Innovation and Technology

This new research from MI and EY on adaptive skills in the manufacturing workplace. What are adaptive skills? Simply put, they are skills or traits that enable individuals to transform their abilities as their demands and environment change. There is a need for broader and evolving skillsets in the manufacturing sector and for building a workforce motivated by opportunities for growth. Doing this will help manufacturers transition to workplaces to a point where forward-thinking, engaging, and digitally enabled work is the norm.

The Manufacturing Institute, in partnership with Rockwell Automation and PTC, released a forward-looking study on where the manufacturing sector will be headed over the next 5 to 10 years and how those changes will impact the necessary skills that will be required of employees. More advanced processes and innovations will necessitate enhanced data and technological skills. As a result, manufacturers will need to support or provide new elements of continuous learning for existing employees, and the skill sets of new employees will need to become increasingly more sophisticated. At the same time, soft skills will always be important. This need for advanced skills sets for modern manufacturers comes against a backdrop of a tight labor market, complicating the search and heightening the already fierce competition for talent.

Even amid so much economic uncertainty, Cemen Tech is on track for a year of unprecedented growth. Leaders of the company, the world’s largest manufacturer of volumetric technology, attribute a good deal of its success to its loyal workforce.

Allegiance creator: Just what contributes to that worker loyalty? The answer may well be Cemen Tech’s unusual generosity.

• “We considered a number of new and different ways to continue to attract and retain good people,” Cemen Tech President and CEO Connor Deering said. “In September 2021, we made the decision to cover 100% of employee health insurance costs, the net effect of which is essentially our folks taking home more of the money they earn. That has really helped with retention.”
• The Indianola, Iowa–based company also raised wages across the board and began offering employees season tickets for local sports teams. 

A new approach: Full health insurance coverage made a difference when it came to attracting and keeping workers, but the volumetric concrete mixer manufacturer was still hitting another roadblock when it came to employment: finding people with the right qualifications. So, it set out to solve the problem in house.

• As part of a planned facility expansion, the company is setting aside space for the new “Cemen Tech University,” an innovative answer to the question of how to develop employees with highly desired, specialized skills. Classes are tentatively set to start in January 2023.
• The company is also working with area high schools and technical schools to forge partnerships in which students work for Cemen Tech part time, while still pursuing their diplomas or degrees.
• “This way, we train applicants for immediate success on the job, helping to ensure a strong fit between the employee and the company from the start,” Deering said. “It also gives us an opportunity to teach new hires about our organizational culture. … I believe [our education efforts] will help support an educated team member who’s connected to our culture, resulting in a happier, better and more long-term employee.” 

More incentives: Last March, Cemen Tech found a way to boost shift-worker attendance with a points-based rewards system.

• “We implemented an attendance bonus—if an employee stays within a certain number of points [for coming to work], they can earn an additional $90 a week,” said Cemen Tech Director of Human Resources Emily Lyons. “We have seen that help in terms of attracting and retaining employees and further incentivizing employees to achieve consistent attendance.”
• The company has also increased the referral bonus given to existing employees who bring in new hires, Lyons said.

Advice: Manufacturers looking to see similar growth to Cemen Tech, which is set to expand 65% this year, should consider implementing some of the firm’s ideas (if financially feasible). But companies should be prepared to incur some financial cost along the way.

• “Our growth has helped offset the profitability loss [from the increased benefits], but the reality is that our business is people,” Deering said. “If we don’t have people—good people—we’re not going anywhere. So, the fact that we’re little less profitable at the moment is OK, as long as we can continue to grow.”

While participants were having fun at this week’s Creators Wanted stop in Decatur, Illinois, the nationwide tour and its mobile experience were doing something, too: moving the needle on people’s perceptions of modern manufacturing.

What went on: Over the course of three days, more than 800 students from 13 area middle schools, high schools and community colleges poured into Richland Community College to learn about manufacturing careers. Also present were many educators and parents.

• Attendees “raced to the future” in the Creators Wanted mobile experience, solving various manufacturing-related challenges as they wound through the escape room.
• They heard panel talks from manufacturing leaders and team members and learned about some of the industry’s many perks, including great wages, flexible schedules, upward mobility, chances to earn and learn and more.
• Interactive activities, set up and run by manufacturers and the campaign’s recruiting partner, FactoryFix, were designed to garner interest—and display some of the real work done every day in modern manufacturing.
• This included virtual-reality paint and assembly training from Creators Wanted host sponsor Caterpillar, as well as a hazard-awareness simulator, a drink-making station and a laser-system exhibit from host sponsor ADM. Richland Community College took students on a tour through its state-of-the-art lab.

Generation inspired: Manufacturing leaders at ADM, Caterpillar and the Illinois Manufacturers’ Association, which together brought the tour to Decatur, got the chance to galvanize crowds.

• Said IMA President and CEO Mark Denzler: “Manufacturing makes the world a better place to live every day. Some of you are going to find the next cure for a disease. You’re going to build the next robot.”
• “For anyone who really is looking for a career that you can get into that is good-paying, that will provide you an opportunity to progress, consider manufacturing,” Caterpillar Group President of Resource Industries (and NAM Executive Committee member) Denise Johnson told the crowd.
• Following the event, students were indeed inspired. “It kind of changed my mind on what I want to do in the future,” one student
• “It was amazing,” said another. “I’d think about doing this for a career.”

Shoring up the shortage: The lack of skilled workers has been a pain point for manufacturers for several years now—and it’s a problem Creators Wanted aims to fix.

• “Programs like Creators Wanted are crucial in narrowing the workforce shortage in manufacturing and also showcasing the many opportunities within the manufacturing industry,” said ADM Senior Vice President of Global Operations and NAM board member Veronica Braker. 

The impact: The tour stop made a splash in regional media, garnering overwhelmingly positive broadcast coverage and print mentions and placements (see here and here).

Meeting people where they are: “How do you get more young people interested in the field [of manufacturing]?” 25 News WEEK-TV anchor Erin Brown asked in a segment for the Peoria, Illinois, news station. “The answer could be more hands-on experiences with businesses like Caterpillar and ADM.”

Last week was a milestone for the Creators Wanted Tour—it marked the first time the nationwide initiative returned to a community and got to see how perceptions of manufacturing had changed since its first visit.

Welcome back: The Creators Wanted Tour, a joint venture of the NAM and its workforce development and education partner, The Manufacturing Institute, returned to host and champion sponsor Nephron Pharmaceuticals Corporation in West Columbia, South Carolina, in the 11th stop of the roadshow, which took place Oct. 4–7.

Happy MFG Day! On MFG Day, Oct. 7, Creators Wanted campaign co-chair Lou Kennedy, president, CEO and owner of Nephron Pharmaceuticals Corporation, and her team hosted the tour stop’s premier event at its new Nephron Nitrile Glove Factory. The 426,000-square-foot facility is scheduled to open next month and will produce nitrile gloves used in hospitals and sterile rooms globally.

• The protective-glove shortage in the U.S. during the pandemic inspired Kennedy to build the factory, which is set to produce 2 million gloves a year at full capacity.
• South Carolina legislators from both sides of the political aisle were on hand for a tour of the site. House Democratic Majority Whip James Clyburn and Republican Reps. Joe Wilson and Jeff Duncan joined hundreds of local students, educators, community leaders and manufacturers to view and learn more about the campaign and its resources.

Ready for the “boom”: “There is a manufacturing boom taking place all over the country,” Majority Whip Clyburn said. “We’ve got to focus on getting these young people prepared” for manufacturing careers.

• As Rep. Wilson said, “The opportunities for manufacturing just can’t be better.”
• “401(k), great salary—average wage of 75 to 80K—clean and beautiful working conditions and hard work with a lot of fun,” Kennedy said of jobs at Nephron, while extolling opportunities at modern manufacturers across the state and in nearby communities.
• Major Creators Wanted supporters Honda and Trane Technologies also have operations in the Palmetto State, and several other campaign sponsors, including Chroma Color Corporation, are within a short distance of West Columbia.

More career guidance: Students seeking tailored advice about their professional futures got it from representatives of FactoryFix, official recruiting partner of Creators Wanted, who were on hand to meet and coach job seekers.

• South Carolina Chamber of Commerce President and CEO Bob Morgan, whose organization is a tour partner, was on site with his team to give students information on manufacturing opportunities in South Carolina.
• On Friday, Creators Wanted sponsor Autos Drive America had an exhibit showing attendees the types of vehicles being manufactured in South Carolina.

Women in manufacturing: During a “fireside chat” panel on the tour stop, Kennedy was joined by Autos Drive America President and CEO Jennifer Safavian and MI President Carolyn Lee to discuss the importance of advancing more women in manufacturing.

• “Growing up here in the deep south 20, 30 years ago, we were supposed to be teachers or … nurses; we weren’t supposed to be pharma CEOs,” Kennedy said. “And so, my goal is to help every young lady be what she wants to be, even if it’s the nontraditional career path. … If you want to be a super-genius chemist, you can do that. If you want to be a super-genius engineer, you can do that.”
• Echoed Safavian, “I think the message [of Creators Wanted] is, ‘Don’t be afraid to ask questions. Don’t be afraid to try something. For women especially, this is a terrific opportunity. … A lot of people think manufacturing is dark, dirty, dangerous. It is not. … it is the complete opposite.”

Calling all veterans: Modern manufacturing is also a natural fit for those who have been in the military, speakers told the audience during another panel discussion.

• “I started at Nephron as a senior system analyst, and throughout my career everything that I was faced with at Nephron I’d already seen in the military,” said Air Force veteran Eric Jackson, now a senior IT security analyst at Nephron. “So, I think the [military] training … is what prepared me for this job.”

The reach: The South Columbia 2022 tour stop, made possible by additional support from Dow, Honda and Nephron Pharmaceuticals, was a record breaker.

• More than 700 students from 13 schools—most located in traditionally underrepresented communities—participated in the tour stop’s events. Last year, those numbers were 500 and seven, respectively.
• This year’s West Columbia email signups—people wishing to learn more about manufacturing careers—brought Creators Wanted’s total signups to more than 520,000.

The last word: The tour stop may have been best summarized by one young student who attended the events. “Creators Wanted,” she said, “is a helping hand.”

If you’re a student or job seeker looking for tailored career guidance combined with some hands-on, immersive fun, White House, Tennessee, was the place for you to be last week.

National impact: The Creators Wanted Tour, a joint project by the NAM and MI, made its 10th national tour stop at White House Heritage High School on Sept. 27–29.

• There, more than 700 students from four schools in Tennessee’s Robertson County went through the Creators Wanted mobile immersive experience, the award-winning, manufacturing-themed escape room–like activity in which participants work together to solve challenges in a “race to the future.”
• They also got the opportunity to chat with on-site sponsor representatives from Electrolux, Schneider Electric and FactoryFix about the many rewarding, well-paying career paths available in the industry.
• Local partners, including the Robertson County Economic Development Board, the Tennessee Chamber of Commerce & Industry and the Tennessee Manufacturers Association, were also on hand to answer jobs- and manufacturing-related questions.

Calling all creators: During the Tennessee stop’s premier event, speakers underscored the need for more skilled workers to fill the millions of open manufacturing jobs in the U.S.

• “Here in Tennessee, our industry has more jobs to fill than there are people looking for them,” Tennessee Chamber of Commerce & Industry and Tennessee Manufacturers Association President and CEO Bradley Jackson said.
• Speaking from firsthand experience about the many benefits of choosing one of those jobs was Tony Fraley, a plant manager for Electrolux. “I’m living proof of the great career opportunities in the field of advanced manufacturing,” said Fraley, who started at the company “running a process that coats dishwasher racks.”
• “I grew up about two hours from here in a small town very similar to White House,” he continued. “I always liked math and science. … I hope that stories like [mine] inspire the next generation of workers to consider a career that’s not only been good to me, but also offers a strong opportunity to earn a family-sustaining wage in a high-demand field.”

The numbers: The Tennessee stop resulted in more than 52,000 email signups from people interested in learning more about manufacturing careers.

An eye-opener: Students had a great time at last week’s events—and were pleasantly surprised to learn just how many interesting options manufacturing could offer them.

• “Creators Wanted made me excited about my future,” said one student.
• Added another, “Creators Wanted made me think more about my future in manufacturing.”

The last word: It’s past time for manufacturing careers to get their due as the gratifying professions they are, according to the Creators Wanted Spotlight panelists (and manufacturing company employees).

• Manufacturing “is definitely very rewarding [from a salary standpoint] but also the lifestyle that you get to have,” said Schneider Electric Manufacturing Engineer Zoie McFarland. “I get to go boating every weekend. I get to go hiking. I travel a lot. … Also, I was able to buy a house at 25. So, I think that is one major benefit—the lifestyle [manufacturing] gives you and the benefits that come from it.”

The NAM is constantly working to support and strengthen the men and women who make things in America. That mission is upheld by outstanding members of the NAM Board of Directors and their commitment to promoting the industry’s competitiveness on the global stage—a goal laid out in the NAM’s “Competing to Win” agenda.

Welcoming new faces: A number of new members have been elected to the board and will begin their two-year terms in January. They come from many sectors of the industry and companies both large and small, holding an array of leadership roles and boasting a wide range of experience. All of them are dedicated to ensuring that manufacturers in the U.S. have the tools they need to prosper.

The new members include the following:

• Edward Blair, president, Lutron Electronics Co., Inc.
• Sara Beth Burton, senior vice president, global supply chain, Hallmark Cards, Inc.
• Richard Cammarano, president and chief executive officer, Tech-Etch, Incorporated
• Karl Ehemann, vice president, global manufacturing and quality, Corning Incorporated
• Ed Elkins, executive vice president and chief marketing officer, Norfolk Southern Corporation
• Cynthia Farrer, senior vice president, global operations and integrated supply chain, Allegion plc
• Aimee Gregg, vice president and general manager, containerboard and recycling, International Paper
• John Hartner, founder, Digital Industrialist LLC
• Christopher Kastner, president and chief executive officer, Huntington Ingalls Industries
• Ram Krishnan, executive vice president and chief operating officer, Emerson
• Reece Kurtenbach, chief executive officer and president, Daktronics, Inc.
• Rose Lee, president and chief executive officer, Cornerstone Building Brands
• Thomas Long, co-chief executive officer, Energy Transfer LP
• Michael McGarry, chairman and chief executive officer, PPG
• Lori Miles-Olund, president, Miles Fiberglass & Composites, Inc.
• Christopher Perkins, president North America and senior vice president Taste & Beyond North America, Firmenich, Inc.
• Kimberly Ryan, president and chief executive officer, Hillenbrand, Inc.
• Karin Shanahan, executive vice president, global product development and supply, Bristol-Myers Squibb Company
• Matt Shields, senior vice president, global animal health manufacturing, Merck & Co., Inc.
• Sachin Shivaram, chief executive officer, Wisconsin Aluminum Foundry
• Shruti Singhal, chief executive officer, Chroma Color Corporation
• Mark Smucker, president and chief executive officer, The J.M. Smucker Company
• Matt Wood, national industry leader, commercial products practice, FORVIS
• Brent Yeagy, president and chief executive officer, Wabash
• Renée Zemljak, executive vice president, midstream, marketing & fundamentals, Ovintiv USA Inc.

What we’re saying: “The diverse backgrounds of our new board members, and their varied experience across many manufacturing sectors, make their counsel invaluable to the NAM in its efforts to bolster the industry’s competitiveness,” said NAM Chief of Staff Alyssa Shooshan. “We are counting on their insights and dedication to help steer manufacturers through this turbulent time and into a position of even greater strength.”

Hurricane Ian’s devastating landfall in Florida Wednesday afternoon marked the second significant storm to hit the U.S. and territories in less than two weeks. But as is usually the case when catastrophe strikes, manufacturers are already among those leading the charge to help the communities affected.

Manufacturers mobilize: In Puerto Rico, where approximately one-third of all residents remain without power following Hurricane Fiona Sept. 18, manufacturers including Dow, UPS, Coca-Cola, Ecolab and Toyota are funding product donations across the island through NAM partners Good360 and SBP.

What’s happening: These NAM partner organizations are providing on-the-ground updates and working to get products where they’re needed most. Items of greatest need include:

• Solar-powered power generators;
• Nonperishable foods and ready-to-eat meals;
• Mold remediation products;
• Oxygen tanks;
• Hygiene kits and supplies;
• Drinking water;
• New clothing; and
• School supplies.

Meanwhile, the work is just beginning in Florida to respond to Hurricane Ian, with anticipated items including drinking water, nonperishable foods, hygiene kits, tarps, blankets and mold remediation products.

NAM in action: The NAM’s Emergency Response Committee is an employee-led, volunteer group that works year-round with nonprofit partners, including Good360, SBP and Project HOPE, to provide NAM members with disaster-preparedness resources and training.

• These resources, which include e-learning modules, fact sheets and webinars, enable manufacturers to support their employees ahead of, during and in the aftermath of disasters.
• The NAM’s ERC also helps manufacturers activate to aid their communities when disaster strikes—and it works to identify and highlight members that are leading this critical work.

Be prepared: In a webinar sponsored by the NAM’s ERC, Amanda Gallina, SBP community engagement manager, and Matt Woodruff, vice president of public and government affairs for Texas-based tank barge operator Kirby Corporation, gave their suggestions for hurricane preparation.

For businesses: Woodruff provided some commonsense advice for employers:

• Have a plan: Have a hurricane-preparedness plan and ensure that all employees understand it—before hurricane season starts.
• Make a list: Create a checklist of tasks that must be done during the season, starting with the first day.
• Set up: Create and offer remote work sites for affected communities and employees.
• Support: Provide support to the families of employees who live in disaster-hit areas.

The last word: “The NAM stands ready to provide resources and support for its manufacturing members and the communities in which they operate in all conditions,” said NAM Director of Member and Board Relations Isabelle Powell.

• “We urge members to contact their membership directors with questions on how to better prepare their team or support people in their communities.”

For more information on manufacturer disaster preparedness or to be added to the NAM’s ERC mailing list, please email [email protected].

Washington, D.C. – Ahead of the midterm elections, the National Association of Manufacturers released its policy roadmap, “Competing to Win,” a comprehensive blueprint featuring immediate solutions for bolstering manufacturers’ competitiveness. It is also a roadmap for policymakers on the laws and regulations needed to strengthen the manufacturing industry in the months and years ahead.

With the country facing rising prices, snarled supply chains and geopolitical turmoil, manufacturers are outlining an actionable competitiveness agenda that Americans across the political spectrum can support. “Competing to Win” includes the policies manufacturers in America will need in place to continue driving the country forward.

“‘Competing to Win’ offers a path for bringing our country together around policies, shared values and a unified purpose,” said NAM President and CEO Jay Timmons. “The NAM is putting forward a plan filled with ideas that policymakers could pursue immediately, including solutions to urgent problems, such as energy security, immigration reform, supply chain disruptions, the ongoing workforce shortage and more. Manufacturers have shown incredible resilience through difficult times, employing more workers now than before the pandemic, but continued resilience is not guaranteed without the policies that are critical to the state of manufacturing in America.”

The NAM and its members will leverage “Competing to Win” to shape policy debates ahead of the midterm elections, in the remainder of the 117th Congress and at the start of the 118th Congress—including in direct engagement with lawmakers, for grassroots activity, across traditional and digital media and through events in key states and districts as we did following the initial rollout of the roadmap in 2016.

The document focuses on 12 areas of action, and all policies are rooted in the values that have made America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.

Learn more about how manufacturers are leading and about the industry’s competitiveness agenda at nam.org/competing-to-win.

-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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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

How should companies design R&D teams and processes to create the best possible results? That’s the challenge that Babson College Professor of Innovation Management Gina O’Connor addressed in her talk at the Innovation Research Interchange’s annual conference back in June. The IRI is a division of the NAM that advances the field of innovation management by creating contemporary practices—in R&D and many other areas.

A common problem: In an extensive research project at Babson College, O’Connor worked with experts from Goodyear, Synthomer and Diageo to study companies and decipher best R&D practices. She noticed a recurring theme: R&D professionals were being used by companies to solve urgent technical issues rather than to discover and invent.

• “In many organizations R&D has this feeling of being an order taker and of having to solve problems that are finely tuned and narrowly scoped,” said O’Connor. “That erodes confidence—and eroded confidence reduces empowerment.”

Empowerment and autonomy: O’Connor described empowerment as the authority to determine which projects and initiatives to take on and what problems to tackle. Meanwhile, autonomy refers to the authority to make final decisions.

• So, what do R&D professionals need? According to O’Connor, most want a moderate amount of empowerment, but not complete control over what to do.
• “We want to make sure that there’s organizational commitment somewhere associated with what we are doing, but we don’t just want to be told what to do,” as she put it.

So, what works? O’Connor explained that organizations with structureless R&D systems often had erratic decision making, sudden disruptions and unexpected changes in direction that left employees feeling powerless.

• Similarly, organizations with R&D processes that were too formal were also alienating to employees, who felt there wasn’t any room for flexibility or discussion.
• In contrast, the best systems included strong project leaders, consistent back and forth between the R&D group and organizational leadership, constructive communication, clearly outlined goals and trust in employees.

A last piece of advice: Training and developing project leaders is among the most essential steps in achieving successful R&D, said O’Connor.

• “What you need to be doing as a team leader every day is checking in with every member of your team, seeing what they need, where they are, what has happened,” said O’Connor. “It has to be an interactive, interpersonal kind of a thing.”

Learn more: Head on over to the IRI website to check out more of its programs and events.