Archive for the ‘Manufacturing’ Category

2023 Offers Vibrant Opportunities for American Manufacturing

Tuesday, January 3rd, 2023

While some industry leaders are predicting continued supply chain disruptions and even an economic recession, I believe that American manufacturers are poised to enjoy vibrant opportunities in 2023 after nearly three years of economic turmoil and supply chain disruptions.

Americans had a wakeup call during the COVID-19 pandemic when we realized that we had become vulnerable because of our dependency on suppliers from other countries, particularly China.  Our national security and the health of Americans became at risk because of the supply chain disruptions of the goods we needed.

The Industry Week article, titled “Why the US Needs Manufacturing to Succeed”, on Dec. 16, 2022, stated, “With newly focused attention on supply-chain availability and resilience, U.S. manufacturing is at an inflection point. The recently passed infrastructure and CHIPS acts enable direct investment of billions of dollars into the manufacturing sector responsible for critical components, again to improve capacity and supply certainty.”

Manufacturing matters because the high-wage jobs it provides are the foundation of the middle class.  Besides these high-wage jobs, the Brookings Institution says it provides “commercial innovation (the nation’s largest source), a key to trade-deficit reduction and a disproportionately large contribution to environmental sustainability.” In fact, U.S Census data shows that manufacturing still ranks fourth out of the top five employment sectors in the country.

In their annual report dated April 26, 2022, the Reshoring Initiative reported that manufacturing added 1.3 million jobs to the economy between 2010 and 2019, after losing 5.8 million jobs over the previous 10 years. “For the second year in a row, reshoring exceeded FDI by 100%, continuing a recent trend not seen since 2013. Additionally, the number of companies reporting new reshoring and FDI set a new record of over 1,800 companies.” 

I predict that the reshoring data for 2022 will show a continued trend because with today’s heightened need for national security, sustainability and self-reliance, reshoring of U.S. manufacturing, has become, a matter of survival.

 I am not alone in predicting “vibrant opportunities” for 2023.  The Manufacturing.net blog of December 14, 2022, “Predictions for Manufacturing in 2023 – Part I,” provided thoughts on trends from several executives.

A few key thoughts on trends for the upcoming year shared by James DeMuth, CEO of Seurat Technologies, were:

  • “Localization of manufacturing near to customers will reduce economic and environmental costs. Currently, the cost to ship a 40’ container from Asia to the U.S. West Coast is 5X more than pre-pandemic levels.
  • Unpredictable policymaking and inflationary pressures will have less impact on companies that strategically place manufacturing of key components within the U.S. and near to assembly plants.
  • Domestic manufacturing will be emphasized as a matter of national security.”

A few of the key thoughts shared by Molex, a leading provider of electronic components and connectivity solutions, were:

  • Major investments in battery management, zonal architectures and EV charging stations will dominate.
  • Emerging demand for Infrastructure advancements is expected to escalate, which will place greater emphasis on the need for intelligent sensors and high-speed connectors.
  • Investments in Industrial IoT will grow. Robotics and AI will see a surge in usage, as businesses roll out investments made over the last few years.
  • The migration towards Extended Reality (XR) will move data processing to the Edge, allowing inferencing to happen more frequently in real time to match performance expectations. 

Another manufacturing.net blog article, “Key Trends to Remember for 2023,” dated December 29, 2022, predicts:

Continuing Supply Chain Disruption  – “The need to be flexible, and efficiently manage multiple sources of supply while managing overall profitability means sharing information not just within the organization but upstream, driving increased collaboration with suppliers.”

Smart Factories – smart factories encompass two domains:

  • “Improving the capture of data and the operational context to surface the information needed to inform better decisions.
  • Providing the insights and information to more stakeholders, in a more consumable manner, specifically, active rather than passive presentation of impactful data at, or even before, the time of need.”

Continued skills shortages – “Modular robotics in both the physical world and the data environment (through robotic process automation) are reaching levels of maturity that make them more accessible from the perspectives of both cost and complexity.”

Notice that investing and adopting new technologies such as IIOT, Robotics, AI, Industry 4.0 are incorporated into these predictions.  These are examples of “vibrant opportunities” that are happening now, but are not being widely scaled. 

Deloitte’s 2023 manufacturing industry outlookexplores five manufacturing industry trends that can help organizations turn risks into advantages and capture growth.”

      Technology – Investing in advanced technologies to help mitigate risk

“Manufacturers have increased their digital investment over the past few years and accelerated the adoption of emerging technologies. Companies with higher digital maturity have shown greater resilience, as did those that accelerated digitalization during the pandemic. Continued investments in advanced manufacturing technologies can help develop the required agility.”

  • Talent – Implementing a broad range of talent management strategies to reduce voluntary exits

“Addressing the tight labor market and workforce churn amid shifting talent models is expected to remain a top priority for most manufacturers in 2023. Despite a record level of new hires, job openings in the industry are still hovering near all-time highs…”

  • Supply chain – Relying on time-tested mitigation strategies with enhanced tactics to achieve supply assurance

“Of surveyed executives, 72% believe the persistent shortage of critical materials and the ongoing supply chain disruptions present the biggest uncertainty for the industry… Manufacturers are mitigating these risks not only with increased utilization of digital technology…building local capacity and moving from just-in-time sourcing to create redundancy in the supply chain.”

  • Smart factory – Taking a holistic approach to smart factory initiatives to unlock new horizons

“Many manufacturers are making investments in laying the technology foundation for their smart factories. One in five manufacturers is already experimenting with underlying solutions or actively developing a metaverse platform for their products and services.”

  • Sustainability  – Focusing on corporate social responsibility

“The fast-evolving environmental, social, and governance (ESG) landscape may require close monitoring in 2023 for manufacturers…regulators globally are also moving toward requiring more disclosures for nonfinancial metrics. Manufacturers are progressing toward their ESG commitments by making operational changes across their value chains.”

Deloitte’s recommendations are important for American manufacturers to adopt and implement into their company’s strategic action plans in order to take advantage of the “vibrant opportunities” of the future.  They illustrate that achieving the vision of Industry Reimagined 2030 will require a sea-change in the national narrative of the U.S. manufacturing industry to transform from a prevailing worldview of ‘inevitable decline’ to one of ‘vibrant opportunity.’ The vision of Industry Reimagined 2030 is for U. S. manufacturing to be revitalized, globally competitive and advancing societal interests by 2030.  The following goals will demonstrate achieving this vision through unprecedented collaboration and scaling:

  • 50,000 world-class domestic manufacturers (10x increase)
  • Additional 2+ million to the manufacturing-related, middle-income workforce (30%)
  • Reduce the environmental footprint to supply U.S. goods by 30%
  • Consumer purchases of US made goods increased by $500 million

To explore how your company needs to adapt to the disruptive trends that are taking shape, you may wish to participate in our Reimagine Dialogues. They are structured conversations to consider what the world will be like in 2030 and beyond. The purpose is to stimulate business owners and executives to reimagine their business and its environment in 2030. Why? Looking back on the past 10 years, there have been significant changes and disruptions which impacted business. Many companies were caught off guard and unprepared. Going forward, there will be further disruptions for businesses. Vibrant opportunities await those companies acting with foresight and preparedness. Distress awaits those companies caught reacting. There is no charge for participation and this it is not a free preview of another executive roundtable.  Here is the link for further information and to register. https://www.industryreimagined2030.org/

California Targets Manufacturing Industry to Reduce Pollution

Tuesday, October 4th, 2022

On September 14, 2022, I had the pleasure of attending the California Metal Coalition quarterly meeting in San Diego held at the offices of C & H Machine in Escondido. The CMC website states: “California is home to 4,000 metalworking facilities, employing over 350,000 Californians with high-paying manufacturing jobs and health benefits.   Jobs provided by our industry are the path to the middle class for many Californians.”

After introductions, Executive Director James Simonelli provided an overview of legislation and rules changes that could adversely affect the metals industry in California. 

First, he discussed AB 423 – San Diego County Air Pollution Control District: members and duties. This bill was sponsored by Assembly Member Todd Gloria (elected as San Diego Mayor in 2020) on May 28, 2019 and was signed by Governor Newsome on Oct 11, 2019

He pointed out that while “existing law provides for the establishment of air pollution control districts and air quality management districts,” San Diego’s air pollution control district was handled by the County Board of Supervisors. AB 423 required the San Diego County Air Pollution Control District to become a separate agency with a specified membership as of March 1, 2021. It required local governments to appoint members to the San Diego County Air Pollution Control District governing board in a specified manner and appoint a specified liaison to consult with the United States Navy, the United States Marine Corps, and the United States Coast Guard. AB 423 greatly expanded the authority of the SDAPCD for permitting, compliance/enforcement, local air monitoring, and new rule making.

Next, Mr. Simonelli reported further developments with regard to AB 617 that was passed and signed by the Governor on July 16, 2017.  “It requires the California Air Resources Board (CARB) and air districts to develop and implement additional emissions reporting, monitoring, reduction plans and measures in an effort to reduce air pollution exposure in disadvantaged communities. It mandates a statewide strategy to reduce emissions, with a review at least once every five years. Through grants to community-based organizations, locals can more easily analyze data and participate in new air pollution reduction programs.”

The bill is supposed to provide the following benefits to disadvantaged communities:

“Quicker review of pollution control technology – In districts exceeding air pollution limits, the new law supports an expedited process to implement the best available retrofit control technology at industrial sites.

More significant penalties for polluters – Penalties increase five-fold to $5,000 for violating air pollution laws from non-vehicular sources”.

However, Mr. Simonelli said that the task force was set up to find out what concerns disadvantaged communities had with regard to pollution, and the task force is currently looking at facilities where welding of metal is being done as welding operations can create emissions of lead, hexavalent chromium, copper, nickel, and cadmium.

The next item for discussion the agenda went along with California’s recent ban of the sale of new gasoline-powered cars and light trucks by 2035.  They would also like to have Zero-Emission Forklifts.   

Mr. Simonelli said they are targeting internal combustion forklifts, such as propane powered, with a lift capacity of 12000 lbs. or less.  “New equipment cannot be purchased after 2026, and current equipment must be phased out between 2026 – 2038.  The primary option will be electric forklifts.  CMC submitted formal written comments to CARB on August 19 2022.  This measure is scheduled for consideration by the Board in 2023.”

The CRB website states, “Accelerating the transition to zero-emission technologies, where feasible, is an important component of CARB’s strategy to meet the state’s air quality and greenhouse gas reduction goals. As such, CARB staff is currently developing a measure that would drive greater deployment of zero-emission forklifts within fleets throughout the state. This measure, which has been identified in CARB’s Mobile Source Strategy, State Implementation Plan, and Sustainable Freight Action Plan, is one of several near-term actions intended to facilitate further zero-emission equipment penetration in the off-road sector.

CARB staff is currently developing a measure that would drive greater deployment of zero-emission forklifts within fleets throughout the state. This measure, which has been identified in CARB’s Mobile Source Strategy, State Implementation Plan, and Sustainable Freight Action Plan, is one of several near-term actions intended to facilitate further zero-emission equipment penetration in the off-road sector.

Forklifts operate in many different industry sectors but are most prevalent in manufacturing and at freight facilities, such as warehouse, distribution centers, and ports. There are approximately 100,000 forklifts operating in California.”

If you are thinking you are safe because you don’t live in California, think again. In reporting on the ban of gas-powered cars, CNBC reported: “The decision is expected to have sweeping impacts beyond California and will likely pave the way for other states to follow. At least 15 states including New Jersey, New York, and Pennsylvania have adopted California’s vehicle standards on previous clean car rules.”

Mr. Simonelli then discussed two proposed rules by the South Coast Air Quality Management District:

 Proposed Rule 1460 – Control of Particulate Emissions from Metal Recycling and Shredding Operations.  

This rule addresses controlling emissions (fugitive dust) from scrap recycling of which there are about 200 in the district along with several shredding facilities.  It would affect registration, housekeeping, water use, and potential enclosures at these facilities. The first Working Group meeting was held on March 16, 2022, and two additional Working Group meeting were held in May and July.  There was a Public Workshop on September 6, 2022 and a special public hearing on September 21, 2022.  A notice for the final Public Hearing was sent out on October 4th announcing the final Public Hearing to be held November 4, 2022, when the board votes on the proposed rule. 

Proposed Rule 1435 – Control of Toxic Emissions from Metal Heat Treating Processes.

This rule address controlling emissions from heat treating, forging, brazing, plating, anodizing, and other processes in which metal is heated, which may produce hexavalent chromium. The first Working Group meeting was held August 6, 2019, and the University of California Riverside is conducting research on heating metal and creating hexavalent chromium. The SCAQD website states: “Hexavalent chromium is a toxic air contaminant that is a potent carcinogen mainly produced by industrial processes. Long-term inhalation of hexavalent chromium over a lifetime can:

  • Increase the risk of developing lung and nasal
    cancers
  • Cause or worsen certain health conditions such as
    respiratory tract irritation, wheezing, shortness of
    breath etc.

It is important for manufacturers to participate in industry organizations like the California Metals Coalition to be able to keep informed about issues that will affect their industry and have an organization that will lobby for or against issues that will affect their industry. Company owners do not have the time to do research on their own with regard to what their state legislatures and regulating agencies are doing that could adversely affect their company.  I strongly recommend that company owners and executives look into joining the organization that best fits your industry in your state as well as national organizations that keep track of legislation being considered by Congress, such as the Coalition for a Prosperous America, a non-profit, non-partisan organization working to “save American manufacturing, of which I have been a member for 11 years.

It will only be through unprecedented collaboration between organizations such as CMC, CPA, and many others that we will be able to achieve the vision of Industry Reimagined 2030 to transform the narrative of American manufacturing from one of inevitable decline to one of vibrant opportunity that is necessary to revitalize American manufacturing to create more jobs and prosperity for our country. 

Reinventing Education – Students Learning “how to think – not what to think” for New Collar Workforce

Tuesday, August 16th, 2022

Our non-profit Industry Reimagined 2030 has identified some prevailing misperceptions about manufacturing that must be dispelled if we want to be successful in growing the supply of available recruits for manufacturing jobs.  These are that “manufacturing is in inevitable decline” and “manufacturing jobs are dumb, dirty and not well paying.”

Fortunately, the importance of manufacturing during the pandemic and advanced manufacturing technologies are changing some of the longstanding misperceptions. The Deloitte and The Manufacturing Institute 2022 Manufacturing Perception Study reports “Sixty-four percent of consumers surveyed view manufacturing as innovative, up from 39% of respondents five years ago” and 77% now view manufacturing as more important than they did pre-pandemic.

I recently interviewed Glenn Marshall who is one of our advisors for Industry Reimagined 2030. Glenn Marshall is also serving on the Association for Manufacturing Excellence Management team to help lead a Manufacturing Renaissance. He told me that this “initiative is designed to reduce the critical shortage of skilled workers for advanced technology and manufacturing. He reaches out to business leaders, academia, students, veterans, and policymakers to promote innovative ideas to create ladders of opportunity to make ‘Made in America’ a reality by leading initiatives to design and build things at home, again.”

Prior to retiring, he said that he was the benchmarking/process excellence advocate for Northrop Grumman and Newport News Shipbuilding (NNS). He engaged with all levels of the corporation, supply chain, and the Navy and led the proposal team from NNS to support the Navy’s Task Force Lean initiative. He continues to work with NNS in its outreach to the public schools and colleges Career Pathways program.

He said, “We struggled along with other employers in Virginia and across the nation to find the kind of skilled workers they needed so realized that they had to get involved with the local schools. I met with the superintendent of the Williamsburg James City County (WJCC) School District and arranged to have students tour local manufacturing facilities   part of national Manufacturing Day. These employers showed the students, teachers, and parents the kind of good paying jobs are available and what they could earn doing these jobs which got the students interested. 

Then we worked with the New Horizons Regional Education Center (NHREC) in Virginia and other employers to create an expanded   pubic private partnership to provide career and technical educational options for students within the school districts. NHREC is the largest of nine regional centers in the Commonwealth of Virginia.  NHREC has become a benchmark for community partnerships

The New Horizons Regional Education Center (NHREC) in Virginia has engaged in a public private partnership with Newport News Shipbuilding Apprentice School, employers, public school leaders, legislators and families. They are working to provide career and technical educational options for students within the school districts. NHREC has become a benchmark for community partnerships. Educators and families are discovering that career technical initiatives valued by employers can provide an equitable gateway for each student to learn how to be capable of achieving their career goals and dreams.

Glenn commented, “Upcoming graduates will step into a rapidly changing workforce, with a growing number of “new-collar jobs” requiring specialized, technical skill sets. The future of learning is changing — Beyond creating a world online, advances in artificial intelligence, cognitive technologies, and robotics are upending traditional assumptions about jobs and technology’s role in the workplace. For kids wanting to seize these opportunities, having transferable skills will be more important than a degree. For many, a strong foundation in science, technology, engineering, and math skills will be invaluable. And for some, apprenticeship and certification programs will be essential.”

Glenn also sent me information about Virginia’s lab schools. He said, “These schools are partnerships between public and private universities and colleges, as well as private companies and local K-12 schools. Lab schools that have a specific focus, such as STEM or literacy, or a particular skill or industry, will create learning environments that engage students in hands-on learning.”  My research discovered:  “Legislation approved by the 2010 General Assembly (HB 1389 and SB 736) and the 2012 General Assembly (HB 577) allows any public or private institution of higher education in the commonwealth with an approved teacher-preparation program to establish a college partnership laboratory school…College partnership laboratory schools are public schools established by contract between the governing board of a college partnership laboratory school and the Board of Education.”

I told him that California had passed legislation to re-establish career technical education for grades 7-12 in 2002 (Senate Bill 1934 (McPherson), a companion bill to the earlier Assembly Bill 1412 (Wright), passed in the same year) but it didn’t get fully implemented until 2005. Now, I know of three high schools that teach manufacturing skills such as machining and welding in the San Diego region. The training is a two-year program for juniors and seniors and students receive certifications upon graduation.

Glenn said, “Companies want graduates with an eye for detail, creative critical thinking skills, a collaborative mindset and an ability to deal with ambiguity and complexity. New graduates will need foundational skills in reading, writing math and science, but also know how to think – not just want to think.

He concluded by saying, “To achieve this goal, educators and business leaders must form public-private partnerships and join with organizations like the Association for Manufacturing Excellence (AME), the Reshoring Initiative and others to engage in reinventing the educational experience. The goal is to graduate all students with the critical thinking skills to adapt to the evolving challenges of new-collar careers and the ever-changing demands for the future of work.

The Association for Manufacturing Excellence will host an international conference in Dallas Texas October 17 – 20, 2022.  Register at  https://www.ame.org/ame-dallas-2022  One of the featured sessions will be an international panel discussing how companies are addressing the need to replenish the talent pipeline with skilled career ready new collar workers: 

In order to achieve the goal of creating five million more manufacturing jobs by 2030, we encourage manufacturers to use the increased public awareness to promote manufacturing’s benefits, opportunities, and technological advances to increase the number of youths interested in manufacturing careers. Manufacturers should emphasize that advanced manufacturing technologies now provide, safe, clean working environments that pay well and offer highly transferable skills that enable career advancement.  As incentives, companies can offer internships, work programs, certification or degree programs, and apprenticeships to increase the talent pool and develop the skilled workforce they need to grow their businesses. 

ITIF Report Assesses Competitiveness of North American States

Tuesday, July 5th, 2022

On June 21, 2022, the Information Technology & Innovation Foundation conducted a webinar entitled, “Assessing the Competitiveness of North America: The North American Subnational Innovation Competitiveness Index,” based on a report by Luke Dascoli and Stephen Ezel of ITIF, and prepared in collaboration with the Macdonald-Laurier Institute, Fundación IDEA, and the Bay Area Economic Council Institute.

I was unable to attend the webinar, but later read the 49-page report with the goal of identifying examples of the vision of Industry Reimagined 2030 to convert the narrative of American manufacturing from one of “inevitable decline” to “vibrant opportunities.”

The purpose of the report was “to identify economic differences among states and provinces and highlight regions needing more federal attention, identify cross-national innovation performance, and track the continent’s overall competitiveness in the innovation-driven global economy.”

A vibrant opportunity was identified in the first paragraph of the Overview: “North America—Canada, Mexico, and the United States—represents one of the world’s most economically vibrant regions, accounting for 28 percent of global economic output. The region also forms one of the world’s largest free trade zones, with deeply integrated supply chains…the three nations form a high-wage/low-wage partnership, bringing complementary labor forces, infrastructure, innovation capacities, and industry strengths together to create a highly competitive economic region. This relationship is poised to make North American manufacturing value chains globally cost competitive with Asian ones and thus make North America a leading global innovation and manufacturing powerhouse.”

“This report assesses how prepared North American states are to compete in today’s increasingly innovation-driven economy. The North American Subnational Innovation Competitiveness Index (NASICI) uses 13 measures across 3 categories to quantify the extent to which each state’s economy is knowledge based, globalized, and innovation ready and form composite scores (between 0 to 100) that identify each state’s level of performance in the innovation economy.”

Knowledge Economy

•Immigration of knowledge workers – number of highly educated foreign-born residents as a share of total state population
•Workforce Education – total workforce finishing postsecondary education (including universities, trade schools, and colleges)
•Professional, scientific, tech – total employment enrolled in professional, scientific,
and technical activities

•Manufacturing Gross Value Added per worker – measures the average GVA per manufacturing worker

Globalization

•Inward foreign direct investment – flow of funds into a state from foreign-based enterprises to purchase that state’s existing facilities or to develop new ones
•High tech exports – (NAICS 333, 334, & 335) as a Share of GDP

Innovation Capacity

•R & D Intensity – Total R&D Investment Relative to GDP
•R & D Personnel – as a Share of Total State Employment
•Patents (per capita) – PCT Patents Issued per Million Persons
•Venture Capital Investment – shows a state’s total VC investment (based on VC-receiving firms located therein) relative to the size of its GDP.
•Broadband telecommunications – Share of all Households Subscribing to Broadband Internet

•Decarbonization (CO2 emissions) – Tons of CO 2 Emissions per Capita

The Composite NASICI scores for the top ten states/provinces are:

RankingState/ProvinceCountryNASICI SCORE
1MassachusettsUnited States91.5
2CaliforniaUnited States83.9
3OntarioCanada75.2
4MarylandUnited States75.0
5WashingtonUnited States74.2
6British ColumbiaCanada70.4
7New JerseyUnited States70.2
8New MexicoUnited States68.3
9QuebecCanada68.1
10OregonUnited States66.0


Notice that Canada has three provinces in the top ten, but Alberta was the only other Canadian province to rank in the top 30. Arkansas, Mississippi, and South Dakota came in last for U. S. states, with South Dakota at number 60.  The ranking of Mexico’s states was “concentrated at the low-scoring end of the subnational index (61–92).”

The report commented that “Massachusetts ranks first due to the state’s massive network of software, hardware, and biotech firms in the Greater Boston area. Boston also holds one of the country’s most densely populated clusters of top-performing research universities, many of which focus on science, technology, engineering, and mathematics (STEM) education. California places second due to its bustling tech economy of Silicon Valley and other southern Californian innovation hubs with access to leading research universities such as Stanford, Caltech, and the University of California, San Diego. Maryland earns its spot due to the state’s abundance of D.C.-commuting knowledge workers employed in scientific, technical, and professional activities, alongside its R&D and innovation activities attributable to a plethora of federal contracts. Washington state ranks fifth because of its high-tech exports, cutting-edge tech businesses bringing in foreign investment, patent generation in areas such as artificial intelligence (AI) and cloud computing, and digitalization of the service sector.”

The report goes into some detail regarding the rankings in the 13 subcategories which are too complex for this article to cover. With regard to high tech exports, it discusses the successful cross-border region of the Pacific Northwest states of Oregon and Washington with the Canadian province of British Columbia, as well as the cross-border regions of California, Arizona, and Texas with the Mexican states of Chihuahua, Baja California, and Tamaulipas…These Mexican “states include the major manufacturing cities of Ciudad Juarez, Tijuana, and Matamoros, which together comprise most of Mexico’s
“maquiladora” manufacturing plants.”

The report makes the following policy recommendations for the United States:

Expand the R&D Tax Credit to Be Competitive with Canada – Canada’s “overall federal subsidy rate of 19.1 percent on business R&D investment” is “above the 16.6 percent median among 34 developed countries observed” and considerably higher than the U.S. “sub-median federal-state subsidy rate of 9.5 percent.”

Build Globally Competitive North American Supply Chains – This recommendation advocates the partnering of companies in the U.S. and Canada with the low-wage states of Mexico to “nearshore their production of innovative goods and the low-tech complementary manufacturing of products in high-tech industries into Mexico….This collaboration of complementary labor forces would help North American supply chains perform as a region that’s globally competitive with the supply chains of Asian low-cost competitors.”

Promote Industry-University Partnerships – “Firms on the cutting edge of new research can benefit from tapping the skills of the next generation of scientists and engineers early on by collaborating with neighboring universities via internships, fellowships, and other resource sharing with academic institutions. As federal funding for intramural research in states/provinces lags behind, industry investment in university research is increasingly important.”

Expand Collaborative Research Between U.S. and Canadian Leaders – “Firms engaging in international research collaboration tend to generate more valuable research than firms not collaborating in research or only collaborating among domestic firms do… Firms of U.S. and Canadian states/provinces should thus pursue greater research collaboration and co-patenting, given the proven benefits in international research collaboration and diversifying with new research partners. Doing so would help expand the network of shared research knowledge to drive more frequent and impactful innovations for both U.S. and Canadian states.”

Fully Embrace USMCA’s Commitments to Create a Free-Flowing North American   Digital Economy – The USMCA provided stronger rules for digital services across industries such as finance, e-
commerce, and software, for cross-border data transfers. The United States, Canada, and Mexico must “utilize the full economic value of data and remain competitive in the global digital economy.”

Expand National Place-Based Development Projects – The report recommends thatnational and regional policymakers should use the NASICI rankings to identify regions or states that are lagging behind in economic development.  The authors note that the efforts of the U. S. Economic Development Agency and regional commissions have “fallen off” and that the EDA’s budget had been reduced over time.  “Federal investment to build up economic attractiveness for underperforming states can improve their competitive edge and reduce economic hardships for the populations of those states.”

Improve Economic Indicator Data Availability Among North American States – “…the NASICI, ITIF and its Canadian and Mexican partners were only able to identify 13 indicators for which data was uniformly and readily available across North America’s 92 subnational regions. Statisticians from Canada, Mexico, and the United States should collaborate to make more such indicators available.”

In conclusion, the report states: “Today’s 21st-century economy has different success markers than the post-war economy experienced in the latter half of the 20th century. There are many more global competitors in the space of advanced technology production, R&D, and digital services.”  For the United States, “NASICI scores are helpful to bring to light regions needing more federal attention to support innovation competitiveness.”

Th9is report confirms that the narrative of the “inevitable decline” of American manufacturing of American manufacturing is no longer true and “vibrant opportunities” already exist.  These “vibrant opportunities” need to be expanded to be achieve the goal of fostering 50,000 more world-class companies and creating five million more manufacturing jobs by 2030.

Manufacturing is Critical to Our National Defense

Tuesday, July 21st, 2020

The final reason that manufacturing is important is that manufacturing ensures that the U.S. has a strong industrial base to support its national security objectives. We need to preserve our national and homeland security to be able to produce the goods that allow us to defend our national sovereignty.

American manufacturers supply the military and Defense Department with the essentials needed to defend our country, including tanks, fighter jets, submarines, unmanned vehicles (drones) and other high-tech equipment. The same advances in technology that consumers take for granted support the military, particularly soldiers fighting overseas.

In the keynote address “Lessons for a Rapidly Changing World” at the CA World conference in 2003, Dr. Henry Kissinger, former U.S. Secretary of State, said, “The question really is whether America can remain a great power or a dominant power if it becomes primarily a service economy, and I doubt that. I think that a country has to have a major industrial base in order to play a significant role in the world. And I am concerned from that point of view.” He added, “But if the outsourcing would continue to a point of stripping the U.S. of its industrial base and of the act of getting out its own technology, I think this requires some really careful thought and national policy probably can create incentives to prevent that from happening.”

As more and more manufacturing was outsourced offshore, the warnings of the dangerous consequences continued.  Joe Muckerman, former director of emergency planning and mobilization in the Office of the Secretary of Defense, wrote a guest editorial entitled “Without a Robust Industrial Base DOD Will Lose Future Wars” in the April 17, 2008 edition of Manufacturing & Technology News. He opined:

Joe Stalin said that World War II was not won on the battlefields of Europe but in Detroit. Had Stalin lived until the end of the Cold War, he probably would have arrived at a similar conclusion. The U.S. won the Cold War because it maintained technologically superior strategic weapons at a level that deterred the Soviet Union from attacking our vital interests. The United States was able to sustain this force for half a century during which the U.S. economy prospered while that of the USSR collapsed. … Today the U.S. industrial base is fast becoming global and the U.S. economy is in trouble.

In April 2011, the Information Technology & Innovation Foundation (ITIF) released the report, “The Case for a National Manufacturing Strategy,” by Stephen Ezell and Robert Atkinson which  echoed my strong belief that manufacturing is critical to our national security:

They wrote, “If we lose our preeminence in manufacturing technology, then we lose our national security. This is because:

  • As the U.S. industrial base moves offshore, so does the defense industrial base.
  • Reliance on foreign manufacturers increases vulnerability to counterfeit goods.”

The report revealed that the “United States has diminishing or no capability in lithium-ion (Li-ion) battery production, yttrium barium copper oxide high-temperature superconductors, and photovoltaic solar cell encapsulants, among others. … Additional examples of defense-critical technologies where domestic sourcing are endangered include propellant chemicals, space-qualified electronics, power sources for space and military applications (especially batteries and photovoltaics), specialty metals, hard disk drives, and flat panel displays (LCDs).”

On July 21, 2017, President Trump issued Exec. Order 13806, “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States,” whose “primary goal was to conduct a comprehensive assessment of the industrial base and develop a set of specific, actionable recommendations to mitigate or eliminate the identified impacts.”

In December 2017, President Trump set forth “The National Security Strategy of the United States of America,” to put American First in which he stated, “A healthy defense industrial base is a critical element of U.S. power and the National Security Innovation Base. The ability of the military to surge in response to an emergency depends on our Nation’s ability to produce needed parts and systems, healthy and secure supply chains, and a skilled U.S. workforce.”  Since then, President Trump’s economic policies have focused on putting America First to protect our national security through the following:

  • Renegotiating NAFTA and KORUS
  • Corporate and personal tax cuts
  • Regulatory reform
  • Tariffs on steel, aluminum, and other Chinese goods tax cuts
  • Strengthening Buy America requirements for federal government procurement 

As required by E.O. 13806, on Oct. 5, 2018, Deputy Secretary of Defense Pat Shanahan, on behalf of Secretary of Defense Jim Mattis, presented the report, “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States,” to President Trump. Note:  The  unclassified version is available here.  This 146-page report comprehensively assesses every aspect of the defense industrial base. 

One important factor noted was “The decline in the U.S. manufacturing industry, relative to prior periods of great power, creates a variety of risks for America’s manufacturing and defense industrial base and, by extension, for DoD’s ability to support national defense. Risks range from greater reliance on single sources, sole sources, and foreign providers to workforce gaps, product insecurity, and loss of innovation.”

 The U.S. cannot rely on other countries to supply its military because their interests may run counter to its own.  If we faced a real military threat to our homeland, how would we assure access to the industrial and military goods needed to defend our country when most of these items are being manufactured in China? We cannot risk being held hostage to foreign manufacturers when it comes to products that are essential for our national security and the U.S. military. The COVID-19 pandemic has taught us that we must source critical pharmaceuticals, PPE, and medical devices in the U.S. to protect the health and safety of American citizens.  In turn, it is crucial that key components and technologies that are critical to the production of U.S. weapons and other products needed by our military and Department of Defense be produced within the United States.  This is the only way that we will be able to protect our national security and keep America a free country.


 

Manufacturing is the Engine of American Technology Development and Innovation

Tuesday, July 7th, 2020

The fourth reason why manufacturing is important is that American manufacturers are responsible for more than two-thirds of all private sector R&D, which ultimately benefits other manufacturing and non-manufacturing activities. Nearly 60 percent of new patents derive from the manufacturing sector and the closely integrated engineering and technology-intensive services.

Manufacturing R&D is conducted in a wide array of industries and businesses of all sizes. The heaviest R&D expenditures take place in computers and electronics, transportation equipment, and chemicals (primarily pharmaceuticals).

The competitive status of U.S. manufacturing had been increasingly challenged by the state-of-the-art technologies being developed by established nations such as Japan, Germany, Korea, and Taiwan. China has acquired advanced manufacturing capability through R&D tax incentives, incentives for direct foreign investment, and theft of intellectual property.

According to the 2018 annual survey conducted by the Industrial Research Institute (IRI), 59 percent of the companies responding said they plan to increase R&D spending in 2018; only 29 percent reported anticipating little or no change, and 13 percent are expecting a decrease in total R&D spending.” Note:  This is the last year that the report is available for free, 2019 and 2010 reports now cost $51.)

“The State of U.S. Science and Engineering 2020” report by the National Science Board of the National Science Foundation states, “Although the levels of federal R&D funding rose across performing sectors between 2000 and 2017, the share of total U.S. R&D funded by the federal government declined from 25% to 22%…By type of R&D, the shares of federal government funding for basic research and experimental development declined since 2000 despite rising levels of funding. The federal government is a major funder of basic research, and between 2000 and 2017, the share of basic research funded by the federal government declined from 58% to 42%. Federally funded applied research was an exception during this period, as both the level and share rose.”

America’s manufacturing innovation process leads to investments in equipment and people, to productivity gains, the spreading of beneficial technology to other sectors, and to new and improved products and processes. It is an intricate process that begins with R&D for new goods and improvements in existing products. As products are improved in speed, accuracy, ease of use, and quality, new manufacturing processes are utilized to increase productivity. Education and training of employees is required to reap the benefits of such improvements in manufacturing processes.

Innovation is the hallmark of U.S. manufacturing, and it requires a certain mass of interconnected activities, which, like a snowball rolling downhill, grows in size as it proceeds toward end users. Substantial R&D is required to keep the ball rolling to ensure more successes than failures.

Innovation and production are intertwined. You need to know how to make a product in order to make it better. “Most innovation does not come from some disembodied laboratory,” said Stephen S. Cohen, co-director of the Berkeley roundtable on the International Economy at the University of California, Berkeley. “In order to innovate in what you make, you have to be pretty good at making – and we are losing that ability.”

Manufacturing is an incubator for technology and science, which require proximity to facilities where innovative ideas can be tested and worker feedback can fuel product innovation. Without this proximity, the science and technology jobs, like customer service jobs, follow the manufacturing jobs overseas.

The ability to fund R&D comes largely from the profits that a company can invest back into its business. Thus, the available cash flow of manufacturing companies is closely linked to their ability to conduct R&D as well as make capital investments.

The process through which R&D promotes economic prosperity is complex and multi-faceted. First, there are direct benefits to firms from their own R&D investments. Second, other companies derive benefits from the R&D of the innovating company in a “spillover” effect. Third, the feedback from R&D and its spillovers improves other products, processes, and distribution networks. Fourth, one industry’s investment has a beneficial effect on other industries and the U.S. economy as a whole. “Spillover” effects are increased through sales transactions and knowledge transfers when the parties involved are interdependent and closer in geographic proximity.

Consumers have benefited greatly from the large selection and quality of manufactured goods available as a result of the innovative new products resulting from R&D. U.S. consumers now have a dizzying array of products from which to choose. Quality improvements in manufactured goods have also reduced the frequency of repair and reduced the cost of operation.

The maintenance of an effective U.S. R&D network is essential for attracting domestic and foreign R&D funds and the subsequent manufacturing that results from the innovation process, which increases U.S. value added, resulting in economic growth.

The problem today is that with the offshoring of so much manufacturing, certain tiers in the high-tech supply chain have disappeared in the U.S. When a tier in a supply chain has been moved offshore, domestic research and other supporting infrastructure are degraded, which can be a major problem for U.S. manufacturers transitioning to the next product life cycle.

In the past, technology would flow from new domestic R&D-intensive industries into the remainder of the economy, boosting overall national productivity. Today, such emerging technologies are flowing at least as rapidly to the innovators’ foreign partners or suppliers.

In the report “The Case for a National Manufacturing Strategy,” authors Ezell and Atkinson wrote, “manufacturing, R&D, and innovation go hand-in-hand.” They concur with my argument that “the process of innovation and industrial loss becomes additive. Once one technological life cycle is lost to foreign competitors, subsequent technology life cycles are likely to be lost as well.”

They add “[T]here is a deeply symbiotic, interdependent relationship between the health of a nation’s manufacturing and services sectors: the health of one sector greatly shapes the health of the other. In particular, the technology-based services sector depends heavily on manufactured goods.”

In my opinion, it doesn’t matter whether American companies do their R&D within their own facility or hire it to be done by outside American consultants or product development firms, but it does matter whether the R&D is done within America. We need to keep innovation within our country if we want to remain on the cutting edge of technology and maintain the critical mass of our manufacturing industry. Outsourcing R&D to China is like a mayor giving the key to his city to a would-be conqueror. We need to protect the key to our future security as a nation and keep R&D and manufacturing within the United States.  

This intricate process of R&D and product development generates greater growth and higher living standards than any other economic sector. But it requires a critical mass to generate this wealth. If the U.S. manufacturing base continues to shrink at its present rate, the critical mass will be lost. The manufacturing innovation process will shift to other global centers, and a decline in U.S. living standards will be the result.

Manufacturing Generates Exports

Tuesday, June 23rd, 2020

The third reason why manufacturing is important is that the United States is still a top leader in generating manufacturing exports. The U.S. was the world’s largest exporter until 1992, when Germany took over this position. The U.S. maintained a position as the second-highest exporter, until China surpassed it in 2008. Germany remained number one until 2009, when China surpassed it to become the world’s top exporter. The U.S. overtook Germany as the second-highest exporter in 2014. The latest data for world exports is from 2019 when China’s exports totaled $1.8 trillion, down from $2.49 trillion in 2018; the U.S. exports totaled $1.24, down from $1.66 trillion in 2018, and Germany’s exports were $1.12, down from $1.55 trillion in 2018.

According to a 2020 report on exports: ”The following export product groups categorize the highest dollar value in American global shipments during 2019. Also shown is the percentage share each export category represents in terms of overall exports from the United States.

  1. Machinery including computers: $205.9 billion (12.5% of total exports)
  2. Mineral fuels including oil: $199.7 billion (12.1%)
  3. Electrical machinery, equipment: $173.2 billion (10.5%)
  4. Aircraft, spacecraft: $136 billion (8.3%)
  5. Vehicles: $133 billion (8.1%)
  6. Optical, technical, medical apparatus: $90.8 billion (5.5%)
  7. Plastics, plastic articles: $64.9 billion (3.9%)
  8. Gems, precious metals: $59.6 billion (3.6%)
  9. Pharmaceuticals: $53.6 billion (3.3%)
  10. Organic chemicals: $39.3 billion (2.4%)

America’s top 10 exports surpass well over two-thirds (70.3%) of the overall value of its global shipments.”

Manufactured goods “make up more than 66% of U.S. exports…One-third of exported goods are capital goods double the level of 20 years ago… Only 12% of U.S. exported goods are consumer goods…Just 8% of exported goods are foods, feeds, and beverages ($131 billion). The big three are soybeans ($20 billion), meat and poultry ($20 billion), and corn ($9 billion).”

According to the U.S. Small Business Administration, small- and medium-sized enterprises (SMEs) comprised 97 percent of all identified U.S. exporters, generated 64 percent of net new jobs between 1992 to 2009, and represented 31 percent of U.S. export value in 2008. About 65 percent of all U.S. exports come from small businesses with fewer than 20 employees.

Exports of manufactured goods is important to the economies of most states – even in those areas where manufacturing has declined as a portion of the Gross State Product (GSP).  

The top five U. S. export markets:

  • Canada
  • Mexico
  • China
  • Japan
  • United Kingdom

Both President Bush and President Obama had the goal of doubling U.S. exports during their administrations. President Obama even established the Export Promotion Cabinet by Executive Order 13534 On March 11, 2010 and tasked them with a plan to achieve the goal of doubling U.S. exports in five years that he had presented in his 2010 State of the Union address. 

The National Export Initiative (NEI) Executive Order had five components: improve advocacy and trade promotion, increase access to export financing, remove barriers to trade, enforce current trade rules, and promote strong, sustainable, and balanced growth.

The NEI identified eight priorities for the plan, and the Export Promotion Cabinet developed recommendations to address each of these priorities, which covered all five components, cut across many federal government agencies, and focus on areas where concerted federal government efforts can help lift exports.

It was no surprise to me that the plan to double exports in five years was unsuccessful because we are fighting against the predatory mercantilism of countries such as China, India, and Japan. The biggest problem is that the United States is no longer the manufacturing source for consumer and household goods and commodities that it once was. American brands such as IBM, General Electric, and Maytag were known worldwide for their quality and innovation. These types of products are now being made in Asia, mostly in China, and imported by the United States and other countries for their consumers to buy rather than being manufactured in the United States for export worldwide.

The majority of manufacturers that were able to survive the great stampede to offshore manufacturing to China don’t produce a finished product; they are the Tier 2, 3 and 4 suppliers that produce components, parts, and assemblies for Original Equipment Manufacturers. Thus, they don’t have a product to sell for export.  I have been representing this type of company as a manufacturers’ sales rep for over 30 years. Most of these companies do not have engineering staff to design a complete product and don’t have the capability to market a product internationally. 

I’ve been working with inventors and entrepreneurs of start-up companies for years to help them select the processes and sources for their new products.  As a director on the board of the San Diego Inventors Forum, I give a presentation of how to select the right processes and sources for a new product as part of our annual curriculum at our monthly meetings in our program of helping inventors go from product design to market.

If we want to increase our manufacturing exports, we need to help inventors and entrepreneurs develop their products and get them to market.  Additive manufacturing has enabled inventors and entrepreneurs to produce low cost prototypes rapidly here in the U.S. The biggest hurdle is to fund the tooling needed to manufacture their products at production volume levels. For advanced technologies that require research and development, there are government funded Small Business Research Grants that enable small start-up companies boot strap their product development.  Perhaps, we can create a grant program for inventors and entrepreneurs to fund the tooling and initial production runs of new products. 

Remember, Albert Einstein is widely credited with saying, “The definition of insanity is doing the same thing over and over again, but expecting different results.” We aren’t going to increase exports by doing the same things we have been doing for the past 20 years.

How to Leverage New Technologies & Energize a New Generation to Close the Labor Gap

Tuesday, May 12th, 2020

With over 30 million people unemployed right now due to shutdowns and stay-in-place orders in most states because of COVID-19, it may seem like odd timing for American Machinist and IndustryWeek to release a new eBook titled, “Closing the Skills Gap – How manufacturers are leveraging new technologies and energizing a new generation to finally close the labor gap,” sponsored by Epicor Software Corporation. However, now is the time to be prepared to take advantage of the increased interest in returning manufacturing to America and strengthen our manufacturing base as a result of the weaknesses in the domestic supply chain revealed by the COVID-19 pandemic. 

This eBook is important because the Executive Summary states: “We are on the cusp of a full-scale digital revolution in the manufacturing industry…[and] on the cusp of an enormous wave of retirements as Baby Boomers exit the job market…we have a perfect storm.”  The result could be that the “500,000 unfilled manufacturing jobs today…[could] balloon to 2.5 million over the next decade.”

The facts are that “a whopping 10,000 Baby Boomers retire every day” and “the skills required for a job don’t match talent in existing worker pools. Five out of 10 open positions for skilled workers in the U.S. manufacturing industry remain unoccupied today. This shortage is due to the skills gap.”

The good news is that “Over the last few years, manufacturers across the industry have begun systematically attacking the skills gap head-on…” The eBook outlines the application of the new tactics that manufacturers are applying across industries.

First, the eBook mentions that Gen Z may be the generation that saves manufacturing from the “silver tsunami.” It reports that a new study, 2019 L2L Manufacturing Index, examining the American public’s perceptions of U.S. manufacturing, found that adults in Generation Z (those aged 18-22) are:

  • 19% more likely to have had a counselor, teacher or mentor suggest they look into manufacturing as a viable career option when compared to the general population.
  • One-third (32%) had manufacturing suggested to them as a career option, as compared to only 18% of Millennials and 13% of the general population.
  • 7% more likely to consider working in the manufacturing industry
  • 12% less likely to view the manufacturing industry as being in decline, both compared against the general population.
  • one-third (32%) have family members or friends working in the manufacturing industry, compared to 19% for Millennials and 15% for the general population.

However, there is still work to be done about the perception of manufacturing, as “A majority (56%) of Generation Z would consider working in the tech industry, while only 27% would consider working in the manufacturing industry. Additionally, they are more likely to consider manufacturing jobs boring when compared to Millennials and the general population.”  

In the chapter “5 Ways Manufacturing is Tackling the Labor Shortage,” Poornima Apte lists creative ways manufacturing companies are attracting and recruiting talent:

1. Encouraging a Test Drive – hiring for short-term assignments as a way to company and worker to test whether there is a good fit for permanent employment.

2. Advancing and Training Internal Talent – “Promoting internal talent can be a two-fer. It serves to retain valuable employees, and the company invests in known entities.” Instead of traditional tuition reimbursements for back-to-school training…manufacturing companies are forking over the money upfront.”

3. Tapping into Unconventional Talent Pools – “Companies are looking beyond the pool of graduating students to recruit blue-collar workers… such as ex-convicts looking to reenter the workforce.

Manufacturing companies are also partnering with organizations that cater to veter­ans and minorities.”

4. Looking beyond the resume – “By checking on skillset rather than education alone, companies are more closely aligning specific jobs to the talent they need…77% of employers are willing to prioritize a candidate’s skills and potential over experience.

5. Diving into Data Analytics – “Manufacturers can analyze demographic factors across the country and find out which places will have the best talent…companies can act on that intelligence proactively and recruit more aggressively in areas they feel have more desirable candidates.

Next, Jared Lindzon presents three ways companies can use technology to attract younger employees in the chapter “How to Leverage Technology to Attract a Younger Workforce:”

  • Offer elearning – “As the first generation to grow up with the Internet, younger workers like having constant access to information. But…they’re often not interested in anything that feels too much like school. Leveraging modern technology that millennials know and love, through eLearning, makes a huge difference.” Millennials are eager to learn. They just want to do it using modern, digital platforms.”
  • Update Administrative Processes – …younger workers expect the same level of efficiency, convenience and usability in their work tools as they enjoy in their consumer products. “They bring those same expectations to their jobs, so employers are increasingly exam­ining processes to provide the same quality experience and ease-of-use for employees using technology in the workplace…”
  • Avoid the ‘If it’s not broke…” Fallacy’” – “… staying ahead of technology trends can help attract younger workers…They thrive off of staying ahead of the tech curve to discover new methods of completing tasks and auto­mating processes…Younger workers want to feel like they’re working for a company on the cutting edge. The new generation is more flexible, open to change and willing to get hands-on to discover new techniques…”

The eBook also offers a list of ten suggestions from consulting firm Mercer on how to optimize an experienced workforce in the chapter, “Let’s Not Forget The Value of Experienced Workers,” warning that “ignoring this group is risky. By 2040 the average life expectancy is predicted to be 80 years, up from 56 in 1966 and 72 in 2016. As a result, many people are working longer for a variety of reasons, including financial necessity, purpose, and social/ intellectual engagement.” A few important key suggestions are:

  1. Collect and analyze your age-profile data to explore demographic and skills pinch points.
  2. Develop and implement people and careers strategies that embrace the experienced workforce.
  3. Develop a lifelong learning attitude that positions people to embrace jobs of the future.
  4. Implement an effective flexible-working strategy.

I was really gratified to see that the eBook included the chapter “How Manufacturing Day is Helping Combat the Labor Shortage,” by Tom Bidinger.  Manufacturing Day (aka MFG DAY) was started in 2012 to combat the common misconceptions about manufacturing, and it has made a difference. “MFG DAY—gives manufacturers the opportunity to open their doors and show what it’s really like to work in manufacturing.”

I was pleased to read that Manufacturing Day is contributing to breaking “the cycle of misinformation when it comes to manufacturing careers. A recent survey found that just 67% of parents would encourage their child to learn more about job opportunities in manufacturing. That number needs to increase.” I’ve attended events for MFG DAY in three counties, San Diego, Riverside, and Los Angeles, since it began in 2012 and have visited dozens of companies to see what they were manufacturing.  It’s been a pleasure to see that parents are taking the time to take their children and teens to visit local manufacturers. 

Bidinger writes, “By working together during and after MFG DAY, manufacturers can begin to address the skilled labor shortage, connect with future generations, change the public image, and ensure the ongoing prosperity of the whole industry. “

In the next chapter, “About the Skills Gap and Start Solving it,” Michael Collins writes that “A lack of training and job security is at the root of manufacturing’s image problem.” He adds, “the skills gap is real and a two-pronged problem. First, manufacturing does not have the advanced training programs needed to produce the high skilled workers they need. Second, young people, their parents and counselors do not see manufacturing as a good career.”

He provides a good summary of what manufacturers, especially large, multinational corporations, have done in the past 40 years to reduce labor costs and other costs of doing business and then discusses some of the tools that can be used to address the skills gap. 

The final two chapters provide examples of what two companies are doing to address the skills gap.  In the chapter, “Modern Machining & The Need for Speed,” John Hitches describes what former boxer and machining revolutionary, Titan Gilroy, has done in “an aggressive strategy to combat all the threats to American manufacturing, from outsourcing to the skills gap.”

In the final chapter, “Creating a National Workforce of Trained Welders,” IndustryWeek Senior Editor, Adrienne Selko, describes how Lincoln Electric has partnered with Tooling U-SME to expand its welding education program in order to close the national skills gap in welding.

Utilizing all of the suggestions contained in this eBook will rebuild American manufacturing to create jobs and prosperity and protect Americans from being so severely impacted by unexpected disasters whether natural or manmade like the Coronavirus.

Who Are My Heroes? Part Two

Tuesday, April 28th, 2020

My additional heroes are people with whom I connected after my first book, Can American Manufacturing be Saved? Why we should and how we can was published in 2009. We shared a focus on doing what we could to save and rebuild American manufacturing. Again, they are presented alphabetically, not chronologically.

Greg Autry, Ph.D., is “an educator, writer and technology entrepreneur. He researches and publishes on space commerce, entrepreneurship, technology innovation and trade policy. He is an Assistant Professor of Clinical Entrepreneurship with the Lloyd Greif Center for Entrepreneurial Studies in the Marshall School of Business at the University of Southern California, where he teaches entrepreneurship and technology commercialization courses.” I met Greg when he was a doctoral candidate at the Merage School of Business at UC Irvine, before he became Senior Economist for the non-partisan, non-profit organization. Coalition for a Prosperous America,  We were also fellow board members of the non-profit American Jobs Alliance for five years. Dr. Autry is the co-author of the book Death by China and a producer on the documentary film, Death by China, (directed by Peter Navarro). His opinion articles have been published in major news outlets including the San Francisco Chronicle, LA Times, Washington Times, Wall Street Journal, and SpaceNews. He was a regular contributor to Huffington Post and is now a regular contributor to Forbes. He is currently on the advisory board of the Coalition for a Prosperous America.

Den Black is President of the non-partisan, non-profit organization, American Jobs Alliance (AJA). He earned a BSME at Kettering University and worked as a Senior Strategist, Futurist, Innovator at Delphi Automotive Systems for 37 years.  Den invited me to join the board of AJA in 2012 after he was referred to me by Executive Director, Curtis Ellis after we met when he was on a West Coast trip. AJA is “dedicated to fostering the public’s understanding of the American System of free enterprise, a system established by the Founding Fathers of the United States to develop the domestic economy of the United States and promote the employment of Americans in diverse occupations through investment in infrastructure and promotion of key industries and technologies in the United States.” Currently AJA is promoting a window decal  “Boycott China for Jobs, Human Rights, Peace” and AJA’s affiliated website:  www.GetOutofChina.us.

Don Buckner is the Founder and CEO of MadeinAmerica.com, MadeinUSA.com, and MadeinAmerica.org. His vision started in 1998 “when he attempted to find several American-made products online, but was unable to do so. Frustrated, he took matters into his own hands, purchasing the Domain MadeintheUSA.com. The website served as a directory resource connecting patriotic consumers to more than 300,000 American-made manufacturers for several years. He also acquired the Domain MadeInAmerica.com.” After the company he founded in 1997, Vac-Tron Equipment, was acquired in 2018, he and his wife decided to invest some of their profits to hold the first Made in America trade show.  They rented the convention center in Indianapolis, IN, where the first show was held October 3-6, 2019. I met Don when I attended the show as one of the many featured panelists and speakers.  The next Made in America show will be held at the TCF convention center, Detroit, Michigan Oct. 1-4, 2020. 

Dan DiMicco, is an American businessman who is the former CEO and chairman of Nucor Steel company and is now Chairman Emeritus. Dan was appointed to the United States Manufacturing Council in 2008 by then-U.S. Commerce Secretary Carlos M. Gutierrez, and served on the board until 2011. Dan also served on the boards of the National Association of Manufacturers and the World Steel Association on the Executive Committee. He also served as a Senior Trade/Economic Advisor to the Trump Campaign and the Lead on the USTR Transition Team. He currently serves on the Board of Directors for Duke Energy Corporation and continues to represent Nucor on the US Council on Competitiveness. He is currently Chairman of the Coalition for a Prosperous America (CPA). He is the author of American Made: Why Making Things Will Return Us to Greatness, published in 2015. I had the pleasure of hearing Mr. DiMicco speak as the keynote speaker at several of the Manufacturing Summits held in California between 2013-2018, when I was the chair of the California chapter of CPA and at the Trade Conferences held by CPA in Washington, D. C. during this same time period.

Curtis Ellis was the Executive Director of the American Jobs Alliance, an independent non-profit organization promoting pro-jobs and Buy American policies, when I met him after my first book was published. He recommended me as a potential board member to Den Black of AJA. He had previously worked in Congress and on federal, state and local campaigns. For his work as a journalist, producer, writer and reporter, he has appeared on 60 Minutes, HBO, NBC, CNN, NPR and in the NY Times, San Francisco Chronicle, Chicago Tribune, TIME, Huffington Post, The Hill, and other outlets. His commentary has appeared on CNN, MSNBC and radio shows nationwide. Currently, Mr. Ellis is currently Policy Director with America First Policies. He served as senior policy advisor on the 2016 Trump-Pence campaign, was on the Presidential Transition Team, and served as special advisor to the U.S. Secretary of Labor in the International Labor Affairs Bureau in 2017.

Ian Fletcher, author of Free Trade Doesn’t Work, What Should Replace it and Why, published in 2011. When I met him, he was a Research Fellow at the U.S. Business and Industry Council. Alan Tonelson asked him to meet me when he was in southern California in the summer of 2010, not long after I started writing blog articles. When, he switched to becoming the Senior Economist of the Coalition for a Prosperous America in early 2011, he suggested I join CPA, which I did.  I immediately read his book from which I learned everything I didn’t know about the dangerous effects of our trade agreements. While he was at CPA, he and Michael Stumo (CPA CEO) edited the second edition of my book, Can American Manufacturing be Saved? – Why we should and how we can, which was published in 2012 by CPA. Ian was a featured speaker at several of the above- mentioned Manufacturing Summits.  He was educated at Columbia and the University of Chicago, and he lives in San Francisco. He is currently on the advisory board of the Coalition for a Prosperous America.

Rosemary Gibson is a “national authority on health care reform, Medicare, patient safety and overtreatment in medicine, as well as “an award-winning author, inspirational speaker, and advisor to organizations that advance the public’s interest in health care.”  She is the co-author of China RX, published in 2018, as well as Medicare Meltdown (2013), Battle Over Health Care (2012), Treatment Trap (2010), and Wall of Silence (2003). I met Ms. Gibson when she was a featured speaker at the Made in America trade show in October 2019. With the outbreak of the COVID-19 pandemic this year, her book is getting the full attention it deserves as an expose of the offshoring to China of pharmaceuticals, PPE, and medical devices.

Harry Moser founded the Reshoring Initiative in 2010 after 25 years as the North American president of GF AgieCharmilles, now GF Machining Solutions. The mission of the Reshoring Initiative is to help bring manufacturing jobs back to the U.S. using the Total Cost of Ownership Worksheet calculator he developed. Harry was inducted into the Industry Week Manufacturing Hall of Fame 2010 and was named Quality Magazine’s Quality Professional of the year for 2012…won the Jan. 2013 The Economist debate on outsourcing and offshoring, and received the Manufacturing Leadership Council’s Industry Advocacy Award in 2014. Harry and I connected in August 2010 after he read my blog article about the importance of understanding Total Cost of Ownership.  He told me I wrote about what he just started and trained me how to use his TCO worksheet, authorizing me to be a speaker on behalf of the Reshoring Initiative.  

James Sturber is the author of What if Things Were Made in America Again: How Consumers Can Rebuild the Middle Class by Buying Things Made in American Communities, published in 2017. Subsequently, he founded the Made in America again organization. After obtaining a law degree, he “devoted his career to public policy, law and entrepreneurship.  He began his career as legislative assistant to a member of the U.S. House of Representatives, focusing on matters before the Committee on Energy and Commerce.  He subsequently practiced legislative and administrative law in Washington, D.C. I met Jim at the Coalition for a Prosperous America trade conference in Washington, D. C. in 2018. When I read his book, I discovered we had some up with much of the same data in our research as my last book, Rebuild Manufacturing – the key to American Prosperity was also published in 2017. He currently co-chairs the Buy American committee for CPA of which I am a member.

Alan Uke is a San Diego businessman, entrepreneur, and community leader, who “started his company, Underwater Kinetics, 41 years ago while attending the University of California at San Diego. Uke holds over 40 patents and exports his SCUBA diving, industrial lighting, and protective case products to over 60 countries.”  He is the author of Buying America Back, A Real-Deal Blueprint for Restoring American Prosperity, published in 2012. Uke documented that in 2011, the U.S. had a trade deficit with 88 countries provides a chart showing the trade balance with every country with which the U. S. trades. When we met for lunch, I found out that he was also a member of the Coalition for a Prosperous America, so we had something else in common. “He is also Founder Emeritus/Founding Board President of the San Diego Aircraft Carrier Museum which acquired the USS Midway in June 2004.”

I would be remiss in not giving Honorable Mention to the many members of the U.S.-China Economic and Security Review Commission that was “created on October 30, 2000 by the Floyd D. Spence National Defense Authorization Act of 2001…” The primary purpose of this Commission is “to monitor, investigate, and report to Congress on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China.” Beginning in December 2002, the Commission submitted “to Congress a report, in both unclassified and classified form, regarding the national security implications and impact of the bilateral trade and economic relationship between the United States and the People’s Republic of China. The report shall include a full analysis, along with conclusions and recommendations for legislative and administrative actions, if any, of the national security implications for the United States of the trade and current balances with the People’s Republic of China in goods and services, financial transactions, and technology transfers.”  I read several of the reports as I was researching my three books, and each year, China’s unfair trading practices threats to U.S. national security, and other violations of the principles and terms of China’s membership in the World Trade Organization were well documented.  Yet, no action was taken by Congress under the administrations of President Bush or President Obama.   

I met many other people at the Made in America trade show last October, some of whom have recently joined the CPA Buy American committee. Some of these people could very well be listed in a future article on my heroes as I get to know them and their work better.  I would encourage you to join our efforts to rebuild America’s economy to create jobs and prosperity by becoming a member of CPA.

Who Are My Heroes? Part One

Tuesday, April 21st, 2020

As you might expect my heroes are people who have played a role in trying to alert Americans to the effects to our economy of the decimation of American manufacturing and the dangers of outsourcing manufacturing to China and other countries.  These are real people and none are elected officials.

This month marks the 13th year of my journey to do what I could to save American manufacturing. In May 2007, I e published one of my periodic San Diego County Industry reports that I had been writing since 2003.  I titled it, “Can U.S. Manufacturing be Saved?” My report had grown from four pages to 13 pages, and I realized that what I was documenting about the loss of manufacturers in San Diego and California was going on all over the country.  That’s when I made the decision to start writing my first book, Can American Manufacturing be Saved? Why we should and how we can, published in May 2009.  In the course of researching and writing my first book, my second edition of the same (2012), and my third book, Rebuild Manufacturing – the key to American Prosperity (2017), I have connected with many people who shared my concerns and were early advocates of saving American manufacturing.

My first set of heroes are those who either wrote books, articles, or newsletters that I came across researching my first book. When I was writing my reports, I was blaming the loss of manufacturing in California on the bad business climate, high taxes, and the cheap Chinese wages. These heroes expanded my knowledge greatly by showing that it was our primarily our national trade and tax policies, the trade cheating of China and other Asian countries, and corporate greed that was responsible for losing over five million manufacturing jobs between the year 2000 and 2009.  In alphabetical order, my heroes are:

Michael P. Collins is author of Saving American Manufacturing, Growth Strategies for Small and Midsize Manufacturers, published in 2006 and its companion handbook, The Growth Planning Handbook. Prior to becoming a writer, he was Vice President and General Manager of two divisions of Columbia Machine in Vancouver Washington. He is President of MPC Management, a consulting company that focuses exclusively on the problems and challenges of small and midsize manufacturers (SMMs) of industrial products and services. His book is written from the viewpoint of what manufacturers can do to save themselves and grow their business.  I arranged for him to come to San Diego to give a presentation to the Operations Roundtable of the American Electronic Association in 2011.

Lou Dobbs, is an American television commentator, radio show host, and the anchor of Lou Dobbs Tonight on Fox Business Network, and author of Exporting America, Why Corporate Greed is Shipping American Jobs Overseas, published in 2004 as hard cover and 2006 as a paperback. In his book, he “takes aim at the corporate executives and Washington politicians who profit by exporting U.S. jobs overseas—and shows readers what they can do to save not only their own careers, but the American way of life.

Ralph Gomory, who is well-known for his mathematical research and his technical leadership. For twenty years he was responsible for IBM’s Research Division, and then for 18 years was the President of the Alfred P. Sloan Foundation. He is the co-author with the late William J. Baumol of the book, Global Trade and Conflicting National Interests, published by MIT Press in 2001. After connecting by phone and email for years, it was nice to finally meet him at the Coalition for a Prosperous America trade conference in Washington, D. C. in 2018.

Richard McCormack, journalist and founder/publisher of Manufacturing & Technology News which he found in 1994. McCormack also served as the editor of the 2013 book on revitalizing manufacturing, ReMaking America. I read every issue of MT&N from July 2007 until it stopped publication at the end of 2016. He was also recognized as an American Made Hero by AmericanMadeHeroes.com for his newsletter “coverage of the profound financial and economic ramifications of the shift of industrial capability from the United States to Asian competitors.” He wrote “thousands of articles on outsourcing, industrial and technological competitiveness, government policies, and trends related to management, quality, technology and markets.”Mr. McCormack is currently Press Secretary and Program Manager, Office of Public Affairs, for the Department of Commerce.

Peter Kent Navarro is a Harvard Ph.D. economist and author of several books. I read his book The Coming China Wars, published in 2006, while I was researching my book. At that time, he was a professor of public policy at the University of California, Irvine. He currently serves in the Trump administration as the Assistant to the President, Director of Trade and Manufacturing Policy, and the national Defense Production Act policy coordinator. I first met Mr. Navarro when he was a professor at the University of California, San Diego and running for mayor in 1992. I also had the pleasure of seeing him when I attended the trade conference in 2018. I also read his book, Death by China, which he co-authored with Greg Autry, published in 2012.

Raymond Richman, Howard Richman (son), and Jesse Richman (grandson), authors of Trading Away our Future: How to Fix Our Government-Driven Trade Deficits and faulty Tax System Before It’s Too Late, published by Ideal Taxes Association in 2008. Raymond died in October 2019 at the age of 101. His tribute by Ideal Taxes states, he “authored four books, dozens of journal articles and hundreds of commentaries about economic development, tax policy and trade policy…Beginning with a commentary in the Pittsburgh Tribune-Review on September 14, 2003 (The Great Trade Debate), he became one of the first advocates of a policy of balanced trade, an alternative to the free trade vsfair trade debateHis essential argument was that trade, free or not, benefits both countries if it is balanced.” I am sorry that I didn’t get to meet him before he died.

Roger Simmermaker, author of How Americans Can Buy American: The Power of Consumer Patriotism, third edition published in 2008. He also writes Buy American Mention of the Week articles for his website and World New Daily. His book provides a guide to assist American’s who wish to purchase products made in America and discusses the importance of “Buying American” for the future economic independence & prosperity of America. He earned special recognition as an American Made Hero. After years of connecting to him by phone and email, it was a pleasure to also meet him at the same trade conference in 2018.

Alan Tonelson, a Research Fellow at the U.S. Business and Industry Council Educational Foundation, and a columnist for the Foundation’s globalization website, Tradealert.org and a Research Associate at the George Washington University Center for International Science and Technology Policy. He is also the author of The Race to the Bottom, published in 2000. “He has written extensively on the trade deficit between the United States and other countries. He has also written on free trade, globalization and industrial decline. He argues that U.S. economic policy should aim for “preeminence” over other countries, just as, he believes, other countries’ economic policies seek their own national interests. He is critical of various forms of “globalism” and internationalism.”

When I was researching my first book, the U.S. Business and Industry Council was the only organization that had a written plan to save American Manufacturing.

I introduced my book as a speaker at the Del Mar Electronics Show in San Diego County, California on May 6, 2009, and had my book on display at my company’s booth at the show. One of the first persons to buy my book was Adrian Pelkus, President of contract manufacturer, A Squared Technologies.  He was also the informal leader of the steering group running the San Diego Inventors Forum.  He invited me to the next SDIF meeting which I attended, and then invited me to join the steering committee, which I did.  After reading my book and endorsing the purpose and ideas I presented in my book, the steering committee changed the focus of SDIF from helping inventors source their products in China to sourcing the manufacture of their products in the U.S.

The SDIF meetings have an informal curriculum of topics to cover in a year, and I have been giving an annual presentation on how to select the right manufacturing processes and vendors to make their products.  It has a pleasure to be able to help so many inventors and entrepreneurs source their products in America.

My connections to theses heroes led me to connections with many other people and organizations who became part of my second set of heroes after my book was published.  I will write about these people in My Heroes Part Two.