Manufacturers Can Work Together During Tough Times
No one can doubt the past few years have been the toughest anyone in manufacturing can remember, and the whole state has felt the pain of Michigan's economic transformation away from an auto-based economy.
In 2000, the capital area boasted 28,000 manufacturing jobs, which fell to 20,000 in 2008. By July 2009, there were less than 16,000 manufacturing jobs in the Greater Lansing area. The region lost 12,000 manufacturing jobs in one decade alone, reflective of national trends in a struggling industry.
Against all odds, in the toughest manufacturing climate ever, a small group of manufacturers came together in Lansing to see what they could do to make their industry, and themselves, stronger.
So the Capital Area Manufacturing Council was founded, and as this year ends, the council celebrates its fifth year of bringing manufacturers together for the strength of the industry, and the strength of the individual companies.
During the past five years, the council has helped to establish and facilitate a functioning network of manufacturers in which businesses work together to compete for business, solve common problems and share best practices. The peer-to-peer network has helped one another to make sure all Greater Lansing manufacturers can avoid OSHA arc-flash violations, develop effective tornado evacuation plans and combat the H1N1 virus, to name a few shared conversations.
This group of businesses has recognized that by working together they can save time, effort and ultimately money.
Not only has working together helped manufacturers save money, but also it has helped them make money. By partnering with economic developers such as Leap, Inc. and Prima Civitas Foundation, and with organizations such as NextEnergy and Michigan State University, local manufacturers have connected with real business opportunities.
The council has helped companies establish contracts to bend and shape metal, build bio-sensing medical devices, fabricate laboratory equipment for MSU research engineers and develop localized supplier lists.
Together with their peers, companies such Metalists International and Diamond Automation have landed hundreds of thousands of dollars in business through council contacts.
In addition, the council has invested in local manufacturers. During the past five years, a million dollars in incumbent worker training has been granted to local manufacturers to train more than 2,000 workers. The training helps build employees skills in LEAN, quality, team building, leadership, welding and more to help individuals and companies be more competitive in the manufacturing environment. Lansing Community College's Business and Community Institute has worked hand-in-hand with companies to develop on-demand relevant training for the industry.
While no one can say what the future will hold, there's a sense things are improving, or at least not getting worse. Manufacturing in the state posted gains for portions of 2009, Greater Lansing's General Motors Delta Township plant added back jobs resulting in supplier callbacks with the potential for more business in the region as the Chevy Traverse moves production to Lansing next year. Plus, many of the region's companies are committed to diversification and creating sustainable manufacturing business models built on new products, new industries and new materials. Greater Lansing is not just home to auto manufacturing but also wind turbines, medical devices, defense, nanotechnology and machine-building.
The area is home to a growing bio-based and high-tech manufacturing sector, as headquarters of companies such as KTM Industries and Niowave. Between recalls and growth, the sector is actually expected to post gains through the end of 2009 and into early 2010.
One major challenge the council faces is the negative image of the industry. Though there will be fewer jobs in manufacturing in the future, the industry will still need workers, particularly those with high-end skills such as engineers. The view that manufacturing is dead can bring about a self-fulfilling prophecy. A shrinking pool of young people interested in manufacturing means classes are unfilled and training infrastructure disappears or is difficult to maintain. With strong resources and partners in education like Lansing Community College and Michigan State University, the region has the ability to train and retain top-notch manufacturing talent.
For the past five years, I have had the privilege of serving as the council's executive director. I want to extend my heartfelt thanks to the council's members for their support of the CAMC network, our programs and for the commitment to working together for the good of the region.
I want to thank all of the partners and associate members we have been fortunate to work with the past five years and recognize that without their contributions, our region's manufacturing industry would have fallen upon even harder times. Manufacturing will never truly "die" in Greater Lansing if we continue to work together as an industry and embrace the culture of innovation and entrepreneurship upon which our industry was founded.
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Bob Sherer is the executive director of the Capital Area Manufacturing Council. For more information, visit www.camconline.org. |
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