California Manufacturing Task Force Urges…

California Manufacturing Task Force Urges…

Mar 28, 2016

“California Manufacturing Task Force Urges New Manufacturing & Trade Strategies” By Michele Nash-Hoff, Saving U.S. Manufacturing At the Northern California Manufacturing Summit held in Sacramento on February 19, 2016, attendees had the opportunity to sign up to be on a Manufacturing Task Force to prepare a report after selecting the most important issues affecting manufacturing during the concluding breakout session. Over the last month, the Task Force conferred via conference call and email to create a report that was approved last week. As chair of the California chapter of the Coalition for a Prosperous America, one of the co-hosts of the event, I disseminated the report to all of the summit sponsors, partners, and attendees, as well as all of the Congressional Representatives, State Senators, and Assembly members in the Sacramento region. The report will be disseminated to the rest of the California Congressional delegation in the near future. The final report is shown below. “We are the business and community leader Task Force established by the ‘Northern California Manufacturing Summit’ event held in Sacramento on February 19, 2016. Nearly 100 business owners, civic, academic and labor leaders met in Sacramento for this nonpartisan economic summit to explore solutions to grow California’s manufacturing opportunities. Co-hosts Placer County, the City of Sacramento, the Coalition for a Prosperous America were joined by lead sponsors Gerdau and the United Steelworkers Union, as well as more than a dozen other local and regional business and community organizations to sponsor the event. Participants and event partners listed below collaborated and prioritized the most important issues that face California manufacturers. A Task Force was created to deliver the group’s consensus to policy makers and to work for implementation. A Manufacturing Strategy to promote growth should be a top state and national priority. Manufacturing not only creates innovation and wealth, but manufacturing has the highest jobs multiplier of any sector. Unfortunately, California lost 33.3% of its manufacturing industry representing more than 600,000 manufacturing jobs between 2000 – 2010, some to other countries and states. California is improving, but is lagging behind the rest of the U. S. in growth of the industry jobs (2% vs. 7.6 %.) Since the end of...

What Could be done about China’s Theft of Intellectual Property

What Could be done about China’s  Theft of Intellectual Property

Feb 24, 2016

By Michele Nash-Hoff, Saving U.S. Manufacturing Hardly a week goes by without a report of Chinese “hacking” or Intellectual Property Theft, so it was no surprise that a published analysis by CrowdStrike, a California-based cyber security company, revealed that China violated its cyber agreement with the United States the very next day after  CNBC reported that President Obama and China’s President Xi Jinping agreed to not conduct cyber theft of intellectual property on Friday, September 25, 2015. President Obama said. “The United States government does not engage in cyber economic espionage for commercial gain, and today I can announce that our two countries have reached a common understanding on a way forward.” However, the U.S.-China agreement “does not prohibit cyber spying for national security purposes.” It is interesting to note that the day before the announcement, September 24, 2015, Chet Nagle, a former CIA agent and current Vice President of M-CAM, penned an article in the Daily Caller, stating, “At FBI headquarters in July, the head of FBI counterintelligence, Randall Coleman, said there has been a 53 percent increase in the theft of American trade secrets, thefts that have cost hundreds of billions of dollars in the past year. In an FBI  survey of 165 private companies, half of them said they were victims of economic espionage or theft of trade secrets – 95 percent of those cases involved individuals associated with the Chinese government.” He blamed the corruption of Chinese government officials for the problem and stated that “President Xi Jinping has instituted a strict anti-corruption campaign. Regrettably, the campaign has focused on “tigers” – senior government officials – at the expense of eliminating the rampant corruption by the “flies” – officials at the provincial and local level. In any event, putting a dollar value on direct corruption does not address the totality of the costs. Business confidence and foreign direct investment in China are already falling because of the absence of the rule of law.” He concluded, “China’s disregard of the rule of law should be the underlying driver for all discussions of commercial topics during the coming visit of China’s president. Lack of the rule of law is the most difficult...

Is Reshoring Increasing or Declining?

Is Reshoring Increasing or Declining?

Jan 21, 2016

By Michele Nash-Hoff, Saving U.S. Manufacturing In December, two conflicting reports were released, one by A.T. Kearney and one by the Boston Consulting Group. The A. T. Kearney report states that reshoring may be “over before it began”, and the Boston Consulting Group report states that it is increasing. Why the difference in opinion and who is right? This was the second report by A. T. Kearney, in which their “U.S. Reshoring Index shows that, for the fourth consecutive year, reshoring of manufacturing activities to the United States has once again failed to keep up with offshoring. This time the index has dropped to -115, down from -30 in 2014, and it represents the largest year-over-year decrease in the past 10 years.” In fact, they conclude that “the rate of reshoring actually lagged that of offshoring between 2009 and 2013, as the growth of overall domestic U.S. manufacturing activity failed to keep pace with the import of offshore manufactured goods over the five-year period. The one exception was 2011.” The authors of the A. T. Kearney report identify the two main factors contributing to the drop in the reshoring index to be “lackluster domestic manufacturing growth and the resilience of the offshore manufacturing sector.” With regard to the lackluster domestic manufacturing, the report states that data from the U. S. Bureau of Economic Analysis predicted that U. S. manufacturing gross output would shrink by 3.6% through the end of 2015 based on data through November [December data not available.] On the other hand, the Boston Consulting Group survey results showed that “Thirty-one percent of respondents to BCG’s fourth annual survey of senior U.S.-based manufacturing executives at companies with at least $1 billion in annual revenues said that their companies are most likely to add production capacity in the U.S. within five years for goods sold in the U.S., while 20% said they are most likely to add capacity in China…The share of executives saying that their companies are actively reshoring production increased by 9% since 2014 and by about 250% since 2012. This suggests that companies that were considering reshoring in the past three years are now taking action. By a two-to-one margin, executives...

CONNECT’s Most Innovative New Product Awards…

CONNECT’s Most Innovative New Product Awards…

Dec 9, 2015

“CONNECT’s Most Innovative New Product Awards Feature Cutting Edge Technology” By  Michele Nash-Hoff, Saving US Manufacturing On December 1, 2015, CONNECT presented its Most Innovative New Product awards to winners in eight categories at its 28th annual event at the Hyatt Regency Aventine. CONNECT is a premier innovation company accelerator in San Diego that helps startup entrepreneurial teams become great companies in the technology and life sciences sectors by providing access to the people capital, and technology resources they need to succeed. CONNECT has assisted in the formation and development of more than 3,000 companies since 1985. Lead sponsors for the event were Ardea Biosciences, Cubic Corporation, and JP Morgan Chase & Company. Under the new leadership of CEO, Greg McKee, CONNECT has refocused its vision for the future. In his opening comments, McKee said, “We enable and empower scientists and entrepreneurs to transform their ideas into products and services that change lives. We create and activate a powerful network of the world’s leading researchers, entrepreneurs and investors that have an innate drive to be purposeful in making the world a better place. The CONNECT experience elevates the value of this network to make San Diego the center of extraordinary and highly convergent technology. The people of CONNECT are dedicated, authentic, and passionately committed to making a difference in our region and the world. CONNECT’s community ignites San Diego’s position as a leader in the global innovation economy.” He announced a new big goal to “build the next ten ONE BILLION DOLLAR COMPANIES” by 2025 to help grow the San Diego 200 billion dollar ecosystem to 300 billion dollars.” While admitting the goal is ambitious, he said it is important “Because companies of this size are the life blood of our community – they bring jobs, tax revenues, international recognition, sophistication, and most importantly, they are a magnet to the next generation of leaders. The more successful companies we can create, the stronger the gravitational pull to San Diego becomes.” Continuing, he said, “But, San Diego’s entrepreneurs are no strangers to creating billion dollar companies. Just off the top of my head, there’s Illumina, Dexcom, Cubic, Care Fusion, Amylin, Idec, Life Technologies, Nuvasive, Callaway,...

Workshops for Warriors Prepares Vets for Skilled Manufacturing Jobs

By: Michele Nash-Hoff, Can American Manufacturing Be Saved While there are over 12 million people unemployed, there are hundreds of thousands of manufacturing jobs going unfilled due to the lack of people with the right skills to fill those jobs. Much of the demand for skilled workers arises because the automated factories of today demand workers who can operate, program and maintain the new computerized equipment. On the other side of the equation, we have thousands of young men and women who are ending their military service and having great difficulty finding jobs because there is a mismatch in the skills they acquired in the military and the skill needs to find a civilian job, particularly in the manufacturing industry. Transitioning from military service to civilian life is challenging in the best of times, but has been even tougher in the current economy. For the estimated two million veterans who served a tour — or multiple tours — of duty in the wars in Iraq and Afghanistan, there are even more hurdles than usual. The jobless rate amongst these veterans was more than 12 percent in 2011, well above the national average rate of the general population. It was even worse for veterans between 18 and 34 years old; their jobless rate neared 30 percent in 2011. In California, nearly one in four veterans ages 18-24 were unemployed in 2009, almost double the unemployment rate for the civilian population. Other factors that come into play include medical advances that are resulting in greater survivability on the battlefield with more “Wounded Warriors” (severely injured service members) returning home. On October 5th, I visited the Workshops for Warriors facility in San Diego during their Manufacturing Day Facility Tour and met retired naval officer Hernán Luis y Prado, founder and president of Workshops for Warriors (WFW), a Board-governed 501 (c) 3 nonprofit organization that provides free vocational training to veterans of the US Armed Services. WFW assists the transition of veterans and injured veterans into civilian life through mentorship, training, and education. Their mission is to certify and place veterans of the US Armed Services into manufacturing careers. The main objective of WFW is to enable veterans...