mapping manufacturing supply chains: tools for analysis and business development erik r. pages,...
TRANSCRIPT
Mapping Manufacturing Supply Chains: Tools for Analysis and Business Development
Erik R. Pages, EntreWorks ConsultingMark White, CRECDave Zellers, NW PA Commission
PEDA Spring ConferenceApril 21, 2015
2
Agenda
My Presentation
Manufacturing in PA: A Quick Look
Why Supply Chains? Why Value Chains?
What can you learn from Supply/Value Chain Analysis?
What Works? What Doesn’t Work?
Lessons Learned
Our Panel
Introduction to Key Issues (Pages)
Data Tools and Resources (White)
Using Results to Drive Economic Development Programs (Zellers)
April 21, 2015
3
Competing Perspectives on Manufacturing
Continued Decline? A Shale Energy
Revolution?
April 21, 2015
Manufacturing remains an important part of the Pennsylvania economy
April 21, 20154
Source: Economic Modeling Specialists, Inc. Q2 2012 Center for Regional Economic Competitiveness
Manufacturing as a percent of total state employment(2012)
*Nationwide, the Manufacturingsector accounted for 11,886,075 jobs
10.0%
16.9%
16.7%
14.5%
13.3%
13.3%
12.9%
12.8%
12.2%
11.7%
11.9%
11.6%
11.4%
10.9%
12.0%
10.8%
10.2%
10.0%10.1%10.1%
10.3%
9.7%
9.6%
9.6%
9.3%
8.9%
9.0%
8.9%
8.6%
8.4%
8.2%
8.1%
7.9%
7.3%
6.8%
6.5%
6.0%
6.1%
6.1%
6.0%
5.7%
5.3%
3.6%
4.2%
4.2%
3.9%
3.6%
3.3%
3.2%
1.9%
0.2%
MFG as a % of TotalState Employment
9.0% to 10.9%
More than 11.0%
6.0% to 8.9%
Less than 6.0%
*US Total: 8.9%
The manufacturing sector is especially important to the economy of NW Pennsylvania
PA NW PA
Manufacturing Jobs (2013)
566,991 50,461
MFG as a % of Total Employment
9.7% 17.0%
Avg. Annual Earnings (2013)
$73,092 $67,672
MFG Wages relative to Overall Avg. Wages
125.6% 158.3%
Source: Economic Modeling Specials, Inc., Analysis by CREC
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Supply Chain Issues & Concerns
Industry research suggests supply chain mgmt. is biggest challenge facing manufacturers. Firms are missing . . . Collaboration and visibility within supply
chains, Full understanding of the total cost of
ownership, and An overall synchronized plan for supply chain
management.
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Many manufacturers, esp. SMEs, lack. . . In-house business development
capacity Capacity to follow-up & capture new
opportunities from new markets, technologies or customers.
Access to outside business development or consulting services.
Finding New Customers: Understanding the Supply Chain
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Data Analysis of Key Industries Backward and Forward Linkages Focus on Smaller Firms (2nd & 3rd Tier
Suppliers) Identify and Interview Key Firms in Each
Target Sector Via Surveys, Interviews and other Research
Identify Growth Opportunities & Challenge Areas
Develop strategies to close gaps and exploit growth opportunities
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PURPOSE: What is a Supply Chain Analysis?
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What are major issues facing your local manufacturers? Are they connected to supply chain
issues? What kinds of support/technical
assistance are firms seeking? What growth opportunities exist in your
region? What are pressing gaps/challenge areas?
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Other Questions: For Economic Development/Community Leaders
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Other Models?
Defense Industry
CONNECTORY (www.connectory.com)
RADE Commons (http://www.rade-
commons.org/)
Food Sectors
Wallace Center Food Hub Network (http://ngfn.org/resources/food-hubs/food-hubs)
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Be Creative Developing Supply Chain Maps is Tough!
Be Patient Creating Supply Chain Connections
Takes Time Be Flexible
Supplement Supply Chain Support Effort with other Business Development Tools.
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Key Lessons Learned
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Erik R. Pages, EntreWorks Consulting [email protected] 703-237-2506
Mark White, CREC [email protected] 703-522-4980 (x1015)
Dave Zellers, NW Commission [email protected] 814.677.4800 x112
April 21, 2015
Thank you