U.S. manufacturers have experienced record growth over the past couple years, but certainty on a wide portfolio of issues, from infrastructure to trade, will be critical to keep that growth sustained throughout 2019. For policymakers in Washington, the May jobs reported should make that clear.
According to the latest Bureau of Labor Statistics jobs data, the U.S. economy created just 75,000 new jobs in May, with a sluggish 3,000 manufacturing jobs created for the month.
“Manufacturing employment has been more sluggish than desired for four straight months, coinciding with weaker demand and production activity and lagging behind the robust pace we experienced last year,” NAM Chief Economist Chad Moutray said. “Indeed, manufacturers created 264,000 net new jobs in 2018, the best pace of employment growth in the sector since 1997. Yet, the sector has added only 13,000 employees since February. For those numbers to pick back up, our leaders in Washington must recommit to tackling the issues currently creating uncertainty for businesses and focus on policies aimed at sustaining the vigorous growth the industry saw last year.”
Employment has not been the only indicator that’s lagged behind. Earlier this week, the Institute for Supply Management® said manufacturing activity in May expanded at its slowest pace since October 2016; whereas the competing survey from IHS Markit reflected growth that was the weakest pace in nearly a decade. In addition, manufacturing production has fallen in three of the past four months.
“Manufacturers need certainty,” Moutray said. “Things like ratifying the USMCA, securing a bilateral trade agreement with China, passing a long-term reauthorization of the Ex-Im Bank and enacting a bipartisan agreement to update our nation’s infrastructure are immediate steps policymakers can take that would greatly benefit the industry long into the future.”
Another factor holding back manufacturing growth is the looming workforce crisis—a challenge which continues to be the top concern for business leaders, especially in a tight labor market. The number of job openings in the sector has remained highly elevated, averaging about a half million per month over the past 12 months.
“At the end of the day, despite lower levels of industry growth, manufacturers are still creating far more open jobs than workers ready to fill them,” Moutray said. “That’s putting a damper on job creation as well.” Overall, the labor market remains tight, with the unemployment rate remaining 3.6 percent, the lowest since December 1969.
The Manufacturing Institute, the NAM’s education and workforce partner, is the leading industry authority on workforce development and recognizes the need to grow the qualified manufacturing workforce and close the skills gap. It has a range of programs and initiatives designed to do just that.
“The future of this industry and our economy at large are both tied to the future of the manufacturing workforce,” said Carolyn Lee, Manufacturing Institute executive director. “It’s just one more reason why we at the Institute work so hard every day to support the manufacturing workforce of today and grow the manufacturing workforce of tomorrow.”
With more than 100,000 employees in the U.S., PepsiCo makes an impact through sustainability initiatives that reach far beyond the brand’s products. Through its Recycle Rally program, PepsiCo offers more than 250 free online resources to students, faculty and school staff members across the country with the goal of increasing recycling rates at schools. Via those resources, Recycle Rally helps schools set recycling goals, track progress toward those goals, earn rewards and compete in contests for cash prizes.
Nearly 6,000 schools have participated in Recycle Rally over the past nine years, collecting more than 320 million plastic bottles and aluminum cans. In 2018, PepsiCo began open-sourcing all of their Recycle Rally resources to the general public which has enabled local communities to take advantage of the Recycle Rally tools, including how to start a green team and host a recycling collection drive. And by encouraging recycling, parents of children in the Recycle Rally program reported not only bringing their containers to the school drop off-site, but also increasing recycling of other materials in their homes.
PepsiCo hasn’t stopped there. In 2018, PepsiCo made a $10 million investment in The Recycling Partnership (TRP) to launch “All In On Recycling,” an industry-wide challenge to raise $25 million to improve recycling for 25 million families. By providing curbside carts to single-family homes, creating infrastructure to collect recyclables from multi-family housing and offering recycling education and operations, PepsiCo’s investment helps to simplify recycling and create stronger, cleaner communities. In Iowa City, for example, PepsiCo’s TRP investment will support the delivery of recycling carts to every household served by their recycling program—expanding curbside recycling to 16,000 households—along with a customized public education campaign designed to help residents recycle better.
“Recycling is an essential part of PepsiCo’s long-term approach to sustainable packaging for our food and beverage products,” said David Lapp, PepsiCo Beverages North America chief supply chain officer. “We work to support recycling wherever we do business, and as a U.S.-based company with significant operations, sales and local presence in cities and towns across the country, we have a special responsibility to do our part for U.S. recycling.”
As part of PepsiCo’s sustainability agenda, the company aims to build a world where plastics never need to become waste. In less than a decade, PepsiCo’s recycling efforts—through partnerships, pilots, large-scale programs and packaging innovation—have helped recycle more than 425 million bottles and cans.
“Sustainability is a real priority for the manufacturing industry as a whole,” said Laura Berkey-Ames, the National Association of Manufacturers’ director of energy and resources policy. “Companies like PepsiCo are doing outstanding work and making critical progress that should serve as an example for other industries looking to be proactive on the issue.”
Since Bosch first established a presence in North America in 1906, the company has been a manufacturing leader in the United States. With 410,000 employees worldwide—and 35,400 in North America—Bosch is keenly aware of their global impact and responsibility. Today, it’s leading on climate action and setting an aggressive target for a bold new initiative: On May 9, Bosch announced that the company will be carbon neutral by 2020.
“Climate action needs to be seen not just as a long-term aspiration—it needs to happen here and now,” said Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH. “As an innovation leader, we want to deliver technological solutions to ecological problems.”
As one of the largest privately-held companies and automotive suppliers in the world, Bosch is well-positioned to make an impact, both through its actions and as a model to other companies. With 400 locations across the globe, Bosch intends to achieve its carbon neutral goal through a four-pronged approach: increasing energy efficiency, expanding proportion of renewables, buying more green power and offsetting carbon emissions. By reaching this goal, Bosch will prevent 3.3 million tons of carbon emissions by 2020—and will be the first major industrial company to reach the carbon-neutral benchmark.
“Our commitment to reducing carbon emissions and climate action is not guided by short-term financial considerations,” said Prof. Stefan Asenkerschbaumer, CFO and deputy chairman of the Bosch board of management, “but takes a much longer-term view.”
As an engineering company, Bosch sees its work in terms of long-range objectives and seeks to understand how even small changes, taken together, can have a significant effect over time. This focus on long-range planning makes it easier to weather fluctuations in the economy and day-to-day business challenges with an eye on achieving larger objectives.
Bosch’s work uses tools that include low pollutant power train technology and artificial intelligence that predictively controls exhaust gas treatment. While most Americans are aware of Bosch through its leadership in consumer goods—from dishwashers to power tools—the company is also a force in sectors like mobility solutions, building technology and industrial equipment. And it is implementing a sustainable model across the board.
“Companies across the manufacturing sector are taking proactive steps to reduce emissions, improve the environment and address climate change,” said Laura Berkey-Ames, National Association of Manufacturers’ director of energy and resources policy. “Bosch’s work is an exciting part of that effort and will help inspire companies in other industries to do their part.”
A new report from The Manufacturing Institute – the workforce and education partner of the National Association of Manufacturers – and PricewaterhouseCoopers suggests that increased automation in manufacturing may come with significant opportunities for workers in the industry.
The report – “Navigating the Fourth Industrial Revolution to the Bottom Line” – examines the ways that systemic changes are impacting the manufacturing industry, from the expansion of robotics to an increased interest in developing connected products. While manufacturers recognize the potential value of advanced technologies – including robotics, the Industrial Internet of Things, cloud computing, advanced analytics, 3D printing, and virtual and augmented reality – the prospect of integrating these new innovations with existing processes has raised questions.
The new report suggests automation may have a significant positive impact for people interested in the manufacturing industry – an increased need for talent to manage in a more automated, flexible production environment and new jobs for workers who can engineer robotics and their operating systems, to name a few opportunities. Rather than taking jobs away from workers, the report’s survey finds that most manufacturers see automation as reinforcing the need for distinctly human abilities.
“This technological shift is moving manufacturers rapidly toward jobs that require irreplaceable human skills, such as creativity, critical thinking, design, innovation, engineering and finance,” said Chad Moutray, Director of The Manufacturing Institute’s Center for Manufacturing Research. “Machines need workers to program, operate and maintain them, and today automation often works alongside workers, especially in the performance of monotonous tasks, which helps free workers to shift their focus to more interesting ones.”
Some of that work will come from existing employees. In fact, the report suggests that most manufacturers are planning to upskill and reskill their current employees on using and managing new technologies. In addition, manufacturers see a need to expand their workforce to include new employees – in part, by identifying and recruiting talented science, technology, engineering, and mathematics students, and by providing outside training at community colleges and through technology vendors in order to prepare potential new workers for roles in modern manufacturing.
“According to the World Economic Forum, we could create 133 million jobs by 2022 if workers are given significant reskilling and the next generation of workers is trained properly,” said Moutray. “Technological change can be a plus for manufacturing workers if we undertake the right approach now.”
All told, about 70 percent of manufacturers say the biggest impact of robotics on the workforce over the next five years will be the increased need for talent to manage in a more automated environment, and for new workers fill important jobs. The Manufacturing Institute has become the leading industry voice in Washington calling for workforce and education policies that bridge the skills gap, and it has a number of programs aimed toward supporting the manufacturing workforce of today and growing the manufacturing workforce of tomorrow.
“Technology isn’t a threat – technology is an enabler,” said Moutray. “It’s actually helping us do our jobs, helping us get to where we need to go, and then enabling that next generation.”
Washington, D.C. – The Manufacturing Leadership Council, a division of the National Association of Manufacturers, has announced the election of Dan Dwight, president, CEO and director of Cooley Group, to the MLC’s Board of Governors. 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 at large by focusing on the intersection of critical business and technology issues that will drive growth today and in the future.
The MLC Board approved Dwight’s nomination in a unanimous vote. With his appointment, the MLC Board of Governors consists of 21 industry thought leaders who represent the full ecosystem of the manufacturing industry. As an advisory body, the MLC Board of Governors provides guidance to the MLC on its “Critical Issues” agenda, research studies and programs and services for the MLC membership.
“I am delighted to welcome Dan to the Board,” said John Fleming, chairman of the MLC Board of Governors. “He has truly established himself as a thought leader who is implementing Manufacturing 4.0. into his business. His hands-on experience will add to the value of the MLC for all of our members.”
“For the past four years, I experienced the value the Council brings to its constituent members by connecting global manufacturers with industry experts who share global best practices and the latest in academic research,” said Dwight. “Joining the Council as a board member is an exciting opportunity to collaborate with other executives and academic leaders in setting the Council’s strategic and operational objectives around Manufacturing 4.0 and beyond.”
Since his appointment as president, CEO and director of Cooley Group in 2011, Dwight successfully repositioned the 90-year-old company around three pillars of sustainable growth (economic prosperity, environmental stewardship and social responsibility) while improving the health, well-being, engagement and ultimately the capacity for innovation of the entire Cooley team. Under his leadership, Cooley has sustained revenue and profitability growth for seven consecutive years. During this time, Cooley generated more than 40 percent of its revenue from new products, won PBN Awards, including “Healthiest Employer of Rhode Island” and “Product Innovation & Design,” and cultivated collaborative partnerships such that more than 70 percent of Cooley’s revenue is managed under long-term customer supply agreements.
The Manufacturing Leadership Board of Governors comprises senior executives and industry experts at leading manufacturing, academic and research organizations around the world, including Lockheed Martin, Procter & Gamble, Ford Motor Company, Dow Chemical, Merck, Cisco Systems, IBM, Germany’s SmartFactory Technology Initiative, Lexmark International, Protolabs, Premio Foods, Virtex Enterprises, S&S Hinge, Graphicast, MIT, UCLA, the University of Cincinnati, the University of Cambridge’s Institute for Manufacturing in the UK, the U.S. National Center for Defense Manufacturing and Machining and consultants Frost & Sullivan. For more information and MLC membership details, visit www.manufacturingleadershipcouncil.com.
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 $2.35 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than two-thirds 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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Laura Mahany doesn’t just serve as a plant manager at Air Liquide. She’s also mentoring women within the organization and recruiting top engineers to increase female presence in manufacturing.
“I usually talk about sitting at a desk all day,” she says. “In manufacturing, you almost never do that.”
When she speaks to other young women on college campuses, she stresses the collaborative environments that manufacturing offers and the opportunities to interact with operators and technicians thatmake her work more interesting and engaging. From these conversations, she’s learned sustainability is an important issue for young people, who have become more vocal about being part of a grand environmental solution. And she has found that one of the biggest challenges for recruiting new manufacturers is simply a lack of visibility.
“When you talk to a child, they always know what a doctor does or a teacher does because they interact with those people,” Laura says. “But it’s not very often that they get to interact with engineers or visit a manufacturing plant.”
While in college, Laura provided some of those interactions herself as a mentor to underprivileged kids learning math and science. Each session involved experiments centered around different subjects and activities, from building roller coasters to making ice cream to using liquid nitrogen. By changing different elements of the experiments and studying how changes affect outcomes, Laura helped drive home scientific concepts – and gave kids a real-life example of what manufacturers do.
“Manufacturing is just a big word to them,” she says. “We need to make it real.”
Laura has learned firsthand how real manufacturing challenges can be. In 2017, she was tasked with preserving operations at her plant in the wake of Hurricane Harvey, and although she and her team evacuated during the hurricane itself, they returned to a scene that she calls “something out of a zombie apocalypse.” Because her plant was critical to the safety of the community – it produced nitrogen, which other industries use to prevent the release of dangerous chemicals – she had to restore operations quickly, even before the local government had given the all-clear for residents to return.
“We had to collaborate with other industries to get what we needed, like cooling water and electricity,” she says. “Luckily, I had good relationships with people at other companies – it really made such cooperation possible.”
Laura credits college internships with convincing her that she was destined for a career in manufacturing. Although she had always had an aptitude for math and science – as a child, she took part in academic competitions to improve her skills – a college program for women in engineering made the larger engineering program feel more approachable and drew her into more applied opportunities.
“I realized I liked the more hands-on work of manufacturing – the direct interaction with the meat of a business,” Laura says. “I liked how every day was different, fast paced, challenging.”
NAM Senior Vice President of Communications and Brand Strategy Erin Streeter discusses the NAM’s digital strategy and the shift to become a news source for the industry.
Why is the NAM diving into becoming more of a news source for the industry?
First, it’s a direct response to the needs of our members. We’re committed to ensuring that our members and allies have the tools they need to be nimble and effective advocates for our industry. We also want to be a platform for our members to tell their stories of success and achievement.
Second, in this disruptive environment, becoming America’s manufacturing news source isn’t really a choice. We saw this tidal wave of change hitting advocacy and communications coming, and we’ve been building a messaging, rapid response (“War Room”) and newsroom operation that has drawn the attention of some the most powerful leaders in our country and is watched by key business reporters and decisionmakers. We can’t let up now. If we don’t write our story and if we don’t present the facts, we are ceding control of our industry’s future to others.
Building “brand newsrooms” and operating like a media organization aren’t things trade associations have been known to do. Can you explain the rationale for a trade association like the NAM moving in these directions?
That’s right—but it is critical if we want to continue to position the NAM as a leader not only in the manufacturing industry, but also in Washington and across the country.
With today’s noisy, fragmented media environment, manufacturers need a resource they can trust and resource that can get their stories out to the public and key decision-makers. And lawmakers and the public need an authority on all things manufacturing.
What is new about NAM.org?
Everything. The whole concept is new. Take a look around. You’ll see various streams of relevant, timely news on a range of topics. You’ll see interviews with leading experts and CEO perspectives. This site is the next step in our mission to be a constant presence in people’s lives, using new technology, data and analytics to provide customized user experiences that interest, educate and drive action for the manufacturing sector.
With this new site, we are supercharging our ability to provide a best in class user experience across our social, email and mobile products.
In what ways can manufacturers leverage this site and NAM news platforms, such as the Input morning email newsletter?
They can tell their stories. This is their platform. Manufacturers across this country are transforming their communities, innovating great new products and giving people new opportunities for high paying jobs. We want to show the world the great things our industry is doing and how we’re keeping our promises to invest in our people and our communities.
There’s no organization that knows the industry better than the NAM, the one-stop shop for manufacturers. So we’re well-positioned to be a credible and compelling platform—and outlet—for stories about our members. Just like anyone might think of CNBC, Fox Business or Bloomberg as a place to drive business news, I hope we’ll be looked at as a place where our members—and all manufacturers—want to break news because of the quality of our reporting and our proven capacity to reach audiences that matter.
Will the general public or casual reader find a home at nam.org?
Absolutely. Anyone who cares about manufacturing in America—and everyone should care!—can learn something from this site. Again, it’s America’s manufacturing news source. It might be breaking news about a new manufacturing facility coming to their community. Or it might be a helpful Q&A to understand what’s really going on in Congress.
Our Creators Wanted video series is a great example of the compelling content that is designed with the general public in mind. The series tells the stories of real modern manufacturing workers. In their own words, they describe the reason they love the industry. These are targeted to younger people (and their parents) who are making decisions about their future careers. So by inspiring that next generation, this content is supporting the mission of the NAM and our education and workforce partners, The Manufacturing Institute—and it’s changing lives.
There’s truly something for everyone…and we’d love to get feedback on how we can make it even better!
With a recent three-year United Nations environmental report spearheaded by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) highlighting dire warnings about human impact on the planet, leaders in the United States are under renewed pressure to find solutions that work. In communities across the country, manufacturers are taking a stand for sustainability – and demanding action against climate change.
While manufacturers have created their own policies to reduce pollution and increase sustainability, manufacturing leaders are increasingly pushing for action. Although policymakers in Washington have yet to settle on a unified approach, the manufacturing industry is making clear that the existing state of affairs is unsustainable.
“Manufacturers hope we can all agree that the current policy – a disjointed system of federal and state regulations that take decades to install and often fail – is not the answer,” said Ross Eisenberg, Vice President of Energy and Resources Policy at the National Association of Manufacturers. “A piecemeal regulatory approach just isn’t going to cut it.”
While proposals like the Green New Deal have garnered significant press coverage without gaining a single vote in Congress, manufacturing leaders are seeking opportunities for consensus on climate legislation by focusing on actionable solutions. These proposals include scaling up the adoption of energy- and water-efficient products and technologies, prioritizing innovation and creating pathways for the deployment of new technologies like carbon capture, utilization and storage. It also involves working collaboratively by creating public-private partnerships between government and manufacturers to help them further decarbonize. Finally, manufacturers are encouraging the United States to reengage with the international community in order to reduce greenhouse gas emissions together, rather than in isolation.
Manufacturers have unique qualifications to speak about this issue, as most have implemented meaningful programs to reduce greenhouse gas emissions, pioneer new strategies and technologies to reduce greenhouse gas emissions and set aggressive emissions reduction targets.
These actions have had a significant effect. Over the past decade, the manufacturing industry has reduced its greenhouse gas emissions by 10 percent while the sector’s value to the economy has increased 19 percent. It’s outpacing competitors and demonstrating that it is possible to reduce emissions without falling behind in a global market.
“Our barometer is that manufacturers in America must stay competitive in the global economy, and that requires realistic, practical policies that we can implement while we continue to do the things that make the manufacturing sector strong,” said Eisenberg. “Speaking for the 12.8 million men and women who make things in America, we’re ready.”
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, visit NAM.org.
Meet Joshua Bingaman, founder of Helm Boots. In this edition of the NAM’s Makers Series, he explains what it takes to inspire the next wave of “creative working class heroes.”
Washington, D.C. – The National Association of Manufacturers (NAM) announced that Denise C. Johnson, Caterpillar Inc. group president, has been named to the Executive Committee of the NAM Board of Directors. As an NAM Executive Committee board member, Johnson will work to advance a manufacturing policy agenda that promotes growth and prosperity for all Americans.
The NAM is the largest industrial trade association in the United States and the nation’s leading advocate for manufacturing. The NAM’s 14,000 members include some of the world’s most iconic brands, and more than 90 percent of its members are small and medium-sized businesses. The Executive Committee of the NAM Board, which comprises leaders representing companies of all sizes in every industrial sector, is the driving force behind the NAM’s advocacy efforts on issues affecting manufacturers.
The NAM, its Board of Directors and its Executive Committee have a long history of meaningful commitment to furthering policies critical to manufacturing, said Johnson. There are more than 12 million men and women employed in the manufacturing industry across America, and it is essential that we continue to drive meaningful discussion, analysis and consensus with policymakers for our collective future.
Denise is a respected and thoughtful leader, and I am grateful for her expertise, deep understanding and innovative thought on these important topics, said NAM President and CEO Jay Timmons. The NAM will benefit greatly from her contributions on the Executive Committee of the Board of Directors as we work to drive even more manufacturing growth in the weeks, months and years ahead. Our mission is to ensure we keep moving forward—by expanding trade, investing in infrastructure, reforming our immigration system, responding to the workforce crisis and so much more—and we are proud that we see American manufacturers keeping our promise to deliver for our people and communities each and every day.
For more than 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2018 sales and revenues of $54.722 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three primary segments — Construction Industries, Resource Industries and Energy & Transportation — and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media
The National Association of Manufacturers (NAM) 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 million men and women, contributes $2.25 trillion to the U.S. economy annually, has the largest economic impact 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.