|
Despite recent job reports showing slow growth in the private sector and job reductions in the public sector, manufacturers in McMinnville and across the United States have made dramatic productivity improvements over the past two decades. Against a backdrop of disappointed policy makers debating ways to stimulate job growth, these company executives intend to move forward now. Their aim is to transform the way they do business to become more competitive in the global marketplace.
Help is available. The American Small Business Coalition recently released an update of its Next Generation Manufacturing study (NGM). First published in 2009, this national survey gathers information designed to help small- to mid-sized manufacturers. In particular, NGM results help businesses better define their strategies and focus on factors necessary to compete globally. NGM evaluates manufacturers across six best-practice areas known as the Next Generation strategies: customer-focused innovation, engaged people, superior processes, supply-chain management and collaboration, sustainability and global engagement.
The study reveals several interesting issues.
First, there are wide gaps between what manufacturers believe are the important success factors and their own capacity to achieve world-class performance. For example, while 85 percent of respondents believe customer-focused innovation is important to their companies’ success over the next five years, only 46 percent believe that they perform at a world-class level in this area.
Second, 70 percent of respondents said a change in ownership and senior management in the next five years was likely, but only 35 percent have a key component in preparing future leaders: state-of-the-art workforce skills development. The study indicated small manufacturers are less likely than larger firms to have best practices in place and to be near world-class performance.
Fortunately, many Oregon manufacturers enthusiastically have begun their journey toward superior performance. Like many of the study respondents, these companies are showing greater gains in the development of superior processes and focus on improvement by using “lean” operating systems to maximize efficiency.
In McMinnville, several companies have invested energy, time and money into transforming operations in the pursuit of operational excellence.
Betty Lou’s, a nationally recognized manufacturer of nutritious fruit bars, organic snacks, cookies and vegan products, has used lean manufacturing techniques to improve production scheduling, plant layout and inventory management. These have increased the company’s production capacity. The company has grown significantly through cross-training, inventory innovations and the development of an atmosphere of continuous improvement.
Cascade Steel Rolling Mills has been engaged in lean manufacturing efforts since early 2009 and has implemented extensive workplace organization improvements to increase efficiency. Cascade invested a great deal in workforce development tools, including staff training and organization-wide decision making.
Among those taking similar steps are Amerson Precision Sheet Metal, Meggitt Polymers and Composites, Bioanalytical Systems Incorporated, D-Stake Mill, Freelin-Wade, Mission Foods and North West Unmanned Aerial Vehicles. Their activities include investments in workforce training, systematic improvement and leadership development. The results are increased productivity, profitability and the creation of great workplace cultures.
Through the active efforts of McMinnville Economic Development Partnership, several of these businesses received federal, state and local grants. Company leader’s network and share resources to maximize these opportunities through groups like the Mid-Willamette High Performance Consortium.
To return our country to its position of global manufacturing prominence, I believe it’s critical for companies to broaden their focus and incorporate the full range of areas reviewed in the NGM study. There are strong indications that previously outsourced manufacturing is returning to the United States to take advantage of innovation, quality and logistics and to avoid the long lead times, shipping costs and threat to intellectual property associated with production in China.
The companies that are assertive in adopting these growth strategies will be well-positioned to take advantage of emerging opportunities. McMinnville manufacturers certainly are among those doing so.
Guest writer Chris Scherer is executive director of Oregon Manufacturing Extension Partnership (OMEP), one of 60 such nonprofit resource organizations nationwide. OMEP receives state, federal and private funding to help Oregon companies grow.
Commentary by Chris Scherer for the News-Register
|
