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Exhibiting know-how and innovation, U.S. manufacturers are adding to their payrolls and economic growth across the nation. We have identified 19 states where manufacturing is leading the way...
Manufacturing is the backbone of America. It’s in our blood. Americans know how to build — it’s how we forged a nation, won two world wars, put men on the moon, and shaped the “new economy.” American workers are among the most productive in the world. With new advances in technology, lean manufacturing techniques, and best practices, American manufacturing is becoming cost-competitive with offshore locations, resulting in more companies bringing their operations back to the United States (or near-shoring to Mexico).
According to the Institute of Supply Management (ISM), American manufacturing continues to improve. The ISM recently reported that manufacturing activity expanded in January 2013 for the second consecutive month and that the overall national economy grew for the 44th consecutive month. The Purchasing Managers Index (PMI) registered 53.1 percent, an increase of 2.9 percent from December’s value of 50.2 percent. All five PMI component indices registered above 50 percent in January — including employment, one of the most critical indicators.
The PMI employment index jumped from 51.9 percent to 54.0 percent in January 2013. This is especially significant because manufacturing companies learned how to be incredibly efficient during the Great Recession, doing more with far less — this means manufacturers are reaching their limits and must hire more to keep up with new orders.
So, which are the top manufacturing states that are leading us out of recession? We compiled this list from the Bureau of Labor Statistics’ (BLS) November 2012 rankings for the top 10 states in total manufacturing jobs and the top 10 for manufacturing’s share of non-farm employment, as well as the National Association of Manufacturers’ top 10 states for manufacturing’s share of GSP (2011).
This simple approach identified 19 states that are leading the U.S. in manufacturing prosperity: Alabama, Arkansas, California, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Texas, and Wisconsin. Shared traits include a diversified manufacturing base, positive business climate, flexible incentive packages, outstanding work force development programs, and highly proactive local and state governments that support manufacturing. Below are manufacturing snapshots of each state that show how they are strengthening their industries and contributing to our national economic recovery.
Key manufacturing sectors in Alabama are aerospace/defense, automotive, agricultural products/food distribution, metals, forestry products, chemicals, biosciences, and information technology. Much of the state’s manufacturing output is exported — in fact, 2012 was a record-breaking year with $19.5 billion in exported goods, an increase of almost 10 percent over 2011. “This shows that Alabama’s economy continues to improve and we are making gains in exporting to countries all over the world,” says Governor Robert Bentley. “The products made in Alabama are second to none, and we have a world-class work force.”
The high quality of Alabama workers reflects the state’s investment in work force training. Alabama Industrial Development Training (AIDT) services are free for employers or trainees. The Alabama Technology Network (ATN) of the Alabama Community College System also works closely with companies to provide the skill sets they need.
Alabama’s automotive manufacturing industry, with three major automotive assembly plants, three auto engine plants, and nearly 400 auto suppliers, is a big contributor to the state’s overall economy. Alabama’s top automakers (Mercedes-Benz, Honda, and Hyundai) together produced more than 880,000 vehicles in 2012, a 17 percent increase from 2011 and a new state record. As a result, Mercedes is expanding its assembly lines and hiring about 1,000 more employees to manufacture the C-Class sedan. Honda is expanding to produce the Acura MDX, and Hyundai has added a third shift that it expects to run all year.
“It is very encouraging to see our automakers reinvest in their operations by updating their equipment and expanding the capacity of their production lines,” comments Secretary of the Alabama Department of Commerce Greg Canfield.
Arkansas continues to diversify its manufacturing base by adding advanced manufacturing jobs. Top sectors are food and beverage, paper, transportation, machinery, wood products, chemicals, plastics and rubber, and apparel.
Arkansas’ highly skilled work force and favorable business climate, combined with its research and education opportunities, make the state an attractive location for manufacturing. Arkansas’ workers continue to impress employers with their work ethic, skills, productivity, and low turnover rates. Arkansas’ labor force is projected to grow by 4 percent by 2015.
The Arkansas Economic Development Commission (AEDC), working with other state agencies, offers a Career Readiness Certificate for potential employees, which documents their skills for prospective employers.
This productive manufacturing environment continues to attract big projects, such as Big River Steel’s announcement it will build a $1 billion steel mill in Mississippi County that will employ about 500 workers. Big River will produce steel for the automotive, oil and gas, and electrical energy industries. The company cited the high-quality work force, geographic location, well-developed transportation infrastructure, availability of reliable electrical power, and helpfulness of state and local government as the major reasons it selected Arkansas.
“A project of this scope will be a catalyst for job creation, investment, and economic development beyond this one facility,” says Governor Mike Beebe. “Building Big River Steel will mean up to 2,000 construction jobs and it will help us recruit more supplier businesses and steel consumers to Northeast Arkansas.”
Mark Crawford is a full-time freelance writer in Madison, Wisconsin, who specializes in business writing. He is also the author of five books.
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Kraton Performance Polymers, Inc., a leading global innovator and producer of styrenic block copolymers and other engineered polymers, opened its new Kraton Innovation Center in Belpre, Ohio. The modular design of the new pilot plant allows room for future expansion.
Combined, the new pilot facility and the existing Belpre manufacturing plant employ nearly 600 employees and contractors, making Kraton one of the largest employers in the Mid-Ohio Valley area.
According to the firm, this pilot facility allows Kraton to manufacture a wide range of SBC-type materials in quantities ranging from 25 kilograms to 50 metric tons. The facility and its high-technology process equipment broadens the company's abilities in polymeric chemistry by leveraging unique, less traditional monomers and building blocks to meet customer needs and create innovative applications.
“This new ability to generate developmental polymer and processing technologies also opens the door to applications and industries where traditional SBCs were unable to participate,” officials noted.
The plant is located within the company's flagship commercial manufacturing facility in Belpre. This allows the new facility to capitalize on the existing plant's technical skills, talents and infrastructure. “Its fit-for-purpose volume scale-up bridges the gap between laboratory and full-scale production of products within the development cycle, enhancing the company's ability to deliver developmental polymers in customizable quantities in record time. It will reduce reliance upon Kraton's commercial manufacturing plants for test runs, resulting in fewer type changes and improved utilization of its manufacturing facilities,” company officials explained.
"By making this additional investment in innovation, we are accelerating our time to market and improving our supply chain capabilities, which enables us to meet the needs of our global customers. This new facility has garnered significant interest on the part of those customers and our development partners around the world," said Kevin Fogarty, President/CEO. "It also underscores our long-term commitment to the Mid-Ohio Valley and its economic growth."
HID Global, a worldwide leader in secure identity solutions, opened its new $35 million World Headquarters and North American Operations Center in Austin, Texas. The campus features 250,000 square feet of manufacturing, office and warehouse space on 22 acres in North Austin’s Tech Ridge area.
The firm said it initiated its first phase of operations at the state-of-the-art facility ahead of schedule and expects it to be fully operational by the third quarter of 2015. Almost 400 employees are expected to work at the new facility by 2015. The new center will include the consolidation of the company’s corporate functions, manufacturing, assembly and test operations, distribution, and sales operations.
“Our North American operations consolidation, as well as the relocation of our Corporate Headquarters to Austin, Texas, is an exciting development for HID Global,” said Denis Hébert, president and CEO of HID Global. “Texas is an ideal location for our new state-of-the-art, sustainable facility, and will provide us an excellent platform for scaling our global operations to support the expansion of our leadership position in secure identity solutions.”
HID Global’s new World Headquarters will be the company’s largest facility worldwide, and has been designed to support future expansion. It will also house offices for regional management, customer service, engineering, purchasing, and quality functions. Hiring is underway, with more than 300 new positions to be filled over the next two years.
“HID’s decision to move their worldwide headquarters to Texas is proof positive that our focus on low taxes, smart regulations, fair courts and a skilled workforce helps create jobs and strengthen our economy,” Texas Gov. Rick Perry said. “I’m pleased HID has chosen to call Texas home, and look forward to their continued success in the Lone Star State.”