Partnership promotes Wisconsin manufacturing

The Green Bay Press-Gazette visits with newsmakers in the business world each week in its Monday Conversation feature. Mike Klonsinski, executive director of the Wisconsin Manufacturing Extension Partnership, is the subject of this week's feature.

Q. What is the health of manufacturing in Wisconsin? How large a sector is manufacturing? Where does it rank compared to other states?

A. One of six workers in Wisconsin is employed directly in manufacturing. The sector generates $47 billion 21 percent of our state's Gross State Product and drives wealth creation by exporting $17 billion of product outside our borders. We continue to rank in the top 5 states in percentage of our economy based on manufacturing. And some of the fastest-growing well-paying service jobs (professional services, warehousing and logistics, transportation) are in those professions that are dependent on manufacturing.

Wisconsin's manufacturing economy grew $2.2 billion in 2006, with the sector adding more dollars to Wisconsin's economic growth than health care, retail, information and professional services {dcidc}combined.

Q. What are Wisconsin's advantages over other states in manufacturing? What are its disadvantages?

A.{} Wisconsin has a history of manufacturing that does not exist in many other states. We have a knowledgeable, skilled manufacturing workforce from manufacturing owners to production workers. We know how to make things.

But these current advantages are also a potential Achilles' heel. The manufacturing legacy is an advantage, but that legacy also fosters complacency and resistance to change. The next-generation manufacturing firm must be more aggressive in new-product development, active in seeking new markets, internationally savvy, and lean in operations. The skills that helped the past generation succeed in manufacturing may not be as relevant in the future.

Of greater concern for Wisconsin is the declining level of engineering and manufacturing talent in the region. Our current manufacturing workforce strength can evaporate over the next 10 years if we can't replace the quality and numbers of skilled manufacturing workers ... and the quality and level of manufacturing owners and managers. We don't have the population growth or immigration numbers that other states realize, which will provide the workforce of tomorrow. And we need our best and brightest to develop engineering and technical skills so that they can be drivers in the Wisconsin manufacturing firms of 2020.

Q. The last 30 years have been a period of upheaval for manufacturing. A lot of jobs first went south, then overseas. Too many companies gave up balancing cost with quality and community contribution and opted for profits above all else, and others simply couldn't compete because of costs or efficiency. How has Wisconsin's manufacturing community survived this and what is in its future?

A.{} Wisconsin's manufacturing firms have faced the same globalization challenges as all other companies. A number did not survive, but many are thriving because they became leaner and more innovative. The popular view was to look at China's immense manufacturing growth and believe that the U.S. couldn't compete. If we learn anything from the last five years, it is not to underestimate the resiliency and entrepreneurship of the U.S. manufacturer.

The bottom line for a manufacturer has always been to have a positive bottom line. It is the profits made by our manufacturing firms that have provided good local jobs, funded community charity events, and sponsored the local little league team. We are fortunate to be in a state with one of the highest levels of privately, locally owned firms.

Q. In Northeastern Wisconsin, paper and paper-related manufacturing has always been predominant, and has given birth to non-wovens manufacturing and converting. Are there other emerging manufacturing sectors in Wisconsin that show promise?

A.{} There are niche markets springing up all over driven by changes in customer demands. Wisconsin's mining equipment suppliers are benefiting from world demand for energy and raw materials; defense spending is helping firms like The Manitowoc Co. and Oshkosh Truck and their Wisconsin suppliers; ethanol plant growth is driving sales for Wisconsin firms that build processing equipment; and health care needs are driving growth in Wisconsin companies that manufacture medical equipment.

Q. How would you rate manufacturing as a career choice? What are the keys to a successful manufacturing career?

A.{} It is important to remember that manufacturing is an {dcidc}industry that needs many professions. These professions include design engineers, international sales representatives, CNC operators, production managers, purchasing professionals, maintenance engineers and others. These are desirable, well-paying careers with transferable skills. We tend to forget that manufacturing firms are the biggest private investors in research and development and employ more scientists and engineers than any other sector.

Manufacturing is global and highly competitive. Change occurs rapidly and the market continually challenges a manufacturing firm to produce more, faster and cheaper. A successful manufacturing career will demand ongoing training just to keep pace.

Q. What is Wisconsin Manufacturing Extension Partnership? How does it contribute to manufacturing in the state?

A.{} The Wisconsin Manufacturing Extension Partnership's (WMEP) mission is to elevate the Wisconsin manufacturing economy to be the best in the world. We provide technical expertise and business assistance to help small and mid-size manufacturers grow and succeed.

In the past five years, we've helped more than 2,500 Wisconsin manufacturers implement strategies to boost competitiveness, profitability and growth.

The bulk of our work has been in helping companies implement and sustain lean manufacturing practices, but more recently we've been assisting many Wisconsin manufacturers with growth strategies to expand and diversify their markets.

WMEP's 35 manufacturing specialists typically have more than 20 years of private-sector manufacturing experience. There's no challenge or issue on the production floor or executive suite they haven't seen before or solved.

Our recently-expanded Green Bay team includes a former CEO of an automotive supply firm, a 35-year veteran of the metal fabrication industry and a 30-year veteran of the printing and machinery industries.

We measure the results of everything we do. Earlier this year we were honored to receive the state's top economic development award from the Wisconsin Economic Development Association (WEDA).

During the past five years, the manufacturers we've worked with reported $849 million in economic impact including $589 million in higher sales and $117 million in cost savings.

Compiled by Richard Ryman

About Mike Klonsinski

* Mike Klonsinski is executive director of the Wisconsin Manufacturing Extension Partnership, based in Madison but with representatives around the state. WMEP is a nonprofit consulting organization that provides technical and business assistance to manufacturers. It works with more than 250 Wisconsin manufacturers annually and received national and state awards for innovation and service to manufacturing.

* Klonsinski received a bachelor of arts degree in industrial engineering from the University of Wisconsin-Madison and a masters of business administration degree from the University of Texas-Austin. He is a Wisconsin native.

* Klonsinski worked for Texas Instruments in Dallas and was director of advanced technology for the Texas Department of Commerce. He developed the Texas Manufacturing Assistance Center before joining WMEP in 1997.

* He is on the board of directors of the Wisconsin Forward Award, the American Small Manufacturers Coalition and the UW Center for Operations and Technology Management.

About Mike Klonsinski

* Mike Klonsinski is executive director of the Wisconsin Manufacturing Extension Partnership, based in Madison but with representatives around the state. WMEP is a nonprofit consulting organization that provides technical and business assistance to manufacturers. It works with more than 250 Wisconsin manufacturers annually and received national and state awards for innovation and service to manufacturing.

* Klonsinski received a bachelor of arts degree in industrial engineering from the University of Wisconsin-Madison and a masters of business administration degree from the University of Texas-Austin. He is a Wisconsin native.

* Klonsinski worked for Texas Instruments in Dallas and was director of advanced technology for the Texas Department of Commerce. He developed the Texas Manufacturing Assistance Center before joining WMEP in 1997.

* He is on the board of directors of the Wisconsin Forward Award, the American Small Manufacturers Coalition and the UW Center for Operations and Technology Management.