November 9, 2007

Logistically Speaking, U.S. Ranks 14th

The new annual survey from the World Bank of how countries rank in their trade logistics performance is just out, and the U.S. stands a fair to middling 14th. China ranks 30th. The survey rates countries according to:

1. Customs
2. Infrastructure
3. International Shipments
4. Logistics Competence
5. Tracking and Tracing
6. Domestic Logistics Costs
7. Timeliness

The top five are 1. Singapore, 2. Netherlands, 3. Germany, 4. Sweden, 5. Austria

Given all the (negative) attention paid recently to infrastructure, we would have thought the U.S. would have ranked poorly in that area, but the World Bank survey gave the U.S. seventh place in that category. (You can access a sortable table of the results here.) It's in "domestic logistics costs" -- local transportation, warehousing, terminal handling -- where the United States did most poorly, ranking 144th.

We speculate as to reasons: Energy costs, taxes, benefit mandates, excessive regulations -- many of the same things that contribute to the 31.7 percent cost disadvantage faced by manufacturers in the United States compared to our major global competitors. (As reported in our study, the Escalating Cost Crisis.) And then there's geographic distance; more compact industrialized countries seem to do well.

We haven't delved deeply into the methodology, so hesitate to pronounce on the annual rankings with the usual rhetoric about warning signals, wake-up calls and words to the wise. Still, at first glance this looks like a pretty good summary: The United States has many logistical strengths that help us compete in the global economy, but there's plenty room for improvement.

Thanks to the 3PLWire Blog (Third Party Logistics) for posting on the report.

Posted by Carter Wood at 8:56 AM | Click here to comment | Send to a Friend

September 6, 2007

California's Competitiveness Improves....A Little

Excellent summary of the challenges* facing California's manufacturers, posted by Jack Stewart of the California Manufacturers and Technology Association, at the CMTA's blog.

Last month the Milken Institute published its 2007 U.S. Manufacturing Cost Index, commissioned by the California Manufacturers & Technology Association. Relative to the 49 other states, California became slightly more competitive -- not because the cost of manufacturing in California decreased, but because manufacturing costs in other states increased more rapidly than in California. California still ranks abysmally low compared to the rest of the country. More importantly, the cost differential between California and the neighboring western states is even more dramatic. Energy rates in our State are 34 percent higher than the national average while our western neighbors are 10 percent below the national average. In wage burden (comprising workers' compensation, healthcare, paid leave, salary, etc) California comes in at 14 percent above the 50 state average while our competitors in the west are 18 percent below.

As California’s 2007 Legislative Session comes to a blissful close, the State's highest wage producers -- manufacturers -- are left with the very real prospect of increased energy costs as a result greenhouse gas reduction mandates and the potential for expensive universal healthcare. In addition, California is still one of only four states that "double taxes" the products we manufacture (by taxing both the purchase of machinery and equipment and the profits of the products those machines make). These three issues loom large and, coupled with the state's growing skills gap, create possible deal breakers for manufacturers looking to site or grow their operations in the California. See Wonder Bread .

* Challenge. Everytime you see someone use that word, try replacing it with "damn serious problem." "Challenge" is just more polite sounding.

Posted by Carter Wood at 8:09 AM | Click here to comment | Send to a Friend

August 28, 2007

NAM Report: Demand for Workers Boosts Wages

The NAM has just released its 10th annual Labor Day Report, a review of the U.S. economy, with particular emphasis on the manufacturing sector and -- it being Labor Day -- workers. You can see the entire report and additional resources by going to the NAM's page, www.nam.org/labordayreport.

The report began a decade ago to provide balance to the inevitably dour view of the economy offered annually by organized labor. No matter what the figures said, labor's take was always something along the line of, "Workers are getting a raw deal."

Now, the NAM doesn't shy away from the facts. As NAM Chief Economist David Huether explains in the video above, the last four quarters have seen the biggest downturn in housing in 16 years.

Still, the economy is strong, and workers are doing remarkably well. Key highlights from the Labor Day Report:

The labor market is tight, with the unemployment rate nationally at 4.6 percent. Many parts of the country (Montana, as this report notes), are absolutely crying for workers.

With demand high, about 95 million working Americans, representing 82 percent of the workforce, received real wage gains over the last year.

This represents the broadest gain in real wages since 2000. (Only three industry sectors experienced declines in real wages – retail trade, transportation and warehousing, and utilities.)

Gains among the manufacturing workforce are even stronger, as the sector's employees earned 30 percent more than the private-sector average.

In real dollar figures, that final fact translates to the average yearly compensation for a full-time worker in manufacturing rising to $68,860, compared to an average of $53,500 in the rest of the private-sector workforce.

Good news for manufacturing workers, definitely, but the sign of lots of headaches for employers. NAM members we've surveyed report serious difficulties hiring skilled employees; indeed, the issues ranks only second to health care as a concern for NAM members.

With Labor Day also arrives the start of the new school year, and we think the NAM's Annual Labor Day report serves a pedagogic purpose. Hey, you young people: You want to earn a good wage? Study math and science, gain some technical skills, and get into manufacturing.

We really need you.

Again, the report is: www.nam.org/labordayreport

Posted by Carter Wood at 5:00 PM | 1 comment; click here to read it or submit your own! | Send to a Friend

January 18, 2007

When a Laboratory of Democracy Goes Awry

The San Francisco Chronicle reports, "On Feb. 5, San Francisco will become the first city in the country to require all businesses to provide paid sick leave to their employees -- full- and part-time employees, permanent workers and temps."

Some small-business owners say that the sick leave law by itself isn't a problem: It's the combination of sick leave with other city mandates. San Francisco's minimum wage just rose to $9.14, which is higher than the statewide minimum of $7.50. The city levies a 1.5 percent tax on businesses with payrolls over $166,667. And in July, San Francisco will start phasing in a new requirement that companies with 20 or more workers spend at least $1.11 per hour per employee on health coverage. [Hat tip: Ted Frank at Point of Law]

John Fund of the Wall Street Journal analyzes Gov. Schwarzenegger's universal health care plan:

Last November, Gov. Schwarzenegger won landslide re-election in part by winning 91% of Republicans with an ironclad pledge not to raise taxes. He pounded Phil Angelides, his Democratic opponent, for wanting to raise taxes by $7 billion to pay for universal health care. But now the estimated cost of the Schwarzenegger plan to cover California's uninsured, including two million illegal aliens, is $12 billion. State subsidies for people to buy insurance will extend to those earning up to $50,000 a year, more than California's median income. "He's creating a welfare state where more than half the people are in the wagon being pulled than outside the wagon pulling," says one health-care analyst.

As bad as the policy implications are, the governor's plan may be fatally flawed, politically. He insists it doesn't raise taxes, despite billions in new charges on doctors, hospitals and employers. He prefers to call the new revenue "in-lieu fees" and "coverage dividends."

The Empire Center for New York State Policy has issued a new research bulletin, assessing "out-migration" from the states from 2005-2006. The biggest losers in population? Hurricane-ravaged Louisiana. New York (high taxes, etc.)

And, No. 1: California, losing 287,000 residents who moved away from the Golden State.

Or fled a hostile business environment, as the case may be.

Posted by Carter Wood at 9:30 AM | Click here to comment | Send to a Friend

December 18, 2006

Weyerhaeuser Exec: The Burdens on Business

When we finally release the NAM's 2006 cost study, The Escalating Cost Crisis, in audio format, Steven Rogel of Weyerhaeuser just has to do the narration.

In an interview in today's Examiner , the president and CEO of the forest products company discusses the burdens on American business that make it difficult to compete globally: Tort costs, energy, regulations, the externally imposed factors that add 31.7 percent to the cost of doing business in the United States compared to our nine major trading partners. For example, on the question of regulatory excess:

It's a huge burden. In many cases, U.S. companies are hindered by regulatory burdens that many foreign companies do not have. Regulatory processes must be streamlined to remain effective but not burdensome. Oversight of administrative agencies must be more rigorous to maintain a balance of appropriate regulations while maintaining a healthy business climate.

Energy?

We are working hard to reduce our energy use, and having some success. In our sector, more energy will only be required if there is facility growth.

Government must provide incentives to business to employ energy saving technology to allow us to modernize our equipment earlier in its life cycle. New energy sources, such as biomass, hold promise as a renewable, greenhouse gas-neutral technology, especially when the carbon sequestration effect of large-scale tree planting is factored in.

We must also be willing to consider nuclear power, fully developing our existing fossil fuel resources and exploring alternatives to fossil fuels.

The Examiner is writing a multipart series on the American economy, interviewing top business executives and economists. The Rogel interview promises much of interest ahead.

Posted by Carter Wood at 8:43 AM | Click here to comment | Send to a Friend

June 28, 2006

Globalization Hits America

New study out from the National Foundation for American Policy entitled, "Protecting Our Prosperity: Ensuring Both National Security and the Benefits of Foreign Investment in the United States." It tracks with much of the information provided by OFII over the year and then some. Among its findings:

-- Ninety-eight percent of foreign direct investment in the U.S. is from private sector firms, not foreign governments;

-- The United States remains the world's largest source and recipient of foreign investment in the world. Foreign companies invested $814 billion in the United States;

-- In 2004, majority-owned U.S. affiliates of foreign companies employed 5.2 million U.S. workers in 2004 and paid compensation totaling $318 billion annually;

-- The average salary for those workers is a healthy $60,000--34 percent more than compensation at all U.S. firms. Roughly 40 percent of these jobs are in manufacturing;

-- Foreign-owned U.S. operations accounted for 21 percent of total U.S. exports ($150.8 billion).

Hard to count all the misconceptions that this study debunks. It also lists the states that benefit most from foreign investment, and the number of jobs created. Some eye-opening stuff there as well. Somebody ought to send it to Lou Dobbs.

In any event, here's a link to the full study. It lands as Congress prepares to discuss efforts to reform the Committee of Foreign Investment in the US (CFIUS) process. Might just be that -- Dubai ports hysteria aside -- it's working just fine.

Posted by at 7:19 AM | Click here to comment | Send to a Friend

June 21, 2006

New Survey of Small and Medium Manufacturers

From NAM Board Member RSM McGladrey comes this survey of 1,000 small and medium manufacturers on a wide range of issues, form the state of the manufacturing economy to their many cost pressures. You'll find some optimism contained herein among manufacturers -- although we must remind you that these are the manufacturers who survived the last recession, where we shed some 3 million jobs. Our small and medium manufacturers still face the stiffest global competition they've ever seen, but compete because they are the best manufacturers in the world.

You'll see some info in here on health care costs, the cots of raw materials and energy and manufacturers' investment in technology. Finally, you'll see how many are not exporting, so there's a great opportunity there. We work very closely with the Department of Commerce Foreign Commercial Service to help SMM's export and many use the export portal on our website. However, from this study, it's clear that not enough are doing it, and together with the Commerce Department we will renew our push. There are many markets out there for American-made goods, especially in countries where we have inked free trade agreements. They lower the barriers to entry for our stuff, so we need to be about the business of exporting into those markets.

In any event, this report has lots of easy-to-read charts and some good information for all SMM's and for all who work with SMM's. Click here to see the full report.

Posted by at 8:07 AM | Click here to comment | Send to a Friend

April 26, 2006

April 26: Celebrating World Intellectual Property Day

Somebody has designated today as World Intellectual Property Day and our friends at the new Creative and Innovative Economy Center (CIEC) at George Washington Law School are marking the day with a Celebration of Creativity on Capitol Hill. Members of Congress are often thought of for their creative ways, but not always in the context of understanding and supporting intellectual property laws. So hats off to the House Caucus on the Promotion of Intellectual Property and the Prevention of Piracy which is hosting this really good event with CIEC.

The April 26 program will air a new Nigerian film, "Wetin Dey?" which is means "What's Happening?" in Nigerian slang. The film involves some piracy issues so it should be a unique way to bring attention to piracy in film-making. Moreover, it is a good way to draw attention to the larger concerns about intellectual property that affect everything from pharmaceuticals to semiconductors. Drawing attention to IP problems is important for all manufacturers, as was made clear by President Bush in his remarks during President Hu's visit to the United States last week.

We recently met Mike Ryan, head of CIEC and he graciously agreed to participate in The Manufacturing Institute's roundtable last week on our new IP report: Intellectual Property for the Technological Age, by Professor Richard Epstein. This report is a celebration of IP every much as important as the Nigerian film. It lays out the reasons why today's IP regime is important to the future of the US innovation economy, despite some of the quirks in IP legal cases. For those interested in the future of manufacturing, this is a good day to celebrate and the required reading for this event is Professor Epstein's white paper.

Posted by Bill Canis at 8:59 AM | Click here to comment | Send to a Friend

April 21, 2006

Small and Medium Manufacturers Speak Up, #3

Manufacturers are tuned into their customers today more than ever. Why is that?

To some extent, this closeness to the customer is a result of global competition. Customers have wider choices today than ever before and a small manufacturer who sells to a larger manufacturer, especially, can be replaced with a competitor in Brazil, Korea or China. On top of the globalizaiton challenge, the pace of technology has ratcheted up and customers often want the latest machinery. Someone pointed out recently that as manufacturing became digitized over the past decade, they too became susceptible to Moore's Law, which was applied in semiconductors. Namely, that every 18 months, the number of transistors in integrated circuits would double. This technology acceleration affects the products that use the semiconductors, too.

Good customer service differentiates manufacturers and can give an edge. Additionally, new processes and techniques, like lean, have transformed manufacturing so managers can build product almost to specification for a customer, rather than churning out a range of products that a customer has to take off the shelf. In our recent publication on small manufacturers, The Future Success of Small and Medium Manufacturers, we interviewed a number of business owners.

Mary Andringa is the successful co-CEO of Vermeer Manufacturing Co. in Pella, Iowa, a maker of construction and agricultural equipment. We interviewed her for our booklet and here's what she had to say about why customer service is important to her business: "We talk to customers not only about product design but also about operating factors most crucial to them and how we can address those factors. We have participated in weeklong programs with customers on their construction sites, watching how they are using our equipment, how much time they spend looking for things, and whether they are having problems with certain construction processes or with the equipment itself. Then we question what we can do to take some waste points out of their processes. These sessions with our customers are similar to kaizen events we have on our own factory floor." (In a kaizen event, a multifunctional team spends a day or several days focused on how to simplify, speed up and eliminate waste from a particular process like an assembly operations in a factory).

Posted by Bill Canis at 9:18 AM | Click here to comment | Send to a Friend

March 8, 2006

Small and Medium Manufacturers Speak Up #2

Innovation is the buzzword these days and for good reason. Yankee ingenuity has always been one of the hallmarks of American business, especially in manufacturing. Innovation includes whole new products of course, but it is equally relevant to changes in processes that yield higher productivity, lower costs and greater efficiency. It's not just big companies that innovate; all successful companies, regardless of their size are innovators. We found out what some small and medium manufacturers think of innovation when we interviewed them for The Future Success of Small and Medium Manufacturers--Challenges and Policy Issues.

The Manufacturing Institute interviewed over a dozen small and medium manufacturers for this report, in conjunction with our partner, RSM McGladrey. Here's what Collie Hutter has to say about innovation. She should know, because her firm out in Nevada, Click Bond, Inc., manufactures fasteners for adhesive bonding used in the aerospace industry. She says, "basically, if you are making commodity products, you can't afford to do it in ths country, especially if you are a small company. The one thing this country still has going for it is innovation. It is part of us, somehow, and it is what we do best. How long we can hold on to this leadership position, I don't know. But to survive in manufacturing today, you have to keep bringing new, innovative products to the market."

Chief operating officer and owner Hutter continues, "We sell not only innovation but also extremely high quality to meet the standards set for aircraft manufacturing. One of the reasons we can survive is that we sell on the basis of installed cost. We are not competing head to head with an ordinary nut or bolt that can be made in another country. We have a large engineering department for a company of this size, and just a week ago we had our 14th patent issued. We are not a job shop and we do not design to customer needs, but many of our new product and product-enhancement ideas come from observing what our customers are doing. Our engineers are contstantly studying current trends in aircraft manufacturing. They spend a lot of time on planes and as much time as they are allowed on the plant floor watching people build planes."

As larger companies increasingly outsource production to small and medium firms, the process of innovation is being handed on too. More and more, small companies like Click Bond, with its 145 employees, are becoming innovation centers for their large clients.

Posted by Bill Canis at 10:06 AM | Click here to comment | Send to a Friend

March 1, 2006

Podcast on the Small & Medium Manufacturers Report

We are always interested in who is reading the blog and the reports that The Manufacturing Institute, NAM and our partners issue from time to time. Last week, we released a long awaited report, The Future Success of Small and Medium Manufacturers--Challenges and Policy Issues. Shopfloor.org was a natural place to write about this new research, based on interviews with a wide range of manufacturers.

So we were very pleased when the folks at betterprocess.com read the blog entry and asked us if they could do a podcast about it. It turns out that they have a steady audience that is interested in manufacturing and business issues. I spoke with them today and they have turned the interview into 5 programs that you can easily download on your I-pod. If you would like hear more about our report, just click on the link above. That's it--manufacturing and technology go hand in hand.

Posted by Bill Canis at 11:32 AM | Click here to comment | Send to a Friend

February 24, 2006

Small and Medium Manufacturers Speak Up #1

Anyone who has been around owners of small and medium manufacturing operations knows that most of them are not shy and retiring. Many of these entrepreneurs started their own businesses and are justifiably proud of what they have accomplished and the operations they run. The report we issued yesterday, The Future Success of Small and Medium Manufacturers, gives them a stronger voice by outlining the major concerns that they face. So what are these SMMs, as we affectionately call them, saying about the future of their businesses and the challenges they face? Over the next few weeks, the blog will highlight their remarks in their own words, taken right from our new report.

Today we start with Gerry Letendre, president of Diamond Casting & Machine Company in Hollis, New Hampshire, a 60-employee manufacturer of aluminum components. One hallmark of SMMs is that they are very responsive and flexible to the changing business climate. Here's what Gerry has to say on page 13: "In the long run, we are subject to the same forces as a large, publicly held company, but in the shorter run, I think we can be more nimble. We don't have Wall Street people questioning our quarterly results. When our sales and profits dropped during the recession in 2000, we didn't lay off any of the employees, we had worked hard and spent money to train. Instead we postponed our plans to purchase a new, computerized drilling machine and reinvested our capital to introduce new products and build up inventory. During good times we set cash aside so we can sustain the not-so-god times comfortably."

Posted by Bill Canis at 12:07 PM | Click here to comment | Send to a Friend

February 22, 2006

Manufacturing Quiz

Here's a pop quiz: who is responsible for 40 percent of US manufacturing production and employs 8 million men and women? If you think you know the answer, hit comment below and let us know. Otherwise, stay tuned for the answer later today or come back tomorrow when we release our latest manufacturing publication that contains the answer.

Posted by Bill Canis at 11:23 AM | Click here to comment | Send to a Friend

January 31, 2006

U.S. Manufacturing Innovation at Risk

As many readers of this blog know and probably knew long before they got here, innovation and manufacturing are tied together. But not all are so enlightened. So to remind people of what's at stake, we are releasing a new study on February 1 -- "US Manufacturing Innovation at Risk." If you are in Washington, DC on Wednesday, come by the NAM at 9:30 am and hear all about it at our press conference, with author Joel Popkin.

We are the world's leading manufacturing economy because of the innovative products and processes that Yankee ingenuity spins out year after year. A lot of this creativity and productivity is taken for granted,unfortunately, both by consumers and some politicians. Increasingly, American manufacturers are challenged by rising manufacturing powers in China, India, Singapore and elsewhere. In these countries, they also know about the link between innovation, R&D, productivity and manufacturing. They most certainly don't take this vital innovation process and manufacturing for granted and, in the future, they could eclipse the United States, with adverse implications for our standard of living. Tune in here tomorrow and we'll have more information on the new study, including a link to it on our website.

Posted by Bill Canis at 2:16 PM | 1 comment; click here to read it or submit your own! | Send to a Friend

November 23, 2005

Skills Gap Report 2005

Sorry we didn't get around to posting this 'til today, but yesterday was pretty busy around NAM HQ. As promised, we released the 2005 Skills Gap Study. Among its key findings:

-- Today's skill shortages in manufacturing are extremely broad and deep, cutting across industry sectors and impacting more than 80% of the companies surveyed.

-- Skills shortages are having a widespread impact on manufacturers' abilities to achieve production levels, increase productivity and meet customer demands.

-- High performance workforce requirements have significantly increased as a result of the skills gap shortage and the challenge of competing in a global economy, according to nearly 75% of the study's participants.

Among its recommendations, the study urges:

-- Educators to emphasize science, math and technology-related programs in K-12 curricula and invest more in teacher education;

-- State education standards to include career education as measurable criteria for K-12 success;

-- Employers to invest at least 3 percent of payroll whenever possible in training for current employees; and

-- Government to partner with business to improve the K-12 and community college system to develop a high-performance workforce.

Here's a link to the full study, here's a link to the Executive Summary and here's a link to our press release from yesterday which provides a nice summary as well.

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

August 31, 2005

The 2005 NAM Labor Day Report (cont'd)

Right then, where were we...? Ah, yes, the 2005 NAM Labor Day Report. NAM President John Engler said we suffered from an "innovation deficiency" in this country and the number bear it out. We post three charts her for you -- all contained in our Labor Day Report -- which al drive home the point -- a point, incidentally, which Lou Dobbs, among others, is missing.The first chart we posted as a teaser for this report a while back under a heading that termed it "the real problem." It shows the number of engineering degrees in China, Japan, the US and Korea. Fair warning: this is a depressing slide.

The next slide shows US graduate degrees in engineering, math, physical and computer sciences in 1983 and in 2001, and shows the percentage awarded to US citizens vs. non-US citizens. No, we're not going down a Dobbs-ian road here. We have the best colleges and universities in the world and attract the best students. We need to make sure that they are able to stay here upon graduation. Ultimately in a global economy, the work will find them. We'd rather it find them here.

The final chart shows federal outlays for research and development for life sciences and for math, computer, physical sciences and engineering. You see the former climb as the latter falls. As John Engler said, while research on new diseases is absolutely critical, so is research and monies that will help cure the innovation deficiency.

We propose three steps to begin to address these problems -- three major threats -- facing US Manufacturing:

1.) Improve secondary science and math teaching to foster better student performance.
2.) Reform visa and immigration policies to attract those trained in math and science.
3.) Increase federal support for basic research in engineering, math, computer and physical sciences.

You can catch this all on C-SPAN throughout the weekend. There was a ton of press interest in this and you'll no doubt be reading about it. Or, just stop and ask any manufacturer. They'll tell you what the problems are, they grapple with them every day.

Posted by at 3:56 PM | Click here to comment | Send to a Friend

The NAM Annual Labor Day Report

The NAM Annual Labor Day Report was released at a press conference at 10 a.m. today featuring NAM President John Engler. There were a bunch of reporters present and C-SPAN was there, will run it through the weekend. We'll write more on this later, but here's the summary quote from our press release, and the crux of the report:

"As technology and competition continue to shrink our world, developing nations are accounting for an ever increasing share of global trade and economic growth. If the U.S. is to preserve its position as a major economic power in the 21st century it must stay out in front of the innovation curve, and it will need a much better-prepared workforce to do so."

Here's a link to our press release, and here's a link to the full report. More to follow.

Posted by at 2:20 PM | Click here to comment | Send to a Friend

March 11, 2005

Manufacturing Location Survey Results

In a study released by Deloitte (in conjunction with the NAM) this past Tuesday, some 65% of manufacturers surveyed plan expansions in the coming year, with 70% of those expansions in the US. This was a survey done of a few hundred manufacturers in every geographical region and sector and of every size. In fact, there were more small and medium manufacturers responding than large ones. Surveyed were C-level execs: Presidents, CEO's and COO's. This of course jibes with what we're hearing from NAM members in surveys and anecdotally this year.

In terms of the top location objectives, the study found (not surprisingly) reducing costs, accessing markets, improving productivity and adding top line revenue.

What do manufacturers look for when locating a new facility? Utility reliability and quality topped the list, followed by access to customers, cost of labor, and ease of doing business. Interestingly, incentives were near the bottom of the list in terms of critical decision factors in deciding where to locate.

Here are the slides from Deloitte Principal Phil Schneider outlining the major findings of the study, and here's a copy of the Executive Summary.

Posted by at 8:40 AM | Click here to comment | Send to a Friend

March 10, 2005

Some Interesting Stats on Manufacturing

For those of you who may have missed the release of our National Manufacturing Week survey on Monday, it was largely upbeat in that some two-thirds of respondents expect manufacturing to grow as fast or faster than the overall economy this year. Also, some 65% of respondents are exporters, a good sign. This was a survey of some 3,000 of our members, large and small, in diverse industries and geographical areas.

However, the discouraging news was that 36% have jobs that are going begging because they can't find qualified workers to fill them. The people applying for these jobs simply don't have the math, science, technological and "showing up" aptitude that they need to work in modern manufacturing. See the item below on the DC public schools and you'll know why.

Here's a link to the full study results.

Posted by at 11:46 AM | Click here to comment | Send to a Friend

March 2, 2005

Indiana Weighs In

No sooner was the ink dry on the California manufacturing study (see below), now comes major manufacturing state Indiana with a study of its own. Entitled, "What Indiana Makes, Makes Indiana", the study, sponsored by NAM affiliate Indiana Manufacturers Association, the Central Indiana Corporate Partnership and the Indiana Department of Commerce, finds that a strong manufacturing base in Indiana is essential for jobs, revenue for communities and the state and is essential to supporting a high quality of life. In short, the study echoed and reinforced every other recent study that's been done on manufacturing.

Here's a link to a story by Norm Heikens in the Indianapolis Star on the study and here's the link to the Executive Summary.

Congratulations especially to IMA President Pat Kiely for his continued leadership and passion for manufacturing.

Posted by at 9:44 AM | Click here to comment | Send to a Friend

March 1, 2005

A Million Jobs May Tumble Into the Sea in California

Interesting study released today by our friends (and affiliates) at the California Manufacturing and Technology Association (CMTA), noting that unless manufacturers and state government take concerted action, they stand to lose up to a million jobs to other states and countries. California, which ranks 49th in net domestic migration (see the "Little Red Book" story, below)has already lost some 200,000 jobs. They are a the risk of losing more, the study says, "as manufacturers seeking lower taxes, cheaper energy and less restrictive labor laws consider moving jobs overseas and to other states."

We are in a worldwide competition for jobs here, and we labor under a 22% cost disadvantage vs. our major trading partners. Bravo to the CMTA for doing this important study. Here's the link to the full study, "One Million Jobs at Risk: The Future of Manufacturing in California".

Posted by at 5:17 PM | 1 comment; click here to read it or submit your own! | Send to a Friend

The Power of the Little Red Book

It was Mao Tse-Tung who popularized the "little red book", but we have now done him one better. We have a little red book of our own with far more power to start a revolution than Mao himself ever dreamed of.

In the "2005 Competitiveness Redbook", each of 42 pages ranks the 50 states according to a number of criteria. This includes "Cost of Doing Business" (Hawaii, #1, South Dakota, #50), "UI Payments" (Massachusetts #1, Arizona #50), "Workers' Comp - Benefits Paid" (West Virginia #1, Indiana #50, "Teacher Salaries" (California #1, South Dakota #50 -- again) and 38 others. Click on this link to see the Table of Contents.

If what you measure improves, as the adage goes, then this little book should have enormous power in effecting change. One of our Board members sent it to the head of economic development in his state. Another of our Board members, Bert Miller of Illinois, advocate without peer, sent it to his Governor with a letter noting that he had just built a facility in Tennessee because of its more favorable business climate. Here's a copy of Bert's letter, a real attention-getter.

In any event, you can get a copy of this book from the NAM Bookstore. We urge you to get one, take a look at it, and then do what Bert Miller did. Send it to your Governor or your state legislators. Let's hope it starts a competition among some of them to improve the climate for manufacturing. In other wrods, let's hope it starts a revolution.

Posted by at 4:41 PM | 1 comment; click here to read it or submit your own! | Send to a Friend

February 24, 2005

"Do You Know Where Your Talent Is?"

An interesting study from the good folks at Deloitte, entitled, "It's 2008: Do You Know Where Your Talent Is?" Three top concerns of HR folks (big shocker):

1.) Incoming workers with inadequate skills;
2.) Baby boomer retirement;
3.) The inability to retain key talent.

They talk about new strategies aimed not only at luring critical talent but more importantly at engaging people in a way that promotes flexibility and productivity, just the kind of stuff that federal laws impede.

In any event, take a look -- some interesting stuff there.

Posted by at 11:50 AM | Click here to comment | Send to a Friend

December 8, 2004

A National Disgrace

Don't know how many of you caught the article in yesterday's Washington Post about the new results from the OECD's Program for International Student Assessment (PISA) tests. This is an annual test of students in all OECD countries, and the results are never great for the US. This year was no exception: we ranked a dismal 24th out of 29 countries in math literacy alone. NAM President John Engler, a zealot on education reform, said, "When America's 15 year-olds demonstrate less math literacy than those in Hungary and the Slovak Republic, US policymakers, educators and employers ought to be shocked into action." As Bill Brock used to say, "We rank last in everything but self-esteem."

You can talk about manufacturing all day, and the challenges we face, but all roads lead to education and to the schools. We must make every effort to ensure that our schools are delivering a product we can use. Many years ago, David Kerns, then CEO of Xerox, complained that he was, "sick and tired of doing the recall work for the Nation's schools." It's time to start applying the principles of manufacturing -- metrics, zero defects, accountability -- to the American educational system. How many more wake up calls do we need?

Whaddaya say, NEA, are you with us....?

Posted by at 5:38 PM | Click here to comment | Send to a Friend

November 25, 2004

Trade Facts

As mentioned below, this coming year will be a very busy one for trade, with Congressional votes expected on issues like trade promotion authority (TPA)and continued US membership in the World Trade Organization (WTO). As is often the case, the facts will be lost early on in the haze of the battle. Check out this link to the NAM Trade Facts. You will almost always learn something new, like the fact that some 97% of all exporters are small and medium manufacturers, or that 80% of our trade deficit is with countries with which we have no trade agreement. We'll be regularly posting more of these, and sending them to Capitol Hill as well.

Posted by at 5:27 PM | Click here to comment | Send to a Friend