CI Newsletter | July 27, 2023
Council of Industry Formally Recognized as P3 Partner with U.S. Army Reserves
The Council of Industry is proud to announce that it has entered a formal partnership with the United States Army Reserves as a part of its Private Public Partnership (P3) initiative. The Council is now an official partner in the program, recognizing its work to connect U.S. Army Reserve Soldiers and families to meaningful employment, education, and training. We are one of just 171 organizations nationwide in this partnership.
Private Public Partnership (P3) is a bold and innovative program that views Soldiers as assets with quantifiable value. P3 focuses on fostering long-term partnerships with companies, corporations, foundations, academia, and non-governmental organizations to increase leader and unit readiness as well as enhances Individual Soldier physical, mental, emotional, spiritual, financial and employment readiness. Mutually advantageous, P3 provides specialized opportunities in business and interagency environments for Army Reserve Soldiers to make immediate and meaningful contributions to both a robust national economy and the defense of the nation.
For more information contact Johnnieanne Hansen
JP Morgan Chase Renews Council of Industry Corporate Sponsorship
JPMorgan Chase has renewed its corporate sponsorship of the Council of Industry. The Sponsorship enables the Council to pursue several initiatives such helping its members recruit and retain persons who have been under-represented in the manufacturing workforce including women, minorities, neuro-diverse individuals and those who were previously incarcerated.
JPMorgan Chase is the largest bank in the United States and the third largest in the world behind Industrial and Commercial Bank of China Limited and China Construction Bank Corp. The bank has a rich history in the Hudson Valley region and counts numerous Council of Industry members among its many manufacturing clients. This newsletter will be part of the banks sponsorship as will support of Council events including the Golf Outing, Annual Luncheon and Manufacturing Champions Breakfast.
“We greatly appreciate JPMorgan Chase’s continued support of the Council of Industry,” said Council President Harold King. “The bank brings a wealth of knowledge and expertise that strengthens our association and their financial support is a strong vote of confidence in the work we are doing to support Hudson Valley manufacturing.
CI Golf Outing August 28th Sold Out! Sponsor Opportunities Are Still Available
The Council of Industry will once again hold its Annual Golf Outing on the last Monday in August at the Powelton Club in Newburgh. The Powelton is a beautiful course conveniently located just off of Route 9W in Newburgh, NY. The event sold-out again this year with more than 100 golfers from manufacturing firms throughout the Hudson Valley participating. Registration begins at 11:00 and lunch will begin at 11:30 followed by a shotgun start at 12:30. Cocktails and a light dinner will follow at approximately 5:00 p.m.
-
Corporate Sponsor – JPMorgan Chase
-
Shirt Sponsor - NRG
-
Cocktail Sponsor - Allendale Machinery Systems
-
Lunch Sponsor - Crown Castle
-
Golf Cart Sponsor - Ulster Savings Bank
-
Scramble Prize Sponsor - $1,050
-
Yellow Ball Prize Sponsor - Belfor Property Restoration
-
Best Ball Prize Sponsor - $1,050
-
Closest to the Pin Prize Sponsor - Viking Industries
-
Hole In One – Package Pavement Corp
-
Longest Drive Prize Sponsor - Anderson Financial Group
-
Tee Sign Sponsors $335 - PKF O'Connor Davies, LLP, Emergency One Urgent Care & Occupational Health, Pawling Corporation, Metallized Carbon Corporation, Fryer Machine Systems Inc., Fair-Rite Products Corp., ITC Communications, M&T Bank, Sono-Tek Corp., AMI Services Inc., RBT CPAs LLP, Elna Magnetics
Council of Industry Training: Plenty of Opportunities to Upskill Your Workforce This Fall
The Council of Industry on its partners have put together a busy schedule of training for manufacturers this Fall. It includes our very popular Certificate in Manufacturing Leadership (being held remotely) Lean Six Sigma Yellow Belt, Solidworks, workplace safety and more.
Council training programs are designed by manufacturers to provide the skills your workforce needs to be successful in today’s global economy.
Click here for a list of all the Fall offerings (this
________________________________________
Mfg Day is October 6th Start Planning Your Event Today
Celebrated nationally on the first Friday in October, MFG Day is manufacturing’s biggest annual opportunity to inspire the next generation, positively shift perceptions about our industry, and build the foundation for the manufacturing workforce of the future.
By hosting a MFG Day event you help students, teachers, parents and community leaders explore careers in modern manufacturing and see how creators are making the future in the United States and the Hudson Valley. Events can be as simple as an open house, a tour for teachers and students or workshops and hands-on experiences. Mfg Day helps us end the misperceptions of modern manufacturing and present the sector as a viable career path in our region.
Manufacturing Growth Is Strong. In 2020, the U.S. Generated 2.4 Times More Value-Added in Manufacturing than China.
The gloomy picture is understandable. In the U.S., the share of manufacturing jobs has declined from about 15% of non-farm employment in 1997 to about 8% in 2020, and the share of manufacturing value added to the gross domestic product (GDP) has declined from about 16% in 1997 to about 11% in 2020. Other rich countries are experiencing similar trends. But these numbers do not mean that the manufacturing sector is necessarily shrinking. Manufacturing can continue to grow despite shedding jobs if it increases labor productivity sufficiently. The declining share of manufacturing in the GDP could be due to faster growth in other sectors. A better way to find how a sector is doing is to examine how much value it is generating.
If you look at the value added by the manufacturing sector in rich western economies, the picture is not gloomy. In the U.S., for example, despite the sensational headlines and anecdotal evidence of demise of manufacturing in certain industries in recent years, total value-added in manufacturing actually rose from $1.38 trillion in 1997 to $2.34 trillion in 2020 (in nominal dollars, and by a small amount after adjusting for inflation).
Interactive Summary: Manufacturing Economic Predictions for 2023
American manufacturers have been wrestling with extensive challenges. Fear of another recession and concern about the debt ceiling cast a shadow on the economy, complicating facility planning. In the meantime, attracting and retaining a quality workforce continues to challenge the industry due to the tight labor market.
This interactive executive summary from a recent webinar with IndustryWeek featuring manufacturing experts Chad Moutray and Rob Sinfield provides some valuable insights on the future of the sector. Moutray and Sinfield explored the current state of the economy, made predictions for the manufacturing sector, and explained how technology could help manufacturers manage more effectively during these turbulent times. which highlights key economic fears, concerns, challenges and solutions American manufacturers have been wrestling with this year and the economic predictions for the months to come.
Five Reasons The Road To Revitalizing American Manufacturing Runs Through The Pentagon
Military leaders have come to recognize that without a robust economy, it would be difficult to win a major war. However, the “arsenal of democracy”—US industry—is not what it was when President Franklin Roosevelt first used that phrase in a 1940 radio broadcast. Two generations of removing barriers to free trade have resulted in many manufacturers moving offshore, or simply shutting down.
The Department of Defense will spend over $300 billion in 2024 on development and production of warfighting systems—an amount that dwarfs annual outlays for projects such as infrastructure renewal and the civil space program. The Pentagon is a dominant source of demand in industrial sectors such as shipbuilding and aerospace. Many of the areas where the military invests most heavily involve “dual use” technologies, meaning technologies with both defense and civilian applications. The skills required for industrial manufacturing are typically fungible across diverse markets. This is true even when a military program seems to be of little relevance to the commercial world. Lockheed Martin’s work on hypersonic weapons for example requires breakthroughs in lightweight composites, advanced electronics and the like—technologies with potential civilian applications.
Masterful Use of Data Is Manufacturing’s Future: Who's Ready?
The world is less certain than it used to be, and while unpredictable conditions demand dynamic responses, many manufacturers overlook a valuable tool to help them quickly make informed decisions: accessible data. Open, accessible data—on-demand, centrally secured in the cloud, easily connectable and extensible—can help solve manufacturers’ biggest challenges. The more data in a system, the better it performs. And when artificial intelligence pulls from anonymized, aggregated data shared by multiple sources, it can make an entire ecosystem more effective.
A new generation of cloud-powered software allows manufacturers to create and store their design, simulation and manufacturing knowledge in a single place. Overlaying datasets from multiple sources can help more dependably track fluctuations in the costs of materials, energy, shipping, manufacturing methods, labor and more. These forecasts can guide decision-making about choosing renewable materials, for instance, or different suppliers—and whether a product can be manufactured more simply, or closer to where it’ll ultimately be used.
Revolutionizing the European Manufacturing Industry: The Rise of Articulated Robots
Articulated robots are not a new concept. However, their adoption in the manufacturing industry has surged in recent years due to technological advancements and the increasing need for automation. The benefits of articulated robots are manifold. They offer unparalleled precision, which is crucial in industries such as automotive, electronics, and pharmaceuticals, where even the slightest error can have significant consequences. Moreover, these robots can work tirelessly around the clock, thereby increasing productivity and reducing downtime. They also eliminate the need for human intervention in potentially hazardous tasks, thereby enhancing worker safety.
The rise of articulated robots is also contributing to the reshaping of the European manufacturing landscape. Traditional manufacturing hubs are witnessing a shift towards high-tech, automated factories. Countries such as Germany, known for its robust manufacturing sector, are leading the way in this transition. The country has seen a significant increase in the use of articulated robots, particularly in the automotive industry.
JPMorgan Global Manufacturing PMI: Worldwide Manufacturing Activity Contracts
The J.P. Morgan Global Manufacturing PMI slipped from 49.6 in May to 48.8 in June, with activity contracting in the sector for the 10th consecutive month. New orders (down from 49.3 to 48.0), output (down from 51.4 to 49.2) and exports (down from 47.3 to 47.1) contracted in June, with production falling for the first time since January. Employment (up from 50.0 to 50.1) remained mostly unchanged, expanding ever so marginally.
Only ten out of the 29 nations for which June data were available saw production increase, seven of which were located in Asia (including growth in India and mainland China). Sector data showed output falling in the intermediate and investment goods sectors and stagnating at consumer goods producers. Nonetheless, the index for future output (down from 61.0 to 59.6) continued to signal cautious optimism about production growth over the coming months despite easing in the latest data to the lowest level since November.
UPS Strike Would Deal Blow to US Inflation Fight, Supply Chain
A potential strike by 340,000 unionized workers at United Parcel Service Inc. threatens to unravel progress in tackling two of the US economy’s biggest hurdles in decades: inflation and supply-chain disruptions. Economists say the strike might raise the inflation rate — which the Federal Reserve has sought to curb via an aggressive tightening campaign after it reached a four-decade high of 9.1% last year. And if the Teamsters’ demand for much-higher wages is met, this could be a harbinger for other outsized salary increases, further complicating the Fed’s effort to get price growth to its 2% annual target.
On its own, a walkout could add up to 0.2 percentage point to the annual inflation rate, said Greg Valliere, chief US policy strategist for asset manager AGF Investments Inc. The measure fell to 3% in June. UPS workers are seeking relief from the pandemic era’s surge in price growth: The current labor contract locked in a wage progression from 2018 to 2023. UPS’s Teamsters also seek monetary recognition for serving during the pandemic as essential workers.
Factory of the Future: How Industry 4.0 and AI Can Transform Manufacturing
Two critical developments have raised the bar for manufacturers as they pursue a factory of the future strategy. On the opportunity side, game-changing digital and Industry 4.0 technologies have redefined what’s possible for next-generation production systems. When properly deployed, these new capabilities can raise productivity by more than 10% and create a host of additional advantages regarding flexibility, quality, consumption of natural resources, capex allocation, labor savings, and more.
But those opportunities to achieve value at scale are matched by a growing list of challenges affecting the manufacturing sector. Manufacturers face new competitive pressures and increased customer expectations that require more flexibility and customization, shorter time-to-market cycles, higher-quality products, and other changes to how they operate. That’s why it’s critical for manufacturers to pursue a more innovative supply and production system. This critical component of the factory of the future integrates the traditional approaches mentioned above with cutting-edge digital capabilities, enabling you to accelerate your sustainability efforts, optimize processes and workstreams, and transform how you bring products to market
Is DE&I Facing Realignment?
Diversity, Equity and Inclusion (DE&I), which began as an initiative, is facing a critical juncture. At many companies, it has moved so firmly into the company’s operations that it is considered a competitive advantage. Many companies have proclaimed, and there are studies to back them up, that having a diverse population has made them more profitable. A diverse workforce taps into different belief systems offering more input into problem-solving.
Having a workforce that reflects the diversity of customers is advantageous on many levels. And employees, especially younger ones, find value in working for a company that embraces diversity. These advantages have been recognized for a while and most companies have DE&I officers. However, these jobs and the concept of DE&I has come under scrutiny due to social unrest and politics.
Why America’s Largest Tool Company Couldn’t Make a Wrench in America
Stanley Black & Decker built a $90 million factory on the edge of Fort Worth, Texas, intending t_o burnish the Made-in-the-U.S.A. luster of the Craftsman brand by forging mechanics’ tools with unprecedented efficiency. But the automated system was a bust, and the tools that were supposed to be pumped out by the million are so hard to find that some consider them collector’s items.
The property is now being advertised for sale. The Craftsman plant was a high-profile example of a drive among U.S. manufacturers to bring offshored plants back home. Government incentives and a desire to shorten supply chains have sparked a factory-building boom. The high cost of American labor makes automation critical for plants to turn a profit. Turning manual tasks over to machines, which are supposed to churn out goods with minimal human involvement and maximum productivity, poses its own challenges. The Craftsman factory’s first-of-its-kind system was supposed to make tools so efficiently that costs would be on par with China, but ex-employees said it had problems that couldn’t be fixed before the company decided to pull the plug.
Briefs