Leave politics behind to find the formula for manufacturing success

“I am really, totally committed to bringing back manufacturing.” –– Hillary Clinton, campaigning in Ohio

Most every candidate running for president has pledged to support U.S. manufacturing. Apparently one thing we agree on is that too much has been lost by outsourcing so much manufacturing in so little time. Ask consumers, businesses, you name it: We want to make more things here.

We don’t agree on how, though. Leaders of both political parties blame agreements like NAFTA and the pending TPP for emptying the cupboard of U.S. jobs, presumably because voters do. But America’s most influential manufacturing organization, the National Association of Manufacturers (NAM), sees it the other way.

Jay Timmons, CEO of NAM, believes free trade agreements work for manufacturers and the U.S. I’ve heard him acknowlegde the difficulty of the issue, but suggest that the positive trade balance we enjoy with most treaty-bound partners makes them worthwhile. Nevertheless, NAM disagrees with much of its rank and file. Free trade is a non-starter for candidates running in Ohio, or Michigan, or Pennsylvania, states where national elections now pivot.

Politics aside, there’s a growth formula we can agree on, one shaped not in the political sphere but of course by industry, by the companies already leading a manufacturing revival and by lessons being learned. It’s not to say that elements of a campaign framework aren’t helpful or relevant. Some are. Hillary Clinton suggests we ‘Expand access to capital, especially for smaller manufacturers,’ a goal we agree with. We’ll host the second annual manufacturing growth and investor conference in Denver this summer — with a Utah version to follow. Growth manufacturers need money.

In addition to capital, our simple blueprint would:

1. Acknowledge that in most of America, manufacturing looks different that it did generations ago — and respond accordingly.

Federal Reserve data we published last week provides a roadmap as to where manufacturing is growing fastest. It’s an important guidepost as we consider a growth strategy:

A half-dozen or so sectors have reached their all-time peak production levels in the past year, including manufacturing sectors critical to the economies of Colorado, Utah, and much of the West: semiconductors, food, medical equipment, electronics and aerospace equipment.

If you were skeptical this region wasn’t at the center of the new manufacturing economy, think again.

2. Connect manufacturers with qualified business partners.

As we reshore jobs and develop new opportunities, the challenge for manufacturers is finding qualified, compatible business partners. Manufacturers need a robust supply chain. In many ways ‘business development’ means making it easier for manufacturers to find qualified business partners.

I read an analyst last week bemoan the amount of time and energy U.S. industry has invested in studying, building, analyzing, and awarding global supply chains as its domestic counterpart languishes. It’s a powerful observation. But the time is right to redouble efforts: U.S. manufacturing is suddenly competitive. A push to develop a world-class domestic supply chain should pay off.

3. Support manufacturers with modern, innovative economic development and marketing.

We’re investing millions in training, retraining, and education. In Colorado and Utah, taxpayer dollars are funding infrastructure programs, including high-tech ‘advancement’ centers. What’s also needed is economic development that’s well-aligned with manufacturing, including public/private partnerships to incubate and accelerate manufacturing companies in food and beverage, lifestyle and consumer goods, and other high-growth industries.

They dot the lancscape in the tech space. But technology’s most glorious manifestations are brought to life by manufacturers. Think Apple.

Capital. Connectivity. Training and business development. A simple plan that even the most ideologically opposed observers can agree on.

Bart Taylor is publisher of CompanyWeek. Reach him at btaylor@companyweek.com.

Trump’s apparel manufacturing strategy open to debate

Enter manufacturing into the GOP presidential debates.

Is it reasonable for Marco Rubio to criticize Donald Trump for manufacturing his clothing line in China and Mexico and not the United States? Yes and no.

As we’ve chronicled the past two years, it’s simply not feasible for most high-volume apparel brands to locate primary manufacturing in the United States. The recent push to reestablish viable cut-and-sew infrastructure domestically notwithstanding, the U.S. effectively gave up on making apparel and sewn products like athletic shoes three decades ago.

Supply Chain Digest published Federal Reserve data recently that demonstrates the point.

The Federal Reserve began tracking manufacturing output by ‘Key Sectors’ in 1985. The apparel industry “saw its peak output level all the way back in January 1986,” SCDigest concludes, “and since then, U.S. apparel production decline 82.3 percent, the most of any industrial sector.”

As a practical matter this means that most any apparel or sewn-product brands wanting to manufacture in volume must go elsewhere to find reasonably priced labor, or access to raw materials and other supply-chain resources. The Trump Collection’s no different.

Is Rubio correct in questioning Trump’s commitment to move manufacturing back to the U.S.? “The answer is he is not going to do it,” he proclaimed. “And you know why? The reason he makes it in China or Mexico is because he can make more money on it.”

More accurately, Trump won’t, likely because he can’t make any money doing it. He’d be out of business.

On the flip side, it’s possible to commit to a U.S.-made strategy, difficulties be damned. Two weeks ago, I was in downtown Los Angeles at American Apparel, meeting with Brad Gebhard, AA’s new president. Gebhard and a new management team are lifting North America’s largest apparel manufacturer out of bankruptcy with a new plan and renewed commitment to domestic-made clothing. AA employs thousands of sewers, assemblers, and finishers. It’s a miasma of immigrant labor, mostly, an eye-opening, teeming urban ecosystem. It’s a sight to behold.

A more nuanced critique of Trump’s manufacturing strategy would point out American Apparel’s commitment to an immigrant workforce, that U.S. apparel can make a comeback on a large scale given smart, reasonable immigration reform. The contrast with Trump’s remarks — and his business strategy — would be easy to make and reality-based.

Indeed, Trump could have made the gutsy and pro-manufacturing decision to invest in developing a more robust domestic manufacturing operation to support his apparel ambitions. We see it happening all over the U.S. in other industry sectors with companies from Tesla Motors to local upstarts like Modular Robotics.

The scale would be smaller but the potential upside greater — a brand informed by quality, by an authentic commitment to American workers.

Unfortunately, Trump’s apparel strategy betrays this new American-made ethos. His actions also keep American jobs offshore, when he has opportunity to invest in U.S. manufacturing and doesn’t, and where advocacy of immigrant labor would advance the economic discussion and not stifle it.

Rubio didn’t make that point — in part because he’s also yet to articulate a plan to reform immigration in a way that would boost U.S. manufacturing.

More next week on the Fed data outlined above: It speaks pointedly to Colorado’s manufacturing opportunity and our own shortcomings in pursuing a supercharged industrial comeback.

Bart Taylor is publisher of CompanyWeek. Contact him at btaylor@companyweek.com.

Carol Engel-Enright, sewing, with a RCAM trainee

Walmart says no, but rural Colorado’s apparel manufacturing initiative storms ahead

It’s tempting to say they never had a chance, really, this upstart bunch that somehow was selected a finalist for Walmart’s U.S. Manufacturing Innovation Fund.

The idea for Rural Colorado Apparel Manufacturing, or RCAM, was strong, so the submission was eye-catching and in keeping with Walmart’s push to support domestic manufacturing. But last month, Walmart informed CSU’s Dr. Nancy Miller and Carol Engel-Enright, along with the RCAM team including its visionary, Julie Worley, that they didn’t win. Walmart’s selections read instead like a laundry list of academic exercises with tertiary ties to manufacturing.

Think it’s deterred the group from pushing forward? Think again.

“It’s a blessing we weren’t selected for funding,” Engel-Enright says, with perhaps a hint of disappointment. How far would $300,000 have gone in rural Colorado? A country mile. But Engel-Enright insists a clean break will force RCAM to act like a real business. To develop realistic budgets, to generate revenue, control costs, and be accountable to investors.

As with any startup, it won’t be easy. But RCAM is one of a number of grassroots efforts aligned with the region’s incredibly active apparel and lifestyle business ecosystem, in this case intent on reconstituting a U.S. cut-and-sew workforce decimated by decades of offshoring and neglect, to keep jobs here instead of shipping more overseas.

Born from the 2014 Colorado Apparel Manufacturing Summit, Worley, a Phillips County economic developer, boldly envisioned that underutilized labor in the small towns of eastern Colorado could comprise a new workforce of sewers, assemblers, and finishers.

Enter RCAM. Today it’s more than an idea. RCAM-Wray center, in northeast Colorado, is up and running “in its third production run!” Engel-Enright states proudly, sewing long-sleeve T-shirts and hoodies with ‘kangaroo’ pockets. Today the Wray center employs six operators, led by Leslie Starks, who happens to have a fashion degree and acumen, it turns out, for the business side. “She’s caught on quick to industrial matters,” Engel-Enright says.

That RCAM-Wray is online — with centers in Julesburg and Ordway, Colorado, to follow — is testament in part to Engel-Enright’s unique skill-set, a combination of industry experience in fashion design and production, of owning and operating businesses of different stripes, of finding jobs for her fashion students in private industry and recently of a hard earned doctorate from CSU in education with an emphasis on design entrepreneurship. I tracked her down at CSU in early 2014 with the idea for a Colorado apparel manufacturing summit. It wouldn’t have happened without her.

Still, she’s realistic about the daunting challenge of developing apparel manufacturing infrastructure to compete with the Asian powers, in particular. “When it comes down to it, there’s no model out there, no blueprint to follow, to train a new generation of sewers and production specialists. We’re developing the plan and the process as we go,” she says.

That’s not to say the end results are also obscure. “We know the standard. We have to produce quality garments that measure up to the best in the world,” she asserts, but adds, “When do we know our efforts will translate into quality apparel? No matter how big the order, can we produce a quality piece?” More questions.

Early returns from the initial production runs and training sessions promise answers. “There’s no surprise about the quality of people we’re finding from these communities. They’re incredibly hardworking — we can’t get them to stop and take breaks!” she laughs. “But Julie and Darlene Carpio and others knew this would be the case. Rural America has so much to offer; there’s no doubt we can train a workforce to compete on an international stage if we’re smart about this.”

There are other needs — like equipment. “The Wray center’s working on knits, on flatlock machines [a sewing machine that creates a flat seam with the same appearance inside and out],” says Engel-Enright. “All three centers will have all the basics — straight stitch, overlock, and coverstitch. Julesburg is organized and investors are in place with deposits on equipment. We’re ready to go there when training and jobs are lined up.” But advanced cutting equipment and specialized sewing and finishing machines are much needed.

Without Walmart dollars, funding is the challenge. An Advanced Industry grant from Colorado’s Office of Economic Development and International Trade seems to fit the bill, but OEDIT views apparel-related business as a ‘Creative Industry’, not ‘Advanced Industry.’ The AI grant program is today under review; perhaps a revision will accommodate a wider cross-section of manufacturing industries.

All of which leaves Engel-Enright entirely unfazed. “These centers won’t replace Asian factories,” she says matter-of-factly, “but they will reduce barriers to entry for small business. A former student and budding entrepreneur told me, ‘What seemed insurmountable now seems possible.'”

Supporting a business-savvy academic would have been yet another benefit for Walmart, along with goosing domestic manufacturing and helping rural America ‘Live Better’.

Bart Taylor is publisher of CompanyWeek. Reach him at btaylor@companyweek.com with questions or information about the 2016 Colorado Apparel Manufacturing Summit, September 28 in Denver, Colorado.

Focus on the supply chain to develop, recruit manufacturing brands

Last week’s column on Colorado’s rural apparel manufacturing initiative easily became the most-read article in CompanyWeek this year, thanks to a big assist from Fashion Association Denver and others who posted the content on social media.

Denver’s fashion scene is very interested, it turns out, in the prospect of making more apparel and sewn products here. I pass this along to reiterate the importance of manufacturing and the supply chain to modern consumers who increasingly favor locally made products.

Are fashion professionals and enthusiasts an anomaly? Are they alone in paying closer attention today to the means of production, to where goods are made and who’s making them? Or wanting a more involved role in decisions about materials and processes and the quality of goods being produced? Of course not. Colorado’s craft food and beverage makers have empowered a new generation of U.S. consumers, in part through brands and products conceived and made locally, with high quality as a calling card.

There’s high interest in the apparel manufacturing initiative because the prospect of local, widely available production resources would represent profound change for apparel and fashion professionals who’ve grown accustomed to prototyping and producing in Asia, or Los Angeles and New York, even for small-batch runs.

This must sound familiar to manufacturers in other industries. Companies conceive and design products here only to outsource production to familiar offshore producers or through services like Alibaba. We’ve created a much-admired ecosystem in Colorado to incubate ideas and intellectual property and companies. We’re not close to developing an equally capable supply chain for manufactured products that would speed go-to-market and provide sustained support as the business and production scales. To put it another way, we’re unsure how important our means of production are.

It’s part of our collective struggle with manufacturing. Nationally, we’re divided over whether free-trade agreements like TPP hurt or help U.S. industry. We can’t decide whether manufacturing is key to future economic prosperity or a bygone sector passed over by a technology and service economy. Locally, we send mixed signals about the importance of manufacturing. Everywhere, we’ve essentially whiffed on training a new generation or two of industrial and vocational workers.

Here’s a suggestion: Let’s connect more brands with means of production and begin viewing economic development through the lens of a robust supply chain.

In part this means equal focus on incubating companies and brands but also on developing the service and supply network necessary to support them. It’s a long list. Manufacturing and maker businesses need raw materials, advanced equipment, and transportation infrastructure. They need skilled labor, capital, technology, and go-to-market expertise.

The bright spots are certainly bright. The state’s universities are churning out a stream of engineers and graduates with advanced degrees to populate high-tech companies. Regional tourism and lifestyle attributes attract a steady stream of motivated, talented entrepreneurs. And the region’s bellwether brands are attracting resources and providing leadership to break through the most intractable challenges, like workforce development.

There must be more. Manufacturing will grow only as fast as a broad-based, cross-industry supply chain develops to support it.

A growth economy awaits.

Bart Taylor is publisher of CompanyWeek. Reach him at btaylor@companyweek.com.

Manufacturing a dizzying tale of two sectors

Last month’s flat PMI set off another round of hand-wringing by the national business press, the latest in the entertaining spectacle of media deciding manufacturing’s fate.

Pundit’s are confused — often in the same article.

From MarketWatch in late January, “Opinion: U.S. manufacturing teeters on the edge of recession“:

“Capital spending is down.” Bad news. “But production and hiring are still rising.”

Whew.

But hold on. “Some people are using the ‘R’ word. They are saying that U.S. manufacturing is in a recession.”

Not good.

“Spoiler alert: The preponderance of the evidence shows that the factory sector has decelerated but is not in a ‘recession’ yet.”

Relief!

Well, not so fast. A headline in Business Insider the same week exclaimed, “Manufacturing is still in recession.” Rats.

“We got the two big data points on U.S. manufacturing during January on Monday. They both showed that new orders from American manufacturers picked up last month while job gains slowed.”

I thought hiring was still rising? Confusion.

“And overall, the sector is still in recession.” Damn.

“The Institute of Supply Management’s PMI shrank for a fourth straight month and came in at 48.2, versus 48.5 expected. Any headline reading below 50 is in contractionary territory, and prints under 45 are historically associated with recessions.”

But we’re over 45. So we’re not in recession? Exhale.

Enter Bloomberg Business:Manufacturing in U.S. Shrank in January for a Fourth Month.” Here we go again.

Subhead: “New orders, a leading signal for production, resume expansion.” Expansion! We’re back!

“The 48.2 reading,” was “lower than the 48.4 median forecast in a Bloomberg survey of 79 economists. Levels less than 50 for the gauge indicate contraction.” What? We’re contracting again, within two paragraphs.

Not really! “This may be signaling the start of some stabilization in manufacturing activity and U.S. economic activity,” said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities USA LLC in New York.

The patient is stable.

Seriously, I could go on.

To be fair, it’s easy to understand why analysts are confused. Manufacturing is bipolar. It’s in transition, one that confounds even as we glimpse a promising future.

It’s a sector that doesn’t matter anymore. Or it’s a bellwether.

Exports are struggling. But domestic consumption is rising.

Energy’s in the tank, but other industries are high-growth.

Manufacturing labor is retiring or just entering the workforce — with a shortage in between.

And more.

Who said manufacturing is boring?

Bart Taylor is founder and publisher. Reach him at btaylor@companyweek.com.

Finalists in the inaugural Colorado Manufacturing Awards are uber-competitive

One reason we waited to develop an awards program for manufacturers is because business is awash in awards. But with knowledge gained from writing about 400-plus manufacturers in two years, and a big push from Manufacturer’s Edge, the NIST manufacturing extension partner in Colorado, we think the time is right for the inaugural Colorado Manufacturing Awards .

And we’re well underway. The theme of the 2016 awards is U.S. manufacturing competitiveness. Following are three finalists in nine industry categories and the supply chain, selected from nominations received in November and December 2015. What sets these companies apart? They’re game changers in their respective sectors, uber-competitive companies reimaging how we make things but also teaching us again why it matters.

Join us April 6, 2016 from 5-7 p.m. at Denver’s ART Hotel for the Colorado Manufacturing Awards reception, where category winners will be announced.

Contract Manufacturing

Faustson Tool (Arvada)

NFT/Paradigm (Golden)

Primus Aerospace (Lakewood)

Supply Chain

Arrow (Centennial)

Colorado Malting Company (Alamosa)

Primeflex Labels (Englewood)

Industrial

Reynolds Polymer (Grand Junction)

Wolf Robotics (Fort Collins)

Woodward (Fort Collins)

Food & Beverage

Fresca Foods (Louisville)

Infinite Monkey Theorem (Denver)

Noosa Yoghurt (Bellvue)

Beer & Brewing

Avery Brewing Company (Boulder)

Ska Brewing Company (Durango)

Wild Goose Canning (Boulder)

Lifestyle & Consumer

Never Summer Industries (Denver)

Otter Products (Fort Collins)

Voormi (Pagosa Springs)

Energy & Environment

PureVision Technology (Fort Lupton)

Tri-State Generation (Denver)

Vestas Towers (Pueblo)

Bioscience & Medical

AlloSource (Centennial)

Mountainside Medical (Boulder)

Spectranetics (Colorado Springs)

Electronics & Aerospace

Modular Robotics (Boulder)

Seagate (Longmont)

Sierra Nevada Corp.’s Space Systems (Louisville)

Built Environment

GE Johnson Construction Co. (Colorado Springs)

Prescient (Denver)

RK (Denver)

We’ll expand on why these companies were selected in the winter issue of MFG, CompanyWeek’s quarterly print companion, to be published in early February and online at www.companyweek.com.

Category winners from this select group will be announced at a reception in early April — and everyone’s invited. We’ll celebrate the 10 companies who win but more than that the makers and manufacturers in our midst. Time to convene. More information will be forthcoming.

Bart Taylor is publisher of CompanyWeek. Reach him at btaylor@companyweek.com.

Utah, Colorado competition heating up before cooperation is the norm

Two weeks ago, the Denver Business Journal reported that a national nonprofit organization with ties to outdoor recreation is poised to choose between Utah and Colorado for its new home, with a move sometime in 2016. That’s no surprise to us; we’ve been speculating for over a year that both states will benefit from a growing trend among startups and established lifestyle companies to make the Rocky Mountains including the Wasatch Front, home.

I wrote about one company, Mercury Wheels, that relocated to Ogden from Mississippi after narrowing their choice to Colorado and Utah, and guessed at the time it would be an exercise duplicated often by other companies as the region’s lifestyle attributes and focus on business prove hard to resist.

Colorado has gone so far as to copy Utah’s Office of Outdoor Recreation as a means to fully develop industry-cluster strategies and gain a competitive edge in recruiting and developing lifestyle businesses. Fiona Arnold, executive director of Colorado’s Office of Economic Development and International Trade, was excited about the development in the DBJ article.

“We know that the outdoor recreation industry is a really booming and growing industry. And for quite a while, Utah was kicking our butt,” Arnold said in the DBJ. “Being able to recruit this organization if we can really starts to bring critical mass in the outdoor recreational industry to Colorado and allows us to be able to say we really own this space.”

Arnold would likely acknowledge that simply creating the office and hiring a director to staff it won’t overcome Utah’s two- or three-year head start. Nor will landing a single company constitute ‘owning’ the space.

A more likely scenario is that each state will benefit from numerous relocations and a frothy startup environment for lifestyle companies regardless of economic development efforts. Colorado remains far away from developing a meaningful industry-cluster strategy to attract lifestyle businesses regardless of the development of its own Office of Outdoor Recreation.

For one, lifestyle manufacturers require a robust supply chain. Neither state can claim sufficient cut-and-sew labor to support gear and apparel makers; contract manufacturers required to machine and tool critical parts are here, but need sustained orders to invest in the sector and re-tool operations; and in Colorado, it’s unclear how ‘lifestyle’ intersects with the state’s economic development blueprint.

Despite this, industry is taking matters into its own hands. Lifestyle manufacturers like Osprey Packs sustain operations in both states. To them and others, what’s needed is less a competition between states and more cooperation to develop a support ecosystem that spans the region.

Until then, it’s each state for itself — except here, at CompanyWeek. We’re rooting for more ‘coopetition’ and less hyperbole.

Bart Taylor is publisher of CompanyWeek. Reach him at btaylor@companyweek.com.

Year ends with promise, challenges for Utah manufacturing

At the close of 2015, Utah manufacturing is a success story. It’s a narrative of cross-industry diversity, game-changing workforce possibilities, and high-tech momentum. It’s also challenged by the same headwinds facing regional and national manufacturers. The story of the Utah manufacturing renaissance is unfinished.

Utah companies are an impressive cast of characters. We know because we wrote about 70 or so Utah manufacturers across ten or so industry sectors last year. Among all manufacturers we wrote about, in Colorado and elsewhere, Utah’s Storm Bowling was CompanyWeek‘s most-read profile in 2015. This collection of entrepreneurs and established makers and manufacturers are reshaping Utah’s economy and leading a quiet resurgence in U.S. goods-producing prowess.

Much like neighboring Colorado, Utah manufacturing is evolving: food products is the fastest-growing sector, posting a 4.7 percent increase in employment year-over-year, driven by the state’s bellwether industrial producers like Lehi Roller Mills but informed by the leading edge of Utah’s wave of natural and organic makers like ProBar — already a national mover in the uber-competitive healthy snack bar space. Craft makers are certainly a compelling story here — with innovative, burgeoning craft brewing and distilling sectors developing here to slake increasingly local consumer tastes and parallel the momentum in the food sector. As we’ve seen across the West, they go hand in hand.

Utah boasts the region’s most organized lifestyle manufacturing sector, and in the race to attract apparel, ski and snowboard, cycling and outdoor gear manufacturers, well-managed industry- cluster strategies are important. Increasingly, cooperation across Utah’s business, higher-ed and governmental entities is a selling point for entrepreneurs and corporate relocation executives alike.

Workforce issues will continue to test Utah’s manufacturing resurgence. The most prevalent challenge reported by Utah companies in CompanyWeek is finding and nurturing quality employees. Despite the state’s string of wins as nation’s most business-friendly state, manufacturers here will hit a wall; growth in Utah’s high-tech manufacturing sector, most notably, will strain higher education as systemic changes — including more job-shadowing and internship programs — don’t arrive fast-enough to alleviate pain.

The question is how the state will respond, and Utah seems uniquely positioned to make a workforce breakthrough. The combination of world-class universities, close-knit community, and favorable economic development variables leave Utah in the catbird’s seat. The scale of the workforce challenge feels more pronounced in neighboring Colorado; other states seem less focused on people.

But labor is just one component of an evolving supply-chain that will determine how far and how fast Utah’s manufacturing economy can grow. Today, high-tech fabricators and industrial firms looking to replace retiring stalwarts feel the labor pinch most. Elsewhere, natural and organic food companies need more locally produced raw materials. Technology is a catalyst if it’s available, a barrier if not; ask apparel and sewn-product companies making skiwear and outdoor gear. Generally, manufacturers need a more robust supply chain, and that’s an ingredient often lost on those who support business.

For our part, we’ll focus our editorial efforts in 2016 where we left off this year: shining a light on Utah’s growth companies to inspire and inform likeminded companies; profiling more supply-chain companies including contract manufacturers to facilitate meaningful connections that advance business; and advocating policies and public-sector investment that provides a foundation for more U.S.-made goods.

We’ll do so in 2016 without a co-branding partnership with the Utah Manufacturing Association, one that helped us find and write about Utah’s top manufacturers when we launched over a year ago. It’s a good time for CompanyWeek to go its own way as independent media and for UMA to focus on what it does best.

We’re thrilled to have one of Utah’s finest, Alicia Cunningham, leading our editorial efforts. Email Alicia to encourage us to profile your business or help in other ways to continue to showcase Utah’s incredible manufacturing sector.

Bart Taylor is publisher of CompanyWeek Utah. Contact him at btaylor@companyweek.com.

7 manufacturing stories to watch in 2016

Here are seven manufacturing stories we’ll be following closely in 2016:

1. Craft beer’s pivotal year. Two key ingredients of Colorado craft’s successful formula — its specialty sales channel and local ownership — may be tipped over in 2016. How will the sector respond? In November voters will likely decide whether grocery stores and other retail outlets can sell craft beer and wine, a move opposed by much of the craft ecosystem including the state’s network of thriving small liquor stores. The craft sector may have lost an important ally in the debate with the sale of Breckenridge Brewery to Anheuser-Busch, and may lose more. With rumors of a billion-dollar sale of New Belgium swirling, 2016 may be the year that Colorado craft’s united front against ‘big beer’ finally cracks. To what end?

2. Welcome to the (food) revolution. Food brands and manufacturers here are leading a sea change in what we eat and how we grow, make, and distribute our food. Brands flock here to be part of the scene and local companies are targets for takeovers. It’s a poster-child for the new manufacturing economy – entrepreneurial, innovative, ‘Made in America’ — and a model other states emulate. It’s also the fastest-growing manufacturing sector in Colorado. Storylines should be plentiful in 2016.

3. Will McCain’s antics derail one of Colorado’s signature aerospace manufacturers? In a pique over Ukraine, Arizona Senator John McCain led a congressional effort to ban the use of Russian RD-180 rocket engines used by Colorado aerospace manufacturer United Launch Alliance. As the company maneuvered around the politics McCain made it his personal mission to vilify ULA, one of Colorado’s signature companies. Alabama senator Richard Shelby fought back (ULA assembles its launch platforms in Alabama), securing more RD-180s as part of the 2016 federal budget. But is damage done? With dozens of government-funded launches planned in the near future, and ULA competitor SpaceX seemingly more viable than ever, it’s a good bet McCain will do everything he can to undermine ULA. Will Colorado senators, silent to this point, join the battle on behalf of a Colorado manufacturer?

4. Local sourcing: a new supply chain may light a fire under lifestyle manufacturing. Quiet but important grassroots efforts are underway to develop new supply-chain options for lifestyle and consumer brands — like a rural network of cut-and-sew centers. And why not? The region is a magnet for outdoor gear and apparel companies, for smart, visionary entrepreneurs with ambitions to launch and develop lifestyle companies. We seem far away, though, from a world-class supply chain that might actually begin attracting gear, apparel, or other consumer OEMs to Colorado. But small steps are important. And people are starting to get it.

5. What return on taxpayer investments in manufacturing? In addition to the space program, federal taxpayer dollars are flowing into the state to fund other programs designed to benefit manufacturers. Millions have already been spent on workforce development. CAMA’s FourFront initiative will spend $6.6 million in support of defense diversification and innovation. The City of Loveland, Colorado School of Mines, Manufacturer’s Edge and others will be investing taxpayer dollars in support of manufacturing. The initiatives hold promise but more government spending means higher taxes and with business over-regulated as it is, manufacturers reasonably expect to see tangible benefits in 2016 from the spend. (John Tamney’s brilliant Forbes column provides the backdrop.)

6. Pot’s impact on manufacturing. It almost goes without saying, but Denver’s future as a modern urban manufacturing center may hinge on the availability of affordable commercial real estate. Pot grows have radically changed the market. It’s bad form to root for the real estate bubble to burst, so instead, let’s hope the price of marijuana goes the way of oil and crashes, leaving pot businesses less well-heeled and the market less inflationary. It’s actually a good bet. If it happens we’ll remind you we told you so.

7. The rehabilitation of manufacturing’s brand — or not. Last year we chronicled the national debate regarding a U.S. manufacturing ‘renaissance’. By year’s end, the dialogue was less a lively back and forth and more a rout: Most business writers, like Jon Talton of the Seattle Times, had effectively buried the idea of a manufacturing ‘comeback’ in the bottom of a $40 barrel of oil, alongside a strong dollar hammering U.S. exports, or relative to manufacturing employment numbers from circa 2007, before a recession bludgeoned a sector already reeling from a wholesale offshoring of jobs.

To be fair, the reimagining of manufacturing is lost on local media as well; Colorado scribes often can’t identify a manufacturing company when they see one. It’s also hard to be critical of critics when manufacturing’s own advocates lose sight of the issue. ‘Re-branding’ was once a stated objective of manufacturing trade efforts. Today, not so much.

Our story is that manufacturing employment has returned to pre-recession levels in places like Colorado and Utah and that jobs are being created in a sector reinventing itself with technology and driven by consumer and business trends that today favor more locally produced goods. High-tech fabricators in aerospace and biomedical and food and beverage manufacturers will blaze a way forward. The future’s bright.

We’ll stick to it in 2016.

Bart Taylor is publisher of CompanyWeek. Reach him at btaylor@companyweek.com.

CACI, Colorado’s state chamber, to partner on Colorado Manufacturing Awards

We’re pleased to announce that the Colorado Association of Commerce and Industry, the Colorado affiliate of the National Association of Manufacturers (NAM), has signed on to support the inaugural Colorado Manufacturing Awards. CACI will anchor an association presence that provides national reach and exposure for this long-overdue business recognition program. The Colorado Manufacturing Awards (CMA) is co-presented by CompanyWeek and Manufacturer’s Edge.

Dave Tabor, senior vice president of business partnerships for CACI, was instrumental in crafting a collaborative framework with NAM, the Washington D.C.- based standard-bearer for U.S. manufacturing. “The Colorado Association of Commerce and Industry (CACI) is a proud partner of the Colorado Manufacturing Awards,” Tabor said. “Even as the profile of manufacturing has risen over the last several years, there is much more to do, particularly to promote opportunities for entrepreneurs, operating manufacturers, investors and career seekers. The Colorado Manufacturing Awards is an effective platform to promote these opportunities in Colorado.”

A substantive awards program involving a wide cross section of manufacturing industries is overdue. At the same time, it was important we do everything we can to distinguish CMA from year-one. CACI’s participation helps, and for us, establishing a meaningful national connection to begin showcasing Colorado manufacturing is a plus. We’re excited about the inaugural year, but very enthusiastic about proving the value of the program in years to come. Excellence is Colorado manufacturing ensures our success.

We’re extending the nomination deadline to December 31 to allow CACI and NAM to communicate details of the event to their members. Finalists will be previewed in the winter 2016 issue of MFG magazine, publishing late January or early February. A gala event to announce winners and convene the community will be held in early spring.

For those of you who’ve already nominated worthy candidates, thank you! Please contact Tom Bugnitz, CEO of Manufacturer’s Edge, Dave Tabor, or me with questions or comments.

Bart Taylor is publisher of CompanyWeek. Reach him at btaylor@companyweek.com.