Archive for the ‘Training’ Category

North Dakota’s Northern Plains UAS Test Site

Wednesday, July 12th, 2017

When I was first invited to North Dakota, the plan was for me to visit the Northern Plains UAS Test Site in Grand Forks, but it was about 80 miles away from Fargo, and the Site’s Director was going to be out of town the week of my trip.

My first thought was questioning why North Dakota was selected as one of the six UAS test sites compared to San Diego, which is home to Northrop Grumman’s Global Hawk and General Atomics’ Predator unmanned vehicles. I had given a presentation at the San Diego Lindbergh Chapter of the Association for Unmanned Vehicle Systems International in the spring of 2013 while they were collaborating to prepare a proposal for being selected as a test site and was surprised when San Diego was not selected.

I posed this question to my host, Paul Lucy, the first evening we met during my trip, and he supplied part of the answer. It turns out that the University of North Dakota in Grand Forks had a long history of training airline pilots starting in the late 1960s and more recently expanded into training pilots for unmanned vehicles.

In December 2013, the Federal Aviation Administration selected North Dakota to be one of the six test sites, officially known as the Northern Plains UAS Test Site. According to the website, the mission is:  “Collaborate with FAA and industry partners to develop equipment, systems, rules, and procedures to safely integrate unmanned aircraft into the NAS without negatively impacting existing general or commercial aviation.”

After I had written my other articles about North Dakota, I set up a phone interview with Nick Flom, Executive Director of the Northern Plains UAS Test Site. He took over the position in 2016 after the founding Executive Director, Robert Becklund, was promoted to Brigadier General and Deputy Adjunct General for the State of North Dakota. However, Nick is not new to the center since he was Becklund’s first hire when the site was established.

Nick provided me the rest of the answer as to why North Dakota was selected. He said, “When they were preparing for the selection process, the entire state went into what we called the “one voice” effort by the Governor, the North Dakota Department of Commerce, and the Office of the Adjunct General of the National Guard, the University of North Dakota, and other organizations in the state. Over $20 million was committed to establishing the UAS Test Site because the FAA test site designation did not include any Federal funding.”

As a point of reference, he told me that whole population of North Dakota is about 775,000, and there are only three Congressional Representatives. The population of the City of San Diego, California where I live is nearly double at 1.4 million.

He explained that “the wide open space of North Dakota was a big consideration, and there is no restricted air space because of population density. The FAA also wanted to diversify the test sites to reflect extremes of temperatures, and North Dakota has some of the highest and lowest temperatures of the U. S.”

The UAS Test Site website sums up the reasons why North Dakota was chosen as follows:

  • “Unequalled history, legacy, and culture of UAS.
  • Immediate access to uncongested airspace statewide and custom tailored to support your research.
  • Diverse climate and open terrain.
  • Unified commitment from North Dakota and congressional leadership, local industry, and key business decision makers.
  • State grant program to match funds from industry-academia research.
  • Strong relationship with Grand Sky, a UAS Business and Aviation Park at Grand Forks Air Force Base.”

When I asked what are his responsibilities, he answered, “We have a couple of different missions to integrate unmanned vehicles into the national air space:  supporting industry as rules are being developed, providing the test environment for application-based processes in agriculture, building inspection, insurance claims, etc., and as an economic driver for agriculture and energy. We look at unmanned vehicles as an opportunity to diversify the state’s economy. Grand Forks has an Air Force Base that has underutilized space, and there was 217 acres in Grand Forks available to establish a UAS business park. The first two tenants in the park are General Atomics and Northrop Grumman. General Atomics has a flight training facility for their sales of vehicles to foreign countries. They were training their pilots to fly in civilian air space. Northrop Grumman flies Global Hawks out of the Grand Forks Air Force Base to support some of their military customers. We help support these capabilities and have the goal of flying beyond the line of sight using the radar system at the Grand Forks Air Force Base. Right now, when General Atomics is doing flight training, they have a chase airplane following along. When they can fly beyond line of sight, they won’t have to have a chase aircraft follow along and will be able to execute their mission at a lower cost.”

Nick Flom provided me with more detail about UND’s history of pilot training. He said, “UND started with two airplanes in the 1960s, and then added a helicopter program in 1980. Now, they have 150 airplanes for commercial aviation pilot training. They were the first university to add unmanned vehicle pilot training in 2010, and are now filling the increasing demand for unmanned vehicle pilots. They are the first university to offer a four-year UAS Operations Bachelor of Science degree in the U. S. We have a close relationship with UND, and we can leverage a lot of their research. The President of UND established the Research Institute for Autonomous Systems on the campus. The top leaders understand the importance of unmanned aircraft.”

Nick explained, “UND offers specialized training and curriculum development for UAS crew training and certification that includes human factors, safety management systems. It has an indoor UAS flight laboratory, a Predator Reaper Integrated Networked Computer Environment (PRINCE) simulator, a Predator Mission Aircrew Training System (PMATS) simulator, as well as a UAS Scan Eagle aircraft and simulators.”

From the University of North Dakota Aerospace home page, I learned that UND specializes in Unmanned Aircraft Systems (UAS) research, education and training for private industry, government, UAS researchers and UND graduates. The UAS research collaboration includes:

  • “UND Institute for Unmanned and Autonomous Research (IUAR)
  • John D. Odegard School of Aerospace Sciences
    • Aviation, Atmospheric Sciences, Computer Sciences, Space Studies, Earth Systems Science & Policy
  • UND Aerospace Foundation
  • Northern Plains UAS Test Site (NP UAS TS)
  • UND School of Engineering
    • Unmanned Aircraft Systems Engineering Lab
    • Robotics and Intelligence Systems Lab
  • UND Department of Psychology
    • Northern Plains Center for Behavioral Research”

From all of this information, I could see that it was entirely appropriate for the UAS Test Site to be established in North Dakota near University of North Dakota.

I asked Nick about funding for the UAS Test, and he responded, “The state of North Dakota has appropriated dollars to support the test center. We also contract with government agencies such as NASA and the FAA as well as private companies to do services for which we are paid.”

Before ending our discussion, I asked Nick what were the future plans. He answered, “It depends on the needs of industry. The ability to fly aircraft beyond line of sight is very important, along with the ability to safely perform operations over populated cities. Right now, it is one pilot per aircraft, but it may be possible to have one pilot flying more than one unmanned vehicle.”

In retrospect, I realize that San Diego County would not have been a good choice for a FAA test site as we have too much restricted air restricted air space due to three military airports, San Diego’s Lindberg Field international airport, several small airports spread throughout the county, and the Tijuana, Mexico international airport right across the border. In addition, the population of San Diego County is 3.3 million, and there is only a small variation in temperature from winter to summer. There is no doubt in my mind now that North Dakota was a good choice for being selected as one of the six designated test sites.

Workshops for Warriors Holds Successful Inaugural Gala

Thursday, May 18th, 2017

On April 20, 2017, over 300 people attended the Workshops for Warriors Inaugural Gala that was held on the USS Midway Carrier Museum in San Diego, California. Former California Assembly member Nathan Fletcher, now a Professor of Practice in Political Science at the University of California, San Diego, was the Master of Ceremonies.

The WWII tribute trio, the American Bombshells, sang the opening national anthem and provided the entertainment later in the program. Founder and CEO of Workshops for Warriors, Hernán Luis y Prado, gave the welcoming remarks and showed the latest short video featuring testimonials by students on how WFW gives them a sense of potential again.

He said, “This evening’s celebration is in honor of the 388 Workshops for Warriors’ veterans, wounded warriors, and transitioning service members who have earned over 1,500 national recognized certifications. Our graduates work in advanced manufacturing centers throughout the U.S.A. and contribute $27 million to America’s economy every year. This number continues to grow. We are proud of their successes and contributions to our community, the manufacturing industry, and our nation as a whole.”

He briefly described how he and his wife, Rachel, had self-financed the training they began providing in their own garage in 2008 while Hernán was still in the service. He said that he heartsick at seeing too many veterans unable to transition successfully into civilian life and even commit suicide. When he ran into one of his buddies from his service in Iraq confined to a wheel chair after losing both his legs from an IED, he and his wife decided to invest all of their assets to expand into their first small building in early 2011. He had previously told me that they got their first outside funding from Goodrich Aerostructures, so that they were able to move into a building twice the size in October 2011.

Hernán said, “Many of you understand our Double Funnel dilemma…a waiting list of over 500 students but over 2,500 jobs available nationwide for each one of our graduates…The Challenge? There is only funding for 50 students every semester. Now is the time to take action to expand Workshops for Warriors with our $21 million capital campaign. This expansion would allow us to train ten times as many veterans and provide them with opportunities to serve America in a new role as they provide for their families and take part in the American dream.”

He extended his heartfelt thanks to Reliance Steel& Aluminum Company, and the Harriet E. Pfleger Foundation for being the Red, White and Blue sponsors for the evening. He said, “These contributors have been our “Champions,” whose dedication and continued support have made a meaningful and profound impact in helping Workshops for Warriors grow while changing the lives of veterans. For example, Reliance Steel provided funding to add 18 welding stations and add a new Computer Aided Design laboratory that allows an additional 18 CAD/CAM students every semester to receive our life changing training and certifications add several stations for CAD/CAM software training.”

He concluded his remarks saying, “I am extremely grateful to those of you who have chosen to take action. I am humbled by your commitment to our nation’s veterans and America’s manufacturing industry. In 150 years, people will look back on Workshops for Warriors as the birthplace of American’s advanced manufacturing renaissance. Thank you for supporting Workshops for Warriors.”

MC Fletcher then introduced Jim Hoffman, Executive V. P. and COO of Reliance Steel & Aluminum Company. He relayed the comments of President and CEO Gregg Mullins, who was unable to attend the event. He said, “Reliance Steel is a proud supporter of Workshops for Warriors, a nonprofit organization dedicated to providing fee training in welding, fabrication, CAD/CAM programming, and advanced machining to Veterans, Wounded Warriors and Active Duty personnel. Their mission is to equip the students with marketable skills and nationally recognized credentials so they can secure careers in manufacturing and achieve success in their civilian lives.”

He continued, “Workshops for Warriors is funded through private donations from individuals and companies like Reliance, and 83% of every dollar donated goes directly to the training programs. Over the years, Reliance has supported Workshops for Warriors by funding equipment purchases, forging partnerships with our industry peers, making donations, and hiring Workshops for Warriors graduate. We have held events among our employees to not only raise funds but increase awareness about the important work being done by Workshops for Warriors to serve a population that has so faithfully served our country. As they transition into the manufacturing sector careers, Workshops alumni continue to serve by contributing to our country’s economy.”

He concluded, “Workshops for Warriors’ Capital Campaign is underway, with a goal of raising $21 million to build a new facility that can accommodate ten times as many students as are currently enrolled. As the Capital Campaign Committee Chairman, President Gregg Mullins is personally calling on you for support. A great opportunity is here for us to give back to those who have gone above and beyond to protect us. Let’s do our part to help our men and women in uniform succeed and thrive.”

Next, Darnisha Hunter, Active Duty and Veterans Family Advocate from the Office of San Diego Mayor Kevin Faulconer’s office, read a proclamation in which April 20, 2017 was declared Workshops for Warriors’ Day in the City of San Diego.

This was followed by a short speech by alumnus Scott Leoncini, who had been a Marine. He said, “When I got out I didn’t know what I wanted to do. I met my amazing wife Michelle… [who] told me that I should go to school. Determined not to lose her, I did just that.” He worked in gun shops while going to college and finished college with a bachelor’s degree in criminal justice.

He said, “I went on a ride along one night with a local police department and decided that I needed to become a police officer…. I applied to almost all the agencies near my home, but only to end up with a stack of denial letters…I hit a huge wall, I was depressed, looking for any better paying job as I was making 10/hr as a security officer. ”

Then, he heard that a Marine friend of his was killed in a helicopter crash in Florida after just coming back from receiving the Silver Star for his actions in Afghanistan. Scott said, “It took me 6 years of struggle and Andy dying to realize that I needed to change my path, I needed to identify with something else…”

A few days later, he reconnected with some Marine friends, and one of them, Josh Garcia, “was enrolled at Workshops for Warriors at the time, and he told me about how Workshops helped him get into a welding career. Josh told me that they had a Machining program too. The only thing knew about machining is that it was the process used to make guns. I decided that’s what I would do because honestly, I didn’t know what else to do, this was my last effort. Not sure how I would end up, I took a leap of faith.”

Scott went to school in the day and worked nights at a local gun store as he had to work to support his family. He said, “We had a small class of about 10 students, a few of us were vets, and the rest were active duty. I loved working with vets and active duty marines again… All the guys in class had somehow found their way to Workshops… we all were struggling with transition but had the same goal…create a new identity…”

He graduated in spring 2015 with eight certifications in Mill, Lathe, Solidworks, and Mastercam and was offered a job as a Workshops for Warriors Teaching Assistant and be a part of the train-the-trainer program.

Scott said, “I found that I loved teaching and helping students get through the program…I love to come up with new ways of teaching material, and motivating students to push through when it gets hard. I am grateful for the Train-the-trainer program, and opportunity to help students. I am thankful to Hernan and Rachel for helping me discover my passion. To further my abilities, and to ensure that Workshops continues to be the greatest Advanced Manufacturing  school in America, I recently enrolled at Point Loma Nazarene University School of Education where I am earning a Master’s in Education Teaching and Learning  which will allow me to grow even more within Workshops for Warriors. The train-the-trainer program has given me a new path and allowed me to connect with the veteran community. I am helping other veterans not go through what I did when I got out of the military.”

After this inspiring testimonial, the American Bombshells performed while guests were invited to view and bid on the many silent auction items on display.

Afterward, Special Guest Speaker Donald “Doc” Ballard, Metal of Honor Recipient, gave his remarks. After a brief description of how he earned the Medal of Honor during the Korean War, I took note of the fact that he said, “Too many times, we preach to the choir of those who have served in the military and already have an appreciation for what veterans have done to serve their country. We are missing the mark; only 1% has served our country…The military is a family-owned business that we hand down from generation to generation. Not everyone can serve in the military, but we do have an obligation to this country to thank veterans for the freedom they fought for…We thank a teacher for our ability to read, but we can thank a veteran that we can read and write in English. We can thank veterans by supporting Workshops for Warriors so they can expand to other states. Everyone can serve the military by taking care of the people who are doing the job they can do or won’t do for whatever reason…”

The event closed with more entertainment from the American Bombshells while the guests whose bids won were notified and presented with their auction item.

During dinner, I asked the man sitting next to me why he supported WFW. Doug Davis, General Manager at Kearny Mesa Ford & KIA, said, “Workshops For Warriors is simply an amazing program that is helping Veterans make a living for the rest of their lives. All of us know when we have a skill in the work place, our individual self-esteem improves greatly, and we can go home to our families with a sense of accomplishment. Workshops teaches the manufacturing trade to our Veterans, and when they graduate with a welding or machinist certification, a job is waiting for them 100% of the time! That’s exactly what Workshops for Warriors does for our Veterans. I am lucky enough to support Workshops for Warriors through three channels:  personally, my dealership, Kearny Pearson Ford & KIA, and finally through the Ford Motor Company as Chairman of the San Diego Ford Dealers Ad Association Board in selecting recipients of charitable donations.”

Whether or not you have served in a branch of the military, you can help change the life of veterans and Wounded Warriors by support their training in manufacturing skills by donating to the Workshops for Warriors Capital Campaign.

MEPs are Essential to Rebuilding American Manufacturing Competitiveness

Tuesday, April 18th, 2017

Last month, President Trump submitted a “Skinny Budget” with the goal of removing some of the “fat” within Washington DC. Unfortunately, one of the programs eliminated in his budget is not “fat.” The Manufacturing Extension Partnership (MEP) is the only federally funded national network dedicated to serving small and medium-sized U. S. manufacturers. The MEP program was re-authorized by both Houses of Congress by unanimous consent earlier in January when the MEP program went back to 1:1 cost matching. The reality is that the MEP network is essential to helping manufacturers be competitive in the global marketplace and rebuilding American manufacturing. Eliminating the MEP program seems contradictory to President Trump’s focus on manufacturing.

The MEP website states, “Since 1988, the Hollings Manufacturing Extension Partnership (MEP) has worked to strengthen U.S. manufacturing. MEP is part of the National Institute of Standards and Technology (NIST), a U.S. Department of Commerce agency…MEP is built on a national system of centers located in all 50 states and Puerto Rico. “Each center is a partnership between the federal government and a variety of public or private entities, including state, university, and nonprofit organizations. This diverse network, with nearly 600 service locations, has close to 1,300 field staff serving as trusted business advisors and technical experts to assist manufacturers in communities across the country.”

This public-private partnership provides a high return on investment to taxpayers. “For every one dollar of federal investment, the MEP national network generates $17.9 in new sales growth for manufacturers and $27.0 in new client investment. This translates into $2.3 billion in new sales annually. And, for every $1,501 of federal investment, MEP creates or retains one manufacturing job.”

The top challenges reported to MEP by manufacturers are:

  • Cost Reduction 70%
  • Growth 54%
  • Employee Recruitment 47%
  • Product Development 45%

In FY 2016, the MEP national network interacted with 25,445 manufacturers and achieved these results through their wide range of services:

  • $9.3 Billion New and Retained Sales
  • 86,602 New and Retained Jobs
  • $3.5 Billion New Client Investments
  • $1.4 Billion $1.4 Billion Cost Savings

I have long been aware of the work of the California MEP, California Manufacturing Technology Consulting (CMTC), headed up by Jim Watson, but when I visited Cincinnati, Ohio last fall, I had the pleasure of meeting with Scott Broughton, Director of the Advantage Kentucky Alliance (Kentucky’s  MEP), and David Linger, President & CEO of TechSolve, one of the Ohio MEP affiliates.

I contacted all three for input for this article, and Scott Broughton was the first to respond. He said, “AKA has generated over $88 million in impacts with 50 clients working with over 1,300 employees in the past 12 months alone. We are currently working with small manufacturers in Eastern Kentucky, who used to work in the coal industry to identify, vet, and implement change allowing them to work in non-coal industries and helping them to be sustainable in the future. These companies have worked with other entities with mixed results. AKA’s programs are centered on AKA facilitators mentoring and training employees, allowing them to be the driver of change with continued support. This allows the employees to ‘learn by doing’ with the support and assistance of AKA’s specialists. AKA’s average engagements are over 12 months with monthly interactions allowing for sustainable support, change, and implementation.”

He added, “For every federal dollar spent, it has resulted in $170K in impacts in Kentucky! Specific impacts in the past 12 months are below and that does not include the 762 new jobs created/retained:

  • $9.9 million in new sales
  • $21.6 million in retained sales
  • $10.8 million in cost savings
  • $40.3 million in investments made”

Broughton provided me with case studies for six clients, which are too lengthy to cite in detail in this article. Three of the six received training in Lean manufacturing through AKA, two were helped to find new markets, and two were helped with new product development. Highlights of the results are:

  • Skillcraft Sheetmetal, Inc. – “a reduction in labor equating $27,000 in 2014 alone”
  • Post Glover Resistors – ” 12% reduction unnecessary Labor”
  • Outdoor Venture Corporation – “Increased sales by $500,000 and increased cost savings by $1 million”
  • Cumberland Mine Service, Inc. – “Uncovered 17 potential industries/business opportunities and 21 potential future customers”
  • RT Welding & Fabrication, Inc. – “Uncovered 21 potential industries/business opportunities other than mining and identified 13 potential revenue streams”
  • Taper Roller Bearings – “$10 Million in retained sales, $200,000 in cost savings, and $20,000 in new product development”

David Linger responded, “The Ohio Manufacturing Extension Partnership, located in Columbus, OH, provides technical services for small and medium-sized manufacturers to drive productivity, growth and global competitiveness; and can ultimately help Ohio’s manufacturers become more profitable and competitive. From October 2015 – September 2016, the Ohio Manufacturing Extension Partnership served 439 Manufacturers resulting in new and retained sales of   $277,900,000, created and retained 2,399 jobs, facilitated cost savings of over $41,700,000, and created new investments of $132,600,000.”

He commented, “An often overseen benefit of the relationship of a MEP and their regional clients is the two-way information exchange. That is, the MEP receives constant Voice Of the Customer information from the regional clients throughout the year. This allows the MEP to proactively develop new solution packages that meet those needs,  needs that are often unique to small and midsized manufacturing firms. This feedback loop drives the MEP to be current with the latest technology or methods and be an ongoing subject matter expert to push this new know-how back out to the manufacturing community. A few great examples of this are the work MEP’s are doing in regards to Cyber Security as it relates to manufacturing, Additive Manufacturing or 3D Printing, Data Analytics, and System Integration (Industrial Internet of Things, IIOT).”

Jim Watson responded, “Last year, CMTC was awarded a five-year agreement to be the California MEP. In 2016 CMTC served 1,065 small and medium-sized manufacturers, creating or retaining 8,575 high paying jobs statewide resulting in $169 million in cost savings, $647 million in total sales, and $305 million in total investment. For every manufacturing job, there are 3-4 full-time jobs created elsewhere in the United States to support manufacturers. Manufacturing is critical to the California economy, employing more than 1.2 million workers at more than 39,000 companies.”

He added, “CMTC’s services provide innovation, growth, technology and operational solutions that foster profitable growth for small manufacturers impacting personal income, tax revenues and the California economy. A study by the LAEDC Institute for Applied Economics indicated that the annual economic contribution from California MEP projects with customers surveyed in 2014 was an estimated $1.8 billion to California’s GDP and more than $450 million in federal, state and local tax revenues. The California MEP program is a valuable partner for manufacturers and generates a significant dividend for the State of California.”

There were four client case studies mentioned in their 2016 end of year report, which I have briefly summarized below:

Amflex Plastics – a woman-owned company making polyolefin co-polymer formulated plastic hoses and spiral hose equipment. Amflex needed help getting prepared to get their ISO 9001:2008 certification to retain current business and get new customers. After CMTC coaching, they passed their audit and got their certification, resulting in $675,000 in projected increased sales, $300,000 in retained sales, three new jobs, 10 jobs retained, and $209,000 in cost savings.

Summertree Interiors is a minority owned business that builds finely crafted baby and children’s furniture. The company needed help reducing lead times and improving on-time delivery. CMTC provided them with Lean manufacturing training, which resulted in:

  • $400,000 in increased sales
  • 1,000,000 in retained sales
  • 6 jobs created
  • 12 jobs retained
  • $250,000 in cost savings
  • $115,000 in capital investments

Space Systems Loral is a manufacturer of communications satellites and satellite systems. Because former customers are now making their own satellites, “SSL needed programs to reduce costs and lead times as well as provide an in-house team to lead and implement their continuous improvement philosophy. CMTC provided Yellow Belt Lean training and a “Train the Trainer” program, which resulted in $7,500,000 in retained sales, 17 jobs retained, $1,861,000 of cost savings, and $500,000 in capital investment.

OHIO Design is a builder of custom, made-to-order, modern furniture and interiors. The company needed help with their manufacturing processes, finding qualified workers, and access to capital. CEO coaching helped OHIO to understand and implement business metrics a cost structure to track their manufacturing expenses, and a continuous improvement program to focus on solutions to fix problems. As a result, they experienced $500,000 in increased sales, retained 7 jobs, achieved $150,000 in cost savings, and made $55,999 in capital investment.

One of the companies I represent as a manufacturers’ sales rep has been a repeat client of CMTC. President Steve Cozzetto of Century Rubber Company wrote me, “As the business climate has become more demanding, CMTC has been instrumental in providing the training that we need to remain competitive. In the past 10 years, we have used their resources and expertise to develop our Lean Manufacturing procedures, to upgrade our marketing methods, and most recently to take our quality program from ISO: 9001 and prepare us for our AS9100D certification which should occur this year. As a small company, the variety of programs offered by CMTC makes it possible to accomplish goals that would otherwise be difficult to achieve.”

These success stories illustrate why the nationwide Manufacturing Extension Partnership network is essential to the growth of the United States economy. When the President submits his budget, it is the first step in the long process that results in a federal budget. No President’s budget ever gets approved without substantial amendment by Congress, and Congress has the final say on governmental spending. To support the MEP program, you should contact your Congressional Representative to urge them to keep funding for the MEP program in the federal budget.

SME and NASA’s HUNCH Partner to Engage Youth in Advanced Manufacturing

Tuesday, April 11th, 2017

With thousands of “Baby Boomers” retiring in the next decade and few new employees getting into manufacturing, manufacturers are worried about their futures. The industry is dealing with a severe shortage of workers equipped with the knowledge and skills needed to function in advanced manufacturing workplaces. Thankfully, schools are finally catching on that they are the first step to showing students the opportunities in advanced manufacturing.

SME has been working for years to bring back manufacturing education during a time when there is a big shortage of in-demand skilled talent in positions, such as mechatronics, programming, welding, CNC machining, metrology and more.

To help close the skills gap the “SME Education Foundation announced a new partnership with NASA’s agency-wide HUNCH (High School Students United with NASA to Create Hardware) program, to get more youth engaged in advanced manufacturing and ultimately encourage them to consider and pursue long-term careers in the industry.” This collaboration between HUNCH and the Foundation’s Partnership Response In Manufacturing Education (PRIME) initiative will give high school students an opportunity to build actual hardware that NASA astronauts, scientists, and engineers would use in their training programs and at the International Space Station (ISS).

Today, we have an estimated 600,000 jobs going unfilled because of the skills gap, but this could grow to two million by 2025 as “Baby Boomers” retire. This new collaboration will attract and introduce more high school students to career opportunities in the industry and prepare them to become the next generation workforce for jobs that are in high demand.

“By combining our PRIME network with NASA’s HUNCH program and working together to further expand the number of schools in the combined network, we can provide more students with access to a STEM and manufacturing focused education using hands-on learning experiences,” said Brian Glowiak, vice president of the SME Education Foundation. “Through this partnership we are motivating youth to consider careers in manufacturing and preparing them with the skill sets and knowledge to succeed.”

When I interviewed Brian last week to find out more about the partnership, he said, “PRIME connects regional manufacturers with local high schools to establish or build exemplary manufacturing education programs that prepare students for skilled careers in their communities. We work with schools to provide industry-driven training for teachers as well as curriculum for the students, while giving teachers and students access to real-world manufacturing equipment and resources.

This process begins by meeting with local manufacturers to gain an understanding of the current and future skills needed by their technical workforce and then working with the administrators and educators of the local school system to help develop a robust and sustainable hands-on training program for students. This program also provides students with opportunities to acquire industry recognized credentials and to benefit from job shadowing, internship and apprenticeship experiences.”

He explained, “Through the HUNCH program, PRIME students will have the opportunity to design and build actual hardware for in-flight astronaut training or for use aboard the International Space Station, bringing real-world project based learning experiences to the classroom. Alternately, HUNCH schools will now be part of the PRIME network, having access to SME student memberships, mentoring programs, and additional technical resources.”

When I asked when the SME Prime schools would start the program, he said, “We presently have 15 of our PRIME schools signed up for projects and eight have already received assignments and materials from NASA. In addition, SME is working with two HUNCH schools in Houston to start to integrate NASA’s HUNCH schools into our PRIME program. Ultimately, we have an opportunity to integrate 105 schools in this collaborative program, with 41 PRIME schools and 64 HUNCH schools. Simultaneously, we are working together to expand this network by adding more schools to the combined PRIME and HUNCH program in order to recruit and prepare more students for careers in engineering and manufacturing.”

He explained, “Manufacturing offers incredible and rewarding career opportunities with strong potential for advancement. Through HUNCH and PRIME we are not only building students’ awareness of these opportunities but also providing them with the skills and hands-on training needed for their future success. Moreover, giving students a chance to design and fabricate hardware for NASA and the potential opportunity to physically attach their signature to an item that could be used aboard the International Space Station is truly inspiring, both to the students and their teachers.”

I learned more about HUNCH from their website, which states that “the idea of HUNCH started when Stacy Hale, the JSC HUNCH project manager, had the innovative idea that maybe high school students could build cost-effective hardware that was needed to help train the ISS astronauts. Bob Zeek at MSFC [Marshall Space Flight Center] and Hale decided to test the feasibility of this idea. Many were skeptical about this idea, but because of the hard work and dedication of Hale and Zeek, HUNCH quickly expanded from 3 schools to numerous schools, in various states; the unique idea of HUNCH was quickly producing extremely positive results to all involved.”

In addition, the website states, “The NASA HUNCH team at JSC [Johnson Space Center]consists of four individuals who visit schools in a four state area that produce training hardware, software, videos and flight hardware and software for NASA. The HUNCH team at Marshall Space Flight Center consists of Bob Zeek, Kriss Hougland and others that visit schools within a five state area.

Under the mentorship of HUNCH personnel last year, “the schools produced stowage lockers, cargo transfer bags, 3 minute educational videos, and experiments proposed to fly on the ISS. They have designed and fabricated a disposable, collapsible, glove box, an organizer for crew quarters on the ISS, as well as black boxes and an EPM Rack. Over the past 8 years, since the beginning of HUNCH in 2003, hundreds of items for NASA have been produced by hundreds of students.”

When I interviewed Blake Ratcliff, NASA’s HUNCH Program Manager, last week, he said that he has been with the program about two years at the Johnson Space Center in Houston. He said, “Stacy Hale is still a Project Manager, and Bob Zeek is a mentor for schools in Huntsville, AL.”

Ratcliff said, “We have gone from making training mock ups to making actual tools and other hardware items that the astronauts use at the International Space Station and when they go on space walks. The students have also made metal lockers in which the scientific payloads are put for the research the astronauts and scientists conduct on the space station.”

He explained, “It is a project based program. We give schools real NASA projects that meet the needs and provide them the materials and instructions they need to complete the work. Quality is the most important aspect of the work, and the schools have done an outstanding job. Every year in April and May, we have Recognition Ceremonies for all the students and teachers that have participated in HUNCH at MSFC and JSC. The students present their projects during the HUNCH Ceremony where some projects are selected to be used in NASA systems and on board the ISS. Every year the number of participants continues to grow as well as the quality, quantity, and diversity of the products that students fabricate.”

When I asked if every school has a project, he said, “There is a wide range of build-to-print, design and prototype projects, but they also have software, communications, and culinary projects. We have a competition every year where students can come up with a new food for the astronauts. This year it is for a new dessert. The winner’s food gets flown up to the space station.”

I told him that I am surprised I had not heard about their program previously because I keep up with news about STEM education programs to attract the next generation of manufacturing workers. He said, “While we get a fair amount of press, it is mostly in local news outlets for the cities where our HUNCH schools are located.”

He added, “There are a couple of people working to do a documentary on HUNCH. We are growing so fast that we don’t need a lot of attention. It is good to publicize what we are doing, but we have been growing by word of mouth and don’t need to advertise for growth. It’s going to take a couple of years to integrate all of the PRIME schools into our program, so we won’t be actively seeking new schools for awhile.”

I asked if they have any schools in California. He said, “We just started in the Bay area and are about to sign up several schools. I asked how a school could get involved, and he said. “Go to the website and apply for a project. Then, one of our mentors will visit the school and determine if it would be a good fit and if they have the facilities to complete a project.”

Both the SME PRIME initiative and NASA’s HUNCH program are promoting student interest in STEM (Science, Technology, Engineering, and Mathematics.) Another benefit is that while students are building hardware and doing other projects for NASA, they are also building their interest as engineers, researchers, scientists and maybe even astronauts, as well as their self-esteem. HUNCH is a win-win innovative solution for inspiring the next generation of researchers, scientists, engineers, and manufacturing workers while providing cost-effective hardware for NASA.

Why Universities are Important to Rebuilding U.S. Manufacturing

Wednesday, March 8th, 2017

The fact that more and more manufacturers are returning manufacturing to the U. S. or keeping manufacturing here instead of moving to Mexico or Asia is good news, but on February 23, 2017, President Trump met with two dozen manufacturing CEOs at the White House.

While they “declared their collective commitment to restoring factory jobs lost to foreign competition,” some of the CEOs “suggested that there were still plenty of openings for U.S. factory jobs but too few qualified people to fill them. They urged the White House to support vocational training for the high-tech skills that today’s manufacturers increasingly require…The jobs are there, but the skills are not,” one executive said during meetings with White House officials that preceded a session with the president.”

“We were challenged by the president to … come up with a program to make sure the American worker is trained for the manufacturing jobs of tomorrow,” Reed Cordish, a White House official, said after Thursday’s meetings.”

Training today’s workers in the skills they will need for the jobs of the future in manufacturing is important, but we also need to educate the next generation of manufacturing workers. We need more engineers to rebuild American manufacturing, and universities play a key role in providing this education.

Last week, I had the opportunity to interview Dr. David B. Williams, Executive Dean of the Professional Colleges and Dean of The College of Engineering at The Ohio State University, located in Columbus, Ohio, to discuss the role universities are playing in rebuilding manufacturing and educating the next generation of manufacturing workers.

His official biography on the University website states, “Williams is involved in many university-industry economic development partnerships. He serves on the boards of ASM International, the State of Ohio’s Third Frontier Advisory Board, Lightweight Innovations for Tomorrow (formerly American Lightweight Materials Manufacturing Innovation Institute), Columbus 2020, Metro Early College STEM School, EWI, Ohio Aerospace & Aviation Council, and the Transportation Research Center.”

Dean Williams said, “Ohio State University is a manufacturing R&D and training Powerhouse. Manufacturing is a critical part of the state of Ohio’s economy and accounts for 17 percent of the state’s GPD. It is also the state’s largest industry sector. We have partnered with over two hundred manufacturers in developing and funding research that can be used in their industries. It is a very important part of the college. We use the talent of our professors, graduate, and undergrad students and technology. OSU is committed to innovating applied research for product design, technology commercialization, and manufacturing for industry through its programs.”

Dean Williams mentioned that on October 1, 2016 the Center for Design and Manufacturing Excellence (CDME) was designated as a new Manufacturing Extension Partnership (MEP) affiliate organization, and that Ohio State’s MEP program will work directly with manufacturers to identify and execute growth strategies. Afterward, I was provided with information that states: “The Ohio State University’s Center for Design and Manufacturing Excellence (CDME) will receive up to $8.6 million in federal, state and industry funding over the next five years to lead a program facilitating growth of small- and mid-sized manufacturing companies in the 15 county central Ohio region. The program is funded by the National Institute of Standards and Technologies, with matching funds provided by the Ohio Development Services Agency, which administers operations through seven regional affiliates.”

I found the information about Central Ohio’s manufacturing interesting very interesting: “The central Ohio manufacturing economy is comprised of approximately 3,350 self-identified manufacturing companies across the 15 Central Ohio counties. More than 90 percent of them have 50 or fewer employees. Many small and medium-sized manufacturing companies are aware of the growth challenges they face, but still require assistance to overcome them.” The size of companies is similar to San Diego County, in which 97% have fewer than 50 employees.

Dean Williams told me that the Center’s Executive Director, John Bair, is a successful entrepreneur, not an academic, and added that they had invited him to head up the Center after he had sold his company and semi-retired.”

He added, “We invite manufacturers to bring their problems to us, and then we put together teams of experts to work with them to solve these problems. The company gets to keep any of the Intellectual Property developed in the process of working together.

Dean Williams also said that Ohio State is home to the Ohio Manufacturing Institute, which “serves as a public policy mechanism for manufacturing within the state and nationally that facilitates the use of available technical resources for economic development.” He said, “OMI acts like a clearinghouse for Ohio to provide manufacturers with the tools they need to collaborate with a statewide network of technical resources. Its state and national policy recommendations reflect a thoughtful response to industry problems and issues OMI also engages in outreach programs that support manufacturers—from small to medium-size firms to original equipment manufacturers—by aligning with industries, academic institutions, technology support organizations and government.”

As an example, Dean Williams said, “We have had a long relationship with Honda since they moved to Marysville in 1978, which is about 45 miles northwest of here. About five years ago, we started partnering with Honda to help them develop solutions to some of their manufacturing problems. Their high-end NSX brand is currently made with advanced engineered materials and is produced at only a rate of 7-8 vehicles per day. They want to produce the Accord using the same materials and technology. At the Center, we have put together teams of experts to solve this problem.”

Dean Williams said, “Hundreds of students study abroad for part of the education. Their experience abroad strengthens their performance and helps train the people necessary to maintain and repair the machines. They are still lots of manufacturers in Ohio. We graduate about 2,000 engineers per year and about half of them stay in Ohio. There are 14 engineering colleges in Ohio, and we have the educational base to drive the 21st Century manufacturing.” Since the U.S. is only graduating about 50,000 engineers a year compared to the estimated 500,000 per year in China, Ohio State University is doing more than their fair share.

With regard to the next generation of manufacturing workers, he said, “A big part of the problem is that parents think manufacturing is like what it was in the past, so they don’t want their children to get involved in manufacturing. I was at SpaceX recently and met the chief welding engineer, and she was a graduate of Ohio State with a degree in welding. Young men and women can even get a Masters Degree in ‘joining’ through Ohio State’s online welding engineering master’s program: https://online.osu.edu/program/mswe. This discipline includes a deep understanding of the properties and testing of materials that can be welded.”

He said, “We are part of seven of the National Networks of Manufacturing Innovation (NNMIs). One of them is LIFT, which I looked up and found that it is “an industry-led, government funded consortium. By reimagining processes and procedures, the highly linked and leveraged network is facilitating technology transfer into supply chain companies and empowering the lightweight metals workforce.” Ohio State University, the University of Michigan in Detroit and EWI are the founding members of this NNMI consortium that was established February 25, 2014 following a competitive process led by the U.S. Department of Defense under the Lightweight and Modern Metals Manufacturing Innovation (LM3I).

Dean Williams stated, “We also partner with the community colleges under an economic grant program to develop the existing workforce through continuing education. Overall, through a variety of programs and camps, we interact with 70-80 high schools on a semi-regular basis. One program is Hometown Ambassadors, where students talk to younger students at their High School alma maters to help them understand the opportunities in manufacturing today.”

Since Dean Williams is on the board of ASM International, it was fitting that Ohio State University’s Department of Materials Science and Engineering hosted the ASM Education Foundation’s Materials Camps for two years (2013 and 2015). These one-week training camps provide the opportunity for high-school teachers to work hands-on with metals, ceramics, polymers and composites and learn how to incorporate these activities and demos into their science classes.

The Lightweight Innovations for Tomorrow (LIFT) was a partner with ASM International and the ASM Educational Foundation for the 2015 camp. “Curriculum content on the use of lightweight metals and new technologies [were] integrated into the programs at 45 camps around the nation…designed to enrich, stimulate and enhance the technical competence and teaching skills of middle and high school STEM teachers.”

Summer camps for teachers and students are important to attracting the next generation of manufacturing workers. More universities need to get involved with the summer camps and other programs of ASM International, the National Association of Manufacturers’ Manufacturing Institute “Dream it. Do it” program, and Project Lead the Way.

Workshops for Warriors Aims to go National

Tuesday, January 10th, 2017

On December 9, 2016, I revisited Workshops for Warriors to find out what had been accomplished in the past four years since I had toured the facility during their first Manufacturing Day on October 5, 2012 and met retired naval officer Hernán Luis y Prado, founder and president of Workshops for Warriors (WFW).

The article  I wrote in 2012 described how Hernán and his wife had self-financed the training they began providing in their own garage while Hernán was still in the service and how they moved into their first small building in 2011. Their first outside funding came from Goodrich Aerostructures, in Chula Vista, California, and they moved into a building twice the size in October 2011. Over the years, Goodrich Aerostructures has donated nearly $1 million in equipment and materials to help WFW build out its class offerings.

Hernán spent over an hour with me on this visit and told me that in January 2016, WFW became approved as a licensed school in California and is the only accredited school training veterans in the manufacturing skills of machining and welding. He said, “Workshops for Warriors (WFW) is a Board-governed 501 (c) 3 nonprofit organization that provides quality hands-on training, accredited STEM educational programs, and opportunities to earn third party nationally recognized credentials to enable Veterans, Wounded Warriors, and Transitioning Service Members to be successfully trained and placed in their chosen advanced manufacturing career field. Through the generosity of private and corporate donations, WFW is able to provide training at no cost to the Veterans, so that they can focus on school and not survival.”

The WFW website states that they address two challenges: “The need for lifelong employment among Veterans transitioning from the service, and the limited pipeline of skilled workers in the advanced manufacturing industry. According to a 2015 Ford Foundation report, more than 2.3 million advanced manufacturing jobs in the United States are unfilled due to lack of skilled labor.” Their current 10,000 square feet building has 11 CNC machines, 18 welding booths, capable of handling 120 graduates per year. Their goal is to have 45,000 square feet with 40 CNC machines and 40 welding booths, capable of handling 450+ graduates per year.

I asked if their curriculum has expanded since 2012, and he said that WFW teaches:

  • Computer-Aided Design
  • Computer-Aided Manufacturing
  • Machinery Repair and Maintenance
  • CNC and manual Machining and Turning
  • Welding and Fabrication

He said that students are now able to earn nationally recognized portable credentials from The American Welding Society (AWS), the National Institute for Metalworking Skills (NIMS), Mastercam University,

SolidWorks, Immerse2Learn, and the National Coalition of Certification Centers (NC3).

According to the website, Workshops for Warriors graduates are now employed by such companies as:  BAE Systems, Barrett, Benchmade, Cubic Corporation, Fox Fury Lighting Solutions, Gates Underwater Products, Gehring, General Dynamics NASSCO, Rogue Fitness, SpaceX, SPAWAR, and UTC Aerospace Systems.

Hernán said, “Workshops for Warriors is already making significant, lasting improvements, and we are building a better, stronger future for veterans, their families, and the U.S. economy by:

  • Reducing unemployment for veterans.
  • Meeting U.S. market demand for more trained, certified manufacturing workers.
  • Enhancing economic stability in the San Diego region.
  • Supporting growth of the U.S. manufacturing sector.
  • Helping more veterans successfully transition to civilian life—with hope and a renewed purpose through a secure civilian career path.”

When I asked what his biggest challenge is, he said reliable funding is number one because:

  • Students cannot use GI bill benefits
  • Classes are free to Veterans
  • Facility costs are $200,000 per month
  • Average cost per student per semester is $20,268
  • With a needs based living stipend provided, student cost per semester is $30,268

He said it is a five step process to receive Federal funding, and they are in the middle of step 4 (Operate as a licensed school for 2 years and pass BPPE audit). They hope to be able to accept Federal funding by April 2019.

I asked how they are funded now, and he responded, “We keep costs and overhead low so that 83% of our donations go straight to training veterans. We have machinery donated or on loan to us. We receive donated or discounted materials (computers, software, metals, tools), and we have time donated by some of our instructors and staff. We collaborate with other nonprofits, and we receive private donations from manufacturing industry leaders and foundations, as well as individual financial donations. We have seven members on our Board of Directors and twenty-seven on our Board of Advisors.”

The list of donors and sponsors has grown to such a long list of companies and organizations that I would not do justice to all of the partners to provide only a partial list. It would take up a whole page to list just the companies and organizations that have donated over $10,000 since 2014.

I asked Hernán what his plans for expansion are, and he said, “Workshops for Warriors is a nationally viable advanced manufacturing training pipeline that is ready to be scaled and replicated across America. Once the GI Bill is accepted at WFW, we will be self-sustaining and ready for expansion.” He added, “WFW has proven metrics and data for investors since 2011. We have audited financials since 2012 that are available on our website.”

Hernán introduced me to some of their new staff:  Amanda DiSilvestro, Marketing Manager, and John Jones, the new Director of Development. Hernán said, “John served with me in Iraq, and when I saw him years later in a wheel chair and learned that he lost both legs after I had returned home from Iraq, John was one of the reasons that I started Workshops for Warriors. We are honored to have him on our team.”

John said, “I had to retire from military service due to the injuries that I sustained during my second deployment. I worked in the nonprofit arena for ten years, ranging from Major Gifts Officer, Executive Director, and National Spokesperson for various military charities.  I wanted to work with an organization that had a more direct impact on the lives of veterans and chose to join Workshops for Warriors.”

John explained that they have begun a two year Capital Campaign to raise $21 million to expand nationally. He said, “We have raised 18% of our goal. Phase 1 of building our first of three buildings is scheduled to be completed by fall 2017. Our current San Diego headquarters will become a Train-the-Trainer and Veteran Incubator facility. Our plan is to create 103 WFW facilities across the USA located in areas with high military transition populations and advanced manufacturing training nodes. Our formal Capital Campaign will be launched at a special gala on April 20th on the U.S.S. Midway.”

He said, “Our program is called Rebuilding America’s Advanced Manufacturing Force. The purpose is to eliminate Veteran unemployment and underemployment, replenish the lack of talent pipeline for the manufacturing industry, and make a social and economic impact (individual to family to community to the Nation.)”

The national program will include:

  • Train-the-Trainer Blueprint
  • Sustainable Model Development
  • Strategic Partnership for National Footprint
  • Tuition/Scholarships
  • Staff & Top-Tier Teachers
  • Job Counseling & Placement
  • Land acquisition
  • Equipment, furniture & fixtures
  • New and renovated construction

Hernán told me that they have several short testimonials on their website from some of their graduates, but he showed me a video by Scott Leoncini and his wife about the impact on their family from graduating from WFW and becoming an instructor, which can be viewed here.

Before I left, I was invited to attend their Fall Graduation Ceremony event for machinists and welders the next week on Friday, December 16, 2016, which I did.

At the ceremony, Hernán said that they had 36 Veterans, Wounded Warriors, and Transitioning Service Members graduate from with nationally recognized credentials from the above-mentioned organizations. Each of the graduates was introduced as they came forward to receive their certificates. After this ceremony, Workshops for Warriors has now trained 338 with a combined 1,400 credentials. A video of the graduation ceremony is available here.

At the graduation ceremony, Summer Jamison, Market Director Executive Director of J.P. Morgan Chase & Co., announced that they were donating $75,000 to WFW toward their Capital Campaign.

Also, Tiffany Rau, Public and Government Relations Manager, Southern California, presented Workshops for Warriors with a $40,000 grant from the Tesoro Foundation at the graduation ceremony. The funds will be used to help the school purchase a new Haas Automation Computer Numeric Controlled (CNC) Mill VF-2, a piece of equipment that supports hands-on learning of CNC machining.

The featured speaker at the ceremony was Ira E Friedman, Education Manager, Precision Tools, for The L.S. Starrett Company, a long-time sponsor and donor to WFW. I was so inspired by his speech that I requested a written transcription and feel compelled to quote a few excerpts. Mr. Friedman said, “Suffice it to say that you will be honored all the days of your life for your service. This investment that you have made in yourselves at Workshop for Warriors will change your lives and the lives of your families and friends forever. I would like to ask you all one question today. What contributions will you make to humanity and how will you help to change this world as a result of your experiences at Workshops for Warriors? To reach your full potential, you will need to have good friends, mentors and especially teachers. This select group of people will prove to be your gyroscopes, your guidance system and when you look back over your shoulder, your life’s treasures!”

After giving good advice about being a mentor, a friend, and contributing member of society, he shared his personal story of how his elementary school teacher mentored him and changed his life. He was nearsighted, had a lisp, and was severely behind in reading and writing. Instead of having to write a story about a canoe, his teacher instructed him and helped him build a 1/4 model of a canoe as his assignment. When it was a success, he realized that he wasn’t “dumb” after all. His teacher helped him get his eyes tested to get glasses and therapy to eliminate his lisp. He went on to being successful in Junior High and High School, even captaining the Wrestling Team. He went on to college and was one of 28 students selected for a full ride to Woods Hole Oceanographic Institute.

In conclusion, he said, “Mr. Jenkins saved my life! This one individual invested in me and was the catalytic ingredient to my success in life. I have gone on to become a productive member of society, (married my childhood sweetheart 50 years ago) and most of all started to give back the precious gift that was given to me so many years ago, that of becoming a Mentor and Teacher. As I fade into the twilight of my career in Metrology some 64 years later, I owe the magic ingredient to Mr. Jenkins.

You see I had the fuel within me all along, he found the spark to ignite it. Finally, I will charge you all today with this one request. Whether you become business owners, NASCAR builders or a Metrology nerd like me; Teach Someone, Mentor Someone-Anyone. Do what Hernán and Workshops for Warriors has done for you and what Mr. Jenkins did for me – change the world!”

 

You can help change the world by donating to the Workshops for Warriors Capital Campaign.

ToolingU-SME Report Reveals Manufacturers Are Not Addressing Skills Gap

Wednesday, December 14th, 2016

In 2011, I attended the imX Expo (interactive manufacturing eXperience) in Las Vegas when Tooling U-SME ” announced their Mission Critical: Workforce 2021 initiative and “sounded the alarm that the future success of manufacturing is at risk by the end of the decade if industry does not address the growing skills gap.” The event was sponsored by SME (formerly the Society of Manufacturing Engineers) and the American Machine Tool Distributors’ Association (AMTDA).

At that event, Tooling U-SME, “the world’s leading provider of training and workforce development solutions for manufacturing companies and educational institutions,” introduced a free one-of-a-kind “Workforce 2021 Assessment” tool for companies to use to assess and gauge their company’s performance because they had identified that there would be a critical shortage of skilled workers by 2021 that would threaten the future of manufacturing in America. “By answering a short series of questions about a company’s knowledge retention, readiness of future skill requirements, and the status of employee development programs, a company is able to assess their ability to meet current and future workforce challenges.”

In a September 5, 2016 commentary in The Hill contributor Grant Phillips wrote that the National Association of Manufacturers found there are “600,000 unfilled jobs in manufacturing primarily due to a lack of skilled labor. It is this skills mismatch that plagues the US labor market…”

On September 8, 2016, ToolingU-SME, released a report that showed the progress towards achieving the goal of the Mission Critical: Workforce 2021. Based on five years of insights from the Workforce 2021 Assessment tool, the report states, “the results are not encouraging. Responses show there has been little advancement. While it’s not too late, companies must take action now to ensure a healthier next decade.” The report quotes from report, “The Skills Gap in US Manufacturing: 2015 and Beyond” by Deloitte and The Manufacturing Institute, which states, “Over the next decade, nearly 3.5 million manufacturing jobs will likely need to be filled. The skills gap is expected to result in 2 million of those jobs remaining unfilled.”

ToolingU-SME Vice President Jeannine Kunz wrote in the cover letter, “only a very small number of worldclass organizations are prepared for the extreme talent gap predicted by the year 2021. Some of these companies started planning years ago to address the coming labor shortage. Others were forced to take reactionary steps when faced with a shrinking employee pool. Regardless, they started formal training programs, introduced apprenticeships, built relationships with educators and more…At Tooling U-SME, we are concerned that more manufacturers aren’t taking action since this has a big impact on the long-term health and competitiveness of the industry as a whole. There is a false sense of security among many manufacturers who are not recognizing these future challenges or investing in the development of their workforce today.”

The companies that responded to the survey fall into five categories:  procrastinator, strategist, role model, and visionary.

The procrastinators nearly make up the majority of the respondents because 49% said that “their company has not begun assessing their manufacturing employee’s current skills against skills they will require in the future.” In fact, only “1 out of 20 (5%) acknowledge conducting a complete assessment of all staff.” Since “nearly 9 out of 10 respondents (88%) said their company is having problems finding skilled works in manufacturing,” you would think there would be more urgency to address this problem. This problem will only get worse because “14% of respondents say they will lose a full quarter (25%) or more of their workforce to retirements in the next five years.”

The highlights of the report are:

  • “Key findings from responses to the survey from manufacturers of all sizes
  • Insights on business pains, such as hiring needs, training resources, mentoring and talent development
  • Best practices to immediately start ensuring your workforce is ready for the next decade”

The key findings are:

  • “Less than one-third (29%) of respondents would characterize their company’s talent development as good or excellent”
  • “30% say their company has no community involvement (internships, co-op, etc) to help develop the proper skills of their incoming workers.”
  • “54% don’t budget for employee development”
  • “33% say their job-related training options are minimal”
  • “88% say their company is below average when it comes to offering outside resources to upgrade the skill sets of employees”

While 74% agree that training needs in the organization impact a wide range of levels throughout the company…3 out of 4 (75%) say their company does not offer a structured training program on manufacturing skills. In addition, “less than half (45%) say their company has personnel designated to manage training and employee development.”

The report identifies issues related to the skills gap that need to be addressed immediately:

  1. Incoming employees — finding them
  2. Incoming employees — training them
  3. Incumbent workers — upgrading their skills to keep up with changing technology

With regard to finding manufacturing employees, I commented that we need a national manufacturing database of skilled workers when I gave my presentation on how to solve the skills shortage to the Cincinnati Chamber of Commerce. Many workers that have been laid off due to transferring manufacturing offshore or plant closures have no idea where to go to find a new job in manufacturing. They take lower-paying jobs outside of manufacturing because they can’t uproot their family on the chance they could find a job at a manufacturer in another city.

The ToolingU-SME report urges manufacturing to establish training programs for both incoming workers and incumbent workers to upgrade their skills. The report identifies the following six steps for companies to take to get started immediately:

  1. “Build a business case for learning with senior management. Involve the right stakeholders in discussions and tie learning to performance so you can measure the results later. It is important to set expectations, get buy in and gather support for the program early on.
  2. Define and update your job roles with the required knowledge, skills and abilities needed to build strong performance on the job. This competency-based learning approach will lead to the positive return on investment (ROI) your stakeholders expect.
  3. Build career progressive models, showing growth from entry level to more senior levels. This modeling effort will improve employee engagement and retention, and allow the alignment of skills to pay.
  4. Benchmark incumbent employee competencies through knowledge and skills-based assessments to determine gaps in performance and build a training strategy to address them.
  5. Design a custom competency-based training curriculum using blended learning that consists of online and on-the-job training as well as other performance support.
  6. Ensure performance standards are measurable and trackable. These standards will validate you ROI investment.”

What struck me is that all of these steps are integral to a company becoming a Lean Company. They are nearly identical to the requirements of “Talent Development” that are incorporated into the journey of transforming a company into a Lean company. It would appear that from this survey that the majority of manufacturers have not begun their journey to becoming even a Lean manufacturer, much less a Lean Company.

My recommendation is to start by using the free Assessment tool of ToolingU-SME. Then you can decide what steps to take next. If your workers need specific manufacturing skills certification, then check out the classes offered by ToolingU-SME, either online or on-site.

Another source for training is the Manufacturing Extension Partnership Program (MEP), which is “a national network with hundreds of specialists who understand the needs of America’s small manufacturers. The nationwide network consists of manufacturing extension partnership centers located in all 50 states and Puerto Rico. MEP provides companies with services and access to public and private resources to enhance growth, improve productivity, reduce costs, and expand capacity.” Locate your nearest MEP here. The MEPs have a variety of training programs that are available at reduced cost to manufacturers. The California Manufacturing Technology Consulting (CMTC) is the designated MEP for California, and they offer training in Lean manufacturing and many other subjects that would incorporate the above steps.

In California, companies can apply directly for a training grant from the Employment Training Panel (ETP) to help defray the cos of training or they can join an active ETP Multiple Employer Contract (MEC).

Many community college systems around the country offer training in specific manufacturing skills. California also has nine Centers for Applied Competitive Technology funded by the Chancellor’s Office of the Community College system, which provides training in specific manufacturing skills as well as Lean Manufacturing.

A number of community colleges actually use the ToolingU-SME courses instead of developing their own curriculum. I have discussed some of the training offered at community colleges in California and other states in previous articles I have written. You can peruse these articles under the Training and Workforce Development categories on my website:  www.savingusmanufacturing.com.

As more manufacturing is reshored to America, it will be even more critical to have the skilled workers we need to make American manufacturing great again. Do not procrastinate any longer on addressing this important problem.

Wednesday, August 31st, 2016

In February 2015, the Brookings Institute released the report, “America’s Advanced Industries:  What they are, where they are, and why they matter.” The authors of the report identified 50 industries that constitute the advanced industries sector, of which 35 are related to manufacturing, 12 to services, and three to energy. The report states, “As of 2013, the nation’s 50 advanced industries…employed 12.3 million U.S. workers. That amounts to about 9 percent of total U.S. employment. And yet, even with this modest employment base, U.S. advanced industries produce $2.7 trillion in value added annually—17 percent of all U.S. gross domestic product (GDP).”

Another benefit of these advanced industries is: “In 2013, the average advanced industries worker earned $90,000 in total compensation, nearly twice as much as the average worker outside of the sector. Over time, absolute earnings in advanced industries grew by 63 percent from 1975 to 2013, after adjusting for inflation.”

Number two of the report’s recommendations for our nation’s private and public sector was:  “Recharge the skills pipeline.” While everyone agrees that filling the pipeline at an early age is essential to increasing the numbers, achieving this goal has been frustrating.

A number of organizations have been working to fill the skills pipeline by developing the next generation of manufacturing workers. For many years, the SME Education Foundation has been committed to advancing the manufacturing industry and stimulating the interest of youth in STEM education and manufacturing careers. “The Foundation invests in students through a broad array of scholarship programs and makes a direct impact on manufacturing education through their Partnership Response in Manufacturing Education (PRIME®) program. PRIME provides high school students with opportunities to pursue rewarding careers as engineers and technologists; this includes vocations involving mechatronics, welding, CNC programming, robotics, and much more.”

The National Association of Manufacturers (NAM) “Dream It. Do ItTM” program has helped to expose our youth to the modern manufacturing environment and change the image of manufacturing to one that is “cool” and full of exciting career opportunities.

These newer programs build on the work of the non-profit organization, Project Lead The Way®, which has been working since 1997 to promote STEM curriculum for middle and high school students during the school year, along with their Gateway Academy, which is a one- or two-week day camp for 6th – 8th graders that includes team-building exercises, individual and team projects, and utilizes the latest technology to solve problems.

However, none of the above programs are geared specifically to girls, and it is an even bigger challenge to attract girls and young women to technical careers. Studies have shown that when role models and mentors are provided to girls, they are more likely to follow a similar career path.

Two years ago, I wrote an article about the PLAYBOOK for Teens, created by Cari Lyn Vinci and Carleen MacKay, which is available in print and digital format at Amazon. In the PLAYBOOK, girls can meet fascinating women in STE@M (the “@” stands for “art”) and follow the “plays” of successful young women to help them create their own “Dream Career.” At the end of each story, the PLAYBOOK role models share heart-felt advice for girls to apply to their career path. Then, questions are asked of the reader to help them take the first step to writing their own PLAYBOOK. The PLAYBOOK is dedicated to the smart, talented teenage girls who will become the future business owners and leaders in STE@M industries. The PLAYBOOK can be used as a tool for organization and corporate partners to solve their future talent pool problems.

I recently reconnected with Ms. Vinci and interviewed her about why she created the PLAYBOOK for Teens and what has happened since 2014.

Why did you create the PLAYBOOK?

“When I was a teenager, I never dreamed that I would do some of the work I have done and that I would be able to be successful in several different careers. A common thread in my previous careers was that I spent more than 20 years hiring and writing training programs to help employees reach their goals. My previous business was helping adults figure out their next career, and if they wanted to be a business owner, helping them buy a franchise. This led me to wanting to help students understand that what they study in school and the education they get after high school will shape their choices as adults…in careers and lifestyle. Before I sold my last business, I realized that I wanted to focus on this goal next and collaborated with Carleen McKay to write the PLAYBOOK for Teens. We have packages available to help corporations recruit talent and market their brand. After I sold my business in 2015, I began working full time to achieve my goal.

What did you hope to accomplish?

“I wanted to help connect the dots for kids, so they could make the right choices on what to study to prepare for a career that matched their interests and talents and would provide them the opportunity to live the lifestyle they wanted to live.”

What was your original plan for the PLAYBOOK?

“I wanted to inspire and highlight that there are many paths to success and that going to college for the traditional four years is not the only choice. I wanted to show students that people who look like them are happy and successful in careers and doing wonderful things to make the world a better place.”

Why STE@M instead of STEM?

Ms. Vinci said, “The “@” in STE@M represents the addition of art to the other disciplines, as studies show art training is relevant in STEM subjects.” She emailed me a link to her YouTube video, in which she said that “art and making things are closely related.” She added, “One of my ancestors was Leonardo DaVinci, and he was an artist, sculptor, scientist, and inventor, who used technology, engineering, and mathematics.”

Why did you focus on girls?

“We did extensive research before developing the STE@M™ Mentoring Program. Our discussions with middle school girls revealed there are several roadblocks that start to show up in Middle School. Students told us:

  • STEM careers are only for boys
  • STEM subjects are too hard. My teacher says I only need “fill in the blank class” to graduate.
  • There are no girls in the science club
  • I don’t want to be viewed as the “smart one”
  • My friends aren’t interested in STEM
  • My parents don’t talk to me about or can’t afford an education for me beyond high school

Our PLAYBOOK for Teens…STE@M Mentoring Program helps girls catapult those roadblocks by discussing the elephant in the room and helping girls see the truth and the possibilities. The 8th grade girls tell us these conversations are more open and beneficial in a “girls only” environment.

By seeing the necessary building blocks and seeing women who look like them that are happy and successful in STE@M careers, students understand what is possible for them. And, most important, students form a “techie tribe” of support to keep them motivated going forward.

When the program is delivered in 8th grade, students have the opportunity to take appropriate courses in high school based on their “PLAYBOOK for Success” which includes their education goals after high school of community college, a four-year college, military or other education option.

The mentoring program is a way to set the stories in motion by bringing more young women into the lucrative STEM arena. Teens explore STE@M careers, gain insights from the role model stories, journal and research educational options.”

How has your plan evolved in the past two years?

We launched the PLAYBOOK at the Sacramento State and the AT&T non-profit group, Women of AT&T, Expanding Your Horizons event in Sacramento in October 2014 with books for 400 girls. One of the role models in the PLAYBOOK was the Keynote Speaker. Then, I participated on panels for WITI and the Global Women’s Entrepreneur Conference and gave presentations at the AeroSpace Museum for students and JSPAC for California educators. We had a team at the first ever Start Up Weekend for Women in Sacramento. I completed the Entrepreneur Showcase Accelerator program and graduated by pitching to a room full of investors, (think Shark Tank with nice people). The PLAYBOOK for Teens was written up in Huffington Post and featured on News 10.

In February 2015, we got an order for 100 books from the Livermore Expanding Your Horizons event and an order for 200 books from Diablo College. The organizers bought PLAYBOOKs for the parents and I did a presentation for the parents to be able to help their daughters’ research STEM careers using the PLAYBOOK.

When groups of students experience the PLAYBOOK together (with a mentor, teacher or parent), there is energy, commitment and excitement. We now have PLAYBOOK guides for 1-12 Mastermind sessions. The Train the Trainer curriculum is eight sessions, and we have a modified version for parents. Teen Mastermind Members share ideas, research and build confidence as they make decisions and take action towards their goals. Teens discover important success skills for life and career through the Mastermind—while they build a “professional network” of other students who have an interest in STE@M.

We developed an APP to compliment the PLAYBOOK for The Women of AT & T. We have packages available to help corporations recruit talent and market their brand.” Starting with The Women of AT&T at their “Expanding Your Horizon” event and the American Association of University Women’s (AAUW) “Tech Trek” event, educators and non-profits have asked to use the PLAYBOOK in a group environment. Educators wanted to use the information in the classroom, so I wrote the PLAYBOOK for Teens — STE@M™ Mentoring Program.

The Yolo County office of Education hosted the first PLAYBOOK Pilot that started in December 2015 and ran through March 2016 at Lee Middle School in Woodland. After a presentation about the pilot, teachers were asked to recommend 15 girls who have an interest in STE@M and who they thought would benefit from participating in the pilot. We received 54 recommendations within 24 hours, the teachers and counselors and counselors narrowed the number down to 14 participants.

I was very honored to receive the 2016 Yolo County School Board Association’s Yolo County Excellence in Education Award on May 2nd for the PLAYBOOK for Teens STE@M™ Mentoring Program, Our program encourages girls to explore the possibilities of a career in science, technology, engineering and math.”

What is your current goal for the PLAYBOOK?

“”We are working with the Community College Chancellors office and County Offices of Education to conduct “Train the Trainer” programs for teachers/counselors/parents so that educators can bring the  PLAYBOOK for Teens — STE@M™ Mentoring Program to Middle School students throughout California. Our next steps include writing a PLAYBOOK for boys and girls and collaborating with other education content providers to extend the program into High School. The Director of Careers at the County Office of Education in Yolo County would like the PLAYBOOK Program in all 11 middle schools.”

I think the comments that Michael Gangitano, counselor and career exploration teacher at Lee Middle School in Woodland, gave at the awards ceremony provides the best opinion of the importance of this program. After he received an award for bringing the innovative program to his campus, he said, “Having worked with middle and high school students for the past 35 years, I am constantly on the lookout for instructional tools that help young people see and plan for their future. PLAYBOOK for Teens is one of those resources that only comes around once in a great while that proves to be a rare gem.

The STE@M™ Mentoring Program arrives in an era when women are increasingly prominent in medicine, law, and business, but still lag behind men in STEM career choices. The program aims to disrupt that trend by providing a mentoring program in schools, in after school programs, at youth groups or at home.”

I was pleased to hear from Ms. Vinci that a modified version of the program is now available by webinar for parents and youth leaders and that invitations are being sent out this week to the Greater Sacramento Area Middle School educators and counselors to attend a Professional Development Training on the PLAYBOOK for Teens — STE@M™ Mentoring Program to be held August 10 or September 2, 2016. She said that Middle School educators and counselors are eligible for a complimentary registration and $250 stipend to attend.

In conclusion, I can’t do better than echo the final comments of Mr. Gangitano, “…let’s touch the lives of middle- and high-school aged girls by providing an inspirational life plan that knows no boundaries. Your students, daughters, their friends and our future deserve no less.”

SME Education Foundation Works to Grow Next Generation of Manufacturing Workers

Wednesday, September 30th, 2015

The 2015 ManpowerGroup annual Talent Shortage Survey reveals that 32% or 1 in 3 of “U.S. employers report difficulties filling job vacancies due to talent shortages,” down 8% from 40% in 2014. This 10th survey shows that “skilled trades remain the hardest to fill for six consecutive years.” Among U.S. employers, 48% acknowledge that talent shortages have a medium to high impact on their business, but few are putting talent strategies in place to address the problem…despite the negative impact on their business.”

One reason for the shortage is that public misperceptions of advanced manufacturing has led young people entering the workforce to choose other career paths. In an article titled, “What the shortage in skilled manufacturing workers means to a hungry industry” of the e-newsletter Smart Business, Kika Young, human resources director at Forest City Gear Co. Inc. of Rockford, IL, said “Most people in Gen Y out of high school don’t think of manufacturing as a career or as a good option. They don’t think of it as glamorous; they think of it as dark and dingy and dirty and aren’t interested in going into that.”

If we want to attract today’s youth to manufacturing careers, we need to change their perceptions about what the manufacturing industry is like and show them what great career opportunities exist in the industry. We need to expose them to the variety of career opportunities in manufacturing and help them realize that manufacturing careers pay 25-50 percent higher than non-manufacturing jobs, so they will choose to be part of modern manufacturing. The spotlight needs to be on the high-tech environment of modern manufacturing. New technologies such as 3D printing, robotics, and advanced analytics underscore the reality that a career in manufacturing does not entail working in a dirty, dangerous place that requires no skills.

SME Education Foundation is working to change the image of manufacturing and prepare youth for careers in advanced manufacturing through its Partnership Response In Manufacturing Education (PRIME®) initiative.

PRIME® is a collaborative model that engages regional manufacturers, local schools and other community representatives to establish a tailored advanced manufacturing / STEM education that provides high school students with relevant, hands-on knowledge and skills. PRIME® gives manufacturers a voice in education, builds student awareness of manufacturing career pathways, and provides youth with 21st century manufacturing skills, which can lead to industry credentials. Students graduating from the PRIME® program are often capable of successfully transitioning to the manufacturing workforce immediately upon high school graduation.

Established in 2011, PRIME® has grown to 36 schools in 21 states, impacting more than 6,500 students annually with 70 percent of graduating PRIME® seniors pursuing a post secondary education in manufacturing or engineering. SME Education Foundation has also supported 144 PRIME® students with nearly $400,000 in scholarship awards.

In my home state of California, there are six PRIME® schools: Esperanza High School, Hawthorne High School, John Glenn High School, Petaluma High School, Rocklin High School, and San Pasqual High School.

SME Education Foundation is working to expand its network by working with corporate partners to sponsor the development of new PRIME® sites at high schools throughout the country. “PRIME® is forging a path to revitalize manufacturing education and fostering the development of a highly skilled, STEM-capable workforce,” said Brian Glowiak, director of the SME Education Foundation. “Through the support of visionary corporate partners, like Alcoa and Honda, we are helping to create the next generation of manufacturing engineers and technologists and championing one of the most critical elements for innovation success.”

SME Education Foundation and PRIME® provide a winning solution for students by offering them opportunities to:

  • Collaborate with local SME Chapters and industry partners to co-host events
  • Engage with other students and educators in the PRIME® network to share their experiences and creative lesson plans as well as participate in student competitions
  • Participate in Advanced Manufacturing/STEM camps with younger students and other extracurricular activities
  • Receive post-secondary educational scholarships
  • Engage with SME members who can share their technical knowledge and experience by mentoring PRIME students, offering internships and providing job-shadowing opportunities.
  • Attend student summits at SME’s national manufacturing events. These summits allow students, parents and educators to interact face-to-face with representatives of companies that provide revolutionary technologies and business-changing innovations.
  • Implement training materials and curriculum from Tooling U-SME, the industry leader in manufacturing learning and development.
  • Receive SME’s Advanced Manufacturing Media, which produces digital and print publications that cover relevant manufacturing news, technology and advances.

PRIME® Success Story:

In 2014, Denbigh Aviation Academy in Newport News, Virginia was selected for PRIME® designation through the SME Education Foundation.Students at the Aviation Academy, are building a full-sized, 750-pound, two-seat aircraft. At the culmination of the project, they are planning to take this student-built aircraft to the skies! The Aviation Academy is a four-year, high school program in Newport News Public Schools, located behind the Newport News-Williamsburg International Airport. Learners focus on careers in aviation, electronics, engineering and technology. “We are able to get real world experience and it ties in with aerospace manufacturing /engineering. It’s a good thing because the fields are lucrative and growing,” says Laura Prox, a junior at the Denbigh Aviation Academy.

As one of the first sites on the East Coast to partner with Eagle’s Nest Projects (an organization that donates the plane kits to schools to build these aircrafts), students can immerse themselves into the manufacturing and aviation sector. An elite team of 30 students have completed the fuselage and tail sections. These students demonstrate an authentic example of manufacturing brought to life in the classroom. Students are assigned roles from management to labor based upon their coursework and experience. They are learning and employing fastening systems and procedures that can be found at any aviation assembly facility. Using the materials, reading the blueprints and drawings, and understanding principles in assembly outline some of the talents students gain. Throughout the process, some of the “soft skills” also emerge such as teamwork, communication and problem solving.”

Manufacturing Day 2015 will occur on Friday, Oct. 2, and throughout the month of October, SME will be supporting Manufacturing Day through chapter activities and events, the SME Education Foundation’s PRIME® school network and Tooling U-SME. Here’s what PRIME® schools are doing for Manufacturing Day!

PRIME® exposes our youth to the modern manufacturing environment and changes the image of manufacturing to one that is “cool” and full of exciting career opportunities for our youth. This will enable us to recruit the next generation of manufacturing workers to fill the skilled worker positions now going unfilled.

The question is: Will you be the corporate executive who joins the PRIME® program to sponsor more schools to expand the program to hundreds of schools in all 50 states? If so, go to this link. Or, will you be the corporate executive that will have to admit to his children or grandchildren that you are partly responsible for reducing their career opportunities for good paying jobs in manufacturing because you offshored manufacturing and/or imported foreign workers to replace American workers at your U. S. plant?

“Manufacturing in Golden State Summit Highlights Threats to Prosperity”

Tuesday, October 28th, 2014

On October 16th, about 130 business leaders met at the conference facilities of AMN Healthcare in San Diego for the third “Manufacturing in the Golden State – Making California Thrive” economic summit. The summit was hosted by State Senator Mark Wyland in partnership with the Coalition for a Prosperous America and a long list of other regional businesses and associations. The purpose of the summit was to discuss how several national and California policies are threatening the growth and prosperity of California manufacturers and what policies should be changed to help them grow and thrive.

After State Senator Wyland welcomed attendees, Michael Stumo, CEO of the Coalition for a Prosperous America, provided an overview of the schedule for the day.

I provided an update to the overview of California manufacturing that I had presented at our summit in Brea on March19th covered in a previous article. California lost 33.3% of manufacturing jobs between 2000 and 2009 compared to 29.8% nationwide and 25% of its manufacturing companies. California lags in manufacturing job growth at a .36% rate compared to the national 6.09% rate.

I highlighted that the San Diego region offers a great deal of help for inventors and start-up technology based companies through the San Diego Inventors Forum, CONNECT’s Springboard program, the Small Business Development Centers in North County and South County, CleanTech San Diego, as well as groups like the San Diego Sports Innovators. San Diego also offers more career path and workforce training programs than most other states, including those offered by three of our event sponsors: California Manufacturing Technology Consulting, the Center for Applied Competitive Technologies, and the Lean Six Sigma Institute.

The good news is that California is benefitting from the reshoring trend that is sweeping the county. According to data collected by the Reshoring Initiative, California ranks first in the number of companies (28) that have reshored and third in the number of jobs created by reshoring (6,014).

I then moderated a panel of the following local manufacturers, who gave their viewpoints of the effects of some of our national policies and the challenges of doing business in California:

  • James Hedgecock, Founder and General Manager of Bounce Composites
  • Scott Martin, President, Lyon Technologies
  • Robert Reyes, Head of Strategic Sourcing, Stone Brewing Company

Hedgecock stated that Bounce Composites is less than two years old and makes thermoset composites, starting with paddle boards and branching into small wind turbine blades this year. He bemoaned the fact that in California you have to pay $800 to incorporate a company, which is double to quintuple the cost of incorporating in other states. Also, as a LLC, you have to pay taxes on gross profits rather than net profits, which is tough on a start-up company.

Martin said that Lyon Technologies has been in business since 1915 and has changed its products several times over the years. Current products include bird and reptile incubators, poultry products, and veterinary products, which they export to about 100 countries. He stated that the Value Added Taxes (VATs) that are added to the products they export and the currency manipulation practiced by several countries make it difficult for their products to be competitive in the world marketplace.

Reyes said they are expanding out of San Diego and are building a new $25M brewery and restaurant in the Marienpark Berlin, scheduled to open by end 2015/beginning 2016. Stone exports beer to Germany and other European countries and having a brewery in Germany will ave on shipping costs for exporting. They are also planning on opening a brewery on the East Coast in Virgina.

The national expert panel included Greg Autry, Adjunct Professor of Entrepreneurship, Marshall School of Business, University of Southern California; Pat Choate, economist and author, “Saving Capitalism: Keeping America Strong”; Mike Dolan, Legislative Rep., International Brotherhood of Teamsters; and Michael Stumo, CEO of CPA.  The focus of the talks was on national security, manufacturing growth strategies, tax strategies and fixing the trade deficit.

Autry, led off the national panel with the topic of “National Security Concerns with U. S. Trade Regime.” He began by stating, “An economy that builds only F-35s is unsustainable – productive capacity is what wins real wars. Sophisticated systems require complex supply chains of supporting industries. They require experienced production engineers and experienced machinists.” He added that we cannot rely on China to produce what we need for our military and defense systems. “We should not be relying on Russia’s Mr. Putin to launch our satellites and space vehicles and provide us a seat to get to the international space station.”

He pointed out that our technical superiority in military systems will not assure our national security any more than the technical superiority of Nazi Germany’s aircraft and tanks did for them. Economic superiority is what matters. The manufacturing industry of the U. S. out produced Germany during WWII and the Soviet Union in the Cold War.

Autry stated that Wall Street’s new hero, Jack Ma, founder of Chinese company Alibaba Group Holding Ltd, is a danger to American interests by the fact that Alibaba just overtook Amazon as the world’s largest online retailer by market capitalization. It was the wealth he created at Amazon that enabled founder Jeff Bezos to now lead a new company, Blue Origin, which was just selected by the United Launch Alliance to finish development of a new engine to replace the Russian made RD-180 rocket engine used by ULA’s Atlas 5 rocket. There is considerable skepticism by many of Mr. Ma’s independence from the Chinese government. Mr. Ma’s next target appears to be PayPal, which is responsible for the wealth of Elon Musk, now CEO and CTO of SpaceX, CEO and chief product architect of Tesla Motors, and chairman of SolarCity.

Next, Michael Stumo presented “A Competitiveness Strategy for America: Balance Trade and Rebuild Domestic Supply Chains.” He said, “Our ultimate goals should be: improved standard of living, full employment, and durable, sustainable growth. America has no strategy to win. Our trade deficit cuts our growth in half. Domestic supply chains were sacrificed to global supply chains; i.e. offshored and hollowed out….We need a strategy to win.”

He pointed out that “free trade is supposed to produce balance and address foreign mercantilism, but our trade policies enable mercantilism…We must replace the goal of ‘eliminating trade barriers’ and have Congress establish a new directive via statue to balance trade.”

He said that to achieve balanced trade, we must address, reciprocity, currency manipulation, forced technology transfer [by China], foreign VAT rebates, state-owned enterprises, and government subsidies.

In conclusion, he recommended that we should:

  • Create durable comparative advantage through technical superiority, infrastructure, low energy costs, etc.
  • Balance trade and fight foreign mercantilism
  • Create our own comparative advantage
  • Maximize domestic value added
  • Identify and minimize our advantages while minimizing our disadvantages

In conclusion, he urged, “Don’t be afraid of asserting and pursing our national economic interest.”

The next speaker was Mike Dolan, Legislative Representative for the Teamsters, who has long experience working for Fair Trade (fighting expansion of the job-killing NAFTA/WTO model). He said that big corporations want Congress to pass Trade Promotion Authority in the “lame duck” session to grant the president Fast track Authority for the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) Agreements. He called the TPP “NAFTA on steroids” and said that TTIP is just as bad. He said that Fast Track was invented by President Nixon and has been used 16 times. He said that we need a new form a Trade Promotion Authority where Congress has input with regard to the countries involved in the Agreement, certifies that negotiating goals were met, and votes to approve it before it is signed. He urged attendees to contact their Congressional Representative to oppose the TPP for the following reasons:

  • “Lack of transparency during negotiations warrants more thorough consideration than a up or down vote
  • Under previous trade deals, the U. S. has hemorrhaged jobs and cannot afford more of the same
  • The TPP is too large and complex to delegate constitutional authority away from Congress”

Pat Choate (Economist; Author, Saving Capitalism: Keeping America Strong) discussed how our trading partners have used Value Added Taxes (VATs), and currency manipulation to their advantage and to the disadvantage of the U. S. VATs or border adjustable consumption taxes are used by other countries to offset income, payroll, or other employer taxes to help their manufacturers be more competitive in the global marketplace or to offset other costs like national health care or pension programs. VATs range from a low of 10% to a high of 24%, for an average of 17%.

While tariffs have been dropped since 1968 as part of many trade agreements signed since then, the effective trade barriers have remained constant because of the VATs being imposed.

These consumption taxes have been a causative factor in increasing our trade deficits with our trading partners, which was $471.5 billion in 2013, $318 billion with China alone. He supports CPA’s advocacy of making changes in U. S. trade policy to address this unfairness which tremendously distorts trade flows.

During lunch, keynote speaker Dan DiMicco, Chairman Emeritus of Nucor Steel Corporation, spoke on “Seizing the Opportunity.” He led off by shocking the audience with facts about the real state of our economy and our unemployment rate. By September 2014, we still had not reached the level of employment that we had when the recession began in December 2007 although 81 months had passed. We lost 8.7 million jobs from December 2007 to the “trough” reached in February 2010, but because our recovery has been much slower than the previous recessions of 1974, 1981, 1990, and 2001, the gap in recovery of jobs compared to these recessions is actually 12,363 jobs.

In contrast to the misleading U-3 unemployment rate of 5.9% for September 2014 that is reported in the news media, the U-6 rate was 11.8%. The government’s U-6 rate is more accurate because it counts “marginally attached workers and those working part-time for economic reasons.”However, the actual unemployment is worse because the participation in the workforce has dropped from 66.0% to 62.7%. In other words, if the December 2013 Civilian Labor Force Participation Rate was back to the December 2007 level of 66.0%, it would add 8.2 million people to the ranks of those looking for jobs.The manufacturing industry lost 20% of its jobs, and the construction industry lost 19% of its jobs.

Unemployment Data Adjusted For Decline in Civilian Labor Force Participation Rate
(Adjusted For Decline from December 2007 Level Of 66.0% to 62.8% in September 2014)

Reported Unemployed U.S. Workers 9,262,000
Involuntary Part-time workers 7,103,000
Marginally Attached To Labor Force Workers 2,226,000
Additional Unemployed Workers With 66% CLF Participation Rate 8,199,000 
Unemployed U.S. Workers In Reality 26,770,000
Adjusted Civilian Labor force 166,287,000
Unemployment Rate In Reality 16.1%

 

DiMicco said, “We got in this position from 1970 until today because of failed trade policies allowing mercantilism to win out against true FREE Trade. We bought into wrongheaded economic opinions that America could become a service-based economy to replace a manufacturing-based economy. Manufacturing supply chains are the Wealth Creation Engine of our economy and the driver for a healthy and growing middle class! The result has been that manufacturing shrank from over 30% to 9.9% of GDP causing the destruction of the middle class. It created the service/financial based Bubble Economy (Dot.com/Enron/Housing/PONZI scheme type financial instruments.)”

He added, “We have had 30 years of massive increases in inefficient and unnecessary Government regulations. These regulations, for the most part, in the past have been put in place by Congress and the Executive Branch. However, today they are increasingly being put in place by unelected officials/bureaucrats as they intentionally by-pass Congress.

American’s prosperity in the 20th century arose from producing more than it consumed, saving more than it spent, and keeping deficits to manageable and sustainable levels. Today, America’s trade and budget deficits are on track to reach record levels threatening our prosperity and our future.”

He said, “Creating jobs must be our top priority, and we need to create 26-29 million jobs over the next 4-5 years. There are four steps we can take to bring about job creation:

  • Achieve energy independence.
  • Balance our trade deficit.
  • Rebuild our infrastructure for this century.
  • Rework American’s regulatory nightmare.

In conclusion, DiMicco said, “We need to recapture American independence through investment in our country’s people, infrastructure, and energy independence, and by reversing the deficit-driven trends that currently define our nation’s economic policy. Real and lasting wealth IS, and always has been, created by innovating, making and building things — ALL 3 ? and servicing the goods producing sector NOT by a predominance of servicing services!”

As the mid-term election approaches, we need to cast our votes for candidates who address the serious issues discussed at the summit, so that we can work together as Americans to restore California to the Golden State it once was and restore America to be “a shining city upon a hill whose beacon light guides freedom-loving people everywhere,” as declared by Ronald Reagan in 1974.