MAF: A STRONG BUSINESS CLIMATE FOR A STRONG FLORIDAAL STIMAC

PRESIDENT, MANUFACTURERS ASSOCIATION OF FLORIDA

OWNER, MACHINING SOLUTIONS AND METAL ESSENCE

AUGUST 12, 2016

The advancement of manufacturing is the most important link to increasing economic prosperity

DOES MANUFACTURING STILL MATTER?

For every $1.00 spent in manufacturing, another $1.81 is added to the economy

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TECHNOLOGY IS IMPACTING MANUFACTURING

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EMERGING GLOBAL TRENDS IN ADVANCED MANUFACTURING

Industry 4.0the Europe's vision for advanced manufacturing

Smart Manufacturingthe US vision for advanced manufacturing

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ADVANCED TECHNOLOGIES WILL UNLOCK NEW OPPORTUNITIES…

…and underpin

global

manufacturing

competitiveness

US: Predictive Analytics, IoT, & Advanced Materials are considered the most promising

China: Prioritizing ‘PredictiveAnalytics’ and other similar technologies to close gap with

the United States as well as create competitive advantage through HPC

Europe: Integrated European priorities are very much aligned with “Industry 4.0” –

creating an integrated and connected closed loop design & build process as key focus

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U.S. MANUFACTURING

• In the most recent data, manufacturers contributed $2.17 trillion to the U.S.

economy

• Average Annual Compensation $79,553

• Foreign direct investment in manufacturing exceeded $1 trillion

• Taken alone it would ninth-largest economy in the world

• More than three-quarters of all private-sector research and development

• Manufacturers consume mere than 30 percent of the nations energy consumption

• The cost of federal regulations falls disproportionately on manufacturers, particularly

those that are smaller.

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ISSUES NATIONWIDE

• Developing a workforce

• Trade agreements

• Competitive costs

• Cybersecurity

• Intellectual property theft

• Health care costs

• Integrating a younger workforce

• Tribal knowledge

• Federal regulation

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MANUFACTURING IN FLORIDA

• 19,000+ manufacturing facilities

• 353,000+ employees

• Increased jobs in manufacturing for 66

consecutive months

• Manufactured goods exports makes up 92.1% of

total goods exports.

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WHY IS MANUFACTURING IMPORTANT TO FLORIDA?

• Diversify economy

• Provide well paying jobs (average annual salary is

$64,000+)

• Offer more opportunities to stay after graduation

• Create wealth through increased sales and exports

• Provide business cluster opportunities

• Provide innovation incubators

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ISSUES IN FLORIDA

• Image

• Recruiting workers

• Upskilling existing and

incoming workers

• State and local taxes

• Local and federal regulation

• Global competition

• Knowledge transfer

• Adapting to younger

generation of workers

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WHAT IS MAF?MAF was organized in 2006 to speak with one voice on behalf of all manufacturers in Florida on issues that will improve the state’s business climate.

Advocacy for manufacturers of all sizes is our primary goal

MAF has 20 Board member companies and General Counsel

Association leaders serve on various Councils and Boards to support the industry

WHAT IS MAF?

The association has 2 active committees:

• Government Relations: Identifies issues across the state that are developed into legislative priorities

• Workforce & Education: Works with community partners to further engagement with workforce and education issues.

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WHAT IS MAF?Recent Victory: Permanent elimination of Florida’s sales tax on manufacturing machinery and equipment (2016)

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CURRENT PROJECTSDIDI500: A Statewide Race for Teens

• Focused on recycled products and clean, sustainable energy• Manufacturers invited to volunteer as mentors to local teams• MAF members and Annual Summit attendees will be involved

in voting for the winners; Winning teams announced at MAF Annual Summit November 16!

www.MAFMFG.com/DIDI500

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CURRENT PROJECTSMAF Annual Summit & Marketplace - November 15-17, 2016 in Gainesville, FL

• Annual gathering of manufacturers from across the state• 2016: Today’s Vision – Tomorrow’s Reality• Focus on new technologies, avoiding disruptions, and peer to peer best practices• New Feature: Young Professionals breakout session and special rate!www.MAFMFG.com

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CURRENT PROJECTS2017 LEGISLATIVE PRIORITIES

• Eliminate/reduce the tax on commercial leases and rentsCutting the business rent tax by 1% would result in $339 million in savings for business owners in the first 2 years

• Reduce rising costs of workers compensation insurance

• Improve funding for research and development grants

• Maintain Florida Makes funding

• Establish 50/50 match teacher internships/externships at businesses

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MANUFACTURERS’ SUPPORT NETWORK

• MAF – the only statewide association focused solely on manufacturing

• Regional manufacturing associations

• Educators, trainers, researchers

• Agencies – Enterprise Florida, CareerSource Florida, Florida SBDC, FDOE, FEDC, local economic development councils and others

• Governor’s Office, legislators

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ENGAGEMENT BY MFG COMMUNITY

• Manufacturing Month – Most activities

in the nation 2013-2015

• Dream It! Do It! – Encouraging youth to

follow mfg careers

• Florida TRADE Manufacturing Network:

22 state colleges, 11 RMAs, 14

CareerSource Florida regional boards

• Statewide Manufacturing Career Fairs

2015:

50+ career fairs

1,300+ job seekers employed

• Lobbying presence in the Capital

• CareerSource Florida – Identification

of top 50 needs and geographic

distribution of resources

• EDCs and Enterprise Florida –

incentives

• Annual Summit (Nov. 15-17 in

Gainesville)

• Manufacturer of the Year Awards &

MAF Seal of Excellence

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COMING YEARS• Advocacy on more issues/levels

• Engaging Dream It! Do It! events

• Ever changing business climate issues

• Millennials, women and veterans in manufacturing

• MAF recognition

• Growing MAF

• Identifying with MAF

• Relationships and collaboration

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ENGAGE WITH US

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@MAFSocial

www.MAFMFG.com