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| CRBJ Home > June 2006 | |||||
Bullish on manufacturingMichael Klonsinski
The catalyst for this new outlook was the Wisconsin Manufacturing Study, authored by the Ohio-based Manufacturing Performance Institute (MPI), one of the nation's leading research firms. The study found that manufacturing and its related industries make up almost one-half of the state's economy. In 2004 alone, Wisconsin manufacturers generated more than $46 billion in gross state product, exported $14 billion in goods and employed 512,000 workers. Better yet, the study predicted that manufacturing output would grow to $54 billion by 2008. The study was a profound reality check after a painful recession that had created uncertainty about manufacturing's future. Its findings also are important to Dane County, which is home to more than 600 manufacturers with 27,000 workers in jobs that pay an average annual wage of nearly $46,000. Manufacturing isn't the highest profile industry in Dane County, but it does crank out a $1.2 billion annual payroll. The Manufacturing Study offered a detailed analysis of the state's most competitive industries, regional over-views, CEO surveys, and a comprehensive look at global challenges and op-portunities. The need to invest in manufacturing innovation came through loud and clear. A series of recommendations to transform the state's industrial sector offered a blueprint for future action. Six months later, we're pleased to report some initial progress. A key recommendation of the study called for Wisconsin to strengthen suppliers to the state's most competitive industries. Suppliers -- typically smaller firms that provide parts and services to large manufacturers -- employ thousands and are vitally important to the state's supply chains and overall economy. Acting on this recommendation, the Wisconsin Manufacturing Extension Partnership (WMEP), with the support of the state Department of Commerce, is expanding its OEM Supplier Development Initiative to target services to 100 more suppliers in 2006. The initiative, which IndustryWeek Magazine has hailed as a model for the nation, meets a critical need by helping suppliers significantly improve performance and cut lead times. In the first year of a pilot project, 16 Wisconsin-based suppliers reduced lead times an average of 53 percent. Interest in this program is strong, and we will continue to build on its success. In another area, the study noted that the availability of skilled manufacturing workers remains a serious challenge. Worker shortages in certain skill areas already are being reported, and the anticipated tide of baby boomer retirements will only exacerbate the problem. Add to that the fact that manufacturing has a serious image problem; many people still think it is dark, dirty and low tech, when in fact today's manufacturing careers are high wage and high tech. A good start in changing perceptions is the "I am Wisconsin Manufac-turing" campaign launched by the Wisconsin Technical College System. Raising awareness about the need to transform manufacturing is critical. Since last fall, WMEP has conducted more than 30 briefings with business leaders, public officials, legislators, educators, the media and others and will continue to do so. John Brandt, the study's director, shared the study's findings with 150 economic development officials at the Governor's Conference on Economic Development. In addition, WMEP has expanded its services to help small and mid-size manufacturers foster innovation in their products, processes and business strategies. Looking ahead, we're hopeful that economic development committees of the Wisconsin Assembly and Senate will schedule hearings during the next legislative session to review how state government can better assist manufacturers to meet workforce and other challenges. There's a lot more work to be done, but Wisconsin is moving in the right direction. As our manufacturers innovate to remain competitive, we need to make sure they have the tools and talent available to generate wealth and jobs for years to come. madison.com ©2009 Capital Newspapers. All rights reserved. |
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