We’ve reported how Colorado lags in large manufacturing-related infrastructure investments, but despite another subpar year relative to other states, a flurry of recent activity lately demonstrates how things could be changing.

Last week alone, three significant new factories were announced, in three growth industries powering Colorado manufacturing. York Space Systems‘ new “mega-center” in Denver, Meati‘s 76,000-square-foot production facility, and Eldon James‘ sprawling new 100,000-square-foot medical-device factory are all eye-opening additions to the region’s manufacturing ecosystem.

I caught up with Eldon James President and 2019 Colorado Manufacturing Woman of the Year Marcia Coulson for a brief conservation last week.

CompanyWeek: You’ve been busy! Can you provide an update?

Marcia Coulson: Well, the pandemic has been a catalyst for us. We never anticipated this, but beginning last spring we started supplying millions of parts for the ventilator project. We pulled out all our stock and began manufacturing as fast as we could to keep up with the demand. We got to work with ventilator companies throughout the world building ventilators. Ford actually wrote us a really nice letter thanking us for being part of their ventilator project. That felt really good for our company.

Then it shifted to producing the vaccines, and we supply a lot of components for the single-use systems that they use for vaccines, including the large plastic bags that they grow drugs in, instead of the stainless-steel systems. They migrated from stainless steel because it takes about a week to clean between different drug lots, and they’re always concerned about cross-contamination from one lot to the next.

So they’ve migrated to these large plastic bags, and we make connectors that are welded into the bags, the tubing that’s connected to those fittings, and all the fittings downstream, including our new SeriesLock quick-disconnect product, that are used in the pharmaceutical industry as well.

We were able to supply components for Pfizer, Moderna, and J&J, and now we’re working on the Sputnik project and supplying a lot of parts for their vaccine program. It’s been exciting to play a small part in such an important initiative.

CW: Or a large part, as it were. I’m curious: You seemed so well-positioned, with a network in place, to plug right in to a national vaccine effort. How did that come about?

MC: We’ve been working more with pharmaceutical companies the past 15 years. When we built our first clean room, it was to manufacture products for that market. So it didn’t happen overnight; we’ve been working with these companies for that amount of time, building products for that industry. We’ve actually migrated to where 85 percent of our sales today goes to the pharmaceutical, medical device, and laboratory supply markets. We actually changed our business, as we were once also focused on automotive and industrial products. Thankfully, now 85 percent of what we manufacture goes to those three markets.

CW: Do you see that mix sustaining? I know there was interest in the beverage industry.

MC: Yeah, we’re not putting as much emphasis on the beverage industry. The pharma market requires quality, so they don’t necessarily beat you up on price. The beverage industry is very competitive, and there’s not as much margin in the products. It’s a fun industry! Just not one we’re putting a lot of focus on.

CW: Speaking of price, I picked up on something in our last conversation that stuck with me, that of the need, in your view, for targeted tariffs, or VATs, to enable domestic manufacturers to compete with Asian imports on price. Given what’s happened the past year, do you still see a need for measures to level the playing field?

MC: Well, we still need support with tariffs. However, one thing I think the pandemic has pointed out is that hospitals are starting to realize that maybe we don’t want all of our drugs and medical devices made in China. And they’ve finally caught on to that!

Take ventilators: Companies were manufacturing ventilators like crazy, but providers didn’t realize that every ventilator that was being used needed two filters — one to protect the ventilator and one to protect the patient — and those have to be changed on a daily basis. I had hospitals in New Jersey that were basically in tears because New York absorbed all the filters that were available in the market for the ventilators. There were none left for hospitals in New Jersey.

We realized that all of the filter media was made in China. We were done when we ran through the inventory. Add to that, for the manufacturers of the filters, the Chinese market was the top priority. I’m sure we lost some people because we couldn’t replace the filters on the ventilators. There’s no statistics to prove it, but it’s a scary thing, that all the filter media manufacturing went to China, and we couldn’t get it when we needed it.

We actually had a filter we were trying to get through the FDA so that we could manufacture filters here, but we just couldn’t get any traction as they were giving all their attention to approving ventilator manufacturers. Fortunately, as providers realized that fewer patients need to be on ventilators, things quieted down a little bit.

CW: But hospitals got the message?

MC: I do think it was a huge red flag for hospitals: “Maybe we oughta break this up and not buy the least expensive product.”

And as manufacturers, we can’t compete with China. There’s no way we can offer the same product at the same price. Medical devices do take humans to build and assemble and package and label and work in the regulatory side.

And something interesting has also come to light: We sell to China, and I know there are companies there that do what we do. To my customers, I’m like, “Why aren’t you buying Chinese products?” We’ve been told, “Well, we prefer in China for our medical devices to buy the higher-quality products made in the U.S., and we sell the U.S. our lower-quality products.”

What they’re saying is: “What we manufacture in China isn’t good enough for us, but it is for the U.S.”

We need more help from the government to equal out the playing field, to encourage hospitals to buy American-manufactured products, whether it’s a bonus program, or a tax-credit program to where they’re incentivized to to buy. Hospitals are under great pressure to make a profit; they’re going to be encouraged to buy the least expensive products.

CW: National policy issues aside, what can be done at a local level to encourage more manufacturing?

MC: We have a hard time hiring employees, so we need to encourage people to go to work, to go back to work. I’m not sure what we’ve created here — it should be interesting to see how it plays out. But we’re incredibly thankful to our great team.

CW: How many employees do you currently have?

MC: Between the two facilities — WilMarc and Eldon James — we’re at about 100.

CW: You’re doing a lot with 100 employees.

MC: Keep in mind we automate just as much as we possibly can so that we can compete on a global basis. We’re working really hard to automate. The new facility will be highly automated — but we still need people! They just don’t have to do the work equipment can do.

CW: Again, congratulations — and we’ll see you in September at the Colorado Manufacturing Awards Alumni gathering!

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

Finalists were announced last week in the 6th annual Colorado Manufacturing Awards. It’s our own March Madness, and the brackets are incredible.

More than 100 companies submitted nominations to the 2021 program, roughly 90 percent of all submissions. Nearly twice as many women were nominated for Colorado Manufacturing Woman of the Year than last year. Finalists earned their way here.

I participate in a selection committee that picks finalists, but I don’t judge or select CMA winners. I do have a front row seat to the proceedings. Here’s my “inside look” at the brackets.

Industrial Group

Industrial/Equipment Manufacturer of the Year

Twin Monkeys Beverage Systems | Aurora

StoneAge | Durango

Sundyne | Arvada

Aerospace Manufacturer of the Year

Redwire Space | Longmont/Littleton

MBK Machine | Longmont

Special Aerospace Services | Boulder/Arvada

Building/Construction Manufacturer of the Year

ROXBOX Containers | Denver

Colorado Timberframe | Lafayette

Encore Electric | Littleton

Bioscience Manufacturer of the Year

Birko Corporation | Henderson

Leiters | Englewood

Hirsh Precision | Boulder

Energy/Transportation Manufacturer of the Year

Keystone Tower Systems | Denver

Rubadue Wire Company | Loveland

Oribi Manufacturing | Commerce City

Industrial/Equipment Manufacturer of the Year may be the CMA’s toughest bracket. Twin Monkeys has fueled Colorado’s nationally renowned beer and beverage industries. StoneAge, in Durango, may be less known to Front Rangers, but read our profile and you’ll understand why they’re a powerhouse. Sundyne? Only one of the country’s top industrial pump and compressor manufacturers, from the maker mecca of Arvada. No joke. Your guess is as good as mine.

Bioscience Manufacturer of the Year presents an intriguing showdown between two stalwart OEMs and one of Colorado’s brilliant contract manufacturers. A celebration of a powerful Colorado industry supply chain.

Building/Construction and Energy/Transportation Manufacturers of the Year are fascinating brackets, a mix of successful companies, up-and-comers vs. established brands. Oribi is a rising player in composites. Watch out.

Aerospace Manufacturer of the Year is predictably strong. Redwire Space, newly formed this year to acquire space-related companies in an innovative new cluster model, including several established companies in Colorado, flashes serious bona fides with components recently landing on Mars. But Special Aerospace Services, including SAS Flight Factory, is a special company and CMA Alumni. Contract ace MBK Machine rounds out a great bracket

Consumer Group

Consumer Brand of the Year

Phunkshun Wear | Denver

FlyLow Gear | Denver

Moots | Steamboat Springs

Food Brand/Co-packer of the Year

Motherlode Co-Packing | Hudson

Root Shoot Malting/Olander Farms | Loveland

Keen One Foods | Boulder

Colorado Winery of the Year

Sauvage Spectrum | Palisade

Carlson Vineyards | Palisade

The Storm Cellar | Hotchkiss

Outstanding Craft Distiller

Storm King Distilling Co. | Montrose

Black Bear Distillery | Green Mountain Falls

Mystic Mountain Distillery | Castle Rock

Outstanding Craft Brewer

City Star Brewing | Berthoud

Denver Beer Co. | Denver

Holidaily Brewing Company | Golden

Cannabis Manufacturer of the Year

NuVue Pharma | Pueblo

Stratos | Pueblo

Medically Correct | Denver

Outdoor industry OEMs and brands have dominated the Consumer Brand of the Year category and this year is no different. Dan Abrams’ high-flying apparel brand, FlyLow Gear, squares off against two OEMs that manufacture in-state. Cycle manufacturer Moots is celebrating its 40th anniversary this year in Steamboat Springs. Substance and sizzle. Moots would be a #1 seed in the NCAA Tournament this year. FlyLow and Phunkshun Wear, a CMA winner in 2018 and three-time finalist, may need a buzzer beater.

Brands and co-packers don’t always meet in the finals in Food Brand/Co-Packer of the Year. In some years, finalists are one or the other. But it’s great when they do. At the epicenter of America’s natural and organic food ecosystem, each shapes the sector in profound ways. Motherlode and Keen One Foods are worthy representatives. Throw in malt maven Root Shoot Malting, and this bracket is tough to call.

Outstanding Craft Distiller finalists are on their way up. No surprise — the story of this young industry, with young players, is about the future, along with the whiskey aging in its barrels. Montrose’s Storm King Distilling Co. was a finalist last year. It may be enough to call them a favorite.

An annual CMA highlight is Outstanding Craft Brewer. The winners list is a who’s who roster, and the group competition has settled into an industry-defining exercise: Finalists are often a mix of established early-mover, middle-market success story, and industry innovator. No different this year. Three great companies, as much as brands. Berthoud’s City Star flat-out makes good beer. Denver Beer is an institution. Holidaily, an incredible innovator. Buckle up.

If the western slope means wine, then Pueblo increasingly means cannabis, and its Cannabis Manufacturer of the Year finalists may be starting a trend in the CMAs. But if Medically Correct is the geo outlier of cannabis finalists, from Denver, it’s also the gorilla of this group. Win or not, NuVue Pharma may well lead cannabis into a new science-based paradigm, while city-mate Stratos continues to impress. You can trust Colorado brands.

The Storm Cellar barely missed out on the finals in the inaugural Colorado Winery of the Year award last year, then went on to win gold at the 2020 American Fine Wine Competition and numerous other medals and accolades. (Take that, CMAs.) Innovation is now a calling card of Colorado wine, coursing through established wineries like Carlson Vineyards and Palisade neighbor Sauvage Spectrum. Stubbornly slow to change, the Colorado wine ecosystem is suddenly awake — and on fire. Will a CMA shift the balance of power to Hotchkiss?

Achievement

Colorado Manufacturing Woman of the Year

Amy Olson | Ready Foods | Denver

Alexandra Gold | Solid Power | Louisville

Heidi Hostetter | H2 Manufacturing Solutions | Longmont

Business Innovation | COVID-19 Response

OraLabs | Parker

LightDeck Diagnostics | Boulder

Titan Robotics | Colorado Springs

Advanced Manufacturing & Machining Award

Titan Robotics | Colorado Springs

Focused On Machining | Sedalia

Linear Manufacturing | Colorado Springs

Judging by the number of nominations, the Women in Manufacturing (WiM) Colorado Chapter is building a high-power following. The women who emerged from WiM board deliberations are leading in different industries — and different ways. Heidi Hostetter has been a finalist all three years of the award and works to advance manufacturing through a variety of initiatives. Alexandra Gold and Amy Olson lead in successful, innovative organizations. I don’t envy WiM’s choice after an impossible decision to narrow the category down to three finalists, but the celebration is off-the-charts worth it.

The Advanced Manufacturing & Machining award — CAMA AMMA as we call it, given the trade group‘s proctoring of nominations — measures continuous improvement through organizational investments. The selection committee was so impressed with the quality of nominees that it considered several of the companies for separate industry awards. A win-win. We’re anxious to report on the outcome.

Manufacturing’s stature has risen through the pandemic and for good reason: companies pivoted to provide key materials lacking in the U.S. supply chain. (Have we heard that before?) OraLabs and Titan Robotics contributed PPE and other material help. LightDeck Diagnostics (formerly MBio) crashed the national scene with a COVID-19 Total Antibody Test that detects antibodies to the SARS-CoV-2 virus to determine prior infection. Crazy innovative things are happening in Boulder County in manufacturing. See above.

Can anyone say bracket challenge?

We’ll be featuring all the finalists the next six weeks in the run-up to the 2021 CMA Winners Reveal and Finale, April 29. REGISTER HERE.

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

Any discussion of reshoring manufacturing jobs from China to the U.S. runs headlong into two realities.

First, American OEMs and brands outsource manufacturing for a reason: the combination of skilled labor, infrastructure, and materials in China is often unavailable onshore. As good as it sounds to reshore production — and the benefits of domestic manufacturing are compounding — companies must first ask the question, “Exactly what am I reshoring to?”

An inadequate supply chain in the U.S. provides an easy answer for many companies. Or, as Phunkshun Wear president Jay Badgley told me, “Reshoring was a term I heard frequently when the tariffs were announced, but I haven’t heard any manufacturer use it in months. I don’t know of any apparel brand that’s reshoring.”

Badgley’s outdoor industry apparel brand manufactures in Denver. He’s an outlier in an industry that found qualified, cheap labor in Asia decades ago, and that hasn’t looked back. Today the factories in China — and Vietnam and Bangladesh and other Asian outposts — that make shoes, apparel, accessories, and components used in the assembly of any of a thousand products, are world-class, funded by brands in America and around the world.

This, then, is the other barrier: As much as they’re demonized here, China’s a rational actor — and a manufacturing superpower. Meaning, they won’t give up manufacturing jobs easily. The Chinese have used U.S. investments in people and factories to build a highly advanced manufacturing ecosystem. As Badgley says, “Look at a jacket from The North Face. It’s a thing of beauty. The stitching, the technology, the quality. That coat couldn’t be made here, for a reasonable price.”

China is also incentivized to maintain superpower status by its staggering demographic conundrum. Sarah Rathke, a partner at Squire Patton Boggs and speaker last week at CompanyWeek’s Supply Chain Reality Check webcast, turned me on to James Kynge’s China Shakes The World.

Kynge says this about what he calls China’s “population paradox”: “Even when the economy grows at 9 or 10 percent, it fails by a margin of several million to create the 24 million new jobs required each year. So while China appears to the rest of the world to be enjoying an amazing growth bonanza, the officials working behind the high walls of their leadership compound in Beijing feel trapped in an endless employment crisis.”

Rathke says these are primarily manufacturing jobs, noting, “The 24 million annual figure covers both new entrants into the job market, and a certain amount of transition by rural citizens, each year, to urban manufacturing work.”

Facing the daunting prospect of creating 20+ million jobs every year, it’s a certainty China will redouble efforts to keep every single American brand happy, and every job in China.

What, then, can we do to reshore a mere 5 million manufacturing jobs, a number that according to the Reshoring Initiative‘s Harry Moser, would balance American trade deficit and set the U.S. back on a path to providing companies here more domestic options.

Reduce costs, for one. Moser estimates that through a combination of workforce training, more deliberate management of the value of the dollar, and a cohesive pro-manufacturing industrial policy, the U.S. must lower its across-the-board manufacturing costs by 20 percent to be competitive with China. (Hear Moser outline the numbers in the CompanyWeek webcast.)

Moreover, it’s clear we can’t displace China as the global manufacturing leader. We can’t make everything. China moves millions of citizens into manufacturing work every year. Manufacturing, and manufacturing alone, is the engine that moves millions of Chinese into the middle class.

If we can’t make everything, what should we make?

It’s here that a new U.S. industrial policy must be more nuanced than the current dialogue. We know products and components purchased with federal dollars will be a priority, especially in biotechnology, defense, and other national security-related industries. We know a new generation of consumer-led manufacturing in consumer categories — like food and beverage, as well as transportation — is already powering a U.S. manufacturing comeback.

What then, of other industries manufacturing offshore and dependent today on outsourced labor and infrastructure? The current thinking is that some just aren’t “strategic,” or that barriers are too great to justify investing in more U.S. production.

It’s the wrong approach. Public and private actors should collaborate to find ways to encourage more domestic production in even the toughest industries — like apparel. Moser’s cost formula is a foundation.

And who would argue that the outdoor industry, for example, isn’t a “strategic” economic sector? Very few in America’s West. But if we can’t cut and sew, what should we do here to help companies bring production home, even incrementally? What can be accomplished here, with American assets, ingenuity, and inspiration?

With the idea that no job that can be done here should be left offshore, this is the question that should occupy manufacturing advocates across a dozen industries.

No soldier left behind. Booyah.

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