The New Age of Manufacturing in the Highlands

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By Lisa Norris

There is a saying that perception is reality and, in the job-related views of many, the perception is that manufacturing is dead.   The commonly held beliefs appear to be that “there is no future for us in manufacturing,”  “all the jobs are going to Mexico or China,” and “manufacturing will not play a large role in our future economy.”     As the migration to nursing and medical work looks like a flock of Swallows en route to Capistrano, perceptions appear to be influencing the public view of manufacturing at the family level too, as in “I wouldn’t want my children to work in a manufacturing job.” 

 

But these views appear to be, at best, incomplete, in light of the current facts and figures around manufacturing in both the Highlands region and in the nation in general.   

 

Perception:  “there is no future for us in manufacturing in the Highlands”

Realities:  

1.     The study released by Tennessee’s Economic Development group this year indicated that 86% of future job growth will come from existing jobs, which are heavily rooted manufacturing. 

2.     In this region, Flowserve grew sales significantly in the past year and is poised to repeat that pattern, G&L is experiencing significant growth, Oreck is limited mostly by a need for increased capacity, Dacco has had hiring activity, Aphena Group (formerly Pre Pak Systems) continues to thrive, and there are more manufacturers with plans for expansion and growth in the region.

3.     VW in Chattanooga is poised to become the global automotive leader, according to industry sources and predictions, and continues to pursue the region as a competitive resource for supplied components, meaning hundreds of jobs.

 

Perception:  “all of the jobs are going to Mexico or China”

Realities: 

1.     While some companies, like Philips in Sparta, are still on a trajectory to Mexico, the wisdom of those companies appears to be in question as they are moving against the global competitiveness tide in which Mexico, China and the US are identified as close competitors.   

 

Several years ago, Toyota identified Mexico as too politically unstable and dangerous for locating new business, opting to pursue other global options, including the U.S.   Today, Toyota has toppled from its leading position in some ways, but their insight appears to be accurate as companies have policies in place that restrict travel to Mexico because of the dangers there.  

With fuel cost and other logistic and socio-economic factors, the cost of doing business in China is also changing the competitive landscape, making the U.S. a viable competitor in global manufacturing operations.

 

2.     A study published this week by the U.S. Department of Commerce states that manufacturing is vital to the U.S. economy.  While the challenges in research, education and, perhaps, perception are great, the United States has a strong base for competitive footing.    Retaining and growing the manufacturing sector has become a top national priority, according to the study. 

3.     In an article published this week, Industry Week magazine stated that some 300,000 manufacturing jobs are currently open in the U.S. today.   These jobs in engineering, human resources, purchasing, logistics, leadership and operations are quality opportunities.  The article speculates that the key challenge may be overcoming the perception that “manufacturing is not our future.”  

 

Perception:  “I wouldn’t want my children to work in manufacturing”

Alternate views: 

 

1.     The mental image some carry of dangerous, dark, dirty, mind-numbing repetitive work is one carried consistently in the movies, but seems far removed from the realities of today’s manufacturing environment.  Today’s manufacturing operation is subject to international audits, extensive environmental and safety requirements and the need for increased productivity, which is rooted in a well-organized, well-lit, alert environment.    Today’s manufacturer uses the plant floor as a sales tool in growing the business and it is a place where problem solvers work, not where brains are checked at the door.   

2.     The idea that manufacturing is where individuals without education migrate is out-dated, according to companies like VW.   All area companies that we surveyed require at least a high school equivalency and prefer some technical training for the most entry level job.   VW has stated that it would like for all manufacturing associates to have an associates degree (2 year degree) in Industrial Technology or similar and community colleges are working feverishly to help close that education gap.   

 

Perhaps part of the problem, as stated in Industry Week this week, is rooted with the manufacturers themselves.   A quietly productive industry, the local chambers of commerce have often been frustrated in their quests for publicity and public information about these growing companies.    Unless one has had the opportunity to visit a number of the area’s manufacturing plants, it is easy to retain the perception that they are a dying lot.   But some of the best of the best are right here, in the Upper Cumberland. 

 

According to Industry Week, manufacturing was not even included as a career option in school studies where children were exposed to careers.    Is this because educators believe that manufacturing is dead as well?  

 

It may be a perception we need to revisit, according to the Department of Commerce.  In the U.S. Competitiveness study released last week, rising to the challenge of retaining and growing manufacturing in our region, as in others, will be rooted in changing our view of the competitive possibilities, addressing our education gaps, especially in science, technology, engineering and math (STEM), and providing support for research and development that fosters innovation. 

 

It may be misunderstood, under-represented and unknown, but manufacturing might find an appropriate quote in Mark Twain, "The report of my death was an exaggeration.”   

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