Efforts to Block EPA's Greenhouse Gas Regulations Back in Play

ClimateWire (Schor) - Over the past two years, cap-and-trade advocates used the threat of U.S. EPA climate regulations as a key driver in the push for climate legislation on Capitol Hill. Now, Democratic leaders face the challenge of renewed bipartisan interest in handcuffing EPA before it takes action....Senate Majority Leader Harry Reid (D-Nev.) plans to allow a vote this year on a corresponding two-year EPA postponement proposed by Boucher's fellow coal-state Democrat, Sen. Jay Rockefeller of West Virginia. That decision was made to help dissuade senators from backing last month's broader plan to revoke EPA's "endangerment finding" on carbon emissions, according to a Senate Democratic aide (Greenwire, June 10).

EPA rejects challenge to climate rules
Politico (Samuelsohn) - The Environmental Protection Agency Thursday rejected an effort to keep it from regulating greenhouse gas emissions, saying that e-mails released in last fall’s “Climategate” scandal gave it no reason to reconsider the science of global warming. In a sternly written opinion, EPA Administrator Lisa Jackson said she didn’t agree with requests from the GOP attorneys general from Texas and Virginia, the U.S. Chamber of Commerce and other conservative groups that questioned the underlying science linking humans to global warming and also warned of the potential economic burdens from new climate rules.

Airbus, Boeing May Force Supplier Mergers to Reduce Costs

Bloomberg (Mostoe) - Airbus SAS and Boeing Co. may force mergers among component suppliers in the next 12 months as they seek to slash production and research expenses, according to aerospace executives and analysts at the Farnborough Air Show.

Consolidation will focus on producers of fuselage, tail and engine parts that are too small to bear the development costs Airbus and Boeing want to pass on, according to Paul Edwards, international head of aerospace & defense investment banking at Jefferies International. GKN Plc, Senior Plc and Fokker Aerospace say they’re on the lookout for opportunities.

Many companies that produce composite parts are former planemakers seeking to adapt to new realities, Edwards said. Because the fabric of an aircraft isn’t replaced in its lifetime, they miss out on maintenance and spares orders and should use mergers to expand into higher-value work, he said. 

House Democrats’ Upcoming "Made in American" Manufacturing Agenda

National Association of Manufacturers (Wood) - Speaker of the House Steny Hoyer (D-MD) joined other Democrats Thursday at a news conference to promote next week’s legislative emphasis on manufacturing, the “Make it in America” agenda. Rep. Hoyer issued a statement on next week’s agenda, and majority leader’s website now lists the bills that constitute it. Excerpt from the statement:

“Make it in America” is a new legislative initiative from House Democrats to increase American manufacturing and create new American jobs.  The American public strongly supports a renewed focus on American manufacturing. This effort builds on House Democrats’ actions since the start of the Great Recession to create jobs and lay the foundation for a strong economy.

“Make it in America” bills that have passed the House:

• U.S. Manufacturing Enhancement Act 
• Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act 

“Make it in America” bills that are scheduled to come to the House Floor the week of July 26th, 2010:

• National Manufacturing Strategy Act 
• Clean Energy Technology Manufacturing and Export Assistance Act
• End the Trade Deficit Act 

We thought it might be helpful to provide more context on the bills as well as the NAM’s position where applicable. On the already enacted legislation, then...

Supply Chain Risks, Backshoring Rise; Small Manufacturers Add Jobs, Large Manufacturers Cut

Mfg.com (AJ) - has conducted the latest MFGWatch survey of North American manufacturers (select this link for the complete survey results and a downloadable PDF). The survey focused on their activities in the second quarter of 2010, and on their expectations for the third quarter. Highlights of this most recent survey include a significant rise in the number of large North American manufacturers that have seen significant supply chain risks in the second quarter and a rise in the number of buyer manufacturers that are planning to investigate backshoring of production back from low-cost countries. Also of note, while larger manufacturers in the region have indicated they’ve shed jobs since April small supplier manufacturers say they’ve added jobs during the same period.

U.S. Automakers Back on Top

IndustryWeek (Katz) - Plant-floor and engineering quality improvements pay off for domestic OEMs...It was the first time in the 24-year history of the J.D. Power report that U.S. brands as a whole scored higher than foreign competitors, though Chrysler still lags near the bottom with 122 defects.

Some of the quality improvements come from the significant strides U.S. automakers have made in the area of lean manufacturing, says Ron Atkinson, past president and current fellow at the American Society for Quality in Milwaukee. Detroit automakers have been practicing lean for several years, but it appears that the companies' continuous-improvement efforts are finally beginning to mature, says Atkinson. The workforce has begun to accept that lean is beneficial and that it doesn't mean firing employees, he says. The waste reduction enabled by lean eventually leads to good quality. "If lean is done properly right from design to the customer receiving the product, you will have a quality product," Atkinson says.

Vital Signs of the Med Tech Industry

ThomasNet News (Leybovich) - While most sectors of the economy experienced a slowdown or decline during the recession, research shows that the medical technology industry fared better than most and continues to be a major contributor to U.S. economic health. In fact, the industry has emerged as one of the strongest drivers of the rebound. While challenges remain for the med tech field, technological and business advances paint a promising future.

The downturn took a sizable toll on many segments of the United States economy, with lingering effects that can be seen in the still-unstable employment market and sluggish revenue growth for a wide range of businesses. However, the medical technology industry has weathered the recession surprisingly well and will be able to continue its successes by developing new technologies to meet the nation's health needs.

Book Review: “The Responsibility Revolution: How the Next Generation of Businesses Will Win”

Environmental Defense Fund (Bennet) - In Jeffrey Hollender’s latest book, “The Responsibility Revolution: How the Next Generation of Businesses Will Win,” the co-founder and chairman of Seventh Generation lays out a compelling set of principles and practices for shaping environmental and social responsibility within an organization. Hollender offers sharp criticism of how the term, “corporate social responsibility” or “CSR” has become an abused catch-phrase for many companies, and he encourages the reader to go one step beyond the day-to-day operations of their business practices and to think seriously about the longer term innovations that will truly revolutionize their companies and the markets in which they operate.

Brookings: U.S. Metro Areas Need Exports Push

Wall Street Journal (Reddy) - The Obama administration wants to double U.S. exports in five years. But most of the nation’s metropolitan areas aren’t properly equipped to ramp up export sales, says a new Brookings Institution report.

...Like many other studies, the Brookings report to be released Monday says exports can be a key source of U.S. growth and job creation. And it concludes that the federal government needs to push harder on negotiations around exchange rates, trade agreements and enforcement of existing trade laws.

But it also offers recommendations specific to local and regional concerns: 1) Federal and state governments should give metro areas support on export promotion, innovation through research and development, freight planning and data-collection policies. 2) Metro leaders must improve their exporting abilities and learn from the few metro areas that actually developed and implemented successful export strategies.

The report quantifies for the first time the level of export production (in both goods and services) in the top 100 U.S. metro areas, along with profiles for each area showing key industry sectors for exports and growth rates.

Industries Find Surging Profits in Deeper Cuts

New York Times (Schwartz) - Many companies are focusing on cost-cutting to keep profits growing, but the benefits are mostly going to shareholders instead of the broader economy, as management conserves cash rather than bolstering hiring and production. Harley, for example, has announced plans to cut 1,400 to 1,600 more jobs by the end of next year. That is on top of 2,000 job cuts last year — more than a fifth of its work force.

In some ways, the ability to raise profits in the face of declining sales is a triumph of productivity that makes the United States more globally competitive. The problem is that companies are not investing those earnings, instead letting cash pile up to levels not reached in nearly half a century.  “As long as corporations are reinvesting, the economy can grow,” said Ethan Harris, chief economist at Bank of America Merrill Lynch. “But if they’re taking those profits and saving them, rather than buying new equipment, it hurts overall growth. The longer this goes on, the more you worry about income being diverted to a sector that’s not spending.”

“There’s no question that there is an income shift going on in the economy,” Mr. Harris added. “Companies are squeezing their labor costs to build profits.”

India Debuts $35 Tablet Computer

Manufacturing.Net (Kinetz, Associated Press) - It looks like an iPad, only it's 1/14th the cost: India has unveiled the prototype of a $35 basic touchscreen tablet aimed at students, which it hopes to bring into production by 2011.  If the government can find a manufacturer, the Linux operating system-based computer would be the latest in a string of "world's cheapest" innovations to hit the market out of India, which is home to the 100,000 rupee ($2,127) compact Nano car, the 749 rupees ($16) water purifier and the $2,000 open-heart surgery.

The tablet can be used for functions like word processing, web browsing and video-conferencing. It has a solar power option too -- important for India's energy-starved hinterlands -- though that add-on costs extra...Mamta Varma, a ministry spokeswoman, said falling hardware costs and intelligent design make the price tag plausible. The tablet doesn't have a hard disk, but instead uses a memory card, much like a mobile phone...Varma said several global manufacturers, including at least one from Taiwan, have shown interest in making the low-cost device, but no manufacturing or distribution deals have been finalized. She declined to name any of the companies...India plans to subsidize the cost of the tablet for its students, bringing the purchase price down to around $20.

Clean Energy 1.0: Moving Beyond Green to Create Sustainable Jobs and a Long-term Energy Strategy

SupplyChainBrain - So-called “green” initiatives aren’t a panacea but a step in the right direction, says Joseph A. Stanislaw, a senior advisor to Deloitte LLP and founder of the JA Stanislaw Group LLC. Such initiatives, he says, aren’t the “magic bullet” that will resolve the world’s energy concerns. But he doesn’t dismiss such initiatives. Rather, he feels they can provoke a necessary next phase of global development in energy and economic sectors.

In a recent paper, he focused on the three interconnected mandates driving clean-energy evolution in the United States: environmental protection, creation of sustainable jobs and enhanced national security. Read Paper

Gov Contractors Must Track Emissions or Risk Losing Contracts

Environmental Leader - Contractors for the federal government that do not track their greenhouse gas (GHG) emissions could risk losing their contracts, according to a report in the Federal Times about new rules by the General Services Administration (GSA).

The new rules are a part of the GSA’s response to an executive order by the Obama administration issued in October which directed federal agencies to find ways to reduce their GHG emissions. Potentially, the new rules could have far-reaching consequences through the entire economy, not just government contractors.

Weighing the Impact of the National Export Initiative

IMTI Insider - It’s been months since President Obama first announced his administration’s goal of doubling exports over the next five years. In this first four months of 2010, U.S. exports have grown 17% from the same period a year ago. Has his National Export Initiative made an impact?

Formally unveiled by Executive Order in March, the National Export Initiative (NEI) sets forth five administration objectives for doubling exports: improve advocacy on behalf of U.S. exporters, increase access to export financing, reinforce efforts to remove trade barriers, enforce trade rules, and international cooperation of policies leading to sustained and balanced economic growth. Earlier this month, the President released a progress report on the NEI to discuss what actions have been taken in each of these five categories and their effect on U.S. exporting.

House Approves Economic Development Legislation

IndustryWeek (Cable) - 'SECTORS' Act would provide grants for public-private partnerships to address training needs. The U.S. House of Representatives on July 19 approved bipartisan legislation that aims to help industries meet their skilled workforce needs by connecting public- and private-sector stakeholders in various industry clusters.

The “Strengthening Employment Clusters to Organize Regional Success” (“SECTORS”) Act, H.R. 1855, would set up a grant program through the Department of Labor to provide funding for partnerships between businesses, unions, educators and the public workforce system to coordinate training activities in “high-demand and emerging industries,” according to the House Education and Labor Committee. Eligible partnerships could receive up to $2.5 million in grants for the first three years and up to an additional $1.5 million thereafter.

Innovation Acceleration or Deceleration?

Blogging Innovation (Brands, Zbar) - In the pursuit of innovation, many “enlightened” companies try to follow what they believe are established morays and best practices. They install someone to manage new product development or innovation. They set up a litany of rules. And they select only the “best” ideas for further development. Then they wonder why innovation falls fallow.

A recent study [Manage Ideas Lightly, Manage Process Precisely] from The Nielsen Company. found that companies with acknowledged, successful innovation practices also have limited involvement from senior management. The teams are guided, but freed of stifling controls.

Hat Tip: Innovation Daily

Obama says U.S. will make 40% of advanced vehicle batteries in five years

autobloggreen (Blanco) - President Obama was in Michigan today to visit the construction site of LG Chem/CPI's new advanced battery plant in Holland. The federal government is involved in the plant through a $151.4-million grant, and the visit gave the President the chance to promote American manufacturing...As for where the U.S. will be going in the plug-in vehicle space, Obama said this country will make 40 percent of the world's automotive batteries in five years. Right now, the U.S. makes around two percent.

The feds have put money into nine battery manufacturing projects around the country. Most of the government's $2.4 billion help for advanced batteries went to Michigan. [Source: Lansing State Journal]

Tesla to build electric Toyota Rav4

CNNMoney (Valdes-Dapena) - Tesla Motors will produce electric Rav4 crossover SUVs for Toyota Motor Co. beginning in 2012, the two companies announced Friday. Toyota announced in May that it planned to invest $50 million in Tesla Motors upon the completion of the electric car maker's initial public offering, which took place on June 29.

A fleet of electric Rav4 prototypes will be delivered later this year, the two automakers said. The first prototype has already been built, the automaker said, and is undergoing evaluation. "Tesla seeks to learn and benefit from Toyota's engineering, manufacturing, and production expertise, while Toyota aims to learn from Tesla's EV technology, daring spirit, quick decision-making, and flexibility," the automakers said in the joint announcement.

A Manufacturing Strategy for Jobs and a Competitive America

National Association of Manufacturers - An open letter to Congress Speaker of the House Nancy Pelosi has declared that the U.S. House of Representatives will dedicate itself to a manufacturing plan, and the National Association of Manufacturers (NAM) welcomes the focus on this critical sector of the U.S. economy. We urge House members to use this opportunity for a substantive discussion of what it takes for manufacturers in the United States to succeed in the global marketplace. The NAM believes such deliberations will lead to one inevitable conclusion: The United States must develop and enact a comprehensive manufacturing strategy.

The hard truth is that manufacturers in the United States are too often at a disadvantage. Governments of other countries craft consistent policies to support their industries, and their officials stand by manufacturers as they compete around the world. In America, regulations, taxes and government mandates pile up one after another, making the country a less attractive place to do business.

In Europe, Asia and South America, policymakers think strategically about manufacturing. It is time the United States does the same.

Sustainable Manufacturing Initiative and Public-Private Dialogue

Department of Commerce - The U.S. Department of Commerce’s Forum on Industrial Water Use is a no-cost event that will focus on water supply and related quality issues affecting the U.S. manufacturing sector. Water quantity is a growing concern in the U.S., and companies across a range of industry sectors are raising questions about water scarcity now and in the future. These questions highlight the potential risk water scarcity poses to business continuity and the need to include the issue in company sustainability strategies.

Presenters at this forum will discuss the current state of industrial water use, including trends, challenges, and needs from the government, NGO and industry perspectives. Attendees will also be encouraged to share their views and experiences. Representatives from U.S. manufacturers, industry and trade associations, academia, non-governmental organizations and other federal and state government agencies are encouraged to attend.

Hearing on H.R. 4692, the National Manufacturing Strategy Act of 2010

U.S. House of Representatives - The Subcommittee on Commerce, Trade, and Consumer Protection held a hearing on H.R. 4692, the National Manufacturing Strategy Act of 2010, on Wednesday, July 14, 2010, in 2322 Rayburn House Office Building. Representative Lipinski introduced the bill on February 25, 2010.

The National Manufacturing Strategy Act of 2010 will require the President to undertake a deep and broad analysis of the nation’s manufacturing sector, including the international and economic environment, related technological developments, workforce elements, the impact of governmental policies, and other relevant issues affecting domestic manufacturers. Based on this analysis, the President will develop a national manufacturing strategy that identifies goals and recommendations for how the federal government, as well as state, local and private institutions, can best support the improvement and growth of our nation’s manufacturers and support their efforts to move into the markets of the future. This process will recur every four years, in order to assess the implementation of prior recommendations, review changes in markets, adjust for changes in technology and the economic climate, and respond to any other influences that may arise.

Andy Grove is Right about Manufacturing

National Center for Manufacturing Sciences (Jarman) - Recently Andy Grove wrote a great article about the danger of marginalizing the domestic manufacturing sector- How to Make an American Job Before It's Too Late: Andy Grove.  Grove, who co-founded Intel in 1968, has first hand experience on how difficult it is for companies to grow and create jobs.

"The underlying problem isn’t simply lower Asian costs. It’s our own misplaced faith in the power of startups to create U.S. jobs. Americans love the idea of the guys in the garage inventing something that changes the world. New York Times columnist Thomas L. Friedman recently encapsulated this view in a piece called “Start-Ups, Not Bailouts.” His argument: Let tired old companies that do commodity manufacturing die if they have to. If Washington really wants to create jobs, he wrote, it should back startups."

Andy is right and Thomas Friedman is wrong.  Do the math! Only about 2 in 10 start-ups succeed and most fail to employ more than five people in the first five years. A 20% business success rate only creates hundreds of jobs at best.  We would need tens of thousands of successful start-ups to make a substantial impact on our economy...

EU-US to collaborate on 'rare earths'

EurActiv - The US Congress and the European Parliament could hold parallel hearings and produce a joint communiqué on crucial raw materials as part of efforts to cooperate on areas of strategic interest, according to a senior Washington policymaker.

Congressman Bart Gordon, chairman of the Committee on Science & Technology of the House of Representatives, wants parliamentarians on both sides of the Atlantic to identify common ground on rare earth minerals, which are vital for green technologies. Gordon told the European Parliament's committee on industry, research and energy (ITRE) that China's near-monopoly on key raw materials is "very troubling" and could hamper advances in alternative energy and telecoms products.

Collaboration on rare earths could be a template for further cooperation in areas such as intellectual property, cyber security, clean water, energy security and carbon capture and storage (CCS), according to the congressman...He added that the chairpersons of other House of Representatives committees would be willing to look at how they can work more closely with MEPs, particularly in light of the new powers conferred on the European Parliament by the Lisbon Treaty.

Tech Transfer Project Opportunity

National Center for Manufacturing Sciences - NCMS seeks assistance for ongoing project related to web-based access to high performance computing tools. The optimal scope requires part time support (1-2 days / month) to review and document the generic steps followed to validate a computer model. These generic steps must then be embodied in an “application” that can be broadly used to validate computer models in simulations such that the information generated can confidently leveraged. The respondent should have a strong understanding of computer modeling, simulation and engineering, design space exploration methods, and particular knowledge of the use of complexity as a design metric. Understanding the complexity-based methods used by the Ontospace software tools as supplied by Ontonix LLC is required.

NCMS is looking for a partner that has the right technical capabilities, can work with experienced people in this field, and offer best overall process to accomplish the goals and objectives of this project. All interested parties must reply by July 24th.

Degrees of Perfection, Part 2

Green Manufacturing (Dornfeld) - The degree of perfection discussion in the last posting was centered on the term "buy to fly" ratio popular in the aerospace industry to indicate material utilization. I stated that we need to consider all the peripheral "stuff" associated with a product like electronics, appliances, clothing, food, etc. which usually comes packaged so we might want to consider a sort of "buy to fly" ratio for conventional products.

I am aiming in this series to get to a more engineering discussion of exergy (or available energy and useful work) to address this. But, I want to play with this  more fascinating buy to fly concept for manufacturing a bit more...

Design Engineering Salary and Career Insight

Design News (Greenfield) - To say 2009 was a difficult year for most economically and in terms of employment would be considered a "sky is blue" statement. That is, it would be difficult to make a more obvious statement. Despite the bleak realities encountered across the board in the past couple of years, results from Design News' most recent survey of subscribers clearly indicates that the scene for design engineers is improving. Granted, responses to the survey also indicated that plenty of work-related pain remains. The good news is that the bright spots were just as readily apparent.

Despite the not-insignificant number of engineers unhappy with their current job situation, only 10 percent said they are actively seeking other employment...The most telling statistic for any product, service or job lies in how many of those currently involved with it would recommend it to a close friend or relative. When it comes to design engineering, 70 percent of respondents said they would recommend their field of work to a son, daughter or friend. Click here for a link to the full survey. Click here to view more related charts and graphs.

Webcast: Achieving Total Employee Engagement in Energy Efficiency

Department of Energy - On Thursday, August 5, 2010, from 2:00-3:00p.m Eastern time, the Industrial Technologies Program (ITP) Thursday Webcasts for Industry series will feature Steven Fugarazzo, Manager, Facilities Engineering, Integrated Defense Systems (Raytheon Company) and Mary Alice Kurtz, Global Best Practices Lead, Worldwide Facilities Group (General Motors Company). Mr. Fugarazzo and Ms. Kurtz will deliver the Webcast "Achieving Total Employee Engagement in Energy Efficiency." The presentation will provide information on how to motivate employees to participate in energy efficiency, including:

Global Study Reveals the 'Key Pitfalls' of Outsourcing, Need for Better Risk Management

SupplyChainBrain - Results of a new global study reveal the concerns, effectiveness and best practices in risk management by organizations that outsource projects. Of the 95 percent of organizations that buy, provide or both buy and provide outsourced services and functions, fewer than half are able to effectively manage risk of outsourced projects. Managing product or service quality is the top outsourcing risk to organizations, identified by 70 percent of survey respondents. Survey respondents included contractor managers, subcontractor buyers, project managers, senior executives, and key decision makers in outsourcing from a wide range of industries and government in North and South America, UK/Europe, Asia/Pacific, the Middle East and India.

For more information, including an on-demand webinar, and a free copy of the full ESI Risky Business: Organizational Effectiveness at Managing Risk of Outsourced Projects report visit www.esi-intl.com/outsourcingsurvey. 

DOE Releases New Report on Economic Impact of Recovery Act Advanced Vehicle Investments

Department of Energy - [DOE] released a new report on the economic impact of Recovery Act investments in advanced batteries and vehicles. The report, "Recovery Act Investments: Transforming America's Transportation Sector," documents how Recovery Act funds are being matched with private capital to create new jobs, construct new plants, add new manufacturing lines, install electric vehicle charging stations across the country and help build the emerging domestic electric vehicle industry from the ground up. Read the report (PDF 341 KB). Among the key highlights of the report:

NGA Report Indicates Collaboration is Key for Readying the Workforce for a Global Economy

National Governors Association - A new report released today by the National Governors Association Center for Best Practices (NGA Center), A Sharper Focus on Technical Workers: How to Educate and Train for a Global Economy, provides a model for how states can work collaboratively with industry, community colleges and each other to provide opportunities for workers to build their skills and ensure America's future economic security and prosperity. The report outlines actions governors can take to shape a new future for job training in a way that will nurture the largest and fastest-growing industries, including:

Texas Named Best State For Business

USAToday - (Cohn, CNBC) reported, "They say everything in Texas is big, and that sure goes for its stature in business. With the biggest point total in the history of our study, Texas posts a big victory as America's Top State for Business 2010." In a CNBC study that was compiled with help by the Manufacturers, "Texas reclaims the top spot from last year's winner, Virginia, which slips to number two. Texas was last on top in 2008, and Virginia took the crown in the inaugural year of our study, 2007. That leaves Texas and Virginia dead even in the battle for bragging rights at two wins apiece. Rounding out the top five are number three Colorado, number four North Carolina, and number five Massachusetts." The study's categories include cost of doing business, workforce, quality of life, economy, transportation & infrastructure, technology & innovation, education, business friendliness, access to capital, and cost of living. Hat Tip: NAM

Survey: Cost Cutting The Top Challenge For Defense Execs

Wall Street Journal (Jarzemsky, Dow Jones Newspapers) - Cost-cutting pressure is the top challenge among aerospace and defense executives, and most firms are outsourcing engineering services to better manage costs, according to an Accenture PLC (ACN) survey. The consulting firm's survey of 31 executives based in Asia, Europe and the Americas comes as the sector has been contending with a U.S. Department of Defense that is shifting priorities and slowing spending growth. Lockheed Martin Corp. (LMT) Chairman and Chief Executive Bob Stevens recently said the industry faces "a new reality" as a decade-long military spending binge tapers off.

The study found 90% of executives saw cost-reduction pressures as one of their three biggest challenges, followed by supplier consolidation at 52% and increased competition from new players at 36%. Meanwhile, 61% of executives surveyed said they're buying engineering services to better manage costs. Respondents considered confidentiality, impact on quality and flexibility for fluctuating demand crucial when sourcing engineering consulting services. Read Accenture survey here.

Manufacturing technology consumption up 52.9% in 2010

AMTonline - May U.S. manufacturing technology consumption totaled $178.34 million, according to AMTDA, the American Machine Tool Distributors’ Association and AMT - The Association For Manufacturing Technology.  This total, as reported by companies participating in the USMTC program, was down 22.9% from April but up 58.6% from the total of $112.42 million reported for May 2009. With a year-to-date total of $966.63 million, 2010 is up 52.9% compared with 2009. These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program. 

GAO to White House: Do More on R&D

GovInfoSecurity (Chabrow) - The Government Accountability Office is taking the White House to task for not demonstrating sufficient leadership in shepherding cybersecurity research and development. In a 36-page report issued Tuesday, the GAO said the White House Office of Science and Technology Policy must do a better job in setting a prioritized national cybersecurity R&D agenda, providing stronger leadership and establishing ways for the public and private sectors to share key R&D information.

U.S. R&D Companies Employed 27 Million Workers Worldwide in 2008

National Science Foundation - U.S. R&D companies--companies located in the United States that performed or funded research and development (R&D) domestically or in their overseas locations--employed 27.1 million workers worldwide in 2008, according to a new National Science Foundation report.

The figures are the first employment statistics from the new Business R&D and Innovation Survey (BRDIS), developed jointly by NSF and the U.S. Census Bureau. Earlier this year, this same survey yielded information for the first time about worldwide sales and monetary amounts spent on R&D by U.S.-based companies. Data from that report can be found in an NSF press release and in an InfoBrief published in May.

Five reasons why China will rule tech

Computer World (Thibodeau) - China's focus on science and technology is relentless, and it's occurring at all levels of its society. Its labor pool is becoming increasingly sophisticated, its leadership is focused on innovation, and the country is adopting policies designed to pressure U.S. firms to transfer their technology. The trend is causing increasing worry in Washington, but there are five reasons why China may yet succeed in its goal to achieve world dominance in technology...

Lightning Versus Lightning Bugs

Evolving Excellence (Waddell) - The formula for success is to identify value as the customer defines it, and focus your efforts on enhancing that value, while eliminating efforts and expenses on anything that does not add to that vale. Straightforward enough, and the challenge is really in defining value. Whether you do so through your own lens, however, or whether you can actually see how value looks from the customer's lens is - to steal a phrase from Mark Twain - the difference between lightning and a lightning bug.

Here we have a group of folks in New Zealand who understand the basic principle very well: "Mr Agius said that 'lean manufacturing' had a simple set of concepts. It identifies the fact that 'customers will not pay for the mistakes or activities that doesn’t make their product more complete, but only for the value of the product or the service they receive. The impact on this thinking is huge on the manufacturing process. … It made people define value of the product from the customer’s point of view, not from the internal manufacturing point of view.'"

I have never been a believer in innovation as the core strategy for manufacturers, but when basic innovation in the industry whacks you on the side of the head - a sea change is occurring in how value can be delivered in a radically less wasteful manner - you have to pay attention.

VA/VE - Value Analysis and Value Engineering - may be old fashioned ideas but the fact is that they are as valid now as they ever were.  Lean is all about optimizing the value proposition, and they are essential tools for making that happen.  You have to see things from the customer's eyes, however, or neither lean nor VA can save you from yourselves.

Obama Encourages Clean Energy Tax Credit

Manufacture This  (Eckert) - President Obama urged Congress to pass a $5 billion dollar clean energy manufacturing tax credit today to spur job growth. According to Reuters:

“He [President Obama] estimated that a the $5 billion expansion would generate nearly 40,000 jobs, and the $12 billion or more in private sector investment it is expected to trigger could create up to 90,000 more jobs.”

Read more here.

A Global Language for Packaging and Sustainability

Green Biz - More than 30 companies are testing out a packaging sustainability measurement system that one group hopes becomes a worldwide standard.  The system was developed through the Consumer Goods Forum's Global Packaging Project (GPP), and includes a list of 52 indicators (and how to measure them) like weight, recycling rates, virgin content and shelf life. The basics of the system and common packaging principles are explained in the GPP's first report, "A Global Language for Packaging and Sustainability," which was developed with input from more than 80 manufacturers, retailers, trade associations and packaging industry stakeholders.

The indicators are divided into three main sections: Environmental (material waste, recycling/composting/reuse rates, recycled or renewable content), economic (total cost of packaging, packaged product wastage) and social (packaged product shelf life, product safety, responsible workplace practices).

EU President to Push 'Sustainable Materials' Initiative

EurActiv - The Belgian EU Presidency wants to clean up industrial processes in Europe by promoting a "cradle-to-cradle" approach to resource management in the manufacturing sector, EurActiv has learned.  The study, obtained by EurActiv, advocates "a fully integrated way of addressing materials use" in manufacturing in order to limit resource depletion and air, soil and water pollution.

The objective is to move from waste policies to "materials policies," which cover the full life-cycle of products and manufactured goods, from the extraction of raw materials to product design, manufacture, consumption and disposal...In total, the study has identified twelve areas where the SMM approach could be applied, including closed loop industry systems for residues (of construction waste for example), biomaterials, cradle-to-cradle or IT systems that track the logistics supply chain. "IT can give enterprises tools to effectively manage supply chains and to monitor the product and material flow up- and downstream, in turn allowing for material savings," the study says.

A Glimpse into the Future of Engineering

ThomasNet News (Leybovich) - Advances in technology, materials and business practices are likely to transform the way we engineer and produce goods. Here we look at some of the developments in science and manufacturing poised to shape the future. A rising trend in production is the democratization of the tools used in design and assembly. As more people gain access to manufacturing resources through individual or home-based systems, such as 3-D printing or "micro-factories," a new wave of customized products and designs may soon enter the global marketplace.

The broadening of production capabilities is further helped by a shift in the global supply chain, which is rapidly becoming "scale-free, able to serve the small as well as the large, the garage inventor and Sony," thanks to a surge in inexpensive but powerful prototyping tools...The long-term result is that production will increasingly shift toward smaller businesses and entrepreneurs. The concept of the "digital factory," through which engineers can upload designs and gain online access to rapid fabrication machines to produce them, is sure to play a major role in the future of mass customization.

Firm harnessing Detroit's expertise in manufacturing

Detroit News (Trop) - Local workers who once welded engine racks for the auto industry may soon be stamping sheet metal for Boeing airplane roofs or NASA rocket platforms. That's the plan under way at former auto supplier W Industries, which is capitalizing on the dormant automotive base here to buy cheap facilities, win manufacturing contracts and employ precision workers..."Our goal is to refurbish and retool former automotive facilities and retain talent with the latest technology," said chief executive Edward Walker. Hat Tip: AMD

Farnborough - UK’s best showcase for advanced manufacturing

The Manufacturer - Despite the economic downturn, this year’s Farnborough International Airshow has seen a sell out of exhibition space and promises to be yet again a showcase for the UK’s leading advanced manufacturing sectors of aerospace, defence, space and security – with the Airbus A400M and Boeing 787 Dreamliner both taking centre place. Together these four sectors employ over half a million people in 9,000 companies, contributing £60bn (~$90bn) a year to the British economy.

For the first time in the history of the show, all the UK aerospace regional bodies will be located in Hall 1. This demonstrates the strength of the supply chain in the UK and the diversity of the UK’s SME community which is the foundation of the UK’s position as number one in Europe and only second to the USA in aerospace and defence. Every single large aerospace or defence equipment contract is underpinned by the hard work of hundreds of SMEs.

A New Detroit Rises in India's South

Wall Street Journal - In an article titled "A New Detroit Rises in India's South," The Wall Street Journal reports that Chennai is becoming an automotive hub in India, as Ford, Hyundai, Renault SA, Daimler AG, BMW AG, and Nissan Motor Co. have all opened plants in the area. When all of these factories are operating at capacity, the city will manufacturer almost 1.5 million vehicles per year. Furthermore, subsidiaries are looking to Chennai as a destination to open factories, with France's Michelin SA and Saint-Gobain SA are going to open large factories in the city. Hyundai and Ford have invested $2 billion and $1 billion respectively into the city, enjoying the benefits of cheap factory labor in addition to cheap engineers who design and program the robots that craft the vehicles. The Journal notes that the city is also building new malls and apartments to keep up with the growing middle class of automotive workers. The Wall Street Journal also offers a slideshow of manufacturing-related pictures of Chennai on its website. Via NAM

State Adoptions of Common Standards Steam Ahead

Education Week (Gewertz) - Nearly half the states have adopted a new set of common academic standards, barely a month after their final release and, in most cases, with little opposition. As of today, 23 states have decided to replace their mathematics and English/language arts standards with the common set. Another flurry of adoptions is expected by Aug. 2, since the $4 billion federal Race to the Top contest gives more points to states that meet that deadline.

Though many challenges remain in crafting curricula and tests that embody the aims of the new standards, the mounting adoption numbers represent a major landscape change in a short time. The NGA and the CCSSO announced the initiative in April 2009. They released the first public draft of the standards in March and the final version June 2. ("Final Version of Common Standards Unveiled.")

Measuring Innovation A New Perspective

OECD - Measuring Innovation: A New Perspective presents new measures and new ways of looking at traditional indicators. It builds on 50 years of indicator development by OECD and goes beyond R&D to describe the broader context in which innovation occurs. It includes some experimental indicators that provide insight into new areas of policy interest. It highlights measurement gaps and proposes directions for advancing the measurement agenda.

This publication begins by describing innovation today. It looks at what is driving innovation in firms, and how the scientific and research landscape is being reconfigured by convergence, interdisciplinarity and the new geography of innovation hot spots. It presents broader measures of innovation, for example using new indicators of investment in intangible assets and trademarks.

Innovation Working with a National Lab

IMTI Radical Innovation Webinar Series (Thursday, July 15th at 2:00 EST) - Partnerships — It’s their name, but it also represents the driving philosophy and commitment of the Oak Ridge National Laboratory (ORNL) who has an aggressive program designed to provide technology-based solutions to organizations ranging from startups to Fortune 100 companies to academic institutions. Underlying this philosophy is their belief that strong partnerships with U.S. industry is the best way to share Technological know-how. As Director of the Technology Transfer Division, [Dr. Michael Paulus] and his team fulfill this mission by licensing ORNL intellectual property to industrial partners, negotiating research collaborations (CRADAs) and non-federal Work for Others agreements, and negotiating and managing User Agreements which make ORNL’s eleven user facilities available to external partners. Regardless of the activity, they are committed to outcomes that create win-win opportunities for everyone.

In this presentation, Mike will talk about ORNL and how companies can use technology developed at the lab as an avenue for innovation. Examples will be discussed of how collaborations have helped others achieve breakthroughs with technology.

President Obama Provides Progress Report on National Export Initiative, Announces Members of the President’s Export Council

White House - Today [July 7], President Barack Obama will provide a progress report on the National Export Initiative (NEI), which shows that the President’s goal of doubling exports and supporting several million new jobs over five years is on track, and that exports in the first four months of 2010 grew almost 17 percent from the same period last year...The full Progress Report on the National Export Initiative can be viewed HERE.

The President will also announce that he has appointed members of the President’s Export Council, which includes a group of business and labor leaders who will offer advice on how to promote U.S. exports, jobs, and growth.  They include:

California Drafts New Green Chemistry Regulations

Sustainable Life Media (Miner) - The California Department of Toxic Substances released a draft of new green chemistry regulation this week, which creates a new statewide process for evaluating the toxicity of chemicals used in consumer products and requires manufacturers to find safe alternatives to those chemicals used in their products.

The aim of the regulation, according to the department (DTSC) is to create a systematic, science-based process to evaluate chemicals of concern in products, as well as stimulate innovation in California's product development sector. The new law would prioritize toxic chemicals and products, require manufacturers to seek safer alternatives to toxic chemicals in their products, and create tough governmental responses for lack of compliance.

For more information about the impending legislation and how it may affect your company operations, visit the DTSC website here. Comments on the new regulations are due by July 15th, and can be sent to GCRegs@dtsc.ca.gov

Supply Chain for iPhone Highlights Costs in China

New York Times (Barboza) - Last month, while enthusiastic consumers were playing with their new Apple iPhone 4, researchers in Silicon Valley were engaged in something more serious. They cracked open the phone’s shell and started analyzing the new model’s components, trying to unmask the identity of Apple’s main suppliers. These “teardown reports” provide a glimpse into a company’s manufacturing.

What the latest analysis shows is that the smallest part of Apple’s costs are here in Shenzhen, where assembly-line workers snap together things like microchips from Germany and Korea, American-made chips that pull in Wi-Fi or cellphone signals, a touch-screen module from Taiwan and more than 100 other components. But what it does not reveal is that manufacturing in China is about to get far more expensive. Soaring labor costs caused by worker shortages and unrest, a strengthening Chinese currency that makes exports more expensive, and inflation and rising housing costs are all threatening to sharply increase the cost of making devices like notebook computers, digital cameras and smartphones...

Degrees of Perfection

Green Manufacturing (Dornfeld) - I know I said in the last posting that this time we'll look at how some industries are doing and guidelines/strategies they are using to move up on the "sustain-o-meter." Well, let's start this process by another type of self examination - dealing with the "degree of perfection" for manufacturing.

The term "degree of perfection" is a ratio of useful products to inputs. The most recent discussion I read that referred to this was a paper by a clever person I've referred to before, Tim Gutowski at MIT, and others, in Env. Sci. Technology on "Thermodynamic Analysis of Resources used in Manufacturing Processes."

One of the more novel uses is in the aerospace industry where it is called "buy to fly ratio." Boeing, for example,  has a long history of tracking this value. Due to the peculiar requirements of aircraft components (demanding precision, unique shapes, incredible strength and fatigue requirements, etc.) many structural components (from wing spars to ribs) and many other parts, like landing gear, are machined out of large blocks of material. This results in most of the material going to waste. Buy to fly ratios in the 30's are common. This means, only a bit over 3% of the material purchased actually ends up on the plane. This waste for machined components is usually in the form of chips - which are recycled of course but discarded never-the-less.