Manufacturing News

October 2014

Friday marked the third annual National Manufacturing Day, and the AMC’s First Annual Arizona Manufacturing Summit.

Along with thousands of manufacturers across the country, the AMC celebrated National Manufacturing in grand style with panel discussions about supply chain, skills training and the future of manufacturing, followed by lunch attended by more than 300 people, where the AMC was proud to present Governor Jan Brewer with a Champion of Manufacturing Award  for her leadership and support of the manufacturing industry in Arizona.

Luncheon attendees were also treated to a Congressional panel featuring Congressmen Paul Gosar, Trent Franks, Matt Salmon and David Schweikert.  We were honored to have the Congressmen join us to discuss topics important to our industry and were especially excited to hear from these four members of Congress who just last week received NAM’s Award for Manufacturing Legislative Excellence.

It is events like the Arizona Manufacturing Summit that show just how influential the AMC is and continues to be in the world of manufacturing policy in Arizona.

Steve Macias is the president of Pivot Manufacturing and the chairman of the Arizona Manufacturers Council

The Arizona Manufacturers Council within the Arizona Chamber is the state affiliate of the National Association of Manufacturers (NAM). For more on manufacturing and NAM, visit www.nam.org.

The Arizona Chamber of Commerce and Industry is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans. For more information visit www.azchamber.com.

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EXIM Chairman Visits Arizona

The AMC hosted the Chairman and President of the Export Import Bank, Fred Hochberg, for a roundtable discussion about the reach and effect of the Ex-Im Bank and the need to have Congress press for its re-authorization. Often considered a tool utilized primarily by large OEMs, the actual bulk of the contracts funded by the bank are, in fact, benefitting small business, including some right here in Arizona.  These small businesses count of financing from the Ex-Im Bank in order to sell their goods abroad.  Many of these small companies have quality products to sell on an international level, but are too small for some of the larger banks to attract their attention.  

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September 2014

Recently the AMC held our annual Environmental & Sustainability Summit in Prescott at the Prescott Conference Center.  There were several panels dealing with topics ranging from sustainability and green buildings to the effects on Arizona from recent EPA and endangered species rulings to how to best work with the Arizona Department of Environmental Quality.  The quality of the panelists and the interest and interaction of the audience were at an all-time high and the AMC looks forward to topping ourselves next year. In the interim, don’t forget about the monthly Environmental Breakfast meetings to quench your thirst.

Steve Macias is the president of Pivot Manufacturing and the chairman of the Arizona Manufacturers Council

The Arizona Manufacturers Council within the Arizona Chamber is the state affiliate of the National Association of Manufacturers (NAM). For more on manufacturing and NAM, visit www.nam.org.

The Arizona Chamber of Commerce and Industry is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans. For more information visit www.azchamber.com.

P.S. If you missed ESS you can access the presentations below:

Up A Creek: The Effects of EPA’s Proposed Navigable Water Rule
ESS Presentation from ADEQ
The Endangered Species Act Arizona State Lands Commissioner, Vanessa Hickman
Green Buildings in Manufacturing, Can it be Done?

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Defense cuts, Ex-Im bank weigh on aerospace companies

(Reuters) – Commercial aviation and defense companies are grappling with dwindling U.S. defense spending, an uncertain fate for U.S. export financing and questions about the readiness of the Pentagon’s top weapons program, the F-35 Joint Strike Fighter.

After surging in 2013, both sectors have struggled in 2014 as investors feared more cost pressure on defense contractors and an end to the boom in commercial aircraft orders.

The 10th annual Reuters Aerospace and Defense Summit will delve into these and other questions in meetings with top government officials and executives from U.S. and European aerospace and defense firms in Washington, D.C., Sept. 9-11.

Click here to read full article.

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BEER: A job-creating engine in the nation’s economy

As Americans gather this Labor Day in backyards, at lake cabins and in ballparks, they’ll only need to look as far as the beer in their hand to pay homage to our nation’s workforce. 

The U.S. brewing and beer importing industry puts more than two million Americans to work. A recently analysis completed by the Beer Institute found that every one job inside a brewery supports another 45 jobs outside the brewery – among industries such as farming, can- and bottle-manufacturing, warehousing, shipping, distribution and retail. 

It isn’t difficult to see how brewing creates demand for jobs outside the brewery. Agriculture – just one industry of the many that are involved in brewing – is a great example. 

Every year, brewers and beer importers buy billions of pounds of barley malt from farmers in more than a dozen states. Those same brewers and beer importers buy 1.5 billion pounds of rice, corn and other grains used to brew beer, and another 119 million pounds of hops. It takes nearly 56,000 people to cultivate and harvest these brewing staples. 

Click here to read the full article.

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Manufacturing ready to grow if skilled workers are available

by Mark Dobbins
May 30, 2014

Six hundred thousand. That’s the number of unfilled manufacturing jobs in the U.S. because employers can’t find the right people with the right training to hire.

A new study by The Manufacturing Institute and Accenture finds that while 50 percent of the companies surveyed plan to increase U.S.-based production by at least 5 percent in the next five years, more than 75 percent of those firms report a moderate to severe shortage of skilled resources, costing them 11 percent annually in lost earnings.

Why are available jobs not matching up with training?

For the last several years, I have been working through the Arizona Chamber of Commerce and Industry on various approaches to match up education with manufacturing sector needs. It’s an endeavor akin to herding cats. Terrific cats, and even excellent cats, but try herding them, and you’ll find that it takes a special skill set to move forward with change.

What I have discovered in my own personal cat-herding experience is that the landscape is covered with good people, good schools and good intentions. It is also covered with changing times, bureaucracy and resistance to change.

In a recent meeting of a national focus group I attended, the governor of Oklahoma suggested that state legislatures believe there is no money when you talk about school reform. But we do have money. We have money that could be spent on getting us to the leading edge of workforce development and not funding for the sake of funding; not funding traditional formulas whose effectiveness is questionable.

Here in our state, we’ve formed a group called the Arizona Manufacturing Partnership. It brings manufacturing and education together to understand the puzzle facing our workforce development efforts and to solve it.

There’s a difficult job ahead of our group as we butt up against preconceived notions about post-secondary education. Do you want your kids to be the first to go to college in the family? Then let’s help assure they don’t earn a degree that is unlikely to open career opportunities in this 21st century global economy. Do you want your kids to be the first in a few generations not to go to college? Why not? Well over half of the best-paying jobs in Arizona do not require a four-year degree, but do require post-high school skill education and training.

I once heard an education professional say, “We don’t train people for jobs; we educate them.” If that’s the case, we should inform students and their parents up-front that our education system will not be a direct link to a career and the American dream. We should be able to say just the opposite.

Working together we can grow the Arizona economy for all by training a qualified workforce. The Arizona Manufacturing Partnership is dedicated to achieving a statewide focus on the best path for Arizona.

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Mark Dobbins is chairman of the Workforce Arizona Council; a past chairman of the Arizona Chamber of Commerce and Industry; the co-chairman of the Arizona Manufacturing Partnership; and a member of the board of directors of the National Association of Manufacturers.

 

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The List: Sequestration hurt suppliers, subs

The state’s defense suppliers and subcontractors have changed dramatically since last year as construction companies take over the top spots on this year’s list.

General Dynamics Advanced Information Systems and Honeywell International Inc., last year’s top two, are much further down this year’s list as the company’s government subcontracts decreased.

We asked Steve Macias, president of Pivot Manufacturing Inc. and chairman of the Arizona Manufacturers Council, to address some questions about the industry.

How has sequestration affected the supply chain? Sequestration had, and continues to have, a negative effect on the industry; but just as detrimental and mostly lost in …

Click here to read the full article.

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Arizona Manufacturers Council Launches New Website

azmanufacturerscouncil.com to be new online home for AMC, manufacturing news and policy

 PHOENIX – The Arizona Manufacturers Council (AMC), the state’s leading advocate for the manufacturing sector and the Arizona affiliate for the National Association of Manufacturers, has launched a new website at azmanufacturerscouncil.com.

The new website offers an attractive and engaging interface that will provide users with the latest news on manufacturing, industry-focused events and the AMC’s public policy efforts, which are focused on ensuring Arizona remains competitively positioned to grow attractive manufacturing jobs.

“I am thrilled to cut the virtual ribbon on the new azmanufacturerscouncil.com,” AMC Chairman Steve Macias said. “This great new site is just another sign of the evolution of the AMC’s profile in the state’s public policy arena. We look forward to our online presence only continuing to grow.”

In addition to the new website, the AMC can be found on Twitter at @azmanufacturing.

 

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Manufacturers: Ozone Standard Could Be the Most Costly Ever

July 31 (The Hill) — A looming Obama administration rule aimed at updating the federal ozone standard could be the single most expensive federal regulation in U.S. history, according to a new study commissioned by the National Association of Manufacturers (NAM).

The proposal, expected to be unveiled by year’s end, could lead to millions of lost jobs, $2.2 trillion in compliance costs and a $3.4 trillion blow to gross domestic product between 2017 and 2040, according to the 142-page study.

Click here to read the full article.

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Boeing Stresses Importance of Ex-Im Bank

July 31 (USA Today) — A Boeing official stressed Thursday at a Senate hearing the importance of Export-Import Bank financing to sell planes overseas, even as House leaders threaten to abolish the bank.

Marc Allen, president of Boeing Capital Corp., told the Senate Commerce, Science and Transportation panel’s subcommittee on aviation that 80% of the company’s commercial planes are sold overseas. The company has 168,000 workers and 1.5 million jobs at suppliers.

But the Export-Import Bank, which guarantees financing for foreign airlines and countries that couldn’t otherwise buy Boeing planes, is under attack by House leaders who contend that manufacturers could find other ways to sell their products.

“If Ex-Im goes away, it is predictable Europe and Airbus will use export credit pricing to provide aerospace industries there an advantage over ours,” Allen said.

Click here to read full article.

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July 2014

Twenty years ago when I was at ASU getting my MBA, my keen insight told me this Internet thing would probably not be any big deal.  When I saddled up my faithful steed, Hezekiah, to head home after class, I wondered how all our modern marvels could ever be supplanted by some digital world.  Apparently neither Thomas Friedman nor Faith Popcorn has anything to fear from me as a futurist or trend spotter, so thank goodness for forward thinking people on our staff and welcome to the new Arizona Manufacturing Council (AMC) website.

The launch of the website is timely given the current positive developments in manufacturing.  A recently released study from the U.S. Department of Commerce entitled “Manufacturing Since the Great Recession” details how manufacturing output has grown 38 percent in the last 5 years and the actual number of manufacturing companies has grown for the first time since 1999. In Arizona we have experienced some of this growth, but over half of the increase in jobs has been enjoyed by just five states: Michigan, Ohio, Indiana, Wisconsin, and Texas. This is understandable as the bulk of the surge has been in the transportation and oil & gas industries.

But we also have our own rich manufacturing history in Arizona, so how do we leverage our strengths and bring additional growth and quality jobs to Arizona? That is where the AMC comes in, and it’s why we need your participation.

We at the AMC strive to be the leaders in legislation and forward thinking ideas that move the state forward as it relates to building the manufacturing industry and job expansion. The state is fortunate to have the leadership of Gov. Jan Brewer, who has worked with the Legislature, the AMC and a raft of other groups to craft legislation to protect and grow the manufacturing sector. The recent alleviation of sales tax on electricity and natural gas consumption for manufactures is an excellent example of the proactive stance our state is taking to bring high wage jobs to our citizens.

But keeping that forward momentum requires insight and input from the manufacturing community and, given my lazy eye and glaucoma, no one needs me to play the visionary. We need participation from all levels – small, medium and large manufacturers.  Arizona must take advantage of the current cycle of prosperity in manufacturing and lay the foundation for future growth and stability.

The AMC is fully prepared to take that lead but we need your help. To quote the over quoted Hillel the Elder “If not now, when? If not you, who?”  So please join us as we embark on this new and exciting stage in the evolution of the Arizona Manufacturers Council.

Steve Macias is the president of Pivot Manufacturing and the chairman of the Arizona Manufacturers Council

The Arizona Manufacturers Council within the Arizona Chamber is the state affiliate of the National Association of Manufacturers (NAM). For more on manufacturing and NAM, visit www.nam.org.

The Arizona Chamber of Commerce and Industry is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans. For more information visit www.azchamber.com.

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