51�Թ���

With 19 global locations, ALOM Technologies Corporation specializes in technology-driven supply chains for Fortune 100 companies. ALOM President and CEO Hannah Kain recently sat down with the Manufacturing Leadership Council to share her thoughts on the state of the industry and the keys to successful leadership.

Taking on challenges: Over the long term, Kain sees workforce development—finding and training the next generation of manufacturing leaders—as a significant priority. But in the short term, she cites COVID-19- and trade-related supply chain disruptions as the most pressing issues.

• “Shifts in demand have increased the need for agility in manufacturing, yet U.S. infrastructure, from ports and roads to cybersecurity, is under extreme strain, and geopolitics have made goods movement more complex,” she said.

Meeting the moment: During the COVID-19 pandemic, ALOM manufactured millions of COVID-19 test kits for the medical sector while ensuring its own workers remained safe, Kain said. The company also met the past year’s challenges by investing in digitization to improve its productivity.

Finding opportunities: Kain cites a range of opportunities for manufacturers of the future, from fast-improving technologies to the availability of new manufacturing talent—if manufacturers can find and harness it.

The importance of culture: Kain believes in what she calls “servant leadership”—seeing yourself as a supporter of stakeholders like customers, employees and suppliers and working to put their needs first. She strives to create a culture of collaboration within her own company.

The last word: “In the end, culture is the company, and the company is the culture,” said Kain. “Our culture is inclusive, collaborative, improvement-oriented and quality-focused, with a strong sense of ownership. Supporting that culture may be the most important thing I do.”

Manufacturing leaders proved they were good in a crisis in 2020—creating new products, speeding up the production of essential materials and instituting safety policies in record time. And as they accelerated their production lines, they also focused on increasing their adoption of Manufacturing 4.0 technologies.

Now, the Manufacturing Leadership Council—the division of the 51�Թ��� focused on manufacturing’s digital transformation—is exploring what leaders learned during the pandemic about the importance of digitization. The MLC’s recent survey of manufacturing leaders gives us a window into their thoughts, expectations and plans for the future—after a year like no other. Below are some key insights.��

A big impact: A full 54.8% of respondents said COVID-19 increased management’s focus on digital transformation. The changes they cited included new procedures for remote working, new disaster preparedness plans and increased integration across teams and structures.

And here’s another important finding: these changes seem permanent.

• 68.2% said new disaster preparedness plans and strategies will be permanent additions to their operations.
• 57.3% said more collaborative organizational structures will stick around.
• 62.2% expect to keep allowing both leaders and employees to work remotely.

The digital workforce: With baby boomers retiring, companies are looking for new manufacturing leaders and seeking to fill a range of jobs, even as the digital evolution of the industry requires new and different skills. Where are these workers coming from?

• 45.5% of respondents said they would come from internal sources—a drop of nearly 5% from last year’s survey. Leaders felt somewhat more in favor of finding talent elsewhere in the manufacturing industry.
• One-third of respondents said they would look within the industry for talent, while only 13.2% expected to find candidates from other industries.

But these results may soon change, as manufacturers are still figuring out what digital skills they need. Over time, leaders will likely develop different ideas about where to find workers—and how to train them.

• As the survey shows, manufacturers have a big opportunity to ramp up their digital training: only 22.3% of respondents this year said they have formal M4.0 training programs for workers and leadership.

Organizational shift: The emerging digital focus means many manufacturers are shifting toward a flatter, more collaborative working style. The numbers tell the tale:

• Nearly 48.5% of respondents identified understanding how the company should be organized as a result of new technologies as a key challenge—an increase of 23% from last year.

The MLC says: As MLC Executive Director and 51�Թ��� Vice President David Brousell put it, “Many manufacturing executives acknowledge that the equivalent of several years’ change has been compressed into the past year. Now, manufacturing leadership has the responsibility to see these changes through. If they are successful in doing so, they will take the industry to a new and better level, raising the bar for all and redefining the rules of competition.”

The 51�Թ��� and The Manufacturing Institute unveiled their Creators Wanted experience last week in Dallas, previewing it for the 51�Թ���’s Executive Committee as well as local business leaders, workforce development officials and the media. Visitors got an exclusive look at this “mobile manufacturing experience” that will soon embark on a tour around the country, showing Americans what modern manufacturing is all about.

As 51�Թ��� President and CEO Jay Timmons said, “Creators Wanted will help a new generation of emerging and displaced workers see themselves in a modern manufacturing career, while also adding to the industry’s talent pipeline by engaging veterans, women and communities of color, all critical to expanding the workforce of tomorrow.”

What they saw: Below, ExxonMobil Senior Vice President Neil Chapman, Celanese Corporation Chairman, CEO and President Lori Ryerkerk, Toyota Executive Vice President of Product Support and Chief Quality Officer Chris Nielsen and Trane Technologies Chairman and CEO (and 51�Թ��� Board chair and co-chair of the Creators Wanted campaign) Mike Lamach get a first look at this interactive, hands-on experience.

An online choose-your-own-adventure version of the mobile experience will be rolling out this summer to reach students, parental figures, teachers and emerging workers nationwide. Here, MI Executive Director Carolyn Lee previews the “Keys to Success” room, where participants will race to solve riddles that will help reinforce key attributes of manufacturing careers, such as teamwork, problem solving, imagination and communication.

Lee also gave a presentation on Creators Wanted to the visitors. As she said in a statement, “By 2030, manufacturers need to fill more than 4 million jobs—according to research from the MI and Deloitte—but without initiatives like Creators Wanted, more than half of those jobs could go unfilled. This mobile experience will excite audiences across the country, sparking an interest in modern manufacturing so that we can connect emerging and displaced workers with resources that educate and empower.”

The tour allows you to experience the creativity of manufacturing firsthand and up close. In the gamified experience, participants will work as a team to solve a series of immersive challenges, requiring their full attention to think and compete. As they move through each obstacle, teams will learn more about modern manufacturing careers,��the skills required to be successful and how people and technology work together.

We can’t reveal all the surprises, but doesn’t he look excited?

In fact, all of the 51�Թ���’s Executive Committee members who toured the exhibition were impressed and amazed by what they saw. Here are some of their reactions:

• “I will admit, I didn’t quite appreciate the opportunity for our industry until I saw the experience in person,” said Chapman. “Seeing is believing in the capacity of this tool to excite the next generation, parents, guardians and teachers about modern manufacturing careers.”
• “It’s clear that Creators Wanted has exactly the message and tools to strengthen our industry’s recruitment for talent. At a time when so many young people seek careers where creativity is valued and prized, we have a chance with this campaign to really drive the best and brightest into our talent pipeline,” said Nielsen.
• “The mobile experience is astounding; it’s unlike anything we’ve done as an industry to reach the next generation and engage emerging and displaced workers. But what makes this campaign worthwhile is that the mobile experience is just one part of a comprehensive plan to create interest and then create opportunity by providing resources to help people launch or grow a career in manufacturing,” said Lamach.

Join in: Last but not least, you too can find out what all the excitement is about. Check out for information about the campaign.

This year, hurricane season—which officially began June 1—arrived early, as it has every year . But while 2021’s inaugural Subtropical Storm Ana did not make landfall in the U.S. in late May, meteorologists are expecting the remainder of the year to be a for hurricanes—and as manufacturers know all too well, that can mean trouble is ahead.

In addition to endangering lives, a strong hurricane can cause severe damage to individual companies and the U.S. economy as a whole. In fact, the Congressional Budget Office in 2019 that expected annual losses from hurricane and storm-related damage came to $54 billion.

Always be prepared: Better planning for these yearly occurrences can help manufacturers mitigate the costs associated with storm-caused devastation—and go a long way toward keeping employees safe, too.

Offering resources: In partnership with disaster-relief organization SBP and product-philanthropy nonprofit Good360, the 51�Թ���’s Emergency Response Committee works year-round to provide members with access to disaster-preparedness resources and training in advance of natural disasters, and helps manufacturers activate to help their communities when one strikes

For example, in a recent webinar sponsored by the 51�Թ���’s ERC, Amanda Gallina, SBP community engagement manager, and Matt Woodruff, vice president of public and government affairs for Texas-based tank barge operator Kirby Corporation, laid out some suggestions for hurricane preparation.

For businesses: Woodruff provided some commonsense advice for employers:

• Ensure new employees understand��the hurricane plan well ahead of hurricane season.
• Create a checklist��of duties that must be performed, starting with the first day of hurricane season.
• Set up remote work sites��for affected areas and employees.
• Provide support��to the families of employees who live in affected areas to ensure their safety.

For individuals: Gallina offered advice for all individuals facing a hurricane:

• Collect hazard and emergency information��from local and national sources like news and weather apps, NOAA Weather Radio and the Red Cross Emergency app.
• Make a household emergency plan,��which should include stockpiling supplies, establishing communication methods and emergency contact numbers and creating an evacuation and sheltering plan.
• Identify and protect important documents��by storing them in a fire- and water-proof box, while giving extra copies to a trusted attorney or friend. You can also use secure online cloud storage as another backup.
• Get the right insurance��by identifying any gaps in coverage and asking your agent the right questions.

The last word: “We are grateful for the partnership with Good360 and SBP, which allows us to better support 51�Թ��� members in times of need, but most importantly, provide valuable resources and thought leadership to build resiliency in advance of a disaster,” said 51�Թ��� Chief Operating Officer Todd Boppell. “Advance planning is critical for successful businesses, and the thoughtful approach demonstrated by our partners resonates with the 51�Թ���’s vision to support manufacturing operations.”

To contact the 51�Թ���’s emergency response committee or to be added to its mailing list, email [email protected].

The 51�Թ��� is joining with Meritas, a global legal alliance, to provide tailored, high-quality and affordable legal assistance to manufacturers across the country.

About the team: Meritas offers a network of 186 full-service, world-class law firms that have been vetted and approved by the organization. The firms are equipped to assist clients with issues from contracts and employment to environmental compliance and intellectual property.

How it works: If any members are facing legal issues, or simply want ongoing legal support for routine challenges, they can contact the 51�Թ���’s Manufacturers’ Compliance Institute, which will work with Meritas to identify exactly the right kind of legal professionals who can help. Meritas firms will then provide 30 minutes of free time to connect with the 51�Թ��� member to figure out if a more formal engagement makes sense. 51�Թ��� members can even connect with firms in other countries to work through issues that might arise abroad.

• Vetted firms: Meritas’ approved firms have all undergone a stringent vetting process to ensure they meet high standards. Instead of having to search for a reputable lawyer on their own, 51�Թ��� members can trust that we will connect them with high-quality professionals who can meet their needs.
• Local knowledge: The Meritas network includes more than 7,500 lawyers serving 253 markets in the United States and around the world. This partnership will help manufacturers find assistance and representation from firms that have legal expertise in the relevant region, ensuring they have the best possible information as they move forward.
• Affordable rates: Meritas firms provide high-value services at competitive rates for small businesses and large companies alike. For small and medium-sized manufacturers, Meritas makes legal counsel accessible, helping companies avoid common pitfalls and overcome complex challenges. For larger companies, it delivers strong support at a lower price point than more expensive firms, helping to ensure competitiveness and a strong bottom line.

Why it matters: Finding high-quality, affordable legal counsel with relevant knowledge is extremely challenging. The 51�Թ���’s partnership with Meritas makes that process simpler, saving you time and money and strengthening your operations.

The last word: “The 51�Թ���’s partnership with Meritas gives manufacturers around the country a clear line into an outstanding network of legal assistance,” said 51�Թ��� Vice President of Legal and Deputy General Counsel Patrick Hedren. “Whether you’re a small firm trying to avoid common legal challenges, a large company trying get more out of your legal team or an expanding manufacturer trying to navigate a new state or a new country, this partnership provides indispensable value and essential support.”

As India struggles with COVID-19, manufacturers across the United States have stepped up to offer assistance and material aid.

The situation: India is grappling with a dangerous and extremely transmissible form of COVID-19, even as the country has struggled to inoculate large swaths of its population. As a result, hospitals across the country are straining to fulfill critical needs, and the situation has become dire.

The support: Many manufacturers have announced that they will provide critical assistance to response efforts in India, including the following:

• donated four mobile oxygen trucks, working with the Indian Red Cross to get them to Delhi.
• donated $2.7 million to provide urgent medical resources and health care infrastructure, working with United Way Mumbai.
• sent $70 million worth of COVID-19 treatment medicines directly to India/Indian government to help fight the disease.
• donated 400,000 tablets of key medicine used to treat severe COVID-19 patients—and made new voluntary agreements to ramp up local manufacturing and distribution in India.
• donated $1 million to India to fight COVID-19.
• is donating critical supplies to India and has donated $4 million to help nonprofit organizations reach underserved communities get COVID-19 vaccines.
• is importing 1 million Low Dead Space (LDS) syringes, which minimize the amount of drug left in the syringes after an injection.
• created a $10 million emergency assistance package for India to support the country’s response to the recent surge in COVID-19 cases.
• is donating $100,000 to the U.S. India Friendship Alliance to help the organization provide 250 oxygen concentrators to India’s hospitals and medical facilities.

In related news, the United States will donate 500 million doses of Pfizer’s COVID-19 vaccine to the world, according to (subscription). The donations will be distributed this year and over the first half of next year to 92 lower-income countries and the African Union, via the COVAX vaccine program spearheaded by the World Health Organization and the Global Alliance for Vaccines and Immunization. The White House has also pledged additional direct aid to India, which is detailed .

• The 51�Թ��� has these efforts to accelerate vaccinations in India and the rest of the world, calling them a “powerful, effective way to improve vaccine access,” while preserving critical IP protections that made that innovation possible.

What we’re saying: “Manufacturers are deeply committed to the fight against COVID-19 in our communities, including here in the United States, in India and around the world,” said 51�Թ��� Director of International Business Policy Ryan Ong. “The 51�Թ��� is working directly with members and with partners like Good360 and SBP to provide critical relief where it is mostly badly needed and to help us all respond and recover from COVID-19 as we work toward a better post-pandemic world.”

Hugo Hinojosa loved being in the military. He served 22 years in the U.S. Army, with time in eight different duty stations. His service gave him the opportunity to get a degree, travel the world, see different places and forge close-knit friendships that he says will last a lifetime. When it came time for him to transition out of the military, he was open to ideas—and during a career skills program briefing at Fort Hood’s Copeland Center, a presentation from captured his attention.

Endless opportunities: After a career spent moving around the globe, Hinojosa was hoping to stay in his home state of Texas for the long term. During the presentation from a representative of Heroes MAKE America, he was struck by the breadth of roles the manufacturing industry offered.

• “When they came out and told me about opportunities and other jobs in the surrounding area, I said, wow, this might be for me,” said Hinojosa. “With the certifications the program offered, you could work anywhere in the industry. I wasn’t limiting myself to a certain, specific job. I could work anywhere, you name it. The opportunities are endless.”

A unique experience: Hinojosa began his time in the program in the midst of the COVID-19 pandemic, which meant that some elements had to be adjusted to fit the logistical reality. But participants still received plenty of engagement: classroom lessons were shifted to a virtual format, and students met with program managers two at a time for a few hours every week. While it required a fair amount of self-direction and motivation, Hinojosa said that the program supported him as he learned at his own pace.

A powerful network: Hinojosa found the networking aspect of the program to be especially valuable once he began looking for work.

• “Every time we would have potential employers in team meetings, I would search them on LinkedIn and connect with them,” said Hinojosa. “I said, I saw you today during class, I’d like to connect. I started building my own network from there.”

The right stuff: The work paid off. Hinojosa received several offers and ended up getting hired by WestRock Company through meetings that were set up by Heroes MAKE America. He began as a member of the company’s management trainee program and was quickly recruited to work as a business partner in the human resources department. He sees his new career as a natural extension of his time as a service member.

• “Everywhere I go, I’m a steward of the Army,” said Hinojosa. “I’m working in a place where the values are in line with what I was brought up with in the military—integrity, respect, accountability and excellence.”

Today, Hinojosa encourages other transitioning service members to see themselves in a manufacturing career—and most importantly, to recognize their own skills.

The last word: “Don’t sell yourself short,” said Hinojosa. “Believe in the skills the military has given you. You’ve been trained and given skills that will pay dividends out here in the manufacturing industry. And the work ethic that’s instilled from day one is going to show.”

Are you grappling with the fast pace of competition in manufacturing? Are you working to keep up with the massive amount of disruption brought on by artificial intelligence, advanced robotics and digital breakthroughs? Are you racing to create new competitive advantages by using the power of Manufacturing 4.0—the next wave of industrial progress based on digitization?

The 51�Թ��� has you covered with Rethink: The Manufacturing Leadership Council Summit, on June 22–24.

What it is: Rethink is the premier conference on Manufacturing 4.0 for industry leaders as they continue to navigate disruption. Hosted by the Manufacturing Leadership Council—a member-driven, global business leadership network dedicated to senior executives in the manufacturing industry—the summit offers participants strategies and solutions that are designed to advance their operations and improve their competitiveness.

Why it matters: The COVID-19 pandemic supercharged some of the changes that were already occurring in the manufacturing industry. Across the past year, businesses have seen an even greater need for flexibility, agility and speed in operations, and many manufacturers have accelerated their adoption of digital technologies to achieve these goals.

What it includes: The summit will offer a wide range of informative conversations with next-generation leaders and experts. A few elements include the following:

• Case study sessions showcasing real-world examples of advanced manufacturing technologies in action—from efforts to transform legacy facilities into smart factories, to the role of analytics in digital transformation, to the growth of robotics in manufacturing and logistics. By hearing from manufacturing leaders who have taken on these challenges, executives can learn best practices and gain new ideas for their own companies.

• “Think tank” sessions that will allow participants to ask questions and share ideas about advanced manufacturing technology. These conversations will include discussions of topics like quantum computing, manufacturing execution systems, augmented and virtual reality, blockchain, edge computing and sustainability.

The big difference: Most importantly, Rethink gives participants the chance to learn from other manufacturing executives and experts. Many of the industry’s most forward-thinking leaders will collaborate at this summit to make manufacturing better and stronger.

Check it out: Click for more information and to register for the summit.

Across the country, manufacturers are deeply involved in efforts to improve their climate stewardship and take action on a wide range of environmental, social and governance (ESG) issues. Manufacturers are leaders in everything from combatting climate change to in the workforce—and in ensuring that investors understand everything that goes into this critical work.

Recently, the Securities and Exchange Commission began considering a disclosure framework that could require companies to provide standardized information on their climate and ESG commitments. The agency has opened a comment period to receive public input on what the framework could include, and the 51�Թ��� is making sure that manufacturers’ voices are heard.

51�Թ��� Senior Director of Tax and Domestic Economic Policy Charles Crain recently spoke to us about this issue, describing manufacturers’ priorities and concerns. Here’s what you need to know.

The challenge: Many companies already voluntarily disclose a great deal of information about their climate and ESG efforts—both because they are proud of the work they do, and because they believe it’s important for investors to have all the information available, Crain says. However, a one-size-fits-all SEC mandate could create more problems than it solves by imposing costly or overly broad requirements that do not provide useful information to shareholders.

Our move: This week, the 51�Թ��� the manufacturing industry’s perspective for the SEC, including a list of principles that should guide the agency’s decision-making. Those principles include the following:

• Materiality: The 51�Թ��� believes that companies should be required to disclose information only if it is material to their business—that is, company-specific, relevant, useful information that would change a reasonable investor’s view of a company.
• Flexibility: Different items are material for different companies. Disclosures shouldn’t be one-size-fits all, but should instead include the kind of company-specific information that will reflect the diversity of risks and opportunities that businesses face and thus be useful to investors.
• Clarity and comparability: The current lack of standardization can create costs and uncertainty for both companies and investors. Within a flexible, materiality-driven framework, the SEC can enhance the clarity and comparability of climate and ESG information disclosed by businesses.
• Limiting company costs and liability: New SEC mandates shouldn’t overburden companies with high costs or a strict liability burden—both of which could result in limited or boilerplate reporting that isn’t useful to investors. Many of companies’ climate and ESG goals are aspirational and rely on evolving reporting methodologies, and the SEC shouldn’t disincentivize aggressive goal-setting on these issues.
• Appropriate scope and reasonable timelines: The data the SEC is describing isn’t just sitting on the shelf. In order to disclose climate and ESG information under a new framework, many companies could have to build out data collection infrastructure, go deep into the supply chain, and get information through standardized methodologies that may not currently exist. This process will be time-consuming and difficult, and the SEC will need to tailor any requirements accordingly and give companies time to adapt.
• Don’t reinvent the wheel: Many companies are already disclosing climate and ESG information based on existing methodologies, and there are plenty of third-party standards for reporting this data. Rather than starting from scratch, any SEC framework should align with existing practices that many companies are already using.

Next steps: The SEC will consider the 51�Թ���’s recommendations, along with other feedback, as it works toward a potential rule proposal—and the 51�Թ��� will continue to engage with the SEC throughout the process.

Klaussner Home Furnishings has made three increases in its workers’ wages over the past 10 months, while also adding benefits. Yet, the company’s ability to invest in workers and add much-needed equipment may be in danger if Congress proceeds with proposed tax hikes, according to President and CEO Terry McNew. These increases could do real harm to manufacturers at a time when the economy is starting to recover from the pandemic.

Benefits for workers: McNew, who has led Klaussner for about a year and a half, explains that he’s working hard to take the company from the 19th century to the 21st century—“skipping over the 20th,” he says—by eliminating the use of piecework and ensuring that all current workers have full 40-hour workweeks.

• That transition included the wage increases mentioned above, as well as an expansion of benefits, such as a reduction in health insurance deductibles and the addition of mental and behavioral health benefits.
• “If taxes go up, I have fewer choices,” says McNew. “I’ll have even more limited resources” for raises and other benefits.

Facility expansion: McNew also credits tax reform with helping Klaussner improve its facilities and buy much-needed equipment.

• Late last year, the company installed new roofs, and it is currently in the market for new sewing machines. Its new CIO is looking to invest in enterprise resource planning and materials requirements planning software, which will cost about $5 million.
• McNew says these plans were made possible by a tax provision called full expensing, which allows companies to deduct the full cost of capital expenditures in a single year.

The economic context: McNew points out that manufacturers are dealing with a number of difficulties right now, including higher materials and shipping costs, which are amplifying their worries about potential tax changes.

• In light of all these factors, McNew says, “I told my executive staff we are not getting raises this year, but instead giving raises to employees.”

The last word: 51�Թ��� President and CEO Jay Timmons said, “As we emerge from the economic catastrophe caused by COVID-19, American businesses are at a pivotal point in our nation’s history. Manufacturers like Klaussner are helping to lead the economic recovery in the wake of the pandemic. But increasing the tax burden on companies in America would mean fewer American jobs, lower wages and a smaller economy.”