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Manufacturing USA is Working to Rebuild American Manufacturing

Tuesday, March 5th, 2024

The manufacturing sector has an unrivaled ability to boost the nation’s global economic competitiveness. If the United States wants to remain a world leader and super power, it needs a cutting-edge manufacturing sector that is a step ahead of the competition.  This is why the National Network for Manufacturing Innovation was formally established in 2014, now called Manufacturing USA®.

The website states, “Manufacturing USA® is a national network created to secure U.S. global leadership in advanced manufacturing through large-scale public-private collaboration on technology, supply chain and education and workforce development. The network comprises the U.S. Departments of Commerce, Energy and Defense, their sponsored manufacturing innovation institutes, and six additional federal agency partners, creating a whole-of-government, national effort to drive innovation in manufacturing.”

   The following 17 institutes are now part of the Manufacturing USA network:

“While each institute is established by a sponsoring federal agency and has a unique advanced manufacturing technology focus and identity, they also seek to advance the bigger Manufacturing USA network mission to improve American manufacturing’s global competitiveness….Each institute includes members from industry, academia, and state and federal governments with a shared interest in advancing manufacturing [and]…collectively worked with over 2,500 member organizations to collaborate on more than 670 major technology and workforce applied research and development projects and engaged over 106,000 in advanced manufacturing training. “

The website describes the background of why and how it was formed.  “In June 2011, the President’s Council of Advisors on Science and Technology recommended the formation of the “Advanced Manufacturing Partnership” (AMP) (report). The partnership was led by Dow Chemical Company President, Chairman, and CEO Andrew Liveris, and MIT President Susan Hockfield. The Advanced Manufacturing Partnership was charged with identifying collaborative opportunities between industry, academia and government that would catalyze development and investment in emerging technologies, policies and partnerships with the potential to transform and reinvigorate advanced manufacturing in the United States. In 2012 it issued its first set of recommendations, “Report to the President on Capturing Domestic Competitive Advantage in Advanced Manufacturing.”

After a nationwide outreach and engagement effort, “The National Network for Manufacturing Innovation: A Preliminary Design,” was issued in January 2013.

In September 2013, an AMP 2.0 final report focused on a renewed, cross-sector, national effort to secure U.S. leadership in the emerging technologies that will create high-quality manufacturing jobs and enhance the United States’ global competitiveness. The steering committee, whose members are among the nation’s leaders in industry, academia, and labor, was a working group of the President’s Council of Advisors on Science and Technology.

In December, 2014, Congress passed the Revitalize American Manufacturing and Innovation Act (RAMI Act) into law, which gave Congressional authorization to the Advanced Manufacturing National Program Office and authorized the Department of Commerce to hold “open-topic” competitions for manufacturing innovation institutes where those topics of highest importance to industry could be proposed.”

The key initiatives of Manufacturing USA® are:

Advanced Manufacturing Technology Leadership – The institutes “convene private sector companies, academic institutions, government entities, and other stakeholders to pursue collaborative research and development, test applications, and train workers.”

COVID-19 Manufacturing Recovery – It “helped facilitate the production of Personal Protective Equipment (PPE) and helped empower U.S. manufacturers to reinvent the domestic PPE supply chain.”

Future Manufacturing Supply Chains – “It is engaging in projects that make domestic manufacturing processes more innovative and efficient to strengthen the competitiveness and resilience of U.S.-based manufacturing.”

Manufacturing Workforce Development – It is “helping to define the skills and training needed to satisfy manufacturers’ future requirements…retraining and upskilling the current workforce, and developing STEM talent for the future.”

Clean Energy Manufacturing – “It is fostering the development of energy efficient and clean energy technologies that will lead to major reductions in manufacturing energy costs and increases in innovative new green products in emerging clean-energy industries.”

Manufacturing USA® has developed a national education and workforce development roadmap to revitalize the manufacturing workforce by bringing together the public and private sectors to create opportunities for existing and prospective workers to find their pathways into the advanced manufacturing workforce. The roadmap is bu8ild upon three key priorities:  equip with skills, broaden access, and spark interest.

The February 2024 edition of SME’s Smart Manufacturing magazine featured an article titled “Manufacturing USA, Stronger than Ever” outlining some the of the recent accomplishments of a few of its network institutes.  It also mentioned the Modern Makers campaign that was “launched in 2023 to showcase individuals whose sense of purpose embody the Manufacturing USA mission to secure the future of U.S. manufacturing through innovation, education and collaboration.”

The article reported that “two institutes received significant funding from the Department of Commerce’s Economic Development Agency (EDA) Build Back Better (BBB) initiative, three institutes recently received EDA grants associated with the CHIPS and Science Act, and another institute’s parent organization got a grant from the Department of Defense’s (DoD) funding from the CHIPS and Science Act.”

For example, the Advanced Regenerative Manufacturing Institute (ARMI) received a “BBB grant to create a Robotics Manufacturing Hub and support four innovation accelerators in an 11-county region of Pennsylvania.”

The article reported that “America Makes is a partner in the new Sustainable Polymers Tech Hub, which is led by the Greater Akron (Ohio) Chamber of Commerce… the Akron area has the largest concentration of plastics and rubber manufacturing plants, machines and materials in North America and is positioned to establish global leadership in sustainable technology in those areas.”

In addition, CyManII led the Secure Manufacturing in South Texas Strategy Development Consortium of 13 organizations in San Antonio, Texas and “was awarded a Strategy Development Grant to develop a regional coalition and innovation roadmap to mature cybersecurity and secure manufacturing technologies…CyManII’s efforts are in advancing research through development and testing…[the consortium] will develop an innovation roadmap for cybersecurity and secure manufacturing technologies.”

Also, “PowerAmerica’s home institution, North Carolina State University, received a $39.4 million DoD grant to build the Commercial Leap Ahead for WideBandgap Semiconductors (CLAWS) semiconductor research hub, which will create a semiconductor research foundry to advance next generation chips and fabrication technology. CLAWS is one of eight federal research hubs around the U.S. created from the CHIPS and Science Act.”

The Manufacturing USA institutes are creating a better climate for manufacturers to help them adopt the innovative applications of Industry 4.0 technologies that will strengthen and grow their businesses. The economic development activities of the institutes are designed to strengthen the supply chain and improve the competitive position of U.S. manufacturing companies. In turn, this will provide pathways for Americans seeking rewarding, higher-paying jobs and contribute to stronger local, regional and national communities. Be sure to check out which institute is focused on your industry.

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Black Inventors Honored at Black Inventors Hall of Fame

Tuesday, November 28th, 2023

When I attended the US Inventor first annual conference last month, I had the pleasure of meeting James Howard, Executive Director of the Black Inventor’s Hall of Fame (BIHOF).  He had a display panel at his table that showed a collage of pictures of Black inventors.  Because the breaks between sessions were short, I didn’t have time to talk to him as long as I would have liked, so we caught up on Zoom last week.

I told James that I had browsed every page of the Black Inventors Hall of Fame website as well as his LinkedIn profile and was impressed with his background and experience.  We share a few things in common —we were both born in Chicago, are entrepreneurs, and have taught entrepreneurism. Of course, James taught as a professor at the County College of Morris while I only taught teens how to start their business in an after-school and summer camp program for a non-profit called Millennial Entrepreneurs in the early 2000s.

Besides being an inventor himself, Mr. Howard also brings over 25 years of experience as a design professor and has authored a course on Design Thinking and Design History that explores the impact of design on society. His latest venture is Entrepreneurial U, Morris County’s first school of Design Thinking.” Mr. Howard said, “I have over 20 patents, so I understand what an inventor has to go through before finally getting their patent and a functioning model. I have had numerous patented products succeed on the market.  Most notably the AlarmLock access control lock, and the Vital Signs NeoNatal pressure relief valve for resuscitating infants at birth.

I asked why he founded BIHOF, and he replied, “I founded BIHOF to immortalize the pioneering genius of African American inventors for the past 400 years.  We needed “to recognize and tell the story of African American greats such as George W. Carver who in 1941 was referred to as “The Black Leonardo” by Time Magazine for his prolific contributions in the field of agriculture. Yet, nearly 80 years later, Carver was all but ignored by Time in its list of top 100 American inventors of all time. It is time that exceptional inventors are immortalized by being inducted into the Black Inventor’s Hall of Fame. The story of African American Inventors is a sad history of being lost or simply overlooked. Far too often, historical accounts forget to mention the incredible achievements of Black inventors. I am honored to have the privilege of bringing a broad and detailed awareness of the important work of African American inventors, artists and innovators who have inspired and forged ahead against tremendous odds and adversity.” 

He added, “Every year we induct extraordinary Black inventors into the Black Inventor’s Hall of Fame to permanently recognize their innovative contributions to society. The website serves as a platform telling the story of talented African American innovators.  We include and highlight notable advancements and projects from academia, manufacturing and agriculture to advancements in medicine and the sciences. Our goal is to identify entrepreneurial leaders who have invented and produced groundbreaking technological advancements that improve the quality of life around the world.”  

Mr. Howard said, “What you invent you have to make before you can finalize your model.  It is the basis for innovation, and if we don’t invent, we don’t have products to be made by manufacturers.  There is a link between inventing and entrepreneurism. That is why I started my school of entrepreneurism to help long term unemployed learn new job skills and a new way to achieve a good life. “

He explained, “In our community, we appreciate the importance of inventing and innovation. Finding new ways to do something or make something is woven into our DNA. However, many African Americans have great ideas but they don’t have the benefit of having a “rich uncle” to finance their venture. They have to try to finance it themselves, and the majority don’t succeed.” 

I said I realize that there are nearly 400 inventors listed in Henry Baker’s list of Black Inventors, but this list was published in 1894, so I wondered if he would highlight a few more recent inventors featured in his Hall of Fame.

He responded, “I would feature Dr. Hadiyah-Nicole Green.  She has developed a revolutionary cancer treatment that uses lasers and nanotechnology to eliminate cancer.” Her bio states, “She is a STEM pioneer, leader, humanitarian, and entrepreneur who is introducing the world to the next generation of cancer treatments, cancer charities, and affordable healthcare. She is one of the nation’s leading medical physicists and one of a short list of African American women to earn a Ph.D. in Physics. Dr. Green developed a revolutionary cancer treatment that uses lasers and nanotechnology to eliminate cancer in mice after only one 10-minute treatment in just 15 days with no observable side effects. To ensure the affordability of this treatment, she founded a 501(c)(3) non-profit organization, the Ora Lee Smith Cancer Research Foundation (OraLee.org), to raise the funding for human clinical trials.”

He said he would also include the late Dr. Patricia Bath, who invented “laserphaco, a new device and technique to remove cataracts. It performed all steps of cataract removal: making the incision, destroying the lens and vacuuming out the fractured pieces. She is recognized as the first Black woman physician to receive a medical patent.”

He also mentioned Lonnie G. Johnson, who is a former Air Force and NASA engineer who invented the #1 top selling water toy of all time, theSuper Soaker®.  Coincidently, my husband and I had just watched an episode of The Toys ThatMade America on the History channel featuring the Super Soaker®.   The show told how it took Mr. Johnson eight years to find a Toy company, Hasbro, willing to make a deal to produce and market this toy, which has generated well over $1 billion in sales over its lifetime. The show mentioned that Mr. Johnson’s longtime research focuses on energy technology, and his toy resulted from his work on an environmentally friendly heat pump. His bio states, “He currently holds over 100 patents and has over 20 more pending on products and processes ranging from toys and consumer products to advanced technology energy. He is president and founder of Johnson Research and Development Co., Inc., a technology development company, and its spin off companies, Excellatron Solid State, LLC; Johnson Electro- Mechanical Systems, LLC; and Johnson Real Estate Investments, LLC.”

I told him that when I browsed the website, I saw that he is planning a museum for BIHOF, and he replied, “Yes, we are raising money to build a museum, which we envision to be a 31,000 sq. ft. facility with state of the art, tuition free STEAM classrooms, theater, Metaverse library, startup incubator, and a Legends Hall featuring the top Black inventors of the Golden Era in this country. The BIHOF Museum and STEAM Learning Center is planned to be located in New Jersey. BIHOF is a 501c3 organization, so donations to help build the museum are tax deductible. “

I encourage everyone reading this article to consider making a donation to BIHOF so that Black inventors will receive the recognition they deserve and future inventors will be helped to succeed in the business incubator.

I told James that I was a managing member of a business incubator in the late 1990s and actually wrote my first book on business incubators in 1997 after visiting and researching incubators around the country for five years.  I think the idea of having an incubator for businesses started by Black inventors is a great idea because incubators and the new Makerspaces are very helpful in accelerating successful businesses. 

We both agreed that it is hard enough for any inventor to get a patent, raise the money to make and market a product, or get a licensing deal, but current broken patent system makes it even harder to be successful for both white and Black Americans.  We urgently need the patent reform recommended by US Inventors.  

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US Inventor Conference Was an Amazing Success!

Tuesday, November 14th, 2023

US Inventor’s First Annual Conference was held on October 19th and 20th at the U.S. Patent office facility in Alexandria, VA to celebrate 10 years of work to achieve its mission “to restore the patent system to what it once was and to empower inventors to succeed.”  About 150 people attended all or part of the two-day event.  It was a resounding success and truly a remarkable event!

I had the pleasure of attending this event because I have been a board member of the San Diego Inventors Forum since 2014 and have been the liaison between our club and US Inventor, which is the only organization representing small inventors, businesses, and startups to enact change that supports inventors.

The conference was preceded by a day at the Capital where about 30 of us broke up into small groups to meet with the staff of Congressional Representatives in Congress to discuss how to fix the broken patent system. The afternoon included a networking event held in the Rayburn building Gold Room to which Congressional staffers were invited to see the new documentary, Innovation Race, directed by Luke Livingston.  Mr. Livingston attended the whole USI conference and handled the live streaming and recording of the event.

US Inventor founder, Paul Morinville, began the conference Friday morning by saying that he started walking the halls of Congress to advocate for Inventor Rights in 2013 after his aspirations of achieving both the Inventor’s Dream and the American Dream were cut short by the America Invents Act of 2011 (AIA) and establishment of the Patent Trial and Appeal Board (PTAB). He was joined by Randy Landreneau in January 2014.  Paul incorporated US Inventor as a 501(c)(4) non-profit corporation on March 17, 2015 to put a stop to H.R. 9, the Innovation Act. After visiting the offices of every senator, the Innovation Act died in committee in  2016 during the 114th Congress (2015-2016). When Josh Malone joined them in 2017, it greatly helped their efforts.

Space doesn’t permit me to give a full recap of the conference, so I am providing highlights from my notes.  The panels both days were interspersed by the stories of inventors who have had their patents infringed or invalidated by the PTAB.  These stores were heartbreaking, and I could mot do justice to them in writing; you had to hear the stories to get the full impact. 

Next, former USPTO Director, Andrei Iancu, discussed “The Importance of Innovation”, saying in part that “patents and inventions ae part of the American fabric. We should stop and think what the world was like before the U.S. patent system…Every change that we use today was backed by a patent…Patents and the right to have patens are incorporated in the Constitution in Article 1, Section 8. He added that “without the patent system, it is very difficult to raise the money needed to produce and market new products.  There is an inextricable link between IP and innovation and without a secure patent system, innovation is stagnating…Inventors have always been the backbone of the American economy and American dream.”

Paul discussed “Where Did our Patent System Go?” He explained that even before the American Invents Act AIA) was passed in 2011, the Supreme Court decision of “Ebay vs. Merexchange” in 2006 “changed Intellectual property from a personal property to a ‘tort’ or “public franchise” and created a “public interest test’ in order for inventors to receive injunctive relief from infringement.” Injunctive Relief stops an infringer from making selling, or using a patent, but it has become difficult for an inventor to pass the “public interest test” against a large corporation that has saturated the market with the product based on the patent they infringed.

The AIA created the Patent Trial and Appeal Board (PTAB). It is a nonjudicial administrative tribunal within the USPTO. A panel of lawyers are appointed “Administrative Patent Judges” and granted bonuses to revoke patents.  There is no jury and no due process of law.  The PTAB is funded by fees of the petitioner (usually a large corporation that is infringing the patent they are challenging for review).  Currently, the PTAB is invalidating 84% of the patents they review.  

A panel discussion of “PTAB vs. Federal Court:  Comparing the Two Forums” followed that was moderated by Warren Tuttle.  Panelists were Rob Sterne, Adam Mosoff, and Molly Metz. A few comments were:

Adam Mosoff – “The PTAB hasn’t lived up to its expectations. I had told people that the ‘first to file’ vs. ‘first to invent’ and PTAB would be problematic. The PTAB didn’t put in any protections for inventor’s rights. PTAB was characterized as easier for people and faster, but they set up a system that was ultimately faster to lose rights.

Molly Metz – “I spent over $400,000 and it took four years, so it wasn’t cheaper or faster.” (Molly had share he heartbreaking story of her patent infringement and invalidation after Paul’s introduction.)

Rob Sterne – “We need a system that is really faster and fair for people.  The way PTAB law is applied isn’t anything like the way it was supposed to be.  It has put a real damper on investment and innovation in this country.”

The Friday afternoon session included a discussion of “Bleeding You Dry:  The Court’s Misuse of Injunctive” by Thomas Woolsten, founder of Mercexchange and main inventor of 30 patents. He said, “The current system provides strong incentives for patent infringement.  No patent of importance is going to get to the injunctive stage.”

The highlight of the afternoon was “The Great Debate: PREVAIL, PERA, and New Legislation.” Moderated by Paul Morinville.  The panelists were:  Judge Paul Michel, Scott McKeown, Rudy Fink, and Steve Daniels. Judge Michel said, “About 50% of American venture capital is now going overseas to China and other countries…The anti-patent lobby is very large and well-funded.” He supports PERA because “it takes the courts out of the issue of eligibility and solves 80-85% of the problems with patents.”

S. 2140: Patent Eligibility Restoration Act of 2023 (PERA) introduced by Senators Thomas Tillis (R-NC) and Christopher Coons (D-DE) on 6/22/2023 was discussed in my article “Inventor Rights Still Being Threatened.”

S. 2220: PREVAIL Act was introduced on Jul 10, 2023 by Senator Christopher Coons (D-DE) – “A bill to amend title 35, United States Code, to invest in inventors in the United States, maintain the United States as the leading innovation economy in the world, and protect the property rights of the inventors that grow the economy of the United States, and for other purposes.”

Friday’s event concluded with remarks from Judge Pauline Newman, followed by a networking cocktail reception.

There isn’t enough space in this article to permit a recap of the topics covered at the Saturday event. The following topics were discussed:

“Does ‘Any” mean ‘Any’? Ask Alice” presented by Robert Greenspoon.

Why and How 97% of IP Portfolio Owners Destroy Most of their Portfolios” discussed by panelists Evan Langdon, Jack Lu, and Russ Genet and moderated by Steve Taylor

“How to Survive the Patent System” discussed by Jeff Hardin, Josh Malone and Paul Bartkowski that was moderated by Eli Mazour.

“New Solutions for New Problems:  Freezing Assets of Online Infringers on Amazon, YouTube, Facebook, and the Internet” presented by Joel Rothman.

The afternoon concluded with a discussion of “Advocating for a Stronger Patent System” by panelists Paul Morinville, Molly Metz, Cliff Maloney, Justin Greiss, and Randy Landreneau.

An awards ceremony and dinner took place that evening at the Holiday Inn Carlyle in Alexandria, VA where attendees stayed. Awards presented were:  Michael Kintner: The Inventor; Molly Metz: The Advocate; John Murray: The Warrior; Jeff Hardin: The Veteran.

In closing, Paul said, “We are honored to have such a significant turnout for our first event and incredibly grateful to our members, speakers, and sponsors for making this event possible. We have so much work to do, and I hope the event, discussions, panels, and presentations allowed USI members to feel empowered and motivated to enact change.”

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Manufacturing is the Engine of American Technology Development and Innovation

Tuesday, July 7th, 2020

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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H.R. 5478 would Protect Inventors Rights

Tuesday, February 11th, 2020

On December 18, 2019, H.R. 5478 was introduced by introduced by Representatives Danny K. Davis (D-IL) and Paul A. Gosar, D.D.S. (R-AZ), and on January 28, 2020, it was referred to the Subcommittee on Courts, Intellectual Property, and the Internet. This Act that would restore patent protection for inventors and mitigate a generation of laws, regulations, and court decisions discouraging innovation by failing to secure to inventors the exclusive rights to their discoveries.

It is crucial that this Act be passed this year because our patent system is in crisis. The text of the Act states “Recent changes to patent laws and procedures and Supreme Court decisions have adversely affected inventors such that the promise of Article 1, section 8 of the Constitution of ‘securing for limited times to inventors the exclusive right to their discoveries’ is no longer attainable.”  The biggest change to the U. S. patent system was made by the America Inventors Act of 2011,  

The Act states that “Inventors are denied the fundamental right to ‘exclude others’ by the Supreme Court’s 2006 decision in eBay Inc. v. MercExchange, LLC.” Thus, inventors have lost their injunctive rights granted by the Constitution.  It also states that “Inventors were stripped of the right to file suit in their own judicial district by the Supreme Court’s 2017 decision in TC Heartland LLC v. Kraft Foods Group Brands LLC.”

Imagine if you invested in a house, moved in, started to enjoy it, and then had squatters arrive, whom you can’t legally kick out. Yes, you could charge them rent, but if you can’t kick them out, they have no incentive to pay! They would just keep squatting and living in your house for free. That’s what has happened to our patent system.

The ability to stop others from infringing on inventor’s patent rights was what helped big tech companies years ago. Amazon never would have existed without Jeff Bezos’ patent for “the one click purchase” that he licensed to Apple to use for their app store.  Amazon and Microsoft ere helped to grow by their patent licensing revenue.

Now, large companies are stealing patents and inventors can’t stop them from using the technology. These large corporations are choosing to spend years in court in a process called “efficient infringement,” by paying legal fees to harm new innovation by inventors instead of paying fair licensing royalties to grow the new innovation. The inventors have to incur extensive legal fees to protect their patents, which often bankrupts them if they can even afford to initiate a lawsuit.

  While American innovation is faltering to grow here, China has out legislated America, (learning from our mistakes by mandatory licensing and punitive damages on intentional infringement to quickly grow innovation. Their strong patent legislation is growing their economy exponentially. They now have a billion dollar start up every three days in crucial fields like AI, 5G, and other new technologies, while in America we have none.

Instead, we only have large USA corporations stealing innovation from small companies, then bankrupting them in Patent Trial and Review Board (PTAB) trials by judges appointed by the USPTO at a rate of around 86%.

For further information on the patent crisis, you may watch the trailer for the documentary Invalidated: The Shredding of the U.S. Patent System  The full version is available on Amazon and iTunes.

Attempts to undo the damage of the America Invents Act of 2011 and Supreme Court decisions isn’t new.  There were three bills related to patents/inventor rights were introduced in the 115th Congress (2017-2018), but they never got out of committee for a vote on the House floor:

H.R.6557, Inventor Protection Act – “To amend title 35, United States Code, to restore patent rights to inventors, and for other purposes.” It was designed to restore patent protection for inventors by reversing a generation of laws and regulations.  (Sponsored by Rep. Dana Rohrbacher, R-CA)

S.1390, Stronger Patents Act of 2017 – A bill to strengthen the position of the United States as the world’s leading innovator by amending title 35, United States Code, to protect the property rights of the inventors that grow the country’s economy. (Sponsored by Sen Chris Coons (D-DE)

H.R.6264 – Restoring America’s Leadership in Innovation Act of 2018 – A bill “to promote the leadership of the United States in global innovation by establishing a robust patent system that restores and protects the right of inventors to own and enforce private property rights in inventions and discoveries, and for other purposes.” (Sponsored by Rep. Thomas Massie (R-KY)

H.R 5478 is a simple bill that would protect inventor’s rights. The main provisions of H.R. 5478 are:

“SEC. 3. Inventor protections.

(a) Inventor-Owned patent. —Section 100 of title 35, United States Code, is amended by adding at the end the following:

(k) The term ‘inventor-owned patent’ means a patent with respect to which the inventor of the invention claimed by the patent or an entity controlled by that inventor—

(1) is the patentee; and

(2) holds all ‘substantial rights.’

(b) Inventor-Owned patent protections.—Chapter 32 of title 35, United States Code, is amended by adding at the end the following new section:

§ 330. Inventor protections

(a) Protection from post issuance proceedings in the united states patent and trademark office. —The United States Patent and Trademark Office shall not undertake a proceeding to reexamine, review, or otherwise make a determination about the validity of an inventor-owned patent without the consent of the patentee.

(b) Choice of venue. —Any civil action for infringement of an inventor-owned patent or any action for a declaratory judgment that an inventor-owned patent is invalid or not infringed may be brought in a judicial district—”

As the findings cited in the Act state, “Inventors have contributed significantly to innovation in the United States and their continued dedication to inventing and sharing solutions to modern technical challenges is essential for the United States to maintain leadership in the global economy.” It is crucial for inventors to be able to have some assurance that the rights to their patents will be reviewed in a consistent manner, so that they will be able to secure investors and get their product into the marketplace.

Josh Malone, volunteer advocate and inventor of top selling Bunch O Balloons emailed me, “Our patent system was intended to incentivize individual inventors but has recently been captured by trillion-dollar corporations. Small businesses have virtually no chance when it costs tens of millions of dollars and takes a decade or more to bring an invention thief to justice. Inventors need to make their voices heard by contacting their Senators and Representatives to tell them to repair our innovation system by passing the Inventor Rights Act.”

In order to ensure that H.R. 5478 gets out of committee review and is voted upon by Congress, more co-sponsors are needed. Please urge your Congressional Representative to co-sponsor H.R. 5478, which would restore patent protection for inventors and mitigate the laws, regulations, and court decisions that have discouraged innovation by failing to secure to inventors the exclusive rights to their discoveries.

Posted in Inellectual Property, Innovation, Legislation, Patent Reform | No Comments »

Women Lead Made in America

Tuesday, November 12th, 2019

Few people are aware that more than 11.6 million firms are owned by women, employing nearly 9 million people, and generating $1.7 trillion in sales as of 2017.  In fact, women run businesses are helping to lead a resurgence in American manufacturing.

Many women-run businesses participated as exhibitors in the Made in America show, and as I mentioned in my last article, I participated as a panelist for the Women Leading America Made session that featured five women running their own American-made businesses. Moderator Rose Tennent asked each of us to briefly describe our businesses.

Barbara Creighton, CEO of Sarati International, Inc. started her company in 1992 in south Texas to make private label prescription drugs, proprietary drugs, and skin care products. She said, “We develop custom formulations and then private label them. We make products like you would purchase, and we private label them. We are woman owned and woman run.”

Beverlee Dacey, owner of Amodex Products, said that her parents started the company in the early 1970s, and now she runs it.  “We make a soap-based product that is an ink and stain remover liquid solution and do our own manufacturing in Bridgeport, CT. Amodex is the only stain remover recommended by the manufacturer of Sharpie to remove Sharpie ink from anything.”

Connie Sylvester said, “I am an inventor and founder of two companies, Water Rescue Innovations and Mommy-Armor USA.  I founded my first company six years ago in Duluth, MN to make the ARM-LOC water rescue device that slides onto the victim’s forearm and locks into place so that a rescuer can pull the victim to safety.  I sell to a male-dominated industry of first responders, fire-fighters, police, and rescue squads. I’m often the only woman telling men how to rescue people.”

She shared how she started her second company, Mommy Armor USA. On February 14, 2018, after she dropped off her son at school, she got a text message saying there was a school shut down due to a shooter. She was thankful that it wasn’t at her son’s school, but her heart broke for the 17 parents that lost their children at Parkland in Broward County, Florida.  She said, “There was a problem, and I came up with a solution. I had some bullet proof material and suggested to my son that I could make a bullet-proof backpack, but he said they had to leave their backpacks in their lockers. I asked what they got to take to class, and he said they get to take their 3-ring binders. My other son said they get to take their daily planners. So, I got the idea of making a bullet-proof cover for the 3-ring binder and the daily planner.”

She then demonstrated how the bullet proof daily planner could be attached to the 3-ring binder and how it could be used to shield your body like armor. She is just launching the product in time for Christmas.  She has the Mommy Armor fabricated by a company in the hills of the Appalachian Mountains, Capewell Aerial Systems LLC.

Leigh Valentine, founder of Leigh Valentine’s Beauty said that she went through a terrible divorce, lost everything, slept on the floor, and was on welfare for a while. Then, the Lord gave her an incredible idea for a non-surgical face lift product made from plant extracts that dramatically firms skin and takes away wrinkles.  She was on the QVC shopping network for 14 years and sold over 40,000,000 products.  She said many people have told her she could save money by buying from China, but she said, “All of my products are made in America, and I try to buy as much as I can in America.”

I shared that when I started my sales agency 34 years ago, I chose to only represent American manufacturers.  I was a woman in a man’s world because I started out selling castings, forgings, and extrusions. No buyer or engineer I saw had ever been called on by a woman.  I visited all of the companies I represented and learned everything I could about their manufacturing so I would be informed. When I saw what was happening to manufacturing and how it was being decimated, I started writing blog articles and reports and then wrote my book. Can American Manufacturing be Saved” Why we should and how we can that came out in 2009. A second edition came out in 2012, and I have written over 300 articles in the past ten years. We have saved American manufacturing, and now we need to rebuild it. I showed everyone my latest book, Rebuild Manufacturing – the key to American Prosperity.

Rose asked us to what message we would give to a woman who has an idea for a product or who has already started her own business.  Leigh said, “You really have to fight to bring your product to market. I partnered with some people that I wish I never had partnered with.” She would advise women that if they need a partner “be careful to pick a partner that has the same values and vision you do. They will steal from you and lie.” In the end, it cost her $6 million to end the partnership.

Beverlee said, “When you run a company, don’t think you are ever going to reach an equilibrium where you don’t have problems. Every single day there are stress and problems. Then you realize that the problems don’t go away, they just get bigger and worse.  It is normal.  It is part of what you do when you run a company. The other lesson I have learned is don’t grow too fast. There is only so much you can do and only so much you can do well. We are only a five-person company. When we got picked up by Lowes, we made the decision not to go with Home Depot because we wanted to be a good partner to Lowes.”

Barbara said, “Don’t believe all the lies that are being sold to young people. There is no a glass ceiling. Men created the glass ceiling to keep women down. I have never felt held back by a glass ceiling. I was the first women on the west coast to sell chemicals, and the first women in land development. The ceiling is only created by you.”

Connie said, “Don’t set the bar too low and never give up.”  She did high jumping like her brothers and they never lowered the bar for her even though she is only 5 ft. 3 in.  She actually coached track and field for five years.

I said that I would advise a woman to never stop learning. “I recently got my certificate in Lean Six Sigma to be of more service to my customers. Service is all I have to offer — service to the companies I represent and service to my customers.  When I started my company, I chose a motto:  you achieve your goals by serving others.”

Rose commented that there seems to be more comradery at this trade show and asked us to share what we thought about the show.

 Leigh said, “It is such an honor to be here. I am thrilled and honored to be here. This is a movement, and we’ve got to stick together and support each other’s businesses.”

Connie said, “This is like a family. I was actually at another Expo here and saw an announcement on the TV in my hotel about this show, and I knew I had to be here.  When I walked the aisles, I knew I had found my people. Everyone of these people know what it takes to make products in America.  We could have hit the easy button and made things cheaper in other countries, but we chose to make our products in America.”

Barbara said, “In this incredibly divisive world, we need to help one another. I am extremely excited about being able to share joy. I just try to lift others up. We are Americans and are proud to be Americans, and we want to have joy in a country that has given us amazing opportunity.”

Beverlee said, “The Made in America movement has been around for awhile now, but what I have enjoyed the most is that for the first time we have a “hubable” wheel where there were a lot of silos. All of us here are together in this.  It’s not a trade show, it’s a forum.”

I said, “This show is a dream come true for me. Most people don’t realize that manufacturing is the foundation of the middle class. We lose manufacturing and we lose the middle class. We’ve had wage stagnation for 20 years, and my children aren’t as well off as I was. We have to get the message across to our children and grandchildren of how important it is to make things in America again. I heard it said that there are only three ways to create tangible wealth: “Grow it, mine it, or make it.” We need to create wealth for our country by making things in America so we can have a safe and free country. After our panel session ended, we said that we would look forward to seeing each other again at the 2020 Made in America Show. We know it will be even bigger and better, so don’t miss it.

Posted in Innovation, Made in America, Manufacturing | No Comments »

Upcoming Southern California Events

Wednesday, January 16th, 2019

We have a busy first few months of trade shows and conferences for 2019. I will be attending the following shows for at least one day to keep up with the latest technologies and industry news for writing future articles.

I’m also beginning the year with several webinars in January – March.  I am giving two webinars on “How to Return Manufacturing to the U.S. Using Total Cost of Ownership Analysis” on two dates, Tuesday, January 22nd (Register here) and Wednesday, January 30th (Register here).

Then, I’m giving one Tuesday, February 12th, on “How We Can Solve the Skill Shortage and Attract the Next Generation of Manufacturing Workers.” Register here.

On February 5-7, 2019, the UBM Advanced Manufacturing Expo & Conference

will be held at the Anaheim Convention Center, Anaheim, CA

This conference will be part of the five shows being held concurrently at the Center.

Register Here

 Register Here

Expo Hours for all shows:

 February 5, 10:00 a.m. – 5:00 p.m.

February 6, 10:00 a.m. – 5:00 p.m.

February 7, 10:00 a.m. – 4:00 p.m.

 

AFCEA/USNI WEST Conference
Registration Center
11208 Waples Mill Road, Suite 112
Fairfax, VA 22030
(888) 273-5706 / (703) 449-6418
Register

Why Attend AFCEA:

Attend three days of open discussions with defense and maritime leaders. Gain a better understanding of the impacts and implications of the new National Security Strategy. Hear about the current set of challenges facing the Navy, Marine Corps and Coast Guard, and be a part of the dialogue on the opportunities and solutions to address these concerns.

CONNECT

Spend time with military, government and industry ‘out of the office’ and ‘outside of the beltway.’ Engage with speakers, attendees and exhibitors and discuss ideas and insights. Afternoon happy hours on the exhibit floor provide an opportunity to network with thought leaders.

INNOVATE

Explore and experience the latest platforms, leading edge technologies and state-of-the-art networking capabilities that support the Sea Services operations. Visit over 300 maritime exhibits.

 

IPC APEX EXPO 2019 is a five-day event like no other in the printed circuit board and electronics manufacturing industry. Professionals from around the world come together to participate in the Technical Conference, Exhibition, and Professional Development, Standards Development and Certification programs. These activities offer seemingly endless education and networking opportunities that impact your career and company by providing you the knowledge, technical skills and best practices to address any challenge you face.

Exhibition Hours

Tuesday, January 29           10:00 am–6:00 pm

Wednesday, January 30     9:00 am–6:00 pm

Thursday, January 31         9:00 am–2:00 pm

About IPC

IPC is a global trade association dedicated to furthering the competitive excellence and financial success of its members, who are participants in the electronics industry. In pursuit of these objectives, IPC will devote resources to management improvement and technology enhancement programs, the creation of relevant standards, protection of the environment, and pertinent government relations.

Register Here

Conference: April 29 – May 2, 2019 | Exhibits: April 30 – May 1

Long Beach Convention Center, 300 East Ocean Blvd, Long Beach, California

Conference Hours:

Tuesday, April 30, 2019 | 10:30 AM – 4:00 PM

Wednesday, May 1, 2019 | 10:30 AM – 4:00 PM

Thursday, May 2, 2019 | 9:00 AM – 12:00 PM

Exposition:

Tuesday, April 30, 2019 | 10:00 AM – 5:30 PM

Wednesday, May 1, 2019 | 10:00 AM – 5:30 PM

Dates and times for workshops, tours, and networking receptions are being determined. Check back for updates.

Register Now

 

For those of you in San Diego County, you may also want to attend the free Economic Roundtable on Thursday, January 17, 2019.

What does the San Diego County economy look like for 2019 and beyond? Join  the lively discussion with a panel of experts covering the future of the economy, housing/homelessness, military, and diversity and inclusion. Experts will provide predictions and their perspective on what may be in store for San Diego County.

Session One:

Ray Major, Chief Economist, SANDAG

Ryan Ratcliff, Associate Professor of Economics, USD School of Business

Sarah Burns, Director of Research and Evaluation, San Diego Workforce Partnership

Session Two:

Housing/Homelessness: Stephen Maduli-Williams, Community Development Program Manager, City of San Diego

Military: Jesse Gipe, Senior Manager, Economic Development, San Diego Regional Development Corporation

Diversity and Inclusion: Dwayne Crenshaw, CEO and Co-Founder, RISE San Diego

Date: Thursday, January 17, 2019

Time:

Networking: 8–8:30 a.m.

Program: 8:30 a.m.–noon

Location:

University of San Diego—Joan B. Kroc Institute for Peace & Justice

5998 Alcala Park, San Diego, CA 92110

Cost: Free

Save Your Seat

 

 

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Posted in Economy, Innovation, Manufacturing | No Comments »

Innovative Products Featured at San Diego Inventors Forum Invention Contest

Tuesday, November 6th, 2018

This year’s invention contest held on October 11, 2018 by the San Diego Inventors Forum was incredible. I’ve been attending the contests for nine years, and this year, there were so many unique, useful inventions that it was very difficult to vote for my favorite invention.

The mission of the San Diego Inventors Forum is to help inventors to become entrepreneurs to create new companies and jobs here in San Diego. Monthly meetings have been held on the 2nd Thursday of each month. Meetings are held at AMN Healthcare, 12400 High Bluff Drive, San Diego, CA 92130.The next meeting will be this Thursday, November 8, 2018.  Networking starts at 6:30 pm, and the meeting starts at 7:00 pm.

At the monthly meetings, inventors meet other successful, local inventors in many different fields and learn how they developed their marketable products. The give inventors the opportunity to network with fellow creative people and get guidance and encouragement to take their first or next steps necessary to turn their ideas into a reality.

At the beginning of each meeting, new attendees are able to introduce themselves and ask financing, business, licensing, marketing, legal and engineering questions.  They can present their ideas to private individuals or for focus group review.  They also get to ask for particular resources they are looking for so their needs can be matched.  During the “Who Needs Who?” portion of the meeting, service providers can personally introduce their services.

Inventors can pay $100 for a one-year membership or pay $10 for each meeting they attend. During the course of the year, program topics cover everything subject you need to know from capturing the concept to getting investors to marketing your product.

The 2018 contestants were:

  • Andrew Bataller,  iPad Case  
  • Gerry Klassen, New Painting Tool
  • Phillip Perez for his Impact Tool shovel
  • Eric Robinson for his Green Launch orbital launch service
  • Michael Rodgers, The One-Handed Hamper
  • Dave Schmoyer, Pill or Parts Pal
  • Scott Swaaley, MAKESafe Power Tool Brake
  • Greg Wawrzyniak, Super Dooper Cord Looper
  • Chris Wzysoczanski, T-Shots – Disposable Reactive Target
  • Ruth Young-Loaeza for her hybrid sheet collection

  The First Prize of $1000 was won by Phillip Perez for his Impact Tool shovel. Second place was Ruth Young-Loaeza for her hybrid sheet collection, and third place was Eric Robinson for his Green Launch orbital launch service.

At the end of the meeting, SDIF Chairman Adrian Pelkus said “good-bye” to attendees after 13 years of leading the group.  He said, “I’ve been privileged to meet hundreds of my fellow inventors over the years and mentored so many here in San Diego.  I’ve been delighted to see many of your ideas get to market and honored to have assisted some of you along the way.  I am indeed sad to leave the local community. My plans are to accomplish a lot more for mankind and the environment by working on my large backlog of such projects.

I am especially proud to have play a part in bringing together over 40 inventor clubs around the county into the newly formed organization of inventor club leaders and to have been part of our first meeting with Andrei Iancu, the new director of the USPTO, and participate in meetings with Congressional Representatives in Washington, D. C. to educate them about how the America Invents Act and PTABs are hurting inventors.”

He added, “Thanks to my dear friends that helped me keep SDIF going all these years. Especial thanks to long-time supporters and fellow board members:  Leslie Wagner, David Waller, Sidney Wildesmith, Ben Gage, Judith Balian, Jennifer Joe, and Michele Nash-Hoff.”

Several of the above, including me, gave heartfelt testimonials to Adrian for his brilliant leadership of the group for these many years and wished him continued success with his own inventions.

Adrian announced that he was also dropping off the board of directors for U. S. Inventors and the United Inventors of America, but he urged everyone to continue to support patent reform.  He reminded everyone that we need strong intellectual property laws to defend their innovations.  He said, “The patent laws have become so weak that the independent inventor can no longer count on an issued patent to protect his right to profit from the labors of their mind. This strikes at the heart of what our founding fathers knew was the way to make the country great and made a foundation Article in the US constitution. We American Independent Inventors must stand and demand our rights be restored. Our nation needs us to create the new ideas and subsequent new jobs to continue to grow and thrive. The present patent laws must be revised to bring back the confidence a patent brings to both the inventor and investor.”

He encouraged everyone to see the movie Invalidated: The Shredding of the US Patent System, if they didn’t attend the SDIF viewing in August. The movie raises public awareness of the problems inventors are having with the patent system. (Note: You can also see the documentary on Amazon, free with Amazon Prime subscription, or $2 otherwise.)

In this session of Congress, there have been bills introduced to the House of Representatives and Senate to protect inventors’ patent rights, such as the STRONGER Patents Act 2017 (S. 1390), introduced by Senator Christopher A Coons  (D-DE), and the Inventor Protection Act  (H. R. 6557), sponsored by Rep. Dana Rohrabacher (R-CA). The most comprehensive BILL is the Restoring American Leadership in Innovation Act of 2018 (H.R. 6264)introduced by Congressman Thomas Massie (R-KY), an award-winning inventor and successful entrepreneur himself. It is co-sponsored by Congresswoman Marcy Kaptur (D-OH) and Congressman Dana Rohrabacher (R-CA). Its goal is to roll back some of the “worst parts” of the America Invents Act of 2011 and reverts patents back to first to invent, not the first inventor to file. All three bills are stuck in the Judiciary Committee.

I encourage you to contact your Congressional Representative to urge them to become a co-sponsor of one or all of the bills mentioned above. These bills must not languish in committee for the rest of this session.  We must pass legislation to restore our once great American patent system that was the envy of the world. Right now, inventors in China have more protection for their patents than inventors in the U.S.  We cannot let China become the innovation leader of the world.

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Training for Skills and Lean are Important to San Marcos Region Companies

Wednesday, July 11th, 2018

My time in San Marcos, Texas included visits to more traditional companies, such as Mensor. On my first day, we met with Jason Otto, President of Mensor. He told me that he has been with the company for more than two decades, starting as an engineer, before moving up the management chain as product manager, director of sales, and other positions before becoming President.

He said, “Mensor was started in Houston in 1968 by Jerry Fruit and a small group of engineers from Texas Instruments. Jerry had an idea for designing and manufacturing precision pressure measuring and pressure calibration instruments and systems. The company shipped their first product, a quartz manometer for the aerospace industry, in 1970 and most of the company’s business was government contracts.

The company relocated to San Marcos in 1978, but in 1981, our building caught fire and burned to the ground. The company kept going with the help of vendors and customers while a new 26,000 sq. ft. building was built on the same site in only five months.  The employees kept their jobs by actually working to help build the new building.

Otto explained, “We acquired our control line of products from Texas Instruments and introduced new controller products in 1983, 1992, and 1997. We introduced a Quartz Pressure Calibrator in 2001, and the modern CPC6000 Automated Pressure Calibrator in 2004.

In 2006, we were acquired by WIKA Alexander Wiegand SE & Co. KG, a very large privately held company in Germany, with a U. S. facility in Lawrenceville, Ga. It was time for the owners of the company to “cash out,” and it was a smooth transition.

Our core competency is pressure sensor accuracy, and it is a very niche market.  It is tricky to hire talent, so we have to hire from competitors, as well as engineering graduates.  Texas State University, Texas A &M, and the University of Texas in San Antonio and Austin have provided many of our new engineers.  We also need calibration lab technicians, people skilled in technical assembly, as well as machinists for our in-house machine shop. We haven’t had any trouble hiring machinists.

I asked if the company has been through training in Lean Six Sigma, and he said, “Our Lean training started after our acquisition by WIKA. We currently have two Lean Six Sigma Black Belts, who do about 6 -8 kaizen events per year.  We practice 5S and use QCSD boards for visual management of teams. We put together cross functional teams, use cellular assembly, and have a vendor qualification program. We have never outsourced any of our manufacturing overseas, but we have customers in China and Malaysia. We use the WIKA global sales team, but use manufacturers reps to sell into Mexico and the maquilas because it is a long sales cycle. WIKA has 48 locations around the world, and as part of the WIKA Calibration Line, we represent about 6 percent of the company’s business.”

Next, we met with John Malik, General Manager of Altra Couplings in San Marcos. Malik said, “I grew up working in my dad’s auto parts store. I have been with the company since I graduated with an engineering degree and have survived three sets of company owners.  The company was started in Houston and moved to San Marcos in the early 1980s. We were sold to TH Woods in 1990, and then sold to ATR Inc. in 2007, whose corporate headquarters is located in Santa Ana, Calif. ATR has 28 plants and production facilities around the world, with seven locations in the U. S. We have about 120 employees currently.”

Malik explained, “We are a leading global designer, producer and marketer of a wide range of mechanical power transmission components. Our products control and transmit power and torque in virtually any industrial application involving movement and are sold in more than 70 countries worldwide in industries including: energy, general industrial, material handling, metals, mining, specialty machinery, transportation, and turf and garden. Our portfolio of products includes clutches, brakes, couplings, as well as gearing and power transmission components. However, we don’t do any high-volume couplings for the automotive industry.

When I asked about Lean, he said, “We have a team of company employees who have helped us become lean, and the productive gains are essential. It really comes down to asset utilization of people assets and capital assets.  You want to keep them adding value continuously. The approach we have taken is a value stream approach to our products. We go narrow and deep in an area and develop it, and then move on to another area.”

Malik added, “We have even implemented Lean Accounting.  I spent a lot of time with engineers to understand the true costs. We have some good decision rules for the “make or buy” decision process.  Our biggest promoter is our CFO, but our Lean program goes all the way to the top.”

I asked what Altra’s biggest problem is, and Malik responded, “Finding new employees. This is an area that doesn’t have a long tradition in manufacturing. People don’t know what manufacturing looks like, and the mind set for years has been getting a college degree rather than vocational training.   There are never enough trained applicants, so we train our own workers. We now have second and third generation workers. It is a lot about how we treat people and the opportunities for growth.”

He added, “We make all our own castings in our Erie, Penn. plant and buy the forgings we need.  We have three manufacturing facilities in the U.S. and have a plant in the U.K. We bought a company in Germany and have a plant in China.  That plant makes some parts for us, and we make some parts for them.  We also have a small facility in Brazil in order to have local content and avoid the high tariffs.”

On my last day in San Marcos, we visited CFAN, which was formed in 1993, as a 50/50 Joint Venture between GE Aviation and Saffron (SNECMA) of France. The partnership was created to introduce composite fan blades in a GE90 engine that powers the Boeing 777.  CFAN has leveraged the success of this product to introduce additional fan blades on the GEnx engines that power the Boeing 787 and Boeing 747-8.

We met with Mo Mattocks, who is the President and Plant Manager for CFAN. He is responsible for all plant operations including over 500 employees executing product delivery, quality, and productivity, as well as plant financial results and personnel safety. Mattocks said, “I am originally from New York, but graduated for the University of Michigan and Georgia Tech. I have worked for GE for 21 years and previously worked at the GE Aviation in Kansas City and Atlanta.”

He explained, ”CFAN successfully transferred the composite fan blade manufacturing process from the laboratory to the shop floor and delivered the first production GE90-94B fan blade in September 1994.  At first, our quality level was only about 80 percent, so there were a lot of rejects. We kept improving our processes using the widely recognized Six-Sigma methodology, focusing on eliminating defects and reducing variation in shop floor. Over the years, we kept improving our processes, so that our scrap rate is down to only about 1 percent.

In 2001, we started production of the composite fan blade for the GE90-115B growth engine. The GEnx1B fan blade was introduced to production in 2005 and the GEnx2B in 2007. In 2016, we started to make fan blades for the GE9nx, which had its first test flight last week. We are an approved FAA repair station for the GE90 and GEnx fan blades fan.  We have doubled our volume since 2009 and have produced more than 20,000 composite fan blades at our plant. We produce about 165 fan blades per week, and each fan blade takes about 340 hours. We expanded the plant from 160,000 sq. ft. to 275,000 sq. ft., and the whole plant is temperature controlled to keep the composite material from “curing” on hot days.”

I told Mr. Mattocks that in the past, I sold composite parts as a sales rep for a company located in Post Falls, Idaho so am familiar with the painstaking production methods used for pre-preg layup composite parts. When we walked the plant floor to see the whole production cycle from start to finish, I could see how meticulous the hand layup process is for these very critically dimensioned fan blades. It would be too tedious to describe the whole production process from start-to-finish, but the number of steps it takes to produce a finished fan blade was mind-boggling.

My last stop before leaving the San Marcos region to spend the weekend with my nephew and his family at their nearby ranch was to RSI Inc., located in Kyle, Texas. We met with President Harish Malkani, who founded the company in 1983. Malkani is originally from India where he earned a B.S. (Chemistry) from the University of Poona. He also received a degree in Chemical Engineering from the University of California at Berkeley and a Graduate Degree in Marketing from the University of California at Berkeley. He was employed with Ray Chem Corp. from 1969 to 1983.

While RSI’s website describes the company as distributor stocking and supplying standard mil-spec products including, but not limited to high-speed interconnect solutions and a wide range of electro-mechanical components, Malkani said, “I started the company as a distributor but over the years we became a value-added manufacturer. I can’t tell you about all of the defense and military programs for which we have used our expertise to provide solutions to the government and defense contractors because they were classified programs. We specialize in providing RFI/EMI solutions. We have done work for BAE, Lockheed, Raytheon, Aerojet, and other Department of Defense prime contractors.  We are a Silver certified supplier for Boeing. We also do work for companies in the energy, industrial, transportation, and the oil and gas industries.”

When we toured the shop floor, I could see that the company has the manufacturing, assembly, and test equipment to produce custom assemblies and systems for a variety of applications.

Malkani noted, “Our biggest problem is getting qualified workers.  I have hired from Texas State University, but I need more help in finding people with technical skills who are not engineers.  We are going to train some teachers at the local high school in our technology.”

He was assured by Dr. Cara DiMattina-Ryan, Director of Existing Business & Workforce Development at the Greater San Marcos Partnership (GSMP) that they would help him get connected to the local programs at the Austin Community College’s local Hays Campus.

Since finding technical skilled workers is critical to all of the companies I visited, I was happy that my hosts arranged for me to have lunch the first day with Dr. Hector Aguilar, who is the Executive Dean of Austin Community College’s Continuing Education division. He said, “Maintaining a talented and productive workforce in a growing local economy requires a commitment to employee development. ACC meets the training needs of businesses by partnering with them to tailor a custom learning curriculum that can be delivered on-site to employees. We have seven campuses in the western Austin region and have about 60,000 students enrolled.  Each community college in the Texas system specializes in training for the types of industries in their area. Houston specializes in oil and gas. Austin specializes in semiconductor, aeronautical, and sensor industries, and San Antonio specializes in training for automotive. “

He explained, “The Texas Workforce Commission is responsible for helping companies get training for their employees, and Texas pays for the training. Samsung was the first large manufacturing company for which we provided training when they came to the region. They received a grant of $3 million for the training. Samsung came up with 12 techniques to be taught in an around the clock program under a three-year program (24-hours a day, seven days a week).  The original 12 topics became 63 topics, and we trained 1,530 employees in the three years. We had to hire specialists in industries and then cross-train each one so they could teach multiple topics. We did a pre-test and post-test for students. The average pre-test score is 20 percent, and the average post-test score is 85 percent.

He added, “Under our Workforce Solutions Rural Capital Area, training for future employees is provided for free.  For example, when EPIC Piping bought an existing facility in San Marcos in 2014, they needed to hire new employees. They do specialized welding of pipes. GSMP came to us to help set up training for new employees.”

I was informed by Ashley Gossen, Vice President of Marketing & Communications for GSMP that underemployment is high in the region – a selling point for companies looking for talent. She said that the greater San Marcos region has more than 5,400 workers with bachelor or graduate degrees working in jobs that don’t require them.

It is obvious that the San Marcos region has a great deal to offer startup, existing, and transplant manufacturers: a good business climate, low taxes, skilled workers, and the educational facilities and programs to train new workers.

 

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New Material Technologies Spur Growth in San Marcos, Texas Region

Thursday, June 21st, 2018

During my visit to San Marcos in March, I visited a diverse group of manufacturers both as to products and size of company.  The first company I visited, Urban Mining Company, is still in Austin waiting to relocate to San Marcos when their 100,000-square-foot building is ready later this year.

Right after being picked up from the airport by my hosts, we met with Scott Dunn, who is the CEO of Urban Mining Company. Dunn said that he had attended the United States Naval Academy and then received a degree from the University of Southern California. He said, “I started the company in late 2015, and we moved into our first space in January 2016.

We sought major investors from around the county because we wanted to be able to commercialize our technology very quickly. Out of 90-100 investor groups, there were only a few that fit our bill.  We spent a lot of time and money protecting our Intellectual Property with patents. We knew that we had original technology and had to be able to protect it. In June 2016, we secured $25M Series A Funding for to build our recycled rare earth magnet manufacturing facility.  After careful consideration, we chose San Marcos because it offers the skilled workforce and infrastructure needed to support our fast-growing operation. Once the facility is complete, we will be adding more than 100 manufacturing and technology jobs to the region.”

He explained, “I spent a lot of time in China to build relationships and skills to be able to buy down time from factory owners in China that had over capacity. Because of where we are right now, we are able to get a supply of components to use for recycling the rare earth materials. We are the only company producing Neodymium Iron Boron (Nd-Fe-B) rare earth permanent magnets in the United States. Our company’s patented Magnet-to-Magnet process repurposes domestic source materials from end-of-life products, such as hard disks or motors, to manufacture high-performance Nd-Fe-B magnets, using zero chemical inputs and wastewater. The magnets are then used to support the development of technology applications across the consumer, medicine, defense, aerospace, clean energy, and industrial sectors.

He added, “Most people don’t understand the ubiquity of magnets. The only rare earth mine and production facility in the U. S., MolyCorp Inc., went into bankruptcy in 2010, and the assets were bought by Chinalco’s subsidiary, Shenghe Resources in 2011.  The equipment was dismantled and moved China.  It’s critical that we develop this technology because China has the goal of controlling the supply of rare earth products by 2025.  If they succeed, then they could control the world. “

He concluded, “We are working with Tesla, GM, Ford, and many other OEMs like Raytheon, Northrop Grumman, and Boeing to develop products for the commercial and military/defense industries. I believe that reusing rare magnets is critical to a cleaner future, and we have created a closed loop supply chain to upcycle these materials into products that can have a positive impact.”

When we visited Texas State University’s incubator, STAR Park, we met with Dr. John C. Carrano, founder and CEO of Paratus Diagnostics, a firm that specializes in medical devices for point-of-care diagnostics.

 I asked Dr. Carrano how long he has been in the incubator. He responded, “We have been here just over two and a half years, but I actually founded the company in 2012. We are well past the startup phase and are about 18 months away from being cash positive. It’s a long and complex product development cycle for medical devices. Medical diagnostics is not viewed by investors as a get-rich-quick kind of venture, but it is going to be a $10 billion industry in the future. “

I asked him about his background that led him to start the company, and he said, “I retired from the Army in 2005 after 24 years. I am originally from Long Island, NY, but obtained my B.S. from West Point and my Ph.D. in Electrical Engineering from the University of Texas at Austin. I was recruited to teach at the United States Military Academy at West Point in the Department of Electrical Engineering and Computer Science. Then, I was recruited to be a program manager at DARPA where I led several major Defense Department programs related to bio-sensing after the Anthrax attacks occurred in Washington, D. C.  Prior to founding Paratus, I was Vice President of Research and Development at Luminex Corporation., a medical device company, and developed an implantable device to diagnose a medical threat.

He explained, “Our goal as Paratus Diagnostics is to develop point-of-care diagnostic solutions to make healthcare more accessible and affordable. Our hand-held Paratus PreparedNow® System and the ParatusSDS® Cartridge, allows clinicians to make decisions during a patient visit – resolving issues associated with lengthy delays waiting on lab results and improving patient outcomes. There is a big need to diagnose periodontal gum disease because of the serious health consequences if it goes untreated, so our first diagnostic test will be a periodontal test as there is zero competition in this market. Our device tests for the six highest risk periodontal pathogens and two key cytokines using saliva.  The results are provided in 20 minutes and displayed on a smart phone by color bar graphs.

We have 26 full-time employees and will probably be up to 37 by year end.  We have raised $5 million in private equity from angel investors. We also have grants and plan to launch the product into the marketplace in about 18 months.”

At the STAR Park incubator, we also met with Tim Burbey, President of Blueshift Materials.

He said, “Dr. Garrett Poe and I founded the company in 2013 with the mission to commercialize Polymer Aerogels. In July 2014, we became a member of the FLEXcon Holdings family of companies. In 2015, we officially launched our AeroZero® line of products, which consisted of rolled film and monoliths. This was the first commercially available Polyimide Aerogel in the world. Its creation derived from customer demand for a clean, lightweight, small footprint insulation material that can easily be incorporated into composites. We wanted to be ale to make the material in a continuous way as it had always been done in a batch process. We call the products aerogels because they are similar to a foam and are 85% air.  It starts out as a polyimide resin and through a proprietary process, it is transformed into the various aerogel products.”

He said, we moved into the STAR Park incubator in the fall of 2016 and also have an applications engineering lab facility in New Braunfels, TX (about 20 miles southwest). We also polymerize our own materials from polyimide at our facility in San Antonio, TX. We have a good relationship with the Materials Science, Engineering, and Commercialization (MSEC) program at Texas State University and have hired graduates.”

He showed me several different shapes and styles of the products they can make now, from blocks to film to powder. It had good properties for thermal management. Since it is 100% plastic, it is very good for incorporating into composites.

He explained, “Our product designs have applications across the aerospace, cryogenic, membrane separation, radio frequency, electronics, and automotive industries. We make a film for a Formula One race car by adding it to Kapton.  We work with a lot of electronics and RF product companies. Our materials have RF transparency, so will allow signals to go through, but they also provide thermal management.  Our polymer aerogels can withstand extremes of temperature from as hot as 300 degrees C down to as cold as -200 degrees C. Our polymer aerogel has a high strength to weight ratio, especially when bonded to other materials and as a composite core. Our new process for make aerogel film will only take minutes to make vs. weeks, which will greatly reduce cost and open new markets.”

He added, “We are developing new products by teaming with a research company in Palo Alto to look at using different polymers besides polyimide. In June 2016, we got a $3 million Department of Energy DOE grant to develop transparent and thermally insulating Aerogel for single pane windows as part of a project to restore historic windows in the Northeast.”

On the second day of my trip I also met with Paul Brown, President of Bautex Systems LLC, which is focused on transforming the building industry by providing builders and architects with smarter, stronger, more versatile building materials and solutions. He is a serial entrepreneur, who earned his undergraduate degree from the Plan II honors program at The University of Texas at Austin and his MBA at Duke University’s Fuqua School of Business. He has enjoyed a diverse career working in industries ranging from technology and telecommunications to construction products.

He said, “I had moved back to Austin, TX during the dot.com bust and was involved in a VOIP company. I love to build and started building houses.  I found a technology very similar to the Bautex technology,” and he invested in the company. But, he wanted to do manufacturing in the right way, and that company needed a better manufacturing process. “Oliver Lee is my business partner, and we did the original research in 2007.

We found the right machine in Europe, so in 2008, we had some custom molds made and took them over to Europe. We rented factory time for two weeks and replaced the wood filler with polystyrene to make blocks. We mixed the ingredients together and poured it into the mold.  It was an expensive and slow process. We added sand to the blocks and reduced cycle time to 30 seconds to make four 32 X 16-inch blocks in the mold. We had a goal of a weight of less than 50 lbs.

We spent a couple of years doing R & D before we moved to San Marcos, TX. We started shipping products in 2013 and now have six plants along the I-35 corridor.”

He explained, “The Bautex Wall System, comprised of a proprietary cement mixture and expanded polystyrene (EPS), is used to build interior and exterior walls for commercial and residential construction. The benefits to the contractor is that it is complete system that simplifies construction by combining structure, enclosure, continuous insulation, and air and moisture protection in a single, integrated assembly. With the Bautex Wall System, architects can specify an integrated solution that can be installed by a single contractor, saving time, effort and cost.  We are two and a half times what the new building energy codes started requiring in 2016.  Our system provides 26% more energy savings.”

He said, “We need a new paradigm for construction in this country. The process of building has to be better. When you analyze building construction, 90% of the work to build a house is non-value-added.  We need to reduce the costs of construction, and the buildings need to perform better. We had five buildings that were within five miles of Hurricane Harvey, and they did well.”

He added, “Six of the ten fastest growing counties are in Texas, but the access to labor for the construction industry is not here. There is a shortage of masons in Texas. Panelization in construction is appealing to a new generation of contractors.  His concern with panelization is that the industry has stayed with the same old technology. In 2020, a new building code will take effect, and each code changes pushes the bar higher.

We are now building one- to three-story buildings, and we can build faster than traditional construction methods using our Bautex Wall System. We have been nearly 99% commercial, but now we are going after residential work.“

Notice that three of the four companies we visited have developed products using new materials for diverse applications. These companies are examples of the spillover of research in technologies related to the MSEC program at Texas State University.

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