Business Operations

Business Operations

Manufacturers Make Cybersecurity Central to Industry Culture

As rapid technological innovation sweeps across the manufacturing industry, cybersecurity has become a top priority. David Brousell, Vice President and Executive Director of the Manufacturing Leadership Council—the world’s first member-driven, global business leadership network dedicated to senior executives in the manufacturing industry—explains the importance of cybersecurity and what manufacturers are doing to combat global threats in the digital age.

Why is cybersecurity important for modern manufacturing?

Manufacturers are using cutting-edge digital technology to a greater degree than ever before. We’re putting sensors in equipment, digitizing supply chains and gathering data from customers to better the customer experience, to name just a few examples. The number of electronic connections we’re making is enormous—and the more you electronically link products and processes, the more vulnerable they become to cyberattacks.

What are the impacts of cyberattacks?

When we talk about cybersecurity, we’re not just talking about people trying to steal intellectual property. We’re also talking about attacks that target business operations, which can actually bring business to a halt. Manufacturers need to be able to guard against these attacks across the board in order to do their own innovative, cutting-edge work and to deliver for customers in the United States and around the world. That’s why manufacturers must invest in developing solutions that can stand strong against even the most sophisticated assault.

What are some of the challenges manufacturers face in cybersecurity?

The number one challenge is the increase in attacks. We do a lot of survey work among manufacturers of the Manufacturing Leadership Council, and the overwhelming majority of survey participants say they’re expecting more attacks in the year ahead. Just keeping up with the sheer volume of attacks is a big issue for manufacturing companies—large and small alike. This isn’t just an issue for multibillion-dollar enterprises. Cybersecurity is everyone’s concern.

What are manufacturers doing in the cybersecurity space to keep their work secure?

We’re taking a variety of actions. We’re continuing to invest in technology. We’re training people to understand best behaviors and best practices. And we’re trying to protect more and more on a systems level. For example, some companies are housing their information in the cloud because they feel that there are greater protections in a cloud environment than in a system on their own premises.

Most importantly, though, companies are adopting cybersecurity as a cultural discipline and making cybersecurity part of their business’ DNA and culture. Over many decades, manufacturers have made physical safety a well-honed science. Now we have to raise cybersecurity up to that level of safety if we’re going to bring it under control. We talk about how safety is everybody’s business—and now cybersecurity has to become everybody’s business, too.

Business Operations

Honda’s Rick Schostek on Why Companies Should Focus on the Customer

The NAM’s Makers Series is an exclusive interview series featuring creators, innovators and trailblazers in the industry sharing their insights and advice. Each month, we ask founders, executives and leaders of innovative firms what it takes to be a leader for manufacturers and makers in America.

Meet Rick Schostek, Executive Vice President of Honda North America, Inc. In this edition of NAM’s Makers Series, he explains why focusing on the customer is the key to manufacturers’ success.

Workforce

NAM in 5 Photos: Week of Sept. 9

This week, the National Association of Manufacturers helped move the manufacturing industry forward on three major fronts.

VIEW THE PHOTO GALLERY

 

Press Releases

MLC Releases Blueprint for Next Phase of Manufacturing Digitization

Washington, D.C. – The Manufacturing Leadership Council has released a new blueprint to guide manufacturers as they transition to the digital model of doing business. The blueprint, called the 2019/2020 Critical Issues Agenda, is the latest strategic guidance on digital transformation released by the MLC, a division of the National Association of Manufacturers.

The MLC’s mission is to help senior manufacturing executives and emerging leaders define and shape a better future for themselves, their organizations and the industry by focusing on the intersecting business and technology issues driving manufacturing growth. The Critical Issues Agenda encompasses the technology, organizational and leadership requirements of implementing the digital model of modern manufacturing, also known as Manufacturing 4.0.

The agenda covers five categories:

  • Factories of the Future
  • Establishing M4.0 Cultures: Collaborative, Innovative, Integrated and Connected
  • Transformative Technologies in Manufacturing
  • Next-Generation Manufacturing Leadership and the Changing Workforce
  • Manufacturing 4.0 Sustainability

The 2019/2020 Critical Issues Agenda identifies opportunities for manufacturers to become more efficient, more productive and even to develop new business models and services by successfully implementing new digital technologies and practices. These include data entrepreneurship, deploying artificial intelligence, the use of digital twins and providing digital skills training.

For nearly 10 years, our Critical Issues Agenda has proven to be a comprehensive and reliable model for embracing Manufacturing 4.0, said David R. Brousell, Co-Founder of the MLC. But what’s new and important this year is the need for leaders to develop greater digital acumen and for manufacturing organizations to deal with even greater volumes of data from increasingly connected factories and plants. If manufacturers can rise to these challenges, they will go a long way to unleashing the potential of M4.0.

The agenda is the result of a unique member-driven process designed to capture and reflect the views and insights of the MLC’s 1,500-strong executive membership. The resulting agenda is then finalized and approved by the MLC’s Board of Governors.

I am delighted that the MLC’s member-driven process continues to enable us to identify the critical issues that MLC members themselves have defined as most important in their drive to transform their businesses to world-class levels of efficiency and competitiveness, said John Fleming, chairman of the MLC’s Board of Governors and former executive vice president of global manufacturing and labor affairs at Ford Motor Company. The MLC will work tirelessly to deliver thought-leading knowledge and insights around these key transformational issues in the year ahead.

Full descriptions of the 2019/2020 Critical Issues Agenda are available on the MLC’s website and in the August 2019 issue of the Manufacturing Leadership Journal.

-MLC/NAM-

Founded in 2008, and now a division of the National Association of Manufacturers, the Manufacturing Leadership Council’s mission is to inspire and support manufacturing executives to achieve transformational growth for themselves, their companies and the industry at large through enlightened leadership. With more than 1,500 senior-level members from many of the world’s leading manufacturing companies, the MLC focuses on the intersection of advanced digital technologies and the business, identifying growth and improvement opportunities in the operation, organization and leadership of manufacturing enterprises as they pursue their journeys to Manufacturing 4.0.

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

 

Press Releases

National Association of Manufacturers Launches NAM Health Care to Address Member Health Coverage Needs

NAM Offers Association Health Plan for Employers in Select States

ANN ARBOR, MICH. – The National Association of Manufacturers announced today that it will offer an association health plan to its members, extending affordable health care to small and medium-sized manufacturing companies and member associations in approved states. In states where the association health plan is not available, the NAM will connect manufacturers with available small-group options in their state.

“This association health plan is another step in our work to make the NAM a one-stop shop for manufacturing across the United States,” said NAM President and CEO Jay Timmons. “With small and medium-sized businesses making up more than 90 percent of our membership, this plan will help provide health care and reduce uncertainty for workers and their employers across the country.”

The plan, called NAM Health Care (www.namhealthcare.com), was developed to meet manufacturers’ unique health care needs. It will offer a portfolio of health benefits options insured by UnitedHealthcare. In states where these plans are available, businesses with 2 to 99 employees will be able to choose from a variety of PPO (Preferred Provider Organization) and HSA (Health Savings Account) health plans. Members will also have access to UnitedHealthcare’s Choice Plus care provider network of more than 1.2 million physicians and care professionals and 6,500 hospitals and other care facilities nationwide. UnitedHealthcare will work with any licensed or appointed agents who want to sell NAM Health Care.

In addition, Mercer will provide the NAM’s small business members with consulting services regarding health benefits offerings and contribution strategies, marketing support to educate and enroll their employees, plan administration and compliance services. The Mercer Affinity 365+sm platform will provide members technology for quoting, enrollment and ongoing benefits administration to drive cost efficiencies and facilitate employee engagement.

Association health plans allow companies to band together to manage and purchase health care coverage that may save on annual health insurance costs by providing plans that are typically enjoyed by larger companies at a competitive price. Under NAM Health Care, eligible member companies also will have access to supplemental benefits, including dental, vision and life.

“The work that manufacturers are doing every day grows the economy and strengthens our country, and they deserve the health care they need to do that job with certainty and support,” said Timmons. “At the NAM, we are proud to help lower costs and increase competitive health coverage for the men and women who make things in America.”

NAM Health Care is quoting these plans for eligible member groups for a Sept. 1, 2019, enrollment date. To enroll in these plans, where available, interested businesses may visit www.namhealthcare.com.

-NAM-

Business Operations

Greenbrier Companies Doubles Down on Sustainability

In a recent National Association of Manufacturers survey, 80 percent of manufacturers said they had a sustainability policy in place or were developing one. Freight railcar equipment designer and manufacturer The Greenbrier Companies is making strides through innovative sustainable design—from reducing railcar tare weight to efficiently building marine vessels.

“At Greenbrier, we pride ourselves on manufacturing among the most environmentally friendly forms of transportation while simultaneously improving our production processes and engineering designs,” said Jack Isselmann, Senior Vice President, External Affairs & Communications. “This promotes long-term sustainability across the transportation and shipping industries.”

These innovations present exciting opportunities for long-term progress. Greenbrier has introduced innovative railcar designs since 1985, beginning with the double-stack intermodal unit. Prior to its inception, the number of trailer-equivalent units per train maxed out at 120. With the ability to stack two units per railcar, that number quickly grew to over 200 units per train, saving space, time and money.

In addition, Greenbrier aims to make its operations more efficient by minimizing the weight and length of an individual railcar while simultaneously increasing its volume, allowing for more railcar units per train. Through a process called articulation—which reduces the weight of one railcar by making it share axles with another—Greenbrier is decreasing the space between railcars, ensuring that more may be included in trains and allowing for greater efficiency through a larger volume of transported products. Additionally, articulation increases braking efficiencies, which reduces fuel usage and greenhouse gas emissions.

“Manufacturers across the country are making operational changes that promote sustainability and prioritize our environment,” said Laura Berkey-Ames, Director of Resources and Energy Policy at the National Association of Manufacturers. “With 12 million employees throughout all 50 states, the manufacturing industry understands the positive impact our sustainability efforts can have—and we are committed to setting an example for other industries nationwide.”

For more information on Greenbrier’s approach to corporate responsibility, see its inaugural Environmental, Social and Governance report.

Business Operations

PPG’s CEO on Building a Successful Sustainability Program

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The NAM’s Makers Series is an exclusive interview series featuring creators, innovators and trailblazers in the industry sharing their insights and advice. Each month, we ask founders, executives and leaders of innovative firms what it takes to be a leader for manufacturers and makers in America. For more, continue to visit NAM.org.

Meet Michael McGarry, chairman and CEO of PPG. In this edition of NAM’s Makers Series, he explains how PPG prioritizes sustainability and connects with communities.

Business Operations

Range Resources Gives Back With Butterfly Enhancement Project

“Habitat enhancement provides something the public can see and benefit from.”

Natural gas producer Range Resources aims to better the environment with its new, unique habitat enhancement commitment. On land that once hosted sites related to natural gas development, Range Resources’ Habitat Enhancement program is working to help animal pollinators in southwestern Pennsylvania like Monarch butterflies and honey bees by covering final reclamation sites with plants that are essential for them to thrive.

“We try to be good stewards in our community by supporting projects like these,” said Jeremy Matinko, Range’s Environmental Compliance Manager. “Habitat enhancement provides something the public can see and benefit from.”

After surface operations have ended at a site, Pennsylvania regulations require the site to be restored to its original state. Range has pledged to exceed those expectations in post-drilling restoration, creating habitats that are more hospitable to wildlife than the previous environment. This project has involved planting thousands of Milkweed seeds, a plant that is vital to the survival of monarch butterflies because it provides a food source for caterpillars, and a seed mix that includes grass and wild flowers that support honey bees and other helpful insects. Beyond bringing pollinators back to southwestern Pennsylvania, the company is also creating aquatic features that can become homes for reptiles, amphibians and waterfowl.

According to the United States Department of Agriculture, about 35 percent of the world’s food crops depend on animal pollinators to reproduce, but as a result of climate change and human living practices, the habitats of these pollinators have been on the decline. Range Resources’ project aims to reverse that trend. Already, the impact of the program can be seen through the growth of a variety of pollinator plant species and the presence of butterflies, bees and other pollinators across these sites. And while Range Resources is currently implementing the program only on final reclamation sites, it hopes to expand their efforts to include post-drilling restoration.

“Manufacturers across the country are taking proactive and creative steps to improve the environment and enhance their communities,” said National Association of Manufacturers Director of Energy and Resources Policy Laura Berkey-Ames. “The work that Range Resources is doing to build and improve natural habitats in Pennsylvania is an exciting part of that effort. We’re looking forward to seeing continued results as this project grows.”

Press Releases

NAM Announces Winners of “Best Manufacturing Associations to Work For” Awards

Ten Associations to Be Honored at Council of Manufacturing Associations’ August Conference

Washington, D.C. – The National Association of Manufacturers’ Council of Manufacturing Associations has announced that 10 trade associations will be recognized with the “Best Manufacturing Associations to Work For” Awards. Winners will be honored at the CMA’s 2019 Summer Leadership Conference in Charleston, South Carolina, this August.

The 10 associations are as follows:
• National Association of Chemical Distributors
• PMMI: The Association for Packaging and Processing Technologies
• Association of Home Appliance Manufacturers
• Plastics Industry Association
• Fabricators & Manufacturers Association, International
• Irrigation Association
• The Fertilizer Institute
• Association for Unmanned Vehicle Systems International
• American Fuel & Petrochemical Manufacturers
• Institute of Scrap Recycling Industries

Congratulations to these stellar organizations. They are setting a high standard for the entire business advocacy community. And they have demonstrated a commitment to building inclusive, engaging workplaces—something that manufacturers strive to do across the country, said NAM President and CEO Jay Timmons. Through the CMA, the NAM is helping manufacturing associations cultivate the environments that empower all of us to succeed in our work on behalf of the men and women who make things in America.

It is exciting to see these associations named to this list—some for the second year in a row, said CMA Executive Director Tonya Muse. I am happy the CMA can play a role in recognizing the amazing and creative things manufacturing associations are doing to recruit and retain top talent.

The CMA has partnered with Best Companies Group, an independent research firm specializing in identifying great places to work, in order to highlight manufacturing associations that go above and beyond for their employees. In addition to getting highlighted by the CMA, the award offers significant organizational benefits, including heightened company pride, improved employee morale and retention and public relations and marketing advantages. Each organization will also receive an anonymous feedback report to help identify and analyze new opportunities to improve their workplace.

The CMA is made up of more than 260 manufacturing trade associations that work together on behalf of manufacturing in the United States. Through their membership, the NAM provides knowledge, resources and a great network to help these association CEOs create a stronger and more prosperous manufacturing sector.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org

Press Releases

Manufacturing Leadership Awards Program Honors 2019 Top Industry Innovators

Smart Manufacturing Icon Jim Davis, IBM’s Ron Castro, Merck, LION-Vallen Industries Honored with Top Awards

Huntington Beach, CA – At the 15th Annual Manufacturing Leadership Awards Gala, the National Association of Manufacturers’ Manufacturing Leadership Council recognized the winners of the 2019 ML Awards for their outstanding manufacturing achievements.

The program’s distinguished panel of expert judges honored Ron Castro, IBM’s supply chain vice president and chief supply chain officer, as the Manufacturing Leader of the Year for his successful, comprehensive efforts to drive the adoption of Manufacturing 4.0 technologies across IBM and its supplier ecosystem and build the world’s first cognitive supply chain.

Merck & Co, Inc. was selected as Manufacturer of the Year in the Large Enterprise category. The ML Awards judging panel selected Merck for this prestigious award in recognition of its transformation to a Manufacturing 4.0 leader. Judges specifically cited Merck’s multiyear push to broadly embrace additive manufacturing technologies and its successful use of drone technology to deliver much-needed medicines to disaster-affected areas.

LION-Vallen Industries was named Manufacturer of the Year in the Small/Medium Enterprise category. LION-Vallen Industries is a maker of personal protective equipment for first responders and war fighters. The ML Awards judging panel recognized the company’s success in transforming its supply chain performance while investing in upgrades to its workforce and leadership capabilities to become dramatically more competitive.

The top winners of the 2019 Manufacturing Leadership Awards are stellar examples of the ways modern manufacturers are driving innovation, and they demonstrate the power of adopting Manufacturing 4.0 technologies, said MLC Co-Founder David Brousell. I congratulate these manufacturers and the leadership teams that made their achievements possible.

Also honored at the ML Awards Gala was Jim Davis, vice provost of information technology and chief academic technology officer at UCLA and the principal investigator and principal CIO adviser at the Clean Energy Smart Manufacturing Innovation Institute. The MLC’s Board of Governors recognized Davis for his 45-year career advancing technology-based engineering research and application, including his pioneering work defining and advocating the concept of smart manufacturing.

Nine recipients of ML High Achiever Awards were also announced. The High Achiever Awards are presented to a select group of ML Award–winning projects. These ML Award winners received the most votes from the judges in each of the nine ML Award project categories.

High Achiever Award Winners:
• Cisco Systems, Inc. in the Artificial Intelligence and Analytics Leadership category for its Fully Connected Customer Experience Project
• Samtec, Inc. in the Collaborative Innovation Leadership category for its Electronic Component Configurator with Instant Digital Samples Project
• IBM Corp. in the Engineering and Production Technology Leadership category for its Systems Hardware Design for Excellence Process Project
• Lockheed Martin in the Enterprise Integration Technology Leadership category for its shop floor management of the company’s Smart Digital Factory Project
• Kamco Industries, a subsidiary of Kumi Kasei, in the Industrial Internet of Things Leadership category for its Operations Automation Project
• Starkey Hearing Technologies in the Operational Excellence Leadership category for its Customer Experience Mapping and Improvement Project
• Merck & Co., Inc. in the Supply Chain Leadership category for Project Ivan: Drone Delivery Initiative
• Oracle in the Sustainability Leadership category for its Take-Back Sustainability Program
• The Raymond Corp. in the Talent Management Leadership category for its Virtual Reality Simulator Project

Winners of the ML Partner Awards were also recognized. These technology providers played key roles in helping many ML Award winners achieve outstanding performance.

ML Partner Award Winners:
Predictronics, CADENAS PARTsolutions, FORCAM, Infor, Plex Systems, Oracle, Epicor Software Corporation, Tata Consultancy Services and Dassault Systèmes.

-MLC/NAM-

Founded in 2008, and now a division of the National Association of Manufacturers, the Manufacturing Leadership Council’s mission is to inspire and support manufacturing executives to achieve transformational growth for themselves, their companies and the industry at large through enlightened leadership. With more than 1,500 senior-level members from many of the world’s leading manufacturing companies, the MLC focuses on the intersection of advanced digital technologies and the business, identifying growth and improvement opportunities in the operation, organization and leadership of manufacturing enterprises as they pursue their journeys to Manufacturing 4.0.

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org

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