid us a visit at NAM. It's nice to have a dose of the real world here in Washington, especially during the last week of a zany election marathon. It serves as a reminder that what really makes the country hum happens outside the Beltway.

Chris Salow is the founder of SMW Manufacturing, which makes cold formed products for the heavy truck industry in Munith, Mich.. While Mr. Salow is a very astute entrepreneur and business manager, his true passion is in fostering among today's young people a stronger appreciation of the skilled trades, which make today's modern manufacturing possible.

He has named his pro-manufacturing group Shop Rats Associates to appeal to younger men and women. He says that while some may think that getting their hands dirty and making new things is not the future, Salow points out that you can't have a modern industrial nation without such inventive individuals. Shop Rats are offering hands-on programs that allows young people interested in manufacturing careers to work with both their heads and their hands to solve problems, create and innovate.

Our industrial society is built on the skill and inventiveness of shop rats. They make sure the equipment that builds cars and refrigerators runs efficiently and when it breaks down, they bring it back on line. Up in space, when the International Space Station needed fixing, shop rats--astronauts in this case--used their shop rat skills to fix it. Soon even the Hubble Telescope is going to need a tune up to keep running and you can be sure they won't be sending lawyers and accountants, politicians or entertainers up there to fix it. They'll send men and women who are shop rats.

Other communities around the country are coming to understand that these skills are key to our future as an industrial society and are taking steps to bolster skilled workers. NAM and The Manufacturing Institute have created Dream It. Do It. to advance interest in manufacturing careers among young people. We congratulate Chris Salow and his team. To learn more about Shop Rats, click here.

Posted by Bill Canis at 2:45 PM | 2 comments; click here to read them or submit your own! | Send to a Friend

October 19, 2006

Report from America: Chicago, Illinois

We were just outside Chicago yesterday, in Hoffman Estates, speaking to the MAI Labor Law Conference. The MAI is a first-rate, well-run organization with NAM pal Mary Lynn Fayoumi at the helm. We actually stayed in Naperville, home of former Harris Fawell (R-IL), one of the most decent men who ever served in Congress. Our topic yesterday was an update on what's going on in Washington and what might be expected. We had to open by lamenting the absence of Harris Fawell and good, decent folks like him.

We handed out this classic list of current committee chairs and potential committee chairs and their NAM Vote Ratings. It's a powerful document. We talked about the narrow margins, the almost poisonous partisanship and the tyranny of the 60-vote rule in the Senate. This last issue has become one of our favorite outside-the-Beltway topics of late, as almost no one knows that you need 60 votes to get anything done in the Senate. Once they understand it, they realize why Congress doesn't accomplish more. The House passes bills, the President is ready to sign 'em, but we can't get to a fair up or down vote in the Senate.

If the House or Senate flips to the D's, we know from public statements what is on their agenda:

-- Minimum wage increase. This is a political, not an economic, issue. If folks really cared about lifting the poor out of poverty, they'd focus on skills in education. Most minimum wage workers are kids working part time after school. Think of it this way: Did you ever make the minimum wage? Do you make it today? Exactly -- it's a bottom rung. Democrats are certain to move on this issue first, as evidenced by lefty Harold Meyerson's piece in yesterday's WaPo.

-- The anti-democracy bill: This is our short-hand for the so-called "card check" bill championed by Rep. George Miller, the would-be Chair of the Education and Workforce Committee in a Dem-controlled Congress. It would short-circuit elections, letting unions gain recognition just by coercing folks into signing cards. How ironic if America, the beacon of democracy around the world, throws over democracy in this most important venue?

-- FMLA Expansion: There are three bills already introduced on this topic. One would allow nurse practitioners to grant an employee certification for a "chronic condition", another would expand the definition of "family" to to include-- among others-- same-sex partners, domestic partner and parent-in-law. The third would lower the threshold from 50 to 25 and allow FMLA use for parental or grandparental involvement for extracurricular activities, up to four hours in any 30-day period, a record keeping nightmare.

-- Oversight galore and at least an effort to overturn of the long-overdue Department of Labor overtime regs of a year ago.

-- ADA Expansion: Majority Whip-in-waiting Rep. Hoyer (D-MD) has long identified this as a priority and a goal. Remember that since the ADA passed, the participation rate of the disabled in the workplace has dwindled. This law has been a shot in the arm to the trial bar and has done precious little for the disabled in the workplace. Top claims under the ADA are for back injuries and emotional distress. Maybe clarification would be better than expansion.

In terms of what to do, we urged this audience of mostly HR practitioners to look to the Prosperity Project. It is a great employee communications tool. Surveys have shown that workers find employers far more credible than unions on these issues and that employees want tor receive information from their employers about the elections. No one is told how to vote, they are only given information from which they can make an informed decision. Helps you sort out the real supporters of manufacturing from the wannabes.

All in all, a great trip. Thanks again to Mary Lynn Fayoumi and MAI for the hospitality and for raising a good and attentive crowd.

Posted by at 7:48 AM | Click here to comment | Send to a Friend

October 13, 2006

Report from America: Detroit, Michigan and a Civics Lesson

Yes, that was snow in Detroit yesterday. Wow. Stepping off the plane on to the jetway when we landed and feeling that burst of frigid air made us all think we had overflown our destination and landed in Anchorage. To the matter at hand:

Spoke to the good folks from the Automotive PR Council. This meeting was organized by the Motor & Equipment Manufacturers Association and in attendance were many good manufacturers and NAM members. We gave 'em the old time religion on manufacturing.

Got a good question at the end, asking for an assessment of what the years of GOP rule in the Congress had accomplished.We mentioned the energy bill, the Class Action Fairness Act-- which is having real impact -- and of course the tax cuts, which (even though the WaPo ignores is) have led to real growth in this country and to a drastic reduction in the deficit.

However, we told the little-known and seldom reported fact, of which most in the room were unaware: That you need 60 votes to get anything done in the Senate. Senate Minority Leader Harry Reid (besieged now by a scandal involving a shady land deal) has frustrated the will of the majority through his use (or abuse) of the 60-vote rule. Death tax, energy, asbestos, and many other issues have had more than enough votes for passage but were one or two votes short of 60 never got to the floor. It's a coward's play, and is why more did not get accomplished, plain and simple. The House passed bills, the President was ready to sign 'em, but they never got through Harry Reid.

In any event, the group in Michigan was friendly and attentive. We promised to post our slides, so here they are. For the good folks who suffered through our remarks at the ANSI Conference on Wednesday, the slides -- and the message -- are the same.

Posted by at 7:30 AM | Click here to comment | Send to a Friend

October 7, 2006

Report from America: The Christening of the USS George H. W. Bush: A Paean to Manufacturing

A great event today, the christening of the USS George H. W. Bush. It was only fitting that the lead manufacturing voice in the country, NAM President John Engler, was right up there in the front for the whole shebang. (We were back in the cheap seats, enjoyed it nonetheless.) The weather could have cooperated a bit more, but it still was great, sitting in the shadow of this enormous, 90,000-ton ship. It is also a testament to nuclear energy for us all. This ship is powered by two nuclear reactors that can operate for more than 20 years without refueling.

Everywhere you looked, it was a testament to manufacturing, whether driving through the yards to get to the event (clearly a manufacturing facility) to the many kudos given by the speakers to the workers who built this engineering beauty, manufacturing was in the air. Several thousand manufacturing suppliers provide parts for the ship, designated CVN-77. (For you neophytes out there, "C" means it's an aircraft carrier, "V" means it has fixed-wing aircraft -- as vs. helicopters, or '"helos" in Navy parlance -- and "N" denotes that it's a nuclear-powered ship.)

Former President Bush was gracious in his praise for the workers and for the armed services, many of whom were in attendance. We sat right next to their section, officers and enlisted alike. At the first note of the National Anthem, every one of them snapped a crisp salute which they held for the duration of the song. It was impressive to see.

Luminaries included President Bush, Virginia Governor Tim Kaine, both Virginia Senators -- Warner and Allen -- Defense Secretary Rumsfeld, and Ron Sugar, CEO of shipbuilder (and proud NAM member) Northrop-Grumman. All the Navy top brass also came out on this auspicious day to salute this great ship and its namesake. At the end of the ceremony, Doro Bush Koch -- "43's" sister and "41's" daughter -- broke a bottle of the traditional sparkling American wine across the bow, and the christening was official. Much more work remains to be done on the ship and it will sail after it is commissioned, in about two years.

As we noted, we had the honor of serving in "41's" Administration. It is fitting that this ship is named for a man who dedicated his life to public service. It will have many years of public service itself, and will carry men and women who all aspire to the greatness that he achieved. To echo former President Bush's comments, we wish smooth seas and following winds to the USS George H.W. Bush and the many men and women who will be its crew over its lifetime.

And we salute all the manufacturers who made this great ship possible. They are indeed the best shipbuilders, the best manufacturers in the world. We were glad we could be with them today -- it was a special day for them, too.

Click here to see a video of the day's events and click here to see President Bush's ("43") remarks.

Posted by at 9:15 PM | Click here to comment | Send to a Friend

September 26, 2006

Report from America: Gaithersburg, Maryland

You know we like to do these "Reports from America" whenever we travel outside the Washington Beltway. Well, last night we traveled outside the Washington Beltway, but we did it by car, and were only about 10 miles outside the Beltway, but it qualifies, right?

We got invited to address a group at the National Institute of Standards and Technology -- otherwise known as "NIST." They were having a forum on innovation and competitiveness and so we went up to give our spiel on manufacturing.

We promised them we'd post our slides on the blog today so here they are. Unfortunately, by the time your read this they will already be dated in that the cost figures are from our old study. The new data was embargoed until 9 a.m. today, so we couldn't use it. It would have painted a more dire picture.

In any event, thanks to the irrepressible Nina McClellan of NIST and Mike Taubitz of GM for the invite and for hosting. You can't help but feel the manufacturing vibe at NIST.

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September 23, 2006

Report from America: Chicago

Always good to get outside the Washington Beltway for a day or two. Went to Chicago on Thursday, saw some good American manufacturing companies -- Illinois Tool Works, USG and PepsiCo, on Thursday. On Friday, spoke to a nice and patient group at the Ragan Communications 10th Annual Strategic Public Relations Conference about -- what else? -- blogging.

All our manufacturers appear to be doing well, in spite of some of them facing long odds in the form of legal costs and challenges from an ambitious -- and often unscrupulous -- trial bar, but man, do these manufacturers soldier on. They make stuff, they make prosperity.

As for the blog conference, it was a lot of fun, got a ton of questions. Thanks to Kirsten Lambert of Watermark Communications for getting us the gig and to Ragan Communications for their hospitality.

Posted by at 9:42 AM | Click here to comment | Send to a Friend

September 14, 2006

Report from America: Detroit

Yesterday found the blogger-in-chief outside Detroit, in Troy, Michigan, at ArvinMeritor headquarters. ArvinMeritor is an $8 billion company, a supplier to the auto industry employing over 30,000 employees in 25 countries. You can't help but feel the manufacturing vibe in Detroit and especially at ArvinMeritor HQ. They have a huge display in their lobby of all the suspension systems, wheels, roofs and various parts that they make, that go into the cars you drive (Yes, we asked them for a video, not to worry).

We visited with ArvinMeritor and a bunch of other Detroit-are companies, talked about the Prosperity Project, urged everyone to push between now and the elections to let their employees know about "P2" as we call it, and to get involved. It really is something to see. Even in union shops, employees who educate themselves through P2 will choose the pro-business candidate time and time again. Just give 'em the facts, and they take it from there.

We learned about a really neat venture of ArvinMeritor, a plant that they built right in the middle of the city, right next to a high school. Here's a link to a news story about this very inspirational tale, one manufacturer that is making a big difference. We'll be writing more on it later, but this will get you started.

Michigan's economy, a most of you know, has taken a dive of late. It is one of only two states that have lost jobs this year -- the other being Katrina-battered Louisiana. Incumbent Gov. Granholm is suffering in the polls as a result, and challenger Dick DeVos is giving her a run for her money. Stay tuned, as this is a race that everyone will be watching.

In any event, thanks to Jerry Rush of ArvinMeritor for hosting us and to Chuck Hadden of the Michigan Manufacturers Association, always on his toes. The MMA, incidentally, will be meeting on Friday with both Gubernatorial candidates. They hope to decide soon thereafter on an endorsement. We'll keep you posted.

Posted by at 7:16 AM | 1 comment; click here to read it or submit your own! | Send to a Friend

August 17, 2006

Report from America: Texas Instruments - Dallas, Texas

Working at Texas Instruments(TI) in Dallas in the summer of 1958, Jack Kilby conceived and built the first electronic circuit in which all of the components were fabricated in a single piece of semiconductor material half the size of a paper clip. This historic innovation revolutionized the industry and ultimately, the world. For his efforts, -- and some 60 other patents he owned -- Kilby received the National Medal of Science, was inducted into the Inventors Hall of Fame and finally, in 2000 was awarded the Nobel Prize in Physics.

We were in Dallas yesterday for the NAM's Communications Council meeting, marveling at the end result (thus far) of what Jack Kilby hath wrought, touring Texas Instruments' Dallas Metal Oxide Semiconductor Plant #6, or DMOS6, a state-of-the-art wafer fab plant.

This plant, first and foremost, is enormous. It covers some 190,000 square feet -- the size of three football fields. The centerpiece is a "clean room" where 600-700 workers make the 300 mm (about 12") wafer. The manufacturing was impressive, but equally as impressive is the technology of guaranteeing that the facility stays "clean" -- in fact, 100 times cleaner than an operating room. You don't even want to know how much cleaner than your house that is. This facility cranks out about 15,000 wafers a month -- baked at 2,000-3,000 degrees Fahrenheit -- that are then sent to be cut into millions of small semiconductor chips and then find their way into computers, cell phones and other digital equipment. The plant is highly automated and is just a sight to behold.

From digital signal processors, we went to their Spring Creek facility to see their Cinema Products group and their Digital Light Processing (DLP) showroom and display. These images are incredible for their fidelity, even on large screens. Thanks to Dan Larson of TI for setting up both tours and to Steve Russo for being a great impromptu tour guide.

Washington is such a Godless place, it is easy to forget some times that there is a real world out there. For us, a trip to see a real manufacturer doing what they do best is a complete burst of oxygen, a shot of adrenaline. This is a company that spends some $2 billion a year on research and development. They are at the cutting edge of technology and innovation in a sector, an industry that changes by the half-second. It was just so inspirational and affirming to stand there in the midst of all this innovation and manufacturing and feel the vibe. All who saw it were truly blown away by the scale of the place, the technology necessary to manufacture and the technology necessary to keep the facility a level of clean that's almost incomprehensible. This is a world-class manufacturer that is competing with the best in the world and winning.

"Many consumers associate TI with the development of the transistor radio the handheld calculator and Speak and Spell technology [made famous by ET]", said Popular Mechanics. "Generations X and Y will know TI as the brains behind breakthrough video, digital-imaging and wireless products."

American manufacturing is alive and well. If you run into anyone who doubts it, if you see anyone who still thinks manufacturing is dirty low-end work, send 'em down to DMOS6.

Somewhere, Jack Kilby is smiling.

Posted by at 7:38 AM | 1 comment; click here to read it or submit your own! | Send to a Friend

August 15, 2006

On the Road Again

Today finds the BIC in Dallas, Texas for the NAM Communications Council meeting. We're also going to be touring a really cool manufacturing plant along the way. Expect a Report from America later tomorrow when we return.

Posted by at 1:52 PM | Click here to comment | Send to a Friend

June 13, 2006

Report from America: Las Vegas

Spent yesterday in the land of sun and sin (not in that order, necessarily), Las Vegas, speaking to the Progressive Manufacturing Summit. (And no, to those of you who e-mailed us, it was not an offshoot of the Yearly Kos).

In any event, it was a room full of roll-up-the-sleeves manufacturers -- you know, the people who make prosperity in this country. These folks all embrace the principles of lean manufacturing and work diligently to maximize the efficiency of their processes so as to wring out all excess costs. We used the slide posted over on the left, the "Lean Not Spoken Here" logo, imposed over a picture of the Capitol building. Got a great reaction. They got the point. The folks under the dome are imposing ever-higher costs on American manufactures or turn a blind eye when it comes time to lower costs, like energy cost, by simply opening up domestic supplies of energy.

In any event, it was a good and attentive group and we told them to check here for the slides today, so here they are.

We didn't quite make it all the way home -- thanks to the incompetent boobs over at UAL -- only made it as far as Denver. Will write more on this later today, as there were some manufacturers in the room with great stories to tell. Will highlight one of them later.

Posted by at 7:13 AM | Click here to comment | Send to a Friend

June 7, 2006

Report from America: Chicago

Yesterday found the blogger-in-chief at the RSM McGladrey Network Forum '06. It was a good group and we were with our good friend and NAM Board Member Tom Murphy of McGladrey. In any event, for those of you who suffered through the remarks, here's a copy of the slides used yesterday. For you real manufacturers out there who use "lean" every day, our favorite slide is a little ways in, a photo of the Capitol with the slogan, "Lean Not Spoken Here." All too true.

Thanks again to the good folks from McGladrey for their hospitality and sufferance.

Posted by at 7:05 AM | Click here to comment | Send to a Friend

March 25, 2006

Report from America: Globalization Hits South Carolina

Yesterday the blogger-in-chief was in Kiawah Island, South Carolina at The Sanctuary -- a pretty stinkin' nice place, by the way -- to meet with the South Carolina Manufacturers Alliance (SCMA). This is a good group of mostly NAM-member companies (and a few who aren't, but should be -- you know who you are...), who are very bullish on manufacturing in a place that has become a major manufacturing state.

There is no doubt that the textile industry has been hard-hit in South Carolina, but the state really is a microcosm for manufacturing in America writ large. What has happened is that the lost textile jobs have been supplanted by jobs in other sectors. In the room were such mammoth manufacturers as Michelin and BMW. Together they are employing thousands of workers in well-paid jobs in South Carolina. According to the Organization for International Investment, some 123,000 South Carolinians are employers by "foreign-owned" firms,a number that increased almost 10% in the past five years alone.

So thanks to the SCMA for the incite and their hospitality. I was followed by Sen. Jim DeMint, an ally of manufacturing. Also, Gov. Sanford was on the program alter in the weekend. He's worked hard to create a climate there that allows manufacturing to prosper. (Wonder where your state rates in competitiveness and business climate? Get a Competitiveness Redbook). The other Senator from South Carolina is in China trying to get the Chinese to revalue their currency. More on that later.

Looks like globalization has hit South Carolina like it's hit Indiana and Georgia and so many other states. At the end of the day-- like the country as a whole -- they're better off for it.

Posted by at 7:42 AM | Click here to comment | Send to a Friend

March 24, 2006

Concerned About Skills in Indiana

Yesterday, I had the pleasure to participate in an economic forecasting forum in South Bend Indiana put on by the Northern Indiana Workforce Investment Board. During the event, which was moderated by Terry Savage of the Chicago Sun Times, the other economists and I not only talked amongst ourselves but also responded to questions from an audience of about 300-400.

More than any other topic, the issue of skills and education came up again and again. What skills are manufacturers looking for? How does our educational system stack up internationally? Are we producing enough engineers and scientists? What will happen to those who lack the skills required in the ever-changing workforce? The topic of skills and education was on the mind of the audience.

Which should not be a surprise. You see, 28 percent of Indiana's economy is manufacturing, making it the most industrial-intense state in the nation. Indiana manufacturing is very diverse, including sizable shares of transportation products, chemicals, primary/fabricated metals, medial equipment and machinery. After falling by 9% in 2001, Indiana manufacturing has averaged 5% growth in the following 3 years, an has accounted for 50% (half) of the state's economic growth since the end of the recession.

As the most recent Manufacturing Week Survey shows, manufacturers are now in the mood to hire. However, half of them who are looking to hire can't find qualified candidates to fill an opening. This brings us back to education. It seems clear that there is a disconnect between what high schools and 2 year colleges are teaching, and what skills industry needs in today's economy. The longer we let this skills gap expand, the larger the problem will become. Its time for policy makers at the state, local and national levels to come together with industry to make sure that the U.S. education system is better aligned with the job market of today and tomorrow.

Posted by Dave Huether at 12:53 PM | 1 comment; click here to read it or submit your own! | Send to a Friend

More on the Visit to Cummins' Engine Plant

A few days ago I blogged about my visit to Cummins' engine plant just south of Indianapolis, Indiana, where they exclusively make the big diesel engines that power Dodge Ram trucks. These engines are a key part of appeal of Dodge's Ram series, so much so that the Cummins name is part of the truck name on the sides of the vehicles.

Check out my earlier blog entry if you want a short introduction to what the inside of today's manufacturing looks like. It is a truly beautiful plant with more sunlight than most modern office buildings. Moreover, it offers a high standard of living to those lucky enough to have jobs there and technology applications and quality controls that are truly impressive. Engine sales of all kinds make up over half of Cummins' business, with power generation, parts and distribution making up the rest.

On that last blog, I mentioned the article about Cummins from the March 16 Investors Business Daily, titled "Cummins Gains New Thrust from Strong Overseas Sales." The article shows that American manufacturers are strong competitors on the world stage and that this global viewpoint is strengthening their bottom line. Sales grew 34% in 2004 and 18% last year and return on equity was a remarkable 26% and 33% in the same years. The US part of their business grew by a healthy 11% last year, but international sales leaped by 25%. But it wasn't always this way. During the severe manufacturing recession that started in 2000 and ran into 2003, Cummins went through what that IBD article describes as "the worst period in its history." Sales were sluggish and debt was growing. But the economy and the company's leaders turned it around and is now planning new capital expenditures to increase capacity and fund new products.

Posted by Bill Canis at 8:45 AM | Click here to comment | Send to a Friend

March 22, 2006

Cummins' Engines in the Premier Manufacturing State

Not everyone knows that the nation's premier manufacturing state is Indiana. Yes, Indiana. Over the years, the Hoosier state is consistently ranked as having more of its economy stemming from manufacturing activity than any other state in the union. Other states have larger manufacturing sectors, but none can match Indiana in terms of the share of Gross State Product.

I'm out in Indianapolis today to speak to a group of manufacturers. Since I was here, I piggybacked a visit to Cummins down in Columbus, about an hour south of this big city...

It used to be Cummins Engine, but they streamlined the name a few years ago. But engines is still what they do and it was indeed fascinating to tour their Columbus Midrange Engine Plant where the diesel engines for Dodge Ram pick up trucks are made.

I don't think Frank Lloyd Wright designed any manufacturing plants, but he would love this place because it respects the terrain on which it is built in the way his famous houses do. Approaching the plant, only some glass walls are visible. Parking is on the roof of the building, to minimize the impact of the plant on the surrounding area. The real surprise is the amount of natural light everywhere in the plant. Large windows help illuminate the interior and from most of the production lines, daylight is everywhere. It was sunny today and the effect created a very pleasing facility. Few modern offices have this kind of lighting.

The Cummins engine is an important part of the Dodge Ram branding. In fact, Dodge puts the Cummins name right on their trucks. You won't find many other brand names on cars and trucks other than the original equipment manufacturer's own name. But the quality and durability of Cummins is so well known, that Dodge proudly uses it on their trucks.

These are powerful, 325 horsepower engines and it is fascinating to see them assembled from the stripped down engine blocks, with over 300 parts being added to a single engine along its path through the sunlight plant. Engines are tested at many points along the way to ensure reliability. Technology is applied everywhere, from the overhead system that methodically moves engine from station to station to the robots used to paint a clear sealant on the engines when they are nearly done. RFID is now just being used in some industries, but has been a standard tool here for over a decade. One of the most interesting new technologies is an infrared reader that checks bar codes and stores the information for analysis of certain parts later on.

The Cummins CMEP plant has about 1,000 employees, almost equally divided 50/50 between men and women. Manufacturing is no longer just a man's world, if you still have that misimpression. Some employees have full college educations and others two year degrees or high school degrees. The plant runs on 3 shifts and produces 750 engines a day. Way back in April 2003, they shipped their millionth engine, so this is an American manufacturing success story.

Investors Business Daily thought so and a week or so ago, they printed a story where they noted that Cummins, in 2005 "reached a tipping point. For the first time, the international slice of the company's total sales became the majority 51%. It wasn't as if US sales were hurting. Last year, the US segment grew 11%. But international sales expanded even faster at a 25% clip." I'll blog some more about Cummins tomorrow. What an incredible company demonstrating the best of