While the integration of your external supply chain is critical, companies should first make sure that their internal supply chain is truly integrated and collaborative to reach the full benefits of a lean supply chain.
The Board of Directors of Innovative Manufacturers’ Center (IMC) has named Dan Manetta as its Executive Director/CEO effective January 1st, 2016.
Manettta has more than 20 years’ experience in strategic planning consulting, professional instruction on leadership and management topics and developing corporate training and education programs in both the manufacturing and service industries. He is president and CEO of Universal Education Systems and previously held positions as Procurement Team Manager and Manager of Training and Development at Lycoming Engines, Vice President of Corporate Education at Citizen’s & Northern Bank and most recently owned and operated a successful printing company.
Manetta holds a Master’s in Business Education from Bloomsburg University, a BS in Economics from Penn State University, received a PA Teacher’s Certification in Computer Systems and Accounting and has numerous hours of additional training in leadership, management, banking and manufacturing. He served as a Captain in the US Army and Team Commander for NATO Forces in Europe.
Manetta is a resident of Cogan Station, PA with his wife Elizabeth and three children. Manetta is also involved in various programs and organizations involving youth leadership, education and Christian missions and ministries.
Manetta will be replacing James Shillenn, who will be retiring at the end of 2015 to pursue personal interests.
Apply Now for Ben Franklin SGICC’s 2016 Shale Gas Innovation Contest!
Just a reminder to all Innovators that applications can be submitted between now and 11:59PM on February 1st for the Ben Franklin Shale Gas Innovation and Commercialization Center’s 5th Annual Shale Gas Innovation Contest. A simple online application can be found at http://www.sgicc.org/2016-shale-gas-innovation-contest.html.
A total of $80,000 in cash prizes for the four best new product ideas, or service concepts that are either in the development stage or recently launched by researchers, entrepreneurs, or small businesses in Pennsylvania or West Virginia can apply. Ideas that have applicability to any aspect of the O&G industry or their suppliers, or that focus on natural gas or NGL utilization or conversion, or that address EH&S aspects related to the industry are all of interest.
In addition to the cash prizes, successful applicants will gain exposure to investors, potential partners, and industry sponsors at this year’s Finals Event already scheduled to take place on May 18th, 2016 at the Hilton Garden Inn in Southpointe, PA. In addition there will be a poster session included to highlight some of the most promising technologies under development from our regional university sponsors and partners.
This 5th Annual Shale Gas Innovation Contest’s GOLD Sponsor is the Ben Franklin Technology Partners (http://www.benfranklin.org). Industry sponsors include: AquaTech (www.aquatech.com), Chevron Technology Ventures (http://www.chevron.com/ctv/ctvi/), EQT Corporation (https://www.eqt.com/ ), First National Bank (www.fnb-online.com ), GE Oil & Gas (http://www.ge-energy.com), Inflection Energy (http://www.inflectionenergy.com/), LPR Energy (http://www.lprenergy.com/), LPR Land Services (http://www.lprls.com/), the Marcellus Shale Coalition (http://marcelluscoalition.org), PPG Industries (http://corporate.ppg.com/), Praxair (www.praxair.com), Steptoe & Johnson PLLC (http://www.steptoe-johnson.com/ ), and Williams (www.williamsinthenortheast.com). Non-Profit sponsors include: Carnegie Mellon University’s Scott Institute for Energy Innovation (http://www.cmu.edu/energy/), Penn State University’s Institute for Natural Gas Research (http://www.ems.psu.edu/INGaR) the University of Pittsburgh’s Center for Energy (http://www.engineering.pitt.edu/cfe/), and West Virginia University’s Energy Institute (http://energy.wvu.edu/).
Finalists will be chosen by a panel of industry experts. To download an application, visit www.sgicc.org and click on the 2016 Shale Gas Innovation Contest tab. Deadline to enter is 11:59PM on February 1st, 2016. For details regarding eligibility or other questions, contact Bill Hall at either 814-933-8203 or billhall@psu.edu.
About the SGICC
The Ben Franklin Shale Gas Innovation and Commercialization Center (www.sgicc.org) is designed to harness innovation and new technologies as a means to maximize the economic return to Pennsylvania’s citizens from the Marcellus and Utica shale formations. The Center’s goal is to increase sustainable employment and wealth creation in Pennsylvania that has the potential to outlast the initial exploration, production and transportation of natural gas from the formations. The Center will also identify, support and commercialize technologies and early-stage businesses that enhance responsible stewardship of the environment while properly utilizing this transformative energy asset.
Check out the newly released video highlighting our manufacturing client, Gilson Boards. IMC, along with our IRC Network partners, is leading a statewide initiative to help manufacturers implement and utilize an open innovation business model. To learn more about how IMC can help you innovate, contact us at info@imcpa.com.
Gilson Boards Open Innovation Video
Technology, innovation, and advanced manufacturing capabilities are the agents of change that you need to understand, and embrace
(American Machinist – Larry Korak: 12-23-15) The “Factory of the Future” is being built on technology, innovation, and advanced manufacturing capabilities. But what is it, exactly? And what are the technologies you need to know about to help your manufacturing company embrace the change?
The definition of the Factory of the Future is evolving; even the name is in flux. Some call it Smart Manufacturing, Industry 4.0, or the Digital Enterprise. While the terms vary, there’s one thing that is clear: The Factory of the Future is the product of fast-changing disruptive technologies hitting manufacturing like a cyclone.
Information technology and operational technology are both seeing drastic innovations, and the convergence of these two forces is creating a paradigm shift. Manufacturing is experiencing the fourth industrial revolution. Many analysts predict that the stagnation and slow recovery that followed the Great Recession will evolve into a period of expansion for manufacturers. Although margins will likely remain compressed, tools for greater savings and improved capabilities will make it easier for manufacturers to achieve profits and growth. The impact of these technologies and the Factory of the Future is growing.
IndustryWeek reports that 40% of manufacturers believe that smart manufacturing and its foundational technology—the Internet of Things—are within reach and it’s the right time to invest.
Huffington Post reports that early adopters of modern solutions that have at least partially implemented smart manufacturing initiatives have documented measurable results:
• 82% reported increased efficiency
• 49% reported lower product defects
• 45% reported customer satisfaction gains
The impact promises to grow and be even more substantial as manufacturers and their suppliers deploy technologies across the entire manufacturing landscape, from product design to supply chain logistics. Greater speed, value, innovation, and closer alignment with demanding customers will be the new normal.
Five IT Forces Driving Modernization
IT solutions are at the foundation of the Factory of the Future. New IT technologies, from cloud computing to the Internet of Things, are changing the way manufacturers do business—from the shop floor to the back office and throughout the entire value chain.
Manufacturers should consider harnessing more than one of these IT capabilities in order to fully benefit from the next generation technologies transforming manufacturing.
Value chain visibility — In order to achieve greater visibility across their value chain, manufacturers must eliminate silos and get disparate systems to communicate. After all, data is meaningless if it is stored in silos and if it lacks the full dimension of context and consequence. They need to ensure that real-time access is available to easily monitor the details of the complete manufacturing operation—within the four walls and beyond. Interoperability is the key word here; it’s a step beyond simple integration. Data must be able to be consumed in context and used for event triggers and actions. A highly flexible ERP system is the starting point for accomplishing this goal.
Mobile and social connectivity — Manufacturing leaders can’t be tethered to their offices, desks, and PCs. They walk the plant floor. They make decisions on site, in the heart of the operation. They need 24/7 access to critical data and systems from remote locations. This can range from a maintenance technician who’s checking the inventory of a spare part while repairing a critical piece of equipment, to a warehouse manager using a tablet to confirm the location of forklifts and personnel. We live on a planet with over 7.2 billion active SIM cards—that’s more mobile devices than there are human beings.
On the social front, manufacturers need to take advantage of integrated tools to capture conversations and use those to build a knowledge base and document key decisions relating to product design and customer orders. In a recent survey, 61% of CEOs said socially-enabled business processes are important to business. McKinsey Global Institute estimates suggest that by fully implementing social technologies, companies have an opportunity to raise the productivity of interaction workers—high-skill knowledge workers, including managers and professionals—by 20 to 25%.
Cloud-enabled agility — More than ever before, manufacturers are being forced to keep pace with fast-changing global trends. New markets, new customer demands, omni-channel shopping, and growing competition from start-ups are driving manufacturers to become more agile. Accelerated product launches, more product offerings, highly configured products, and additional value-add services are among the ways manufacturers strive to remain relevant and maintain or gain market share.
Cloud solutions, because they offer faster deployment and implementation, support manufacturers in these efforts. Cloud solutions allow manufacturers to easily add branches, bring on new fabricating facilities, and set up new distribution hubs without needing to invest in hardware and servers. Implementations take weeks, rather than months; and new sites can be online and producing with remarkable ease.
Analysts are reporting increased adoption of cloud solutions. A report by IDC says, “According to IDC’s 2015 Vertical IT and Communications Survey of 602 United States–based manufacturers, cloud services are at the top of manufacturers’ IT initiatives, and just over 43% of manufacturers are using public cloud and 56% are using private cloud in pilot, proof of concept, or in production. We see similar adoption rates worldwide. In fact, a majority of manufacturers worldwide are currently using public (66%) or private (68%) cloud for more than two applications, according to the respondents that qualified for IDC’s 2014 CloudView Survey.”
Data ingenuity — As gears, grease, and steam ran the manufacturing plants of the last century, today data is the force that makes modern manufacturing cost-effective. Insights derived from data analysis help manufacturers focus on markets, buying trends, customer attributes, cost of raw materials, time, labor, and operational costs, as well as details about the product in use in the market and consumer opinions. As the Internet of Things moves past today’s infancy stage, the role of Big Data will only increase. The challenge, therefore, lies not in collecting as much data as possible, but in setting a data strategy. Manufacturers need a clear roadmap for how to turn their data into meaningful actions. Data paralysis is a real threat that must be avoided.
Customer centricity — The fifth element of the Factory of the Future is perhaps the most critical. Today’s market economy has evolved into a customer-centered model that stresses speed of delivery, product value and a positive customer experience. Consumers—in nearly every industry—are highly vocal, fickle, and quick to turn elsewhere if they are disappointed. Manufacturers are not exempt from dealing with easily outraged customers who are willing to share their complaints about a product or service with hundreds of thousands of “close friends” on social media. Modern customer relationship management (CRM) solutions, collaborative tools, online portals, and product configuration abilities all help to provide customers with a positive experience. Warranty management and after-market service abilities also help to enhance value after the point of sale.
Operating Technologies for the Future
Operational technology is also a vital part of the Factory of the Future blueprint. Shop floor production, fabrication, assembly, automation, material handling, logistics, scheduling, and labor tracking are all operational elements that are receiving careful scrutiny from manufacturers looking to improve their efficiency.
Faced with extremely thin margins and volatile supply chain costs, manufacturers are increasingly turning to operational processes for improvements in efficiency and productivity. In many cases, manufacturers have already cut the typical excesses out of their budgets. Their workforce is lean. They’ve eliminated non-essential projects and perks. And they have little control over market prices and competing vendors. This leaves operational tactics as the best way to control shop floor costs and improve profitability.
Here are five operational technologies that are helping to propel manufacturing:
Robotics — Robotics are becoming more and more import to manufacturers that are looking to control costs and improve accuracy in highly dangerous or difficult conditions. The last several years have seen a sharp resurgence in orders of industrial robots, roughly tripling in the wake of the Great Recession. The global robotic systems market (including software peripherals and other related costs) is estimated to reach $41 billion by 2020, according to Allied Market Research.
According to Time, online retail powerhouse Amazon recently demonstrated its faith in using robotics for warehousing operations when it purchased Kiva Systems for $775 million and announced plans to roll out 10,000 robots into a network of warehouses, a move which it says will realize fulfillment cost-savings of up to $900 million— or up to 40% savings on cost per order.
Product innovation and product configuration tools — To meet customer demand for highly personalized products, manufacturers are turning to product configuration tools. These tools help manufacturers manage the complexity of design variations, product quotes and production specifications. Integration with online portals and CAD solutions allow customers to visualize designs, adding to the positive customer experience—while also improving accuracy and speeding the quote-to-cash cycle.
Production innovation has been greatly enhanced by 3D printing. Additive manufacturing has made prototyping and design of new products much easier, quicker, and more economical. Manufacturers are gradually finding applications for additive manufacturing that go beyond experimentation—and that instead are relevant, practical, and profitable. According to a recent Innovations Survey, two-thirds of manufacturers are already adopting 3D printing. The study also estimates that the global 3D printer market will reach $6 billion by 2017 (up from $2.2 billion in 2012).
Closed-loop quality control — Manufacturers are using automated quality control methods to help control consistency and brand value. Consumers have little tolerance for unexpected variations. Manufacturers are learning they can deploy sensors and monitoring devices at numerous checkpoints in the production cycle—rather than only at final stage inspection to help detect noncompliance issues early and minimize waste.
Late stage assembly — As customers are increasingly demanding engineer–to-order (ETO) and made-to-order (MTO) products, manufacturers are turning to delayed assembly or late-stage assembly to help them manage this mass consumerization trend. By designing products in interchangeable modules, components can be manufactured and inventoried while the manufacturer waits for an order. When the order is received—either at the retail outlet, online portal, or through a channel partner—the product is assembled with the appropriate details and accessories, and drop shipped to the customer.
A similar concept is distributed manufacturing where the raw materials and methods of fabrication are decentralized, and the final product is manufactured very close to the final customer. Distributed manufacturing is a growing trend, like reshoring, where manufacturers, their suppliers, and subcontractors work to form the right combination of proximity to customer and a productive location. Cloud deployment supports this agility and “pop up” manufacturing movement by letting manufacturers deploy systems in a matter of weeks, not months or years.
IoT-aided logistics supply chain management — The Internet of Things (IoT) will undoubtedly impact many aspects of manufacturing. Supply chain management and logistics seem to hold some of the greatest potential. Already scanners, bar codes, and GPS tracking are being used to monitor the movement of goods in the warehouse and on trucks to customers. A recent survey indicated that:
• 35% of manufacturers currently collect and use data generated by smart devices to enhance manufacturing/operating processes, and an additional 17% plan to do so in the next three years;
• 38% currently embed sensors in products that enable end-users/customers to collect sensor-generated data, with an additional 31% planning to do so in the future;
• 34% believe it is “extremely critical” for U.S. manufacturers to adopt an IOT strategy.
This is an exciting time for manufacturers. Economic recovery and global growth point to optimism on the horizon. The Factory of the Future is right around the corner. The most important take-away is that manufacturers need to start now in order to remain competitive in the new manufacturing paradigm. A wait-and-see attitude is highly risky, putting companies in danger of losing market share to an existing competitor or a start-up with a low-cost alternative product.
Manufacturers’ ERP system is the foundation upon which they can build the Factory of the Future. They need an ERP system that has a flexible architecture so the solution can expand along with their company, and they can easily integrate specialized applications such as CRM solutions or product configuration tools to meet their changing needs.
Manufacturers also need to consider their deployment options for the disruptive technologies that will help shape the Factory of the Future. Cloud deployment is the great enabler for solutions like Big Data and the Internet of Things. Cloud deployment offers the agility and storage needed to fully incorporate the vast amount of sensor data, customer account data, product history, and expense data needed to be proactive and in-tune with customer expectations.
(Larry Korak is the Director of Industry Strategy Direction, Industrial Manufacturing at Infor, a developer of enterprise software ranging from financial systems and resource planning to supply chain and customer relationships.)
Here are the biggest, shiniest tax extenders manufacturing and distribution companies will find bundled in the $650 billion tax deal that passed in December.
(IW – Brian Berning and Rick Schreiber: 12-27-15) The holiday season is here once again and good taxpayers have been eagerly awaiting decisions from Congress to bring bundles of tax extenders and joy. As was the case last year, and as many analysts predicted, Congress arrived just in the nick of time to extend tax provisions, bringing tidings of fiscal cheer. The bill, which was unveiled after weeks of negotiation, is expected to provide about $650 billion in total tax relief.
Manufacturing and distribution (M&D) companies were particularly excited for Congress to arrive with tax extenders this holiday season because the package was so generous last year, and their holiday haul did not disappoint. The following are among the biggest, shiniest tax extenders M&D companies found under the tree this year.
The Work Opportunity Tax Credit (“WOTC”) – Code section 51
The WOTC, which Congress renewed for five years, is projected to cost the Federal government $1.4 billion in treasury revenues over a 10-year budget window, making it one of the more expensive tax extenders in Congress’ bundle.
The WOTC is a non-refundable wage credit intended to increase job opportunities for certain categories of disadvantaged individuals. WOTC-eligible hires include certain welfare recipients, ex-felons and veterans.
For most eligible hires that remain on a company’s payroll for at least 400 hours, an employer can claim an income tax credit equal to 40 percent of wages paid during the worker’s first year of employment up to a certain wage maximum. For example, the wage maximum for most WOTC-eligible hires is $6,000, for a total credit of $2,400, but the wage maximum can be much higher for certain veteran workers.
Recent studies have shown that the WOTC increased wage income of disabled veterans and increased employment among long-term welfare recipients overall.
Section 179 Expensing Limitations – Code section 179
Section 179 is a mechanism by which smaller companies are able to expense (deduct immediately) the cost of investments in equipment rather than depreciate them over time. The Section 179 provision in this year’s package permanently extends the 2010-2014 small business expensing limitations and phase-out amounts.
Many had debated whether the stimulus was necessary to keep around. Small businesses can breathe a sigh of relief now that the higher thresholds, at $500,000 and $2 million, have been made permanent.
Once a company’s investment reaches at least $2 million, the amount eligible is reduced dollar-for-dollar for investments in equipment over $2 million, up to the investment amount of $500,000. Thus, once a company’s investment reaches $2.5 million, no deduction is allowed.
Previously, the threshold had been $25,000 with a phase-out beginning at $200,000 (i.e., no deduction would be allowed when investment is over $225,000).
Research and Development Credit (“R&D Credit”) – Code section 41
Perhaps the most positive portion of this year’s extender package is Congress’ permanent extension of the R&D Credit tax provision. Long in existence, it had previously been extended numerous times, lapsed for one year and even been extended retroactively.
Generally, the R&D Credit provides an income tax credit for a certain amount by which qualified research expenses exceed a base amount.
There are typically two different methods for calculating the R&D Credit: one determines the base amount using gross receipts and the other determines the base amount using a three-year look-back for average R&D spending.
Qualified research expenses must be experimental for the purpose of discovering information that is technological in nature and used in the development of a new or improved product, process, computer software technique, formula or invention that is to be leased, licensed or used by the company.
The only thing holding the R&D credit back from a permanent extension had been its hefty price tag of nearly $180 billion. Both parties, as well as most economists, agree that there is an economic justification for subsidizing R&D spending. Studies show that not only does R&D spending benefit the private firm in terms of return from innovation but it also seems to benefit society as a whole.
From the perspective of a private firm, there is no way to capture the entire return from innovation because such innovation will provide valuable information to others in the marketplace who will exploit it, regardless of patents and secrecy. The R&D Credit seems to compensate innovative taxpayers for the loss of that return.
Looking forward, with the credit’s annual uncertainty gone, companies will be able to engage in better long-term planning for research projects, which can only increase the credit’s effectiveness.
This year, manufacturers hung their stockings by the chimney with care in hopes that Congress’ tax package would bring a few shiny new gifts. While the bill brought a number of fiscal treats, it also ripped off a few economic bandages that had benefitted manufacturers, like bonus depreciation.
However, the removal of short-term economic stimuli serves as a bellwether of the nation’s stronger economic footing. With that in mind, and these tax provisions get checked off their wish lists, manufacturers can be well on their way to feeling the holiday cheer all year long.
(Rick Schreiber is a Partner and the national leader of BDO’s Manufacturing & Distribution practice; Brian Berning is the Office Managing Partner for BDO’s Cincinnati office and is a leader of BDO’s Technology & Life Sciences practice.)
Ultimately, a manufacturer’s suppliers are its most valuable asset, and the ways in which supplier relationships are managed have evolved over the years—the old ways included charge-backs (mainly a retailer mechanism against suppliers for a lack of performance) which levied fines or deductions as a means of corrective action against suppliers.
According to Supply Chain Digest editor Dan Gilmore, in the 1990s, Kmart used to take 2 percent off the invoice just on the assumption that every supplier would incur violations and by including the automatic deduction, they were taking the most efficient approach.
But in today’s competitive environment, collaborative and strong working relationships with suppliers are perceived as a means to actually deliver substantial benefits for both manufacturers and suppliers alike.
Supplier relationship management (SRM) initiatives are on the rise and those companies that have successfully implemented the programs have realized real dollar value return on investment (ROI).
Why SRM now?
The notion that retailers and manufacturers can realize ROI by partnering with their suppliers, rather than adding more aggressive requirements, slapping them across the knuckles for every slip-up, and squeezing a dollar here or there for minor issues, isn’t all that new.
In fact, only in the past decade have leading companies sought out strategies to build enterprise-wide programs that form friendly working relationships with suppliers. Today, the majority of firms across all industry sectors are still in the early stages of this journey.
Pressure to develop more collaborative relationships with suppliers stem from several sources. One is the continued focus on downsizing the number of suppliers in a supplier network which has expanded to include raw material or Tier 2 and 3 suppliers because of the need to ensure compliance at every level.
While this action is mostly driven by a desire to increase volume leverage and reduce transactional costs, when combined with consolidation on the sales side, the net effect is to reduce the base to a core group of suppliers that provide the best overall performance. Another is the imperative to speed up new product development and commercialization, and deliver a steady flow of innovation for customers at a time when internal R&D resources are overstretched.
Regardless of size, companies sourcing from low-cost countries need to implement technology tools to help manage the supplier base. These solutions make dramatic improvements by boosting collaboration among the distinctive internal and external groups, standardizing processes and documents, and acting as a central knowledge base to store and share all related data, which in turn, provides holistic visibility.
Building blocks for better supplier relationships
Day-to-day management of suppliers requires a strong communication system to relay important information to each link in the enterprise. Technology is the first step in the solution that is necessary, but the components must include:
Discussion tools inherent to a web-based, centralized repository platform that maintains a history of conversations and attaches them to a specific issue or business document within the system making them easier to search and find.
Advanced technology in the Document Management Portal which allows the ability to upload and share documents to suppliers based on access rules. This provides a single reference platform with version control and systems to measure activity through electronic receipts and other acknowledgements, ensuring that suppliers have accessed the document.
An exception-based workflow/time & action calendaring system allows users to monitor and update their current responsibilities based on user permissions. Organizations can replicate their business processes into timeline driven interactive workflows that manage each work stream.
All of these features greatly reduce manual costs and timelines of supplier management by automating the supplier documentation, certificate collection and collaborative tracking processes.
The value is real
Supply chain professionals are convinced that collaboration with strategic suppliers is a good thing. Data collected by SCM World among more than 1,000 practitioners in 2014 shows that:
Three quarters of participants believe stronger relationships deliver high or very high value for their companies;
84 percent report that strategic supplier engagement is important or very important in driving competitive advantage;
Support for cost reduction efforts and getting priority when materials or production capacity are constrained are the two most prized sources of value;
Speed to market, collaboration on quality improvements and getting supplier innovations before industry rivals are also highly rated business benefits.
Other research studies show a direct link between the quality of supplier relations and customer profitability, and average annual benefits worth $300 million among the best-performing companies.
Effective communication and collaboration can be challenging, but it is a key aspect in the improvement of supply chain relationships. By investing in technologies that yield greater value from these relationships, companies will minimize risk and improve their supply chain efficiencies. Supplier portal solutions can help companies increase their supply chain visibility and control, increase supply chain accountability, and accelerate time-to-market through proactive supply chain project management.
By Gary Barraco, director of global product marketing, Amber Road
PA Dept. of Community & Economic Development needs your help to ensure every eligible PA project is included in the Governor’s Cup entry. Entries that meet at least one (just one!) of the following criteria: 20 or more new jobs created, $1M or more in investment (construction cost, land and building), 20,000 sq ft or more in new construction or expansion qualify. Simply send project names and locations to Kara Golden at Red House Communications (kgolden@redhouse.com) no later than Friday December 4. Kara can answer questions via email or by calling 412-481-7275.
“The 2014 Governors Cup recognize the top performing states for capital investment attraction in a season that lasts all year.” by Mark Arend, www.siteselection.com. Click here for entire story.
IMC Meeting with PA House Manufacturing Caucus Members & WLCC Representatives
State lawmakers and business leaders seem to agree that Pennsylvania lags behind many other states in economic development.
On Friday, several members of the House Legislative Manufacturing Caucus met locally to consider ways to improve business and industry opportunities.
“It’s a great opportunity to share what’s happening in manufacturing,” said Williamsport/Lycoming Chamber of Commerce Executive Vice President Jason Fink. “It’s also an opportunity to share the challenges they’ve been facing.”
State Rep. Fred Keller, R-Lewisburg, was among a number of lawmakers and others who toured the Kellogg Company in Muncy in the morning. Keller said he came away impressed by the company’s emphasis on safety. “They are doing this right,” he said.
But the company faces many of the same challenges as others across the state, according to officials. They noted the need for young people to pursue training that will help them find the work where they will be needed.
State Rep. Jeff Wheeland, R-Loyalsock Township, noted that the aging workforce locally will need to be replaced by the next generation. “For our youth there will be so many job opportunities for those that are in demand,” he said. He added that the local area is blessed to have educational institutions such as Pennsylvania College of Technology that offers curriculums that train people for such jobs.
State Rep. Eli Evankovich, R-Murrysville, chairman of the Manufacturing Caucus, said economic development should include government partnering with business. “We need to have government move at the speed of business,” he said.
He lamented that traditional strategies are not always the best approach to business. High taxes are yet another hindrance to growing jobs. On the plus side, the state’s manufacturing base is well positioned with access to natural resources, good highways and proximity to major markets. “We are well-situated for a renaissance,” he said.
Williamsport/Lycoming Chamber of Commerce President Vincent Matteo said it’s important for state officials to understand the needs of business.
“Manufacturing drives the economy and other jobs,” said James Shillenn, executive director of Innovative Manufacturers’ Center (IMC), Williamsport. “You have to be making things.” IMC is a public-private partnership dedicated to increasing Central Pennsylvania manufacturers’ innovation, productivity and profitable growth to drive economic impact.
The group later toured First Quality Tissue in McElhattan.
IMC works with Gilson Boards, a Union County manufacturer and leader in revolutionizing snowboarding design and production, on product innovation and manufacturing process improvement.
GILSON SNOWBOARDS from Gilson Boards on Vimeo.