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Manufacturing Month Shows the Future of Industry

Posted by Brian Gilmore on Jun 29, 2016 2:13:14 PM

What's the best way to remind Massachusetts residents that manufacturing is alive and well in the Bay State?

The answer is for manufacturing companies to take part in National Manufacturing Day on October 7 and Massachusetts Manufacturing Month during the entire month of October.

Go to mfgday.com to register an event for free publicity and helpful ideas for hosting an event. And check out MassDevelopment’s AMP it UP! to view videos of manufacturing events. Then contact me for more information and ideas - bgilmore@aimnet.org or 617-262-1180 Ext. 322. 

Why is manufacturing important? Check out these numbers:

ManufacturingMonth2016.1.jpgManufacturingMonth2016.2.jpg      

Topics: Manufacturing, Massachusetts Manufacturing

A Welcome Political Consensus on Manufacturing

Posted by Rick Lord on Sep 25, 2015 5:10:22 PM

The commonwealth’s top political leaders agree that manufacturing has a bright future in Massachusetts - and that’s great news for the state economy.

manufacturingGovernor Charlie Baker, House Speaker Robert DeLeo and Senate President Stanley Rosenberg today joined a bipartisan group of business leaders, cabinet secretaries and legislators to kick off Manufacturing Month in Massachusetts from now through the end of October.

The event was organized by the Legislature's Manufacturing Caucus, chaired by Rep. John V. Fernandes, D-Milford, and Senator Eric Lesser, D-Longmeadow.

The observance is intended to highlight the importance of the manufacturing sector; to encourage students and workers to consider manufacturing as a pathway to a successful career; and to recognize the world-class companies, maker spaces and startups that make up the manufacturing sector from Boston to the Berkshires.

For me, as the CEO of the state’s largest employer association, the sight of elected officials from both parties standing together at the State House to celebrate the 7,500 manufacturing establishments in Massachusetts was heartening. Some political leaders may dismiss manufacturing as a dying industry, or overlook it entirely in the pursuit of the “technology sector,” but there is a clear and unified view in Massachusetts that manufacturing and technology are part of the same equation for success in creating jobs.  

More than 250,000 Massachusetts residents work in manufacturing businesses, which accounted for more than 10 percent of gross state product (GSP) - $45.06 billion - in 2013, the most recent year for which numbers are available. Manufacturing workers in Massachusetts earn an average pay of approximately $93,862 per year, among the highest in the country.

And manufacturers invest a far higher percentage of sales in research and development than non-manufacturing companies.

The six companies that took part in today’s ceremony underscore the diversity and promise of making things in Massachusetts – from biopharmaceutical leader and AIM member Biogen to clean-tech startup Greentown Labs, to Maybury Material Handling to grinding firm Boston Centerless to contract machining company Accurounds to another AIM member, officer furniture maker AIS.

The State House event is the first in a series of events scheduled throughout the month of October that will highlight best practices in workforce training, showcase programs that are available to employers and workers, and advance dialogue to address current work force challenges.

The observance will be broken up into five weeks, representing five regions of the state. AIM encourages manufacturers to participate in the celebration by hosting a tour, making a presentation at a local school, or attending one of the many events scheduled across the commonwealth. The weeks will be assigned as follows:

  • Week 1 (September 27-October 3): Central Mass/495/MetroWest 
  • Week 2 (October 4-10): Western Mass/Berkshires/Pioneer Valley
  • Week 3: (October 11-17): Northeast
  • Week 4: (October 18-24): Southeast/Cape & Islands
  • Week 5: (October 25-31): Greater Boston

Employers or school districts interested in participating in an open house in October can visit the following sites for more information, including guidance on how to successfully host an event.

Announcement of Manufacturing Month came one day after Governor Baker and several key administration officials discussed the challenges of training and educating the next generation of manufacturing workers during a meeting of the Massachusetts Workforce Professionals Association. I had the opportunity to introduce the governor at that event and to talk about AIM’s Blueprint for the Next Century, which recommends elevating the role vocational education and other steps to close the skills gaps that threatens to impede the growth of manufacturers in years to come.

 

Topics: Manufacturing, Massachusetts Manufacturing

Manufacturers, Vocational Schools Get on the Same Page

Posted by Brian Gilmore on Oct 1, 2014 9:47:25 AM

A group of Massachusetts manufacturing companies is reporting significant progress in efforts to ensure that vocational high schools are teaching students the skills that employers need.

ManufacturingDay2014This spring, 14 of the 30 Massachusetts vocational schools offering machining technology accepted an invitation from the Manufacturing Advancement Center Workforce Initiative Collaborative (MACWIC) to test the proficiency of students enrolled in their machining programs.

Results of the testing are to be announced Monday in Northampton. By passing the Applied Manufacturing Technology Pathway Certification exam, students will earn a Level 1 MACWIC certificate in Basic Manufacturing Skills.

MACWIC designed the Applied Manufacturing Technology Pathway Certification to create a standard instruction and evaluation process to help employers evaluate the skills of a job applicant. The first of the five levels of instruction includes shop math, blueprint reading, metrology and quality inspection, safety and work readiness.

Completion of levels one and two of the Pathway can lead to a pre-apprentice certificate, while completion of all five levels can lead to an associate’s degree in manufacturing technology.

The ultimate objective is for vocational schools to adopt all or a portion of the MACWIC machining curriculum. The Pathway is also designed for use in incumbent and dislocated worker training programs.    

The Massachusetts Manufacturing Extension Partnership (MassMEP) and Worcester Polytechnic Institute (WPI) are giving Massachusetts vocational high schools that validate their Machine Tool Technology programs against the MAWIC credential access to the Pathway curriculum and online programing to support certificate instruction. The total value of the grant is $2.5 million.

The MACWIC program has been endorsed by AIM and received the association’s Gould Education & Workforce Development Award in 2013. 

Massachusetts Vocational Schools with Machine Tool Technology Programs participating in the curriculum, testing, and online programing include:

  • Assabet Valley Regional Technical High School, Marlborough
  • Bay Path Regional Vocational School, Charlton
  • Blackstone Valley Regional Vocational Technical High School, Upton
  • C.H. McCann Regional Technology School, North Adams
  • Franklin County Regional Technical High School, Montague
  • Greater Lowell Regional Technical High School, Tyngsboro
  • Essex (North Shore Regional) Technical High School, Middleton
  • Putnam Vocational Technical High School, Springfield
  • Shawsheen Valley Regional Vocational Technical High School, Billerica
  • Smith Vocational & Agricultural High School, Northampton
  • Somerville High School, Somerville
  • Taconic High School, Pittsfield
  • Whittier Regional Vocational High School, Haverhill
  • Worcester Technical High School, Worcester

Several AIM member companies will assist MACWIC during the next year in efforts to secure participation in the certificate program by the remaining 16 vocational and technical schools that offer machining technology.  

Topics: Skills Gap, Manufacturing, Massachusetts Manufacturing

LoJack Exec: Planning, Integration Key to M&A

Posted by Gary MacDonald on Aug 22, 2014 12:02:00 PM

An increasingly competitive world virtually demands growth strategies accelerated through mergers and acquisitions, but achieving M&A success is daunting.

HandshakeThe chief executive must set the context for M&A strategy and focus the organization on forward integration of new resources, processes and values, a corporate development expert told the AIM CEO Connection recently.

Doug Flood, Vice President of Corporate Development at LoJack Corporation, said that M&A requires new metrics, leadership and capabilities. The CEO must communicate relentlessly, Flood said, to integrate the new business successfully with the core business.

It is that integration that drives most value in M&A, according to Flood.

He made his comments during a discussion on Growth Strategies with a dozen chief executives taking part in the CEO Connection in Medway. Flood told the CEOs that integration planning and process are critical to handling the surprises that inevitably arise in the rapid-change environment of a merger or acquisition.

The CEO must:

  • Define the corporate plan that is the foundation for M&A strategy as a means to reach the envisioned future of the business;
  • Commit the necessary senior leadership time;
  • Build relationships to mitigate risk as the new business is explored and change is executed;
  • Define and follow a disciplined M&A process with deliberate speed and passion; and
  • Drive focus on integration according to plan, and according to what the team discovers including the unanticipated.

“Above all else, the CEO must drive the focus on appropriate integration of the new business,” Flood said.

“That means preparing the company to be changed amid accelerated growth - ensuring the right leaders and champions are in place, and communicating the strategic context and execution progress to all stakeholders so they can understand and contribute.”

Veda Ferlazzo Clark, the former chief executive who moderates CEO Connection, said participants choose the topics for each meeting and that there was keen interest in the management role in M&A. Each session of the CEO Connection includes a presentation from an outside expert, open discussion and a company tour.

“These CEOs learn a tremendous amount from one another. It’s a uniquely valuable exercise for people who are sometimes very much on their own in making important decisions,” Clark said.

Manufacturing CEOs interested in joining the AIM CEO Connection should contact either Brian Gilmore (bgilmore@aimnet.org) or Gary MacDonald (gmcdonald@aimnet.org).

 

Topics: Manufacturing, Massachusetts Manufacturing, Mergers & Acquisitions

Small Manufacturers Need Reliable Quality System to Compete

Posted by Brian Gilmore on Aug 10, 2012 10:59:00 AM

Manufacturing often calls to mind global companies like Raytheon, General Electric and EMC.

ManufacturingBut 98.5 percent of Massachusetts manufacturers are classified by the Federal government as Small Manufacturing Enterprises (SMEs). About 7,000 of the almost 8,000 manufacturers in the Bay State employ fewer than 100 people. Some 5,200 manufacturers (69 percent) employ fewer than 20, and 2,590 (34 percent) have no more than five employees.

These smaller companies, like the giants, survive and thrive in a national and global marketplace.  Their success, measured by indicators such as the high volume of Massachusetts products exported to international markets, reflects great credit on the thousands of small manufacturers operating in the commonwealth and on their ability to maintain a competitive edge.

Remaining competitive is, however, becoming more challenging. In a survey of small manufacturers by the Center for Urban and Regional Policy at Northeastern University about changes in customer expectations over the past 10 years, 62 percent of employers cited increased pressure for lower prices, 60 percent saw demand for improved service and timely deliveries, and 55 percent said customers are seeking better product quality. 

Price, service and quality are simultaneously the top three requirements and the top three challenges across all manufacturing sectors. Manufacturers both large and small still find quality problems at the shipping docks. As to price, there are still too many small manufacturers that understate their cost of quality, writing down off-spec products at material costs and not at value added costs. Indeed, there are still companies that throw away more value than they make.

Proper quality management leads to lower costs, increased productivity and a better competitive position. Large companies are developing systems to manage this important aspect of their operations and pushing responsibility down the supply chain. Demand by large manufacturers that their suppliers have a certified quality management system in place is nothing new. What is new are the demands for the suppliers to take on more responsibility and accountability in the design of the products they are supplying in addition to establishing systems for traceability of their products or components. As a result, today’s small manufacturers are finding it difficult to have the arm’s-length transactions of the past, where they just made a part to print and ship.

ISO 9001 certification provides the framework of methods that allow any organization, regardless of size, to fulfill the requirements of today’s manufacturing environment. Not only does an established ISO 9001 system provide a framework for Quality Management, but its “Plan-Do-Check-Act” process provides the user with a built-in continuous improvement process that is often absent in the average operations of a small manufacturing enterprise.

AIM and the Massachusetts Manufacturing Extension Partnership (MassMEP) have teamed up to create a training collaborative that will help companies to become “one in a million” by obtaining ISO 9001 training at fraction of the usual cost and in a minimum amount of time. The AIM/MassMEP ISO Collaborative is a workshop-based program that focuses on providing systems, documentation and training in a classroom as well as on-site consultation for companies wanting or needing to comply with the ISO 9001:2008 Standard.

Four to eight companies work together to establish and/or upgrade their quality management systems via seven off-site, one-day training workshops held over a period of seven months – one workshop per month – and five to seven on-site consulting days (based on company size). In addition, a Gap Assessment of each participating company is provided to set the benchmark criteria for ISO 9001: 2008 certification.

The fee to participate in the AIM/MassMEP ISO Collaborative is based on the firm’s size and ranges from $11,000-$22,000. AIM members, thanks to a grant from MassDevelopment, are eligible to receive a 10 percent discount on the fee from MassMEP. Participants in the collaborative may also be eligible to receive partial funding from the state’s Workforce Training Fund.

For more information, contact MassMEP at 508-831-7215 or AIM at 617-262-1180 ext. 322 

Topics: Business Center, Massachusetts Manufacturing, Training

BuyMass to Conduct Supplier Matchmaking Event with Pratt & Whitney

Posted by Christopher Geehern on Jul 27, 2012 10:26:00 AM

Pratt & Whitney, the Connecticut-based global designer, manufacturer and servicer of aircraft engines, industrial gas turbines and space propulsion systems, will meet on August 6 with potential Massachusetts business partners at a supplier matchmaking event sponsored by the BuyMass initiative.

PrattPratt & Whitney, a division of United Technologies Corporation, will meet privately with more than a dozen pre-qualified companies at a BuyMass matchmaking event sponsored by Associated Industries of Massachusetts (AIM), the Economic Development Council (EDC) of Western Massachusetts, and the Commonwealth of Massachusetts.

Pratt is looking for potential suppliers with expertise in:

  • Five-Axis Milling
  • Plasma
  • Splining
  • Heat Treat
  • EB Weld
  • Laser drill/weld house for large CAN liners and nozzles
  • EDM drilling with inspection capability

Participating companies will be evaluated based upon the demonstrated quality of their manufacturing process, the equipment they use and their experience providing products and services under the exacting standards of the aerospace industry.

“The matchmaking event gives Pratt & Whitney the opportunity to find innovative and world-class suppliers in Massachusetts while allowing companies here to speak directly about their technologies and products to one of the world’s foremost companies,” said Richard C. Lord, President of Associated Industries of Massachusetts and Chief Executive of the BuyMass initiative.

The event will take place at Pratt & Whitney’s offices in East Hartford, Connecticut.

There is still time for Massachusetts companies to apply to participate in the matchmaking event with Pratt and Whitney. Companies that apply will be notified by Thursday, August 2, whether they have been approved for a meeting.

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BuyMass is a public/private collaboration to encourage companies to develop regional supply networks and commercial relationships with other employers in the commonwealth. The initiative maintains a statewide supplier directory called BuyMass.org and arranges focused business-to-business meetings throughout Massachusetts between global companies and best-in-class suppliers.

There is no guarantee that a meeting at BuyMass matchmaking will lead to a contract or business relationship with Pratt & Whitney – it merely provides an opportunity for a company to introduce itself.

Topics: Business Center, Massachusetts Manufacturing, BuyMass

Digital Espionage Stroke Raises Issues for Massachusetts Manufacturers

Posted by Christopher Geehern on Feb 3, 2011 2:32:00 PM

An extraordinary stroke of digital espionage by the United States may forever change the way manufacturing companies look at the security and vulnerability of their operations.

Manufacturing SecurityThe New York Times reported on January 15 that American and Israeli intelligence were apparently behind a computer worm called Stuxnet that severely damaged Iran’s nuclear centrifuges in 2010, setting back that nation’s controversial nuclear weapons program by several years. The Times asserted that Stuxnet, the most sophisticated cyberweapon ever developed, caused the centrifuges to spin out of control while playing back recordings of normal operations so technicians were unaware of what was happening.

It marked one of the first instances in which nations used computer malware to cause physical damage to the machinery of another. The Times reported that U.S. intelligence began by obtaining information about the vulnerabilities of the Siemens P.C.S.-7 controllers used to operate the Iranian centrifuges and then tested the scheme on Iranian-type machinery kept by by Israel.

The Siemens controllers are the same ones used by thousands of manufacturing companies around the world to operate industrial machinery. Computers drive virtually all advanced manufacturing by translating the electronic engineering of products and parts to computer numeric controlled (CNC) machinery to fabricate everything from paper to jet engines with astonishing tolerances.

“It’s like a playbook,” said Ralph Langner, an independent computer security expert in Hamburg, Germany, who was among the first to decode Stuxnet. “Anyone who looks at it carefully can build something like it,” he told the Times. Mr. Langner is among the experts who express fear that the attack legitimized a new form of industrial warfare, one to which the United States is also highly vulnerable.

The vulnerability of computer-controlled manufacturing machinery is especially troublesome for Massachusetts, where the manufacturing sector is both highly automated and global in scope. Walk around any Massachusetts factory floor and you’re likely to see five-axis machining centers, printing presses or plastic injection-molding machines with almost as much computer hardware and software as tool bits.

The Stuxnet attack ultimately opens up a broad new set of security concerns for manufacturers who until now thought the worst consequence of a computer virus was crashed laptops. What happens now that a business competitor, a disgruntled employee or some hacker sitting in an Internet café in Asia can write computer code capable of making multi-million dollar production machinery run off the rails?

There is, unfortunately, a growing body of answers to that question. Cyber attackers in recent years have shut down nuclear plants, municipal water systems, a tram system in Poland and even the traffic lights in Los Angeles.

As early as 2008, Siemens and the Idaho National Laboratory told a conference: “Currently, a cyber attack on industrial control systems is one of the only ways to induce real-world physical actions from the virtual realm of the Internet. This is leading to an increased level of interest in industrial control systems by ‘black hat’ groups.”

The message to manufacturers – you’re going to need a bigger lock.

 

Topics: Cybersecurity, Manufacturing, Massachusetts Manufacturing

Brown to Become First Massachusetts Recipient of Manufacturing Award

Posted by Brian Gilmore on Nov 17, 2010 2:07:00 PM

Executives of the National Association of Manufacturers (NAM) may want to bring a map with them when they arrive in Massachusetts Friday to present the Manufacturing Legislative Excellence Award to Senator Scott Brown.

ScottBrownIt’s been a long time since a member of Congress from Massachusetts has earned NAM’s top award for supporting policies that enhance the competitiveness of American manufacturers. In fact, the presentation to Senator Brown at the conclusion of his speech to the AIM Executive Forum Friday will mark the first time ever that NAM has given the award to a Bay State lawmaker.

“We’re delighted to be coming to Massachusetts to recognize Senator Brown for his 100 percent voting record in support of economic growth and opportunity,” says Tiffany N. Adams, Vice President of Public Affairs for the 11,000-member NAM, which instituted the award in 1998.

The NAM will recognize Senator Brown for his pro-business votes on nine issues that came up after he won a special election to the Senate in January to fill the seat formerly held by Edward M. Kennedy. The votes included support for repeal of the onerous 1099 reporting rules in health care reform, continued access by manufacturers to reasonably priced over-the-counter derivatives and ensuring Congressional oversight of attempts to regulate greenhouse gas.

NAM will present Manufacturing Legislative Excellence Awards to 221 senators and representatives for their votes in the 111th Congress. Members of the House and Senate who vote in support of manufacturing at least 70 percent of the time earn the NAM award.

Senator Brown’s voting record in Washington is consistent with the one he assembled as a Massachusetts state senator prior to his January election. He and several other Republicans posted a top pro-business ranking of 67 percent on the 2007-2008 AIM Legislative Scorecard.

AIM President and Chief Executive Officer Richard C. Lord said that AIM and NAM work together closely on many important issues, so it makes sense for Senator Brown to receive the award at the AIM Executive Forum.

“We’re gratified that a Massachusetts senator has finally won national recognition for supporting jobs and economic growth. Let’s hope this is the first of many such NAM awards to be given in Massachusetts,” Lord said.

Topics: Associated Industries of Massachusetts, AIM, U.S. Congress, Manufacturing, Massachusetts Manufacturing, Senator Scott Brown

GE Aviation Supply Initiative Spells Opportunity for Bay State Firms

Posted by Christopher Geehern on Aug 5, 2010 9:20:00 AM

Regional supply chainsAn initiative by GE Aviation in Lynn to meet companies that could potentially become suppliers of products and services underscores the importance of local supply chains in paving the way for economic recovery in Massachusetts.

GE is conducting an Indirect Sourcing Small Business Meeting at its Lynn facility on August 18 to present potential opportunities for small companies to supply everything from manufacturing equipment, machining fixtures and industrial supplies to facility services, IT/Telecommunications services and professional services. Owners and managers of small companies will have an opportunity to meet with GE executives to learn about the needs and requirements of one of the commonwealth’s cornerstone technology companies. 

The GE event is now full and registration is closed. Please email your company name, your name and your company's product or service to Chris Geehern at AIM (cgeehern@aimnet.org) and we will forward the information to GE Aviation.

Associated Industries of Massachusetts believes that the development of business relationships among Massachusetts companies is critical to long-term economic vitality of the commonwealth. Our belief is so strong that we created the BuyMass.org online business-to-business directory last year as a “statewide buy local” initiative to generate commercial activity among Massachusetts companies.

The GE Sourcing Small Business Meeting reflects a growing determination among world-class manufacturing and technology companies to strengthen regional supplier networks. A recent Global Benchmarks Study by Deloitte found that despite the pressures of globalization, most supply chain optimization is accomplished locally and that far-flung supply chains pose significantly more risk for companies that suppliers located down the road.

You don’t have to look far to see examples of Massachusetts companies doing business with one another. Raytheon Company successfully maintains a roster of carefully vetted suppliers to meet the demanding requirements of defense technology work. Elizabeth Williams, President of Roxbury Technology Corporation in Jamaica Plain, told the AIM Annual Meeting this year that her company has thrived as a supplier to Staples and in turn creates opportunity for its own suppliers ranging from trucking companies to caterers.

These collaborations represent an important potential source of fuel to the economy. Massachusetts generates a gross state product of more than $300 billion annually, more than 13 percent of which rests in the manufacturing sector. Raise the share of local output by just a few percentage points and revenues increase by tens of millions of dollars. The Berkshire Chamber of Commerce in Pittsfield, which sponsors a “Buy in the Berkshires” initiative, estimates that if consumers moved three percent of their purchases to Berkshire County businesses, the shift would create 350 new jobs.

AIM applauds GE Aviation for reaching out to potential new suppliers in its back yard. It’s now up to the companies that have been looking for the road to recovery to take advantage of the opportunity.

Topics: Supply chain, GE Aviation, Associated Industries of Massachusetts, Massachusetts Manufacturing

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