With legislative gridlock in the forecast, can U.S. manufacturing sustain its technology agenda?

President Biden’s enthusiasm for U.S. manufacturing in the final days of the election belied a simple truth for Democrats: As important the message, it constitutes much of what passes for the party’s economic agenda. Biden’s Dems rode a mix of issues to a surprising outcome last night; one can imagine a far different result if a vision for American prosperity had been more of a focus early on.

With a Congressional red lean still likely, alongside a blue president, U.S. companies are facing legislative gridlock for the next two years, a prospect that appeals to some but certainly not to those invested in seeing through pro-manufacturing federal initiatives that Biden’s Department of Commerce has teed up, in part through its NIST-sponsored Manufacturing Extension Partnership, or MEP, national network.

Biden’s team, including MEP national director Pravina Raghavan, have been at work aligning the 51 state- and territory-level MEP centers around uniform messaging and programming aimed to tackle manufacturing’s twin tormentors — workforce and supply-chain issues. At the MEP national network conference in Chicago in late September, Raghavan spelled out to me the common themes — in her words, the “connective tissue” — that will flow from the federal level through state MEP centers to local and regional manufacturers.

Raghavan highlighted a trio of obstacles that are front and center for most domestic manufacturers. “Supply chain — reshoring and filling supply-chain gaps — and MEP is named in Biden’s plan,” she said. “Workforce — I’ve yet to find a manufacturer that doesn’t have a workforce problem. And technology and innovation. Thousands of companies are still unsure it’s right for them. How do we help them understand how to take advantage of a cobot or AI on their line? That’s the mission of every MEP center with regard to technology — helping manufacturers do it but being there every step of the way, to make sure they’re not left on their own. Then, we take those best practices and share them across the national network.”

To Raghavan and Biden’s credit, this administration has successfully distilled manufacturing’s challenges to the seminal issues of the day: the acute need to uptool American manufacturers and upskill its labor force.

What’s critical, however, is that manufacturing’s technology agenda advances to the next level, where outcomes from tech and automation manifest not only in production outcomes and improved manufacturing processes, but in workforce outcomes, where STEM grads perceive a tech-fueled 21st century manufacturing sector as equivalent to a career in tech.

We’re a ways off. Our point of reference today is that automation will help overcome workforce challenges by filling in for hard-to-find employees, or else enable current workers to focus on more value-add roles as cobots, robots, and other tech assets tackle menial jobs. It’s a meaningful development in the sense that technology isn’t viewed as a threat to manufacturing employment anymore, but a stopgap, a means to counter the sector’s well-documented employment woes.

The future is much more exciting, where a new generation of tech-informed manufacturing equipment and infrastructure become a catalyst for growth — and a magnet for engineering graduates and entrepreneurs (like Summit Peak Manufacturing in today’s UT Mfg. Report) that transforms the public perception of a manufacturing career. One outcome would be a wave of new manufacturing companies inspired by, yes, tech nerds!

Gridlock or not, the good news is that the planning and innovation sure to accelerate momentum in America’s reawakened sector doesn’t originate in Washington D.C. — it’s in the DNA of companies and business leadership. That said, we’ll assume the best and hope that U.S. manufacturing continues to be a bipartisan cause celebre, with an outcome so clear and unvarnished that dysfunction in D.C. can’t derail its mission to uptool and upskill.

We’ll keep the pressure on.

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

Feast and Famine at the RMTMA Conference: Manufacturing’s generational opportunity and challenge

Machinists, fabricators, and brokers fueling a manufacturing boom along Colorado’s Front Range gathered in Denver last week wasted no time getting to the topic du jour — workforce development. Speakers at the 2022 Rocky Mountain Machining & Tooling Association (RMTMA) Fall Conference parsed workforce topics throughout the day, from retention to recruitment to change management, in response to the sector’s acute workforce need.

But a dearth of employees did little to dampen good feelings here about prospects for growth and new work. Demand for U.S.-manufactured products is strong — generationally strong. A decade or so removed from an historic crash, U.S. brands and contractors have refocused on domestic manufacturing. Domestic supply chains are in. Outsourcing is out.

For suppliers here, it means that as prospects for growth are high even as most pursue opportunity with one hand tied behind their back. Focused on Machining‘s Justin Quinn, the outgoing RMTMA chapter president, summed it up: “It’s easier to find a customer than a good employee.”

Angela Rose’s summary this week of challenges, opportunities, and needs of the manufacturers we’ve profiled so far in 2022, bears out the challenge of pursuing new business that’s there for the taking. Managing growth is the third-most cited challenge behind manufacturing’s two steady and pervasive headaches: supply chain and workforce.

Still, the need for human capital is this time framed against a backdrop of opportunity for domestic machine shops and OEMs that’s fundamentally different from anything we’ve seen.

I sum up this generational opportunity in three macro-trends powering a new golden age of domestic manufacturing:

  1. Offshore supply chains are irrevocably broken. Among the factors: We’re decoupling with China. It may happen over time. It may happen overnight.

  2. With business leaders joining the “Made in America” consumer movement, there’s enthusiasm economy-wide for U.S.-made products. Domestic production options are more competitive as companies see brand value in manufacturing here.

  3. We’re nearer to solving the workforce problem than we think. Automation and technology are set to catalyze manufacturing employment, not diminish it.

We’ll report on all the above in future editions, but today nothing is more important than funding a new wave of technology and automation in manufacturing. Outcomes would work at once to improve processes and products that would keep more work in the U.S., but also work to attract a new generation of STEM employees.

Eric Peterson’s report this week on automation and the manufacturing workforce alludes to the possibilities, including this from Summit Peak Manufacturing CEO Ken Curry in Murray, Utah:

“As we grow this business, we don’t want to just grow it by employees,” he says. “We want to grow by automation, by use of robots, and different things we’re interested in doing.”

That makes for different prerequisite skill sets, and a pair of employees in their twenties are up to the task. “They’re really adaptable to automation,” says Curry. “A lot of the challenge is to keep them challenged. That’s a big thing for us: We want to give them opportunities to be challenged.”

Imagine manufacturers competing for engineering and technical talent graduating from the university system. It would fuel exponential employment growth in the sector, through a generation of new companies. We’re nearing that point.

How to accelerate the momentum? For starters, it’s crucial to align the vast ecosystem of money — grants, opportunity funds, and the like — toward helping small manufacturers automate.

And quickly: The Hill recently quoted Deputy Secretary of Defense Kathleen Hicks, who “noted that over the past decade, the number of small businesses in the defense industrial base shrank by over 40 percent. ‘The data shows that if we continue along the same trend, we could lose an additional 15,000 suppliers over the next 10 years.'”

Tooling up small manufacturers is a vital step to stop the slide.

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