Inside the MI’s Pathbreaking Workforce Summit
The best minds tackling manufacturers’ workforce challenges gathered in Atlanta last week to discuss hiring, retention, training and more. The Manufacturing Institute’s workforce summit convened almost 300 manufacturers, partners from education and training groups, philanthropy leaders and representatives from community-based organizations to share insights and brainstorm solutions.
The economic backdrop: Amid a persistently tight labor market, manufacturers are looking for immediate and long-term solutions to attraction and retention challenges.
- Chad Moutray, director of the MI’s Center for Manufacturing Research, provided the larger economic context for attendees, saying that “it’s not hard to be bullish about manufacturing. There continues to be signs of resilience in the sector despite a multitude of challenges.”
- “However, it exacerbates workforce issues, which remain the top concern of manufacturers, especially in a solid labor market,” he added.
Energizing connections: The MI was focused on helping participants learn from each other and form lasting and productive bonds.
- Organizations including the Georgia Association of Manufacturers, Siemens Foundation and River Parishes Community College sent leaders to facilitate conversations and share insights, while the generous support of WestRock, the Arconic Foundation and many others made the event possible.
- In breakout sessions, MI experts analyzed the key challenges facing manufacturers and shared proven workforce solutions like high school internships, female mentorship programs and regional sector partnerships.
Fresh insights: The two-day event was brimming with new ideas and fresh perspectives—too many to list in one article. Here is a brief sampling of the topics covered:
- People: The speakers highlighted manufacturers’ work to create positive company culture, prioritize flexibility and address issues like the shortage of child care. Maj. Gen. Kris Belanger also shared the importance of tapping into military talent pools like the U.S. Army Reserve. Programs like the MI’s Heroes MAKE America are making these important connections.
- Skills: To meet their needs for skilled workers, manufacturers are working with the MI, economic development boards and educational institutions to train the current and next generations of manufacturing employees. Workshop sessions showcased solutions from the MI’s FAME USA program, second chance hiring initiative and student engagement.
- Processes: Conversations in the popular “Brewing Solutions” rooms focused on ways manufacturers and workforce partners could tap into hidden populations, create attractive working environments and address policy barriers that restrict the adoption of innovative solutions.
Fearing you missed out? Don’t worry! There are plenty of ways you can plug into the cutting-edge work of the MI, the NAM’s workforce development and education affiliate.
- Get updates directly from the MI on the latest workforce insights and receive information about registering for the 2024 Workforce Summit.
- Join us as a sponsor for the 2024 Women MAKE Awards in Washington, D.C., on April 18 to support female manufacturing leaders and network with manufacturers and other workforce partners.
- Want more labor data and insights? Sign up for the MI’s comprehensive Workforce in Focus newsletter to stay up to date on the latest workforce trends.
The last word: “The MI’s unique positioning as both an insightful expert of emerging trends within the industry and an effective implementer of proven workforce solutions drives innovative problem-solving,” said MI President and Executive Director Carolyn Lee. “As we face structural workforce shortages, convenings like the MI’s Workforce Summit will continue to be crucial to build the types of partnerships and share important insights needed to ensure the readiness of the manufacturing workforce.”
Creators Wanted Tour Sets New Records at Ohio Finale
The size of the Great Pumpkin at the 116th annual Circleville Pumpkin Show—Ohio’s iconic fall fest—wasn’t the only record shattered there last week. The Creators Wanted Tour, a historic initiative of the NAM and the Manufacturing Institute to build excitement about modern manufacturing careers, reached new highs for engagement at its 20th and final stop.
Driving the news: The show attracted a crowd of more than 400,000, with “Creators Wanted” the most prominent brand seen and heard throughout the entire event. Of show attendees, the Creators Wanted activation pulled in a tour record of 2,024 participants comprising students and chaperones, taking the immersive experience’s overall total to just shy of 17,000 in two years.
- The digital campaign surrounding the stop collected an additional 110,000 email signups from students and career mentors interested in learning more about modern manufacturing careers, bumping the campaign’s email list above 1.6 million.
- The tour stop also saturated local news, with NBC4, 10TV CBS and WTTE Fox all sending live crews to the experience.
Why it matters: The stop, sponsored by the joint venture of Honda and LG Energy Solution and in partnership with the Ohio Manufacturers’ Association, comes at a critical time for the nation’s manufacturers, as they compete against other industries to fill available job openings today and win the interest of young people for the careers of tomorrow.
- For example, Honda and LG Energy Solution need to hire 2,200 workers within two years for their new electrical vehicle battery plant in Fayette County, Ohio.
- At the stop, Honda and LG Energy Solution joint venture associates were on hand to provide information about modern manufacturing careers generally and about opportunities at the EV plant specifically. The traffic around the experience was so robust that all recruiting materials were exhausted before the event wrapped up.
Zoom in: On Saturday night, the Creators Wanted team also reinforced the industry’s commitment to communities by leading the largest parade of the show, in front of tens of thousands who heard the public address system broadcast the industry’s call for creators and highlight the campaign’s career resources at CreatorsWanted.org.
- NAM President and CEO Jay Timmons, a proud son of Circleville and Chillicothe, Ohio, also addressed an assembling of Ohio’s young women leaders and their families, emphasizing their capacity to make a difference in manufacturing careers while at the same time noting mentorship resources available to them through the MI’s Women MAKE America initiative.
- The tour’s innovative approach received strong approval from state and local officials, strengthening the campaign’s ability to reach students and constituents. Ohio Treasurer Robert Sprague, State Auditor Keith Faber, State Sen. Michele Reynolds and State Reps. Brian Stewart and Mark Johnson, among others, stopped by to see what the buzz was all about.
Tour highlights: Beyond the pumpkin-centric celebrations, the tour also took its message of opportunity and rewarding careers to the new, state-of-the-art Logan Elm School, a combined elementary, middle and high school, as well as to students of the Ohio State University’s Center for Design and Manufacturing Excellence.
- At Logan Elm, Timmons was joined by OMA President Ryan Augsburger, Honda and LG Energy Solution joint venture representative and engineer Sandip Suvedi and representatives from Sofidel America. Honda engineer Meredith Reffey, who is now Honda America’s department lead for workforce partnership, joined Timmons and MI President and Executive Director Carolyn Lee at OSU. (The MI is the workforce development and education affiliate of the NAM.)
The big number: Post-tour surveys show that 84% of participants now view the manufacturing sector more positively.
On the record: “Closing our expansive 20-stop, 25,000+ mile tour at such a dynamic event serves as a potent reminder: the heartbeat of manufacturing lies within our communities,” said Timmons. “It’s in the eyes of the young dreamers in the crowd, the hands of our diligent staff and the spirits of every individual who championed our journey.”
- “The Creators Wanted Tour helped us shift perceptions, but we also know the hard work of continuing to improve perceptions and build the workforce of the future goes on,” said Lee. “The Manufacturing Institute, with our scaled-up efforts to drive solutions with manufacturers and across the industry and the robust digital network and resources the campaign has created will build on the tour’s momentum to do even more.”
The last word: “Our aspiration with Creators Wanted was straightforward yet audacious: to transcend traditional boundaries, step out of the corridors of Washington, D.C., and engage directly with communities across the country,” said NAM Managing Vice President of Brand Strategy Chrys Kefalas. “That’s exactly what we and the manufacturers who joined this tour and campaign did, and we’ve made a lasting positive difference in people’s lives that will outlive this tour and help the industry for decades to come.”
Creators Wanted Tour Sets New Records at Ohio Finale
The size of the Great Pumpkin at the 116th annual Circleville Pumpkin Show—Ohio’s iconic fall fest—wasn’t the only record shattered there last week. The Creators Wanted Tour, a historic initiative of the NAM and the Manufacturing Institute to build excitement about modern manufacturing careers, reached new highs for engagement at its 20th and final stop.
Driving the news: The show attracted a crowd of more than 400,000, with “Creators Wanted” the most prominent brand seen and heard throughout the entire event. Of show attendees, the Creators Wanted activation pulled in a tour record of 2,024 participants comprising students and chaperones, taking the immersive experience’s overall total to just shy of 17,000 in two years.
- The digital campaign surrounding the stop collected an additional 110,000 email signups from students and career mentors interested in learning more about modern manufacturing careers, bumping the campaign’s email list above 1.6 million.
- The tour stop also saturated local news, with NBC4, 10TV CBS and WTTE Fox all sending live crews to the experience.
Why it matters: The stop, sponsored by the joint venture of Honda and LG Energy Solution and in partnership with the Ohio Manufacturers’ Association, comes at a critical time for Ohio and the nation’s manufacturers, as they compete against other industries to fill available job openings today and win the interest of young people for the careers of tomorrow.
- For example, Honda and LG Energy Solution need to hire 2,200 workers within two years for their new electrical vehicle battery plant in Fayette County, Ohio.
- At the stop, Honda and LG Energy Solution joint venture associates were on hand to provide information about modern manufacturing careers generally and about opportunities at the EV plant specifically. The traffic around the experience was so robust that all recruiting materials were exhausted before the event wrapped up.
Zoom in: On Saturday night, the Creators Wanted team also reinforced the industry’s commitment to communities by leading the largest parade of the show, in front of tens of thousands who heard the public address system broadcast the industry’s call for creators and highlight the campaign’s career resources at CreatorsWanted.org.
- NAM President and CEO Jay Timmons, a proud son of Circleville and Chillicothe, Ohio, also addressed an assembling of Ohio’s young women leaders and their families, emphasizing their capacity to make a difference in manufacturing careers while at the same time noting mentorship resources available to them through the MI’s Women MAKE America initiative.
- The tour’s innovative approach received strong approval from state and local officials, strengthening the campaign’s ability to reach students and constituents. Ohio Treasurer Robert Sprague, State Auditor Keith Faber, State Sen. Michele Reynolds and State Reps. Brian Stewart and Mark Johnson, among others, stopped by to see what the buzz was all about.
Read the full story here.
How Manufacturers Can Unlock the Power of Data
Manufacturers are using data to improve everything from their supply chains to their workplace culture—and more. Data can lead the way to new innovations, new business models and even new revenue streams. Yet, many manufacturing executives say they are not scaling data-driven use cases successfully, meaning that much of the information they do collect is going to waste.
So how can companies get the most out of their data and ensure they aren’t losing out on key insights?
A unique event hosted by the Manufacturing Leadership Council, the NAM’s digital transformation division, aims to answer these questions and more. “Manufacturing in 2030: The Coming Data Value Revolution,” which will be held on Dec. 6–7 in Nashville, Tennessee, will explore the ways manufacturers can unlock value from their data to boost productivity, value and competitiveness.
On the agenda: This event will have three key areas of focus:
- Data value: Attendees will learn what the future holds for data monetization, data ecosystems and data-driven innovation.
- People and process: They will also hear about the future workforce, including emerging and evolving job roles, data-driven leadership and data culture.
- Technology and data: And lastly, they will peek into a future where artificial intelligence, data visualizations and the industrial metaverse are part of our everyday manufacturing world.
M2030 agenda highlights: The presenters will also share practical insights that participants can put into action right away.
- In “Capturing Intelligence for Business Model Innovation,” IDC’s Bob Parker will examine digital maturity and the future of enterprise intelligence. Parker will explain how to create new business models through enhanced customer experience, as well as how to capture and leverage economies of intelligence.
- In “The Rise of Data Ecosystems,” John Dyck of the Clean Energy Smart Manufacturing Innovation Institute will deliver a practical explanation of Manufacturing-X, Gaia-X and Catena-X as well as their goals and challenges. Dyck will discuss trends driving data-sharing initiatives as well as related technical and governance issues.
- In “Building Great Supply Chain Visibility by 2030,” Supply Chain Insights’ Lora Cecere will address why 80% of the data being generated from supply chains isn’t being used well enough. Cecere will also explore how data can be used to create more resilient supply chains by 2030.
The bottom line: Advanced technologies are only part of the digital transformation story. Manufacturers who want to get ahead need to understand data’s role and value, not to mention how people, process, technology and even data itself will evolve by 2030.
Sign up: Registration is open for Manufacturing in 2030: The Coming Data Value Revolution. Click here to learn more.
A Supply Chain Leader Supports Other Women in Manufacturing
When Carrie Shapiro began her career as an engineering student at the Georgia Institute of Technology, she didn’t expect to work in manufacturing—but the moment she walked into a manufacturing facility near her school for an interview, she was hooked.
“I’ve had so many opportunities in manufacturing that I never wanted to leave,” said Shapiro. “From the very beginning, I was able to keep learning and growing and making better relationships.”
Today, Shapiro serves as the vice president of sourcing execution at Georgia-Pacific—a pulp and paper company—where she guides procurement and uses her expertise in supply chain operations to benefit the company’s 110 facilities. As a leader in the industry, she’s also focused on helping potential creators understand all that manufacturing has to offer.
A changing world: Shapiro’s role has been especially important over the past few years, as the COVID-19 pandemic and its aftermath forced companies to adjust their supply chains and react to shortages in real time. For Shapiro, that process required rethinking risks, using data effectively and focusing on achieving stability before optimization.
- “The mistake that we often make is we try to optimize something that’s not stable,” said Shapiro. “If you’ve got chaos in your supply chain, you have no business trying to optimize it. You have to stabilize first.”
A need for humans: As Shapiro notes, data has become more readily available than ever before, and new tools are helping organizations make smart adjustments in real time. Yet, human decision-making and critical thinking still have a vital role at the center of manufacturing.
- “Tools are great, software is great, tech is great—but it should be an enabler and not a magic wand,” said Shapiro. “You still have to know your process, understand your current state and know your capabilities across the supply chain to make effective decisions. Tools don’t absolve you from doing the real work of continuous improvement.”
Leading by example: At a time when women are underrepresented in the manufacturing industry, Shapiro feels a responsibility to help other women succeed.
- She serves as a mentor with Pathbuilders, where she helps high-achieving women reach their fullest potential. She also coaches young engineers in the Steven A. Denning Technology & Management Program at Georgia Tech and serves as a longstanding member of the Next Generation Manufacturing Women’s Roundtable.
- “One of the most important roles that I play is to be a visible leader and to show there is a path to leadership inside manufacturing as a female,” said Shapiro. “Having someone who looks like you in a leadership position really matters. That representation matters, and it’s meaningful to people coming up in the organization.”
- On the strength of her long record of mentorship, Georgia-Pacific has nominated Shapiro for a 2024 Women MAKE America award, given by the Manufacturing Institute (the NAM’s workforce development and education affiliate) to outstanding women in the field. (Stay tuned for the ceremony!)
The last word: Shapiro encourages other manufacturing leaders to be active in lifting up individuals who might otherwise be overlooked.
- “I’ve had incredible supervisors who have pulled me up through the organization, who saw something in me that I didn’t see in myself,” said Shapiro. “Sometimes people look at a candidate and think they might be a stretch for the position—but they may just not look like a traditional candidate.”
How Quantum Computing Can Combat “Forever Chemicals”
What sort of computer can evaluate 67 million potential solutions in 13 seconds? Only a quantum computer. But what sort of problem has 67 million solutions to begin with?
Many manufacturing challenges do, from optimizing supply chain logistics to finding the most efficient way to load millions of pallets. In recent years, another mind-bendingly complex problem has begun to occupy the industry: how to get potentially dangerous chemicals in a category known as PFAS out of use and out of our environment.
Quantum computing firm D-Wave says that quantum holds the key, as its massive computing power could find new ways to remove or remediate the chemicals, or even help identify which of the thousands of chemicals in this class are indeed dangerous. We recently spoke to D-Wave Global Government Relations and Public Affairs Leader Allison Schwartz to get the details.
How it works: As Schwartz explains it, quantum is “a completely different form of computing.”
- “Due to superpositioning and quantum entanglement, quantum can look at all possibilities at once and come back with an answer very quickly,” she said, in a way that classic computers just can’t match.
- However, some of the best solutions are a product of both classic computers and quantum, an option known as “hybrid” applications. For example, Davidson Technologies collaborated with D-Wave to create a hybrid solution that produced the aforementioned 67 million scenarios in 13 seconds.
- “Classical computing alone can’t do that,” Schwartz observed.
When quantum meets PFAS: So how does this help with PFAS? Schwartz told us that there are two different types of quantum computing that would prove useful.
- The first, annealing quantum computing systems, are superior at providing optimized solutions. These systems can quickly run through millions of scenarios that model potential chemical spills, methods of remediating the chemicals, techniques for removing them from operations entirely and much more. These systems are commercially available today through the cloud.
- Meanwhile, gate model systems offer another avenue for dealing with PFAS—they can potentially invent alternative molecules that could substitute for the dangerous chemicals. However, gate-model systems are not large enough yet to tackle real-world problems.
Doing the research: Quantum could also play a role in determining which chemicals are harmful in the first place, added Schwartz. There are thousands of PFAS chemicals out there, but so far, only a few hundred have been studied.
- To examine the effects of various chemicals, researchers and companies will have to undertake clinical trials. Quantum can help optimize the organization of those trials, as well as aid in analyzing the results—for example, by assisting with medical imaging reconstruction.
So what’s the holdup? With such a powerful tool at the ready, you might think policymakers would be jumping at the chance to encourage its use. In fact, quantum has yet to be used in a PFAS-related application, though Sens. Gary Peters (D-MI) and Joni Ernst (R-IA) mentioned its use in 2019 legislation later incorporated into the 2021 National Defense Authorization Act.
- However, “The EPA or DOE could recommend using quantum to optimize the PFAS work. It doesn’t need a legislative fix,” Schwartz noted. Instead, policymakers are more focused on finding replacement chemicals, a process that could take years, while incremental solutions could have a huge effect today.
- “Policymakers are relying on manufacturers to address the problem, but they aren’t providing insight into how emerging technology, such as quantum computing, can help manufacturers better achieve success,” said Schwartz.
Making quantum work for you: For manufacturers looking at quantum as a potential problem-solver, whether for PFAS or something else, Schwartz explained how D-Wave approaches new clients.
- First, a company’s leaders sit down with consultants at D-Wave, who conduct an in-depth examination of its operations—for example, by investigating which PFAS chemicals might be in use, how remediation might be accomplished or how contamination should be modeled.
- Once a problem or problems are identified, D-Wave builds a demo to test out potential options. It might build a custom algorithm or even a digital twin, as it did in partnership with SavantX to optimize container loading at the Port of Los Angeles. This step helps to hone the algorithm so it can find the right solutions for the manufacturer’s specific problem.
- Then D-Wave will work with the manufacturer to pilot the solution, making sure it functions as expected.
- And finally, the solutions are integrated into the production process and become part of daily operations.
The last word: “Tackling PFAS is a multipronged effort that calls for industry, academic and government collaboration,” said D-Wave CEO Dr. Alan Baratz. “Instead of waiting for a replacement chemical that could be years away, it is time to break down this societal problem and identify which parts of the problem can be addressed with quantum technology today.”
Students Experience Manufacturing at MFG Day Kickoff
To say there was a lot for students to see and do at chemical manufacturer BASF’s MFG Day event at River Parishes Community College last Friday would be an understatement.
- The activities at the Gonzales, Louisiana, college were made possible by a partnership between with the school and the Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate.
A rewarding experience: Hundreds of middle and high school students gathered on the campus for a chance to learn about manufacturing and how rewarding careers in the industry can be.
- Representatives from approximately 10 manufacturing companies and various departments at the college set up demonstration and interactivity stations where the students could find out more about the different careers and training programs available in their community.
- BASF was platinum sponsor of this year’s MFG Day, a flagship initiative of the Manufacturing Institute that introduces students, parents and educators to the manufacturing industry.
Hands-on activities: Students got the chance to conduct science experiments (including one in which they made putty and learned how different chemicals react to create the substance), simulate firefighting, experience virtual and augmented reality welding systems, try out process control simulators and more.
Readying the future workforce: Partnerships between academia and industry are helping to deliver the right workers to the right jobs, Louisiana Economic Development Secretary Don Pierson told the students and other audience members at the event.
- The LED’s “FastStart workforce development [program], that integrates with community colleges and four-year universities across our state, help[s] guide and then make the recipe to deliver exactly what BASF needs, exactly what Shell needs, exactly what ExxonMobil needs” in its workforces, Pierson said.
- Said A. Denise Graves, Ascension Public Schools assistant superintendent, “[Today] is an opportunity for our children because they’re going to go home and they’re going to share this information [about manufacturing careers], they’re going to share this day with others.”
A guiding path: Louisiana State Rep. Ken Brass, who is also an electrical engineer at BASF, described his journey into manufacturing.
- “I would like to publicly and personally thank BASF and the Manufacturing Institute for investing in me and my career,” he said. “It wasn’t too long ago [that] I was a senior at a nearby high school … and I was wondering [about] the path forward for my life after high school.”
- “I attended a STEM event which led me to attend Southern University and ultimately receive a bachelor’s degree in engineering with a minor in mathematics,” he continued. “Upon graduation, BASF took a chance on me. I have now been at the company for over 20 years, which has allowed me the opportunity to continue to live in my hometown of St. James and to work in a nearby parish.”
Changing perceptions: Activities such as those at BASF’s MFG Day event allow students to get a real taste of modern manufacturing and perhaps take career paths similar to Brass’s, MI Executive Director Carolyn Lee said.
- “MFG Day … is designed to give manufacturers a platform to come together to address one of the biggest challenges we all face each and every day—and that’s to change the perception of our careers,” Lee said.
- “We’re showing students what manufacturing really looks like today and how operators get to work … in clean, bright, sleek technology-driven facilities while accessing state-of-the-art equipment and tools, including robotics and augmented reality, drones and digital twins, just to name a few.”
A bright future: “We know that by building an interest in STEM careers today, we’ll create the sustainable solutions [we need] for tomorrow,” said BASF Senior Vice President and General Manager Jerry Lebold. “It’s through these kids and … efforts like this with RPCC that I know that future is going to be more sustainable and it’s going to be very bright.”
Chemical Manufacturers Push EPA for Faster Action
Under the Toxic Substances Control Act, businesses must keep up with all of the requirements and restrictions relating to chemical substances. Although manufacturers fulfill their obligations with the utmost care, the Environmental Protection Agency isn’t keeping up its end of the bargain.
Alan Dyke, Ph.D. is the chief technology officer at Boulder Scientific Company—a specialty chemical company based in Mead, Colorado—and a member of the Society of Chemical Manufacturers & Affiliates. In his opinion, the EPA must change its approach if manufacturers in the U.S. are to remain competitive.
The company: Serving clients in many sectors, from pharmaceuticals to defense and aerospace, Boulder Scientific makes a number of complex and unique catalysts and compounds. The company proudly keeps all their manufacturing processes inside the United States.
- “We work with an end user to produce materials inside America with the right level of safety and quality, and to make those materials available for them within American borders,” Dyke explained. “We don’t outsource any manufacturing outside the U.S.”
The challenge: The EPA continues to miss congressionally mandated deadlines to review and approve compounds, creating havoc in an industry dependent on clockwork efficiency.
- “We’ve encountered delays because of the time it takes to file a document, the variability of response times from the EPA and the sheer number of documents we have to file,” said Dyke.
- At the same time, the EPA is imposing more regulations on chemical manufacturers that are difficult to navigate or confusing.
- “To make one of our compounds might take 10 different chemical intermediates from the first raw materials through to the end product,” he explained. “Each one of those materials requires a filing for each one of those compounds. And if any one of those steps is not approved, it interrupts our delivery process.”
The impact: These problems don’t just affect chemical manufacturers; they also cause problems throughout the supply chain and for customers and end users, who are forced to wait through a series of unpredictable delays.
- “During the past two years, we’ve seen a level of frustration building at the end-user level,” said Dyke. “Customers are considering sourcing from other countries where the system is more predictable and they won’t have to face these delays.”
The next step: Should the EPA fail to correct its course, even businesses dedicated to remaining in the U.S. may reach a breaking point, Dyke cautioned.
- “We are considering sourcing raw materials and advanced intermediates in other countries—and even establishing manufacturing in other countries—because registration and filing is easier in other places,” he said.
- “And that’s really concerning, because if we’re thinking about doing things outside the United States, then I can guarantee a number of SOCMA members are thinking similarly.”
The CHIPS effect: Even as the U.S. government encourages companies to manufacture semiconductor chips in the United States through the CHIPS Act, the EPA’s delays are making it harder to fulfill critical goals. Boulder Scientific, which does significant business with the chips industry, is caught up in this bottleneck.
- “The frustration from the folks who are buying those materials from us is that the incentive to support the CHIPS Act is strong, whereas the current EPA filing process is not efficient—and so there’s a mismatch,” said Dyke. “We’re not able to perform the way we would want to in support of that government incentive.”
The last word: “Manufacturers are facing an onslaught of environmental regulations like we have never seen before,” said NAM Vice President of Domestic Policy Brandon Farris. “The industry supports commonsense regulations that contribute to a healthy environment but don’t prevent manufacturers from creating the products that make modern life possible.”
The NAM, members of the NAM’s Council of Manufacturing Associations and Conference of State Manufacturers Associations recently launched Manufacturers for Sensible Regulations, a coalition addressing the impact of the current regulatory onslaught coming from federal agencies. To learn more, and get involved, go here.
NAM Works with FCC on Cybersecurity Labeling Program
A proposed cybersecurity-labeling program for Internet of Things devices is a good idea for manufacturers and consumers alike—but it should be undertaken in the right way, the NAM recently told the Federal Communications Commission.
What’s going on: “The cybersecurity certification and labeling program—which is still in its proposal stage—is called Cyber Trust Mark and would be voluntary,” Government Technology reports.
- Participating companies would be able to utilize the cybersecurity label to signify that their products “meet certain cybersecurity criteria like ‘unique and strong default passwords, data protection, software updates and incident detection capabilities,’ and other features identified by the National Institute of Standards and Technology.”
What we’re saying: It is imperative that the FCC—which would oversee the initiative—keep manufacturers involved at all stages of development, NAM Vice President of Domestic Policy Charles Crain told the commission late last week.
- “To drive robust participation in the program and enhance cybersecurity protections for consumers, the NAM respectfully encourages the FCC to work closely with industry to finalize criteria and procedures that remain voluntary but, when implemented, prove workable for manufacturers and trusted by consumers,” he said.
What should be done: There are six main actions the FCC should take to ensure the success of the program, Crain said.
- Collaborate with manufacturers as the program is being developed.
- Keep participation in the program voluntary.
- Ensure that process of qualifying for and receiving a Cyber Trust Mark is “trusted, practical and flexible.”
- Make program criteria reflective of the varying degrees of risk that different products pose to consumers.
- Institute a legal safe harbor protecting manufacturers from liability.
- Educate consumers about the program and how they can protect themselves from cybersecurity threats.
The last word: “Manufacturers of IoT devices continue to take steps to enhance the cybersecurity measures implemented within these devices in order to secure them against threats and ensure that consumers are protected to the maximum extent possible,” Crain added.
- “The FCC’s proposed labeling program is thus an exciting opportunity for companies to show the progress they have made in this important arena, and for the industry to cohere around a set of practical, implementable best practices to protect the American people.”
How Manufacturers Can Strengthen Supply Chains’ Resilience
Since the onset of COVID-19 in 2020, supply chains have faced extraordinary challenges around the world. In the midst of shortages and disruptions, as well as global conflicts, how can manufacturers ensure that they receive the materials they need and deliver their products on time?
At a recent NAM event, attended by more than 75 executives from both manufacturing companies and association partners, Supply Chain Insights Founder Lora Cecere addressed the question of how the industry can build resiliency into the supply chain of the future. Here’s some useful advice from her keynote speech, called “Supply Chain Workshop: Connecting and Securing the Supply Chain for 2030.”
Defining resilience: As Cecere noted, in many cases manufacturers may have different ideas about what resilience represents—and it’s important to settle on a clear definition.
- “I define resilience as the ability to have the same cost quality and customer service given the level of demand and supply variability,” she said.
Differentiating supply chains: While most manufacturers talk about the supply chain as a unified system, Cecere encouraged participants to differentiate various kinds of supply chains from one another.
- “We have responsive supply chains that are all about time—things like flu vaccines and bathing suits,” which must be shipped during certain seasons, Cecere observed.
- “And then there’s the agile supply chain, which is very low volume and not predictable. We can’t measure that in the same way we measure the efficient supply chain, but we need to manage flow.”
- “We don’t have just one supply chain. We have multiple supply chains,” she emphasized.
Putting customers at the center: As businesses design and adjust their supply chains, customers can get lost in the equation, Cecere cautioned. In one exercise she has used in her research, she asks participants to draw a supply chain—and the results she’s received show how many manufacturers are leaving out an important piece of the puzzle.
- “Most people will start with a truck, smokestack, then a factory, a mill,” said Cecere. “But isn’t the supply chain really about the customer? And how do we align the customer from the customer’s customer to the supplier’s supplier? … The role of the supply chain is the delivery to the customer.”
Using data effectively: According to Cecere, about 80% of supply chain data is not used. She encourages manufacturers to look creatively at the wide range of data available to generate useful insights.
- “We’re not looking at all the data we have, and we’re not thinking hard enough about how we use it,” she said.
Developing purple unicorns: Cecere encouraged participants to develop teams of “purple unicorns”—people with strong supply chain domain knowledge who can also innovate—and allow them to test new ideas and learn from failure.
The last word: “Supply chain excellence is not functional excellence—it is the ability to drive outcomes,” said Cecere. “This cannot be about the lowest cost; this has to be about the best potential of flow for cost, quality, customer service and inventory.”
Learn more: For more information, check out the full presentation here.