Anatomy of a move: Mercury Wheels relocates to Utah, and the region wins

Chris Mogridge could tell his family’s Oxford, Mississippi real estate development business was in for tougher times as the financial crises of the late 2000’s deepened.

“I was on the financing side of the business and could tell things were getting harder. No matter how much advertising I would do, sales were starting to slip. And the bank was getting funny with us borrowing money.”

On a Friday afternoon in ‘08, with a backlog of offers awaiting financing, Mogridge’s bank was taken over by the FDIC. On Saturday, a bank in South Carolina bought the assets, but subsequently wouldn’t return a phone call or email.

The writing was on the wall. “I needed to figure out something else if I wanted to stay here and avoid the prospect of getting on a plane for a job Sunday nights and getting home Thursday nights,” he says. “Don’t get me wrong, I would have done that, but that wasn’t my preference at the time.”

His preference was launching a business, and this past summer Mogridge and wife Karen moved Mercury Wheels, his post-real estate endeavor, from Oxford to the cycling-industry hotbed developing in Ogden. Today Mercury Wheels has 15 U.S. employees and makes a wide range of road and mountain bike wheels.

A connection to cycling provided a quick transition as the real estate market imploded. “That summer I’d had some success racing,” he explained. “I wanted to buy a time-trial frame, and carbon was just getting popular. But the ones I wanted were about $5,000 for a frame-set. I thought to myself, ‘Someone’s making some money here.’ And the light went on.”

Mogridge has since hustled his way to a growing carbon wheel business, not frames, sourcing components like rims, hubs, cassettes, and skewers from Taiwan but assembling here to provide his racing clientele and dealer network highly customized, performance wheel sets. “At first we were just selecting parts from catalogs or wherever, but today we’re working with factories on the design phase; for example we’re working now on a new road disc. We’re designing wheels for specific applications.”

But as growth beckons, so does the need for a qualified workforce. For Mogridge and Mercury, that meant leaving Mississippi.

“There are a couple different reasons we made the move. The first one is networking. There’s a better pool of people to hire in Utah. It was harder for me to get someone to come down to Oxford,” he says.

“In my mind there were really three cycling hubs, or clusters, to consider,” he says. “There’s southern California, Boulder, and Utah. There are too many people in California; I wouldn’t say I’m a small town boy, necessarily, but it’s still too crowded.

“Boulder’s more my style but for us we viewed it as too expensive. We weren’t going to be able to own our own commercial space, which we eventually want. So I’d heard about Ogden and what was going on there but had never been. We’d taken ski vacations in Utah – there are five or six world-class resorts accessible from Salt Lake City. It’s a clean city, and there’s no crime. Plus we’d been to DealerCamp in Deer Valley.”

2013 DealerCamp, Deer Valley, Utah

“Utah was very interested in our business. Ogden, in particular. I think they understand that it takes businesses of all sizes to build a growing industry cluster.”

If there was a close second, it was Boulder. But just as Colorado’s cycling epicenter has been the choice of others, Utah seemed the inevitable destination for Mercury. “Mayor Caldwell and Steve Fishburn of Ogden rolled out the red carpet for us on our two visits. They showed us the town, introduced us to other bike companies who made the move and really made us feel like Ogden was home.”

I asked him if he’d gotten to the point of comparing incentive packages? “No, we’re really too small. But I looked at them compared to what’s available in Mississippi. Don’t get me wrong, it’s a good state to run a business – overhead is low – but Ogden’s so competitive. They sat down and said, ‘what do we need to do to get businesses interested in Ogden?’”

All in all it bodes well for region’s lifestyle manufacturing prospects. The mountain West is an emerging lifestyle superpower. Ogden’s growing cycling industry, anchored by ENVE, a carbon composite powerhouse OEM, seems a healthy rival to its more established sibling east of the divide. But as Mogridge noted, the region’s national reputation as a destination for recreation-related light industry is growing. Including more manufacturing.

Reshoring the development and manufacture of new products is on Mogridge’s radar. “We’re working on a project here that would bring more manufacturing to the U.S. The irony is that Asians love American products – they’ll pay a premium for U.S.-made.”

In Utah, or Colorado. In the West.

About CompanyWeek/Utah – and why a media voice for manufacturing is critical

A year ago, we launched CompanyWeek to begin providing sustained media coverage of Colorado manufacturers. This week we reach an important milestone – regional expansion to become a media voice for the dynamic and growing Utah manufacturing economy with CompanyWeek/Utah.

Utah’s always been in the plans. We set out in September 2013 to begin a regional dialogue, for good reason. American manufacturing has momentum, and in the West, in Colorado and Utah, a widespread manufacturing resurgence is under way.

It’s not your grandfather’s sector: technology is transforming manufacturing – though innovation has always been a critical byproduct of U.S. manufacturing. Remade Industries like food and beverage are catalysts, and compliment growth in aviation, aerospace, and medical device manufacturing – what Colorado calls ‘advanced manufacturing.’ And of course energy is a critical manufacturing play across the Rocky Mountain West.

A tie that also binds is a lifestyle opportunity that will bring millions of new residents West in the coming years. In Utah and Colorado and across the region, entrepreneurs will join those already blazing a trail to launch lifestyle businesses and light industry in cycling and skiing, apparel and consumer products. (CompanyWeek will host the first Colorado Apparel Manufacturing Summit this week.)

Ogden’s cycling epicenter is an example. It’s farsighted Mayor, Mike Caldwell, is building a regional reputation. His town is becoming a magnet for light industry. One of its terrific lifestyle manufacturers, ENVE, is profiled in the inaugural Utah issue.

By covering both states, we also begin a regional conversation. A bigger conversation is indeed our opportunity.

To many companies, state doesn’t matter. The region does. Mercury Wheels picked Ogden to relocate from Oxford, Mississippi but Boulder was a close second. Osprey Packs, an outdoor industry leader and innovator based in Cortez, Colorado, is moving distribution operations to Odgen, tapping the Wasatch Front’s more connected and capable transportation infrastructure, but keeping other key functions in Colorado. Hercules Industries, a regional powerhouse in HVAC manufacturing based in Denver sources materials from the west for its Utah operations to avoid traversing the Divide. Region matters.

But our core mission is to first raise the profile of manufacturing businesses within the local markets they operate. Why? Manufacturing has never been more strategic to the U.S. economy.

We we know what was lost when we offshored: wages are stuck, quality suffers, IP is often compromised; and travel budgets are maxed out. Supply chains are long. At the same time, the perception of a manufacturing career has suffered. The sector’s still seen as dirty and dumb. There’s a skills gap, a labor challenge, across manufacturing.

But as we’ve found in reporting on over 150 Colorado manufacturers the past year, things have changed. Manufacturing today is modern story of increasingly high-tech, savvy fabricators, makers and designers. It’s ambitious young professionals launching lifestyle companies.

It’s also in need of being more connected. To reshore, to find suppliers and business partners, the sector must reconnect with each other. Media, at its best, connects people – and builds community.

Storytelling is the missing link until now.

Each week we’ll publish a newsletter for the Utah market, as we do with Colorado, with links to profiles of growing Utah manufacturers. We’ll keep Colorado companies in the mix to keep readers up to date and connected to its neighbor– as we’ve done with Utah companies for Colorado readers.

CompanyWeek/Utah is possible because of the support of the Utah Manufacturers Association and its President, Todd Bingham (read his column). We’re equally motivated to advance manufacturing by telling its story. And in doing so overcome challenges like workforce and a dated perception of the manufacturing brand.

And at any point, contact me with comments.

Bart Taylor is founder and publisher of CompanyWeek. Reach him at btaylor@companyweek.com, or 303-888-2832.

Debut of the Rocky Mountain Manufacturing Index and why measuring success is important

As a modern manufacturing economy takes shape, a rush is on to identify who’s part of the community and how growth and progress should be measured.

Our lens, our perspective, is the regional, multi-industry manufacturing economy we report on every week. Today we’re providing one tool to track it’s progress. With the help of Deloitte we’re compiling an index that will track the collective stock performance of 28 regional manufacturing companies. It’s a localized if unique version of a what others are doing nationally, like IndustryWeek.

The Rocky Mountain Manufacturing Index views manufacturing through the particular lens we prefer – broad-based and big-shouldered – with 10 or so industry categories included. Manufacturing here isn’t a single-industry sector.

The Index is one part of our sustained effort over the next several months to build tools to follow the development of the new manufacturing economy.

Here’s this week’s Index.

The effort to catalogue the companies and people of manufacturing is ongoing and industry-wide, and for good reason. Today’s manufacturing economy is different than the past, comprised of new sectors, companies and people. Despite efforts to ‘map’ the sector the past several years, efforts are just now gaining traction.

The reality is that building a useful and easy-to-use directory is hard. Not everyone agrees who should be included, and manufacturers must participate to make it more than just a phone book of name and addresses. (That’s hard, too.) To build a truly interactive resource, companies must give up data and use it to actively seek connections. Proving the value of that is difficult, so participation tends to lag.

Several are trying. Manufacturer’s Edge, Colorado’s state affiliate of the national Manufacturing Extension Partnership, is leading a statewide effort to define and connect the market, with an initial focus on southern Colorado.

Another high-profile effort is set to launch as a result of Colorado’s $6.6 million SMART award. SMART is short for Strengthening Manufacturing by Accelerating Research and Technology. We’re told funds have been earmarked for the development of a “project map,” a directory of companies involved in advanced manufacturing who might benefit from participation in the infrastructure and programs contemplated by SMART. CAMA, the Colorado Advanced Manufacturing Alliance and the facilitator of SMART, will lead the effort.

Connecting industry players for mutual benefit is an essential step in advancing the entire manufacturing sector. As connections drive the market forward, we’ll use the Rocky Mountain manufacturing index and other tools to track it.

Expand ‘Advanced Industries’ to apparel and other sectors that need a technology lift

Can two unrelated, contrasting events portend opportunity for Colorado manufacturing?

Last Wednesday Ken Lund, Colorado’s chief economic development official, rolled out details of a $6.6 million Department of Defense award, what the state calls SMART, to a group of high-tech manufacturers, educators, trade and service. SMART is short for Strengthening Manufacturing by Accelerating Research and Technology. The money will be used to build technology centers to support the development of “early-stage and proof-of-concept businesses” in seven “advanced industries” including aviation, bioscience, aerospace and electronics.

The award is a boon for a sector that’s become a major driver of economic growth in Colorado. According to Lund, ‘advanced industries’ now account for 30 percent of the state’s wage earnings; 30 percent of total sales revenues across all industries in the state; 35 percent of total exports, and more than 500,000 jobs. It’s a sector that’s creating its own news, its own stream of public-sector financial support.

A different sector can only hope for similar developments, where innovative public-private partnerships spark opportunity and optimism. This much was made clear at the inaugural Colorado Apparel Manufacturing Summit held last week in Denver.

As I’ve written, the apparel sector here is at a crossroads. The lifestyle manufacturing opportunity is huge. But Colorado’s apparel sector is struggling with the effects of offshoring the past several decades. Labor and innovation are in short supply.

That’s not stopped a vanguard of ambitious apparel and sewn product companies from thriving. Entrepreneurs find a way. But finding a cut-and-sew operation that fits is hard. The production network is tight-lipped and protective of customers and capacity. Apparel firms that have it don’t want to give it up and small sew shops are slammed. There’s little incentive for them to expand.

Apparel firms with volume or intricate, technical cuts are especially challenged. And an aggressive, ambitious U.S. garment manufacturing market is competing for business. Colorado’s a tough market.

The challenge is inspiring apparel leaders here to contemplate new ways of competing, and in today’s global marketplace the conversation increasingly involves technology. It’s a sector starving for innovation. At the Summit, Dan English, CEO of Voormi, and CJ Riggins, vice president at KidRobot, had fun debating the last major industry innovation. English cited Gore-Tex. Riggins went back to the early 20th century — and the zipper.

English is banking on a high-tech approach to the way the company manufacturers — both in making fabric and the way it assembles garments. So are others. Tom Barney, CEO of Cortez-based Osprey Packs envisions future lines being made in the U.S. Today Osprey manufacturers in Vietnam, with operation centers in southwest Colorado and Ogden, Utah.

Barney would like to see technology-driven innovation as the state tackles its sewing labor challenge. “There are whole areas of manufacturing with fabric we can’t touch here, that would require some level of scientific and technological advances,” he says. “You’d be wearing more “welded” clothing. We’re reliant on fabric and tape companies where we’d instead like to be pioneering those areas.”

Osprey plans to sew more packs here even though Barney reiterated Osprey’s position that “domestic production must be independent of location.” But the appeal of manufacturing closer to where a brand is inspired is powerful. What if innovation and technical advances occurred very close to home, in Colorado’s world-class R&D ecosystem? “We would need assistance from the state,” Barney says, “and would love to see the university system help advance the cause.”

Sounds very much like the kind of public-private collaboration that’s catapulted Colorado’s “advanced industries” to growth.

Can apparel be an “advanced industry”? Barney alludes to the possibility without framing it that way. So do apparel executives like English, who envisions a reconstituted U.S. manufacturing far different from previous generations. “It’s up to us as business leaders to find ways to drive manufacturing back here.” When it comes back, he added, “It’s not going to look the same.”

As gratifying the $6.6 million DOD grant should be for Lund and this administration, expanding “advanced industries” to included sectors that would benefit from a technology lift would be a worthy legacy.

What’s your Colorado manufacturing IQ? Take this quiz and find out.

Last week, with a push from the Colorado Association of Commerce and Industry, Governor John Hickenlooper proclaimed this workweek ‘Manufacturing Week’ in Colorado, adding a regional flavor to Friday’s national Manufacturing Day.

It’s music to our ears, so we thought we’d join the festivities with a pop quiz celebrating Colorado’s broad, dynamic manufacturing community. Go ahead and test your Colorado manufacturing IQ.

1. Denver’s Ocean Journey uses this global-leading acrylic designer and aquarium builder for its watery enclosures. Name the firm.

2. Air Force pilots and musical stars like Def Leppard beat a path to this Colorado Springs manufacturer of custom audio apparatus.

3. This growing Denver-based apparel company was launched by an entrepreneur who guessed Tiger Woods would lead a new generation of kids into golf – and into a new golf apparel category.

4. Colorado’s the national epicenter of the natural and organic food business, but also fertile ground for the launch of ‘fast and fresh’ restaurant start-ups. Name two not named Chipotle.

5. Colorado food manufacturers – co-packers – changed the face of the natural food industry. Name two of Colorado’s current crop of food innovators.

6. Founded before Columbus discovered America (can you believe it?), this European company opened its first-ever U.S. manufacturing facility in Pueblo last May, impressed by a deep regional connection to steel. (Also a gimme – from this weeks issue.)

7. Manufacturing accounts for 91% of all Colorado exports and over 130,000 jobs. What’s the annual average compensation for manufacturing employees?

a. $33,000

b. $53,000

c. $73,000

d. $93,000

8. This Colorado firm is emulating the texture from what animal to inhibit bacterial growth on surfaces of all kinds?

9. Kids frolic on the oversized, colorful commercial playgrounds in the Cherry Creek Shopping Center and in dozens of locations nationwide, designed and manufactured by this Denver company.

10. This Colorado lifestyle brand builds titanium cycles, one at a time, at its very cool manufacturing facility in Steamboat Springs.

11. More products are manufactured from the following product categories in Colorado than any others. Rank them in order, by dollar volume.

a. Food and beverage and tobacco product manufacturing

b. Computer and electronic product manufacturing

c. Chemical manufacturing

12. This Durango brewery and first-mover extended its brand and launched a new company that manufacturers automated canning equipment for the beverage industry.

13. This Colorado apparel firm sources high-altitude wool in the Rocky Mountains then ‘supercharges’ its natural attributes with tiny increments of synthetic fiber. Name this performance-apparel brand.

14. A Boulder company has has revolutionized bike-fitting with a proprietary system manufactured here in part and used throughout the cycling world. Who’s this progressive maker?

Of course most of these great companies were featured in CompanyWeek the past twelve months. Read more and raise you Colorado manufacturing IQ.

And celebrate American manufacturing this week: patronize a Colorado maker or manufacturer.

Answers: 1. Reynolds Polymer; 2. Westone Laboratories; 3. Garb; d; 4. Garbanzo, Larkburger; 5. The Kitchen Coop, Fresca Foods; 6. pewag; 7. C; 8. Sharklet Technologies; 9. Playtime; 10. Moots; 11. b, a, c; 12. Ska Brewing; 13. Voormi; 14. Retul.

As manufacturing boosts commercial real estate, Placemakers are taking note

Denver’s most illustrious Maker defies description. She’s a real-estate developer by trade, though the moniker understates the outcomes of her work. After all, how many developers have a hotel named after them?

No, Dana Crawford is a placemaker. Crawford’s projects – her places – are often a brick-and-mortar continuum: they remind us of who lived and worked here before, of who made it possible to build anew at the same time they embrace the future.

I met Dana a decade ago. Our connection also involved a place, Salina, Kansas, from where both of us hail, roughly. Reconnecting after a several years, our interests may again align, this time around the changing face of urban development. In a recent conversation, she mentioned how she believes light industry, manufacturing, is poised to be an integral component in modern, mixed-use development. I’ll leave Dana’s projects to speak for her, which I’m certain she prefers anyway, but the sentiment from so esteemed a placemaker confirms a trend we’ve written about previously.

The upshot is that a broad-based manufacturing revival is providing commercial real-estate a boost. Of course much of the excitement in today’s industrial real estate sector involves big-box space. A boom in e-commerce and the related need for warehousing space is a catalyst. But so is the resurgent manufacturing sector, generally. Vacancy rates for Class A space in America’s major industrial centers are dropping. A CBRE market analysis sums it up. “The nation’s factories are humming again, and industrial capacity utilization rates are back to historical averages; firms will soon need to start investing in new facilities as demand for their products increases in the expanding economy.”

The Urban Land Institute’s 2014 Emerging Trends in Real Estate forecast a similar push. “Manufacturing is coming back to the U.S., and it’s coming back faster than we thought. Back in 2011, no one thought we would see anything until 2015. Now, we are seeing dozens of companies moving back to the U.S. because the economics are shifting,” ULI’s report says, referencing the reshoring trend underway in U.S. industry that’s driving demand for commercial space.

But it’s likely that manufacturing will build differently in the future, and the demand for space will manifest accordingly. In real estate, the industrial renaissance continues to be largely defined by large increments of square feet like warehouse space, but observers like Denver’s Richard Kadzis believe that “economies of scale” are changing. “There will be a re-emergence of manufacturing in the U.S. with smaller regional facilities,” he notes.

Colorado’s manufacturing sector will certainly grow in this manner. As much as economic developers must focus on big companies, and ‘wins’, like Tesla, manufacturing growth here will also sprout from the state’s vibrant small business community, leveraging leadership in food and beverage, bioscience and medical, aerospace, consumer goods and contract manufacturing across all industrial sectors as companies seek new tech shops, materials suppliers, and labor to reshore operations.

The trend should inspire today’s placemakers. Mixed-use space that include light industry add interest and are financially more sound. They add fabric and flavor – beer and spirits, food and wine, cycles and clothing – to new our new urban settings. Imagine a city center development in Colorado without a craft brewery. They’re also tax and job generators, not simply cost centers for city services.

Moreover, any move to assimilate making and manufacturing back into our cultural fabric is a plus. We derive so much from building around our work. The products we make tend to be higher quality, at the same time we shorten supply chains, support local producers and become more efficient energy consumers. Wages from manufacturing are relatively high. We’re building careers, not just creating jobs. Residents prosper.

As rock-star placemakers like Dana Crawford envision compelling new places incorporating industry, advocates of local manufacturing will continue to push for the American-made renaissance. We’ll meet in the compelling spaces of the future.

Everybody wins.

Manufacturing’s lost its cultural mojo. Here’s how to get it back.

Later this month in Colorado Springs, over 1000 high-school age kids and 500 or so community college students will visit the Southern Colorado Manufacturing Expo & Conference to view demonstrations and interact with industry, suppliers and service. It’s what manufacturer’s have been asking for – and need: visibility to a next-generation workforce.

How many of these kids will end up choosing manufacturing as a career? More than in recent history, I’d guess. We seem to be coming around to the notion that the career track we’ve established for young people needs to change, that not all high-school graduates need be shoehorned into a four-year college program.

The alternative – more families choosing vocational schooling – would be welcome in the manufacturing sector. But reform is also on the minds of the professional sector: the data say that employers believe higher education is doing a so-so job of preparing college graduates for the needs of today’s employers.

The ‘skills-gap’ that bedevils manufacturing is acute. We know why there’s a gap: manufacturing was offshored, for cheap labor, mainly; with jobs left a commitment to train a new generation of makers; business leaders assumed the U.S. would continue to lead in innovation without making stuff; and the subsequent push to maintain our innovation acumen and staff the service-economy-on-steroids has overhyped a need to send every kid to Harvard in search of a professional degree.

So manufacturing’s lost its cultural mojo. A factory job used to carry with it social status. Not today.

How to get it back? How can we convince families that it’s OK to consider manufacturing careers as an option to a four-year degree? Secondly, if the sector can recapture the imagination of a new workforce, do we know how to train them?

Both are big undertakings.

Consider job training. It’s conventional wisdom that the apprenticeships and job-shadowing methods developed by Germany and others are effective not only in preparing students for manufacturing careers but create a sustainable pipeline for talent once established.

But will European-style apprenticeships ever become a mainstream educational model in the U.S? I have my doubts. They represent a radical departure from today’s socially favored career pathways. And a collective disdain for many things ‘Euro’ is a barrier to vocational training. These things aren’t changed easily; higher-ed is change-averse.

Apprenticeships will instead be part of a comprehensive plan if not the centerpiece. It will fall on industry to lead the way. We can inform higher-ed how to develop curricula, we can provide community colleges more resources and we can facilitate ongoing communication to identify the skills needed in the future. We can convince the business community that what was lost as we offshored our ‘maker’ capacity can’t be easily fixed without a robust domestic manufacturing sector.

But to regain a powerful cultural connection to manufacturing, to once again celebrate vocational work, manufacturers must first capture the imagination of a new labor pool.

An important step is highlighting the maker economy that appeal to young people – like beer, food, and high-tech manufacturing – alongside the anchors of the industry who cut, bend, fabricate and weld.

It probably starts with ‘blocking and tackling’: celebrating the companies who’ve sustained and are again emerging as a strategic players in the U.S. economy.

Fifteen hundred or so K-12 and community college students will be onhand in two weeks, in Colorado Springs, to get a firsthand look, to see what manufacturing has to offer. Industry must show up. Represent.

You asked for it. You got it.

Business left high and dry by immigration dodge

One measure of today’s political dysfunction is the inability of elected officials to govern at the margins. For business, immigration is a stark example.

Last year the U.S. Senate passed the “Border Security, Economic Opportunity, and Immigration Modernization Act”, Senate Bill 744. Today it sits idle in the House, stalled indefinitely and its meaningful pieces sidetracked by the politics of ‘pathways’ and the status of millions of undocumented immigrants.

It’s unfortunate. Business would benefit from incremental progress on immigration.

The Bill is actually comprised of five distinct parts: Border Security (Title I), Immigrant Visas (Title II), Interior Enforcement (Title III), Reforms to Nonimmigrant Visa Programs (Title IV), and Jobs for Youth (Title V). And it’s here that we’re so poorly served. As a practical matter, business today would benefit greatly if Congressional leaders would set aside the ‘status’ issue, just for a moment, to find consensus on its other parts. SB 744 passed on a bipartisan basis last year. There are plenty of opportunities to agree.

Senate Bill 744 makes “enormous” investments, according to some, in border security, envisioning a truly staggering 38,405 full-time Border Patrol agents along the southern border and $46.3 billion in initial funding. In 1993, the annual budget for the U.S. border patrol was $363 million dollars.

There’s also mechanism’s to identify specialized labor. Components of Title II provide immediate relief to employers seeking qualified immigrant help. 744 creates a new “merit based point system with two tracks that award points to immigrants with educational credentials, work experience, and other qualifications.”

Additionally, key reforms in employment-based immigration would ease bottlenecks in current law by eliminating country-specific limits and exempting “highly-skilled and exceptionally talented immigrants” from the worldwide cap, including STEM graduates.

Consider the plight of Colorado manufacturers. A number of factors have contributed to a substantial ‘skills-gap’ in the manufacturing workforce. Last year, nearly 20,000 manufacturing jobs went unfilled in Colorado for a lack of qualified candidates.

Today it’s not much different. Across industries, manufacturers are searching for talent.

Industry will tell you that domestically, we’ve failed to train a generation of manufacturing employees, that there’s simply not a qualified pool of up and coming candidates to replace retiring workers or staff promising new businesses. That we’ve dissed manufacturing and trade careers while offshoring a sizable portion of our making prowess, at the same time we’ve fast-tracked kids into four-year degree programs that are expensive, or ill fitting.

The timing is particularly bad today, as manufacturing is surging. And unfortunately, there is no fast and easy fix. As aware education and policy wonks have become about the skills gap, we’re years away from delivering a steady flow of interested, engaged, qualified workers to industry.

Today Colorado companies and their regional counterparts in Utah and the Mountain West would benefit greatly from the opportunity to access appropriately trained, easily assimilated immigrant labor. The bipartisan Senate Bill envisions this scenario.

Marginal reform, if not comprehensive agreement on the status of Immigrant Visas, would be a boon to business including manufacturers. Debate the ‘status’ issue; it’s important. But reform isn’t a single-issue proposition. Make progress.

It’s not too much to ask.

CompanyWeek at one year: Inspiring and intrepid, manufacturing companies are the story

CompanyWeek is a year old this week. Last September we set out to do something different, to report on the manufacturing economy through the people and companies that comprise it. We profiled nearly 150 businesses and what a sector it is. Looking back, the companies are the story.

We’ve been inspired by Springs Fabrication’s role in the Fukushima nuclear disaster in Japan; Sparkfun’s commitment to educating a new generation of science and tech-minded kids; of Brian Burney’s connection to place, to Oliver Manufacturing’s La Junta homebase; by the ingenuity of entrepreneurs like Matt Vincent of Ska Brewing/Fabricating and the flat-out inventiveness of Dave and Jenny Hall of Glideware.

We’re awestruck by Colorado’s natural and organic food business. By Fresca Foods, who transformed an industry 18 years ago with a manufacturing innovation and today is led by stars like Todd Dutkin and Liz Myzlik; by Richard Lappen’s new gig Natural Food Works. By Boulder Soup Works to Rudi’s Organic Bakery to Hope Food’s missile tubes to 34 Degrees to New York transplant pure elizabeth, whose intrepid namesake Elizabeth Stein packed up this year to move to the ‘50-yard line’ of the industry.

It’s impossible not to respect the stalwarts of the trade and business acumen of Noel Ginsburg of Intertech Plastics, of Bill Newland at Hercules Industries, Marcia Coulson at Eldon James, Doug Rhoda at Wolf Robotics and Scott Sullivan at Grand Junction’s global star Reynolds Polymer. Many, if not all, are working to make sure their coattails are long for those who want to follow.

The beautiful slice of the region’s manufacturing economy is the passion of entrepreneurs like Trent Johnson at Greeley Hat Works, Chrissy Rogers of Spinelli’s and Julie Nirvelli of White Girl Salsa. Of Brian Dunn at Great Divide, Karen Hoskin of Montanya Distillers and Mike Koenig of Studio Shed. And small business doesn’t corner the market. Tom Cycyota started our meeting with a moving, half-hour story about an Allosource organ donor. Cycycota leads one Colorado’s most successful and unique manufacturers with the passion of a much smaller company.

Compared to the youthfulness of craft beer and natural foods, manufacturing is dotted with powerful family legacies, of compelling generational stories like RK Mechanical and Denver’s Polidori Sausage, that Ana Polidori, great-grandmother of current vice president Melodie Polidori Harris, opened in 1925. CEO Donn Schaible takes great care in maintaining Eagle Claw’s connection to Lee McGill and the Wright & McGill Co. Colorado legacy.

Bob Walker’s father Max began building mowing machines in the 1970’s. Today, Walker Manufacturing is a source of pride not only for the Walker family but for northern Colorado. Pride is the operative sentiment as Paul Harter leads a tour of Aqua-Hot in Frederick, who’s clearly gratified by continuing Hap Enander’s business legacy but immensely proud of the new company he’s building.

Builders share space in the economy with manufacturers – they both make things – and the ‘built environment’ is intrigued with the new manufacturing economy. One of our objectives over the next year is to profile the buildings and spaces of GE Johnson and others that will house a next-generation of makers and manufacturers – maker spaces that in the coming years should increasingly co-locate among retail, residential and service – modern ‘clusters’ that comprise a 2st century economy.

Visionary public-sector leaders get the value of maker businesses. They’ll take a lead from Denver’s OED, from Ogden’s city leaders, who envision a cycling manufacturing hub and Utah’s legislature, who created the position of Director of Outdoor Recreation to manage the state’s outdoor brand to the benefit of lifestyle manufacturers. This in contrast to the wretched public stewardship on display in Colorado Springs, where an ugly mayor/city council dustup selfishly hamstrings business; and Castle Rock, my hometown, where city government squanders the community’s hard-earned family-oriented brand in favor of the economic development attributes of Dodge City, circa 1880.

But the doers far exceed the obstructionists in the Rocky Mountain region. Powerful, sustaining business rationale are driving U.S. manufacturing back onshore and domestic manufacturers and supply-chain partners together again. Within five years, a more connected manufacturing economy, redefined as a modern and lucrative sector, will be shaping regional economic activity like never before.

– –

As our crusade enters its second year, with new markets like Utah among the opportunities, I’d like to thank Robinson, Webb, and Rothe for a runway and Kalkwarf and Popeil for a push; Severson and Myzlik for genuine enthusiasm and encouragement; Bugnitz for a true north; Maraschin and Goertz because they paid attention from the western slope; Neppl, Newland, and Lee because they didn’t say no; and Bingham for saying simply, yes.

CompanyWeek is Eric Peterson and Chris Meehan, Becky Hurley and Mike Dano, Tamara O’Dell, Valarie Johnson and occasionally, Jeff Rundles. It’s Carrie Nicholson, Jessica Thomas and Doug Hunley. It’s Michael DeJager. It’s Jonathan Castner’s visuals, along with those of Cat Mayer, Judson Pryanovitch, and Scott DW. Smith, Michelle Goodall and Sara Hertwig. It’s also AJ’s daily burden. CompanyWeek is their work.

On to the next 150!

Change at Colorado’s OEDIT an opportunity to upgrade Hick’s Blueprint

The worst kept secret in Colorado economic circles is the impending leadership shake-up at the Governor’s Office of Economic Development and International Trade, or OEDIT. Ken Lund, Executive Director of OEDIT and Karla Tartz, Deputy Director, Strategy & Operations, are leaving as early as September.

The change shouldn’t come as a surprise. Lund’s made it clear he’s a one-termer. A stint in Hickenlooper’s administration has only raised his profile in Colorado’s business community. It would be more unusual for him to stay.

The more interesting speculation will swirl around the direction of OEDIT with new leadership if Hickenlooper wins again this November and the legacy of OEDIT under Lund’s leadership.

On one hand his timing couldn’t be better. The Colorado economy has roared back from the wreckage of the late 2000’s, so much so that it’s hard now to go a week without the state being singled out as a national model for growth, entrepreneurship and innovation and rosy prospects. Opinions vary as to who should get credit (as does the recovery’s regional impact – some are faring better than others), but the upshot is that Lund’s OEDIT has presided over a powerful recovery.

But OEDIT’s also been challenged to live up to expectations developed early in Hickenlooper’s tenure. The collaborative, grassroots success and tone set by the Colorado Blueprint has given way to puzzlement about things like key industry sectors, questions about strategy and a Denver-centric gaze, and outcomes from its $150 million budget and growing payroll.

Our filter is manufacturing, and for makers and manufacturers, OEDIT’s support the past four years has also been a mixed bag.

There’s certainly a lot to like. OEDIT prioritized manufacturing by establishing CAMA – the Colorado Advanced Manufacturing Alliance – at a time when confidence in the Colorado Association for Manufacturing and Technology, then CAMT and now Manufacturer’s Edge, had waned. CAMA’s now an important advocate for regional manufacturing. Manufacturer’s Edge has also benefitted, free from obligations of a trade association to operate true to its federal charter as a service provider to industry.

“Advanced Manufacturing” is a point of emphasis for OEDIT, and as Tartz leaves is championing a program that would provide Colorado’s ‘advanced’ sector significant assets in the future. If funded, SMART – Strengthening Manufacturing by Accelerating Research and Technology – would create regional centers that would provide “immediate and sustained support to Colorado’s manufacturing industry”, with technology, tools, targeted programs and outreach.

Colorado’s other flagship manufacturing sectors are booming as well, but without the level of engagement with OEDIT or alignment with its priorities. In the Colorado Blueprint, low-tech manufacturing was scattered among the remaining ‘key’ industries. Natural and organic food manufacturing and craft beverages can famously be found beneath the Hereford cow on the Food and Agriculture Key Industry web page.

Yet the state’s natural and organic food industry is a national model. Innovations in manufacturing have been a driver. Co-packers like Fresca Foods have catapulted locally inspired brands onto the national scene. Colorado’s craft beer sector is juggernaut. There may be no more strategic sector than food and beverage manufacturing in Colorado’s future.

I’d suggest the following adjustments to new OEDIT leadership:

– Reduce the number of Key Industry Sectors from 14 to whatever is actually ‘key’. Acknowledge and feed anchor industries like tourism and ag but rally around the sectors that will drive growth in the coming decades.

– Lifestyle Industries is certainly one. Colorado’s a mecca for smart, capitalized lifestyle entrepreneurs intent on building the next New Belgium or Chipotle. Others will arrive in the future to emulate Voormi, Icelantic, Moots, Topo Designs or Boa. Use Colorado’s powerful national brand to develop a lifestyle industrial capability that’s a catalyst for growth.

– Utah created a Director of Outdoor Recreation – but Brad Peterson’s not simply marketing the state to tourists. He’s leveraging Utah’s outdoor brand to attract industry – industry aligned with lifestyle. Align Colorado’s mega-tourism sector similarly.

– The region is home to a sophisticated industrial manufacturing and builder sector. Working with engineers from Colorado’s first-rate universities, benders, cutters, and fabricators are designing and building infrastructure products and industrial parts that are sold worldwide. They’re all increasingly high-tech and require skilled workers. Treat them as an ‘advanced’ industry.

– Colorado will be home to million more residents by 2020 – keeping pace with a regional boom in the intermountain West. The state is not an island – it’s an anchor destination in a desired national location that shares opportunity and challenges with its neighbors. If you believe Colorado to be the bellwether of the bunch, it should lead a new pan-regionalism that for one promotes the region as a reshoring destination for manufacturing. There’s much to build on.