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2009 BuildGreen Conference

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Mark Basla, Vice President, DVIRC presents "Advanced Manufacturing within a Sustainable Economy"

Mark Basla, Vice President, DVIRC presents "Advanced Manufacturing within a Sustainable Economy"


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  • 7 Let me start by saying, I’m really thrilled to be here, and participating in a very small part of this conference hosted by DVGBC. The DVIRC is an economic development organization, we are a private, not for profit consultancy. We have three stakeholders. Two of which are government agencies. On the federal side, we are under the U.S. Department of Commerce’s MEP program, and Pennsylvania’s Department of Community and Economic Development. We have multi-year performance based contracts. Our third customer is the roughly 5,000 small – mid-sized manufacturers located within southeast Pennsylvania. Fortunately, in 1988, then Governor, Robert Casey, Sr. established the state program because he knew how vitally important manufacturing is to our economy. Likewise the federal government established the national program in 1989. 344,000 US establishments, 98% are SME’s Now, you could be saying to yourself, one of two things, either, you didn’t even know US manufacturing still existed, or isn’t that the very sector that gave us all these environmental problems in the first place? Yes. Well if you thought the former your wrong, and if you thought the latter, your probably right. I hope to provide you with information that applies to what you do for a living, and perhaps how you, as a United States citizen, think about the triple bottom line; people, planet, and profit. Finally, I would like to achieve a call to action.
  • 7 Brands only reflect the truth. but they can and should be re-invented. The truth is, we can no longer be the home of massive inefficiencies, inferior or commodity products, or accept business as usual, creating negative outcomes to justify toxic poisons, inferior products, and conducting business as usual. It doesn’t work, and we know it.
  • 7 When you re-build a brand, you don’t throw the baby out with the bathwater however. You retain those characteristics that are worthy of the new brand. Americans have always demonstrated their resolve, passion, creativity and work ethic when faced with adversity. This is key and we’ll need this in spades. And although we can no longer produce products through environmentally damaging means, we need to re-build our manufacturing industry, especially small and midsized enterprises. Throughout my talk I’m going to introduce you to several people…
  • 7 By definition, manufacturing is to make or produce something by hand or machinery. Sustainability, in a broad sense, is the capacity to endure. Black type does not look interesting, or consistent / harsh….??? What about the dark green within the green ball??
  • The merging of these definitions is perhaps a component of a new brand 7
  • Why is manufacturing to a new, post industrial green economy so important, and how does it relate to green building, and our new American brand? Americans build things, from tiny micro chips to space shuttles, and we need to continue doing so, but we must do this differently, and responsibly. Providing our children with a healthy planet, while still creating a healthy economy are not mutually exclusive goals. 7
  • 7 Essentially, traditional manufacturing has contributed significantly to the wealth creation and economic prosperity of this country. At the same time, it was this very sector that contributed to global warming, pollution, and an over reliance on foreign oil. We’ve lead the world for so long, in so many ways, that we never had any reason to “think and act differently”. Sometimes it takes a paradigm shift to change a culture. In 1979 Manufacturing employed about 21 million workers, in 2008 roughly 14 million, or 33% drop. Higher wage than service jobs (2003 - $54K vs. $29K*) Each $1 million in final sales of manufactured products support 8 manufacturing jobs, and 6 jobs in other sectors Largest share of R&D (2002 - 60%, innovation, new products) U.S. Exports (manufacturing contributed 62% of american export earning, U.S. exports have fallen from 13.5% 2001 to 11% 2002) Value-added (American SME’s supply parts for finished goods) According to “the skills gap 2001, what manufacturing is facing is not a lack of employees, but a shortfall of highly qualified employees with specific educational backgrounds and skills Homeland Security lists nine industries, including engine and power transmission and electrical equipment manufacturing, as critical manufacturing sectors to the security of the US. The gross domestic product ( GDP ) is a basic measure of a country's economic performance and is the market value of all final goods and services made within the borders of a country in a year . It is a fundamental measurement of production and is very often positively correlated with the standard of living. In 1995 Manufacturing was 22% of GDP, in 2008 just above 11%. In 1979 Manufacturing employed about 21 million workers, in 2008 roughly 14 million, or 33% drop.
  • 7
  • 7 1995: 22% manufacturing 2008: 11% manufacturing ($1.6 Trillion) The gross domestic product ( GDP ) is a basic measure of a country's economic performance and is the market value of all final goods and services made within the borders of a country in a year . It is a fundamental measurement of production and is very often positively correlated with the standard of living. In 1995 Manufacturing was 22% of GDP, in 2008 just above 11%. In 1979 Manufacturing employed about 21 million workers, in 2008 roughly 14 million, or 33% drop. However, if Manufacturing were a country - it would be the 8th largest country in the world, between Italy and Brazil.
  • 7 In part this drop is the result of productivity gains Computer and technology innovations that lead to greater automation, less manual labor, Secondly, cheaper offshore labor manual labor is cheaper overseas. However, the US is one of the most productive countries In the world. Each employee generates $94,000 dollars per year And, recall that each manufacturing job also creates minimally 4 additional service jobs.
  • 7 2008 Pennsylvania Manufacturing Economy $553 billion (5% US) >685,000 Employees
  • 7 Southeast Pennsylvania 5,000 small to midsized enterprises $75 billion (14% PA) >150,000 Employees 92 Colleges / Universities Over 70,000 Degrees Awarded 46 Million People within 200 miles 20 Primary Manufacturing Industries High Grown & High Tech Aerospace Medical Device Chemical Solar
  • 7 Brazil, Russia, India, China 33% in 30 years
  • 7 The study Barry just mentioned identified six core strategies considered essential for U.S. manufacturers to succeed in the global economy. Sagan – please add: Customer-focused Innovation, Talent Acquisition, Development and Retention, Continuous Process Improvement, Extended Enterprise Management, Global Engagement, Sustainability. Each of these items are significant, but I’m going to focus on Sustainability. If you’d like more information about the report, I would be happy to you a copy.
  • 7
  • 7 Mark, consider rewording this. It’s a bit verbose for a slide in our style of presentation.
  • 7 DVIRC assists manufacturers compete and grow. We achieve this by right sizing best practice services to grow sales and improve operations. We have a progressive culture to remain ahead of the curve to determine what American manufacturers require to succeed (Our New Product Development process is ISO 9001 certified). . In 1993, we established our Lean practice for operational excellence. Lean is derived from the Toyota Production System, which is based on efficiency principles of Henry Ford. Toyota is now the world’s largest, most profitable automaker. Lean is the systematic elimination of waste by increasing efficiency, ultimately to create greater value for the customer. There are eight waste categories within any manufacturing process, examples include overproduction, transportation and inventory. Just a side note, lean is being used in healthcare, and professional services sector, we are currently working with the University of Pennsylvania. The US Environmental Protection Agency and the US Department of Commerce’ MEP launch “Lean and Clean” initiative (GSN) – combines traditional process waste elimination with environmental waste reduction such as energy and emissions. incorporating process - reducing costs, continuous improvements DVIRC launched Sustainability pilot, combining process, energy and material efficiency, ultimately to encourage manufacturers to incorporate a sustainability strategy, and adopt a triple bottom line philosophy (people, planet, profit) Full on assessments, and opportunity recommendations. Results: hundreds of thousands in saving opportunities. E3 – public and private collaborative (energy, environment, economy) – PA MEP, EPA, DOE, DOL, Penntap, Com college The core principals of lean, energy and environmental reductions or alternative solutions.
  • Market creators: Indications are public and private
  • Since 2003, Pennsylvania has invested $900 million in developing and deploying advanced energy technologies through approximately 560 projects that have created or retained 8,300 jobs in every corner of the state. The Pew Charitable Trusts ranked Pennsylvania third in the nation for green jobs earlier this year. The commonwealth has also adopted an Alternative Energy Portfolio Standard and one of the nation's most ambitious energy conservation laws. Combined, these actions will reduce annual carbon emissions by 15 million tons in 2020. The state also adopted the California Clean Car Rule. Together, these three actions will reduce Pennsylvania's greenhouse gas emissions 9 percent in 2020, or 5 percent below 2000 levels. The Governor pointed to recent reports that illustrate the economic potential of this type of action. According to the Center for American Progress, investing in renewable energy now will create 1.7 million good-paying jobs repowering America, including 70,000 in Pennsylvania. The American Council for an Energy-Efficient Economy found that if Congress passes an energy and climate bill with strengthened energy efficiency provisions, Pennsylvania households would save an average of $269 per year in reduced energy costs and the state would create 27,200 jobs over the next decade.
  • At a recent congressional hearing in Philadelphia, experts from across the region and the U.S. noted Philadelphia's national leadership in thinking, planning and building green.
  • 7 Jobs: In 2007 >68k businesses in the US generated more than 770k clean energy jobs, only .5% BUT, according to The Clean Energy Economy Report by the PEW Charitable Trusts between 1998 - 2007 clean energy jobs grew by 9.1% including white and blue collar jobs.
  • The package includes incentives to help households and small businesses take advantage of solar energy technology � a key resource for reducing electricity demand during times of peak demand when rates are most expensive � and make improvements to their homes or buildings that conserve energy
  • Gov. Rendell Stresses Economic, Environmental Importance of Action Against Climate Change Says Pennsylvania Acting Aggressively to Expand Green Economy, Curb Greenhouse Gas Emissions PITTSBURGH, Sept. 25 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell said today that America can spur a lasting and sustainable economic recovery while addressing one of the greatest global environmental challenges if it follows Pennsylvania's lead by investing in clean energy alternatives and combating climate change.Pennsylvania's leadership on this issue, he said, has created thousands of jobs and taken action to reduce greenhouse gas emissions by tens of millions of tons."I've always believed that environmental challenges are economic opportunities in disguise," said Governor Rendell during a meeting in Pittsburgh with representatives of environmental organizations based in Washington, D.C."Pennsylvania's achievements in reducing our use of carbon-heavy fuels, putting our people to work developing clean energy technologies, and promoting conservation and efficiency is the perfect example. We've brought major new energy and technology companies to our state that employ thousands of workers in wind, solar and other high-growth industries. And, at the same time, we've taken steps to reduce emissions of climate changing greenhouse gases that threaten to alter our way of life drastically and decimate our economy."Since 2003, Pennsylvania has invested $900 million in developing and deploying advanced energy technologies through approximately 560 projects that have created or retained 8,300 jobs in every corner of the state. The Pew Charitable Trusts ranked Pennsylvania third in the nation for green jobs earlier this year.The commonwealth has also adopted an Alternative Energy Portfolio Standard and one of the nation's most ambitious energy conservation laws. Combined, these actions will reduce annual carbon emissions by 15 million tons in 2020. The state also adopted the California Clean Car Rule.Together, these three actions will reduce Pennsylvania's greenhouse gas emissions 9 percent in 2020, or 5 percent below 2000 levels."Pennsylvania has made great strides in addressing these issues. We can do more though as a state and as a nation," the Governor added, saying the state is working on legislation to expand its portfolio standard by using a greater share of solar energy and to enact a statewide green building code."By committing to serious investments in clean energy alternatives and by enacting substantive federal legislation to curb carbon pollutants, we can put more of our citizens to work and help families save on their utility bills," said Governor Rendell. "At a time when our nation is beginning to recover from a national recession, taking this kind of bold action will stimulate that turnaround sooner."The Governor pointed to recent reports that illustrate the economic potential of this type of action. According to the Center for American Progress, investing in renewable energy now will create 1.7 million good-paying jobs repowering America, including 70,000 in Pennsylvania.The American Council for an Energy-Efficient Economy found that if Congress passes an energy and climate bill with strengthened energy efficiency provisions, Pennsylvania households would save an average of $269 per year in reduced energy costs and the state would create 27,200 jobs over the next decade."Many business and industrial forces oppose these measures and are lobbying heavily to defeat them because they're perceived as a threat to their interests," warned the Governor. "However, the interests of our economy, our people and our planet must prevail."Other nations are realizing the importance of renewable energy development and strong policies to combat climate change. If America sits back and waits, this opportunity will pass us by."Visit www.pa.gov or www.depweb.state.pa.us for more information on Governor Rendell's efforts to build a green economy in Pennsylvania. The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his newsletter, visit: www.governor.state.pa.us . CONTACT: Gary Tuma 717-783-1116 SOURCE Pennsylvania Office of the Governor
  • 7 Sagan, I know this is a landscape format, but could you use the vertical version, it really has a nice balance
  • 7 Sagan, I thought this could be a simple screen people could just read. But can each sentence be revealed one at a time by me clicking?
  • 7
  • Transcript

    • 1. Advanced Manufacturing within a Sustainable Economy
    • 2. From the Rust Belt
    • 3. to a Green, Sustainable Economy
    • 4.
      • To make or produce, by hand or machinery
      Manufacturing
      • In a broad sense, the capacity to endure
      Sustainability
    • 5. It’s time we make enduring goods using our heads, as well as our hands
    • 6. A New, Enduring American Brand
    • 7. Why is manufacturing critical to protect and transform? Jobs Higher Wages than Service Jobs Secondary Job Creation 60% of all R&D
    • 8. Why is manufacturing critical to protect and transform? 62% of U.S. Exports Value-Added Shortage of Highly Qualified Employees National Defense
    • 9. U.S. Manufacturing and the GDP 1995 22% 2008 11% $1.6 trillion
    • 10. U.S. Manufacturing Employment 1979 21 2008 14 Million Million
    • 11. Pennsylvania GSP / total employees 2008 $553 Billion 2007 685k Employees
    • 12. SE Pennsylvania Manufacturing 2008 $75 Billion 2007 150k Employees
    • 13. National Concern Developing Economies (BRIC) Decline of Manufacturing Jobs Global Warming Economic Growth and Environmental Stewardship
    • 14. Next Generation Manufacturing
      • Innovation
      • Global Export
      • Talent Acquisition, Development & Retention
      • Global Engagement
      Supply Chain Continuous Improvement Extended Enterprise Management Sustainability
    • 15. Sustainability
      • Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
      • 1987 World Commission on Environment and Development (The Brundtland Commission)
    • 16. Sustainability
      • Similar to the "seventh generation" philosophy of the Native American Iroquois Confederacy. The philosophy mandated that chiefs always consider the effects of their actions on their descendants seven generations in the future.
    • 17. 1993 Lean 2003 Lean & Clean, EPA / MEP 2008 Sustainability 2009 E3
    • 18. "There's no longer a question about whether the jobs and industries of the 21st century will be centered around clean, renewable energy. The only question is which country will create these jobs and these industries.” President Obama Clean Technology Economy
    • 19. ”… the interests of our economy, our people and our planet must prevail. Other nations are realizing the importance of renewable energy development and strong policies to combat climate change. If America sits back and waits, this opportunity will pass us by." Governor Rendell
    • 20. Through Greenworks Philadelphia, Mayor Nutter's visionary sustainability strategy, Philadelphia is on track to become the greenest city in America by 2015. Greenworks Philadelphia sets up goals related to reducing local energy demand, lowering greenhouse gases and creating new green jobs, as well as significantly increasing the city's green infrastructure. Mayor Nutter Posted on Tue, Jul. 7, 2009
    • 21.
      • “ Growing attention and financial support from both the private and public sectors indicate that the clean energy economy is poised to expand significantly.”
      • Jobs
      • Scientists, Engineers, Electricians, Machinists and Teachers
      • Venture capital investments in clean technology totaled $12.6 billion over the past three years.
      Clean Technology Manufacturing
    • 22. American Recovery and Reinvestment Act DOE, Energy Efficiency and Renewable Energy $16.8 billion Pennsylvania $650.9 million Alternative Energy Investment Fund PECO / Exelon $342 million Energy Efficiency Incentive Federal, State, Regional incentives
    • 23. Ranked 3rd In Nation for Green Jobs* Ranked 5th In Nation for Green Businesses* Pennsylvania’s Green Economy, 2007
    • 24. Clean Energy Economy*
      • Clean Energy
      • Product, Transmit and Store Clean, Renewable Power
      • Energy Efficiency
      • Environmentally Friendly Production
      • Mitigate harmful environmental product, develop alternative eco-friendly products
      Conservation and Pollution Mitigation Manage natural resources, mitigate emissions of greenhouse gases, recycle materials for production Training and Support
    • 25.  
    • 26. AERZEN USA Corporation
            • 2005
            • Developed plans to build a new eco-friendly “Green” office and manufacturing space.
            • April 25, 2008
            • Building is completed and officially inaugurated.
            • February 5th, 2009
            • United States Green Building Council (USGBC) awarded Aerzen USA the LEED Gold certification.
            • Aerzen USA is the first manufacturing facility in Pennsylvania to achieve this high level and one of the first in the USA.
    • 27. Thank You! Mark Basla Vice President Marketing & Business Development [email_address]