Download - THE RESURGENCE OF MANUFACTURING
THE RESURGENCE OF MANUFACTURING:
FOUR TRENDS YOU SHOULD NOT IGNORE
PETRA MITCHELLPRESIDENT AND CEO
CATALYST CONNECTION1
AGENDA• Overview of the Manufacturing Economy• The Role of the MEP Program• A Local Perspective: SW Pennsylvania• Trends in US Manufacturing
– US Shale Gas and Low Cost of Energy – Innovation Management– Additive Manufacturing– Social Media for Business
– Wrap Up: National Academies of Science, Recommendations for a US Manufacturing Policy
2
WHY DOES MANUFACTURING MATTER?
EMPLOYMENT
INNOVATION
NATIONAL SECURITY
Source: National Association of Manufacturers, 2009
3
Source(s): International Monetary Fund and U.S. Bureau of Economic Analysis and MAPI, www.nam.org
THE U.S. MANUFACTURING SECTOR IS THE TENTH-LARGEST ECONOMY
U.S
. M
AN
UFA
CTU
RIN
G
4
CHEMICALS LEAD MANUFACTURING IN TERMS OF OUTPUT BUT NOT EMPLOYMENT
5
Source(s): MAPI calculations from U.S. Bureau of Economic Analysis data, www.nam.org
Indu
stry
Per
cent
of M
anuf
actu
ring,
201
1
PRODUCTIVITY SHOWS OUR STRENGTHS
Source(s): U.S. Bureau of Economic Analysis and MAPI, www.nam.org
6
0
20000
40000
60000
80000
100000
120000
0-4 5-9 10-19 20-99100-499 500+
Total Number of Firms: 290,704
Source(s): U.S. Census Bureau and MAPI, www.nam.org
SMALL COMPANIES DRIVE GROWTH
Number of Manufacturing Firms in 2010
Number of Employees per Firm
7
8
THE MANUFACTURING EXTENSION PARTNERSHIP:A CRITICAL RESOURCE FOR MANUFACTURERS
9
MEP IS SIMILAR TO THESE
COUNTRIES’INVESTMENTS
Source: “21st Century manufacturing Challenge: The Role of the MEP Program”, The National Academies of Science, 2013 © Charles W. Wessner Ph.D.
TAIWAN: ITRI PROGRAM
GERMANY: FRAUNHOFER
INSTITUTECANADA: IRAP
GREAT BRITAIN:CATAPULT
FRANCE: CARNOT
10
We help manufacturers competein a global economy.
OUR MISSION:
11
LET’S TALK ABOUT LOCAL LANDSCAPE
12
96,000
MANUFACTURING INSOUTHWESTERN PENNSYLVANIA
3,000MANUFACTURING
EMPLOYEES
$12.6BILLIONMANUFACTURERSIN OUTPUT
(11% OF TOTAL)
13
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Fina
ncia
l Act
iviti
es
Gov
ernm
ent
Ret
ail T
rade
Con
stru
ctio
n
Oth
er S
ervi
ces
$'s
B
2010
MANUFACTURING IS OURTHIRD LARGEST INDUSTRY
MA
NU
FAC
TUR
ING
NAT
UR
AL
RES
OU
RC
ES
& M
ININ
G
14
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Pittsburgh MSA Pennsylvania US
GD
P ($
MIL
)/EM
PLO
YEE
2002200720102011
PRODUCTIVITY
+ 8.5%
+ 1.5%
+ 4.2%
15
EMPLOYMENT BY SECTOR
0
50000
100000
150000
200000
250000
300000
Edu
catio
n an
dH
ealth
Ser
vice
s
Pro
fess
iona
l and
Bus
ines
s S
ervi
ces
Con
stru
ctio
n
Info
rmat
ion
20082009201020112012
MA
NU
FAC
TUR
ING
NU
MB
ER O
F EM
PLO
YEES
+ 0.5% FROM 2011
‐ 9.3% SINCE 2008
16
FOUR TRENDS YOU SHOULD NOT IGNORE
17
TRENDS IN MANUFACTURING
US SHALE GAS AND LOW COST OF ENERGY
INNOVATION MANAGEMENT
ADDITIVE MANUFACTURING
SOCIAL MEDIA FOR BUSINESS
18
U.S. SHALE GAS AND SHALE OIL PLAYS
19
MARCELLUS PLAY
MARCELLUS PLAY COVERS 95,000 SQUARE MILES
20
WWW.MYMANUFACTURINGCONNECTION.ORG 21
WHERE ARE THE OPPORTUNITIES?
SUPPLY CHAIN21
PRODUCTION
EXAMPLE SUPPLY CHAIN OPPORTUNITIES
Source: www.eqt.com
EXPLORATION PRODUCTION
Geosciences (site)
Land Acquisition
Testing
Construction & Reclamation
Engineering Services
Hot Shot
Permitting
Trucking / Heavy Hauling
Water Hauling
Welding
Well Tie-in
GATHERING & TRANSMISSION
MIDSTREAM
Pipeline Construction
Compressor Station Construction
Clearing Services
ROW Maintenance
Pipe, Valves, Fittings
Measurement & Regulation
Environmental,Health & Safety
DISTRIBUTION
Infrastructure Repair
Billing/Collections
Pipe, Valves, Fittings
Meter Reading
Printing
Many otherservices & products
DOWNSTREAMUPSTREAM
22
ECONOMIC IMPACT EFFECTS
23
WHAT IS “INNOVATION”?“Introducing New Products / Solutions that create new or unique value to your customers and your company.”
Robert B. TuckerDriving Growth Through Innovation:
How Leading Firms Are Transforming Their Futures
24
25
BEST-IN-CLASS COMPANIES
Sources: 1) PDMA, 2004 NPD, Comparative Performance Assessment; 2) R. G. Cooper, Product Leadership
NPD revenues range from
of total revenues and also generate a significant
portion of profit
of projects meet profit objectives
are considered commercial
successes & are launched on-time
80% 2/3 20-50%
25
WHAT IS THE VALLEY OF
DEATH?
MARKET-READYTECHNOLOGY
EARLY STAGETECHNOLOGY
26
A DOSE OF REALITY:CAUSES FOR NEW PRODUCT FAILURE
PERCENTAGE OF CAUSES CITING
R. G. Cooper, Winning at New Products, pp 385 ‐386 / Markides, Constantinos. 2000. All the Right Moves, Harvard Business School Press27
PLAN SELECT DESIGN COMMERCIALIZE
PLANFOR PRODUCT DEVELOPMENT
SUCCESS
SELECTTHE BEST IDEAS
DESIGNPROTOTYPE AND
TEST QUICKLY AND EFFECTIVELY –
ADDITIVE MANUFACTURING
COMMERCIALIZEWITH STRATEGIC
SALES AND MARKETINGBEST PRACTICES –
SOCIAL MEDIA
28
ADDITIVE MANUFACTURING
Source: ExOne Presentation to PEDA Conference, Oct 2013
ADDITIVE MANUFACTURING OR 3D PRINTING
The process of making solid objects of any shape from a digital model by layering material together.
Some processes require bondingagents, laser, or post process.
29
AM AND INNOVATION MANAGEMENT
• Functional parts• Prototypes for fit and assembly• Patterns for prototype tooling• Patterns for metal castings• Visual aids (for engineers, designers…)• Presentation models• Education/Research• Tooling components
(Created directly on AM systems)• Other
Most Common uses of Parts Built on AM Systems:
Source: Wohlers Report 2013: Additive Manufacturing and 3D Printing, Worldwide Progress Report, Wohlers Associates30
Community (Membership)Resources (Facility, equipment and training)Projects (Competitive, University led)Source: https://americamakes.us/
US INVESTMENT IN ADDITIVE MANUFACTURING
31
LINKEDINLINKEDINTWITTERTWITTER
FACEBOOKFACEBOOKYOUTUBEYOUTUBEGOOGLE+GOOGLE+
SOCIAL MEDIA – THE BIG 5
MY MANUFACTURING CONNECTIONMY MANUFACTURING CONNECTION
OUR REGIONAL MANUFACTURING COLLABORATION SITE
32
SOCIAL MEDIA USAGE
Source: Pew Research Center’s Internet & American Life Project surveys: 02/05, 09/06, 05/08, 04/09, 05/10, 05/11, 02/12.
SOCIAL NETWORKING SITE USE BY AGE GROUP 2005-2012
33
Manufacturers in general have been slower to fully adopt social media but things are changing rapidly…
Kennametal is a $3B maker of tooling for mining, construction, aerospace, defense and other industries located in Latrobe, PA
IS THE INDUSTRY USING SOCIAL MEDIA?In 2012, Kennametal announced that they will be using Twitter, LinkedIn, Facebook, YouTubeand Google+ to:
• Answer questions / customer service
• Recruit the best talent• Make it easy to find info on their products and services
• Interact with their suppliers and dealers• Announce upgrades to their products & process improvements
• Promote events like Manufacturing Summit
• Direct traffic to their blog and web site
• @Kennametal on Twitter
34
WRAP – UPNATIONAL PERSPECTIVE ON
MANUFACTURING STRATEGIES
35
• Capitalize on lower energy costs
• Develop a better understanding of the importance manufacturing and the need for facilitating institutions.
• Make the US more competitive for manufacturing by lowering tax rates and modernizing infrastructure.
Source: “21st Century manufacturing Challenge: The Role of the MEP Program”, The National Academies of Science, 2013 © Charles W. Wessner Ph.D.
NEW (RECOMMENDED) US MANUFACTURING STRATEGIES
36
• Spur innovation on next generation technologies though support for manufacturing institutes, investments in manufacturing R&D
• Strengthen workforce skills and regional clusters
• Improve market access with trade agreements
Source: “21st Century manufacturing Challenge: The Role of the MEP Program”, The National Academies of Science, 2013 © Charles W. Wessner Ph.D.
NEW (RECOMMENDED) US MANUFACTURING STRATEGIES
37
THANK YOU!
PETRA MITCHELLPresident and CEOCatalyst Connection
412‐918‐4265E‐mail: [email protected]
38