Last year, the manufacturing sector was responsible for 12% of the nation’s total economic output. In Indiana, the state where manufacturing contributes most, the figure was 28.2%. 24/7 Wall St. reviewed the 10 states where manufacturing represented the largest total share of the state economy.
The states with the biggest manufacturing economies specialize in different industries. In Oregon, nearly $38 billion of the state’s $50 billion manufacturing sector came from computer and electronic product manufacturing. In Louisiana, more than 10% of the state’s entire economic output in 2011 came from the manufacturing of petroleum and coal-based products. Michigan and Indiana both have sizable auto industries, with Michigan’s auto industry accounting for slightly less than a third of all its manufacturing output in 2011.
During the recession, and in many cases before the recession even started, many states’ manufacturing employment faced steep job losses. Between January 2007 and mid-2009, Indiana lost more than 100,000 manufacturing jobs. In Michigan, nearly 125,000 manufacturing jobs were lost between January 2008 and January 2009 alone.
Now, many of these states have seen employment rebound. Michigan had the fastest job growth in the nation from the end of 2009 to the end of 2011. According to Chad Moutray, chief economist at the National Association of Manufacturers, “the auto sector has been one of the driving sectors in the economy, pardon the pun, over the course of the last couple of years.”
In addition to Michigan, many parts of the Midwest benefited as well, he added. In Indiana, employment has risen more than 3.5% a year for each of the past three years, especially impressive in the context of the nation’s slow job growth overall.
While some believe that the benefits of a potential manufacturing renaissance are largely a myth, Moutray told 24/7 Wall St. that investments in the sector have a positive impact on the economy overall. He also noted that the prospect of added jobs may appeal to many Americans because it jobs pay well.
To identify the 10 states where manufacturing matters, 24/7 Wall St. used state gross domestic product (GDP) figures published by the Bureau of Economic Analysis. We determined from these data which states had the largest percentage of output attributable to manufacturing. Data on specific industries within the manufacturing sector from 2011 represent the most recent available figures. Employment figures for each state come from the Bureau of Labor Statistics and are seasonally adjusted.
Seasonally adjusted manufacturing job totals were not available for Alabama and Oklahoma.
These are the 10 states where manufacturing matters.
10. Alabama
- MFG share of output: 16.3%
- MFG output 2012: $30 billion (22nd highest)
- 2012 Unemployment rate: 7.3%
More than 16% of Alabama’s $183 billion worth of total output in 2012 came from manufacturing industries, about $30 billion. Last year, much of this output — $16.6 billion worth — came from the manufacturing of durable goods, which in 2012 accounted for 9.1% of total GDP, the ninth-highest percentage in the country. This includes the manufacturing of wood products, nonmetallic mineral products and so forth. News reports suggest a strong tradition of manufacturing in Alabama. Mobile County, for example, will now be the site of Airbus’s new A320 jetliner final assembly line, which will likely be the company’s first U.S.-based production facility. The project, which is scheduled to begin in 2015, is expected to create thousands of jobs, a welcome prospect in the wake of declining manufacturing industries this past decade.
9. Michigan
- MFG share of output: 16.5%
- MFG output 2012: $66.2 billion (8th highest)
- 2012 Unemployment rate: 9.1%
Each of the “Big Three” U.S. auto manufacturers — Chrysler, Ford and General Motors — is based in Michigan, and car sales are trending upward. This likely will be critical for the state: motor vehicle manufacturing accounted for nearly 5% of the state’s total GDP in 2011, far more than any other state. Michigan also led the nation with $18.8 billion in motor vehicle manufacturing output in 2011. The resurgence in the auto industry has not only boosted output but also led to job growth. Manufacturing employment in Michigan rose 7.9% between the ends of 2010 and 2011, leading all states, and then by an additional 3.9% between the ends of 2011 and 2012, also among the most in the nation. But this did little to help Detroit avoid a bankruptcy filing since extremely few auto manufacturing jobs exist within the city limits.
8. Iowa
- MFG share of output: 16.7%
- MFG output 2012: $25.4 billion (25th highest)
- 2012 Unemployment rate: 5.2%
Iowa had the 30th largest state economy in the nation last year. However, relative to its GDP, Iowa is still one of the nation’s largest manufacturers. This is especially the case for non-durable goods, which accounted for 8.4% of the state’s total output in 2012, the fifth-highest percentage in the nation. In 2011, when non-durable goods manufacturing accounted for 8.3% of Iowa’s output, nearly half of this contribution came from food, beverage and tobacco manufacturing. At 4% of state GDP, this was more than any other state except North Carolina. Despite low crop yields due to drought, Iowa was the leading producer of both corn and soybeans in 2012, according to the USDA.
7. Ohio
- MFG share of output: 17.1%
- MFG output 2012: $87.2 billion (5th highest)
- 2012 Unemployment rate: 7.2%
Ohio is a major manufacturer of a range of products. In 2011, it was one of the largest manufacturers of both primary and fabricated metals products, which together accounted for about 3% of the state’s output that year. The state was also the nation’s leader in producing plastics and rubber products, which accounted for more than $5.3 billion in output in 2011, or 1.1% of Ohio’s total output. Likely contributing to Ohio’s high output of manufactured rubber products, the state is home to Goodyear Tire & Rubber, a Fortune 500 company. At the end of 2012, Ohio was one of the top states for manufacturing employment, with roughly 658,000 jobs, trailing only far-larger California and Texas.
6. Kentucky
- MFG share of output: 17.1%
- MFG output 2012: $29.75 billion (23rd highest)
- 2012 Unemployment rate: 8.2%
In 2011, Kentucky manufactured nearly $4 billion worth of motor vehicles, bodies, trailers and parts, the fifth-largest output in the nation. As of 2011, this manufacturing industry was worth 2.4% of Kentucky’s GDP, the third-largest percentage in the country. In 2011, electrical equipment, appliance, and component manufacturing had an output of only about $1.3 billion the 15th highest, but this may be expected to improve. Louisville is home to the GE Appliance Park, where the company has recently built two new assembly lines. The assembly lines, which cost more than $100 million, will produce high-efficiency washing machines and will create about 200 jobs, in addition to the thousands of jobs GE has created in the region over the past few years with its opening of several other factories.
5. Wisconsin
- MFG share of output: 19.1%
- MFG output 2012: $49.98 billion (12th highest)
- 2012 Unemployment rate: 6.9%
Wisconsin led the nation in paper manufacturing in 2011, with nearly $4 billion in output, which was 1.5% of the state’s total GDP and the third-greatest portion of total output. In 2012, Wisconsin was a large producer of durable goods, which accounted for 11.3% of its GDP, up from 10.7% the previous year, holding on to its fourth place position. In spite of Wisconsin’s high output in the paper industry, the state’s Chamber of Commerce has expressed concerns regarding the implementation of government regulations that may hurt current and future job prospects. Officials in Wisconsin claim the new Boiler MACT regulations, for example, will have a negative economic impact on pulp and paper industry jobs in the state.
4. North Carolina
- MFG share of output: 19.4%
- MFG output 2012: $88.25 billion (4th highest)
- 2012 Unemployment rate: 9.5%
Last year, North Carolina was the fourth-largest manufacturing economy in the country, losing the third-place position to Illinois. In 2011, of the state’s $84 billion manufacturing output, nearly $24 billion alone came from chemical manufacturing.Roughly 5.5% of the state’s GDP arose from chemical manufacturing alone. Another close to $20 billion came from the food, beverage, and tobacco product industry, more than any state but California. North Carolina’s tobacco economy is one of the second-largest in the country, and R.J. Reynolds, the second-largest tobacco company by sales in the U.S., is based in the state.
3. Louisiana
- MFG share of output: 22.6%
- MFG output 2012: $55.10 billion (11th highest)
- 2012 Unemployment rate: 6.4%
None of the nation’s manufacturing leaders produced less output from durable goods manufacturing than Louisiana, at $7.7 billion. Similarly, in 2011, the state produced just $7.1 billion in manufactured durable goods. Louisiana was among the nation’s largest manufacturers of chemicals, as well as petroleum and coal products, that year, helping the state’s totals. As of 2011, more than 10% of the state’s GDP came from petroleum and coal manufacturing, by far the highest percentage in the nation. The state remains one of the nation’s leading oil refiners. According to the U.S. Energy Information Administration, “the Louisiana Offshore Oil Port (LOOP) is the only port in the U.S. capable of offloading deep draft tankers.”
2. Oregon
- MFG share of output: 27.8%
- MFG output 2012: $55.16 billion (10th highest)
- 2012 Unemployment rate: 8.7%
Oregon manufactured nearly $38 billion worth of computer and electronic products in 2011, up from the year before, and second in the nation. That output is behind California, but its percentage of total GDP was 20%, surpassing by far second place Idaho, where computer and electronic manufacturing accounts for only about 5.8% of total output as of 2011. Recent outside investments in the state reinforce the tech-heavy industries in Oregon. In the first half of this year, for example, AT&T invested nearly $80 million in its Oregon network to improve performance for Oregon residents, according to the Portland Business Journal.
1. Indiana
- MFG share of output: 28.2%
- MFG output 2012: $84.15 billion (6th highest)
- 2012 Unemployment rate: 8.4%
Indiana has added manufacturing jobs at one of the fastest rates in the nation over the past several years, with year-over-year growth in manufacturing at or above 3.7% at the end of each of the past three years. Some of this growth came from companies like Honda expanding their factories and adding thousands of jobs, which made headlines in 2011. Developments like these are critical for the economy of the state, which depends on manufacturing more than anywhere else in the nation. In 2012, Indiana had just the nation’s 16th largest economy, while its output from manufacturing exceeded all but a handful of states. In 2010 and 2011, Indiana was one of the leading states in total output from both motor vehicle-related and chemicals manufacturing. Manufacturing of chemical products accounted for 7% of the state’s GDP in 2011, at least partly due to the presence of pharmaceutical giant Eli Lilly, which has vendors throughout the state.
24/7 Wall St.com is a financial news and commentary website. Its content is produced independently of USA TODAY.
Why America Needs a National Manufacturing Strategy
in Uncategorized/by MAM TeamUnfortunately, manufacturing in the United States has lost competitive advantage in the last 15 years and unless this turns around significantly it will continue to be a drag on our efforts to fully recover from the Great Recession.
There is no inherent reason the United States could not run a significant trade surplus in manufacturing. America possesses the tools, talent, and resources to revive industrial production and our innovation economy.
Read the rest of the article here: http://www.industryweek.com/competitiveness/why-america-needs-national-manufacturing-strategy?goback=.gde_4765254_member_267015572#%21
Wal-Mart Pledge to Buy American Meets With Skepticism
in Uncategorized/by MAM TeamWal-Mart, known for buying the lowest-cost goods wherever they are made, has become a lightning rod for community leaders worried about the hollowing-out of America’s industrial base.
But at Wal-Mart’s Manufacturing Summit held in Orlando, Fla., late last week and attended by 1,500 government officials, suppliers and retailers, the company said it sees a future for U.S. manufacturing.
“At the summit, we are building a network of support for domestic manufacturing,” Simon said. “In the room, we have the capital, the expertise, the ideas, and, most importantly, the will.”
Buying in U.S. good PRCBC business commentator Michael Hlinka dismissed the pledge to buy American as “pure PR” motivated by a political climate in which it is seen as good business to invest in the U.S.
“Wal-Mart has been a wonderful organization with a shark-like focus that says whatever is the lowest price, that’s what we’re going to do,” he said on CBC’s Metro Morning.
“Wal-Mart has been criticized about its procurement policies. It generates about two-thirds of its revenue in the U.S., and there is no way, when you step inside a store, you’re going to see two-thirds of the products are built in North America.”
He points out that with sales of $250 billion a year, Wal-Mart’s pledge to buy $50 billion in U.S. goods over 10 years amounts to less than two per cent of its sales.
‘Buying American’ won’t translate into jobsStacy Mitchell, a researcher with the U.S.-based Institute for Local Self-Reliance, says for Wal-Mart, buying American will be a byproduct of its continued takeover of the U.S. grocery business.
Most grocery products sold in the U.S. are produced in America, and Wal-Mart will be buying more U.S. foods, particularly produce, as it displaces other grocers, she says.
“But this doesn’t mean new jobs, because other grocers are losing market share and buying less,” Mitchell said in an article for AlterNet.
She recalled Wal-Mart’s 1980s “Buy America” program, which occurred as the retailer was moving to do most of its acquisitions overseas.
But business analysts at the Wal-Mart summit say the low-cost manufacturing havens such as China are losing their competitive edge. As workers in developing nations demand higher wages and the cost of transporting goods increases with the cost of oil, it becomes cheaper to buy U.S.-made goods.
Among the businesses who say they are manufacturing in the U.S. are:
“Right now, companies in America are making and selling products around the world at an all-time record pace, and the incentives to make things here and hire American workers is only getting stronger,” U.S. Secretary of Commerce Penny Pritzker Pritzker told the summit.
U.S. Manufacturing Isn’t Dead Yet
in Uncategorized/by MAM TeamBut for manufacturing to succeed, the business community, institutions of higher education, policymakers and consumers need to make some major changes.
Many of us have the image of a post-World War II-era assembly line, but times have changed and our modern facilities require individuals that can work with sophisticated machinery. In fact, as we toured 32 cities in 32 days on our American manufacturing bus tour, the majority of manufacturers from towns like Tupelo, Miss., and Warren, Penn., complained that there are jobs available but there is a lack of eligible candidates with specialty degrees who are trained to work for the factories.
So, how do we educate and train young adults to be workforce-ready?
Jobs are a key barometer for the economy. Twenty years ago, U.S. manufacturers employed 17 million Americans; today that number stands at 12 million. To compete with these steadily dropping numbers, we need to provide the apprenticeship training necessary for a new generation of American worker to grow as fast as our technology is changing.
And there are innovative schools out there that are teaching young adults the skills necessary to operate new machinery and programs. In schools like Ranken Technical College in St. Louis, Mo., students are being trained on cutting-edge equipment for jobs in the construction and manufacturing industries.
The proof is in the data. These schools have a nearly 98% placement rate and often work with local businesses to employ graduates in hometown companies.
Although education leads to employment, consumers have to be willing to buy American.
Free-range chickens, local oranges and organic avocados in your grocery store. We are largely conscious consumers in that we increasingly research where our food is produced, yet too many Americans don’t take the time to research and demand their t-shirts, jeans and everyday living necessities are made domestically. And some of this burden falls on the manufacturers and storeowners who need to promote the “Made in America” brand.
The perfect example of a major company producing in America is the athletic shoe company New Balance that employs about 1,300 workers in New England alone. While critics make the claim that American-made products are more expensive, New Balance sneakers are competitively priced to foreign-made shoes like Nike.
But what role does Washington D.C. have in this movement? Better yet, what should they be doing to keep jobs in America?
Instead of burying the responsibility in the halls of the U.S. Department of Commerce, we agree with many scholars and thought leaders that there should be a separate agency focused on manufacturing.
A U.S. Department of Manufacturing could create national standards, guidelines and incentives for manufacturers.
As filmmakers, we get tax incentives for making our movies in certain states. Why not do the same for manufacturing companies? Tax incentives would keep U.S. companies from outsourcing and lure jobs back from overseas. In fact, this idea of bringing companies back to America would help bring almost five million jobs to our shores by 2020, reducing our stagnant unemployment rate by three percentage points.
And some — unfortunately, few — are fighting for U.S. jobs in the Halls of Congress.
Scott Paul, president of Alliance for American Manufacturing, a partnership made up of American manufacturers and the United Steelworkers union, has offered great ideas on how to improve our manufacturing policy overseas. He’s called for a refocus on “trade agenda by giving American businesses new tools to counter China’s currency manipulation, industrial subsidies, intellectual property theft and barriers to market access.”
Our country is eager to re-energize U.S. manufacturing and in some towns they are already taking the necessary steps. We are hopeful that success stories slowly coming out of our small and large cities will help motivate a united effort by consumers, educators, the business community and policy makers to bring jobs back to America.
Vincent Vittorio and Nathan McGill are directors of the upcoming documentary “American Made Movie,” premiering nationwide on Aug. 30 .
U.S. Manufacturers Gain Ground
in Uncategorized/by MAM TeamThe U.S. deficit on trade of manufactured goods in this year’s first half shrank to $225 billion from $227 billion a year earlier, according to data compiled by Ernest Preeg, an economist and trade expert at the Manufacturers Alliance for Productivity and Innovation, an industry-funded research group in Arlington, Va. The improvement, while slight, came after years of ballooning deficits as the U.S. lost manufacturing business to China, South Korea and other nations.
“It’s a hopeful sign,” said Mr. Preeg, who derives his tally of manufactured-goods trade from official U.S. data, leaving out other types of merchandise, such as grain or coal. “At least we’ve leveled off.”
The overall U.S. trade deficit, meanwhile, narrowed recently, as new shale-drilling technologies have sharply boosted domestic energy production.
At present, about 12 million Americans are directly employed by manufacturers, down from nearly 17 million two decades ago. The Obama administration has made a manufacturing recovery a top priority, and major corporations are striving to showcase their efforts to create manufacturing jobs. On Thursday, Wal-Mart Stores Inc. is due to host 500 suppliers in Orlando, Fla., to discuss its “commitment to leading an American renewal in manufacturing” by buying more U.S.-made goods.
Europe’s long-running slump, slower growth in China and a stronger dollar have been headwinds for U.S. exporters, but many have managed to expand overseas sales.
Harley-Davidson Inc. continues to add dealers abroad. “We’re very excited about the growth prospects in our international businesses,” John Olin, chief financial officer, told analysts last month. The Milwaukee-based company recently said retail motorcycle sales jumped 12% in the Asian-Pacific region and 39% in Latin America in the second quarter.
Like many U.S. manufacturers, Harley since the 2008-09 recession has revamped its operations to create a smaller and more flexible workforce, resulting in annual cost savings of more than $300 million and making the company more competitive. Among the changes: The union at its plant in York, Pa., accepted the use of temporary workers, who can be dismissed without severance pay. The number of job classifications at York also fell to five from 62, so workers have a wider variety of skills and can go where needed. As restrictive working rules were eliminated, a 136-page labor contract was replaced by a 58-page document.
Evan Smith, president of Hanover, N.H.-based Hypertherm Inc., said sales of its metal-cutting tools have been growing this year in the Middle East and Latin America. Opening a distribution center in Brazil helped, he said.
Minneapolis-based Graco Inc. has increased sales in Central and Eastern Europe of equipment used to spray paint and other coatings on roads, bridges and buildings, said spokesman Bryce Hallowell.
Big companies, such as Caterpillar Inc. and General Electric Co., have moved some production back to the U.S. in recent years. Some foreign companies, such as tire maker Bridgestone Corp. of Japan, have expanded U.S. capacity, partly to serve customers in the Americas.
As the boom in shale “fracking” lowers natural-gas and electricity prices in the U.S., and wages stagnate, “the U.S. is steadily becoming one of the lowest-cost countries for manufacturing in the developed world,” the BCG report said. The U.S. will have an edge over rival manufacturing nations in energy costs, along with lower productivity-adjusted labor costs than Germany, Japan, France, Italy and Britain, the report said. That will allow the U.S. to grab a larger share of global manufacturing sales.
“This is a fundamental economic shift,” said Harold Sirkin, a senior partner at BCG, who helped write the report. “The trends are going faster than we thought,” he said, adding: “As much as people say we don’t make anything anymore, it’s just not true.”
Even so, the U.S. has lost much ground over the past 15 years, largely because of China’s surging growth and focus on exports. The U.S. accounted for 11% of global exports of manufactured goods in 2011, down from 19% in 2000, Mr. Preeg said. During the same period, China’s share rocketed to nearly 21% from 7%, and the European Union slipped to 20% from 22%.
China’s performance has cooled recently. U.S. exports of manufacturing goods to China surged 19% to $19.9 billion in the second quarter, Mr. Preeg said, but that is about one-fifth of China’s manufacturing exports to the U.S.
U.S. manufacturers still face big hurdles. Many can’t find enough skilled workers to operate and repair sophisticated computer-controlled machinery, a shortage worsened by the retirement of baby boomers. Faster economic growth in China, India and Brazil means many global companies still want to open more plants there. A U.S. corporate focus on quarterly results sometimes deters investment in factory equipment, while many U.S. firms say they pay higher taxes and get fewer subsidies than foreign rivals.
Meanwhile, China no longer relies heavily on labor-cost advantages to get a leg up on other countries. As wages rise, China has shifted to more exports of higher-tech items, including telecommunications equipment, computers and scientific instruments, Mr. Preeg said. Only about 15% of China’s manufacturing exports are in labor-intensive industries, such as textiles or shoes, he said.
Write to James R. Hagerty at bob.hagerty@wsj.com
A version of this article appeared August 19, 2013, on page A1 in the U.S. edition of The Wall Street Journal, with the headline: Manufacturers Gain Ground.
P&G Voluntarily Recalls Limited Quantity of Dry Pet Food
in Uncategorized/by MAM TeamHealthy people infected with Salmonella should monitor themselves for some or all of the following symptoms: nausea, vomiting, diarrhea or bloody diarrhea, abdominal cramping and fever. Rarely, Salmonella can result in more serious ailments, including arterial infections, endocarditis, arthritis, muscle pain, eye irritation, and urinary tract symptoms. Consumers exhibiting these signs after having contact with this product should contact their healthcare providers.
Pets with Salmonella infections may be lethargic and have diarrhea or bloody diarrhea, fever, and vomiting. Some pets will have only decreased appetite, fever and abdominal pain. Infected but otherwise healthy pets can be carriers and infect other animals or humans. If your pet has consumed the recalled product and has these symptoms, please contact your veterinarian.
This issue is limited to the specific dry pet food lot codes listed below. This affects roughly one-tenth of one percent (0.1%) of total annual production. The affected product was distributed to select retailers across the United States. These products were made during a 10-day window at a single manufacturing site. P&G’s routine testing determined that some products made during this timeframe have the potential for Salmonella contamination. As a precautionary measure, P&G is recalling the potentially impacted products made during this timeframe. No other dry dog food, dry cat food, dog or cat canned wet food, biscuits/treats or supplements are affected by this announcement.
P&G is retrieving these products as a precautionary measure. Consumers who purchased a product listed below should stop using the product and discard it and contact P&G toll-free at 800-208-0172 (Monday – Friday, 9 AM to 6 PM ET), or via website at www.iams.com or www.eukanuba.com. Media Contact: Jason Taylor, 513-622-1111.
Click here to view products affected by this announcement.
Contact:
Procter & Gamble
P&G Consumer Relations, 800-208-0172
Making It In The U.S.A. One Step At A Time
in Uncategorized/by MAM TeamHowever, in 2002, the Defense Department began bypassing the Berry Amendment’s requirements for footwear by issuing cash allowances to new recruits to purchase any kind of training shoes, including non-American-made footwear. The DoD has spent approximately $180 million on the athletic footwear cash allowance to date, which is money that could have gone to support American jobs and manufacturing.
Defense originally justified the allowance program by citing a lack of American-made options in the marketplace. They believed there simply were not enough footwear manufacturers producing 100 percent American made shoes.
Today that argument has been upended by companies that have devoted money and resources to producing their footwear completely on American soil.
New England’s own New Balance has proven it can be done. With multiple facilities around the region that employ thousands of New Englanders, including 800 employees in Massachusetts and nearly 900 in Maine, they are making sneakers from first stitch to final product in the United States, producing a 100 percent American-made shoe that costs less than the current Army allowance. When the Army recently inquired to see if there were other footwear companies interested in supplying the military with American-made shoes, more than a dozen other footwear companies expressed interest.
With multiple manufacturers interested in or close to capable of producing compliant footwear, action can be taken to close the DoD loophole. Together, we have co-authored an amendment that would do just that, bringing the policy back in line with the 1941 Berry Amendment. Our amendment received strong congressional support and was successfully added to the final House version of the annual defense bill approved June 14.
If passed into law, our amendment would not go into effect until after the secretary of defense certifies that there are at least two domestic suppliers who can provide 100 percent American-made athletic shoes, in order to assuage any lingering concerns about domestic competition.
Major national footwear companies support this effort. A spokesman from New Balance called it a very important win for domestic manufacturing. Wolverine World Wide, the parent company of Saucony, has a Berry-compliant prototype and with help from incentives such as our amendment, could quickly step up a larger manufacturing operation.
Rather than losing jobs to overseas competitors, we must invest in ways to grow the domestic manufacturing base and promote the policies and companies that have committed to keeping jobs here. This amendment does all of that and has the added benefit of simultaneously giving the brave men and women of our armed forces better, quality gear, proudly American-made.
When more products are made in America, there will be greater opportunity for our people to make it in America. Closing the loophole on military footwear is a step in the right direction.
U.S. Rep. Niki Tsongas (D) represents Massachusetts 3rd Congressional District. Rep. Mike Michaud (D) represents Maine’s 2nd District.
'Manufacturing 2.0' Finds Home in New York
in Uncategorized/by MAM TeamThis space in an anonymous building in New York’s Long Island City neighbourhood, just across the river from Manhattan, isn’t cooking up breads and pastries, however. It’s a factory, filled with 3-D printers “baking” items by blasting a fine plastic dust with lasers.
When a production run is done, a cubic foot of white dust comes out of each machine. Packed inside the loose powder like dinosaur bones in sand are hundreds of unique products, from custom iPhone cases to action figures to egg cups.
Manufacturing is coming back to New York City, but not in a shape anyone’s seen before. The movement to take 3-D printing into the mainstream has found a home in one of the most expensive cities in the country. New York’s factories used to build battleships, stitch clothing and refine sugar, but those industries have largely departed. In recent years, manufacturing has been leaving the U.S. altogether. But 3-D printing is a different kind of industry, one that doesn’t require large machinery or smokestacks.
“Now technology has caught up, and we’re capable of doing manufacturing locally again,” says Peter Weijmarshausen, CEO of Shapeways, the company that runs the factory in Long Island City.
Weijmarshausen moved the company here from The Netherlands. Another company that makes 3-D printers, MakerBot, just opened a factory in Brooklyn. And in Brooklyn’s Navy Yard, where warships were once built to supply the Arsenal of Democracy, there’s a “New Lab,” which serves as a collaborative workspace for designers, engineers and 3-D printers.
3-D printers have been around for decades, used by industrial engineers to produce prototypes. In the last few years, the technology has broken out of its old niche to reach tinkerers and early technology adopters. It’s the consumerization of 3-D printing that’s found a hub in New York. The technology brings manufacturing closer to designers, which New York has in droves.
Shapeways’ production process is fairly simple.
Anyone can upload a 3-D design to Shapeways’ website and submit an order to have it “printed” in plastic at the factory. The company charges based on the amount of material a design uses and then ships the final product to the customer. Smartphone cases are popular, but many items are so unique they can only be identified by their designer, such as the replacement dispenser latch for a Panasonic bread maker. There’s an active group of designers who are “Bronies” – adult male fans of the show My Little Pony: Friendship is Magic – who print their own ponies. The company prints in a wider range of materials, including sandstone and ceramic, at its original factory in Eindhoven, the Netherlands.
If that was all Shapeways did, the company would be little more than an outsourced machine shop. But with the help of the Internet, it’s taking the business model one step further. Anyone can set up a “shop” on the Shapeways site and let people order prints from their designs. Want a replica skeleton of a Death’s-head Hawkmoth? That’s $15. How about a full-colour sandstone sculpture of actor Keanu Reeves? He’s $45.
Under the old mass production model, Weijmarshausen says, designers first need to figure out if there’s a market for their product, then raise money for production, and then find a manufacturer, who usually has to custom-make dies for moulding plastic. The cost can run to tens of thousands of dollars. After that, the designer must get the product distributed and find out how customers react to it.
“With the Shapeways shop, that process is completely condensed,” Weijmarshausen says. “If there is no market for your product, then the only thing you lose is some time.”
For its part, MakerBot is spearheading another side of the 3-D printing boom by making affordable desktop 3-D printers. About the size of a microwave oven, the printers feed melted plastic out of “print heads” that move in three dimensions, gradually building objects as the plastic cools. Instead of sending a 3-D design to Shapeways, a MakerBot owner can print an object in plastic at home, as long as it’s smaller than a loaf of bread. MakerBot’s printers range in price from $2,200 to $2,800.
MakerBot’s factory is in an old industrial building on Brooklyn’s waterfront, across the street from a Costco and a strip club. Only assembly, testing and repair is done here, so the interior looks more like a workshop than a manufacturing plant. Subcontractors elsewhere do the dirty and noisy jobs like machining of components.
The privately held company agreed in June to sell itself to Stratasys Ltd., a maker of professional 3-D printers, for $403 million in stock. Stratasys is based in Minneapolis and Rehovot, Israel, but Bre Pettis, the CEO of MakerBot, says the factory will stay in Brooklyn.
Pettis looks like a Brooklyn hipster, with his thickrimmed glasses and upswept hairdo. The company got its start in the borough, and he says keeping the factory here is a rational economic decision. Having the engineers nearby means the company can work fast and introduce more than one new model a year, a crucial advantage in the fast-moving 3-D printing space. Pettis also notes that labour costs are going up in Asia’s manufacturing hubs. “Brooklyn Pride” is also a factor.
“You can’t underestimate the power of people who take pride in their work,” he says.
Weijmarshausen moved Shapeways to the U.S. to get closer to its customers. He picked New York over cities such as San Francisco and Boston because of its design and fashion industry, which meshes well with 3-D printing.
Alas for New York, the consumer 3-D printing industry is still a tiny one, and there’s no indication that it could single-handedly reverse the long, slow flight of manufacturing jobs. Of the one million manufacturing jobs the city had at its peak during the Second World War, 93 per cent are now gone, according to the U.S. Bureau of Labor Statistics. The Shapeways factory has 22 employees and plans to ramp up to at least 50, while MakerBot employs 274 people. And the jobs aren’t necessarily well paid; Pettis says the MakerBot factory workers make “more than minimum wage.”
But Weijmarshausen points out that Shapeways has the potential to provide a livelihood for many more people – successful designers. There are already hundreds of them making “substantial” money from their online Shapeways stores, but he won’t reveal specific figures.
In a larger sense, 3-D printing opens up the possibility of a new type of manufacturing economy, one that aligns more closely with the strengths of American creative meccas like New York than with the strengths of China.
David Belt, a real estate developer whose company is refurbishing the New Lab space in the Brooklyn Navy Yard, says there’s a demand for products that are made in runs of less than 10,000 units. That’s too few to be economical using conventional injectio
n-m
oulding of plastic, but viable with 3-D printing.
One example of the combined power of 3-D printing and direct-to-consumer sales is the Spuni, a new type of spoon for babies. Boston couple Isabel and Trevor Hardy noticed that a baby taking a bite from a regular baby spoon leaves a lot of food on the utensil. Together with their friend Marcel Botha, an entrepreneur who makes medical devices, they sketched up a new spoon that “front-loads” the food, leaving less uneaten. Thanks to a 3-D printer, they had a prototype utensil eight days later, ready to test with a live baby.
“We were able to reproduce what the final spoon would look like physically at a very low cost,” Botha says.
With the prototype, Botha and his partners were able to demonstrate the Spuni to buyers through a video on crowdfunding website Indiegogo. Their campaign for donations raised $37,235 – enough to start a mass production run. The spoons are being made in a traditional factory in Germany, but Botha is running the Spuni project from the New Lab in Brooklyn.
On the factory floor in Brooklyn, Adjua Greaves, 32, does quality assurance work, testing MakerBot printers before they’re shipped. She used to work in publishing, a signature New York business that’s been hurt by the rise of ebooks. After freelancing for a while, Greaves wanted a steady job, and says she had “a romantic idea about working in a factory,” partly inspired by a Sesame Street episode about the making of crayons.
“I always wanted to have a connection to a factory, but more as an intellectual observer,” she says. “The romantic idea of a factory is very, very different from what it’s really like in a factory, but it’s really, really wonderful to be here.”
Manufacturing Council Eyes Retraining Curriculum For Skilled Jobs
in Uncategorized/by MAM TeamCircumstances are no different in Jefferson and Lewis Counties, according to David J. Zembiec, deputy director of the Jefferson County Industrial Development Agency.
To remedy the situation, the JCIDA’s Manufacturing Council is planning to start an adult education course this fall to close the skills gap reported by local businesses.
The program will be geared toward training individuals for jobs that require more than a high school diploma but less than an associate degree, Mr. Zembiec said.
Companies are not only looking for basic skills such as welding but also for problem-solving skills and the ability to think conceptually.
The program, which will take students about four months to complete, will involve classes two to three times per week, Mr. Zembiec said.
The idea was developed through a partnership between manufacturing, education, workforce development and economic development officials, and its pilot run is taking place with the aid of donated materials from local manufacturers.
However, without additional help, the program will not be sustainable, Mr. Zembiec said.
To put the program on a more stable footing, its creators are applying to the North County Economic Development Council for additional funding. The goal is to run the program through the Jefferson-Lewis Board of Cooperative Educational Services with a permanently assigned instructor.
For now, the JCIDA has to find space to hold the pilot program, which it hopes to begin in the fall. It is currently seeking a location from BOCES or from a local manufacturer.
If the agency receives a grant from the economic development council, it will use the experiences from the test run to help structure a more formalized program, Mr. Zembiec said.
The goal of the program is three-fold, according to Mr. Zembiec:
■ To serve those who want to improve their career prospects.
■ To help manufacturers remain competitive and grow by making sure they have the workforce they need.
■ To encourage entrepreneurial enterprises.
At its Friday meeting, members of the Manufacturing Council also discussed the prospect of putting together a video aimed at changing preconceived notions about manufacturing held by middle school and high school students as well as their parents and guidance counselors.
M. Lynn Brown, general manager of WPBS-DT, Watertown’s public broadcasting station, was on hand along with two members of her staff to discuss ideas for the video.
10 States Where Manufacturing Still Matters
in Jobs, MANUFACTURERS, Manufacturing, Manufacturing & Sourcing/by The Made in America Movement TeamLast year, the manufacturing sector was responsible for 12% of the nation’s total economic output. In Indiana, the state where manufacturing contributes most, the figure was 28.2%. 24/7 Wall St. reviewed the 10 states where manufacturing represented the largest total share of the state economy.
The states with the biggest manufacturing economies specialize in different industries. In Oregon, nearly $38 billion of the state’s $50 billion manufacturing sector came from computer and electronic product manufacturing. In Louisiana, more than 10% of the state’s entire economic output in 2011 came from the manufacturing of petroleum and coal-based products. Michigan and Indiana both have sizable auto industries, with Michigan’s auto industry accounting for slightly less than a third of all its manufacturing output in 2011.
During the recession, and in many cases before the recession even started, many states’ manufacturing employment faced steep job losses. Between January 2007 and mid-2009, Indiana lost more than 100,000 manufacturing jobs. In Michigan, nearly 125,000 manufacturing jobs were lost between January 2008 and January 2009 alone.
Now, many of these states have seen employment rebound. Michigan had the fastest job growth in the nation from the end of 2009 to the end of 2011. According to Chad Moutray, chief economist at the National Association of Manufacturers, “the auto sector has been one of the driving sectors in the economy, pardon the pun, over the course of the last couple of years.”
In addition to Michigan, many parts of the Midwest benefited as well, he added. In Indiana, employment has risen more than 3.5% a year for each of the past three years, especially impressive in the context of the nation’s slow job growth overall.
While some believe that the benefits of a potential manufacturing renaissance are largely a myth, Moutray told 24/7 Wall St. that investments in the sector have a positive impact on the economy overall. He also noted that the prospect of added jobs may appeal to many Americans because it jobs pay well.
To identify the 10 states where manufacturing matters, 24/7 Wall St. used state gross domestic product (GDP) figures published by the Bureau of Economic Analysis. We determined from these data which states had the largest percentage of output attributable to manufacturing. Data on specific industries within the manufacturing sector from 2011 represent the most recent available figures. Employment figures for each state come from the Bureau of Labor Statistics and are seasonally adjusted.
Seasonally adjusted manufacturing job totals were not available for Alabama and Oklahoma.
These are the 10 states where manufacturing matters.
10. Alabama
More than 16% of Alabama’s $183 billion worth of total output in 2012 came from manufacturing industries, about $30 billion. Last year, much of this output — $16.6 billion worth — came from the manufacturing of durable goods, which in 2012 accounted for 9.1% of total GDP, the ninth-highest percentage in the country. This includes the manufacturing of wood products, nonmetallic mineral products and so forth. News reports suggest a strong tradition of manufacturing in Alabama. Mobile County, for example, will now be the site of Airbus’s new A320 jetliner final assembly line, which will likely be the company’s first U.S.-based production facility. The project, which is scheduled to begin in 2015, is expected to create thousands of jobs, a welcome prospect in the wake of declining manufacturing industries this past decade.
9. Michigan
Each of the “Big Three” U.S. auto manufacturers — Chrysler, Ford and General Motors — is based in Michigan, and car sales are trending upward. This likely will be critical for the state: motor vehicle manufacturing accounted for nearly 5% of the state’s total GDP in 2011, far more than any other state. Michigan also led the nation with $18.8 billion in motor vehicle manufacturing output in 2011. The resurgence in the auto industry has not only boosted output but also led to job growth. Manufacturing employment in Michigan rose 7.9% between the ends of 2010 and 2011, leading all states, and then by an additional 3.9% between the ends of 2011 and 2012, also among the most in the nation. But this did little to help Detroit avoid a bankruptcy filing since extremely few auto manufacturing jobs exist within the city limits.
8. Iowa
Iowa had the 30th largest state economy in the nation last year. However, relative to its GDP, Iowa is still one of the nation’s largest manufacturers. This is especially the case for non-durable goods, which accounted for 8.4% of the state’s total output in 2012, the fifth-highest percentage in the nation. In 2011, when non-durable goods manufacturing accounted for 8.3% of Iowa’s output, nearly half of this contribution came from food, beverage and tobacco manufacturing. At 4% of state GDP, this was more than any other state except North Carolina. Despite low crop yields due to drought, Iowa was the leading producer of both corn and soybeans in 2012, according to the USDA.
7. Ohio
Ohio is a major manufacturer of a range of products. In 2011, it was one of the largest manufacturers of both primary and fabricated metals products, which together accounted for about 3% of the state’s output that year. The state was also the nation’s leader in producing plastics and rubber products, which accounted for more than $5.3 billion in output in 2011, or 1.1% of Ohio’s total output. Likely contributing to Ohio’s high output of manufactured rubber products, the state is home to Goodyear Tire & Rubber, a Fortune 500 company. At the end of 2012, Ohio was one of the top states for manufacturing employment, with roughly 658,000 jobs, trailing only far-larger California and Texas.
6. Kentucky
In 2011, Kentucky manufactured nearly $4 billion worth of motor vehicles, bodies, trailers and parts, the fifth-largest output in the nation. As of 2011, this manufacturing industry was worth 2.4% of Kentucky’s GDP, the third-largest percentage in the country. In 2011, electrical equipment, appliance, and component manufacturing had an output of only about $1.3 billion the 15th highest, but this may be expected to improve. Louisville is home to the GE Appliance Park, where the company has recently built two new assembly lines. The assembly lines, which cost more than $100 million, will produce high-efficiency washing machines and will create about 200 jobs, in addition to the thousands of jobs GE has created in the region over the past few years with its opening of several other factories.
5. Wisconsin
Wisconsin led the nation in paper manufacturing in 2011, with nearly $4 billion in output, which was 1.5% of the state’s total GDP and the third-greatest portion of total output. In 2012, Wisconsin was a large producer of durable goods, which accounted for 11.3% of its GDP, up from 10.7% the previous year, holding on to its fourth place position. In spite of Wisconsin’s high output in the paper industry, the state’s Chamber of Commerce has expressed concerns regarding the implementation of government regulations that may hurt current and future job prospects. Officials in Wisconsin claim the new Boiler MACT regulations, for example, will have a negative economic impact on pulp and paper industry jobs in the state.
4. North Carolina
Last year, North Carolina was the fourth-largest manufacturing economy in the country, losing the third-place position to Illinois. In 2011, of the state’s $84 billion manufacturing output, nearly $24 billion alone came from chemical manufacturing.Roughly 5.5% of the state’s GDP arose from chemical manufacturing alone. Another close to $20 billion came from the food, beverage, and tobacco product industry, more than any state but California. North Carolina’s tobacco economy is one of the second-largest in the country, and R.J. Reynolds, the second-largest tobacco company by sales in the U.S., is based in the state.
3. Louisiana
None of the nation’s manufacturing leaders produced less output from durable goods manufacturing than Louisiana, at $7.7 billion. Similarly, in 2011, the state produced just $7.1 billion in manufactured durable goods. Louisiana was among the nation’s largest manufacturers of chemicals, as well as petroleum and coal products, that year, helping the state’s totals. As of 2011, more than 10% of the state’s GDP came from petroleum and coal manufacturing, by far the highest percentage in the nation. The state remains one of the nation’s leading oil refiners. According to the U.S. Energy Information Administration, “the Louisiana Offshore Oil Port (LOOP) is the only port in the U.S. capable of offloading deep draft tankers.”
2. Oregon
Oregon manufactured nearly $38 billion worth of computer and electronic products in 2011, up from the year before, and second in the nation. That output is behind California, but its percentage of total GDP was 20%, surpassing by far second place Idaho, where computer and electronic manufacturing accounts for only about 5.8% of total output as of 2011. Recent outside investments in the state reinforce the tech-heavy industries in Oregon. In the first half of this year, for example, AT&T invested nearly $80 million in its Oregon network to improve performance for Oregon residents, according to the Portland Business Journal.
1. Indiana
Indiana has added manufacturing jobs at one of the fastest rates in the nation over the past several years, with year-over-year growth in manufacturing at or above 3.7% at the end of each of the past three years. Some of this growth came from companies like Honda expanding their factories and adding thousands of jobs, which made headlines in 2011. Developments like these are critical for the economy of the state, which depends on manufacturing more than anywhere else in the nation. In 2012, Indiana had just the nation’s 16th largest economy, while its output from manufacturing exceeded all but a handful of states. In 2010 and 2011, Indiana was one of the leading states in total output from both motor vehicle-related and chemicals manufacturing. Manufacturing of chemical products accounted for 7% of the state’s GDP in 2011, at least partly due to the presence of pharmaceutical giant Eli Lilly, which has vendors throughout the state.
24/7 Wall St.com is a financial news and commentary website. Its content is produced independently of USA TODAY.
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The American Dream Is Built on Fair Wages
in Uncategorized/by MAM TeamWe built our business on wages above the minimum. For this small extra investment, we get long-term employees who are devoted to our company – employees whose ongoing relationships with customers have been vital to our success.
Good wages have been good business strategy in an industry that has seen more than its share of creative destruction. The last 20 years have been tough on the music business. In St. Louis, two-thirds of the record stores have closed since 2000. We’ve outlasted a 20-store local chain and numerous national and regional chains. Most of those companies paid their employees minimum wage or barely above. My creative, dedicated and better-paid employees won this life or death struggle for us.
Higher wages made us more competitive – not less. While my competition dealt with the costly results of constant employee turnover, constant training costs and the unsatisfied customers that turnover breeds, my employees added great value to my business.
Unfortunately, too many American companies have been driving down wages to poverty levels that are too low for workers to live on and too low to sustain the consumer demand that businesses need to survive and thrive. In a race to the bottom, the winner ends up at the bottom. The American Dream needs a minimum wage increase.
The current federal minimum wage of $7.25 an hour, just $15,080 for full-time work, is too low a floor under our workforce, our customers and our economy. Back in 1979, when we started our company, the minimum wage was $2.90 – that would be $9.33 in today’s dollars. Even back then, it had eroded from the 1968 minimum wage level, which would be $10.74 adjusted for inflation.
We never would have believed that 34 years later, the buying power of minimum wage workers – and millions of workers above minimum wage – would actually be lower than when we started our company. That’s terrible for small business, terrible for our economy and terrible for our country.
There’s a proposal in Congress to gradually raise the minimum wage to $10.10 over three years and then adjust it annually for inflation in the years following. It’s a reasonable proposal that moves us closer to where we would have been if the minimum wage had kept up with inflation since the 1960s.
Small business owners know that higher minimum wages put spendable dollars into the hands of our customers. Minimum wage earners, who live from paycheck to paycheck, spend increases right away. Putting a few hundred dollars more a month in their pockets would be a needed boon to business and the economy.
Companies that pay poverty wages count on other businesses and taxpayers to subsidize them. You may think of food stamps, housing assistance and child care subsidies as helping the poor, and they do, and it’s essential that we maintain them. But when wages are so low that full-time workers need the public safety net to put food on the table or keep a roof overhead, we are actually subsidizing the unrealistically low wages paid mostly by big highly profitable corporations. This perverts capitalism and is lousy public policy.
For example, in my state, according to the MO Healthnet Employer Report, in the first quarter of 2012 (latest data available) Walmart alone cost $6,247,032 in Medicaid costs. McDonalds cost $4,050,360 and Casey’s General Stores cost $1,473,094. Subway, Pizza Hut, Taco Bell and Sonic Restaurants cost more than $1 million dollars each. Together, these seven low-wage companies cost more than $16 million in Missouri taxpayer money in just three months.
A crucial part of my job as CEO is prediction and planning. Part of that is predicting costs and demand. Indexing the minimum wage to inflation, as Missouri and nine other states do now, would make it easier for businesses to predict and plan for labor costs. It would mean the buying power of our customers would not be hollowed out by an eroded wage floor.
Indexing is good for our tax base and our school systems, which are so dependent on property taxes. The most local small business is landlord. Most rental units are locally owned. The vast majority of low-wage workers are renters. A decent minimum wage helps maintain healthy property values and tax revenues.
The evidence that trickle-down economics doesn’t work is all around us. People are falling out of the middle class instead of rising into it. Putting money in the hands of people who desperately need it to buy goods and services will give us a trickle-up effect. Raising the minimum wage is a really efficient way to circulate money in the economy from the bottom up where it can have the most impact in alleviating hardship and boosting demand at businesses.
The American Dream isn’t functioning when the pie gets bigger, but the share for working people shrinks. Decent wages at the lowest rungs lets workers make ends meet while giving them a taste of the rewards of work.
Let’s keep the American Dream in sight for those farthest from experiencing its sweetest fruits.
Lew Prince is co-owner and CEO of Vintage Vinyl in St. Louis, Mo., and member of Business for a Fair Minimum Wage.
Written by: Lewis Prince