Industrial Resource Centers Report Says Innovation Is Improving PA Manufacturers' Competitive Position; Study Focuses Long-Term Strategy to Aid State'
DATELINE: HARRISBURG, Pa. Feb. 22
HARRISBURG, Pa., Feb. 22 /PRNewswire-USNewswire/ -- Two-thirds of Pennsylvania manufacturers are in a stronger competitive position than they were in 2003, according to a new study conducted by the Pennsylvania Industrial Resource Centers.
In the recently completed report, Innovative Manufacturers: Leaders Who Learn to Win, Pennsylvania manufacturing CEOs were surveyed on their companies' ability to adjust to the current global economy through product development and knowledge. Results from the study also indicate that over the past five years, 64 percent of manufacturers have increased profits and 44 percent have introduced new products or penetrated new markets with existing products.
"Pennsylvania's manufacturers are in a constant battle with companies throughout the world. However, the commonwealth continues to be on the forefront of important components of the supply-chain, including customized design and engineering, superior service, speed of invoking solutions and knowledge management," DCED Secretary Dennis Yablonsky said.
"Governor Rendell believes that investing in product and process innovation, strategic planning and talent development are keys to the state's evolving manufacturing industry," Yablonsky said. "Under the Rendell administration, funding for the industrial resource centers has increased by 50 percent to $15.2 million and, combined with the efforts of the Office of the Manufacturing Ombudsman, the Office of Trade Policy and the Governor's Action Team, the climate now exists for renewed success in manufacturing."
Sixteen percent of the CEO's surveyed are overseeing successful "innovative learning firms," which are described as having three primary characteristics:
-- They are committed to change and use the knowledge gained from colleagues and competitors to evolve and improve processes;
-- They set and perform to aggressive growth goals, including creating new products and services, introducing multiple new products over the past three years and have worked to achieve a stronger competitive position since 2003; and
-- They invest in talent development with a yearly budget line item specifically for workforce development.
Of those, 87 percent have increased revenues since 2004, 82 percent have increased their profits since 2004, 53 percent have penetrated new markets and have introduced new products since 2004, 43 percent import and export, 36 percent have introduced at least five new products since 2004, and 70 percent have generated new product ideas from sources beyond their firm.
"While this study shows that commonwealth manufacturers are successfully transitioning from reactors to predictors of economic developments, it also emphasizes areas where more education, networking and planning will be necessary to keep this trend moving forward," Yablonsky said. "With this new information, the resource centers have enhanced their long-term strategy to concentrate on continuing this advancement in the manufacturing industry."
For more information on Governor Rendell's manufacturing programs or other DCED programs, visit http://www.newpa.com/ or call 1-866-466-3972.
CONTACT: Greg Morgan (717) 783-1132
CONTACT: Greg Morgan of the Pennsylvania Department of Community &
Economic Development, +1-717-783-1132
Web Site: http://www.newpa.com/
SOURCE Pennsylvania Department of Community & Economic Development