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Missouri Manufacturing 2016


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Presented by Russell Humphrey, Missouri Enterprise, for MFG DAY 2016.

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Missouri Manufacturing 2016

  1. 1. Manufacturing In Missouri Russell Humphrey Area Business Manager Missouri Enterprise
  2. 2. Slide 2 What is Manufacturing? Wikipedia: Manufacturing is the production of merchandise for use or sale using labor and machines, tools, chemical and biological processing, or formulation. Finished products, subassemblies, or component materials may all be manufactured. US is now the 2nd largest manufacturer in the world US manufacturing productivity has increased 2.5X in 30 years
  3. 3. Slide 3 2016 Largest Manufacturers Based in the US (Industry Week). 2015 rank in ( ) 1.) Exxon Mobil (1) 2.) Apple (3) 3.) GM (5) 4.) Ford (7) 5.) Chevron (2) 6.) GE (6) 7.) HP (9) 8.) Phillips 66 (4) 9.) Boeing (12) 10.) Microsoft (13) 11.) Valero (8) 12.) IBM (11) 13.) P & G (14) 14.) Philip Morris (16) 15.) Marathon Oil (10)
  4. 4. Slide 4 Why Might Manufacturing Interest Students?  Higher than average wages  3,500,000 new mfg hires needed in next 10 years  Projected gap of 2,000,000 qualified hires— “skills gap” (computer, problem solving, math)  2 STEM jobs per unemployed STEM graduate  Does not necessarily require a four-year degree
  5. 5. Slide 5 What are skills that modern manufacturers are looking for? • Understanding of hydraulic, pneumatic, mechanical and electrical systems • Work with computerized systems/coding • Read manufacturing blueprints • Operate and program automated manufacturing systems (PLCs and CNCs)
  6. 6. Slide 6 Why is manufacturing important to the USA? Big - $2.1 Trillion (up 27% from 2009) Productive - 12.3% of GDP from 9% of employment Lucrative - 17.9 million jobs – avg. wages $24.89/hour Interesting - Manufacturing does 3/4 of all private R & D Good for USA - 61% of all exports are manufactured
  7. 7. Slide 7 Why is manufacturing important to Missouri? Over 250,000 employees working in 6,500 manufacturers in MO Average manufacturing compensation $67,400 Over 435,000 indirect mfg. jobs in MO Manufacturing has large economic impact per job (11% of jobs create 13.9% of SDP) Jobs pay well above state average
  8. 8. Slide 8 What Are Some Disruptive Technologies? Additive Manufacturing (3-D Printing) Next Generation Robotics Internet of Things (IoT)-$11.1 trillion industry by 2025, which currently is more than 10% of the world economy today. Coding/Programming
  9. 9. Slide 9 Largest Manufacturing Sectors in Missouri by Employment Food 38,800 employees Transportation 38,000 employees Fabricated Metal Products 30,400 employees Machinery Manufacturing 25,700 employees Chemicals 18,600 employees
  10. 10. Slide 10 Manufacturing Exports From Missouri $14.1 Billion About 39.5% of mfg. goods are exported Largest Export Partners: Canada Mexico China Japan Germany
  11. 11. Slide 11 Largest Categories of Mfg. Exports Transportation Equipment Chemicals Food Products
  12. 12. Slide 12 Issues For Manufacturers 1.) Hiring skilled employees 2.) Developing new products and markets 3.) Need competitive costs & tax rates 4.) Regulation cost ($19,564/employee) (NAM) Reducing energy usage (manufacturing uses 1/3 of US energy)
  13. 13. Missouri Enterprise Russell Humphrey Area Business Manager 573.837.2554
  14. 14. Slide 14 Our Mission: Help Missouri Manufacturers Succeed Missouri Affiliate of the nationwide MEP program since it began in 1983 Public-Private Partnership (support from NIST and MO DED) 30 people statewide in 6 offices Evaluated according to the financial impact of the work we do
  15. 15. Slide 15 What Does Missouri Enterprise Do? Focus - Work primarily with Small and Medium- Sized Manufacturers (6,500 in Missouri) Increase topline sales and bottom line profits 1.) Deliver Training and Hands-On Projects 2.) Networking Resource for Companies
  16. 16. Slide 16 Primary Areas of Focus Continuous Improvement Business Growth Workforce Development Sustainability Supply Chain Management
  17. 17. Slide 17 Continuous Improvement Lean Manufacturing / Continuous Improvement Not a method for reducing headcount Food Safety-HAACP, FSMA, BRC, SQF ISO (Quality, Environment, Safety, Food Safety, Info Security) Six Sigma Root cause analysis, data-driven problem solving
  18. 18. Slide 18 Business Growth Marketing Plans Marketing Research/Customer Surveys Competitive/Industry Analysis Product Design Strategic Planning
  19. 19. Slide 19 Workforce Development Continuous Improvement Training Supervisor Training (TWI Model) ISO Training Six Sigma Training APICS CPIM Training (Production/Purchasing/Inventory)
  20. 20. Slide 20 Sustainability Energy Audits ISO 14001 (Environmental), ISO 50001 (Energy), ISO 27000 (Info Security) Safety Assessments and Training Energy Audits for USDA REAP Grant
  21. 21. Slide 21 Supply Chain Management Material Purchasing, Scheduling and Inventory Control Production Scheduling Warehouse Layout Finished Goods Inventory Levels Shipping Logistics
  22. 22. Slide 22 Recent MEP Emphasis Areas Leadership for Continuous Improvement For first level supervisors. Turn “firefighters” into proactive leaders – Manage for Daily Improvement Food Safety – FSMA, HAACP, BRC, SQF, Safe Feed/Safe Food SCM Strategic Planning
  23. 23. Slide 23 Partners and Resources for Manufacturers Small Business and Technology Development Center (SBTDC) Missouri Department of Economic Development Trade Act Adjustment Center (TAAC) Procurement Technical Assistance Center (PTAC) City and County Economic Development Groups Regional Planning Commissions World Trade Center Tech 44 – The Ideas Highway Missouri Association of Manufacturers Associated Industries of Missouri (AIM)
  24. 24. Slide 24 Typical Engagement with Missouri Enterprise Where can we assist? 1.) Lead or Facilitate Projects 2.) Offer Objective, 3rd Party Perspective 3.) Specialized Skills or Training Project Structure: 1.) Assess 2.) Plan 3.) Implement
  25. 25. Slide 25 Questions? Thank you for inviting me to be here today Thank you for coming out today to celebrate manufacturing Russell Humphrey 573.837.2554