MEET KNOW GROW About SME: www.sme.org. The Society of Manufacturing - PDF document

9/16/2012 SME Toronto WWW.SMETORONTO.CA Nigel Southway SME Chair 2012 Take Back Manufacturing … to North America We will explain the TBM initiative and how we must all work together to revitalize our North American Manufacturing sectors and return them to the economic powerhouse they once were. The latest expert economic outlook is that localized manufacturing close to our consumer base can be much more competitive than the existing globalized manufacturing approach. This updated outlook is now resulting in decisions to Reshore products and to manufacture the next generation of products for the North American market in more localized manufacturing facilities with an integrated supply base. We will explain the local Canadian imperatives and opportunities to be gained from this new, strong local manufacturing sector approach. We will explain how it can provide an incubator for innovation and lead to a balanced economy by integrating our strong knowledge, service and existing manufacturing bases for maximum competitiveness and prosperity. But as industrialists, engineers and investors we must be ready for this resurgence of manufacturing in North America and provision the required knowledge, skills, capacity, technology, infrastructure and a strong implementation Roadmap to ensure its success. We will explain the TBM Roadmap developed to support this journey. 2 1

9/16/2012 WWW.SMETORONTO.CA MEET KNOW GROW About SME: www.sme.org. The Society of Manufacturing Engineers Premier source for manufacturing knowledge, education and networking. Connecting manufacturing practitioners together. Provide Tradeshow , Expo and network events. Reviews latest manufacturing technologies/processes/techniques/practices. SME world-wide supported network of chapters and technical communities. Many programs, events, magazines, publications, huge technical database and online training …. SME leader in manufacturing workforce Education/training/skill development. SME is a LEAN Business Certification Authority. WWW.SMETORONTO.CA $125 per Year Advancing Manufacturing in Ontario SME Technical Community Networks (8) Automated Manufacturing & Assembly Manufacturing Education & Research Identifies and pursues advancing Advances education and research in technologies and techniques in manufacturing, career and professional automation and assembly. development, and the manufacturing enterprise's need for a skilled workforce. Forming & Fabricating Plastics, Composites & Coatings Concentrates on key metal forming and Addresses the manufacturing processes of fabricating technologies. plastics, composites, and finishing and coatings technology. Industrial Laser Product & Process Design and Management Promotes laser technology in North Discusses, investigates and advances ideas America with high intensity by educating related to the design and management of the market and advancing the laser products and processes, as well as lean technology base. manufacturing concepts. Rapid Technologies & Additive Manufacturing Machining & Material Removal Concentrates on the technologies and Discusses, explores and advances ideas processes that help conceive, develop, test, related to cutting processes and improve and manufacture new products to machining systems. bring them to market faster and more cost effectively. 2

9/16/2012 NIGEL SOUTHWAY Owner of NEXUS CONSULTING SERVICE • 40 years Broad Business and Manufacturing Experience • Rough post-war Sea-Port (Bristol England) • Posh name/Specs…Stress/had to grow up tough • Product of the British Swinging 60’s !!!!! • British Engineering Apprentice…Aerospace/Electronics • BSc EEE C- Eng. in Engineering/MSc Management…. Manufacturing Engineer (1972) • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation • Change Agent/Educator/Coach/Advisor for LEAN business improvement • AUTHOR : CYCLE TIME MANAGEMENT… Fast Track to Productivity Improvement (1992) • Consulted many organizations in different industry sectors in many countries. • Have assisted many Global Sourcing programs and Joint Ventures • S ociety of M anufacturing E ngineers …2012 Chair Toronto Chapter • Globalized Manufacturing will remain a significant challenge!! • Strong Coach to Vision and Plan a Balanced Source Evolution ! NEXUS www.nigelsouthway The MODs MODS THE BEATLES Miniskirts THE WHO 3

9/16/2012 Education British Engineering Apprenticeship Training CONCORDE SST 002 April 1969 Mach 2 (1350 mph) 120 Passengers 4

9/16/2012 GLOBALIZED MANUFACTURING 2004 Onward The future of manufacturing in Ontario’s economy. ? IT’S A NORTH AMERICAN PROBLEM TBM PEO Nigel Southway SME Chair 2012 10 5

9/16/2012 Take Back Manufacturing TBM 25 Technical Associations 3 Trade associations 5 Educational policy makers 7 Media experts 3 Local government reps 5 Industry experts A Forum Dedicated to Restoring our Manufacturing Sectors. www.SME-TBM.org M 12 6

9/16/2012 TBM …Our Ultimate Goal Government, Education organizations Work together …. Industry leaders ROADMAP……..Recover our future industrial capability …… and therefore our future prosperity. 13 Presentations.... TAKE BACK MANUFACTURING CMTS Toronto Canada October 2011 FABTEC Toronto Canada March 2012 MMTS Montreal Canada May 2012 SME Annual Conference Cleveland USA June 2012 Many other Society and Association events in 2012 M 7

9/16/2012 http://www.canadianmanufacturing.com/fabrication/production/taking-back-manufacturing-51066 Professional Engineers Ontario http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf 8

9/16/2012 WHY? ..Take Back Manufacturing FOR OUR KIDS!! 17 This is NOT a game!!!... Our Kids will think we don't make things!!! ? ? ? ? 18 9

9/16/2012 GLOBALIZED MANUFACTURING Moved Off- shore….. For low cost labor rates 15% Reduction in Manufacturing Intensity in the last decade Un- controlled trade….. “herd behavior” Foods Fittings Equipment metalwork Appliances AUTO PARTS Electronics Furniture Plastic goods Footwear Textiles 20 10

9/16/2012 CANADA More than 500,000 jobs lost in last 6 years 2009 2010 2011 Only 25000 jobs added by Resource sector growth M 21 Ontario Economic Performance How has Globalized Manufacturing Affected our Province? M 11

9/16/2012 ONTARIO Reduction 13% GDP & 15% Employment Reduced intensity factor Offshore content has increased 12

9/16/2012 SERVICE JOBS???? (1Manf job = 3 Service jobs) 13

9/16/2012 Summary Large Out-of- Balance Trade Gap…. -15% of GDP. Unbalanced Revenue Flat to low growth … so recovery difficult. Business and Job loss….. no real plan to fix. Apathy Under- Capitalization Productivity loss Erosion of skills and knowledge We are now a “have - not” Province! M CANADA/ONTARIO Was A Balanced Economy Imports Exports Government Service Public Services Manufacturing Education Resources COSTS REVENUE 28 14

9/16/2012 Is CANADA/ONTARIO A Far Less Balanced Economy? less More less Less? Low value added Less? Less? 29 What happened? 30 15

9/16/2012 USA OUR BIG BROTHER -1% GDP Globalized Trade NORTH AMERICA Chased Emerging Markets Used liberalized Trade approach Removed barriers and controls Accepted Out of Balance Trade. Assumed More Service Sector Jobs???? (US GDP 2010=14000B) 31 USA -1% GDP Globalized Trade - 4% GDP Cumulative Deficit is now 50% 2010 GDP Significant government deficit and foreign borrowing 32 (US GDP 2010=14000B) 16

9/16/2012 -1% GDP CANADA (GDP=1350B) -2% GDP Canada/World -10% GDP Worse than USA numbers!!! 33 -1% GDP CANADA Prosperity INDEX Declining We have lost our BALANCE to remain Productive. 34 17

9/16/2012 HOW COULD THIS HAPPEN? 35 Take Back Manufacturing * Globalization?... (NOT working in its current form) * Many Economists believe free market liberalized trade cannot function with state managed emerging economies The Mature Economies through-out the world are floundering. Liberalized trade model for globalized manufacturing now being discredited The bazaar vision of a post industrialized service based economy now a myth Outcome ....Declining legacy of prosperity for the next Generation in Mature economies…(Double digit youth unemployment). 18

9/16/2012 So what’s next?...... We need a critical mass of awareness across our population to force action taking to recover our future. THE GAME CHANGER! 37 GLOBALIZED ? ? MANUFACTURING TBM Positional Paper on the Waste in a Global Supply Chain 19

9/16/2012 Waste of VERY Expensive Bunker Fuel PURE WASTE Much Non-Value-Adding Inventory 39 Waste of VERY Expensive Bunker Fuel VERY LARGE CARBON FOOTPRINT A single large container ship emits pollutants equivalent to 50 million cars. The low grade bunker fuel used by the worlds 90,000 cargo ships contains up to 2,000 times the amount of sulfur compared to diesel fuel used in automobiles. PURE WASTE The recent boom in globalized manufacturing makes container ships account for 90% of global trade by volume. Much Non-Value-Adding Inventory 40 20