Manufacturers' outlook strong; demand for skilled workers grows
In the first quarter Manufacturers’ Outlook Survey for 2019, manufacturers continue to report a positive outlook for their own company and marked nine consecutive quarters of record optimism. However, their top concern remains the inability to attract and retain a quality workforce (71.3 percent cited the inability to attract skilled workers as their top challenge).
RFP for Policy Academy on strengthening your state’s manufacturers
NIST Manufacturing Extension Partnership program is seeking participants for its second Policy Academy cohort designed to leverage manufacturing growth in your state. Funded by NIST MEP and organized by SSTI and the Center for Regional Economic Competitiveness (CREC), the Policy Academy will provide participants with an opportunity to collaborate with other states to identify best practices, partnerships, and policies that will strengthen their manufacturers.
Useful Stats: Employment in high-tech and manufacturing by state, 2013-2017
Many regional economic development strategies emphasize employment in manufacturing or high-tech, as these industries tend to provide well-paying jobs. Through an analysis of American Community Survey five-year data for 2013-2017, SSTI assessed state-level employment concentration within these sectors.
Ten states selected for manufacturing-focused Policy Academy
Ten states from across the country have been selected as part of a unique program designed to grow and strengthen their manufacturers. Over the course of the next year, interdisciplinary state teams will meet together in Washington, D.C., and separately in their home states, to develop and refine strategies impacting manufacturing industries.
Upjohn: ROI of Manufacturing Extension Partnership eclipses 14:1
The National Institute of Standards and Technology’s (NIST) Hollings Manufacturing Extension Partnership (MEP) Program generates a sizeable financial return on investment for the federal government, according to a recent study by the Michigan-based W.E. Upjohn Institute.
The National Institute of Standards and Technology’s (NIST) Hollings Manufacturing Extension Partnership (MEP) Program generates a sizeable financial return on investment for the federal government, according to a recent study by the Michigan-based W.E. Upjohn Institute. The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased federal personal income tax, a ROI of roughly 14.4:1 according to Upjohn researchers Jim Robey, Randall Eberts, Brian Pittelko, and Claudette Robey. Based on direct, indirect, and induced jobs generated by projects at MEP centers, the authors also find evidence that total employment in the U.S. was nearly 240,000 jobs higher than it would have been without the program.
Ignoring Industry 4.0 leaves firms vulnerable
Federal and private R&D portfolios are investing heavily in designing and refining the key innovation components of the transition to cyber-physical systems of production: artificial intelligence, automation, IoT, advanced materials, and dynamic, decentralized decision making to name a few elements. There also is a fair amount of buzz about Industry 4.0 from the big manufacturing consultants and around industry trade shows. Innovation and optimization, however, appear to be two very distant points on a continuum for both U.S.
New manufacturing initiative needed to reclaim American leadership
Sending a cautionary note and calling for a new initiative, a new report from MForesight takes a look at the challenges facing America’s leadership in advanced manufacturing. The short-term strategy of “invent here, make there,” has led to the erosion of domestic capabilities and has now become “invent there, manufacture there,” say the authors. They believe that reclaiming the country’s leadership in advanced manufacturing will be a complex and long-term undertaking — one that calls for a long-term government National Manufacturing Initiative.
Small-batch manufacturing needs connections to grow
In a recent report focused on the impact of the small-scale manufacturing sector, the Urban Manufacturing Alliance (UMA) compiled what they say is a first-ever examination of what this emerging sector looks like and what may help charge its growth. They found an information gap on these businesses, as many of them combine design, art and production, and fall outside of data collection categories used to classify manufacturers.
Report highlights challenges, lessons learned for reshoring advanced manufacturing companies
Reshoring manufacturing companies claim to be able to innovate at increasing rates, but some cite challenges with hiring qualified workers and with the country’s regulatory and trade policy environment, according to a new report from Select USA, a national program led by the U.S. Department of Commerce focused on business investment. In Reinvesting in the USA: A Case Study of Reshoring and Expanding in the United States, authors from Select USA look at the experiences of six manufacturing companies that chose to reinvest in their U.S. operations, providing detail on what drove them to reshore, challenges and benefits to the move, and general lessons learned. They find that, although the reshoring process was more expensive and time consuming than the case companies expected, local partners such as economic development agencies provided valuable resources to make the process easier.
Report highlights changing geographical trends in U.S. manufacturing
A recent report from Georgetown University’s Center on Education and the Workforce (CEW) details the changes in manufacturing’s geographic concentration across the country between 1940 and 2016. Manufacturing was the largest source of employment in 15 states in 1940, concentrated in the Northeast and Midwest, and had grown to the largest source of employment in 18 states by 2000, concentrated in the Southeast and central states.
A recent report from Georgetown University’s Center on Education and the Workforce (CEW) details the changes in manufacturing’s geographic concentration across the country between 1940 and 2016. Manufacturing was the largest source of employment in 15 states in 1940, concentrated in the Northeast and Midwest, and had grown to the largest source of employment in 18 states by 2000, concentrated in the Southeast and central states. However, manufacturing was the largest source of employment in only Indiana and Wisconsin by 2016.
Manufacturing rebound broad but uneven, report shows
Manufacturing growth is helping fuel one of the longest expansions in the U.S., steadily adding jobs since 2010, according to Economic Innovation Group’s (EIG) recent data brief, Manufacturing’s Real But Patchwork Rebound. While manufacturing job growth has risen over the past two years, the report notes that its growth was broad but uneven.
Policy Academy teams meet to strengthen manufacturers
As part of an official kick-off for a yearlong Policy Academy, interdisciplinary teams from around the country met in Washington, D.C., last week to advance policies that strengthen their manufacturing sectors. The four state participants – Kentucky, New Jersey, Puerto Rico, and Utah – are comprised of leadership from governor’s offices, state economic development departments, Manufacturing Extension Partnership centers, manufacturing trade associations, and other manufacturing centers.
As part of an official kick-off for a yearlong Policy Academy, interdisciplinary teams from around the country met in Washington, D.C., last week to advance policies that strengthen their manufacturing sectors. The four state participants – Kentucky, New Jersey, Puerto Rico, and Utah – are comprised of leadership from governor’s offices, state economic development departments, Manufacturing Extension Partnership centers, manufacturing trade associations, and other manufacturing centers. In addition to facilitated working groups, the event featured speakers from Deloitte, The National Center for the Middle Market, NIST, MForesight, New America, and the National Governors’ Association.
DOE launches manufacturing innovator challenge
The U.S. Department of Energy (DOE) announced two new manufacturing prizes as part of the Manufacturing Innovator Challenge, an effort to crowdsource solutions for next generation manufacturing, to increase energy productivity and strengthen America's industrial base. Both prizes focus on additive manufacturing: Additive Manufacturing for Disaster Response and Solid State Lighting Manufacturing.
The U.S. Department of Energy (DOE) announced two new manufacturing prizes as part of the Manufacturing Innovator Challenge, an effort to crowdsource solutions for next generation manufacturing, to increase energy productivity and strengthen America's industrial base. Both prizes focus on additive manufacturing: Additive Manufacturing for Disaster Response and Solid State Lighting Manufacturing. Participants will be asked to share designs that represent an innovation in each respective application of additive manufacturing.
Federal government releases new advanced manufacturing strategy
In honor of National Manufacturing day last week, the Trump administration released the Strategy for American Leadership in Advanced Manufacturing. Developed in partnership with the National Science and Technology Council (NSTC) and the Office of Science and Technology Policy (OSTP), the report is intended to outline the administration’s vision for American leadership in advanced manufacturing across industrial sectors.
In honor of National Manufacturing day last week, the Trump administration released the Strategy for American Leadership in Advanced Manufacturing. Developed in partnership with the National Science and Technology Council (NSTC) and the Office of Science and Technology Policy (OSTP), the report is intended to outline the administration’s vision for American leadership in advanced manufacturing across industrial sectors. It advocates pursuing three goals: develop and transition new manufacturing technologies; educate, train, and connect the manufacturing workforce; and, expand the capabilities of the domestic manufacturing supply chain.
US manufacturing showing signs of slowing
The New York state manufacturing report released this morning by the Federal Research Bank of New York is one of the brighter spots among the manufacturing surveys provided by the Fed banks each month. Manufacturers in the Empire State remain fairly optimistic in the six-month outlook as new orders continued to grow, business conditions improved, and employment levels increased.
Recent Research: Close look at manufacturing helps shape policy and practice
Last week, SSTI highlighted the recently released issue of the Economic Development Quarterly where three pieces stand out for their relevance to practitioners and policymakers. This article takes a look at how academic research can inform three common strategies for strengthening the manufacturing sector and encouraging regional economic development: targeting industry clusters, leveraging manufacturing extension services, and promoting workforce development.
Last week, SSTI highlighted the recently released issue of the Economic Development Quarterly where three pieces stand out for their relevance to practitioners and policymakers. This article takes a look at how academic research can inform three common strategies for strengthening the manufacturing sector and encouraging regional economic development: targeting industry clusters, leveraging manufacturing extension services, and promoting workforce development.
How can the US address the manufacturing skills gap?
With a potential economic impact of $2.5 trillion over the next decade, a new report from Deloitte and the Manufacturing Institute projects that the manufacturing skills gap may leave more than 2 million positions unfilled from 2018 to 2028. In the 2018 Skills Gap in Manufacturing Study, the authors find that the talent shortage is accentuated by two factors: a prolonged economic expansion that has increased the number of job openings in manufacturing and projected growth in baby boomer retirement. Although these two factors are expected to lead to more than 4.6 million manufacturing jobs over the next decade, the authors’ research finds that fewer than half of these jobs are likely to be filled. In addition to making the case that this skills shortage poses risks to the broader economy, the authors also put forward strategic approaches to influence a more positive employment future over the long-term.
Study shows MEP program generating significant returns
Money the federal government invests in the Manufacturing Extension Partnership (MEP) program is generating a substantial economic and financial return and powering an additional 219,000 jobs, according to a new study by the W.E. Upjohn Institute. The study of FY 2017 data showed a 14.5:1 financial return for the $128 million invested by the federal government.
MEP Centers continue to deliver consistent ROI to nation
Despite facing enormous challenges posed by the COVID-19 pandemic, manufacturers and Manufacturing Extension Partnership (MEP) Centers continued to deliver a “consistent and significant return on investment to the nation,” in FY 2020, according to a new analysis from the W.E. Upjohn Institute. MEP Centers deliver technical assistance to primarily small- and medium-sized manufacturing establishments to help them improve their productivity and competitiveness.
Report: Heartland stands to benefit most from reshoring
The COVID-19 pandemic highlighted the country’s reliance on overseas manufacturing production when there was a lack of medical supplies and equipment to treat those affected by the virus as supply chains were reliant on supplies from outside the country. A recent report from Heartland Forward finds that many domestic and foreign companies are recognizing the strategic advantages of locating in the U.S. and are considering reshoring operations.
Innovative manufacturing studied in Illinois, lessons for all
Implementing innovative policies is necessary for driving the manufacturing industry forward in Illinois, according to a recent report from the Illinois Manufacturing Excellence Center (IMEC). Nearly 600,000 Illinoisans are employed directly in manufacturing, and the manufacturing industry accounts for 12 percent of Illinois’s annual GDP. The findings of the state report, however, are adaptable and can be utilized across the United States in regions that seek to encourage innovation in manufacturing and promote job growth in an increasingly competitive globalized economy.
Manufacturing Week celebrates 10 years highlighting industry
This week marks the 10th anniversary celebration of National Manufacturing Week. National Manufacturing Week celebrates the role of the manufacturing sector within the United States. With roughly 12.1 million employees, the manufacturing sector is the fifth largest employer relative to other industries, according to the U.S. Census Bureau.
MBDA awards $3.7M in grants for specialty centers with emphasis on manufacturing
The U.S. Department of Commerce’s Minority Business Development Agency (MBDA) awarded $3.7 million total in federal funding across nine grant recipients to establish MBDA Advanced Manufacturing Centers, Export Centers, and a Federal Procurement Center.
DOE seeks input on creation of new Clean Energy Manufacturing Institute
The U.S. Department of Energy announced a request for information (RFI) to help inform the creation of a new Clean Energy Manufacturing Institute focused on industrial decarbonization.
The U.S. Department of Energy announced a request for information (RFI) to help inform the creation of a new Clean Energy Manufacturing Institute focused on industrial decarbonization. Released by DOE’s Office of Energy Efficiency and Renewable Energy (EERE), the RFI seeks input from stakeholders in identifying key opportunities to decarbonize energy-intensive sectors across America’s economy through public-private collaboration.
Defense awards $25 million to manufacturing communities
The Office of Local Defense Community Cooperation revealed the awardees from its second round of the Defense Manufacturing Community Support Program this week. The office awarded $5 million to each of five organizations to lead partnerships that will strengthen defense manufacturing and related supply chains. The five awards are listed below and available on the office’s website: