Category Archive: Next Generation Manufacturing

Next Generation Manufacturer Newsletter – May 2013 (admin posted on May 7th, 2013 )

Events for Manufacturers
May 2013

Attend one or all of MassMEP’s events and you will learn and gain real-world knowledge that you can immediately apply in your company. Below is a sampling of some of our upcoming events. For a complete list of course descriptions and registration information on all of MassMEP’s events, visit the MassMEP web site.

MassMEP Programs & Events
For complete details about these programs for manufacturers, visit the MAC Events Calendar.

Partner Events

April 2013: Next Generation Manufacturer Newsletter…

From the Desk of Jack Healy
The Demand of More for Less Falls on Small Manufacturers’ Shoulders. Jack Healy.

Workforce Strategies
Manufacturing Skills Academy Network News. MSAN.

Critical Skills Assessment: Identifying What Needs to be Taught and to Whom. Critical Skills Assessment.

Business Owners’ Corner
You’ve Got a New Product Idea. Scared S**tless? Now What? Part 3. The Inventing Life.

Partner Highlight
Mass Growth Capital. Mass Growth Capital.

——————–

About the Manufacturing Advancement Center
The Next Generation Manufacturer Newsletter covers the business of manufacturing in New England. Running a manufacturing business requires attention to countless details. To compete in this new, global economy, you must pay attention to the entire business process — from front office marketing and accounting, to back end inventory management. The Manufacturing Advancement Center is here to guide you in your quest for continuous improvement throughout the enterprise. For more information, see http://www.massmac.org

From the Desk of Jack Healy (admin posted on January 24th, 2013 )

Facing the New Challenge of Growth Through Innovation

Jack Healy, MassMEP Director of Operations

Jack Healy, MassMEP Director of Operations

By Jack Healy, Director of Operations, MassMEP jackh@massmep.org

“Finding ways to help smaller firms to innovate could help many of them remain competitive and expand their operations.” – 2012 Staying Power II Report Card on Manufacturing

Over the past decade, the continued job losses in US manufacturing have been attributed to a variety of causes — productivity increases, production offshoring by large manufacturers, even a general lack of US manufacturing growth. The good news is that we have seen a leveling off of job losses over the past two years and this is now reflected in our state’s manufacturing Gross State Product (GSP).

Manufacturing Gross State Product Increases
Massachusetts’ manufacturing GSP for 2000 to 2007 was mired in a slow growth mode, increasing by only 1.3%.  From 2010 to 2011, Massachusetts manufacturing Gross State Product increased by 20.9%! What happened?

This turn-around was engineered by manufacturers remaining committed to continuous improvement activities to boost productivity, innovation, and, subsequently, competitiveness in their respective sectors.  The “2012 Staying Power II report card on manufacturing1 found that the initiatives pursued over the past five years to grow manufacturing operations in Massachusetts produced results.

  • Nearly five out of six firms (83%) invested in new manufacturing equipment.
  • While investments are certainly part of the story, half of all firms (50%)invested in education and training of their employees in order to keep their skills current with new technology.
  • Just about half of all firms (47%) expanded their sales and support efforts.
  • Almost the same proportion invested in product research and development, including more than one third (34%) of the over 5,000 small manufacturing enterprises (under 20 employees) and nearly three quarters (72.9%) of larger firms (over 101 employees).

The Staying Power II study validated these findings when they surveyed manufacturers on the use of borrowed funds. They found that 16.8% of the small manufacturing enterprises (20-100 employees) and 30.4% of the larger manufacturers (over 101 employees) used their borrowed funds to support their research and development initiatives. This finding came as a surprise in that most small manufacturers have traditionally managed with fiscal agility, i.e., by making small bets. While few manufacturers suffer any shortage of ideas, their fear of risk has always minimized their ability to turn concepts into cash. It is reassuring to see that a significant number of small manufacturers have learned the lesson of 2009 — that there is not enough business to go around and in order to get it you have to work at it.

Because innovation is “so critical to the survival and prosperity of Massachusetts manufacturing,” the Staying Power survey probed extensively about the type of innovations manufacturers were utilizing. The results of this are contained in the following “Innovative Activity and Innovation Score.”

For anyone who wishes to assess their own firm’s innovation performance, grade your company according to the above and then benchmark against the survey participants, as follows:

Survey Innovation Score

Innovation Level

0-10

Very low

11-20

Low

21-35

Average

36-50

High

51 +

Very High

Innovation Index and Increased Production
One of the major survey findings was that only 29% of the firms who scored “very low” on the Innovation Index expected to increase their production levels over the next five years.  This is in sharp contrast to the 88% of the firms who scored “High” or “Very High” on the Innovation Index; they expect to increase production over the next five years.

Of all the firms in this manufacturing survey, the firms with fewer than 20 employees, who represent over 72% of all manufacturers  in the state, had only 6% of their firms with “Very High” Innovation scores.  Over one third (35%) of these firms were in the “Very Low” category, with more than half (56%) scoring either “Very Low” or “Low” on the Index.

Significantly, the survey indicates that “finding ways to help smaller firms to innovate could help many of them remain competitive and expand their operations.”

Continuous Improvement Enables Innovation
Over the past decade, the small manufacturing community has focused on implementing continuous improvement techniques such as Lean, Six Sigma, etc. This acceptance and application of the continuous improvement programs was an enabler for manufacturers of all sizes to deal with the changes and market demands of the last decade. However, market demands change and today we find many of today’s large manufacturers are asking their suppliers to move up the technology ladder.  This change, in turn, offers the small manufacturing community the opportunity to compete on innovation rather than on price, as well as provides a significant opportunity to grow their respective companies.

Manufacturers looking to access new technologies in order to grow their companies can find assistance from the MassMEP. Contact Greg King at 508-831-7020.

1. Prepared by Northeastern University, Kitty & Michael Dukakis Center for Urban and Regional Policy.

From the Desk of Jack Healy (admin posted on January 9th, 2013 )

A Story of Knowing Customer Requirements & Exceeding Expectations

Jack Healy, MassMEP Director of Operations

Jack Healy, MassMEP Director of Operations

Conventional wisdom at the time was that only a small segment of dissatisfied customers ever complained as few believed there would be any reaction to the complaint.  Nevertheless, smart companies took the approach that those who did complain provided a chance to rectify problems and turn opinions around before they could affect other consumers.  As a result, consumer service departments were focused on answering and rectifying consumer complaints.

Since LEGO was spending millions of dollars in TV advertising to build its consumer base, there was a real sensitivity in this startup to the high cost of customer acquisition and the need to retain every consumer. A complete Consumer Services department was established, even with minimal sales in the first year. We found that consumers of LEGO, both young and old, had a passion to share their experience with the product. We started to receive hundreds of letters endorsing product along with their ideas for improvements and future products.

Many of these endorsements were used as part of our sales presentations. They made it easier to increase distribution channels as few purchasing agents could say “no” to a product that had such strong customer support.  The consumers helped to sell the product. The letters received soon ran into the thousands and were closely monitored. They played an important and continuing role in shaping future product offerings.

These testimonials were important input that the LEGO Group companies continue to promote by asking for customer feedback through their web sites, loyalty VIP clubs, and a myriad of sales collateral materials.

All of this does seem to be in direct contrast to the general manufacturing sector where customer input is rarely sought unless you are an ISO registered company (which requires that you do so).  The recent study of the Massachusetts manufacturing industry, Staying Power II: A Report Card on Manufacturing, completed by Professor Barry Bluestone of the Dukakis Center for Urban and Regional Policy at Northeastern University, summed up the industry’s perception relative to customer demands in the following table.

MASSMAC Image

MASSMAC Image

This summary lists the changes expected to occur over the next five years by the surveyed manufacturers. Across all firms, nearly 46% responded that to a “Large Extent” or “Great Extent” their customers would be coming back to them asking for lower prices. The manufacturers also believe that customers will not only demand lower prices but improved service delivery and better product quality. Only one in eight did not expect greater pressure on service and quality, while 40% of the firms felt that there would be a substantially increased demand for better service, and 36% suggested a very strong demand for quality.

About a quarter of all firms (27%) expect grater pressure to increase the use of new technology and 24 % expect that this would lead to increases in productivity.

The study also found that to a “Large Extent” or “Great Extent,” 51.3% of the companies over 100 employees, expect substantial increases in new technologies. These medium to large size companies are representative of the Original Equipment Manufacturer (OEM) population. This information gives supply chain manufacturers an early indication that they will be required to understand how their OEM’s will innovate and evolve over the forthcoming years. Support must be provided movement into new technologies. Changes in technology will take much longer to react to, plan for, and support than the previous requirements of price, quality, and delivery. Manufacturers will need to develop and implement plans that coordinate external customer feedback and required improvements to their own technology. The one thing that is certain that over the next five years is that businesses will continue to evolve and change, and delighting the customer will be essential for any enterprise in a slow growth economy.

What does it take to delight a customer? Let’s return to the LEGO example. It has evolved into responding to thousands of phone calls, e-mails, letters – all in ONE DAY.  Watch the video demonstration of how LEGO delights its customers, exceeds expectations, and builds a sustainable company.

VIDEO: Why LEGO is the BEST Company in the World

Employee Training Success Stories: Adhesive Applications Boosts Business, Jobs (admin posted on December 11th, 2012 )

Easthampton Company Sticks to Strategy of Improving Skills of Workers

By Karen Myhaver, MassMEP
First in a series of stories about how Massachusetts companies are using the WorkforceTraining Fund to boost productivity and become globally competitive. The Workforce Training Fund Program was established in 1998 to help employers train current employees and new hires.

First in a series of stories about how Massachusetts companies are using the Workforce Training Fund to boost productivity and become globally competitive. The Workforce Training Fund Program was established in 1998 to help employers train current employees and new hires.

Adhesive Applications of Easthampton is a manufacturer of pressure-sensitive adhesive tapes and films. In March of 2007, the company was investigating ways to improve its performance as a company, position itself to be more competitive domestically, and keep foreign competition at bay.

Adhesive Applications discovered that it could apply for Workforce Training Grants available from the commonwealth.  Bill Baldino of Associated Industries of Massachusetts and Jim Gusha of the Massachusetts Manufacturing Extension Partnerhsip guided the company through the grant application, planning, administration and reporting process.

“Working with AIM and Mass MEP made the process uniquely simple,” said Wayne Tangle, Adhesive Applications President. “They were instrumental in ‘walking us through’ the grant process, explaining the purpose of each inquiry within the application and helping us coordinate the required information to best present our goals in utilizing the grant monies.”

The two organizations subsequently helped Adhesive Applications with programs and training modules that allowed the company to make improvements for its employees and to the manufacturing process.

“Over the course of the training period, our associates received constructive, professional information that they have utilized to become better managers and supervisors. The results have allowed us to be a healthier company that communicates effectively, up and down the organization.  This has enhanced our ability to meet growing business demands over the last couple of years,” Tangle said.

“All training and interaction took place within the Adhesive Applications facility for associates integral in meeting the goals of being more competitive and growing our business. The results have yielded a noticeable increase in business whereby we have invested in additional production equipment and personnel and expanded our operation to meet the increase in demand.”

A Story of Knowing Customer Requirements & Exceeding Expectations (admin posted on November 28th, 2012 )

Jack Healy, MassMEP Director of Operations

Jack Healy, MassMEP Director of Operations

From the Desk of Jack Healy

A Story of Knowing Customer Requirements & Exceeding Expectations

By Jack Healy, Director of Operations, MassMEP jackh@massmep.org

Some years ago I had the opportunity to join a micro startup for an international company. The goal was to reestablish a brand that had failed using a new corporation that had the U.S. license for the product for the prior 10 years.  This new company, LEGO Systems Inc., was a typical consumer-driven enterprise with a focus on establishing brand acceptance for LEGO Brand building bricks.  With such an outward focus, it was natural that the supporting functions of this start-from-scratch company were established as needed vs. a preplanned part of the system.  One such function that was immediately put together was Consumer Services.

Conventional wisdom at the time was that only a small segment of dissatisfied customers ever complained as few believed there would be any reaction to the complaint.  Nevertheless, smart companies took the approach that those who did complain provided a chance to rectify problems and turn opinions around before they could affect other consumers.  As a result, consumer service departments were focused on answering and rectifying consumer complaints.

Since LEGO was spending millions of dollars in TV advertising to build its consumer base, there was a real sensitivity in this startup to the high cost of customer acquisition and the need to retain every consumer. A complete Consumer Services department was established, even with minimal sales in the first year. We found that consumers of LEGO, both young and old, had a passion to share their experience with the product. We started to receive hundreds of letters endorsing product along with their ideas for improvements and future products.

Many of these endorsements were used as part of our sales presentations. They made it easier to increase distribution channels as few purchasing agents could say “no” to a product that had such strong customer support.  The consumers helped to sell the product. The letters received soon ran into the thousands and were closely monitored. They played an important and continuing role in shaping future product offerings.

These testimonials were important input that the LEGO Group companies continue to promote by asking for customer feedback through their web sites, loyalty VIP clubs, and a myriad of sales collateral materials.

All of this does seem to be in direct contrast to the general manufacturing sector where customer input is rarely sought unless you are an ISO registered company (which requires that you do so).  The recent study of the Massachusetts manufacturing industry, Staying Power II: A Report Card on Manufacturing, completed by Professor Barry Bluestone of the Dukakis Center for Urban and Regional Policy at Northeastern University, summed up the industry’s perception relative to customer demands in the following table.

MassMAC Image

This summary lists the changes expected to occur over the next five years by the surveyed manufacturers. Across all firms, nearly 46% responded that to a “Large Extent” or “Great Extent” their customers would be coming back to them asking for lower prices. The manufacturers also believe that customers will not only demand lower prices but improved service delivery and better product quality. Only one in eight did not expect greater pressure on service and quality, while 40% of the firms felt that there would be a substantially increased demand for better service, and 36% suggested a very strong demand for quality.

About a quarter of all firms (27%) expect grater pressure to increase the use of new technology and 24 % expect that this would lead to increases in productivity.

The study also found that to a “Large Extent” or “Great Extent,” 51.3% of the companies over 100 employees, expect substantial increases in new technologies. These medium to large size companies are representative of the Original Equipment Manufacturer (OEM) population. This information gives supply chain manufacturers an early indication that they will be required to understand how their OEM’s will innovate and evolve over the forthcoming years. Support must be provided movement into new technologies. Changes in technology will take much longer to react to, plan for, and support than the previous requirements of price, quality, and delivery. Manufacturers will need to develop and implement plans that coordinate external customer feedback and required improvements to their own technology. The one thing that is certain that over the next five years is that businesses will continue to evolve and change, and delighting the customer will be essential for any enterprise in a slow growth economy.

What does it take to delight a customer? Let’s return to the LEGO example. It has evolved into responding to thousands of phone calls, e-mails, letters – all in ONE DAY.  Watch the video demonstration of how LEGO delights its customers, exceeds expectations, and builds a sustainable company.

VIDEO: Why LEGO is the BEST Company in the World

Video Blog | The Future of Manufacturing in Massachusetts (admin posted on November 21st, 2012 )

Barry Bluestone, Professor Professor of Political Economy at Northeastern University, spoke to the AIM Public Affairs Council and Board of Economic Advisors Friday about his new study:Staying Power II: A Report Card on Manufacturing in Massachusetts. 

Taking the Next Step to Develop Manufacturing Skills (admin posted on November 14th, 2012 )

Jack Healy, MassMEP Director of Operations

Jack Healy, MassMEP Director of Operations

By Jack Healy, Director of Operations, MassMEP jackh@massmep.org

Twenty five years ago, I had the opportunity to visit two Japanese automotive transplants located in Anna, Ohio and Lexington, Kentucky to study their very productive manufacturing methodologies. Both organizations have continued to evolve and they have been recognized for achieving productivity levels of at least 95% of those located in Japan. This has led to the conclusion that whatever the faults of the US educational system, on- the- job training can compensate for educational deficits.

What was not widely recognized was that both organizations, at that time, made a two-year college degree a prerequisite for employment throughout their plants. Possessing such an extensive skill base obviously made for a much easier development of their productive manufacturing cultures in each of their respective organizations.

As President of a Massachusetts manufacturing firm at that time, I viewed having such a prerequisite degree for my own firm of 250 employees something of a dream. Lacking an existing credentialed talent base or a supportive community college system, the manufacturing community, along with my own firm, were reduced to hiring “the willing,” regardless of educational levels.

MassMEP Image

While we’ve made progress, the Massachusetts manufacturing community still has a ways to go. According to the recent findings in the Staying Power II Report Card on Manufacturing in Massachusetts 2012 report, compiled by the Center for Urban and Regional Policy School, approximately 40% of our entire workforce has a high school or less education level.

As stated in the survey, “In 2005, 33 percent of the workforce had at least a BA; five years later, that number is 39 percent. Younger workers joining the industry are coming in with more education, taking the place of older retiring workers who were much less likely to have gone beyond high school.”

This finding and the fact that high-technology enterprises, such as medical devices and navigational and electronic instruments, are growing sectors and require higher levels of education for their new hires have contributed to the increase in education. In addition, hiring for much of the basic unskilled manufacturing assembly jobs, once the core of manufacturing, has become relatively unimportant. Nearly one-sixth of team assemblers work for employment agencies, which furnish workers to other companies on an as needed basis*, and as such are not included in the state’s manufacturing sector’s employment numbers.

Massachusetts’ ability to provide a large number of well-paying jobs for those with less than a 4-year college education is in decline but may accelerate with the growth of the state’s Advanced Manufacturing sector. The current skills gap of hundreds of manufacturing positions going unfilled, coupled with continued demands for improved productivity, have brought approximately a quarter of the state’s manufacturers to a level of awareness that they must now become personally involved with resolving this problem that is jeopardizing the growth of our industries.

The Staying Power II Survey asked the firms in the survey for their recommendations for “what they thought were the most important initiatives that might be undertaken by industry itself, by their own firms, and by the state.”

The following recommendations were made (and percentage of respondents who thought that these recommendations were very important or extremely important).

  1. Working with school or community college instructors to incorporate industry standards into curriculum — 30.3 %
  2. Creating a certificate in manufacturing technology  — 27.5%
  3. Serving a mentors/advisors at selected vocational schools or community colleges — 27.4%
  4. Speaking to parent organizations/student groups about careers in manufacturing — 24.7%
  5. Contributing machinery, tools, or other materials to schools — 21.0%
  6. Exhibiting at education, career, and technology fairs — 19.7%
  7. Instituting company sponsored educational scholarships  — 14.2%
  8. Hiring vocational/community college teachers to train your employees — 11.6%

The survey also found that at least a third of the respondents are not willing to become involved in any of the recommended programs that may address this problem, either because they believed that they were not useful or because they did not have the resources or time to participate. While this is a significant segment of the manufacturing community, we have seen that there is a general willingness of manufacturers within the state to collaboratively participate in addressing their industry’s skills gap. Thus was born the Manufacturing Advancement Center’s Workforce Innovation Collaborative (MACWIC).

MACWIC is an industry-led collaborative that in less than a year’s time has established an acceptable skills credentialing system and established an articulation agreement with Quinsigamond Community College. Quinsigamond is recognizing and supporting the applicability of the MACWIC skills standard as part of the school’s degreed program in Applied Manufacturing Technology. Many economists attribute the differences in productivity of countries to their labor and capital markets, which makes collaborations like the MACWIC essential to support the necessary development of productivity in our labor markets.

Growth Manufacturers Case Study (admin posted on November 8th, 2012 )

Stoughton Steel Enters New Markets and Raises Funds Through Crowdsourcing

“We have equipment and capacity and even though our competencies are in another market we knew we needed to look for new ideas for steel!” —Eric Lagsdin, VP of Operations

Andris and Eric Lagsdin of Stoughton Steel are sitting at a conference table in their facility in Hanover, Massachusetts. Not long ago the day-to-day pressures that are practically synonymous with running your own business, often kept them working seven days a week and prevented them from taking time to plan, to create, and just to step back and breathe.

Stoughton Steel’s Eric and Andris Lagsdin

Their parents, Andry and Dolores Lagsdin, started Stoughton Steel in 1974 to manufacture stabilizer Flip Pads®, a product invented and patented by Andry for use on the stabilizer feet of backhoes. The company moved to Hanover when they outgrew their Stoughton facility. Eric became Vice President of Operations and Andris, Vice President of Sales and Marketing. Their Flip Pad® product was in demand and they were busy designing and producing new variations to meet customer needs.

Lean & ISO Certification
Five years ago, an important client suggested Stoughton Steel obtain their ISO certification and do some Lean Manufacturing training. Soon the company began working with project manager Rick Bowie of the Massachusetts Manufacturing Extension Partnership (MassMEP) who brought in a resource to assist Stoughton Steel with their ISO preparation. Rick also facilitated employee training in Basic Lean tools, Value Stream Mapping, and Kaizen improvement to help manage their rapid growth. Stoughton Steel racked up the achievements: the ISO certification necessary to develop future business and continue work with current customers, a 10-15% productivity improvement for manufacturing, improved safety, improved morale, decreased down time, and 100% on-time delivery to Caterpillar, a major client.

In 2009, the business, which deals primarily with construction equipment, took a big hit from the economy. Sales decreased by one third. They tried to develop new products or search for new opportunities but couldn’t juggle this with regular production schedules and customer issues. Ideas were shelved for “someday when they had time.”

The team attended CONEXPO, the largest international convention for the construction and construction materials industries, which open their eyes and got their creative juices flowing. Upon their return, senior management met in their conference to talk about transforming their company for growth with the new product ideas they gathered at CONEXPO. Eric warned that before they could successfully take on new ideas and products they their manufacturing process running smoothly again.

Kanban & 5S
“Sustaining improvements has always been tough,” admits Eric, “but the inspiration we got at the show in Las Vegas was the incentive we needed to develop procedures to make the improvements stick!” He suggested they bringing Rick Bowie back to help rejuvenate their processes and develop procedures that would assist them in organizing their work space, making it more efficient and easier to sustain thus allowing them to innovate and explore new product opportunities. This became the foundation for the continuous improvement work that brought about an infusion of new life, new products, and a welcome change of pace for the Lagsdin’s.

 

Visual Kanban

“We did several 5S events to clean and organize before we began,” explains Eric. Rick worked with employees to create visual systems and a game plan to help sustain their efforts. Visuals were imperative since not all thirty employees speak the same language. Color coding tools and areas of the shop according to team allows the shop floor to show when something is out of place or a team is not maintaining the standard. We have weekly group meetings to discuss what is going on and get employee ideas,” adds Eric.

Visual Kanbans virtually eliminated the need for scheduling. Team leaders in each manufacturing area were empowered to handle their own material re-ordering. Standard quality training was also essential and has made ISO audits much easier.

“Hearing why we need to make the changes from an outside source, other than one of us, seems to have a lot more impact,” added Eric. “Rick was able to talk to the employees without dictating and helped change the cultural mindset. He introduced the Pull Kanban process which the team adopted quickly.” Everyone is also accountable for their own work and its quality, freeing up the supervisor to oversee production and makes his job easier and more enjoyable.

“The (Pull Kanban) project helps us sustain ISO with a formal manufacturing process as well as a system to support it,” explains Eric. “Visual Kanban tags show when replenishment is needed and assists with better material control which reduces costs associated with excess inventory and other waste. Our employees really embraced the changes that have made their jobs easier!”

Results and New Opportunities

  • Decreased FlipPad® shipping time from 7 to 2.5 days.
  • Developed new product/market rubber edges for plow blades from same reinforced rubber as FlipPads® and stronger than standard edges.
  • Redesigned rubber cut for plow edges to be re-cut for FlipPads® as needed.
  • Brought work back in-house, purchased hydraulic presses to cut rubber in house. Cost savings paid for presses almost immediately.
  • Used powder coating equipment to take on small jobs during slow periods. Now coat 400-1000 units per week for one client.

“Primarily, we get ideas from talking to people,” says Eric. “I walked around home improvement stores asking people who were looking at mailboxes what they would like to have for options then incorporated the ideas into my designs. Now we have a steel plate customizable mail box that can withstand an explosion!”

What is “Green” and Bakes Pizza? An Innovative Product from Stoughton Steel
Andris Lagsdin spent many years in culinary arts, working under renowned chef Todd English, before returning to focus on marketing, advertising and customer service for the family business. Until recently, his time was consumed addressing customer issues. Now they go months without any.  Quality improvements mean happy customers and that means that Andris can devote critical time to investigating new markets, attracting new business, marketing their new products, and getting them ready for sale.

With his culinary background and vast knowledge of steel, Andris recognized the advantages of the consistent heat produced by using steel plates for some types of cooking. In Modernist Cuisine he read that by utilizing steel plates in a conventional oven you can recreate pizza oven baking at a fraction of the cost.  Baking Steel® was his “ah-ha moment” and Stoughton Steel’s foray into the household consumer market.

“Baking Steel® is also perfect for the little restaurant that can’t afford a regular pizza oven,” adds Andris. “We love the idea of using steel because it is one of the most recycled products on earth and are also having the one- of- a- kind covers for our Baking Steel ®made from recycled billboards!”

But…Will it Sell?
In August 2012, the Baking Steel® project previewed on Kickstarter®, an Internet funding platform, allowing  the general public to learn about and make small investments in a new product  to help fund ramp-up for manufacture. Within a month they had exceeded their funding goal by over 1000% and had received some media attention. A food blogger from New York tested Baking Steel® and reported “some of the finest crust ever made in his oven!”

Initial shipments of Baking Steel® are now being sent to eager Kickstarter® investors. Andris has completely redesigned the company websitehttp://www.stoughtonsteel.com with a new look and feel to help promote their new products and hopes to attract a lot of direct on-line business.

Andry Lagsdin commented, “Working with the MassMEP helped Stoughton Steel stabilize cash flow which enabled my sons to grow the business, organize their efforts, and have some much needed free time to create!”

“Rick showed us the way to make our improvements stick and helped get the workforce, especially our management team, excited about the continuous improvement process.  Everyone has seen the benefits. Now we can listen to new ideas and opportunities because we have freed up capacity by being so much more efficient and because we have made our crew responsible and accountable for quality. Ideas create ideas. Once you bring one to life you learn so much from the process you will be better prepared for the next one and it will take a smaller investment of your time and efforts to get it going.” — Eric Lagsdin, VP of Operations

Taking the Next Step to Develop Manufacturing Skills (admin posted on October 25th, 2012 )

Jack Healy, MassMEP

Jack Healy, MassMEP Director of Operations

By Jack Healy, Director of Operations, MassMEP jackh@massmep.org

Twenty five years ago, I had the opportunity to visit two Japanese automotive transplants located in Anna, Ohio and Lexington, Kentucky to study their very productive manufacturing methodologies. Both organizations have continued to evolve and they have been recognized for achieving productivity levels of at least 95% of those located in Japan. This has led to the conclusion that whatever the faults of the US educational system, on- the- job training can compensate for educational deficits.

What was not widely recognized was that both organizations, at that time, made a two-year college degree a prerequisite for employment throughout their plants. Possessing such an extensive skill base obviously made for a much easier development of their productive manufacturing cultures in each of their respective organizations.

As President of a Massachusetts manufacturing firm at that time, I viewed having such a prerequisite degree for my own firm of 250 employees something of a dream. Lacking an existing credentialed talent base or a supportive community college system, the manufacturing community, along with my own firm, were reduced to hiring “the willing,” regardless of educational levels.

While we’ve made progress, the Massachusetts manufacturing community still has a ways to go. According to the recent findings in the Staying Power II Report Card on Manufacturing in Massachusetts 2012 report, compiled by the Center for Urban and Regional Policy School, approximately 40% of our entire workforce has a high school or less education level.

As stated in the survey, “In 2005, 33 percent of the workforce had at least a BA; five years later, that number is 39 percent. Younger workers joining the industry are coming in with more education, taking the place of older retiring workers who were much less likely to have gone beyond high school.”

This finding and the fact that high-technology enterprises, such as medical devices and navigational and electronic instruments, are growing sectors and require higher levels of education for their new hires have contributed to the increase in education. In addition, hiring for much of the basic unskilled manufacturing assembly jobs, once the core of manufacturing, has become relatively unimportant. Nearly one-sixth of team assemblers work for employment agencies, which furnish workers to other companies on an as needed basis*, and as such are not included in the state’s manufacturing sector’s employment numbers.

Massachusetts’ ability to provide a large number of well-paying jobs for those with less than a 4-year college education is in decline but may accelerate with the growth of the state’s Advanced Manufacturing sector. The current skills gap of hundreds of manufacturing positions going unfilled, coupled with continued demands for improved productivity, have brought approximately a quarter of the state’s manufacturers to a level of awareness that they must now become personally involved with resolving this problem that is jeopardizing the growth of our industries.

The Staying Power II Survey asked the firms in the survey for their recommendations for “what they thought were the most important initiatives that might be undertaken by industry itself, by their own firms, and by the state.”

The following recommendations were made (and percentage of respondents who thought that these recommendations were very important or extremely important).

  1. Working with school or community college instructors to incorporate industry standards into curriculum — 30.3 %
  2. Creating a certificate in manufacturing technology  — 27.5%
  3. Serving a mentors/advisors at selected vocational schools or community colleges — 27.4%
  4. Speaking to parent organizations/student groups about careers in manufacturing — 24.7%
  5. Contributing machinery, tools, or other materials to schools — 21.0%
  6. Exhibiting at education, career, and technology fairs — 19.7%
  7. Instituting company sponsored educational scholarships  — 14.2%
  8. Hiring vocational/community college teachers to train your employees — 11.6%

The survey also found that at least a third of the respondents are not willing to become involved in any of the recommended programs that may address this problem, either because they believed that they were not useful or because they did not have the resources or time to participate. While this is a significant segment of the manufacturing community, we have seen that there is a general willingness of manufacturers within the state to collaboratively participate in addressing their industry’s skills gap. Thus was born the Manufacturing Advancement Center’s Workforce Innovation Collaborative (MACWIC).

MACWIC is an industry-led collaborative that in less than a year’s time has established an acceptable skills credentialing system and established an articulation agreement with Quinsigamond Community College. Quinsigamond is recognizing and supporting the applicability of the MACWIC skills standard as part of the school’s degreed program in Applied Manufacturing Technology. Many economists attribute the differences in productivity of countries to their labor and capital markets, which makes collaborations like the MACWIC essential to support the necessary development of productivity in our labor markets.

PATRICK-MURRAY ADMINISTRATION HIGHLIGHTS STRENGTH AND FUTURE OF MASSACHUSETTS MANUFACTURING INDUSTRY DURING VISIT TO ACCUROUNDS IN AVON (admin posted on October 14th, 2012 )

Report by The Boston Foundation finds manufacturing sector has strengthened since 2008

Governor Deval Patrick and Lieutenant Governor Timothy Murray joined industry leaders and state and local officials at Avon-based precision manufacturer AccuRounds to announce a number of initiatives designed to strengthen the manufacturing sector in Massachusetts.

“Massachusetts is recovering faster and stronger than the rest of the nation because of our strategic investments in sectors that create jobs in the 21st century global economy,” said Governor Patrick. “I am proud of the work the Advanced Manufacturing Collaborative has accomplished, creating opportunities for workers with a range of skill levels that will strengthen our economy for years to come.”

The new initiatives include $5 million in state funding to improve workforce competitiveness and the creation of access to capital workshops designed to promote awareness of capital and technical assistance for companies. Lieutenant Governor Murray also launched “AMP It Up!,” a new statewide careers promotional campaign that will increase awareness about available job opportunities within the industry.

“Manufacturing is the fifth largest employer in the Commonwealth, and we are making critical investments and building public-private partnerships to boost this industry and our growing economy,” said Lieutenant Governor Murray. “As we address the skills gap within the industry, the ‘AMP it up!’ campaign will increase awareness about job opportunities for the next generation of workers as we also continue to promote workforce training and other initiatives to support those currently seeking employment.”

Preserving and improving the manufacturing industry has been, and continues to be, a priority of the Patrick-Murray Administration. The industry is a part of Massachusetts’ innovation economy and is internationally competitive through a new generation of advanced manufacturing that is known for precision, customization, high value and technological innovation.

“Our manufacturing industry has embraced new technology and a competitive spirit, and has been able to become a thriving, innovative part of our economy,” said Greg Bialecki, Secretary of Housing and Economic Development. “The Administration’s long-term economic plan includes goals that will enable us to work with the industry and ensure companies are finding the well-trained, middle-skill employees they will need in the future.”

The Boston Foundation unveiled a report by Northeastern University Professor Barry Bluestone, Staying Power II, that finds the Massachusetts manufacturing industry suffered job losses during the recent recession, but has found its footing and through investments in new technology is solidifying its position in the Commonwealth.

The report illustrates that after a period of job loss in the industry – particularly in the last five years through the nation’s significant recession – the number of jobs is starting to level off. Significantly, through companies adding jobs and replacing an aging workforce, The Boston Foundation estimates as many as 100,000 manufacturing jobs may be available in Massachusetts over the next decade. Additionally, the report found the positions will be good jobs with good wages, with the current average annual salary in the industry over $75,000.

One of the initiatives that will help the manufacturing industry connect with employees is the reform of community colleges signed into law by Governor Patrick in July. Through the changes, community colleges will be more responsive to the needs of businesses and help fill the skills gap that can often leave employers with a shortage of well-trained job prospects.

“Having a robust manufacturing sector is vital to our state’s economic wellbeing. The initiatives announced today will encourage manufacturers who create good jobs and quality products, such as AccuRounds, to remain in Massachusetts and for new companies to establish themselves here,” said State Representative William C. Galvin.

In August, Governor Patrick also signed into law legislation that codifies the Advanced Manufacturing Collaborative, which was created in 2011. Through the Collaborative, government and industry officials will work together to move manufacturing forward in Massachusetts. The Collaborative will take an active role in a promotional campaign targeting parents, teachers and guidance counselors that will help build awareness of manufacturing job opportunities. The Collaborative will produce materials and offer challenge grants to local and regional programs touting the industry and its potential to workers. As part of that effort, today’s launch of the “AMP it up!” campaign will build awareness statewide of manufacturing’s resurgence.

Additionally, in the Fiscal Year 2013 budget, the Massachusetts Manufacturing Extension Partnership funding was increased to $1,225,000. The economic development bill signed by Governor Patrick creates the Advanced Manufacturing Futures Fund, which will receive future revenues as outlined in the Expanding Gaming Act and will be dedicated to supporting new projects and initiatives to improve the competitiveness of manufacturers.

“Everyone at AccuRounds was grateful, excited and proud to host such an important event for manufacturing,” said Michael Tamasi, President and CEO of AccuRounds. “The cooperation amongst the Governor’s team, industry representatives and all the event participants was tremendous. The report card on manufacturing in Massachusetts proves that our industry is alive and well. Spread the word.”

“Manufacturing in Massachusetts has come out of the recession faster than before because of its strong competitive position, and we are trying to accelerate that growth by strengthening the manufacturing infrastructure in the state as we bring highly innovative products and manufacturing processes to global markets,” said Mitch Tyson, Principal at Tyson Associates and Co-Chair of the Advanced Manufacturing Collaborative. “As we move forward with Governor Patrick and his team, we anticipate getting even stronger as our industry works more closely with the amazing workforce training and academic institutions in the state.” “

The Northeastern University report supports the increasing focus of MassDevelopment on the vital manufacturing sector,” said Marty Jones, President and CEO of MassDevelopment. “Working with the Patrick-Murray Administration, MassDevelopment invites everyone to check out the AMP It Up! campaign launched today at www.ampitupma.com where young people, parents, and guidance counselors can find more information on how to pursue worthwhile manufacturing careers.” “

We are proud to engage in the public-private collaborations that bring manufacturers together to develop a roadmap for expanding this vibrant economy across Massachusetts,” said Pamela Goldberg, CEO of the Massachusetts Technology Collaborative.