WHO WE ARE MAGNET is an established nonprofit organization that works with small to mediumsized manufacturers in Northeast Ohio to enhance the companys products processes and workforce We are a onestop shop for manufacturers and provide an array of services including indepth consulting ID: 782273
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MAGNET
Linda BaritaMike O’Donnell
Slide2WHO WE ARE
MAGNET is an established non-profit organization that works with small to medium-sized manufacturers in Northeast Ohio to enhance the company’s products, processes, and workforce.
We are a one-stop shop for manufacturers and provide an array of services, including in-depth consulting, product design and development, management of hiring and training needs, improvement of operations and quality assurance, and the acceleration of sales and marketing
Customized around the client. Creation of economic impact.
Ready for growth and innovation? Learn more at
ManufacturingSuccess.org
Our partners help us to understand your needs and provide additional advice and services to support your growth.
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As a regional economic development organization, MAGNET’s aim is to help establish Northeast Ohio as a pre-eminent center for manufacturing growth where:
Jobs are being created
New products are being designed and produced
The Value of companies is increasing.
About
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263,516
individuals employed in manufacturing in NE Ohio:
18%
of total employment in the region
40% of Ohio’s manufacturing employment
19% of region’s GDP is in manufacturing
Average wage of NEO manufacturing sector is $
59,000;
43 % higher than average for non-manufacturing industries
For every $1.00 spent in manufacturing, another
$
1.82
is added to the economy the largest multiplier effect of any sector
Source: “Northeast Ohio Manufacturing Brief”, Maxine Levin College of Urban Affairs, Cleveland State University
,
Why Manufacturing Matters
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Slide5Primary Current Business ChallengesUnfavorable business climate (e.g. taxes, regulations)- 77.3%Rising health care/insurance costs – 72.2%Weaker domestic economy & sales for our products – 56.9%
Attracting & retaining a quality workforce – 52.8%Strengthened U.S dollar relative to other currencies – 49.8%Weaker global growth & slower export sales – 42.1%Rising raw material costs for products – 13.0%(NAM Manufacturers’ Outlook Survey/ checking all that apply, responses exceed 100%)
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Slide6This material is copyrighted by MAGNET. Reproduction of this material is by permission only.
TOP 3 DRIVERS OF FUTURE SUCCESS:
Talent
- High-skilled, flexible workforce – 68
%
Innovation - New product innovation – 48%
Productivity - Increased cash flow – 38
%
“Boiling point? The Skills Gap in U.S. Manufacturing,” Deloitte & Manufacturing Institute, 2011
Slide7Quote“The majority of jobs available today do not require a four-year degree---they require training. And many of these jobs offer a salary that can grow much faster than vocations that require massive student loans. And yet, millions of students are systematically discouraged—by parents and guidance counselors—from pursuing these opportunities.”
Mike Rowe, host of TV’s Somebody’s Gotta Do It.
Slide8September 2016
Manufacturing Statistics
Slide9Lake County MFG StatisticsOne year % Change in Employment: -1.4% Net Change in Manufacturing Employees in past 12 months:
-295Average Weekly Wage: $1279# of Establishments: 622# of People Employed: 20,941
Source:
QCEW Quarterly Census Data, Bureau of Labor Statistics
Slide10Ohio Manufacturing FactsTotal Manufacturing Output ($billions 2014): $98.69
Percent Share of total gross state product : 16.9%Manufacturing Firms in Ohio (2013): 12,777Manufacturing Employment (2015): 688,200Average Annual Compensation (Manufacturing, 2014): $71,178
Source: National Association of Manufacturers
Slide11Top 20 Facts about ManufacturingIn the most recent data, manufacturers contributed $2.17 trillion to the U.S. economy in 2015.
For every $1.00 spent in manufacturing, another $1.81 is added to the economy. The vast majority of manufacturing firms in the United States are quite small. In the most recent data, there were 251,857 firms in the manufacturing sector in 2013, with all but 3,702 firms considered to be small (e.g., having less than 500 employees). In fact, three-quarters of these firms have less than 20 employees.
Almost two-thirds of manufacturers are organized as pass-through entities. Looking just at manufacturing corporations and partnerships in the most recent data, 65.6 percent are either S corporations or a partnerships. The remainder are C corporations.
There are currently 12.3 million manufacturing workers in the United States, accounting for 9 percent of the workforce.
Source: National Association of Manufacturers
Slide12In 2014, the average manufacturing worker in the United States earned $79,553 annually, including pay and benefits.Manufacturers have one of the highest percentages of workers who are eligible for health benefits provided by their employer. Indeed, 92 percent of manufacturing employees were eligible for health insurance benefits in 2015, according to the Kaiser Family Foundation.
Manufacturers have experienced tremendous growth over the past couple decades, making them more “lean” and helping them become more competitive globally. Output per hour for all workers in the manufacturing sector has increased by more than 2.5 times since 1987. In contrast, productivity is roughly 1.7 times greater for all nonfarm businesses.
Over the next decade, nearly 3½ million manufacturing jobs will likely be needed, and 2 million are expected to go unfilled due to the skills gap.
Exports support higher-paying jobs for an increasingly educated and diverse workforce. Jobs supported by exports pay, on average, 18 percent more than other jobs.
Source: National Association of Manufacturers
Slide13Over the past 25 years, U.S.-manufactured goods exports have quadrupled. Manufactured goods exports have grown substantially to our largest trading partners since 1990, including to Canada, Mexico and even China.
Nearly half of all manufactured goods exports went to nations that the U.S. has free trade agreements (FTAs) with. In 2015, manufacturers in the U.S. exported $634.6 billion in goods to FTA countries, or 48.2 percent of the total. World trade in manufactured goods has more than doubled between 2000 and 2014—from $4.8 trillion to $12.2 trillion.
Taken alone, manufacturing in the United States would be the ninth-largest economy in the world
Source: National Association of Manufacturers
Slide14Foreign direct investment in manufacturing exceeded $1 trillion for the first time ever in 2014. U.S. affiliates of foreign multi-national enterprises employ more than 2 million manufacturing workers in the United States, or almost one-sixth of total employment in the sector.
Manufacturers in the United States perform more than three-quarters of all private-sector research and development (R&D) in the nation, driving more innovation than any other sector. Manufacturers consume more than 30 percent of the nation’s energy consumption. Industrial users consumed 31.5 quadrillion Btu of energy in 2014, or 32 percent of the total.
The cost of federal regulations fall disproportionately on manufacturers, particularly those that are smaller
.
Source: National Association of Manufacturers
Slide15Manufacturing Employment by County
Source: 2011 CSU Manufacturing Brief
Slide16To address the current and future talent needs of regional employers, MAGNET provides services to increase access to a pipeline of skilled workers from three key groups:
Emerging WorkforceWork-Based Learning
Dream It Do It (
NAM)
Ambassador Program
Robotics/STEM in High Schools
Transitioning Workforce
Vets Transition to Mfg. Careers
“Right Skills Now”
Incumbent Workforce
Company-specific WF needs
Re-Training/Up-skilling
Structured OJT Process
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Talent
Slide17Cleveland manufacturer of distribution supplies was experiencing low morale and high turnover as a result of little to no continuous improvement
After connecting with MAGNET, LEFCO was able improve communication through solicited input, prioritization of key operations issues, and increased accountability
Resulted in significant reduction in turnover, 7 retained jobs, and stronger relationships between employees and upper management
Reducing Turnover with Prioritization and Accountability
Slide18Innovation
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Customer Intimacy
Value Engineering Product
Impact:
#1 Selling slide in S.R. Smith’s family of Slides
Manufactured in Ohio
Define
– Develop a fun and new natural pool-scape design
Based on customer feedback and market research
Discover
– Multiple concepts generated, screened and scored against design requirements, presented to client for final concept selection
Develop
– 3D Modeling & Engineering, Developed proof of concept prototypes, FEA, full scale testing prototypes, pattern build review, tooling build review
Deliver
– Engineering and production pilot runs, Met target show date & market launch date
Before
After
Slide20Productivity
Slide21Manufacturer of blades, guards, and related products for large snowplowsFelt the need to expand into new markets with new products due to highly seasonal sales cycle
MAGNET identified company’s core competencies through ideation sessions, patent research, rapid prototyping, and new concept designsResulted in launch of a new product line and entrance into new markets
MAGNET experts also trained sales reps and provided sales and marketing assistance for industry trade shows
Innovating Products and Increasing Sales
Slide22Family-owned producer of nylon products used for wide variety of purposes (construction, water treatment, packaging, etc.)
Wanted to improve interactions between employees and create a positive company dynamicGenerated enthusiasm through new mission statements and valuesManagement saw employees taking on active roles and participating in more discussions
Improving Leadership and Culture through Communication
Slide23Needed to bring workers up to skill and hire more associates to ensure long-term successEstablished unique Lean manufacturing initiative as a sustainable option for continuous improvement
Redefined manufacturing work processes so everyone knew their roles and could be on-boarded in a quick, efficient mannerCreated team-based culture for better communication and productivity
Improving Productivity through Workforce Efforts
Slide24PRISM makes connections to the regions growth-enabling-network faster and easier
Our Partners
Service Providers
Government Agencies and Labs
Universities/
Community Colleges
Economic Development Organizations
Collaborating Manufacturers
NEO Assets
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Some of our partners include…