News & Insights

Within the footwear business, Okabashi is unique. The company, based in Buford, Georgia, is not only a family-owned company focused on sustainability, but also, according to the company’s leadership, producing part of the 1% of footwear still made in the United States.

For third-generation shoemaker Sara Irvani, this choice to build a sustainable and successful business in the U.S. was made possible only thanks to constant research and development.

The backstory: Irvani’s family started the company 40 years ago, and it always tried to reduce waste, both for the positive environmental impact as well as to improve its bottom line.

• “By developing closed-loop manufacturing processes, we were able to reuse some of the materials that otherwise might have gone to waste,” said Irvani. “That helped us stay more competitive—and from there we’ve developed innovations in processes and systems and materials that build on that foundation.”

The process: Okabashi’s sustainable processes extend throughout the product lifecycle—from incorporating recycled or biological elements (like soy) that ensure products last longer to preventing disposable waste to recycling post-consumer shoes into new ones.

• “When we look at sustainability of a product, we do it holistically—we look at what it’s made of, where it’s made, how it’s made, the lifecycle, the quality—and we’ve been able to innovate and develop so that our manufacturing process doesn’t create waste,” said Irvani.
• “Without R&D, we would not only be creating the additional cost basis of throwing away all those scraps, but we would also not be able to eliminate waste that is by default landfill or ocean bound.”

The circular economy: In the traditional, linear economic model, inputs go into production, a product reaches a consumer, the consumer uses the product and eventually throws it away. In contrast, Okabashi is working to perfect a circular economic model for its products, said Irvani.

• “If you are designing for circularity, you might use renewable and recycled resources, develop them into that same product with a level of quality that lasts longer, and when the customer is ready to move on, it can be remade into something else,” said Irvani. “That’s how the loop continues. When we talk about circularity, we’re creating that virtuous cycle.”

The homegrown production: Okabashi’s R&D efforts both help it stay in the United States by keeping costs down and require domestic production to work.

• “To remake and recycle a product into something new, you need to have local production,” said Irvani. “You can’t be sending things halfway across the world to be unmade and remade and sent back. That’s why R&D locally and domestically is so important, to help produce circular systems.”

The local benefit: Irvani is quick to point out that money spent on R&D creates significant financial benefits for local communities.

• “There’s a multiplier effect for commercially oriented R&D in terms of the jobs it can create and the impact on the local economy,” said Irvani. “You get a very strong return on investment for both the company and for the community.”

The global perspective: R&D is essential for U.S. companies competing with manufacturers abroad, Irvani added.

• “For U.S. manufacturing broadly, R&D is critical to stay at the forefront of the innovation curve,” said Irvani. “Unless we’re proactively investing and developing new and better ways of doing things, we won’t be globally competitive.”

The last word: “It is imperative industry and retail move toward a circular-based economy,” said Irvani. “That’s not something that just happens or falls from the sky. Consumers are demanding it, and R&D is our pathway to that future.”

Washington, D.C. – Today, the National Association of Manufacturers, the Confederation of Industrial Chambers of Mexico and the Canadian Manufacturers & Exporters hosted the inaugural North American Manufacturing Conference at NAM headquarters where they formalized manufacturers’ commitment to supporting close economic ties between the United States, Canada and Mexico. NAM President and CEO Jay Timmons, CONCAMIN President José Antonio Abugaber Andonie and CME President and CEO Dennis A. Darby signed a memorandum of understanding, which will serve as a roadmap to the cooperation between the three organizations and outlines the key goals and objectives for the partnership.

“There’s never been a greater need for us to stand together. The world is caught between different political and economic systems. One system, our system here in North America, enriches lives and lifts people up into freedom and prosperity, while other systems oppress their people and rob them of their liberty,” said Timmons. “Together, we are an indomitable force for prosperity. The United States–Mexico–Canada Agreement is a powerful force multiplier for the already unmatched productive power of our industries. And this agreement reminds us of what we can achieve when we work together.”

“Today we live in a new reality. The commercial competition with China, the pandemic, the conflict in Ukraine, among others, place us before a second great industrial transformation in North America, the first one being propelled by NAFTA 30 years ago. Some call it nearshoring, friend-shoring, ally-shoring or reshoring. No matter the name, the truth is that this phenomenon is modifying the structure of international industrial organization. North America is the epicenter of this transformation,” said Abugaber Andonie.

“Manufacturers are an important driver of economic development and prosperity. We are key players in the changes and challenges of the 21st century,” said Darby. “This agreement between representatives of Canada, the United States and Mexico reinforces the strong ties between our three economies and manufacturing industries and serves as a reminder that we can achieve so much more when we work together. We would like to thank our colleagues from the NAM and CONCAMIN for this agreement, and we look forward to future cooperation.”

The MOU calls for the organizations to share information on each organization’s services and activities and to jointly develop the North American manufacturing agenda of the future. The associations will share best practices and policy recommendations to assist manufacturers in addressing future commercial challenges in North America, including, but not limited to, global competitiveness. They will work collaboratively to understand the challenges facing manufacturers in North America and commit to host the North American Manufacturing Conference on an annual basis in Mexico, Canada or the United States, on a rotating basis.

Click here to view the full text of the MOU.

About Canadian Manufacturers & Exporters

Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies that account for an estimated 82% of manufacturing output and 90% of Canada’s exports.

CONFEDERACIÓN DE CÁMARAS INDUSTRIALES DE LOS ESTADOS UNIDOS MEXICANOS

The Confederation of Industrial Chambers of the United Mexican States, CONCAMIN, established in 1918, is the main organization representing the different industrial sectors and activities of high importance for the economic development of Mexico.

It is an effective business representation organization, recognized by its leadership and full capacity to develop projects and initiatives through its work commissions, that contribute to achieve sustained development for the Mexican industry.

• We are an Organization committed to the economic growth of the country.
• Obligatory organ of consultation of the three orders of government in all those topics related to the industry in Mexico, according to the Law of Business Chambers and their Confederations.
• Annually, about 30% of the Gross Domestic Product that is generated in the country comes from those affiliated with the Confederation of Industrial Chambers of the United Mexican States.

In accordance with the provisions of the Law of Business Chambers and their Confederations, we are an organization of consultation and collaboration of the State; Therefore, we maintain a close, harmonious and purposeful relationship with the three levels of government and the powers of the nation.

-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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

What exactly is the industrial metaverse? While the term sounds like something straight out of a science fiction movie, it’s already being used by manufacturers in the here and now. Put simply, the industrial metaverse is a collection of technologies that can create an immersive virtual or virtual/physical industrial environment.

The metaverse will contain virtual replicas of everything from complete factories down to individual components and parts, powered by evolving digital technologies like AI and cloud computing. As the metaverse develops, users will be able to access it from any internet-connected device, such as a smartphone, laptop or tablet, or using virtual reality headsets.

According to a new report released by the Manufacturing Leadership Council, the NAM’s digital transformation division, and Deloitte, 92% of manufacturing executives say they are experimenting with or implementing at least one metaverse-related use case. On average, the surveyed executives say they are running more than six.

How is it used? Manufacturers are using industrial metaverse technologies in four common areas: production, supply chain oversight, customer service and talent management.

• Production: Manufacturers are simulating key processes in order to evaluate them, creating virtual prototypes of processes or systems and creating simulated factories to optimize factory layout and setup.
• Supply chain: Other manufacturers are using the metaverse to track products and raw materials and to collaborate with suppliers.
• Customer service: Companies are also creating virtual showrooms and product demonstrations, which attendees can visit without leaving their own homes or offices.
• Talent management: Lastly, other companies are experiment with using the metaverse for immersive training, virtual plant tours and virtual recruiting and onboarding.

What are the benefits? Executives report that each of these use cases comes with significant benefits, including cost reductions. Respondents also said metaverse applications have improved employee attraction and retention.

• Immersive customer experiences and virtual aftermarket services, such as equipment service and maintenance, have also led to increased revenue, according to the survey.

The challenges: While the industrial metaverse offers many promising benefits, manufacturers are still finding some challenges, including:

• The high cost of metaverse technology and the cybersecurity protections it requires;
• A lack of employees with the right skills, along with the steep learning curve for those who must be trained; and,
• Insufficient digital infrastructure and other resources.

The solution: The report suggests that manufacturers can find success in the metaverse by building a culture of innovation, establishing leadership support and starting small by investing in a digital technology foundation. 

The last word: All in all, manufacturing executives are confident that the industrial metaverse will transform their operations. Learning to understand and use the metaverse will soon be essential for companies seeking a competitive future.

Download the full report, “Exploring the Industrial Metaverse,” to learn more. 

For Husco—a family-owned manufacturer of hydraulic and electro-mechanical control systems—building a strong, cohesive culture is the key to retaining talent.

The Waukesha, Wisconsin, company is among the many manufacturers that find retention to be a top business challenge, as the NAM’s quarterly Manufacturers’ Outlook Survey shows. So how do they create this cohesion?

It all starts at the top: Angela Stemo, vice president of global human capital at Husco, says the company has always prioritized trust and communication between employees and their managers.

• “Our retention has grown and strengthened because of the emphasis we place on our leaders having strong relationships with their employees—get to know who they are, find out what their interests are,” said Stemo.
• The company also lays the groundwork for strong bonds between coworkers, which often flourish outside of work as well. “Once they feel connected to people within the organization, they’re going to want to stay,” explained Stemo. “They’ve built friendships, they’ve built connections, and they feel really tied to the organizational culture.”

How they do it: Husco conducts employee engagement surveys once a year and holds occasional in-person focus group discussions to get feedback from employees.

• “As our organization becomes more diverse, we are offering surveys in more languages,” said Stemo. “We have a large Afghan population on our shop floor as well as many Burmese workers, so we’ve had our surveys translated into various languages for all employees to participate.”
• “For us, we really try to listen to what people say and what their suggestions are,” said Stemo. “If it’s something feasible and we can implement it, we try to figure out how to do so.”

Career development and advancement: Stemo noted that workers have consistently mentioned career development and advancement in the focus groups and surveys. The company has responded by expanding its offerings:

• Husco offers its workers 100% tuition reimbursement—whether for an associate’s, bachelor’s or master’s degree—and fully funded internal and external training.
• The company also offers a “scholars program” that helps recent high school graduates complete a bachelor’s degree in mechanical engineering while working at Husco. Scholars receive full-time pay and benefits along with 100% tuition support.
• “Husco emphasizes and truly supports lifelong, continuous learning,” said Stemo.

Internal programs: Within the company, Husco offers career development programs that feature rotations through different departments, such as quality, manufacturing and design. These rotations prepare workers for leadership positions, usually in engineering or manufacturing, said Stemo.

• Husco provides the opportunity for employees to pursue external certifications in Six Sigma (green, yellow or black) and project management, as well as attend classes in negotiation, presentation and communication through a third party or university/college. If an employee has the desire and completes the appropriate request forms, the company approves it, said Stemo.

Patent awards: Husco also provides a monetary reward for ideas that contribute to new products, processes or anything else that might be patented.

• “There is a staff engineer within each division who partners with various legal teams to apply for a patent award,” explained Stemo. “We recognize the award with a plaque and a patent award bonus.”

Other perks and support: Husco offers employees the flexibility of working one day a week from home and provides free health risk assessments, flu shots and on-site medical consulting. Through a corporate membership, the company also provides employees with day passes to visit the local zoo or museum for free.

Philanthropy: Philanthropy is central to Husco’s culture, and the company encourages its employees to get involved and help their communities. Husco supports employees’ philanthropic efforts through local outreach programs and volunteer opportunities.

• Husco donates 10% of its profits to charitable organizations, putting a special emphasis on those that support K-12 education. The company also donates to colleges and universities, while providing scholarships for exceptional local students and the children of Husco employees.
• “We match dollar to dollar employee donations to hundreds of different organizations,” noted Stemo. “Our philanthropic efforts are a big part of our culture and what makes employees ‘sticky.’”

The last word: Stemo shared some advice for companies struggling with workforce retention: there’s no substitute for good leaders.

• “People leave bosses,” she said. “It may not be the final reason why someone leaves a company, but a lot of times, that’s the beginning of why someone starts looking for a job elsewhere or takes that recruiter call.”

Go deeper: The Manufacturing Institute—the NAM’s 501(c)3 workforce development and education affiliate—has many resources to help employers retain and develop their teams.

• Start with this study on boosting retention and employee engagement, and register for an upcoming webinar on company culture.
• Interested in labor data and key workforce insights? Sign up for the MI’s new monthly publication, Workforce in Focus.
• For more on the latest trends and best practices in workforce development, sign up for the MI’s Workforce Summit on Oct. 16–18 in Atlanta. Click here for more information and to register.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the United Auto Workers’ announcement to start a “Stand Up” strike:

“The impact of this strike will echo far beyond the city of Detroit as multiple economic analyses have demonstrated. The small and medium-sized manufacturers across the country that make up the automotive sector’s integrated supply chain will feel the brunt of this work stoppage, whether they are a union shop or not.

“American families are already feeling economic pressures from near-record high inflation and this will only inflict more pain. We urge a swift resolution to end this strike and avoid further undermining the strength of our industry and harming our broader economy.”

-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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – The National Association of Manufacturers released a new study outlining steps to improve health care supply chain resilience to allow manufacturers in the United States to better prepare for and adapt to the next disruption. The study analyzes lessons learned from the COVID-19 pandemic, during which manufacturers across the United States produced critical health care supplies in a highly unpredictable environment that affected every industry level.

“During the COVID-19 pandemic, manufacturers in the United States helped lead our response and recovery and learned many lessons in the process,” said NAM Chief Economist Chad Moutray. “Policymakers should utilize these lessons to bolster our supply chain for the next disruption. This analysis, which was conducted by the Manufacturing Policy Initiative at Indiana University, reveals that there are key policy actions needed to strengthen the manufacturing supply chain. Research shows a more balanced regulatory agenda, with an emphasis on clarity, predictability and coordination, will help mitigate the effects of the next disruption.”

Key Themes

Seven key lessons from the pandemic can be examined for future efforts to build resilience:

• Speed matters: Manufacturers need to be able to serve demand quickly.
• Information matters: Manufacturers need timely access to accurate information.
• Costs matter: Firms face the costs of taking action within the supply chain, as well as the costs of managing market unpredictability and policy environment uncertainty.
• Networks matter: Partnerships can support information sharing and networks to help manufacturers navigate the disruption.
• Size matters: Small and medium-sized manufacturers and new firms can be differently—and uniquely—challenged compared with established larger manufacturers.
• Technology matters: Technology can enable manufacturers to enhance production, innovate or improve efficiency, as well as support broader efforts to build partnerships.
• Flexibility matters: Responses can come from unexpected sources and need a flexible policy environment.

Areas of Opportunity

The report identifies four key areas of opportunity to enhance health care supply chain resilience:

• Fostering a conducive regulatory environment: Manufacturers and their partners need clear and streamlined regulations as well as a flexible regulatory framework in advance of the next disruption.
• Supporting partnerships for stronger information sharing and networks: Sustained information channels between manufacturers and policymakers will improve access to information for all parties and mitigate disruptions.
• Ensuring a healthier “baseline” industry: Small business plays a pivotal role in the U.S. Robust entrepreneurship and scaling of new manufacturers contribute to a more competitive industry.
• Prioritizing changing workforce needs: Workforce development must be prioritized so that manufacturers can pivot across product lines and sectors to meet the needs of the next disruption.

-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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – The National Association of Manufacturers released its Manufacturers’ Outlook Survey for the third quarter of 2023, which registered the lowest level of optimism among NAM members (65.1%) since Q2 2020, as the sector continues to confront a tight labor market, unbalanced federal regulations and critical policy debates in Congress.

“Manufacturers continue to be challenged in today’s economy, but what this survey makes clear is that unbalanced federal regulations are harming families and communities, with nearly two out of three manufacturers reporting that the regulatory burden is preventing them from hiring more workers or increasing pay and benefits,” said NAM President and CEO Jay Timmons. “Congress and the administration can help correct this trend by restoring sensible regulations, enacting further permitting reforms, taking action to keep our tax code competitive and other bipartisan steps to strengthen manufacturing in America and build on the progress we achieved with tax reform, the Bipartisan Infrastructure Law, the CHIPS and Science Act and more.”

Key Survey Findings:

• Only 65.1% of respondents felt positive in their company’s outlook, edging down from 67.0% in the second quarter. It was the fourth straight reading below the historical average (74.9%).
• Concern about an unfavorable business climate was the highest in six years (Q2 2017).
• The survey found that 69.1% of small manufacturers, and 63.2% of all respondents, would hire more workers or increase compensation if the regulatory burden decreased.
• More than 70% of manufacturers would purchase more capital equipment if the regulatory burden on manufacturers decreased, with 48.6% increasing compensation, 48.6% hiring more workers, 42.5% expanding their U.S. facilities and 38.4% investing in research.
• The top challenges facing manufacturers include attracting and retaining a quality workforce (72.1%), weaker domestic economy (60.7%), rising health care/insurance costs (60.1%), unfavorable business climate (56.7%), increased raw material costs (45.5%) and supply chain challenges (37.8%).

You can learn more at the NAM’s online regulatory action center here.

The NAM releases these results to the public each quarter. Further information on the survey is available here.

-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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

The NAM and the Kentucky Association of Manufacturers are hitting back against an attempt by the Securities and Exchange Commission to force privately held businesses to make public financial disclosures.

What’s going on: On Tuesday, the NAM and KAM filed suit in federal court challenging the SEC’s novel reinterpretation of its Rule 15c2-11.

• The reinterpretation—on which the SEC has not granted companies the opportunity to comment—would require private firms to release confidential financial information publicly.

The background: Rule 15c2-11 requires disclosures to protect investors in publicly traded companies issuing so-called “penny stocks.” But the SEC has broadened the rule’s application to include privately held companies that issue corporate bonds to large institutional investors under an entirely different regulation, called Rule 144A.

• Everyday investors can’t purchase corporate bonds issued under Rule 144A, so there is no reason to require public disclosures from these businesses.

Why it’s important: Expanding Rule 15c2-11 will mean higher borrowing costs and reduced liquidity in both the manufacturing industry and throughout the larger economy, according to a new EY report released by the NAM.

• The reinterpretation would lead to job losses of more than 100,000 every year, according to the analysis.

Manufacturers speak out: “The SEC never allowed public comment on its novel reinterpretation of Rule 15c2-11, there is no conceivable benefit to the new standard and the SEC did not consider the impact that its about-face will have on privately held businesses,” said NAM Chief Legal Officer Linda Kelly. “The NAM Legal Center is filing suit to hold the SEC accountable and protect manufacturing growth, job creation and U.S. competitiveness.”

• KAM President and CEO Frank Jemley added: “The SEC’s unlawful overreach threatens privately held manufacturers in Kentucky and across the country, so the Kentucky Association of Manufacturers is proud to join the NAM in this important litigation.”

Washington, D.C. – The National Association of Manufacturers and the Kentucky Association of Manufacturers filed a lawsuit in federal court today challenging the Securities and Exchange Commission’s attempt to impose unwarranted public disclosure requirements on privately held businesses.

The SEC has adopted a novel reinterpretation of SEC Rule 15c2-11, imposing the rule’s public disclosure requirements on private companies that raise capital via corporate bond issuances under SEC Rule 144A—without giving manufacturers the opportunity to provide comment on the damaging impacts of such a consequential change.

According to EY economic analysis released by the NAM today, the SEC’s expansion of Rule 15c2-11 will result in decreased liquidity and increased borrowing costs in the manufacturing industry and throughout the economy—leading to job losses exceeding 100,000 annually.

“The SEC’s attempt to force private companies to disclose confidential financial information publicly is a clear violation of the Administrative Procedure Act,” said NAM Chief Legal Officer Linda Kelly. “The SEC never allowed public comment on its novel reinterpretation of Rule 15c2-11, there is no conceivable benefit to the new standard, and the SEC did not consider the impact that its about-face will have on privately held businesses—which could exceed 100,000 lost jobs each year. The NAM Legal Center is filing suit to hold the SEC accountable and protect manufacturing growth, job creation and U.S. competitiveness.”

“The SEC’s unlawful overreach threatens privately held manufacturers in Kentucky and across the country, so the Kentucky Association of Manufacturers is proud to join the NAM in this important litigation on behalf of all manufacturers in the U.S. to counter the SEC’s regulatory onslaught,” said KAM President and CEO Frank Jemley.

EY analysis highlights the damaging economic impacts of the SEC’s actions:

The economic impacts of the SEC’s expansion of Rule 15c2-11 will be felt disproportionately in the manufacturing industry, which accounts for more than half of all nonfinancial issuers of corporate bonds under Rule 144A. Across the economy, the change will result in 30,000 jobs lost each year over the first five years the new interpretation is in effect. The job losses will increase over time—rising to 50,000 jobs lost each year after five years and 100,000 jobs lost each year after 10 years.

These job losses are attributable directly to the decreased liquidity and increased borrowing costs associated with the SEC’s new interpretation.

Background:

• SEC Rule 15c2-11 requires broker-dealers to ensure that key information about companies issuing over-the-counter equity securities is current and publicly available prior to quoting those issuers’ securities.
• SEC Rule 144A allows for resales of securities (primarily corporate debt issuances) to qualified institutional buyers—large financial institutions that own or manage more than $100 million in securities. Retail investors cannot purchase Rule 144A securities. Notably, under Rule 144A, issuers are obligated to make their financial and operational information available to QIBs.
• In September 2021, the SEC’s Division of Trading and Markets issued a no-action letter applying Rule 15c2-11 to Rule 144A debt. This decision contradicted the historical application of Rule 15c2-11 to OTC equity securities and bypassed important rulemaking safeguards required by the Administrative Procedure Act.
• The NAM and the KAM filed petitions for rulemaking with the SEC in November 2022 seeking both permanent and temporary relief from the application of Rule 15c2-11 to Rule 144A securities. Following the petitions, the SEC temporarily delayed enforcement of its novel reinterpretation until January 2025, but the agency has not acted to reverse this damaging decision permanently.

-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 nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Around 15,000 people are diagnosed every year in America with glioblastoma, a particularly aggressive form of brain cancer. At Novocure—a global oncology and medical device company with its North American flagship facility located in Portsmouth, New Hampshire—scientists and manufacturers have developed a device to revolutionize the way these tumors are treated.

The breakthrough: Novocure’s founder Yoram Palti developed an innovative treatment called Tumor Treating Fields therapy—an approach that uses electric fields to kill cancer cells while sparing healthy ones.

• For adult glioblastoma patients, the device, called Optune^®, consists of wearable, portable adhesive arrays and an electric generator that can be carried in a bag.

• “Unhealthy cells and healthy cells have different properties,” said Frank Leonard, president, CNS Cancers U.S. at Novocure. “If you can create the right type of electric field, you can exert force and destroy cancer cells as they divide.”

Value added: Crucially, Tumor Treating Fields therapy is being studied together with other therapies, giving patients access to an optimal mix of treatments.

• “You get the best of both worlds with a device intervention and a drug intervention,” said Leonard. “Patients can wear this device consistently while using Temozolomide, which is the current standard of care chemotherapy agent used to treat glioblastoma.”

Low risk: Unlike drug therapies, which can present a range of adverse effects, Optune^® has few side effects beyond mild-to-moderate skin irritation beneath the transducer arrays. As a result, patients can receive the treatment continuously for extended periods of time to attack cancer cells.

• “Typically, the limiting factor in treating cancer is dose-limiting toxicity—for example, you can only take one or two chemotherapies at the same time because they’re so toxic,” said Leonard.

Getting heard: The company’s device was featured in the award-winning short film “Rare Enough,” which tells the inspiring story of cancer survivor DJ Stewart and his journey in battling glioblastoma.

• Stewart is a Kansas City–based skateboarder who was first diagnosed with glioblastoma in 2019. Thanks, in part, to Tumor Treating Fields therapy, his life expectancy—once only 13 months—has been prolonged significantly. DJ now serves as a community outreach coordinator for the Head for the Cure Foundation.

Next steps: Novocure believes that Tumor Treating Fields therapy holds significant promise for other types of cancer as well. The company is developing additional wearable devices that could treat countless patients around the world.

• Lung cancer trials have shown promising results recently, and the company expects to learn more in the coming months from clinical trials involving ovarian cancer, metastases from lung cancer and pancreatic cancer.

• “We started working first in one of the rarer, yet most aggressive, forms of cancer. There are around 15,000 patients diagnosed with glioblastoma in the U.S. each year,” said Leonard. “But pre-clinical data suggests that Tumor Treating Fields can work with all different tumor types.”

A look to the future: Wearable anti-cancer devices offer an exciting new frontier in the fight against life-threatening diseases, and an important field where manufacturers can make an enormous difference.

• “In these really aggressive cancers, we still are making advances—and advanced devices that require sophisticated engineering and complex global manufacturing have a role to play,” said Leonard. “There’s a lot the manufacturing industry can do to improve the outcomes of patients, and they should be recognized for that work.”