🔒A manufacturing challenge: thinking differently to compete globally

To survive in today's economic climate, it has become evident that small to mid-sized manufacturing companies need to continually think and act creatively about the factors that will allow them to achieve global competitiveness.

These companies are being pushed to innovate, to explore new production methods, and rethink how they conduct business. The pressure to change comes from an increasingly competitive global market that is demanding compressed delivery times and higher-quality products at lower costs. The usual strategy of budget tightening, cutting expenses, and operating month-to-month or quarter-to-quarter to sustain current profit levels is at the tipping point. Status quo is no longer an option.

One challenge is clear — the testing and implementing of advanced technologies and process improvements, which are critical to significantly drive business, are inherently restricted under a short-term business model. These changes require investments of time and resources that cannot be recouped within a few months.

In an ideal world, maintaining in-house research and development facilities would enable companies to take production offline to test and prove innovative ways to measure, cut and shape. Unfortunately, for the majority of small and mid-sized manufacturers, this is not feasible. When customers are pressing for rapid response times, all hands and machines need to be working. Most companies are not positioned to take assets offline — accentuating downtime — or to assume the risks that additional debt represents.

It has become necessary for a tactical shift in thinking to focus on operations and productivity for a longer term, not solely the immediate months ahead. It is time to invest in new technology assets and process optimization to maximize capacity and business success.

 A shift should be pursued because it can result in significantly increased productivity. This axiom is true: We have seen the results of focused process optimization at CCAT's Advanced Manufacturing Center, which dramatically improved cycle times and yielded substantial boosts in milling and turning capacity. These are game-changing results that make a difference in the short- and long-term.

While policies and programs that focus on jobs and workforce issues will continue to be important, these alone are not sufficient. Assertive efforts to support technology development are needed to accelerate change.

In a global market fueled by product innovations, we have and must continue to use public policies to stimulate technology advancement, enhance production, and ensure expansion of the smaller manufacturing sector.

Currently this aid is being recognized and offered through Connecticut's Manufacturing Innovation Fund (MIF) and specific Department of Economic and Community Development and Department of Labor budgeted line items. These fiscal policies recognize the significant value of investing in technology infusion and optimization of manufacturing production along with focusing on current and future manufacturing employment needs.

With the recently unveiled Apprenticeship, Incumbent Worker, Manufacturing Voucher, and Young Manufacturers Academy programs under the MIF, smaller companies will benefit from a comprehensive support program that integrates technology and talent.

In fact, these programs are an investment in a lean manufacturing process improvement. When the capacity of the machines themselves is boosted, businesses have a more competitive ability to sustain profitability without necessarily incurring burdensome capital debt or operating expenses. Further, as market demand increases, companies will be primed with the ability and resources to both add new equipment and increase their workforces.

Growing the U.S. manufacturing base is a core pillar of the country's and state's economic recovery plan, and that model is solid. According to the National Institute of Standards and Technology, manufacturing will always serve as the foundation of the U.S. economy because it challenges us to become more innovative and with innovation comes expansion and jobs.

We know that manufacturing is specifically critical to Connecticut's and the region's economic recovery and stability. In 2014, manufacturing accounted for more than 11 percent of this state's total output, second only to the financial services industry. The majority of the manufacturing sector is small to mid-sized companies that employ most of the state's 159,600 manufacturing workers, making up close to 10 percent of the total workforce. Beyond that are the supplier companies and community economies impacted by the industry. The sector's value to Connecticut cannot be understated.

Although recent news reports indicate that economic recovery in our region is leveling to the rest of the country, continued support for technology infusion and optimization becomes an important matter to this sector's success, along with the ability to train employees in the advanced skills required by today's manufacturing jobs.

With the continuing enhancement of policy that aims to bring small and mid-sized manufacturers into a productive alliance with research and development partners, the issues of capacity building, sustainment and growth will be addressed.

It is a realistic strategy for implementing vital long-term investments while managing quarter-to-quarter financial goals. And it solidly positions manufacturers in Connecticut, the region and the nation for the global competitive future. 

Elliot Ginsberg is the president and CEO of the Connecticut Center for Advanced Technology in East Hartford.