News coverage of Obama's $1 billion initiative to boost manufacturing

Some recent news coverage from the Society of Manufacturing Engineers on Obama's announcement to boost manufacturing:  

CNN (3/9, Aigner-Treworgy) reported, "President Barack Obama traveled Friday to a Rolls-Royce jet engine facility in Virginia, where he outlined a proposed network for manufacturers to share 'access to cutting edge capabilities.' Obama, speaking in Prince George, said the National Manufacturing Innovation Network is meant to link industry stakeholders in a national conversation about best manufacturing practices. The cost of the president's new proposal is $1 billion, but the White House is committed to creating a pilot program using appropriated funds from various departments, rather than waiting for Congress to approve funds requested in the president's budget."

        The Washington Post (3/10, Wilson) reported, "The centers would bring together industry, colleges and universities, and government agencies, as well as invest in new technologies, to help train workers for what the president has called the manufacturing jobs of the future. Obama also announced steps to use executive authority to authorize $45 million in existing resources to develop a pilot program for those institutes. The money does not require congressional approval, which he joked during his remarks was hard to come by."

        Bloomberg News (3/9, Runningen) reported, "Each of the technology hubs would focus on a specific manufacturing technology geared to the region, such as developing lightweight materials for use in next-generation automobiles, aircraft, ships and trains."

        Voice of America (3/9, Robinson) reported Obama said, "We have got to have this all across the country. I want everybody thinking about how are we making the best products, how we are harnessing the best ideas, and making sure they are located here in the United States. And sparking this network of innovation across the country it will create jobs and will keep America in the manufacturing game."

        Also covering the story are the Los Angeles Times (3/10, Hennessey), McClatchy (3/10, Clark), the National Journal (3/10, Quinton, Subscription Publication), The Hill (3/9, Sands), the Milwaukee Business Journal (3/9, Rovito, Subscription Publication) and other media sources.

Overcoming the manufacturing skills gap

An interesting post from Derek Singleton on the Software Advice website discussing the three ways to overcome the skills gap, which he suggests are:

• strengthen educational partnerships
• invest in in-house training
• energise the workforce of tomorrow

Much of what he discusses is valid to the contemporary manufacturing environment in Australia. One element that is crucial in Australia is the role of government. We need to secure and maintain government support for the contribution of manufacturing, particularly SMEs, to the economy.

Click here to read the full article

No-waste circular economy is good business – ask China

From The New Scientist...

Don't throw out that broken toaster: it's key to our prosperity. Redesigning the economy so that all waste is reused or recycled would be good for business, according to two new reports.

For centuries the global economy has been linear. Companies extract resources from the environment, turn them into products and sell them to consumers – who eventually throw them out. As a result we are burning through Earth's natural resources and wasting useful materials.

But it doesn't have to be that way, says Felix Preston of think tank Chatham House in London. Instead, we could have a circular economy in which waste from one product is used in another.

Click here to read the full article.

Why would a rich man want a poor man's product?

Bigthink.com talks about the concept of reverse innovation - that is... creating value for many rather than value for money.

Vijay Govindarajan, Professor of International Business at the Tuck School of Business, defines it as innovation that starts in poor countries and brought to people in wealthy countries. He argues that poor countries have unique problems that inspire solutions usable throughout the world, regardless of economic status.

Reverse innovation, however, is not about making cheap products, says Govindarajan. "It's about giving value because poor people, their hard earned money, they want value they don't want cheap products." he said.

This means the onus is on innovators to find creative ways to drive down the cost of material and labor and add features that cater to the needs of the community. It's about doing more with less.

Click here to read the full article.

Manbulloo heats up export competitiveness

In 2010, only 44% of Manbulloo mangoes met the required standard for export to Japan, China and Korea.. In monetary terms, this meant a $20K-$30K loss for just one batch. By the end of the project with QMI Solutions, the plant was operating effectively – more than 80% of Export Premium mangoes met the requirements, with negligible losses due to heat damage.

Through the project we were able to save Manbulloo approximately $500K per year.

Click here to read the full article.