ohio manufacturing and the ohio manufacturing extension ... · the $140 million invested in mep...
TRANSCRIPT
Ohio Manufacturing and The Ohio Manufacturing
Extension Partnership Program (MEP)
12/10/2019 3
TIME TO EXERCISE…
MANUFACTURING AND MEP FACTS QUIZ
MEP PROGRAM IN SHORT
MEP PROGRAM EVOLUTION
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).
• 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?
https://vimeo.com/261192892
Driving productivity, growth, innovation and global competitiveness for Ohio’s manufacturers
OHIO MANUFACTURING EXTENSION PARTNERSHIP (MEP)
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
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
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
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
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%
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
NAM MANUFACTURERS’ OUTLOOK SURVEY
Primary Current Business Challenges, Third Quarter 2019
Expected Growth of Manufacturing Activity, 2018–2019
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
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)
MANUFACTURING EMPLOYMENT
715,200 (2015)OMEGA Region
35,579
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)
THE FOUR (FIVE?) INDUSTRIAL REVOLUTIONS
http://www3.weforum.org/docs/WEF_4IR_Beacons_of_Technology_and_Innovation_in_Manufacturing_report_2019.pdf
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.
KEY TECHNOLOGY MEGATRENDS TRANSFORMING PRODUCTION
http://www3.weforum.org/docs/WEF_4IR_Beacons_of_Technology_and_Innovation_in_Manufacturing_report_2019.pdf
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
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.
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
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
STILL (SOMEWHAT) DANGEROUS AND DIRTY
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
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
HOW TO PARTNER WITH MEP?✓Events✓Referrals✓Speaking engagements/presentations✓Plant tours✓BRE visits
THANK YOU!
Dorinda Byers
Ohio Manufacturing Extension
Partnership at Ohio State University
South Centers
Questions?
Susan Foltz