What is the future of manufacturing in 2015? According to Michael Kotelec of Verizon Enterprise Solutions, there are five trends that will cause manufacturers to adjust their supply chains and modify their business models in the new year. Kotelec’s Industry Week predictions apply globally, but which trends will affect New York State manufacturers the most?
The National Employment Law Project’s (NELP) study about American factories contains conclusions that equate the state of the auto parts industry with U.S. manufacturing as a whole. In philosophy, confusing the part with the whole is known as the fallacy of composition. On the factory floor, finding a bad part in a big batch is known as quality assurance. So is the NELP study flawed, or is it a fine example of QA?
The legislation that Governor Andrew M. Cuomo signed on November 13 reduces what the Governor calls “burdensome” requirements, and provides $3 million in promotional funding via two craft-beverage grant programs. Jim Trezise, President of the New York Wine & Grape Foundation, and Paul Leone, Executive Director New York State Brewers Association both praised the new law, which takes effect on December 13.Food and beverage manufacturers employee thousands of New Yorkers and generate billions of dollars in revenue.
In The Future of Manufacturing: Driving Capabilities, Enabling Investments, the World Economic Forum analyzes trends in global manufacturing from a value chain perspective. This 40-page report asserts that although developed countries have seen significant declines in manufacturing employment, improvements in manufacturing capabilities have “counterbalanced” this trend.
Monolith Solar is planning a $4.9-million expansion at the Vista Technology Campus in Bethlehem, a suburb of Albany in heart of New York State’s Tech Valley. The company, which designs, manufacturers, and installs solar panels, received a $400,000 grant from Empire State Development (ESD) and $400,000 in Excelsior Jobs Program tax credits, which are performance-based and directly linked to job creation and investments.
American manufacturing has a skills gap, but experts disagree about its size and severity. According to the U.S. Bureau of Labor Statistics, there were over 300,000 unfilled manufacturing jobs in June 2014. By 2020, The Boston Consulting Group warns that U.S. manufacturers could face a shortfall of 875,000 highly skilled industrial workers. Today, approximately 10% of American workers are employed in manufacturing.
Business Week recently reported that the average age of a U.S. manufacturing worker is 56. As Anna Wells explains in Industrial Maintenance and Plant Operation (IMPO) magazine, a potential shortage of skilled workers isn’t the only concern. “How do the youngest crop of workers,” she asks, “best learn from their more seasoned counterparts?”
On Manufacturing Day, President Barack Obama announced a new Manufacturing Innovation Institute Competition for an Integrated Photonics Manufacturing Institute. Early this year, the President unveiled plans for manufacturing innovation institutes in Chicago and Detroit, along with a national competition for four more private-public sector initiatives.
Is manufacturing still strong in western New York? According to Buffalo Business First, U.S. government statistics show that the two-county Buffalo metropolitan area ranks 14th for manufacturing employment among the nation’s 51 major metros. In the Buffalo-Niagara Falls region today, nearly 12% of all civilian jobs are in the manufacturing sector. Compare that to Detroit, the national leader at just over 18%.
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