Washington, D.C. – Michael W. Lamach, chairman and CEO of Ingersoll Rand, will serve as chair of the National Association of Manufacturers’ Board of Directors, succeeding David Seaton of Fluor Corporation. Jim Fitterling, CEO of Dow, will serve as vice chair.
I’m thrilled to be leading an organization that has such outsized influence in moving competitiveness policies in Washington. Whether it is working with the White House, the agencies or members of Congress—both Democrats and Republicans—the NAM is the most respected and influential voice in the room, said Lamach. This is an association on solid financial footing and with impressive membership growth—and it’s why our members have such trust in the best-in-class NAM team.
The NAM has developed a well-earned reputation for consistently proposing thoughtful, meaningful solutions to issues that affect American manufacturers like Dow. They do so in a constructive way, working to bring policy leaders together regardless of political party or affiliation, said Fitterling. The focus is on policy issues that are critical to our industry, and I am proud to serve on this respected board.
Manufacturing has experienced strong growth over the past few years, thanks in large part to game-changing tax and regulatory reform. The NAM Board of Directors is primed as manufacturers’ voice to help secure additional reforms to spur job creation, increase economic competitiveness and build a 21st-century manufacturing workforce.
Mike Lamach and Jim Fitterling are two of the most respected CEOs of Fortune 500 companies in the country, said NAM President and CEO Jay Timmons. They are forceful, effective spokespeople for the policies that ensure manufacturers remain competitive—tax reform, regulatory certainty, trade expansion, infrastructure investment, immigration reform, energy development, workforce development and more.
They are forward-thinking leaders with a commitment to the success of our industry and country—and the more than 12.8 million men and women who make things in America. Without a doubt, our association is in great hands with these exceptional individuals at the helm. And I look forward to working with them to keep manufacturing in the spotlight and to continue delivering results that exceed the expectations of our members.
In addition, Douglas Baker, Jr., chairman and CEO of Ecolab Inc., and Ruth Kimmelshue, corporate senior vice president of business operations & supply chain and chief sustainability of Cargill, joined the Executive Committee of the NAM’s Board of Directors.
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.
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.
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
In September 2018, the National Association of Manufacturers acquired the Manufacturing Leadership Council, an association for manufacturing executives that is dedicated to helping the industry transition to the digital era. Nearly one year later, the MLC wraps up its 15th Anniversary Manufacturing Leadership Summit and continues to provide its members with programs and services around digitization.
MLC’s Co-Founder, Vice President and Executive Director David R. Brousell shares the groundbreaking work of the organization and why it matters to manufacturers today.
What is the Manufacturing Leadership Council?
The MLC is designed 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. We do live events like conferences; we do plant tours that enable members to see firsthand how different companies are implementing the latest digital technologies; and we publish in-depth articles that focus on best practices and cutting-edge ideas on the use of technologies and the leadership requirements of the digital age.
How is leadership changing in the digital age?
It’s changing in some very important ways. There’s a whole new layer of competency that has to be added to the traditional functions of leadership. We call this “digital acumen,” which has to do with understanding the potential of advanced technologies like analytics, artificial intelligence, collaborative robotics, 3D printing and other technologies. It’s not just improving efficiencies, but also offering new business models, ways of doing things and services.
This new era in manufacturing requires leaders to manage organizations that are flatter and more collaborative, with more and more employees having the benefit of information at their fingertips. Managing in prior years was around a top-down structure. That doesn’t cut it in the digital age.
What benefit do companies get from being a part of this group?
The MLC presents the opportunity to be part of a community that is collectively sharing ideas, insights and best practices to as the industry continues its radical transition. The truth is, you can’t do this alone as a company. You can’t make this transition to the digital era by yourself. You need to be with other companies, to learn from them, to learn what’s possible, to see what works and what may not work well in your company and to form that bond. It’s a tremendous learning experience.
What does the future look like for manufacturing—and how does the Manufacturing Leadership Council fit in?
The future looks very, very bright for manufacturing. We’re going to increase efficiency and produce products that satisfy personalized needs—everything from cars to medicine. We’re going to be able to have better quality and create jobs that are fulfilling, exciting and intellectually stimulating. The extent of innovation happening right now in manufacturing is mind-blowing.
But this is not an easy transition. The future offers tremendous opportunities, but only if we make the transition industry-wide. If we’re able to do that, not only will individual companies be more successful globally, but the U.S. manufacturing industry as a whole will continue to lead the world. There’s a lot at stake for manufacturers. That’s why the partnership between the Manufacturing Leadership Council and the NAM is so important.
Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement congratulating Heidi Brock on becoming the new president and CEO of the American Forest & Paper Association:
Heidi Brock is absolutely the perfect choice to take the helm of AF&PA. She’s been a stellar leader of the Aluminum Association and a powerful, effective voice for the entire manufacturing industry, especially during her time as an NAM board member and chair of the NAM’s Council of Manufacturing Associations. Under her leadership as CMA chair, the council achieved a new record level of membership and participation by manufacturing association leaders, and she was also instrumental in launching the CMA Women’s CEO Network and the Best Practices in Workplace Safety Working Group.
Throughout her career, including her prior work in the paper manufacturing industry, Heidi has built an impressive track record both in leading through tumultuous times, including trade policy challenges, and in providing values-based thought leadership on vital issues like workplace inclusion and sustainability. I have long admired Heidi’s keen intellect, consummate leadership ability and skillful command in advancing public policy priorities. Her strategic and wise counsel has helped us strengthen the NAM, and I am thrilled she will continue to be an active leader in a vital manufacturing association.
Congratulations as well to Donna Harman on her extraordinarily successful tenure at AF&PA. We wish her all the best as she begins a new chapter. Heidi has a solid foundation on which to build thanks to Donna’s leadership.
The NAM looks forward to continuing to work closely with both the AF&PA and the Aluminum Association as we advance our shared mission of improving the lives and livelihoods of the men and women who make things in America.
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 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.
As a production scheduler for Mars, Incorporated, Thomas Schlieper has a hand in sending sweet treats all over the world.
In some ways, it’s very different from his former career. As a teenager, Schlieper joined the Army National Guard because it offered benefits like tuition assistance and scholarships that would help him go to college. When he finished school, he worked in his hometown and eventually decided to go into active service in the U.S. Army. That career spanned two decades and helped lead him to the manufacturing job he enjoys today.
While Schlieper served as an Army senior supply specialist, he enrolled in the Manufacturing Institute’s Heroes MAKE America program, which aims to connect manufacturers with highly qualified candidates and offer transitioning service members manufacturing-related training and support, thus creating a pipeline between the military and manufacturing. Through this U.S. Department of Defense-approved program, he toured the Mars production facility in Topeka, Kansas. Mars recognized his logistics experience and offered him a production scheduler position, which he accepted in February 2019.
“I served 20 years as a logistics guy,” he said. “Ordering supplies, making sure soldiers in the Army had what they needed. The leadership skills I learned in the Army helped me adapt to this new role.”
Schlieper recalls the stress he felt during his first day on the job at Mars, when he wondered whether he was up to the challenges of his new role—and the moment when it all clicked.
“My first couple days there, after I did the orientation, I was overwhelmed,” he said. “I thought, am I getting over my head? I was just a soldier, and now I’m something different.”
He was shadowing another employee when he suddenly realized that the system he would be using as a production scheduler at Mars was exactly the same system he used every day when ordering supplies and managing logistics in the Army.
“I looked at the system, and I was totally relieved,” said Schlieper. “All that stress went away, and I was like, I know this. I can do this.”
Today, Schlieper is deeply immersed in his new industry. He feels it’s a good fit for former members of the military, who will have an easier learning curve as a result of their training.
“Before I retired, some people I knew thought manufacturing jobs were jobs nobody wanted,” he says. “But that’s really not the case. It’s completely different. It’s a whole new world.”
Learn more about the Manufacturing Institute’s Heroes MAKE America program.
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.”
This week, the U.S. House of Representatives passed the American Dream and Promise Act. The legislation, which was introduced in March, offers a pathway to citizenship for unauthorized immigrants who were brought to the U.S. as children—collectively known as Dreamers—as well as immigrants under humanitarian protections, known as Temporary Protected Status.
Manufacturers in the United States have long been outspoken supporters of pragmatic, comprehensive immigration policies—and with a proposal for a pathway to citizenship for these immigrant populations under consideration in Congress, manufacturing leaders are pushing again for bipartisan comprehensive reform.
“Dreamers and Temporary Protected Status participants have become an integral part of our society and our workforce,” said National Association of Manufacturers President and CEO Jay Timmons in a letter to Congress. “They have the potential to offer so much more to our country if they can continue their pursuit of the American Dream.”
Manufacturers point to the importance of immigrants to the workforce, particularly in the manufacturing sector, which faces a significant skills gap. And they note that inconsistent administrative actions and unpredictable court decisions have created ongoing uncertainty and posed a serious challenge for these immigrants and businesses in need of new employees.
“Our workplaces reach their fullest potential and our communities and country are strongest when our nation’s immigration policy is clear and compassionate, and addresses economic, workforce and security needs,” said Timmons. “But today, our immigration system is failing to achieve those goals.”
In February, the NAM released its own immigration and border security proposal. The 16-page document, entitled “A Way Forward,” is a wide-ranging plan that includes border security and a permanent and compassionate solution for populations facing uncertainty, like the Dreamers. The plan includes priorities from both Democrats and Republicans and is designed to be pragmatic, comprehensive and achievable.
“If we act, we will have given those who deserve it a chance to be a productive and contributing part of our country,” said Timmons. “And we will have upheld the values that make this nation of immigrants exceptional: free enterprise, competitiveness, individual liberty and equal opportunity.”
Ferroloy, a Kansas-based small business that manufactures ductile and gray iron castings, was once on the verge of bankruptcy. But with the help of tax reform, they have doubled the size of their workforce and are in the process of dramatically expanding their facilities.
Mark Soucie, Ferroloy president and owner, bought the company back in 2017 when it had just 20 employees. The business was struggling to break even due to the collapse of the agricultural market, in which most of their customers were involved. Soucie and his team spent much of 2017 stabilizing Ferroloy. It became quickly evident, however, that the supercharged economy could deliver big gains.
“We could tell in early 2018 that activity was picking up, so we added a second shift and more than doubled our workforce by the end of the year,” Soucie explained.
“Now we are in the early stages of adding over 12,000 square feet to our facilities so that we can de-bottleneck the foundry, increase the size of the company’s machine shop and build an in-house pattern shop, which will allow the company to save money while also adding more jobs to their growing workforce,” Soucie said.
Soucie cited tax reform as a significant driver in allowing Ferroloy’s expansion plans to move faster than they otherwise would. More importantly, tax reform has ushered in the strongest economy in more than a decade, which is impacting Ferroloy by increasing demand for their products.
“To me, tax reform is an opportunity to level the playing field,” Soucie explained. “Large businesses have a significant competitive advantage due to scale and capability relative to smaller businesses. Over 50 percent of our working population is employed in small businesses. If you want small businesses to grow and prosper in this country, we need laws, like tax reform, that can drive economic growth and drive business.”
In Soucie’s eyes, keeping tax reform on the books is a no-brainer.
“I don’t understand why some people in Washington want to roll back something that allows small businesses to compete,” Soucie added. “Maybe it’s me being politically naïve, but economically, tax reform that allows small businesses to compete just makes sense.”
2018 was a record-setting year, as manufacturers reported the highest levels of optimism in the 20-year history of the NAM’s Manufacturers’ Outlook Survey.
“With tools like tax reform and regulatory certainty, manufacturing is thriving – and manufacturers are paying it forward,” Chris Netram, NAM vice president of tax and domestic economic policy, said. “Across the country, manufacturers small and large are hiring new employees, expanding operations, raising wages, improving benefits and more. Tax reform has fueled manufacturing, and the industry is propelling the American economy.”
In May, the U.S. Senate voted to confirm President Donald Trump’s nominees to the Export-Import Bank board. The board now has a quorum for the first time in four years, allowing it once again to consider deals larger than $10 million. Manufacturers’ attention now turns to securing congressional reauthorization of the Ex-Im Bank.
NAM President and CEO Jay Timmons explains what’s at stake.
The NAM is leading the fight for Ex-Im Bank reauthorization. Start with the basics. What does that mean?
Later this year, Congress will have to vote on whether to keep the Ex-Im Bank open and authorize it to continue helping manufacturers in the United States compete for deals around the world.
Why does the Ex-Im Bank matter so much to manufacturers?
It’s a vital tool to support manufacturing jobs in the United States. The Ex-Im Bank has supported 2.5 million jobs since 2000. Typically, more than 90 percent of the Ex-Im Bank’s transactions directly support small businesses.
And here’s something that’s really impressive — the Ex-Im Bank has generated $9.6 billion for taxpayers since 1992. It’s a government agency that makes money!
Other countries are running nearly 100 other export credit agencies. So, if we don’t have the Ex-Im Bank, we are at a big disadvantage.
You mention “export credit agencies.” You mean other countries have their own versions of the Ex-Im Bank?
Exactly. And they use those agencies to lure manufacturers to their countries, support their own manufacturers and steal manufacturing jobs away from the United States. That’s not going to change. So, we can “disarm” ourselves here in the United States and let other countries like China have the advantage. Or we can support the Ex-Im Bank.
So this all comes back to China?
Definitely. It helps level the playing field for manufacturers in the United States to compete with China, as well as other countries.
Two of China’s export credit agencies provided $45 billion in medium- and long-term investment support for projects around the world, more than the rest of the world combined. That’s what we have to compete against.
What can manufacturing workers or manufacturing supporters do to make a difference?
Contact your senators and representatives. Tell them to support the Ex-Im Bank and reauthorize it. Let them know that supporting the Ex-Im Bank is supporting American manufacturing workers.
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.”