Advanced Manufacturing Seen as Key to Capturing New Opportunities for States

Following a year-long policy academy intended to help states prepare new strategies for economic growth by fostering collaboration and shared experiences, eight states have agreed to bring a renewed focus to advanced manufacturing. State leaders concur that the manufacturing sector is too important to lose and is rapidly evolving. With change, however, comes a unique opportunity to capture new leadership roles and address global issues that threaten public health and safety. A report from the National Governors Association (NGA) summarizes the work and findings from the group and provides guidance for other states.

The eight states that participated in the academy especially are relevant because together they represent a large fraction of total U.S. manufacturing GDP (30 percent), one-third of manufacturing jobs and more than 25 percent of U.S. exports of manufactured goods. They include California, Colorado, Connecticut, Illinois, Kansas, Massachusetts, New York, and Pennsylvania.

So what are the states doing to help manufacturers grow and compete globally? Four objectives rose to the top across all states as the focus for their strategies:

• Pursue an integrated approach to developing an advanced manufacturing strategy, connecting large and small manufacturers, as well as state, federal and regional partners;
• Develop and implement industry-driven priorities and partnerships;
• Boost the innovation and commercialization capacities of manufacturers, particularly small- and medium-sized firms (SMEs), by connecting them to partners, consortia, and a whole system of supports; and,
• Provide talent both to fill the immediate specialized needs of employers and to deliver lifelong, industry-relevant training for workers at all levels.

The states' approaches to the four above-mentioned strategies are illustrated throughout the report. In addition, the report describes some of the challenges put forth to academy participants and outlines best practice models derived from their work. For example, the states undertook a number of actions to address challenges facing small- and mid-sized manufacturers, such as creating a voucher program in Connecticut, modeled after successful European programs, which better connected SMEs to sources of innovation and the technical assistance needed to develop and commercialize new products.

Several outcomes from the academy's work are expressed as “lessons offered for other states.” Notably, the participants recognized a big missed opportunity with SMEs and emphasized doing a better job supporting SMEs and startups. As they move toward investing in advanced manufacturing, state leaders found that traditional metrics will need to be updated. And, because of important developments already occurring, the most immediate benefits would be obtained by assembling, improving, coordinating, connecting or replicating and scaling up those resources to manufacturers.

Making Our Future: What States are Doing to Encourage Growth in Manufacturing through Innovation, Entrepreneurship and Investment is available at: http://www.nga.org/files/live/sites/NGA/files/pdf/2013/1301NGAManufacturingReportWeb.pdf.

New England States Announce Manufacturing Initiatives
Just this week, governors from Maine and Vermont outlined efforts to promote job opportunities within the manufacturing sector and outlined steps to strengthen the industry.

In Maine, Gov. Paul LePage launched a statewide outreach campaign to attract more young people to careers in technology and manufacturing. The Manufacturers Association of Maine along with the Office of the Governor and Maine Department of Economic and Community Development will develop a two-year campaign designed to change the perception of manufacturing and raise money to pay for job training programs.

A new report unveiled by Vermont, Gov. Peter Shumlin outlines the positive impact of the manufacturing industry on the state's economy. A series of recommendations in the report span workforce readiness, advocacy, networking by Vermont manufacturers, and public outreach to educate lawmakers on the vibrancy of the industry.