Business Operations

Flashback to 2015: “Hamilton” debuted on Broadway, millennials surpassed baby boomers as the largest U.S. generation and the term “Industry 4.0” was gaining traction in manufacturing circles. It was also when the Manufacturing Leadership Council created a conceptual framework called “Manufacturing 4.0.”

So what is the difference between Industry 4.0 and Manufacturing 4.0? While the terms may not sound all that distinct from each other, Manufacturing 4.0 represents the MLC’s commitment to a far-sighted, holistic approach to manufacturing’s tech-enabled metamorphosis—one that has served it well in over the past eight years.

The background: The 4.0 movement started in Germany in 2011 when the German ministries for education, research, economic affairs and energy developed a strategic initiative that would push forward the digital transformation of industrial manufacturing.

• They named this initiative Industrie 4.0. It featured an action plan that combined policy initiatives, public–private funding, strategies for technology implementation and the identification of business drivers and barriers.

The difference: For the MLC and its members, Manufacturing 4.0 is made up of transformations in three different arenas: technology, organization and leadership.

• Contrast this with Industry 4.0, which covers only technology topics—specifically nine pillars of technological innovation, which include autonomous robots, big data, cloud computing, IoT, cybersecurity, systems integration, simulation, AR/VR and additive manufacturing.
• “MLC, of course, covers all of these technologies, but, importantly, adds the dimensions of organizational and leadership change as part of its perspective on manufacturing’s digital transformation,” says David R. Brousell, the MLC’s founder, vice president and executive director.

MLC in action: While the MLC does provide member resources that focus on specific technologies and their uses in manufacturing operations, it also covers topics such as how leaders can prepare their workforce for digital transformation, how organizations should be structured to make business decisions based on manufacturing data and how leaders can ensure they set their teams up for digital success.

• Additionally, the annual Manufacturing Leadership Awards recognize not only high-performing digital manufacturing projects but also outstanding individuals who demonstrate both technological understanding and strong personal leadership.

M4.0’s continued evolution: Today, the MLC continues to use Manufacturing 4.0 as the overarching framework for its member companies’ activities.

• Its influence is apparent in the MLC’s annual Critical Issues Agenda, a member-created list of key business drivers and enablers of digital manufacturing.
• The agenda covers technological advances like smart factories and data analytics, alongside the organizational ecosystems that put such advances into operation—from the leaders who direct them to the cultures that make them succeed.

The Future of M4.0: As the MLC gets ready to set its 2023–2024 Critical Issues Agenda, it will continue to take a holistic approach to the technological changes sweeping the industry by recognizing the importance of people in making those transformations happen.

Go deeper: You can learn more about Manufacturing 4.0 by downloading the MLC’s white paper, Manufacturing in 2030: The Next Phase of Digital Evolution; reading a recent report, The Future of Industrial AI in Manufacturing; or attending its Aug. 30 virtual Executive Interview, Shifting from Disruption to Growth.

With one of its key components—printed circuit boards—in short supply, Schweitzer Engineering Laboratories chose the proactive solution: it would begin making them itself. Now that its new factory is up and running, SEL is receiving unexpectedly keen interest from other companies, and considering ramping up production for outside sales.

Fixing a supply chain problem: The Pullman, Washington–based electric power system protection solution manufacturer began manufacturing PCBs at its new $100 million, 162,000-square-foot factory in Moscow, Idaho, back in March.

• “Printed circuit boards take electronic components and interconnect them so they can interact with each other,” SEL CEO David Whitehead said. “Without them, you can forget about AI, forget about your cell phones—they’re in just about any electronic device.”
• The Moscow factory is running at about 25% capacity. When it reaches full production later this year, it will be one of the top PCB manufacturers in the U.S., according to Whitehead.

Domestic and accessible: The PCB “is a critical component that goes into our devices,” Whitehead continued. “Now, instead of sourcing PCBs from around the U.S., we can produce them ourselves.”

• The Moscow facility—which only produces the circuit boards for SEL—has increased the company’s supply chain resiliency and sped up its output, Whitehead told us. “Now, in a handful of days after designing a printed circuit board for a product, our engineers are in their labs testing it. It’s a big win for us.”
• Nearly half of manufacturers in the U.S.—44.9%—cite supply chain hurdles as one of their top business challenges, according to the NAM’s Q2 2023 Manufacturers’ Outlook Survey.

Self-funded and viable: SEL funded 100% of the facility’s construction costs, and it will have paid for itself in two to three years, Whitehead said.

• “I think that’s really a big deal for not only taxpayers but the local community generally,” he said. State and local governments “can take the funds [they didn’t use on us] and invest” elsewhere.

A good neighbor: The Moscow plant—which features a fume scrubber system that exceeds Environmental Protection Agency standards for volatile organic compounds—also uses a “zero-liquid discharge water treatment system that recycles and reuses all the water used to manufacture the printed circuit boards,” Whitehead said.

• A comparable factory would use about 90,000 gallons of water each day of production, while SEL uses about 500 to 600 gallons—the equivalent of only a few households’ daily usage, according to Whitehead. Most of that is for worker needs (drinking water and restrooms).
• The company also reclaims and reuses metals, such as tin, silver and gold, that are used in the production process.
• “We are very environmentally conscious about how we produce these boards,” Whitehead said. 

What’s next? Since the facility began production, SEL has gotten numerous inquiries from other manufacturers interested in buying the PCBs. The company is likely to oblige them soon.

• “This is our next opportunity,” Whitehead said of producing boards for other manufacturers. “We love being vertically integrated, building as much as we can close to where we’re going to use the products. … As we get better at it for our own consumption, I can see us expanding it.”

Bluffton, S.C. – Today, the Wisconsin Manufacturers & Commerce was honored with the 2023 Leadership Award from the Conference of State Manufacturers Associations, whose members also serve as the National Association of Manufacturers’ official state partners and drive manufacturers’ priorities on state issues, mobilize local communities and help move federal policy from the ground up in all 50 states and Puerto Rico. WMC was recognized for their work to attract and maintain the manufacturing workforce.

“We congratulate Kurt Bauer and the entire team at WMC for their incredible work this year to not only educate the next generation of manufacturing workers in Wisconsin, but also engage the business community at large to help spur investment in the state,” said Utah Manufacturers Association President and CEO, NAM board member and COSMA Chair Todd Bingham. “Their work shows the impact that we can all have to help make the United States the top destination in the world for manufacturing investment.”

The Leadership Award recognizes the achievement of a state manufacturing association that has developed impactful initiatives to support manufacturers and strengthen manufacturing in their state. Some of the initiatives that set WMC apart were their Coolest Thing Made in Wisconsin and Business World, which teach young people about entrepreneurship and free enterprise and promote manufacturing job opportunities in the state. Additionally, as part of WMC’s official mission to make Wisconsin the best place for business, the Future Wisconsin Project brings together diverse interest groups to identify and address the state’s long-term economic challenges and opportunities, including solutions to workforce challenges.

“The work of WMC to inspire the workforce of the future is a prime example of what’s needed to address the critical challenges that our sector faces today,” said NAM President and CEO Jay Timmons. “Under Kurt Bauer’s leadership, the WMC is advancing the solutions needed to make manufacturers more competitive and ensure manufacturing remains a key driver of Wisconsin’s economy.

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

For Ketchie President and Owner Courtney Silver, retention all starts with culture. “I’m really happy to be here” is a phrase she hears often on her shop floor—and it tells her that the work culture at her company is in good shape.

• “A culture of empowerment that’s built on trust really fuels our team I think,” said Silver, who is the chair of the NAM’s Small and Medium Manufacturers Group. “They find so much dignity and purpose in fulfilling our mission here at Ketchie.”

Maintaining a high-performing, motivated and engaged workforce is a top priority for the third-generation precision machine shop in Concord, North Carolina, and Silver has implemented a number of strategies to keep it that way.

Team recognition: Every Wednesday, during Ketchie’s shift meeting, employees have the opportunity to recognize their team members for any achievement, big or small.

• “Recognition can be about anything,” says Silver. “It can be ‘Fred over there was able to cut five minutes of cycle time off this particular part because he changed the process’ or ‘Mary saved us money by switching out some tooling.’ We then post the feedback in the break room and email it out to the entire organization.”

• “There are so many things that can go wrong in manufacturing just trying to get a part out the door, and this is an opportunity to think about all the amazing things we’re doing,” she explained.

Silver also posts worker productivity charts every week. If workers meet their productivity goals and their indirect time goals, they get performance points, which are redeemable for gift cards.

• “I think people want to know if they’re on a winning team,” Silver said. “If you’re winning, it feels good. We’re all on the bus going in the same direction.”

Motivator Award: Each year, employees can also nominate a peer for the “Motivator Award,” which goes to the employee who best exemplifies Ketchie’s core values: to do the right thing, be agile and embrace continuous improvement.

• To honor the winner, Silver puts together a tribute video of team members sharing their thoughts about the employee and hosts a company brunch in celebration (to which the employee’s family is invited).

• “The winner also receives their own special parking spot, an extra day of vacation and a $1,000 gift certificate to the Marriott to take vacation with their family,” says Silver.

• “The team member that won the award last year had tears in his eyes, so I know that it’s been really impactful,” she continued.

Community service: Ketchie’s employees are passionate about giving back to the community. Through service projects, Ketchie supports the Boys & Girls Clubs of America as well as Cooperative Christian Ministry, which offers programs that relieve hunger and food insecurity and address homelessness and housing costs.

Opportunity Knocks: Silver isn’t only working to retain and support current employees, but also to train and mold the young people who will be tomorrow’s machinists.

• This year, Silver started an internship program for high school students named Opportunity Knocks. It allows students to shadow experienced machinists in factory environments while earning school credit.

• The interns go through a curriculum created by Edgerton Gear, Inc., called Craftsman with Character, a 16-week course that helps students explore the role of character in a professional trades environment. Silver said the course, which includes leadership and manufacturing-focused exercises, is taught at Ketchie four days a week in two-hour sessions. Three days of the week are job shadowing machinists on the shop floor, and one day is in a classroom setting at the shop discussing character traits and soft skills. The conversations lean on discovering what’s important in life and what might make them happy.

• “They absolutely love these high schoolers,” said Silver about the two mentors at Ketchie, who each have more than 30 years’ experience. “It gives them an opportunity to share their entire work career: what they’re doing, experiences learned along the way. It’s been neat to see.”

Investing in technology: Silver knows her team wants to work for a company that’s growing and investing in technology. She recently purchased a machine-tending collaborative robot, which takes over machinists’ “least favorite” part of the job—changing parts while the machines run.

• “I interviewed somebody recently who said to me in the interview, ‘It’s really good to see that you want to grow and that you’re making these big investments,’” said Silver. “You’re buying new technology that excites them. They want to be part of that mission and growth.”

The last word: Silver shared some advice for companies that might be struggling with workforce retention.

• “Use employee surveys, focus groups or roundtable discussions to see what you need to do or should do. Everyone wants to be heard. It’s important to listen.”

The NAM’s workforce development and education affiliate, the Manufacturing Institute, has many initiatives to help employers retain and develop their teams. For a deeper dive, check out this study by the MI on improving retention and employee engagement. The MI will also explore retention challenges and solutions at its Workforce Summit in Atlanta on Oct. 16–18. Click here for more information.

Washington, D.C. – Today, the National Association of Manufacturers and Make UK hosted a meeting at NAM headquarters where they formalized manufacturers’ commitment to supporting close economic ties between the United States and United Kingdom. Make UK CEO Stephen Phipson and NAM President and CEO Jay Timmons signed an updated memorandum of understanding, which will serve as a roadmap to the cooperation between the two organizations and outlines the key goals and objectives for the partnership.

“The NAM and Make UK have such a strong, special relationship, just as the U.S. and the UK do, and we must continue to deepen that partnership and the commercial and economic ties between our countries,” said Timmons. “Cooperation between American and British companies not only makes our economies stronger, but also strengthens the transatlantic strategic alliances to support the rule of law, freedom and opportunity from those who threaten our shared values. Especially with Russia’s continued assault on Ukraine, it is critical that we unleash the power of commerce to preserve, protect and expand democracy.”

The MOU calls for Make UK and the NAM to work together to provide opportunities for their members to strengthen manufacturing through a number of avenues, including exploring potential trade delegations, trade fairs and business networks; facilitating visits and economic delegations between representatives of the two organizations for promoting trade, investment and commercial exchanges among member companies and organizations; and working together on joint meetings, conferences, seminars, reports, letters and mutually agreed advocacy on trade and investment-related issues.

“Make UK is delighted to have further strengthened our partnership agreement with our American counterpart, the National Association of Manufacturers, as we focus increasingly on boosting cross-Atlantic trade,” said Phipson. “In recent months, we have agreed to a process of even broader sharing of market intelligence, data and policy work, facilitating visits for economic delegations to visit on both sides of the Atlantic to unlock new trading opportunities.

“We will continue to work ever more closely as we look to cement commercial exchanges and opportunities for shared promotion as we build on the ties that have connected our two nations for generations. Relations with the U.S. are vital, and its market is the second-most important for UK goods. In a post-Brexit world, it is likely to assume ever greater importance as part of our efforts to boost global trade.”

Click here to view the full text of the MOU.

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

The Manufacturing Leadership Council—the NAM’s digital transformation division—has announced the finalists for the 2023 Manufacturing Leadership Awards, the industry’s premier awards program for achievements in digital manufacturing. You can read the complete list of finalists here.

The ceremony: The finalists will be honored at the Manufacturing Leadership Awards Gala in Marco Island, Florida, on June 28.

• Also announced at the gala will be winners for all project and individual categories, winners of the Manufacturing in 2030 Award, the Manufacturing Leader of the Year, the Small/Medium Enterprise Manufacturer of the Year and the Large Enterprise Manufacturer of the Year.

Rethink: Certain award winners will also present at Rethink, the industry’s leading event for exploring manufacturing’s digital era, which will also take place in Marco Island on June 26–28.

The categories: The awards are divided into nine project categories to recognize company achievements:

• Artificial Intelligence and Machine Learning
• Collaborative Ecosystems
• Digital Network Connectivity
• Digital Supply Chains
• Engineering and Production Technology
• Enterprise Technology Integration
• Operational Excellence
• Sustainability and the Circular Economy
• Transformational Business Cultures

Additionally, individual leaders are recognized in the Digital Transformation Leadership and Next-Generation Leadership categories.

The last word: “As more manufacturers extend digital’s reach onto the factory floor and throughout their operations, we are witnessing transformative performance improvements that would have been unthinkable just a few short years ago—and that are improving life for employees and customers alike,” said MLC Co-Founder, Vice President and Executive Director David R. Brousell.

Washington, D.C. – The National Association of Manufacturers has announced Brandon Farris as its new vice president of energy and resources policy.

“Brandon joins the NAM at a pivotal time in our country and for our industry,” said NAM President and CEO Jay Timmons. “Manufacturers across the United States face regulatory challenges that affect their ability to do what they do best: transform and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy. Commonsense regulatory and permitting reform, along with energy security, are needed now more than ever. Brandon’s experience and expertise will help manufacturers accomplish these critical goals.”

Before joining the NAM, Farris was the head of federal government relations for The Chemours Company, where he played an integral role in securing passage of the AIM Act, designed to phase out refrigerants that contribute to climate change. He worked closely with the NAM to help secure bipartisan ratification of the Kigali Amendment to the Montreal Protocol during the 117th Congress. Along with these and other major legislative accomplishments, he was honored as a 2022 top lobbyist by the National Institute for Lobbying & Ethics.

Previously, Farris served as assistant general counsel for Arkema as well as senior counsel for government relations for the Saudi Basic Industries Corporation. After serving in the Marine Corps Reserve, he began his career in Washington as a Bryce Harlow Foundation Fellow at the George Washington University School of Law while working on the U.S. House Agriculture Committee.

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

London, U.K. – As the National Association of Manufacturers’ Competing to Win Tour begins its second week of bolstering strategic alliances across Europe, the association released findings from its Q1 2023 Manufacturers’ Outlook Survey. The survey found that expanding trading opportunities with Europe is a top priority for manufacturers, with more than 77% of respondents supporting negotiating new agreements with European nations.

“At a time when democracy and free enterprise are under attack from forces around the world, America can provide the leadership needed to defend our values, our institutions and our way of life,” said NAM President and CEO Jay Timmons. “By advancing an ambitious trade agreement agenda, we can ensure that the U.S.—and not competitors like China—writes the rules for the global economy and trading system. That has been the focus of our conversations with government, association and business leaders across Europe over the past week.”

The survey also continues to illustrate the need for Washington to enact policies that support the sector’s competitiveness as businesses face record job openings and increased production and input costs.

“With geopolitical turmoil and a banking crisis injecting further uncertainty into the economy, policymakers must act with urgency on key tax, trade, permitting and regulatory proposals if they want to help manufacturers in America fend off a recession,” said Timmons.

Background: Manufacturers have called on Congress and the White House to address key tax, trade, and permitting policies in recent months and have pressed lawmakers to work across the aisle to move legislation. The NAM conducted the survey from Feb. 21 to March 7, 2023.

Key Findings:

• Of companies that are engaged in international trade, nearly two-thirds of manufacturers said that Europe was either a somewhat or very important market for their company. With that in mind, 77.7% would support U.S. efforts to launch market-opening trade agreement negotiations with countries in Europe.
• Nearly three-quarters of respondents (74.9%) listed attracting and retaining a quality workforce as a primary business challenge, with increased raw material prices (60.1%) and supply chain challenges (55.8%) the next biggest impediments.
• More than 90% of respondents said that higher tax burdens on manufacturing income would make it difficult for their companies to expand their workforce, invest in new equipment or expand their facilities. Similarly, 93.9% suggest that increased regulatory burdens would weaken their ability to invest in their workers, equipment or facilities.
• More than 74% of respondents said that permitting reform—which would simplify and speed up the approval process for new projects—would be helpful to their manufacturing company, allowing them to hire more workers, expand their business or increase wages and benefits.
• More than 55% of respondents said that new proposed air standards from the Environmental Protection Agency would raise their costs of compliance, with roughly one-third suggesting that it would lead to increased permitting challenges and lessen investment and facility expansion plans.

Conducted by NAM Chief Economist Chad Moutray, the Manufacturers’ Outlook Survey has surveyed the association’s membership of 14,000 manufacturers of all sizes on a quarterly basis for the past 25 years to gain insight into their economic outlook, hiring and investment decisions and business concerns.

The NAM releases these results to the public each quarter. Further information on the survey is available here.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

The NAM’s Competing to Win Tour in Europe continued with stops at Merck KGaA in Darmstadt and VDMA, the association of Germany’s engineering industry, in Frankfurt. The visit to Merck KGaA provided a firsthand look at the leadership, culture and operations that are producing about 300,000 products and that played an instrumental role in saving the world from the pandemic.

Living its values: Merck KGaA and its science and technology entities have 60,000 employees around the globe, with approximately 26,000 employees in 66 countries outside of Germany, including the U.S. Its products appear not only in healthcare settings, but in grocery stores where they ensure food and beverages are safe and in transportation where they monitor the air we breathe.

• Matthias Heinzel, CEO of the Merck KGaA Life Science business, and Thaddeus Burns, head of government and public affairs, welcomed the tour and provided insights into the company’s operations.
• The tour of the Merck Innovation Center showcased the company’s state-of-the-art design and technology, while the visit to the growing Membrane operations gave the tour group an opportunity to explore the latest developments.
• A brief stop in the company’s museum provided a historical perspective on the origins of the company, which was founded by the Merck family and began with a small pharmacy named Angel that is still in business today.

VDMA: The tour group also visited VDMA, the association of Germany’s engineering industry, which represents more than 3,300 companies in the sector and focuses on the advancement of trade opportunities.

The last word: The visit to Merck KGaA in Darmstadt underscored the importance of interconnectedness between the U.S. and Europe. It highlighted the vital role alliances play in strengthening enterprises that are essential to our democratic way of life and its protection worldwide.

• “Merck KGaA is a company that lives its values and is a strong champion of free enterprise, competitiveness, individual liberty and equal opportunity, putting its aspirations into action,” said NAM President and CEO Jay Timmons.

Boca Raton, FL—The National Association of Manufacturers today honored NAM board member and Snap-on Chairman and CEO Nick Pinchuk with the Manufacturing Icon Award during the NAM’s spring board meeting in Boca Raton, Florida. The award recognizes leaders who inspire Americans to promote, perpetuate and preserve manufacturing in America.

“Across the industry and across the business community, executives and employees alike look up to Nick Pinchuk. His storied career is a source of inspiration, and he is a wealth of knowledge, a wise counselor and a tireless advocate for the rewarding careers found in modern manufacturing. He has been a tremendous supporter of the NAM and the Manufacturing Institute’s Creators Wanted campaign to build the manufacturing workforce of today and tomorrow, and his policy advocacy on behalf of the industry is best-in-class,” said NAM President and CEO Jay Timmons.

“His presence on television and in the public eye as a principled manufacturing leader, as well as his unwavering service to the NAM and to our industry, makes Nick a true model for business leaders in America. In whatever he does, he demonstrates an unshakeable commitment to the values that have made our country exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity. We’re honored to present this award to Nick in recognition of his outstanding leadership.”

Pinchuk serves on the NAM Executive Committee as the NAM tax, domestic economic and regulatory reform policy vice chair and on the board of directors of the Manufacturing Institute, the workforce development and education partner of the NAM.

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.