WIRE-Net: WHERE MANUFACTURING MATTERS.

Obama: Manufacturing Matters

2012-01-26T18:15:00.001-05:00

This is the White House recap of President Obama's Manufacturing Agenda. In over 20 years of working in and with manufacturers, I can't recall this critical sector getting more airtime in a State of the Union address.

Everything You Need to Know About the President's Blueprint for Manufacturing
http://www.whitehouse.gov/blog/2012/01/25/everything-you-need-know-about-presidents-blueprint-manufacturing

Sent from my iPad (not made in America) :(

Some Boards from the Past

2012-01-10T08:31:00.012-05:00

I was going through some of my files and thought I would post some of the boards created in various facilitated events. Some come from open discussions others from more formal methods like World Cafe events.

Supply Chain Under Fire

2011-07-06T10:02:00.000-05:00

Supply Chain Under Fire

By Ed Weston

While the competitiveness of windpower in the US continues to improve, its gains are being achieved at a painful cost to some US manufacturers—market share. That’s the feedback from companies that are struggling with plunging price points for components and the growing trend toward imported alternatives.

Working around the clock, six days a week in 2007, Kocsis Brothers of Alsip, Illinois, was encouraged to add new capacity by its major wind turbine customers. A full-service machine shop, the company responded with nearly $6 million in new equipment, including one machine capable of handling the largest parts with state-of-the-art CNC. According to General Manager Wayne Batkiewicz, “We made this investment based on firm orders, but before the new unit was installed, customers started cancelling orders and taking them to Asia.” Volume at the shop has fallen from a high of 16 hubs/week in 2008 to a total of two in 2011.

“Wind turbine component suppliers are feeling tremendous pricing pressure from wind turbine OEMs to reduce costs so they can compete in the global marketplace,” explains Bill Andreski, VP - Wind for Horsburgh & Scott, an Ohio supplier of gears that has also made significant investments in the most modern production machinery. “The gear component supply chain is not immune to this situation,” he says. “Offshore suppliers are being used to deliver components into the North American market, making it more difficult for us to supply parts.”

Abrasive Blasting and Coating Services, a South Carolina-based provider of coating services, recently opened a second plant in Elkhart, Indiana to handle the expected growth in wind turbine business. Volumes have fallen off this year, and President Jim Odom reports that ABC is doing fewer original equipment pieces. “It seems that some customers would rather pay for coating repairs on imported parts than have it done right the first time.”

What’s behind this shift? Start with steep price erosion for wind turbines caused by global oversupply and continue with the impact of rock bottom US natural gas prices on new power purchasing agreements for developers. What follows is a need to compensate with lower costs on the component end. That’s especially frustrating for supply chain managers for wind turbine OEMs with domestic content goals who’ve worked hard to develop a strong local supply chain—and realize that their partners are under fire like never before.

“We’re doing everything we can to collaborate with our suppliers to improve their competitiveness,” states David Buley of Northern Power, a growing US wind turbine OEM with production facilities in Vermont, California, and Michigan. “By adopting best practices that will reduce their actual costs of manufacture, our suppliers become more globally competitive on a full landed cost basis, and that helps us become more cost efficient.”

And that’s the reason, according to GLWN Director Ed Weston, that Buley--along with supply chain managers from six other wind turbine OEMs and leaders from across the industry---will be speaking out at a national conference in Cleveland on July 13-14. “Making It Here: Building Our Next Generation Supply Chain is for supply chain companies that have invested in wind are now looking for answers on key issues that are choking their growth and threatening their future,” he added.

The conference, sponsored by GLWN, will feature town-hall style forums on six key issues threatening supply chain growth, says Weston. Session topics include Achieving Global Competitiveness, Leveling the International Playing Field, Lowering Costs through New Design, Managing Foreign Specifications, Joining in Wind Farm Construction, and Installing Offshore Wind in North America.

Participating as a panelist will be AWEA’s Rob Gramlich, who acknowledges the importance of growing US wind turbine manufacturing and supply chains. “The enemy of job growth continues to be on-again, off-again tax credits,” he explained, “so we need to work on options and strategies for more predictable energy policy as well as manufacturing-specific policies.”

“Purchasing decisions are now being driven by price more than ever before, “says Sam DiRenzo of bearing manufacturer SKF USA. “For our US operations, cost-effective engineered solutions are one answer, and adopting ways to improve the efficiency of our customers’ supply chain is another. We’re attending Making It Here to see what else we can do to support the growth of domestic manufacturing.”

More information is available at www.MakingItHere.org.

3 Lessons from New Markets

2011-05-11T10:06:00.001-05:00

In conjunction with MAGNET, WIRE-Net has been conducting meetings to acquaint local manufacturing suppliers with OEM and Top Tier companies. The New Markets Initiative or NMI is a process to bring companies, who had found success in previously traditional markets and supply chains, like automotive, into new markets based not on product, but the capabilities of the company – that is, process capabilities which will allow them to move to new markets with little or no redesign of a company’s business model, machinery or staff. The biggest change we find is in attitude. The premise is, if you have CNC capabilities and are serving one market, you stand a chance, with little redesign, to supply that capability to another market. In the course of developing the initiative we came across concepts and principles to consider while on the road to moving into new markets:

Low Volume High Mix in New and Emerging Markets – the newer and emerging markets, like Medical, Energy and Aerospace, are seeking high quality parts in small quantities.

There are Macro Supply Chains and Micro Supply Chains – one of our biggest findings is that OEMS own the macro supply chains and have a very rigorous process for suppliers often requiring ISO certification, but top tier companies own a micro supply chain and often can bring a smaller companies product in under their certification. This opens a large area for smaller companies to play.

Quality is Everything - If you can supply in a micro supply chain, you still need to show quality. This does not have to be ISO, but some form of QMS needs to be in place to work with a top tier company. While to some this may seem daunting, much of what a top tier is looking for already exists in most companies and it is merely a process of documentation in order to qualify.

While new market entry is a great opportunity, only healthy companies should consider making the journey – it is not a stop gap measure for companies on the brink. What lessons have you learned from new markets experience.

A thoughtful analysis of the Chinese currency conundrum.

2010-09-03T11:36:00.001-05:00

The Times gets it wrong: Ending currency manipulation would reduce U.S. trade deficits and create jobs

An op-ed published in The New York Times last week (August 23) claimed that revaluation of the Chinese yuan would "make barely a dent in America's trade deficit." This ludicrous assertion flies in the face of basic economic theory and our own economic history. The U.S. trade deficit with China displaced 2.4 million U.S. jobs between 2001 and 2008 alone. Treasury Secretary Geithner should identify China as a currency manipulator, and Congress should pass legislation that would authorize the president to impose substantial tariffs on Chinese goods if they fail to substantially revalue the yuan by the end of 2010.

Click here for the whole article.

Did Obama's Tire Tariffs Work?

2010-09-01T14:24:00.001-05:00

Nearly one year ago, President Obama invoked a trade law known as “421” for the first and only time in the decade the law has been in effect and imposed tariffs on some automobile tire imports from China, which have been surging into the United States from 2004 to 2008.

See this post at the MANUFACTURE THIS Blog of the Alliance for American Manufacturing for the full story.

Advanced Continuous Improvement Tour at Zircoa

2010-08-19T15:29:00.000-05:00

On August 18, 2010 the WIRE-Net Advanced Continuous Improvement group toured the Zircoa Plant in Solon, OH. The group is made up of Manufacturers from the Northeast Ohio area on a Continuous/ Lean journey within their individual companies.

Zircoa has been Utilizing Lean principles for the past year and has made some significant progress in implementation. With the help of a local consultant Zircoa has:

Improved flow
Reduced mistakes
Reduced WIP
Cut Lead time

As a result of the efforts, they have seen:

Increase in Sales
Inventory turns up (inventory down)
Improved EBIT
Shorter lead times

Our tour focused on the Visual Factory aspect of Lean. As we walked the floor we were introduced to personnel who described the use and value of visual displays of information on the plant floor (red is bad/green is good!). We also witnessed a staff meeting being conducted on the floor as part of their continuous communication within the organization.

Recommended Reading

Zircoa has supported their personnel with many opportunities to advance their Lean Learning. Among these opportunities were these suggested books:

Everything I Know About Lean I Learned in First Grade (Martichenko)
It’s Not Magic (Klein and Zawacki)
Lean Production Simplified (Dennis)
Creating a Lean Culture (Mann)
Managing to Learn (Shook)
Quick Changeover Opportunities: SMED Systems (Productivity Press)
Made to Order Lean (Lane)

If you are interested in becoming part of Advanced Continuous group, please call Mark Pinto at WIRE-Net (216)920-1960 or e mail at mpinto@wire-net.org.

WHAMMO RE-SHORES

2010-08-19T15:28:00.001-05:00

From Todays Machining:

Wham-O’s products are not exotic, but they take up a lot of container space per $ value. With container costs from China up to $4500 from as low as $3000 at the bottom of the recession, Wham-O has rejected offshoring. Their products are not labor-intensive to produce, primarily using injection molding. They are cheap, light and bulky. A container of Frisbees may hold only $5000 worth of product, so a 50 percent increase in container costs is a substantial piece of the overall cost, according to Kyle Aguilar, President of Wham-O.

See: Todays Machining World: The Magazine for the Precision Parts Industry www.todaysmachiningworld.com

Building a New Model for Career Tech Education

2010-07-01T15:44:00.001-05:00

The New Max Hayes - Creating a National Model for Career Tech Learning

Thank You!
Investors and Partners

WIRE-Net thanks the members of the Technical Team who have given over 1,700 hours to this project.
WIRE-Net and our partners thank our investors in the New Max Hayes project:

The Cleveland Foundation
The Harold C. Schott Foundation
The George Gund Foundation
The Fred Lennon Charitable Trust
The Cliffs Foundation
The Lincoln Electric Foundation
The Swagelok Foundation
Eaton Corporation
The Greater Cleveland Partnership

Max Hayes High School is the only school in the Cleveland public school system that teaches the technical skills of manufacturing technology, construction, and automotive technology and auto-body. Since 1992, WIRE-Net has been an active partner at the Max S. Hayes Career and Technical High School, linking industry experts and experiences to students and teachers.
Several years ago, with the strong support of WIRE-Net and local business and industry partners, including local metalworking associations and the Greater Cleveland Partnership, the TEAM Academy was formed at Max Hayes as a pilot "school within a school" to model the academy approach to education. This introduced closer integration of academic and technical education, strengthened the influence of industry at the school, and also led to the addition of Oracle programming to the technical instruction available. All along, WIRE-Net's role has been to leverage our relationships with hundreds of Cleveland firms to help students get prepared for real work and real rewards.
A year ago our relationship entered a dramatically different sphere, when WIRE-Net joined forces with educators, manufacturing and business leaders, foundations, and community partners to create a new vision for high school learning at Max Hayes. This dynamic leadership group is helping the Cleveland Metropolitan School District (CMSD) develop an innovative national model for the new Max Hayes Career Tech High School—a community-based career learning center that will develop work-ready skills and talent to enable area companies to successfully meet global competition. The New Max Hayes, scheduled to open in the fall of 2013 at a site near West 65th Street and Clark Avenue, will be a new benchmark in the career-tech field, one that will help transform our approach to 21st century learning in the age of technology.
WIRE-Net is working with a team of world-class educational design consultants from Big Picture Learning and Concordia LLC to create a vision for the new Max Hayes. We have seized this opportunity to propose a new learning model that includes:

Rigorous and relevant academic learning that is integrated with top notch technology programs that engage and excite young learners, the next generation of manufacturing leaders, inventors, and entrepreneurs
Valuable, relevant work experiences that build pathways to post-secondary learning and successful careers
Strong and enduring partnerships with community, business and higher education that help teachers share their knowledge of careers such as design, construction and construction management, transportation including diesel and hybrid technologies, urban transportation systems and fleet management, manufacturing technology (welding, machining, electronics), and information technology. These partnerships will expose students and teachers to new and emerging markets in the biomedical, advanced energy, and environmental fields and will give students a variety of adult relationships to advance their learning and to build their practical experience in the community.
Cross cutting themes such as information technology, the arts, and "green" or environmental sustainability will permeate all programs.
Student business and entrepreneurial ventures.

The New Max Hayes Award, produced by the Cleveland Steel Tool Company, celebrates the Technical Team's spirit of Innovation and Collaboration.

The project is led by a Technical Team of volunteers and CMSD staff who have collectively contributed over 1,700 hours of time to this project. Site visits to see the best in career tech in greater Cleveland, Toledo, Dayton, Providence, Chicago, and Oklahoma City helped identify key success factors that we recommend be included in the new school. Additionally, our Team will recommend that CMSD begin immediately the process of transforming Max Hayes, starting in the fall of 2010 and culminating when the new school opens in 2013.
If you and your company or organization want to be a part of a unique, dramatic, and exciting project that will create a national showcase of 21st century learning, please contact John Colm at 216.588.1440 ext. 105.

Celebrating Manufacturing Innovation

2010-07-01T15:42:00.001-05:00

“General networking opportunities and the chance to see how other businesses are fairing was a plus.”

“I enjoyed the ability to network with new and old faces and companies.”

“I really liked the mix of the companies and the amount so I had a real chance to stop at every booth and spend a little time.”

—Good things people had to say about WIRE-Net's 2010 Innovation Celebration

On June 23rd, Northeast Ohio’s manufacturing community celebrated the spirit that has kept industry strong in Ohio at WIRE-Net’s 2010 Manufacturing Innovation Celebration. Sponsors, exhibitors, and attendees had the chance to connect with others in the community to sell or buy locally: parts, products, or services.

This special event, designed to support WIRE-Net’s effort to develop new business, new markets, new products, and access new capital, brought together a cross-section of the business community. A number of high-profile business leaders signed on to support the event, including, Dollar Bank, MAGNET, Simplified Logistics, LLC., Charter One Bank, Dairymens, Ohio Displays, Inc., ArcelorMittal, Catalyst Consulting Group, Inc., COSE, Fredon Corporation, JRN Group, Inc., Kaiser Permanente, Midwest Box Company/Walford Industrial Park, Robin Industries Inc., and Talan Products, Inc.

WIRE-Net also used the gathering as a forum for its annual meeting. The WIRE-Net membership accepted the slates of at-large members and officers of WIRE-Net’s Board of Directors including:

Chairman – Thomas Schumann, General Manager, Kitzel & Sons, Inc.
Vice Chairman – Mark Dawson, President, Cleveland Steel Tool Company
Treasurer – Scott Bogard, Senior Associate, The Riverside Company
Secretary – Charles Mintz, retired President, Superior Tool Company

The New Max Hayes Award, produced by the Cleveland Steel Tool Company, celebrates the Technical Team's spirit of Innovation and Collaboration.

The membership also welcomed new Board member, Tim Rosengarten, the Director of the Fitting Services Group at Swagelok Company.

Since 1990, WIRE-Net has annually recognized manufacturing leaders who demonstrate their commitment to strengthen manufacturing in Northeast Ohio and support for WIRE-Net's mission to create healthy communities and fuel economic growth. This year, a special award was presented at the Innovation Celebration to the 30-member technical team who has dedicated over 1,700 hours to creating a vision for learning at the New Max Hayes.

The Wind is Free, Is Trade?

2008-07-16T13:11:00.000-05:00

CHINESES TARIFF AND TAX POLICY DRIVE GROWTH OF THEIR WIND INDUSTRY

A May 29, 2008 on-line article by ClimateChangeCorp.com surveys supply chain shortages around the globe as the wind turbine market continues to heat up. Aside from noting how the US “dithering” on establishing a predictable tax-policy (Congress’ failing so far to renew the Production Tax Credit, which expires at the end of 2008) to support the growth of the wind industry in the US, the article notes how China is actively growing this new, advanced manufacturing sector.

“Massive demand” in China for turbines is predicted to tighten global turbine supplies, but the Chinese are encouraging domestic investment and sourcing through a variety of tools that are apparently too good or too odious for US policy makers. These include increasing tariffs on turbines imported into the Chinese market this May 2008, while slashing import taxes on components.

The former will slow the importing of turbines, and the latter will encourage the development of a domestic turbine assembly industry. In addition, the Chinese require 70% domestic content in their installed turbines.

See this link for the original article:

http://www.climatechangecorp.com/content.asp?contentid=5344

-John Colm

Manufacturing: Debatable?

2008-04-11T19:28:00.001-05:00

Our friends at the Alliance for American Manufacturing have organized a unique election forum in Pennsylvania.

Clinton and Obama to Discuss Manufacturing Issues at Candidate Forum in Pittsburgh, PA

What: Presidential Candidate Forum on Manufacturing, sponsored by the Alliance for American Manufacturing (AAM) and its partners. Senators Obama and Clinton will unveil their proposals to address the challenges facing America’s manufacturers, including China’s dumping, subsidies, and currency manipulation. Sen. John McCain was invited, but is unable to attend.

Who: Senator Barack Obama, Senator Hillary Clinton

When: Monday, April 14, 2008

Why: Pennsylvania has lost more than 207,000 manufacturing jobs since 2000, with more than 78,000 jobs moving to China alone since 2001. The event will focus on strengthening American manufacturing and addressing China’s unfair trade practices.

WIRE-Net's Great Lakes Wind Network Makes Progress

2008-02-20T12:24:00.000-05:00

The American Wind Energy Association (AWEA) recently noted the progress WIRE-Net’s latest brainchild is making to strengthen Ohio’s wind turbine supply chain. See this link for information on subscribing to the electronic edition of Wind Energy Weekly: http://www.awea.org/wew/

Ohio Group Seeks Out Wind Industry to Meet Value-Chain Needs
Ohio just put up a big Welcome banner for the wind industry value chain.

A recent conference organized by Ohio economic development organization WIRE-Net sought to connect suppliers in the state with the wind industry, with the ultimate goal of getting the state to provide a significant number of links to wind’s tight supply chain.

About 50 Ohio companies attended the Great Lakes Wind Network Supply Chain Forum to learn more about the wind power industry and network with featured guest Clipper Windpower. The event was so successful that Ed Weston, WIRE-Net’s wind energy director, intends to repeat the event on a quarterly basis, with a different wind industry company featured at each one. “I was delighted with the turnout,” Weston told Wind Energy Weekly. “It exceeded our expectations.”

Indeed, companies attending the event, to which Weston had to “turn people away,” could potentially make up a significant chunk of the value chain. The list of participants, among others, included eight foundries, seven machine shops, five forges, five fabrication shops, five electrical and electronics companies, four gear producers, four fasteners, and four materials suppliers. In addition to learning more about the wind industry through the presentation of Todd Windeknecht, Clipper’s strategic commodity leader, attendees had the chance to network and meet one-on-one with Clipper.

“If we can find suppliers we can partner with, we'll do it,” Windeknecht told the group.

In case Windeknecht and the rest of the gathering harbored any uncertainty about the state’s interest in attracting the industry, attendees also had the chance to hear from Chad Smith of the Ohio Department of Development and Michael Jung from the office of Governor Ted Strickland (D), who spoke on Ohio’s commitment to wind.

The success of the day, noted Weston, “speaks to the level of interest and density of wind-capable manufacturers” in the state. The next event, he said, will take place in the first quarter of 2008.

Great Lakes Mfg Council Comes to Cleveland, July 2008

2008-02-19T17:06:00.000-05:00

From The Great Lakes Manufacturing Council:

The Great Lakes Manufacturing Council announced today that its third annual Great Lakes Manufacturing Forum will be held July 9-11at the Cleveland Key Center Marriott, in Cleveland, Ohio,

The Great Lakes Manufacturing Forum brings together manufacturing, business, academic and government leaders focused on promoting, enhancing and preserving manufacturing in the Great Lakes Region. Regional leaders from the eight Great Lakes States as well as the Canadian Provinces of Ontario and Quebec will gather to discuss the image of the Great Lakes region, innovation in manufacturing, the workforce and skills needed for manufacturing today and in the future as well as the borders and logistics requirements needed to succeed in today’s global economy. The forum will be opened by Cleveland Mayor Frank Jackson

We are pleased the Great Lakes Manufacturing Council has chosen Ohio as the site of this years forum, said Lt. Governor Lee Fisher, who also serves as Director of the Ohio Department of Development. The Great Lakes region has been a cornerstone of manufacturing and innovation for more than a century, providing jobs, new technologies, and robust businesses. This forum is a collaborative effort to help our region maintain that strength and make Great Lakes manufacturing the benchmark of the world.

Speakers include notables such as Jayson Myers of the Canadian Manufacturers and Exporters, John Austin of the Brookings Institution, Ned Hill of Cleveland State University, and William Testa of the Federal Reserve Bank of Chicago.

“Working collaboratively is the key to ensure we all thrive in the current global economy,” said Ed Wolking, president of the Great Lakes Manufacturing Council and executive vice president of the Detroit Regional Chamber. “It is our responsibility as business and governmental leaders to enhance the image of the Great Lakes region and to celebrate and promote our manufacturing strength to guarantee the region’s future prosperity.”

Some of the Partners in this event include:

· Society of Manufacturing Engineers

· Chambers of Commerce of Chicago, Detroit and Toledo

· Province of Ontario

· Pittsburgh Technology Council

· Canadian Manufacturers and Exporters

· Conexus Indiana

· Purdue University

· And many more.

About the Great Lakes Manufacturing Council

The Great Lakes Manufacturing Council is a long-term relationship and collaboration of regional leaders from the eight Great Lakes States and the Canadian Provinces of Ontario and Quebec committed to the growth of manufacturing and the Great Lakes region. Its goal is to support a more competitive manufacturing base by promoting greater intra-regional communication and collaboration, best practices sharing and application and positive imagery that will attract, retain and grow business.

For additional information about the event go to greatlakesmanufacturing.org or call 866.615.2182.

US Metro Areas Must Leverage Mfg to Compete Globally

2008-02-01T10:07:00.000-05:00

The American Assembly hosted a forum last November 2007 that focused on the challenges and opportunities facing US Metro areas, like Cleveland. Paul Brophy has just summarized the findings of this forum, to which I was honored to be invited. See this link for Paul’s original comments on his blog at the Drum Major Institute.

I’ll note that there was good discussion about the parallels between urban manufacturing, and anchor institutions, as economic assets on which cities can and should build. In Cleveland, for example, there are about 1000 manufacturing firms with 30,000 employees in the City. WIRE-Net’s approach has been to work to support the leaders and managers of these firms, and then to engage them actively in a metro-redevelopment strategy that addresses manufacturing improvement and innovation, workforce excellence, industrial redevelopment, and policy advocacy.

--John Colm, President, WIRE-Net

US Metro Areas Must Compete Globally, Not with Each Other

The mainstream macro-economists tell us that globalization is good for the world and good for the United States. Maybe, maybe not. But two things seem certain: Globalization is here to stay, and it produces big disruptions in places that have lost manufacturing jobs to China and other low-wage countries.

In the United States, those places are our older industrial metro areas, whose economic health is key to America's competitiveness. The largest 100 metro areas contain 65% of our population and produce three quarters of our gross domestic product. Some are thriving, but others have yet to find their footing in the global economy. Over 65 metro areas from Baltimore to Beaumont, New Orleans to Newark (see the full list here), are currently in a downward spiral of declining jobs, population, tax revenues and other vital signs.

How can mayors and county executives in these places cope?

In November, the American Assembly convened a meeting chaired by Governor Ed Rendell of Pennsylvania and Ken Lewis, Chairman and CEO of Bank of America, and leading experts from around the nation and the UK to discuss how older metro areas can compete.

They wrote up their recommendations in a report entitled Retooling for Growth. It ought to be required reading for every state and city official, as well as the presidential candidates and their issues and speechwriting staffs. It finds there is plenty we can do to reverse the decline of these areas and strengthen our economy if we:

* Think and act metro. The economic unit that needs the economic development strategy is the metropolitan area—not the central city. Although it is sometimes true that central cities are competing with their suburbs, the real competition is between metro areas and other metropolitan areas around the world. Older industrial areas that will compete well are those that see themselves as an economic unit and act that way.

* Build from assets. Older metro areas have significant assets to work from, including colleges, universities, and hospitals. In this new economy, these places are poised to capitalize on these anchor institutions to build a knowledge-based economy, which is where the cutting edge is.

* Focus on human capital. Making these economies thrive again requires smart, networked people. Working to attract, retain, and network highly skilled people—some of whom are able to start new enterprises -- is key. This means that quality of life issues—safe neighborhoods, good schools, cultural and sports amenities--are essential to building the human resources needed to compete.

* Grow entrepreneurs. Most job growth occurs by retaining and expanding existing businesses, not by luring new businesses to move in. These older industrial areas need to create an economy where entrepreneurship can thrive—in neighborhoods, and in the region—so that new jobs are grown, not imported.

* Develop a new governmental compact. The federal government and state governments need to invest in older industrial areas, but it is only right that they demand accountability and buy-in from the recipients. Leaders of these areas – whether government, business, civic, and/or community -- must take responsibility for achieving results (Good Jobs First has published a wealth of site-specific studies on how to generate more results from economic development subsidies).

Despite the challenges, older industrial areas can and will find their places in the global economy if they focus on these opportunities.

Metals Matter in NE Ohio and So Does Trade Policy

2007-11-29T12:03:00.000-05:00

I appreciated the Plain Dealer’s 11/29/07 article on a recent “Manufacturing Brief”, published by Cleveland State University’s Center for Economic Development (see this link). There was some good news in the Brief, which also raised some questions NE Ohio should consider as we look at the state of US based manufacturing.

First, our metals sector is alive and well. The sector is adding jobs, investment and economic output. It ships most of its products from the region, and through these exports, brings new money into NE Ohio. It is thus one of the most productive and valuable industry clusters in NE Ohio. The region should coalesce better around opportunities to maximize the wealth and job creation potential of this 100,000 job cluster that includes primary metal-making, metal forming, tool making, metal plating, local metals industry associations, our network of community college and high school career-technical training institutions and our university research facilities.

The Manufacturing Access to Growth and Innovation in Cuyahoga County and NE Ohio (MAGICC NEO) is a good first step at addressing the training and workforce development needs of the metals sector, which is targeting metals firms that hire machinists, welders and industrial maintenance workers. The machinery industry is closely related to metals, as most machines are built of metal. It too is expanding employment and output. Contact us at WIRE-Net if you are interested in learning more about MAGICC.

But why are so many other of our key manufacturing sectors lagging in both employment and output? One key factor is our antiquated trade policies. Not only does our trade bureacracy look the other way when our so-called “trading partners” break the rules of international trade – for example, by pegging their currency to an artificial value of the dollar and giving themselves a significant cost advantage for products made in their county, but it is confused between its two jobs of both promoting trade and enforcing trade laws. We seen China backsliding on protection of intellectual property too, not to mention a dangerous and cavalier attitude about product and workplace safety. Finding better ways to enforce fair trade rules, and updating our trade policy to the global economic realities are critical to NE Ohio’s future and to our manufacturing economy.

John Colm, President and Executive Director

WIRE-Net

Are Ohioans Leery of Trade?

2007-10-31T15:34:00.000-05:00

The Plain Dealer ran an editorial recently that bemoaned the positions on US Trade Policy taken by several Ohio elected officials. The editorial presumed that the policy we have in place now is in fact “free trade”. At WIRE-Net, we beg to differ. Our letter to the editor follows:

October 23, 2007

Cleveland Plain Dealer

To the Editor

While several of your conclusions in your October 21^st editorial regarding trade policy and protectionism were on the mark, much of your analysis was off-base.

US trade bureaucrats have done a poor job of enforcing existing trade laws; tougher enforcement is needed, as you noted. Our economic and trade policies could do more to encourage manufacturing innovation, and a retrained, more highly educated and skilled workforce. We also need smarter investment in regions of the country that disproportionately feel the brunt of a rapidly changing economy, like NE Ohio. All of these were part of the Bush Administration’s “Manufacturing In America” report from 2004, but precious little has been implemented.

You failed to recognize, as economist Alan Blinder noted last Spring on your editorial pages, that trade can have negative results for nations. 30% of the manufacturing job loss in the US can be traced to the huge and ever growing foreign trade deficit. Much is at stake, not just “propping up uncompetitive industries”. The US has lost more than 1 million manufacturing jobs, and several million other jobs in “downstream” industries like financial and consumer services due in large part to the trade policies of foreign governments, and our own inability to counter them. When foreign governments win a 40% cost subsidy due to their currency manipulation, US firms are not playing on a level playing field. When foreign governments use non-tariff barriers at the docks to prevent US products from entering their markets, then we do not have “free trade”. This is nothing short of foul trade.

However, Ohioans are not “leery of trade”, as you put it. What we are leery of is a trade bureacracy that fails to enforce the rules, fails to hold foreign governments accountable, and that has led to the loss of good paying US jobs in industries that don’t need propping up, just a level playing field. Our trade policy must create jobs in the US, encourage innovation and investment, and protect our national security. Our policy makers have failed in each case. What Ohioan and US taxpayers want is a “third way” in trade policy, one between protectionism and so called “free trade”, one that builds on US strengths and assets, but also is not afraid to confront flagrant violators of international trade laws.

Call to Energize Manufacturing Career Awareness

2007-06-05T08:19:00.000-05:00

This story from the Associated Press ran in about 60 papers around the country in late May.

South Bend Tribune

Article published May 21, 2007

'Not like the old days'
New high-tech manufacturing struggles to find workers.

THOMAS J. SHEERAN
Associated Press Writer

CLEVELAND -- Michael Starr was laid off in mid-career from his factory job and found himself back in the classroom to upgrade his skills -- for a new high-tech manufacturing environment struggling to find workers. Working in industry today "is not like the old days: get a hammer and fix it," the 45-year-old said.

Starr was laid off Jan. 15 from his sheet-metal working job in suburban Medina. He has enrolled in a Lorain County Community College program to take courses in computers, math, machining, industrial blueprint reading, advanced computerized numerical controlled milling and job-search and study skills.

When he showed up in class, "I was terrified, (like) training an old dog new tricks," he said.

The nation has shed 5 million manufacturing jobs in three decades, but higher-skill factory jobs like Starr's goal increasingly go unfilled as employers deal with applicants with poor reading and math abilities and a bad attitude about blue-collar work.The National Association of Manufacturers says the skill shortages have hurt production and the ability to meet customer demands.

And the pattern is likely to persist as the nation sheds old-style manufacturing to compete in a global economy.

The Federal Reserve Bank of New York, in a report last year, predicted a continuing trend of lower-skilled jobs lost to foreign competition and automation and giving way to a smaller number of higher-skilled manufacturing jobs.

The picture is similar across much of the nation's industrial base, with the Bureau of Labor Statistics reporting a consistent increase over three years in the rate of vacant manufacturing jobs, going from the 1.5 percent range to about 2.5 percent, or one in 40 jobs vacant.

The New York Fed report said the manufacturing share of the nation's work force has dipped from 20 percent in 1979 to 11 percent, with new manufacturing openings increasingly requiring fewer workers but higher skills, including math, communications, computer use and team work.The problem likely will worsen with baby boomer retirements. The Manufacturing Advocacy and Growth Network (MAGNET) organization in Cleveland estimated 800,000 manufacturing jobs in the Midwest will be vacated by retirements in the next six years. Laid-off workers often lack the skills needed in newer, high-tech jobs.

Hiring problems include job seekers with poor education -- sometimes high school graduates who can't read at an eighth-grade level -- an indifference to work issues, such as showing up every day, and the feeling that manufacturing is dirty work without a future.

There are indications that high-tech investments have created manufacturing jobs.

The nation's manufacturing job sector grew by 4.5 percent, on average, in 2006, while the U.S. economy expanded 3.1 percent, the National Association of Manufacturers said. U.S. manufacturing was helped by increased exports and more investment.

In a 2005 report, the association said skill shortages "are extremely broad and deep" and had affected 80 percent of the more than 800 companies it surveyed. The findings remain consistent for 2007, the group said.Adam Fekete, 17, hopes an innovative high school program in Cleveland will give him the 21st century skills needed to become a third-generation blue-collar employee working in manufacturing and computers.

Fekete, son of a sugar refinery worker and grandson of an autoworker, is one of 118 students enrolled in a manufacturing program at Max S. Hayes High School overlooking Lake Erie in a gritty Cleveland neighborhood where small, high-tech plants sit alongside locked factories.

The program has a rigorous curriculum, including calculus, chemistry, physics, robotics competitions and rotations in computer-aided design and drafting, computer numerical control machining, robotics and engineering welding.

The school encourages good work habits by letting younger students pair up with more studious older students, like those who watched Fekete work in an area that looks like a shop floor.

A partner in the school program, the industry-supported WIRE-Net organization, tries to ease the transition for less-skilled workers to land a good-paying manufacturing job.The nonprofit organization offers vocational training with a strong dose of life and job skills, like acting responsibly on the plant floor -- meaning you won't have a supervisor standing over you all the time like your grandfather may have. And you won't be assigned to run the same machine for 40 years.

Newcomers must be ready to keep improving their skills and know how to do more than one job, according to John P. Colm, president and executive director of WIRE-Net.

"There's a future but, again, you have to be smart. You can't sit on your high school diploma," Colm said. "Manufacturing is far from dead. It's changing. Every part of our economy is changing."

Manufacturing Careers Showcase & Shoreway Classic Car Show Attract Thousands

2007-06-05T08:16:00.000-05:00

From the Cleveland Plain Dealer:

Good Deeds Car show benefits trade education

Tuesday, May 22, 2007

It's always nice to see manufacturers, school officials, government and auto enthusiasts come together for a worthy cause. That's exactly what happened recently at the Max S. Hayes Career and Technical High School's Career Opportunities Showcase.

"Basically, this was not about cars, it was designed to engage students from the Cleveland City Schools who are in grades 7 through 10 to get them interested in technical and trade education," says David Mallie, president of D.A. Motorsports. "Max Hayes is the only trade school in the Cleveland system and it's only at about half capacity. So we put together an event where we invited students in those grades to come to Max Hayes with their parents to learn about technical and trade education."

Certainly, trade education and touring Max S. Hayes' facilities in and of itself would pull in some people, but even Mallie acknowledges that more was needed to pull in the crowd.

"We realized we needed something with a little more excitement, so we put together the Cleveland Shoreway Classic," Mallie says.

The area from West 44th through West 49th was blocked off and RTA diverted on Saturday, May 12 from 11 a.m to 6 p.m. The show included race cars, specialty vehicles, classic cruise cars and bikes of all shapes and varieties. More than 150 trophies were given out including two for Best of Show in car and bike categories.

"We also had Larry Nance who had his race car on hand, and was there signing autographs," says Mallie. "When Larry found out this event was going on at Max Hayes, he was particularly interested because he went to high school for automotive mechanics and then went to Clemson for industrial welding. He took trade education throughout his scholastic career because he thought he was going to be a mechanic."

After being a standout with the Cleveland Cavaliers, Nance went on to a career in automotive racing. He now owns Larry Nance Racing.

"Mayor Frank Jackson was also there for about 45 minutes as was Tracy Martin of the Cleveland City Schools," Mallie adds.

Best of all, the event exposed Cleveland City School students to the many career opportunities available in a wide variety of industrial trades - the same trades that are the backbone of our local economy.

"In addition to the show, students saw the many career opportunities in building, construction, transportation, welding and machining trades - which were all among the stops on their tour," says Mallie. "After the tour was over, students received a packet of information and then went to a manufacturers' showcase where they were shown various products made by local companies. Here they could see what they might be making if they chose a specific career path such as machining. They also found out what company they might be working for and what they may be making."

The event was a resounding success.

"We far exceeded our goal of the open house, which was to bring in some 250 new freshman for the 2008 class," Mallie says. "Between the time of putting on the event and right now, we have more than 275 students pre-registered for fall classes - and that number is still growing."

Mallie stresses that D.A. Motorsports simply produced the show.

"A lot of credit has to be given to the Westside Industrial Retention and Expansion Network (WIRE-Net), the organization responsible for underwriting the event," he says. "But we also had a large number of other partners who really stepped up to the plate."

While proceeds from the entrance fee for the auto show helped to support the event, many organizations went that extra mile to ensure the event's success, adds Mallie.

Special thanks go out to: D.A. Motorsports' Jim Fagan who went above and beyond as director of operations for the event; Max S. Hayes Principal David Volosin; T.E.A.M. Academy's David Mikita; Cleveland Municipal School District's Tracy Martin; Mayor Frank Jackson; Councilman Matt Zone; Larry Nance of Cavaliers fame and Larry Nance Racing; CORNWELL TOOLS; Advance Auto Parts; Steve Legerski of the Grand Prix of Cleveland; Mr. Gasket; Time Bandit Racing; Jergens; Talan Products; Criterion Tool; The Great Lakes Towing Company; Midwest Box; National City Bank; The Cruisin' Times Magazine; Cleveland Public Power; Dominion; Alcoa; Dairymens and Summers Rubber, among others without whose time and support the event wouldn't have been possible.

Ohio Needs a New Approach to Trade Policy

2007-06-04T14:20:00.000-05:00

by Gordon Barr, President, NewKor, Inc. and Chairman, NE Ohio Campaign for American Manufacturing.

The Plain Dealer May 24 editorial (“Clearing the way for trade”) regarding the recently foreign trade deal between Congress and the Bush Administration, concluded that the deal “appears to make sense for both parties and for the American people”. However, appearances aren’t always what they seem.

This plan will do no more to create US jobs than did NAFTA. The US is not enforcing existing regulations, so how will we enforce abuses in thousands of new Chinese and east European factories? And contrary to what appearend to make sense then, China’s entry into the World Trade Organization has netted the US no additional jobs, instead displacing production and nearly 1.8 million US jobs since 2001.

Officials like Senator Sherrod Brown, Congresspersons Betty Sutton, Zack Space and over 25 others were elected because they see a fundamental flaw at the core of US trade policy. Look no further than the all-but-hollow-shell of Hoover in Canton and you can see it is far from apparent how Ohio voters will find any sense in this deal that learns so little from past experience.

Americans want two things from our foreign trade policy.

First, Americans want a trade policy that creates jobs. Foreign protectionism creates competitive advantage that has put US manufacturing companies and workers on the endangered species list. If China had been effectively pressured to stop manipulating their currency, Hoover vacuum cleaners and other US products would have a cost advantage of between 25-40% working for us instead of against us. This is the hidden “currency tax” on US made products.

Second, Americans want a level playing field. In our current system, everything from intellectual property, to the “unofficial” red tape that stalls US imports at the dock, and currency manipulation are all deployed to protect foreign industries, jobs, and markets and keep US made goods and services out. Foreign protectionism in China, Korea, Japan and elsewhere is rampant and it is costing Ohio jobs, while our markets are flung open to the world.

Here are two immediate actions Congress should take now to get our Trade Policy on-track:

1. Pass the Hunter-Ryan Fair Currency Act, giving us the tools needed to hold accountable non-market economies, like China, that undermine the competitiveness of US made products through currency manipulation;

2. End Fast Track trade authority. The Congress should end the President’s Fast Track Trade Authority. Given Washington’s penchant for wrongheaded foreign trade deals, a “time out” on further trade agreements makes sense until we can build a new approach to US trade policy for the 21^st century.

A trade policy based on fairness, combined with a commitment to growing our own manufacturing base (as the Chinese, Germans, Koreans and every other nation does), will allow us to demonstrate that the US economy is the greatest in the world, one that works to the benefit of communities, workers and investors across the nation.

Give us a level playing field. As American manufacturers, we can do the rest.

Manufacturing a Break in the Weather.First Quarter Thoughts on US Manufacturing

2007-02-27T16:44:00.000-05:00

I was recently interviewed by a writer for the Cleveland-based COSE Update for an edition they are doing on manufacturing.

The interview started off with the usual questions related to the view that “that manufacturing is dead”. We spent a few minutes correcting that misperception. Manufacturing still represents roughly 19% of northeast Ohio’s jobs and roughly one-third of its gross regional product. So much for being “dead”.

WIRE-Net staff have visited over 140 unique manufacturing companies (i.e., no repeat visits in that count) over since September 2006, nearly all located in the City of Cleveland. Roughly 23% of those visists were with companies that were expanding in one way or another: buying property they formerly rented, moving so they could expand, adding equipment, or hiring new staff. That amounts to 32 Cleveland based companies expanding in the manufacturing sector just in the last few months.

According to the US Federal Reserve, factory output declined slightly in the Sept-October 2006 period, due primarily to slumping automotive output. Put differently, output in everything but automotive improved.

Industry Week reported in December of 2006 that there were nearly 400 mass layoffs (of more than 50 employees) in manufacturing. However, 67% of the mass layoffs were in non-manufacturing sectors of the economy. Guess the “BOE” (balance of economy) is dead and dying!

Timken is adding almost 80,000 square feet to their Harrison Steel operation in Canton, in a deal they put together with Daido Steel. This will improve Timken’s position with the automotive transplants.

Companies need two things to survive and thrive, and neither is simple nor easy.

First, a solid strategic plan that is well executed; and
Second, a receptive political environment that allows the individual US based firm to compete fairly here and around the world.

To the seond point, the November election was a wake-up call for the Bush Administration and many Democrats, and led directly to the US Trade Rep filing a major “export subsidy” case against the Chinese government before the World Trade Organization . Look for that complaint to go nowhere fast.

Meanwhile, mainstream Democrats (like Charlie Rangel of NY, the influential head of the House Ways & Means Committee) are horsetrading around the President’s Fast Track Trade Authority, which expires this June. They are getting a receptive ear to include tougher rules on currency manipulation, labor and environmental protections in new trade agreements. This reminds me of similar deals that the Fair Trader Congresspersons made with former President Clinton during the NAFTA negotiations, and that resulted in nothing productive. Lets hope the “surge” of new Fair Trade reps elected to both the House and Senate in November stand firm and learn from the NAFTA failure. Some 39 of 42 newly elected Congressional reps signed a letter recently, stating that trade policy was a major issue in their election, and that the status quo as far as trade policy would not be acceptable.

The Yen, the Yuan and Self Interest

2006-11-15T12:18:00.000-05:00

I appreciated Dr. Peter Morici's recent comment about the Big-3's pleading to the President:

The Yen, Yuan and the Big Three Meeting with President Bush

The President [met] with leaders of the Big Three domestic automobile companies. Auto leaders say they want don't want special treatment but rather solutions that generally help U.S. businesses.

High on the list is the undervalued Japanese yen, and it provides a perfect example of an issue where the auto industry speaks out of two sides of its mouth and behaves unrealistically.

The dollar is extremely undervalued against the Chinese yuan, Japanese yen and several other Asian currencies, and this problem affects all domestic manufacturers competing with trans-Pacific imports.

Consistently, GM, Ford and Chrysler lobby for relief on the yen but are noticeably reticent on the Chinese yuan, because they are locating factories in China and enjoy the benefits of Chinese protectionism.

The Big Three can’t have it two ways, a stronger yen and a weaker yuan. Japan can not appreciably revalue its currency, nor can other Asian governments revalue their currencies, until China stops intervening in currency markets.

Each month, China buys with yuan nearly $20 billion in U.S. dollars and hard currencies. The yuan it prints for this purpose flow into the hands of consumers in the United States and Europe, and create a 25 percent subsidy on Chinese exports. Unless and until China stops this egregious violation of free trade principles, Japan and other Asian economies undervalue their currencies too.

A resolution to the Big Three’s problems with the Japanese yen is not possible until the Big Three embrace realism and recognize the damage imposed by Chinese currency manipulation.

Peter Morici is a professor at the University of Maryland School of Business and former Chief Economist at the U.S. International Trade Commission.

WIRE-Net works with NEO Mfr and Fuel Cell Experts on Major Advanced Energy Initiative

2006-11-10T15:12:00.000-05:00

Over the next decade, primary geothermic fuel cell use will play an increasing role in Ohio's use of advanced energy resources. WIRE-Net, on behalf of Independent Energy Partners, (IEP), ThermaFab Alloy, Inc., and Case School of Engineering with Wright Fuel Cell Group, NextTech Materials, Ltd., Battelle, and Composite Technology Development, Inc. has requested a Third Frontier Fiscal Year 2007 grant of $337,000 as part of $505,500 project for the research and development, leading to the commercialization of a Geothermic Fuel Cell (GFC). WIRE-Net became familiar with IEP's work through an introduction made by Richard Steubi, BP Fellow for Energy and Environmental Advancement at the Cleveland Foundation.

IEP, a Colorado-based company, owns the exclusive rights to a patented Geothermic Fuel Cell technology (GFC), that can dramatically lower the cost of oil and natural gas recovery from unconventional hydrocarbon resources. A primary application of the GFC is for on-site coal gasification for the production of syn-gas and/or for coal-to-liquids. In addition to creating over a hundred new industrial jobs in Ohio, over the next five years this application will facilitate the creation of additional new jobs around a new industry: in-ground coal gasification.

While a number of geothermic technologies have been used to produce oil from unconventional resources, many of them successful in confirming the scientific basis of geothermics, the economics have not supported a viable, long-term business model. The greatest barrier to commercial success facing these proven geothermic techniques is the cost of energy required to heat the ground. The GFC technology changes those economics.

Utilizing the research and testing capabilities of the School of Engineering and the Wright Fuel Cell Group at Case Western Reserve University, the design, engineering, and fabricating expertise in exotic alloys of ThermaFab Alloy, Inc. in Cleveland, and solid oxide fuel cells manufactured by NexTech Materials in Ohio, the collaboration will demonstrate that GFCs can be used as the heat source for an extraction method that will economically produce oil, natural gas, and green electricity from unconventional hydrocarbon resources.

This is the first phase of a project that will use solid oxide fuel cell (SOFC) technology to create a single, working GFC unit that will be tested under laboratory conditions in preparation for a second phase field demonstration project.

GFC units work by heating the ground, releasing gases, and hydrocarbon liquids that flow into neighboring collection wells. A portion of the gases are processed and returned to the fuel cell stack to fuel the reaction, with the remainder available for sale. Following an initial start-up phase of operation, the GFC process becomes a self-fueling system - producing oil, electricity, and surplus natural gases.

WIRE-Net's 2006-2008 strategic plan stressed building collaborations around new technologies that could help create new market opportunities for NE Ohio manufacturing companies. Ty Haines, WIRE-Net's Vice President of Manufacturing Services is serving as the Project Manager for this Third Frontier Grant.

This technology can position Ohio as a leader in advanced energy. The Ohio Department of Natural Resources cites that Ohio has approximately 11.5 billion tons of bituminous coal. Successful application of GFC units can improve the economics of coal extraction by generating saleable gas, hydrocarbon liquids, and electricity without the environmental impact of mining, and without the sulfur and other green house gas emissions from coal burning. Moreover, Ohio can create a whole new industry around GFC manufacturing, coal gasification plant design, building, processing, and global export.

WIRE-Net EXECUTIVE RECEIVES NATIONAL FELLOWSHIP

WIRE-Net's Rebecca Kusner, Vice President of Workforce Development, has been selected to join the 2006 class of Marano Fellows at the Sector Skills Academy. This group of Fellows is comprised of twenty-four leaders in the workforce development field who represent educational, community, and faith-based organizations, workforce investment boards, and economic development organizations located throughout the country, and in diverse industry sectors such as healthcare, hospitality, biotechnology, automotive, manufacturing, transportation, construction, and information technology.

The Sector Skills Academy was founded in 2005 as joint project of the Aspen Institutes Workforce Strategies Initiative, Public/Private Ventures, and the National Network of Sector Partners (NNSP), to provide emerging leaders with a unique opportunity for peer learning, skills development, and professional growth. Marano Fellows are named in honor of Cindy Marano, a leader in the field of sectoral workforce development and head of NNSP until her death in April 2005.

In addition to skills development, during a 12-month period Academy Fellows participate in a series of three 3-day workshops designed to promote peer-to-peer learning and establish new relationships with prominent Sector Skills Academy faculty and mentors who are recognized leaders in the field of sectoral employment development. Participants are expected to apply the lessons of the Academy in order to substantially enhance their work in their chosen sector.

A proponent of sector-based strategies, Ms. Kusner joined WIRE-Net in 2005 to lead the organization's new workforce development initiative. WIRE-Net Works includes School-to-Career, WorkSource, and Employment Plus -- programs and services that offer manufacturing company employers performance-based solutions that will meet current and future workforce needs.

WIRE-Net's 2006-2008 Strategic Plan outlines stresses out need to create relationships with key public sector workforce development leaders. Since 1989, WIRE-Net has been a recognized leader in developing effective workforce strategies for manufacturing. During that time over 350 NE Ohio companies have relied on WIRE-Net for programs and services that address their human resource needs. Our success has been due to our designing programs that adjust to current trends while not lowering standards to be competitive. WIRE-Net has begun to implement a sector-based workforce strategy in the new WIRE-Net Works initiative. We're pleased that Rebecca can bring her learning to this new program.

Major support for WIRE-Nets workforce programs is provided by The Abington Foundation, The Alcoa Foundation, Annie E. Casey Foundation, Charles Stewart Mott Foundation, The City of Cleveland, Deaconess Community Foundation, East Ohio Conference of the United Methodist Church, Eaton Corporation, Enterprise, Eva L. and Joseph M. Bruening Foundation, Fred A. Lennon Charitable Trust, The George Gund Foundation, George W. Codrington Charitable Foundation, The Hitachi Foundation, PMA Educational Fund, RPM Corporation, The Thomas H. White Foundation, and The U. S. Department of Labor. The Charles Stewart Mott Foundation provides major support for the Sector Skills Academy. To learn more about the new fellows and the Academy, please visit: www.sectorskillsacademy.org

Mayor Frank Jackson, Councilman Jay Westbrook, Cudell Improvement Inc, and WIRE-Net Celebrate Demolition of "The Trinity Building"

Last month marked the "creative destruction" of a major Cleveland eyesore, as Cleveland Mayor Frank Jackson, Cleveland City Councilman Jay Westbrook (Ward 18), and community, business, and resident stakeholders gathered to kick-off the demolition of the 170,000 sq. ft. former Trinity Building on Cleveland's west side.

The Detroit Avenue property was best known as the home to the Monarch Aluminum Company in the 1950s. Cudell Improvement, Inc. and WIRE-Net applauded the city's leadership in acquiring the property through tax foreclosure and for making this site the pilot project for the City's new Industrial-Commercial Land Bank Program. A $2.5M investment by the City in demolition and environmental clean up will convert the property into a new 5½ acre for light industrial uses.

In addition to Mayor Frank Jackson and Councilman Westbrook, family members of the former owners of Monarch, as well as, John Magill, Ohio Department of Development, Tracey Nichols, Cuyahoga County Department of Development, John Colm, WIRE-Net President & Executive Director, and Anita Brindza, Executive Director, Cudell Improvement, Inc participated in the event.

WIRE-Net's 2006-2008 Strategic Plan speaks to the need to redevelop manufacturing company properties in the urban core to ensure the city has a healthy tax and employment base and manufacturing firms have room to expand. The Trinity property affords an opportunity for one or more companies to have a modern space in an area supported by new infrastructure. WIRE-Net has welcomed the opportunity to be a part of that process.

OHIO’S “SILICON VALLEY OF ALTERNATIVE ENERGY”

2006-11-08T19:32:00.000-05:00

GETTING REAL

Over fifty people from 36 NE Ohio business organizations drilled into the business of Advanced Energy today (November 8, 2006), putting rubber on the road that leads to Ohio’s “Silicon Valley of Alternative Energy”, as our new Senator-elect, Sherrod Brown, puts it. They didn’t come to dissect policy or discuss legislation, but to identify opportunities to put NE Ohio’s manufacturing expertise to work in emerging advanced or alternative energy markets.

The event was cosponsored by WIRE-Net, the NE Ohio Campaign for American Manufacturing, the Cleveland Foundation, and Charter One Bank. Back in 2003, Ohio was in the thick of a vicious economic restructuring and had lost several hundred-thousand manufacturing jobs and over 1000 manufacturing firms. WIRE-Net’s Board stepped up and help create a public debate about the dire situation facing NE Ohio communities that depend heavily on manufacturing for jobs, taxes, innovation and economic health. That effort resulted in the formation of the NE Ohio Campaign for American Manufacturing or NEOCAM, which now includes a dozen organizations from across our region that speak for nearly 1000 manufacturing firms and their 60,000 employees. NEOCAM includes WIRE-Net, the major metalworking and metal finishing associations, the United Steelworkers of America-District 1, and others.

NEOCAM has pushed for legislative solutions to manufacturing challenges and has held several town hall forums that have looked at the impact of our inadequate trade policies on NE Ohio; we’ve held public forums with our candidates for Governor, including Governor-elect Ted Strickland; and candidates for Cleveland mayor, including Mayor Frank Jackson.

Today’s event was the second in our “Perspectives on American Manufacturing” series. This series kicked off in late September with a forum on Trade and US Manufacturing at the Union Club, where over 150 business leaders heard Dan DiMicco, CEO of Nucor Steel, deconstruct the myth of free trade.

Today we didn’t gather to debate policy, but instead to create practical awareness of opportunities in several emerging energy fields. The question was could we create meaningful links between NE Ohio companies, and new business opportunities in various segments of the energy field. Richard Steubi, of the Cleveland Foundation, an entrepreneur by nature, was willing to work closely with us to bring experts together with leaders from a variety of companies to bring new business to Cleveland.

So joining us today were leaders from many segments of NE Ohio’s business community, including lenders, law, economic development, investors, and, most importantly entrepreneurs and leaders of Ohio manufacturing firms of all sizes in

precision metal forming,
electronics,
hydraulics,
metalworking and machining,
plastics and polymers,
metal castings and others.

We can look backward and see great Ohio innovators in the energy field, like Charles Brush, who built perhaps the first functioning electricity generating windmill at his Euclid Avenue property in 1890 (check out the picture above from the December 1890 issue of Scientific American...taken at Brush's Euclid Avenue mansion. He used the windmill to recharge his batteries.) … but I’d rather look ahead to the great ideas and businesses that we can help generate out of the meeting held today. We’ve only started this “New Markets Initiative”, but we believe there is great potential, as expressed from the animated business-to-business discussions that Richard Steubi and his colleagues kick-started. And we already know companies that are doing great business building wind turbine gearboxes, and dryers for the PEM fuel cell industry. There is reason for optimism.

We also believe that this down to earth, face to face and “shoe leather” approach to economic development is what is needed to make the dream of a new kind of Ohio “silicon valley” a reality. We’re looking forward to working with our new Ohio leaders to make it real.

What We've Done Recently...

2006-10-13T15:40:00.000-05:00

MANUFACTURING MATTERS JOB FAIR: LINKING SKILLS TO OPPORTUNITIES

Fifteen manufacturing companies attended WIRE-Net's "Manufacturing Matters" Job Fair on Friday, September 29th. Planned to coincide with the City of Cleveland's Manufacturing Week, WIRE-Net partnered with the Cleveland's Employment Connection to create a venue for manufacturing companies to recruit and interview local job seekers. One company participant offered the following feedback:

"Thank you both for encouraging me to do the Job Fair on Friday, September 29, 2006. It was a good experience, and I would definitely do one again. I received a lot of applications at the Fair, and a lot of people took my business card and/or applications that they said they would return to me. Some (9) went right into the "no" pile because they marked that they had a felony conviction, or they made a poor first impression, or both. I have three in a maybe file and six that I am going to call to set up an interview with. At the Fair I set up one interview for yesterday. We are running the background check and physical/drug screen on him now, so keep your fingers crossed! "

NORTHEAST OHIO CAMPAIGN FOR AMERICAN MANUFACTURING

Dan DiMicco, Vice Chairman, President, and CEO of Nucor Corporation (NUE) was the featured speaker at the first installment of the WIRE-Net- & NEOCAM-sponsored speaker series, Perspectives on American Manufacturing, on Thursday, September 28th from Noon to 1:30 PM at The Union Club.

The luncheon forum, for 150 leaders of NE Ohio manufacturing companies, was also attended by business leaders from Florida, Minnesota, Illinois, and New York. Mr. DiMicco is head of a Charlotte, NC-based steel producer that is one of the world's fastest-growing companies. His talk, while addressing many of the national and international issues that are currently challenging U.S. manufacturing, zeroed in on the China currency issue. DiMicco insists that our trade imbalance, particularly with our Asian trading partners, is by far the most damaging to our national and economic security. He challenged the audience to become informed, educate their employees, and engage in discussion with political leaders to promote legislation that addresses our ballooning trade deficit. Check Nucor's Government Affairs link on their website for more information.

The second installment of Perspectives on American Manufacturing will feature Richard Stuebi, BP Fellow for Energy and Environmental Advancement at the Cleveland Foundation. Mr. Stuebi will address the group on new market opportunities for manufacturers in advanced energy. Following the presentation, industry experts will lead discussion groups to focus on the growing industries in wind, solar, fuel cells, biofuels, and clean coal sectors. Experts include:

Ken Alfred, Executive Director, Ohio Fuel Cell Coalition;
Sam Spofforth, Executive Director, Clean Fuels Ohio;
Bob Purgert, President, Energy Industries of Ohio; and
Erika Weliczko, President, RePower Solutions.

THE TIES THAT BIND

Every day WIRE-Net looks for ways to engage companies. Frequently, the catalyst is an issue of shared concern. This Spring, WIRE-Net's Jacki Adams facilitated a safety and security meeting to address the security concerns of businesses located on West 14th St, Valley, Jennings, Bradley, and Beltline Road. WIRE-Net solicited help from the Cleveland Police Department of Community Relations and Ward 15 Councilman Brian Cummins, to address the concerns of over 30 business leaders in the audience. While attendees found the information extremely valuable, several of the companies wanted to take additional steps to hire a private security firm to provide additional security to companies in the neighborhood.

Over the summer, WIRE-Net obtained proposals from two security firms and held neighborhood meetings to discuss the scope and cost of service. Subsequently eight of the companies selected a firm and agreed to share the expense associated with providing security for companies for the area.

NEW MEMBER PROFILE...214 AND COUNTING

ThermaFab Alloy is a steel fabrication company on the near west side of Cleveland. Their markets include energy producers who need their ASME pressure vessel certification for a variety of products incorporating specialty steels in heat exchangers, scrubbers and energy generation parts. WIRE-Net is helping them in several ways on their next steps with a $2.7 million dollar investment:

Support in gaining financing to expand their current business from City, County and State sources.
Identification of sites that would allow them to consolidate two existing locations with no room for growth into one location with space to grow.
Proposal for Lean Training and Implementation plus providing the key components to the creation of the culture required to support today's competitive demands.

Collaboration on new product development is one of the unique skills that Ty Haines brings to WIRE-Net members. Ty has added design input on a Geothermal Fuel Cell project that would bring several hundred million dollars in revenues to Ohio with a focus on Cleveland. ThermaFab, WIRE-Net and Independent Energy Partners are part of a group looking to build a proof of concept prototype early in 2007.

WIRE-Net's School-to-Career Program Launches 06-07 Year!

2006-10-05T15:01:00.000-05:00

WIRE-Net School-to-Career (STC) staff planned a fun-filled yet educational weekend get away trip for the STC students on Friday and Saturday, September 15^th and 16^th of 2006. Students departed Cleveland Friday morning for an overnight retreat at Pleasant Hill Outdoor Center in Perrysville, Ohio and then traveled Saturday to attend an all-day town hall meeting at University of Akron sponsored by Voices & Choices.

Upon arriving at Pleasant Hill, students were able to acclimate quickly to the campground environment before participating in a well-structured program developed by the STC staff. Students began with learning about accountability and the 10 standards they’re accountable for, and STC staff detailed 10 promises that students can expect from them. Both STC students and staff committed to their standards and expectations by signing an Agreement. The remainder of the structured activities involved students learning about the importance of self-awareness and how to assess their personality styles. Interspersed with the structured events, the students played basketball and billiards, talked around the campfire while roasting marshmallows and making s'mores, and took a nature walk on the campgrounds.

The next morning, upon arriving at the University of Akron, the students were greeted and dispersed at tables among the hundreds of attendees of Voices & Choices. While at their respective tables, they interacted very well with the attendees. They were asked to talk about themselves, their futures and their opinions regarding perceived problems and possible solutions of public education.

All and all, the weekend was a memorable one that students will talk about for months to come. STC staff has already received some initial remarks from students and parents commenting on how much these events how impacted their lives in a positive way. STC staff is in the process of sending a formal evaluation to all of the student participants.

WIRE-Net Honors School-to-Career Program Students, Employers, & Community Partners

2006-06-01T08:43:00.000-05:00

CLEVELAND (May 24, 2006)—Manufacturing matters to students, employers, and community stakeholders participating in WIRE-Net’s School-to-Career Program.

WIRE-Net is hosting its School-to-Career Program Awards Banquet at Brennan’s Party Center on May 25^th from 11:30 am-1:30 pm to recognize the achievements of participants in the School-to-Career Program. WIRE-Net has been a corporate partner with Max S. Hayes High School for the past 10 years and is celebrating the program by presenting 3 new awards—the John F. Sustar Award to a graduating senior, the Career Builder Award to an individual dedicated to the program and the Community Partner Award to a local employer.

WIRE-Net’s School-to-Career Program prepares young people to enter manufacturing by creating awareness of manufacturing positions available throughout the region and providing information on the skills they will need to move into these jobs or post-secondary education and training. Students are exposed to the employability & life skills needed to succeed in the workplace—“employment isn’t just technical ability—employers want to hire the job seeker that has the best attitude and is willing to go an extra mile to do the job well” says Annette May, School-to-Career Coordinator, Students. The School-to-Career Program engages local manufacturers in curriculum review, career days, field trips, plant tours, job shadowing, and ‘PAY’ opportunities. “Involving employers is critical—they are able to make connections from the classroom to the real world” says Derrick Parks, School-to-Career Coordinator, Employers. Employer engagement helped 9 of 16 graduating seniors get hired into manufacturing related positions upon completion of the program in 2005.

Partnership Pays Off

2006-05-22T10:43:00.000-05:00

...from INSIDE DISTRICT NEWS, a publication of the Cleveland Municipal School District.

Partnership Pays Off
AN INNOVATIVE PARTNERSHIP
BETWEEN Max Hayes and WIRENet’s
School-to Career Program is
providing students with preapprenticeships
and for some, full-time
jobs upon graduation.
Students interested in careers in
manufacturing are recruited for preapprenticeships
and job shadowing
opportunities at area manufacturing
companies and are also offered academic
support through tutoring. WIRE-Net
connects with member companies to
develop appropriate pre-apprenticeship
opportunities for students, then works
with Max Hayes instructors to identify
those best suited for the preapprenticeship.
WIRE-Net staff meets
with the prospective employer, the
student, and his/her instructor to
develop an appropriate training
program.
Besides spending 100 hours in their
pre-apprenticeship position, which
allows the student and the company time
to determine whether the pairing is a
‘good fit,’ students are paid $7 an hour
by WIRE-Net. Last year, 16 students
were placed in pre-apprenticeships and
more then half were hired as regular
employees. One student, now attending
North Carolina Agricultural &
Technical State University, returns to
Cleveland to work for the company he
was paired with during school breaks.
WIRE-Net’s School-to-Career
Program Manager, Jessica Malloy, says
the program’s growing success can be
attributed to a large base of member
companies, which allows for better
matches with student interests and trades.
A concerted effort is made to make the
pre-apprenticeships relevant to the
student’s future career. Max Hayes
Principal David Volosin says the WIRENet
partnership helps the school train the
workforce for the manufacturing skills
they will need in the 21st century. Volosin
added, “If we can teach the soft skills,
such as punctuality and hard work,
students will leave here so far ahead of
the game.”

BODYSTORMING AND UNFOCUS GROUPS...

2006-05-03T10:00:00.000-05:00

...are just two of the unusual techniques IDEO uses with its clients. IDEO is perhaps the world’s leading industrial design and innovation firm.

Tom Kelley, IDEO's managing partner, will not be just another innovation guru at WIRE-Net's Innovation Celebration on June 22 at Jacobs Field’s Terrace Club in Cleveland.

As someone whose firm helps their clients build a culture of innovation (this is what Kelley's latest book, "The 10 Faces of Innovation", is all about), Kelley – originally of Barberton, Ohio – will offer practical ways to strengthen innovation in any organization.

As Kaiser's Adam Nemer (a IDEO client) put it, "Consulting firms usually come in, go away, and return with heavy binders that sit on the desk. With IDEO, we partner up and work side-by-side. We are internalizing their methodology to build our own culture of innovation."

Another reason to sign up for WIRE-Net’s Innovation Celebration…Tom Kelley has TWO books in Business Week’s Top Five Business Innovation Books (“The Ten Faces of Innovation”, and “The Art of Innovation”).

Our thanks to Kaiser Permanente for joining WIRE-Net as our “Grand Slam” Sponsor for the Innovation Celebration.

For more information, give Pamela Holmes a call at (216) 588-1440, ext. 104.

INNOVATIONS IN WORKFORCE DEVELOPMENT

2006-04-07T12:35:00.000-05:00

WIRE-Net and PTDA Receive Funding for Innovative Workforce Development Initiative

Cleveland, OH – WIRE-Net announced that a partnership created with the Power Transmission Distributors Association (PTDA) Foundation has been awarded a grant by The Manufacturing Institute, the research and education arm of the National Association of Manufacturers. The Manufacturing Institute is supported by the Charles Stewart Mott, Hitachi, and Annie E. Casey Foundations in its “sector” work. WIRE-Net will be supporting the efforts of the PTDA Foundation by connecting them with workforce development intermediaries and related resources in Northeastern Ohio.

This one-year grant will support local industrial distribution and manufacturing and will strengthen Cleveland’s workforce system. According to Rebecca Kusner, Vice President of WIRE-Net’s Workforce Development Programs, “We are absolutely thrilled to be a part of this project. It was a highly competitive process and Cleveland is one of only two cities in the nation selected to implement it.”

WIRE-Net will be supporting the PTDA Foundation-led alliance to expand the Industrial Career’s Pathway (ICP) ^(SM) initiative in Cleveland. They will be working together to promote career awareness, development, and training opportunities by connecting industrial distribution and manufacturing employers, local workforce resources, and low-income residents.

Kusner continued, “WIRE-Net has a strong track record of successful collaboration with community partners.” WIRE-Net and PTDA Cleveland area members hope to recruit and train 60 individuals for jobs in manufacturing and distribution by December 2006 by working closely with Tri-C, the local Workforce Investment Board, local One-Stops, and other supporting community-based organizations.

“We know these are aggressive goals”, stated Ms. Kusner. “However, both organizations are confident that together we will be able to make them. Cleveland and, northeast Ohio as a whole, has a strong base of industrial distribution companies. It is essential that we work together to create new opportunities to sustain and grow this sector of our manufacturing economy.”

The Power Transmission Distributors Association (PTDA) is the leading association for the industrial power transmission/motion control distribution channel. PTDA is dedicated to providing exceptional networking; targeted education, relevant information, and leading-edge business tools to help distributors and manufacturers meet marketplace demands competitively and profitably.

The PTDA Foundation is a not-for-profit, tax-exempt 501(c)(3) corporation whose operations are funded entirely by tax-deductible contributions. The Foundation was founded in 1982 to enhance knowledge, education, professionalism, and productivity within the power transmission/motion control (PT/MC) industry.

WIRE-Net, as a management partner to manufacturing business leaders, provides services in manufacturing improvement, workforce development, and industrial real estate development and planning. A non-profit economic development organization, WIRE-Net has a membership base of over 200 manufacturing-related companies throughout the region.

WIRE-Net strengthens manufacturing in northeast Ohio to create healthy communities and fuel economic growth by providing expertise that is responsive to manufacturing related businesses and their employees. WIRE- Net connects leaders to each other and engages them in their communities. Through its mission WIRE-Net is working to create a region that values and invests in profitable, sustainable manufacturing companies. WIRE-Net is building a community of manufacturers that embraces innovation to compete globally, that works together to drive economic health locally, and whose leaders are committed to their employees and our community.

For more information, please see on WIRE-Net’s website at www.wire-net.org.

OHIO GRANT SPURS BUSINESS DEVELOPMENT

2006-04-07T12:31:00.000-05:00

Cleveland Innovator and City Benefit From Clean Ohio Grant

Cleveland, OH (March 30, 2006) The future of the City of Cleveland and one of WIRE-Net’s member companies was brightened by Monday’s announcement of a $750,000 Clean Ohio Assistance Fund (COAF) grant that has been awarded for brownfield remediation activities at the Detroit Avenue site of the former Monarch Aluminum/Trinity Building.

Energy Wise Building Systems, LLC, a manufacturer of energy efficient panelized building systems, hopes to invest approximately $3.2 million in a new office/warehouse facility on the 5.6 acre site, owned by the City of Cleveland’s Industrial Land Bank. Jacki Adams, WIRE-Net’s Industrial Outreach Manager and a representative affiliated with Cleveland’s Industrial Retention and Expansion (CIRI) Network, has been working with Energy Wise for the past 12 months. Adams states, “Joe Gallo and Mark and Brett Crudele are true innovators, just like leaders of other WIRE-Net member companies. They are committed to creating wealth, jobs, and new investment, and believe in sharing their success with the rest of the region. The construction of this new facility will permit the company to expand operations and add 35 new jobs. That’s good news for Energy Wise and great news for Cleveland.” According to Adams, the City of Cleveland would like to use the Energy Wise development as a sustainability model for future development activity at the Midland steel site. Their project still must go through a City and community review .

Clean Ohio Assistance Fund grants target projects in distressed communities that support job creation and economic expansion. Monies are used for Phase I and II Environmental Assessments, brownfield remediation, and public health projects. According to Mike Hoag, WIRE-Net’s Vice President of Redevelopment, the former Monarch Aluminum/Trinity Building site has been on WIRE-Net’s “short list” for some time. WIRE-Net used $55,000 from a USEPA grant in 2000 to launch assessment efforts to understand the environmental issues now being addressed with this grant. “We were very pleased the City made this property one of the Industrial Land Bank’s first acquisitions. This is a prime piece of real estate that meets the Clean Ohio Assistance Fund guidelines perfectly. Once demolition and remediation are complete, the property will bring new investment and a cutting edge manufacturing company into the city.”

Energy Wise Building Systems is one of over 200 manufacturing-related WIRE-Net-member companies that are bringing innovation and excellence to Northeast Ohio manufacturing. WIRE-Net offers management services and support to company leaders who use the principles of Total Manufacturing Innovation-- a holistic approach to company performance that incorporate innovation and best practices for managing people, products, processes, and productivity improvement. WIRE-Net members network to leverage their combined expertise to increase business productivity, sales, and global competitiveness.

For more information please see WIRE-Net’s website at www.wire-net.org. or call (216) 588.1440.

REBUILDING CLEVELAND'S INDUSTRIAL DISTRICTS

2006-04-07T12:22:00.000-05:00

Ohio Grant Supports Business Development in Cleveland

Cleveland, OH – WIRE-Net announced that the Ohio Department of Development has awarded a $500,000 grant to the City of Brook Park from their Roadwork Development Fund (629) to add the final funding piece for a planned $3.8 million reconfiguration of West 150^th Street between Industrial Parkway and Brookpark Road. This section of road spans the Cities of Cleveland and Brook Park and both communities will see the immediate benefits to strong commercial/industrial corridors.

“Collaboration has been the key to this project from the “get go”,” according to Michael Hoag, Vice President of WIRE-Net’s Redevelopment Program. “Cleveland and Brook Park recognize the importance of this artery in supporting a base of nearly 70 firms and 3,800 full-time jobs. Major roadway deficiencies will be addressed to allow these businesses to continue growing in this area”. Improvement slated under this project include, widening existing road lanes, increasing turning lanes at both Brookpark Road and Industrial Parkway, and addressing drainage and clearance issues at the Norfolk Southern railway bridge.

Additional funding was provided though the Ohio Public Works Commission with a $1.0 million grant and a $1.5M loan. The remaining cost will be shared among the Cities of Cleveland and Brook Park.

This industrial district in Cleveland has seen close to $14 million in business investment in the past 2 years, highlighted by a new $8 million warehouse/distribution facility opened by the Oatey Company in 2004. A private developer has plans to invest $4.5 million in a new 60,000 sq. ft. office/warehouse facility on 5 acres in the area and Amros, a designer and builder of specialty packaging, has already invested over $2 million since moving into the area last year.

“Public and private investment feed off each other”, notes John Colm, WIRE-Net’s President and Executive Director.

Brook Park will serve as the lead agency for coordinating the improvements. They already have an engineering firm under contract for design services and construction is targeted to begin later this year.

For more information, please see on WIRE-Net’s website at www.wire-net.org.

TRANSFORMING MANUFACTURING - RESHAPING TRADE POLICY

2006-04-07T11:53:00.000-05:00

The “giant sucking sound” of millions of manufacturing jobs being lost since 2002 was a major factor behind WIRE-Net’s decision to step into the debate over the future of US trade policy, beginning in 2004, especially since there was precious little public discussion of what was behind the manufacturing crisis.

While at least 40% of the jobs lost can be traced to the truly heroic efforts of US firms to improve their productivity and to become more competitive, millions of the jobs were lost due to weak demand, and to import subsitution – when buyers substitute foreign made for US products. This number could be as high as 30% of all jobs lost, according to some estimates. This is a huge issue and many policy makers and economic development pros don’t want to tackle the issue, preferring instead to fall back on the mantra of “free trade”.

Even at symposia supposedly meant to focus on this sticky issue, most discussions are held within the dominant “free trade” paradigm. So instead of dealing with the root cause of the problem, we hear platitudes about increasing funding for the feeble Trade Adjustment Act, job training programs, and other band-aid approaches. (Its interesting to note that many in Congress are for free trade, except when it comes to immigrant doctors, or immigration period. Free trade is good if you are looking for lower labor and other production costs, but not for people seeking employment in the US. In the latter case, the debate quickly shifts to how high the walls or fences around our borders should be…but not so when what’s at stake are the loss of hundreds of thousands of US manufacturing jobs, or the erosion of our business and innovation infrastructure.)

This is why it was refreshing to listen to Rob Atkinson at the recent Washington DC Summit of the International Economic Development Council (IEDC). Atkinson was formerly with the Progressive Policy Institute, and best noted for his work to rate regional economies for their performance in the “new economy”. He’s the author of a new book on US innovation. Among his top concerns for the US are our lack of fortitude in enforcing trade laws, particularly with regards to the currency manipulation of China and other Asian nations.

It was refreshing to hear Atkinson list weak trade-law enforcement as one of the major factors undermining US innovation and future economic growth, and also suggesting that border-adjusted taxes were a reasonable and feasible reaction to stem the tide of jobs flowing out of the US and imports flooding in. The US is States is the only country in the Organisation for Economic Co-operation and Development (OECD) without Border-Adjusted taxation. Rob Atkinson has now moved on from the PPI to a new “inside the beltway” think tank focusing on the challenges to US innovation. For more, see the Information Technology and Innovation Foundation at www.innovationpolicy.org.

Border Adjusted Taxation was also a key part of the case for a new approach to trade policy that Charlie Blum, of International Advisory Servces Group, made when he spoke before a group of WIRE-Net and NE Ohio business leaders several weeks ago. For an interesting article on this approach, see this link to an article by David Hartman:

http://www.chroniclesmagazine.org/cgi-bin/hartman.cgi/Taxes/2006/01/16/Cracks_in_the_Cryst

LITTLE ENGINES

2006-03-15T17:07:00.000-05:00

Small businesses generate more jobs than large ones. Its almost an article of faith, but recent data from the Labor Department reinforce it once again. From 1992-2005, payrolls of businesses with fewer than 100 employees generated 47% of new jobs created.

Payrolls of companies with more than 1,000 jobs accounted for just 28% of new jobs (see Business Week, SmallBiz, Spring 2006, p. 42).

WIRE-Net is targeting just these firms…manufacturers in Cleveland with sales of $25 million annually or less, but with 25 or more employees. There are about 530 of those in Cleveland, generating wealth by exporting their products outside our region to customers all over the globe. Combined, they employ nearly 33,000 people and generate annual sales of over $3.8 billion. WIRE-Net estimates total annual payroll at around $1.2 billion. Only about 65 of these companies have more than 100 employees. These are our "Little Engines".

CAUSE FOR OPTIMISM:

Our major challenge is engaging the leaders of these firms in programs to help them improve their operations, thereby strengthening local communities. But our track record gives cause for optimism…in each of the last 4 years we’ve worked with roughly 300 unique manufacturing firms.

BIG IMPACT

This includes “critical interventions” with seven firms, interventions where WIRE-Net’s “hands-on” role determined the outcome of a company’s decision to retain and/or attract new jobs to the city. Combined, the seven interventions helped retain and attract 564 jobs, a $22 million annual payroll, and an indirect employment impact on an additional 361 jobs in “downstream” business sectors.

In projects where WIRE-Net had an important impact, even if jobs were not at risk, WIRE-Net’s work with four other manufacturing firms helped companies significantly improve their competitive position and revenue base supporting 480 jobs and $19 million annual payroll. “Downstream”, the four projects impacted 307 jobs.

Bottom line: WIRE-Net’s work with these eleven manufacturing companies has had a direct regional economic impact on 1044 jobs with a combined annual payroll of over $41 million.

WIRE-Net is putting leather on the street to make a difference in Cleveland.

Momentum Building for Hunter-Ryan China Currency Bill

2006-02-27T10:07:00.000-05:00

A recent Cleveland Plain Dealer article detailed how African-American workers are suffering more than their share in our globalizing economy. A factor neglected in this article about the loss of manufacturing jobs is our stubborn commitment to obsolete trade policies (“Black factory workers hit hardest”, 2/25/06. Click here for a link to the original study, The Decline in African-American Representation in Unions and Auto Manufacturing, 1979-2004 by John Schmitt and Ben Zipperer, January 2006.). These policies are eroding the economies of communities across NE Ohio, particularly in Ohio Congressional District 11, represented by Stephanie Tubbs-Jones. This was the topic of a Chinese Currency Policy Briefing sponsored on Thursday, February 23 by the NE Ohio Campaign for American Manufacturing.

The Chinese government is perfecting the practice of currency manipulation – which is in effect an illegal export subsidy under World Trade Organization rules. Manufacturers know that manipulation of the Chinese currency gives products made in China a 30-40% cost advantage compared to products made here. This hidden tariff contributes to the hemorrhaging of US manufacturing jobs, the dislocation of US production, and erodes the living standards of working families -- white, Hispanic and, especially, African-Americans, as your article noted. Since China entered the WTO, Ohio has lost over 14,500 manufacturing jobs due to our trade deficit with China – fueled by their policy of currency manipulation.

Congress can change this. The China Currency Bill (HR 1498, introduced by Democrat Tim Ryan of Youngstown and Republican Duncan Hunter of California) would help US based manufacturers remain competitive around the globe. This is needed nowhere more than in Ohio’s 11th District, which has a large number of manufacturing firms, particularly in steel and related sectors that have been under attack from Chinese based competitors maximizing the unfair advantage of an undervalued Chinese Yuan. Tubbs-Jones is familiar with the problem, as she joined with others to challenge China’s currency manipulation in 2005.

Now it is time for Congresswoman Tubbs-Jones to join Northern Ohio’s congressional delegation, Democrats and Republicans alike, all of whom are cosponsoring the Hunter-Ryan bill. Doing so would bring the number of cosponsors to well over 150, the most bipartisan trade bill ever, and would send a clear signal to Chinese officials that the US wants action to end currency manipulation, leading to a more level international trading field. Click HERE to send a message to Congresswoman Tubbs-Jones. Phone calls to her Ohio office are preferred over faxes or emails.

WIRE-Net Cited as National Model

2006-02-13T14:56:00.000-05:00

A coalition of older cities has published a “guidebook” or manual on effective strategies to arrest and reverse urban decay. WIRE-Net was one model that is highlighted in the report, published by PolicyLink on behalf of the Community Development Partnerships’ Network. Other efforts in Cleveland were also highlighted. For example, the City of Cleveland’s landbank. Click here for a description of the citation and a link to the publication: http://edpro.blogspot.com/#innovolder

Protecting Ohio's Tool and Die Industry

2006-01-03T10:53:00.000-05:00

The tool and die industry is a crucial one. It creates the tooling needed to make almost every manufactured product, including products used in our national defense. It has long been considered a "strategic industry", which is why many nations have targeted the US industry, using government supports and market interventions to weaken US based companies while giving their own tool and die sector an advantage.

Since 1996, Michigan has been able to designate "Tool and Die Renaissance Recovery Zones" to provide up to 15 years of tax relief to tool and die firms with fewer than 50 employees that are participating in a qualified collaboration with similar firms. Tax relief is coupled with an approach linking small firms together to compete for larger jobs. The collaborative approach ("inter-firm collaborations") has been used by WIRE-Net for many years to help frequently isolated firms learn better and faster about how to effectively overcome challenges and compete globally.

In Cuyahoga County, 122 firms employing over 1500 people would match the Michigan criteria. This includes firms in metal cutting, metal forming, special tool & die, die set, jig and fixtures, and cutting and machine tool accessory makers. They have had a tough time of it, particularly given China's strategic targeting of this sector and the numerous advantages the Chinese government has given its own industry (everything from a currency that is 40% undervalued, to provision of loans that are rarely repaid, not to mention health care costs and the environmental and other protections that do not exist in China).

Isn't this worth a look in Ohio?

For information on the Michigan program, click here.

WIRE-Net's Purpose

2005-08-02T12:29:00.000-05:00

WIRE-Net's mission was last reviewed in 2001, and just slightly edited at that time. Upon review this year during our Strategic Planning, one telling comment was that "you cannot tell how WIRE-Net does its work from the existing mission statement." After discussion and review, WIRE-Net's Board approved the following Mission and Vision statement for the organization:

WIRE-Net’s Mission

WIRE-Net strengthens manufacturing to create healthy communities and fuel economic growth. We provide expertise that is responsive to manufacturing related businesses and their employees. WIRE-Net connects leaders to each other and engages them in their communities.

We support, we connect, we partner.

WIRE-Net’s Vision

We envision a region where manufacturing matters, a region that values and invests in manufacturing companies. Across our region, manufacturers embrace innovation to compete globally, work together to drive economic health locally, invest in their employees, and work together for stronger communities.

WIRE-Net: Where Manufacturing Matters.

Mfg Leaders See Hope in CAFTA Defeat

2005-07-28T15:02:00.000-05:00

Cleveland, July 28, 2005: The Northeast Ohio Campaign for American Manufacturing today said that Congress' vote on the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) reflects the growing lack of confidence in the direction of

trade policy.

Peter Accorti, VP of Talan Products in Cleveland, and Co-Chair of NEOCAM said, “Despite over a year of lobbying by global corporations and tremendous pressure from the Administration, CAFTA squeaked through with just a 2-vote margin. This shows that the time has come to recast the debate over

trade policy. There is serious division in Congress when it comes to

trade policy.” This view was echoed in a front-page Wall Street Journal article on July 29th entitled, "Cafta Vote Clouds Prospects for Other Trade Deals".

Nowhere is this more evident than among the congressional delegation of NE Ohio. “We found champions for a 21^st Century trade policy on both sides of the aisle,” Accorti said, and pointed to the heroic stance of Congressman Bob Ney (R-18), as well as Congresspersons Kaptur, Kucinich, Tubbs-Jones and S. Brown – all Democrats. Ney joined 26 other Republicans in voting against the bill.

“We are very disappointed in the position taken by Congressman Steve LaTourette (R-Painesville). He has been a strong defender of

based manufacturing up until last night,” Accorti said. “As late as Friday of last week he was a firm ‘no’ on CAFTA. But literally at the 11^th hour he buckled, despite the urging of leaders from business, churches, unions and other constituents to vote against CAFTA. We are very disappointed.” Accorti was also disappointed in Ralph Regula’s vote. “We thought getting Regula’s support was a long shot,” he said, “and at least he didn’t play both sides of the fence, but given the economic strain his district is under we thought we had a shot at getting him to vote no as well.”

According to Accorti, “The outmoded allegiance to an 18^th century theory of so-called ‘free trade’ is not in the best interests of American communities or our national or economic security,” Accorti said. “We need a comprehensive approach that results in reciprocal trade, and that creates jobs, with family-supporting wages, wealth and opportunities in American communities. As we’ve learned with NAFTA, and will see with CAFTA, the current trade regime does not accomplish this.”

Healthcare Costs

2005-07-25T21:45:00.000-05:00

The rising cost of health care...

...in the US is driven by several forces. WIRE-Net members have complained for years to COSE, to the Legislature, to Congress (yes, even to WIRE-Net) about double digit increases in insurance for their employees, about passing those costs on to employees or trimming benefits. They've gone to high deductible plans, and shared cost information with employees, rewarded wellness...but the rates keep climbing.

WIRE-Net itself saw a 60% increase in our premium with Kaiser (thru COSE) this year.

So whats behind this? Several factors:

Waste (up to 40% of health care costs is estimated by Industry Week to go for duplicative, or unnecessary procedures, wasted overhead, etc.).
Expensive technology driven procedures that fix problems that were basically unsolvable in the "old days".
Aging of the population, driving ever larger share of GDP being spent on health care...just wait a few years for the boomers to start retiring!
Poor feedback: as Michael Porter puts it, the system is competing on the wrong levels.

My immediate question is this... given the complexities, can't the various key stakeholders in holding the line on health care costs agree that cutting out waste is a good first step? Lets form a NE Ohio "Lean Health Care" initiative, organize some big corporations, the unions, public agencies, one or two key insurers and help the health care providers streamline their operations. As I said above, Industry Week estimates that up to 40% of the bill is for wasted procedures, overhead and inefficiencies.

Even modest progress would give NE Ohio a competitive advantage over other regions in the US, and would help products made here be more competitive around the world to boot.

Where Manufacturing Matters

2005-07-25T13:00:00.000-05:00

This is a new blog focused on the importance to the U.S. and communities across the nation of a strong, growing manufacturing base.

It will draw on the connections established by the staff and leadership of the Westside Industrial Retention & Expansion Network (WIRE-Net), in Cleveland, Ohio, USA, over the past 19 years.

For a glimpse of the work we do at WIRE-Net, see our website at www.wire-net.org.

More to come!

Defeating CAFTA is important to US Manufacturers

2005-07-25T12:56:00.000-05:00

WIRE-Net is a founding member of the NE Ohio Campaign for American Manufacturing (www.neocam.org). Several leading Ohio manufacturers recently joined NEOCAM's Advisory Committee. Here's what one of them wrote in an open letter to Congress about the need for a new debate about US International Trade Policy.

Dave Johnson is President of Summitville Tiles, Inc., and also Chair of the Ohio Manufacturers Association. July 12, 2005
An Open Letter to Congress:

Is there anybody in Congress that is concerned about the economic consequences of our already astronomical and still growing trade deficit ($618 Billion in 2004) and the continuing loss of U.S. manufacturing jobs? This year, the trade deficit is already running $100 Billion above last year. Next year’s trade deficit will grow higher yet. I believe that a significant source of this serious problem is the nation’s continued commitment to poorly designed “free trade” agreements. The Dominican Republic – Central American Free Trade Agreement (DR-CAFTA) currently being considered is an excellent example. While its proponents argue that it will stimulate the U.S. economy, the reality is that CAFTA is little more than an outsourcing agreement for multinational corporations that will cost additional American factories and jobs. There are a number of reasons this for this:

1. The six countries involved with CAFTA have a combined GDP of $85 Billion…about the size of New Haven, Connecticut! Over 40 percent of the population of these countries live in poverty. These countries simply lack the purchasing power to become net consumers of U.S. goods. Even the most optimistic forecasts predict that DR-CAFTA will only add $1 Billion in U.S. exports, a drop in the bucket of our current trade deficit. Yet, DR-CAFTA would open up the U.S. market to more and more cheap imports, further undercutting American manufacturers.

2. CAFTA would allow for more “turn-around” exports – products shipped south for assembly and then back north for sale in the U.S. The result would be a net loss of U.S. textile and apparel jobs. Already one third of our trade with these countries is in “turn-around” exports.

3. Chapter Nine of CAFTA invalidates “domestic procurement” laws. This means that, at a time when many middle class American jobs are being outsourced, state and federal agencies would be barred from legislating “buy American” guidelines in their purchasing decisions.

4. Passage of CAFTA would greatly influence future U.S. economic policy. If Congress, the Executive Branch, and the multi-national corporate lobbyists are able to pass this trade agreement, the momentum in Washington will swing to those seeking further outsourcing agreements, such as the Free Trade Area of the Americas, the Doha Round, a new Andean Free Trade Agreement, and a host of new bilateral free trade agreements. We need to stop DR-CAFTA and start to re-think American trade policy so that our trade policies benefit all Americans, not just the WallMarts and the multi-national corporations.

In the final analysis, DR-CAFTA is nothing but a further assault on an already imperiled American middle class. If we are to realize our potential as a country, and retain the strong, broad middle class that is America’s singular political and economic achievement, we must fight to keep a vibrant manufacturing base and good jobs here in America. This means that we must resist the perceived short term benefits that cheap foreign goods bring to WalMart shoppers and instead focus on a national trade policy that ensures America’s long term viability as a manufacturing based world power.

Sincerely,

David W. Johnson

CEO ~ Summitville Tiles, Inc.
Chair ~ Ohio Manufacturers Association

Can the Yuan Float?

2005-07-25T12:19:00.000-05:00

MANUFACTURERS CALL FOR CONTINUED U.S. PRESSURE ON CHINESE GOVERNMENT TO REVALUE CURRENCY

The Northeast Ohio Campaign for American Manufacturing (NEOCAM) calls on Congress to keep the pressure on the Chinese government to end currency manipulation. China announced on July 20th that it was revaluing the Yuan by 2 percent, and tying the Yuan’s value to a basket of currencies that will be evaluated daily, ending its longstanding peg against the U.S. dollar.

NEOCAM is a coalition of 900 Northeast Ohio manufacturing companies, industry and labor organizations that represents 90,000 Ohio workers and their families. NEOCAM has been calling for vigorous enforcement of fair trade laws and agreements. John Colm, Secretary of NEOCAM, states, “A mere 2 percent adjustment with a currency that is 40% undervalued means little. Every product made in China starts off with as much as a 40% cost advantage compared with U.S. made products – even before the product is shipped. This advantage has little to do with Chinese ingenuity, productivity or efficiency -- hallmarks of “free trade” -- and everything to do with government intervention in currency markets. This translates in the U.S. to lost sales and jobs, a weaker domestic manufacturing base, and a growing and unsustainable trade deficit.”

Colm said that NEOCAM’s concern now is that the turn of events in China becomes a distraction from other current global issues. “This is not a meaningful revaluation, and will only give apologists for the Chinese government ammunition in their campaign to persuade the public and Congress that China is ‘playing by the rules’. It will take the focus off the other key trade issue on the table, the Central America Free Trade Agreement (CAFTA).”

CAFTA is expected to come to the floor for a vote before the end of July. There is has been considerable pressure building about the need to put the so-called “free trade” agenda aside in order to develop a new approach to international commerce that results in reciprocal trade. The road we started down with NAFTA and now CAFTA is not working for American communities.”

NEOCAM is urging Congress to keep the pressure on China for meaningful revaluation and to vote against CAFTA. Both are crucial to preserving U.S. domestic manufacturing strength and maintaining our competitive advantage.

NE Ohio Campaign for American Manufacturing is a coalition representing over 900 NE Ohio manufacturing companies, the United Steelworkers of America, District 1 and 90,000 workers.

For information: www.neocam.org

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