Toward a Global Manufacturing Renaissance

Toward a Global Manufacturing Renaissance Alliance

TopicsDe-Industrialization of America 1980 2010Obama Initiatives in ManufacturingEmergence of U.S. National Manufacturing RenaissanceForming a Global Manufacturing Renaissance Alliance2

Our Debt to EuropeBuilding on Best European PracticesRecognizing European leadership in manufacturingAmericans want a more powerful strategy 3Carrying Coal to NewcastleVision for a Manufacturing RenaissanceInnovation in technology must be fused with innovation in social inclusion and development.

Recognize manufacturing is the only sector that canEnd povertySolve environmental crisisCreate social capital

Requires partnership among public, private, labor, community.4Advanced manufacturing is the essential means to global development that is economically, socially, and environmentally sustainable and restorative. De-Industrialization of America

5De-Industrialization of America1980s through 2010National EmploymentChicago 1980s and 90s4,000 of 7,000 factories closed

200,000 jobs lost

Further U.S. Declines1/3 of manufacturing workforce lost 2000-09

Deteriorating U.S. Balance of Trade 1992 - 2008

6http://www.tradingeconomics.com/united-states/balance-of-trade6Decline in U.S. Innovation 1980 2010 Share of high tech manufacturing 2002-12U.S. down 20%; China up 5xU.S. low global rank in math, science, readingU.S. not keeping pace in innovationTrends toward increasing economic marginalization, social polarization and inequality in all aspects of life in U.S. We have been eating our seed corn.Norm Augustine, 2011Former ChairmanLockheed Martin

7

Social Consequences of De-Industrialization and Declining InnovationUrban poverty Losses in tax base Deteriorating social safety netGrowing income inequalityDismantled vocational educationReduced technology investment

8Perceived death of U.S. manufacturing8U.S. Manufacturing is Not Dead9Closed due to core business issuesClosed due to Wall Street Investment Strategies milk the cash cowFlawed Government Practices and PolicyU.S. Manufacturing is Not Dead12 millionemployees11 percentof U.S. GDP$74,447averagecompensation#1 mostproductiveworkforce$1.6 trillionyearly output10

10Many manufacturers dont know how significant their own sector of the economy isbeing focused on their own business and their competitors;Most policy makers and public leaders assume manufacturing is a thing of the past and dont understand the resilience and potential of our sector;Modern manufacturing has the most powerful and positive impact on our economymore so than any other sector.

Sources: International Monetary Fund and U.S. Bureau of Economic Analysis (http://www.nam.org/Resource-Center/Facts-About-Manufacturing/Landing.aspx)President Obamas Leadership 113D Printing and Additive Manufacturing InstituteYoungstown, Ohio Digital and Design InstituteChicagoLightweight and Modern Metals InstituteDetroitNext Generation Power Electronics InstituteNorth Carolina

Manufacturing Innovation Institutes, $1 Billion45 more plannedPresident Obamas Leadership High School Redesign - $100mApprenticeships - $600m Manufacturing Communities Partnership - $1.3b 668,000 new manufacturing jobs since 2010More is needed12Taking Local Solutions to Scale13Chicago Manufacturing Renaissance CouncilFormed in 2005PartnersPrinciplesAdvanced manufacturing as foundation for strong economyStrategic partnerships Need for education reformCommitment to building communities

141415CMRCs First Focus:The Austin Community

15

African AmericanUnemploymentPovertyViolenceFormerly strong industrial, working community15Austin Polytechnical AcademyInspired by schools in Spain and Italy55 private company partnersNot a vocational or trade school provides education for leadershipProductionManagementOwnershipStudents earn nationally recognized industrial credentials16

17Austin Polytechnical Academy

17Manufacturing Renaissance: A Model of Community Development18National Manufacturing Renaissance Council19American Federation of Labor (AFL-CIO)National Urban LeagueManufacturing InstituteSociety for Manufacturing EngineersNational Institute for Metalworking SkillsCalifornia Teachers Association

Pittsburgh MRCToward a Global Manufacturing Renaissance Alliance20Partnership with ASTER

21

Formed in 2013Anchored in mutual learning, mutual exchange and supportCommitted to building a Global Manufacturing Renaissance AllianceGlobal North and SouthLaunching today by the Italian Ministry for Economic Development, the Region of Emilia-Romagna, ASTER and Manufacturing Renaissance.

In ConclusionWhat We KnowDemise of U.S. Manufacturing was AvoidableManufacturing Renaissance is a Practical ModelShared realitiesSocial exclusionUnemploymentPolitical polarizationMoving ForwardAdvanced Manufacturing fused with Social Inclusion is Key

Timing is Critical

Joint creation of the Global Manufacturing Renaissance Alliance22Dan SwinneyExecutive DirectorManufacturing Renaissance

773-278-5418 x13dswinney@mfgren.org

www.mfgren.org23