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"Making" Our Future

As states work to improve their economic outlook, many are looking for opportunities to invigorate their manufacturing sectors.  While there is no scripted, fail-safe path for states to design programs and create incentives to spur innovation and manufacturing growth, many are working to provide an infrastructure and environment in which manufacturers can grow and prosper.

Although not a panacea of fix-alls for states, the recently released report entitled, “Making” Our Future from the National Governors Association does provide a synopsis of what some states are doing to support manufacturing.  The report is a culmination of a year-long strategic planning process that states engaged as a result of their participation in an NGA-convened Manufacturing Policy Academy. The eight states of California, Colorado, Connecticut, Illinois, Kansas, Massachusetts, New York, and Pennsylvania participated in this venture, which was a joint effort of the National Governors Association with the U.S. Department of Commerce’s National Institute for Standards and Technology Manufacturing Extension Partnership and Economic Development Administration, which provided funding and thought leadership on the issues.

According to the report’s executive summary,

"The policy agenda for U.S. manufacturing is changing. Five years ago the debate was mostly about how to rescue and retain existing footholds in manufacturing, but lately the debate is increasingly about how to set the stage to lead the world in new technologies and innovations that are changing the face of manufacturing. That shift in direction was underscored this year when eight states prepared new strategies not through the lens of “let’s save manufacturing” but through the lens of ‘let’s lead in what lies ahead,’ including robotics, nanotechnology, and advanced materials.”

The report found that:

  • The eight participant states represent 30 percent of total U.S. manufacturing Gross Domestic Product (GDP), one-third of U.S manufacturing jobs, and more than 25 percent of U.S. exports of manufactured goods;
  • Each of the eight states arrived at its agenda independently, but their agendas are remarkably similar in priority and policy;
  • As an eight-state cohort working on similar priorities, they can scale up efforts and generate effects that are greater than what can be done by a single state working alone.

Results of the Academy include new programs, such as a voucher program in Connecticut, redesigned or new organizations to support manufacturing in the state, new legislation, and new funding allocations for priority manufacturing initiatives. The report also features a series of best practices for others interested in encouraging growth in manufacturing through innovation, entrepreneurship, and investment. Through steps like these, state governments can play a proactive role in fostering manufacturing growth.

The report found that state-by-state approaches to addressing manufacturing issues differ, which is to be expected.  Every state has its own ideas and plans, but the academy’s outcomes prove states can work together and learn from one another to encourage growth.

About the author

Megean Blum

Megean Blum is a business specialist working with the Program Evaluation and Economic Research group at NIST MEP.

 

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Comments

The manufacturing industry is continual evolving due to globalization, technological changes, desire for more profitability, and efficiency in competition. These changes have created the need to review how manufacturing companies manage their employees. The traditional approach was concerned with only three aspects with linear relationships: Acquire, Engage, and Retain. The current generation of workers and the evolving manufacturing industry trend has made the tradition approach of talent management become less effective. For example, many manufacturing companies have downsized their workforce through voluntary exits, but at the same time they continue the difficult task of hiring very skilled labor. As technology improves and the manufacturing process becomes more complex, more and more highly skill workers are needed. Since they are in high demand, the good ones will tend to possess certain qualifications that will enable them excel in their career. These workers are usually well trained, highly skilled, capable of complex trouble shooting, flexible and able to solving problems under minimal supervision. After the competitive task of acquiring these people is complete, many manufacturing companies are faced with the dilemma of how to manage them. Many graduates who possess the above qualities belong to Generation Y. These are people born in early 1980s to early 1990s. They tend to be technologically savvy, versatile and would work in a company for only a few years before moving on to another. This is due to their life experiences and aspirations in life e.g. rise to senior level within a short time. This is unlike the traditional workers who are mostly content with their positions and can work for many years expecting a promotion. Manufacturing companies are seeing the need to shift their style of talent management. One of the new approaches to talent management that should embraced to ensure their survival in the highly competitive world is the “holistic model”. This model encompasses three major interlocked aspects in addition to the previous three. These are Develop, Deploy and Connect with a strong emphasis on capability, commitment, performance, and alignment. The aspect of connect is important because the Generation Y employees want to work beyond the functional boundaries, they need to be involved in initiatives such as Total Production Maintenance, lean manufacturing , six sigma, supply chain optimization , global sourcing and complex product launches. These initiatives may go far outside the scope of the job description they were hired to do initially. To attract and retain the required talent, the work schedule need to be flexible, concepts such as telecommuting should be embraced so that some functions can be done at home, and the work environment needs to be tech- savvy. In conclusion, as the manufacturing industries aim for global expansion, profitability growth, and productivity improvement; the significance of talent management will continue to increase in future because of the scarcity of the talents and aggressive competition among the manufacturing industries globally and within your tightening competitive sphere. Have you noticed any generational differences in employees that you’ve found interesting or enlightening? Anjela Mangrum, the co-owner of Mangrum Career Solutions, partners with manufacturing businesses to assist in their executive placement, onboarding, retention and outplacement needs. She also works to empower individual job seekers by helping them gain a competitive edge in their job search. manufacturing recruiter manufacturing search firm

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