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Ohio Manufacturing and The Ohio Manufacturing Extension Partnership Program (MEP)

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Page 1: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

Ohio Manufacturing and The Ohio Manufacturing

Extension Partnership Program (MEP)

Page 2: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased
Page 3: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

12/10/2019 3

Page 4: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

TIME TO EXERCISE…

MANUFACTURING AND MEP FACTS QUIZ

Page 5: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

MEP PROGRAM IN SHORT

Page 6: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

MEP PROGRAM EVOLUTION

Page 7: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

ROI OF MANUFACTURING EXTENSION PARTNERSHIP ECLIPSES 14:1The National Institute of Standards and Technology’s (NIST) Hollings Manufacturing Extension Partnership (MEP) Program generates

a sizeable financial return on investment for the federal government, according to a recent study by the Michigan-based W.E.

Upjohn Institute. The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in

increased federal personal income tax, a ROI of roughly 14.4:1 according to Upjohn researchers Jim Robey, Randall Eberts, Brian

Pittelko, and Claudette Robey. Based on direct, indirect, and induced jobs generated by projects at MEP centers, the authors also

find evidence that total employment in the U.S. was nearly 240,000 jobs higher than it would have been without the program.

Additional economic impacts of the program identified by Upjohn include personal income that is $15.0 billion higher and overallGDP is nearly $25.0 billion greater. In a previous study, Upjohn economist Tim Bartik found that customized business services such as manufacturing extension can be up to 10 times as effective for job creation as traditional tax incentives.The study, The National-Level Economic Impact of the Manufacturing Extension Partnership (MEP), uses an economic impact model developed by Regional Economic Models Inc. (REMI) to forecast the indirect and induced effects of reported increases in jobs, sales, cost savings, and investments by MEP clients.

This return is slightly smaller than the 14.5:1 ROI identified in last year’s study (based on FY 2017 data), but considerably higher than the 8.7:1 ROI identified in the original study (based on FY 2016 data).

Page 8: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

• The Ohio Manufacturing Extension Partnership (MEP) works with manufacturers to help them create and retain jobs, increase profits and save time and money.

• Ohio MEP serves as a trusted business advisor, focused on solving challenges and identifying opportunities for growth.

• Ohio MEP is part of a statewide and national network.

• The critical areas of services are operational support and quality, workforce, advanced manufacturing, and cybersecurity.

WHAT IS MEP?

Page 9: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

https://vimeo.com/261192892

Driving productivity, growth, innovation and global competitiveness for Ohio’s manufacturers

OHIO MANUFACTURING EXTENSION PARTNERSHIP (MEP)

Page 10: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

Operational Support and Quality • Kaizen• Kanban• Project Management• Lean Coaching, Leadership and Enterprise• Standard Operating Procedures• Green/Yellow/Black Belt• Process Mapping• Set up Reduction/ SMED• Waste Reduction• Six Sigma/Lean & 5S• Supply Chain Development• Statistical Process Control• Root Cause Analysis• Value Stream Mapping• ISO 9001, 14001, 17025, 18001, 22001,29001, 50001• AS 9100, ASME, API, TS16949• FMEA• ISO and Quality Compliance, Consulting and Policy/Procedure Development• Safety Compliance, Training, ConsultingPolicy/Procedure Development • OSHA Mock Audit

Workforce• Leadership Development• Five Behaviors of a Cohesive Team• Facilitation Skills• Time Management• Change Management• Coaching• Leadership in a Lean Culture• Everything DISC• Career paths of internship, apprenticeship and incumbent worker training• Sexual Harassment• HR Compliance, Consulting and Policy/Procedure Development• Train-the-Trainer• Strategic Planning

Cybersecurity• Evaluate Cybersecurity Risks• Investing Cybersecurity Resources• Determine Areas of Vulnerability• Understand Organization’s Cybersecurity Risk

OHIO MEP SERVICES

Advanced Manufacturing • Additive manufacturing• Automation• Robotics• IoT and Industry 5.0 • Product Design and Development• Commercialization Management• LEAN Product Development• Growth Coaching• Tech Transfer• Testing and Validation• Innovation Engineering

Page 11: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

1. Worked with a customer to reduce changeover time on a major product line from 16 to 11 days saving them $300,000 per day

2. Implementing automation for labelling of food bottles for a small food manufacturer

3. Created standard operating procedures for a client who has had 15% of their workforce retire and is implementing new production system

4. Developed the next generation of manufacturing leaders through intensive, customized supervisor training

5. Offered Green Belt training to create internal CI champions who drive process improvement

EXAMPLE OHIO MEP PROJECTS

Page 12: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

OMEGA REGION MEP CLIENTS A P Green Industries

ACI Services Inc

AK Steel Corporation

Allied Machine & Engineering Corp

AMG Vanadium, Inc

Amish Wedding Foods, Inc.

AquaBlue, Incorporated

Around the World Gourmet Inc

Barium & Chemicals Inc.

Bi-Con Services, Inc.

Boardman Steel, Incorporated

Buckeye Fabric Finishers, Inc.

Buckeye Seating

Bunker Hill Cheese Co., Inc.

Carlson Aircraft

Casting Solutions, LLC

Centria, Inc.

Chappell & Zimmerman, Incorporated

Coblentz Distributing, Inc.

Colgate-Palmolive Company

Columbiana Boiler Company, LLC

Compco Quaker

Convertapax

Creative Packaging

Crow Works

Daniel's Amish Collection, LLC

Deflecto, LLC

Detroit Diesel Remanufacturing-East, Inc.

DK Manufacturing, Inc

Eleet Cryogenics

Encore Industries, Inc.

Famous Industries, Inc.

Federal-Mogul Corporation

Fryburg Door, Inc.

George P. Frueh Company

Goss Supply Company

Gradall Industries Inc.

Growmark FS, LLC

Grupo Bimbo

Haltec Corp

Holmes Cheese Co

Humtown Pattern Company

Jomack Ltd

Jones Metal Products

Kellogg Company

Kerry

Leyshon Miller Industries, Llc

LMI Custom Mixing, LLC

Marlite, Inc.

Mastercraft Manufacturing, Incorporated

McWane, Inc

Meteor Sealing Systems

MFM Building Products Corporation

Miller Studio (MSI)

Millersburg Ice Company

Mount Eaton Pallet Co Ltd

New Wayne, Inc.

Nilodor, Inc.

OK Coal & Concrete Company

Ohio Fabricators

Ohio Stoneware, LLC

Owens-Brockway Glass Container Inc.

Pennex Aluminum

Picoma

Porter Welding Inc

Primary Packaging, Inc.

Rexam

Rich Industries, Inc

Rick Hawkins Lumber Company, Inc.

Robin Industries, Inc.

Skyline Corporation

Steel Valley Tank

The National Colloid Company

Trico Enterprise LLC

Troyer Cheese

United Dairy Inc.

Wayne-Dalton Corp

Weaver Barns, Ltd.

Weaver Leather

White Castle

Winesburg Chair Company, Ltd.

Yoder Lumber

Yoder's Woodworking

Yutzy Woodworking, Ltd.

Zarbana Industries

Page 13: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

36Workforce

45Quality Product Suite

103Technology Services Suite

Projects that assist client firms with the implementation of management systems that help them achieve a defined industry-specific or general quality certification or standard.

Projects in this category include but are not limited to ISO, QS, AS, and Six Sigma; other recognized industry standards; and prizes such as Shingo or Baldrige.

Projects that involve working with clients to identify, develop, and diffuse technology and new products within their company.

Projects in this category include identifying technologies for client companies (tech scouting), working with federal or university resources to identify technologies needed by specific client companies, working with SBIR awardees to develop new products and technologies, developing and prototyping new products, lean product development, dealing with intellectual property (IP) issues, patents, and licensing.

Projects that involve working with clients to recruit, retain, and/or develop human resources

Projects within this category might include: training and education partnerships, regional collaborations for workforce development and job growth, gathering labor market information about skill demands, identifying valuable skill credentials, providing apprenticeships and internships

MEP TOP PROJECTS

Page 14: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

OHIO MEP NEEDS ASSESSMENT SURVEY

Size by Employee:20 or less 26.7%21-50 23.9%51-100 18.6%101-250 18.6%251 + 12.1%

Years in Operation:Less than 4 4.9%4-15 Years 11.9%16 – 99 Years 74.3%100 + Years 8.9%

497 verified responses from all around Ohio

Top 5 Sectors:Fabricated Metal 28%Machinery 14%Plastics & Rubber 10%Chemical & Coatings 8%Transportation Equip 7%

Page 15: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

OHIO MEP NEEDS ASSESSMENT SURVEYKey Take-aways• Growth in manufacturing was strong last year and is anticipated to be

strong again next year

• Except for basic automation, adoption of new technologies by small manufacturers is very slow

• Shortage of Talent continues to hamper growth

• Governmental regulation concerns have decreased, shifting to negative impacts of tariffs

Page 16: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

NAM MANUFACTURERS’ OUTLOOK SURVEY

Primary Current Business Challenges, Third Quarter 2019

Expected Growth of Manufacturing Activity, 2018–2019

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MANUFACTURING FACTS

FACT: Ohio ranked second nationally in the number of new site selections in the past 5 years, bested only by Texas.

FACT: Typically about one-half of Ohio’s new site selection projects are manufacturing projects

Page 23: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

OHIO MANUFACTURING & JOBSMANUFACTURING MEANS LARGE AND SMALL BUSINESSES IN OHIO

Number of Ohio manufacturing firms bynumber of employees

Distribution of Ohio manufacturing firms bynumber of employees (2015)

Page 24: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

MANUFACTURING EMPLOYMENT

715,200 (2015)OMEGA Region

35,579

Page 25: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

Industry sector Total all wages (in thousands)

Average annual wage

Manufacturing $39,916,641 $58,190

Health care and social assistance $34,792,308 $44,668

Professional and technical services $17,851,072 $71,206

Wholesale trade $15,706,373 $66,643

Finance and insurance $15,394,917 $72,160

Retail trade $15,379,879 $26,935

Management of companies and enterprises $14,365,017 $103,151

Construction $11,196,177 $55,887

Administrative and waste services $10,751,235 $32,992

Transportation and warehousing $8,455,448 $47,000

Accommodation and food services $7,183,078 $15,545

Information $4,644,402 $64,862

Other services, except public administration $4,572,945 $29,871

Educational services $3,315,328 $34,975

Real estate and rental and leasing $2,784,906 $44,558

Arts, entertainment and recreation $2,448,012 $31,752

Utilities $1,788,587 $93,156

Mining, quarrying, and oil & gas extraction $944,704 $68,460

Agriculture, forestry, fishing and hunting $513,534 $32,260

OHIO ANNUAL PAYROLL BY INDUSTRY SECTOR

(2015)

Page 26: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

THE FOUR (FIVE?) INDUSTRIAL REVOLUTIONS

http://www3.weforum.org/docs/WEF_4IR_Beacons_of_Technology_and_Innovation_in_Manufacturing_report_2019.pdf

Page 27: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

SURVEY-MANUFACTURING 4.0

A March 2019 survey of 230 executives of mid-market manufacturers across the U.S., found very little action toward implementing 4.0 change into their companies. Specifically, BDO USA, a professional services firm providing companies assurance, tax and advisory services, found 99 percent of the executives interviewed were “at least moderately familiar” with Industry 4.0 — yet only 5 percent of them are currently implementing or have implemented an Industry 4.0 strategy.

Page 28: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

KEY TECHNOLOGY MEGATRENDS TRANSFORMING PRODUCTION

http://www3.weforum.org/docs/WEF_4IR_Beacons_of_Technology_and_Innovation_in_Manufacturing_report_2019.pdf

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RESPONDENT PROFILE

Fahlgren Mortine and iModerate/20|20 Research 2018

Ethnicity

White

Black

Asian/Pacific Islander

Hispanic

Other

Q1. What is your age?, N=269. Q3. Which of the following best describes you?, N=269. Q10. Now turning to industries in the U.S., which of the following industries best describes your current employment? If you are not

employed please indicate so., N=219.

Current employment

Manufacturing 27%Technology 6%Development (software) 1%Retail 6%Utilities 0%Transportation/Distribution %3

Sales 4%Healthcare/Medical 15%Military 1%Government 3%Banking/Finance 4%Education 7%Construction 5%Engineering/Architecture 1%Food service/Hospitality 5%Legal 1%Something else %11

29%%31

%29

12%

18-24 25-34 34-44 45-54

Age

Page 32: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

Subgroup Favorable (Top 2 Box)

Total Sample N=269 70%

Millennial WomenN=79

%57

Gen X WomenN=53

85%

Millennial MenN=81

70%

Gen X MenN=56

%73

WhiteN=228

70%

Non-whiteN=41

71%

Employed N=219

%76

Students N=49

41%

MANUFACTURING FAVORABILITY

BY SEGMENT

Initial perceptions of the manufacturing

industry are 7 out of 10 (70%) overall. Gen X

women (85%), Gen X Men (73%) have the

most positive first impressions.

Students (41%) and millennial females

had the lowest initial impression of (57%)

manufacturing.

Page 33: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

Total Sample Findings

Agree (Top 2 Box)

Q23 Based on what you know, please indicate whether you agree or disagree with the following statements. Subgroup: 18-34 base N=191; 35-54 N=109.

57%

%66

%81

%87

Manufacturing jobs occur in a safe andclean enviornment

The manufacturing industry in the U.S. iscompetitive on the global stage.

Manufacturing jobs fuel our nation'seconomy.

The U.S. manufacturing industry is a vitalsource of living-wage jobs.

Subgroup Findings: Millennials v. Gen X

Agree (Top 2 Box)

60%

63%

%88

%91

56%

68%

%76

%85

Manufacturing jobs occur in a safe andclean enviornment

The manufacturing industry in the U.S.is competitive on the global stage.

Manufacturing jobs fuel our nation'seconomy.

The U.S. manufacturing industry is avital source of living-wage jobs.

18-34

35-54

VITALITY OF MANUFACTURINGHIGHER AMONG GENX

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Total Sample N=269 ”Agree”

Q24. Please indicate whether you agree or disagree with the following statements. Total Sample,

N=269.

%40

%40

%43

58%

My parents and familymembers encouraged me

High school administratorshave encouraged me

My local school systemencouraged its students

I would encourage my childto pursue a career in

manufacturing

Subgroup I would encourage my child

to pursue a career in manufacturing.

MillennialWomenN=79

%51

Gen X WomenN=53

%59

Millennial MenN=81

68%

Gen X MenN=56

54%

WhiteN=228

%57

Non-whiteN=41

63%Total Sample, N=269

ENCOURAGEMENTINTENDED MORE THAN

RECEIVED

Page 35: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

STILL (SOMEWHAT) DANGEROUS AND DIRTY

Page 36: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

68%

59%

%62

%61

54%

30%

36%

36%

I would encourage my child to pursue acareer in manufacturing

High school administrators have encouragedme

My K-12 local school system encouraged itsstudents

My parents and family members haveencouraged me

Gen X Men

Millennial Men

Millennial men are more likely to have had more encouragement from their family, friends, and school administrators when it comes to a career in manufacturing.

% of Millennial men say they would 68“encourage my child to pursue a career in manufacturing.”

Q24. Please indicate whether you agree or disagree with the following statements. Subgroup:

Millennial Men N=81, Gen X Men N=56.

MILLENNIAL VS. GENXMENEARLY INFLUENCERS HAVE IMPACT

Page 37: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

83%

%89

75%

%84

78%

%79

8 %0

82%

86%

%77

%70

84%

%75

84%

Manufacturing jobs pay really well.

Manufacturers have one of the highestpercentages of workers who are eligible forhealth benefits provided by their employer

U.S. manufacturing jobs are stable and provideas much job security as other jobs in other

industries.

The manufacturing industry in the U.S. is high-tech.

Manufacturing jobs afford a considerable work-life balance

Manufacturing allows you to create with yourhands

Manufacturing spurs innovation and contributesto the social good

Gen X Men

Millennial Men

Q25. Below are reasons some people have given in support of a career in the manufacturing industry in Ohio. For each, please indicate if it is a very convincing, somewhat convincing, not too convincing, or not at all convincing reason to consider a career in manufacturing. Subgroup, Gen X N=56, Millennial Men N=81.

TECH RESONATES

WITH GENX

MILLENNIAL

VS.GENXMEN

Page 38: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased
Page 39: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

HOW TO PARTNER WITH MEP?✓Events✓Referrals✓Speaking engagements/presentations✓Plant tours✓BRE visits

Page 40: Ohio Manufacturing and The Ohio Manufacturing Extension ... · The $140 million invested in MEP during FY 2018 by the federal government generated more than $2.0 billion in increased

THANK YOU!

Dorinda Byers

[email protected]

Ohio Manufacturing Extension

Partnership at Ohio State University

South Centers

Questions?

Susan Foltz

[email protected]