Manufacturing In Missouri

Russell HumphreyArea Business ManagerMissouri Enterprise

Slide 2

What is Manufacturing?

Wikipedia: Manufacturing is the production of merchandise for use or sale using labor and machines, tools, chemical and biological processing, or formulation.

Finished products, subassemblies, or component materials may all be manufactured.

US is now the 2nd largest manufacturer in the world

US manufacturing productivity has increased 2.5X in 30 years

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2016 Largest Manufacturers Based in the US (Industry Week). 2015 rank in ( )

1.) Exxon Mobil (1)2.) Apple (3)3.) GM (5)4.) Ford (7)5.) Chevron (2)6.) GE (6)7.) HP (9)8.) Phillips 66 (4)

9.) Boeing (12)10.) Microsoft (13)11.) Valero (8)12.) IBM (11)13.) P & G (14)14.) Philip Morris (16)15.) Marathon Oil (10)

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Why Might Manufacturing Interest Students? Higher than average wages

3,500,000 new mfg hires needed in next 10 years

Projected gap of 2,000,000 qualified hires— “skills gap” (computer, problem solving, math)

2 STEM jobs per unemployed STEM graduate

Does not necessarily require a four-year degree

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What are skills that modern manufacturers are looking for?

• Understanding of hydraulic, pneumatic, mechanical and electrical systems

• Work with computerized systems/coding• Read manufacturing blueprints• Operate and program automated manufacturing

systems (PLCs and CNCs)

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Why is manufacturing important to the USA?Big - $2.1 Trillion (up 27% from 2009) Productive - 12.3% of GDP from 9% of employmentLucrative - 17.9 million jobs – avg. wages $24.89/hourInteresting - Manufacturing does 3/4 of all private R & DGood for USA - 61% of all exports are manufactured

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Why is manufacturing important to Missouri?

Over 250,000 employees working in 6,500 manufacturers in MOAverage manufacturing compensation $67,400Over 435,000 indirect mfg. jobs in MOManufacturing has large economic impact per job

(11% of jobs create 13.9% of SDP)Jobs pay well above state average

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What Are Some Disruptive Technologies?

Additive Manufacturing (3-D Printing)

Next Generation Robotics

Internet of Things (IoT)-$11.1 trillion industry by 2025,

which currently is more than 10% of the world economy today.

Coding/Programming

Slide 9

Largest Manufacturing Sectors in Missouri by Employment

Food 38,800 employees

Transportation 38,000 employees

Fabricated Metal Products 30,400 employees

Machinery Manufacturing 25,700 employees

Chemicals 18,600 employees

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Manufacturing Exports From Missouri

$14.1 Billion

About 39.5% of mfg. goods are exported

Largest Export Partners:

Canada Mexico ChinaJapanGermany

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Largest Categories of Mfg. Exports

Transportation Equipment

Chemicals

Food Products

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Issues For Manufacturers

1.) Hiring skilled employees

2.) Developing new products and markets

3.) Need competitive costs & tax rates

4.) Regulation cost ($19,564/employee) (NAM)

Reducing energy usage (manufacturing uses 1/3 of US energy)

Missouri Enterprise

Russell HumphreyArea Business Manager573.837.2554

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Our Mission: Help Missouri Manufacturers Succeed

Missouri Affiliate of the nationwide MEP program since it began in 1983

Public-Private Partnership (support from NIST and MO DED)

30 people statewide in 6 offices

Evaluated according to the financial impact of the work we do

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What Does Missouri Enterprise Do?

Focus - Work primarily with Small and Medium-Sized Manufacturers (6,500 in Missouri)

Increase topline sales and bottom line profits

1.) Deliver Training and Hands-On Projects

2.) Networking Resource for Companies

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Primary Areas of Focus

Continuous Improvement

Business Growth

Workforce Development

Sustainability

Supply Chain Management

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Continuous Improvement

Lean Manufacturing / Continuous ImprovementNot a method for reducing headcount

Food Safety-HAACP, FSMA, BRC, SQF

ISO (Quality, Environment, Safety, Food Safety, Info Security)

Six SigmaRoot cause analysis, data-driven problem solving

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Business Growth

Marketing Plans

Marketing Research/Customer Surveys

Competitive/Industry Analysis

Product Design

Strategic Planning

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Workforce Development

Continuous Improvement Training

Supervisor Training (TWI Model)

ISO Training

Six Sigma Training

APICS CPIM Training (Production/Purchasing/Inventory)

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Sustainability

Energy Audits

ISO 14001 (Environmental), ISO 50001 (Energy),

ISO 27000 (Info Security)

Safety Assessments and Training

Energy Audits for USDA REAP Grant

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Supply Chain Management

Material Purchasing, Scheduling and Inventory Control

Production SchedulingWarehouse LayoutFinished Goods Inventory LevelsShipping Logistics

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Recent MEP Emphasis Areas

Leadership for Continuous Improvement For first level supervisors. Turn “firefighters” into proactive leaders – Manage for Daily Improvement

Food Safety – FSMA, HAACP, BRC, SQF, Safe Feed/Safe Food

SCM Strategic Planning

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Partners and Resources for Manufacturers

Small Business and Technology Development Center (SBTDC)Missouri Department of Economic DevelopmentTrade Act Adjustment Center (TAAC)Procurement Technical Assistance Center (PTAC)City and County Economic Development GroupsRegional Planning CommissionsWorld Trade CenterTech 44 – The Ideas HighwayMissouri Association of ManufacturersAssociated Industries of Missouri (AIM)

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Typical Engagement with Missouri EnterpriseWhere can we assist?1.) Lead or Facilitate Projects2.) Offer Objective, 3rd Party Perspective3.) Specialized Skills or Training

Project Structure:1.) Assess2.) Plan3.) Implement

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Questions?

Thank you for inviting me to be here today

Thank you for coming out today to celebrate manufacturing

Russell Humphrey573.837.2554