[PDF] - How Can Canada .. Take Back Manufacturing Or how to reverse 30 PDF Document

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TBM Take Back Manufacturing

WWW.SME-TBM.ORG How Can Canada…..Take Back Manufacturing

The Canadian economy is in reset mode with the world-wide price drop in oil and declining international demand devastating the export

rientated resource sectors.

This has forced a related correction in the previously resource escalated Canadian dollar back to and maybe even below reasonable price parity. We are also experiencing instability in our saturated service and retail sectors. This duress has promoted some political attention back to the long term hollowed out manufacturing sectors as a possible area of growth and support for a now fragile Canadian economy. Many in manufacturing are perplexed that anyone can truly believe that a manufacturing sector that has been under-funded by indifferent policies and out-priced with an over inflated exchange rate for decades can just bounce back and do much to assist in the very short term. In this presentation we review the history and reasons for the decline of our industries, and how our manufacturing sector leadership, our technical professionals, the general public, and our political leaders can respond to these new economic conditions, and what success factors will be necessary to Take Back Manufacturing.

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

How Can Canada….. Take Back Manufacturing

Nigel Southway

TBM Advocate & Past Chair

Society Manufacturing Engineers

Or how to reverse 30 years of poor global management

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NIGEL SOUTHWAY

40+ years Broad Business and Manufacturing Experience
British Engineering Apprentice…Aerospace/Electronics (1966)
BSc EEE C-Eng. in Engineering/MSc Management…. (Bristol)
Manufacturing Engineer (1972)
MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s
Engineer / Manager / Director / VP Operations / General Manager
Consultant/Change Agent/Educator/Coach for LEAN business improvement
AUTHOR : CYCLE TIME MANAGEMENT… Fast Track to Productivity Improvement
Consulted many organizations in different industry sectors in many countries.
Assisting many Global Sourcing programs and Joint Ventures (2004 Onward)
Society of Manufacturing Engineers …2012/2013 Chair Toronto Chapter
Advocate for the Take Back Manufacturing and Reshoring Forum
Sheridan lecturer on Advanced Manufacturing and Sustainable Supply Chains

www.nigelsouthway

NEXUS

Owner of NEXUS CONSULTING SERVICE (1992) INDUSTRY WEEK

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TBM

Take Back Manufacturing

www.SME-TBM.org

A Forum Dedicated to Restoring

ur Manufacturing Sectors.

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

Since Mid 2011

TBM

Take Back Manufacturing

www.SME-TBM.org A Forum Dedicated to Restoring

ur Manufacturing Sectors.

25 Technical Associations 3 Trade associations 5 Educational policy makers 7 Media experts 3 Local government reps 5 Industry experts

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

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8 M

TBM

CMTS Toronto Canada October 2011 SME Annual Conference Cleveland USA June 2012 Many Society and Association events in 2012/13

Presentations.... TAKE BACK MANUFACTURING M

Raising the Awareness

TBM

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http://www.canadianmanufacturing.com/fabrication/production/taking-back-manufacturing-51066 http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf

Professional Engineers Ontario

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12 13

BNN BUSINESS NEWS NETWORK

What can Canada learn from German Manufacturing?

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TBM…Our Ultimate Goal

14

Work together ….

Government, Education organizations Industry leaders ROADMAP……..Recover our future industrial capability …… and therefore our future prosperity.

TBMTake Back Manufacturing

WWW.SME-TBM.ORG

TBM…Our Ultimate Goal

15

TBMTake Back Manufacturing

WWW.SME-TBM.ORG

SORRY!

We ask for an open mind as we deliver this important message and perspective.

Honest and Factual Provocative concepts Perhaps test and conflict with your current beliefs Mind bending, Scary, Frustrating, Inspiring.

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WHY?..Take Back Manufacturing

FOR OUR KIDS!!

16

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

17

Our Kids will Believe we don't make things!!!

This is NOT a game!!!...

? ? ? ?

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GLOBALIZED MANUFACTURING

? ?

We Question its future Sustainability

Moved Off-shore…..

19

Textiles

Furniture Footwear Electronics AUTO PARTS Appliances Plastic goods Equipment metalwork Fittings Foods

Un-controlled trade….. “herd behavior”

For low cost labor rates

15% Reduction in Manufacturing Intensity in the last decade

TBM

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20 2009 2010 2011

CANADA

More than 500,000 jobs lost in 6 year period (300,000 Ontario) 25% Reduction (Quantity and Quality)

TBM

Lost 50% MFG SME’s in Ontario 10% Productivity Loss due to reduced Capacity utilization

Due to this….we have a skill shortage!!! (NOT a labor shortage)

1,000,000 Young Canadians Now un or under employed!!

Redeployed to part time and lower paying service jobs Source: Statistics Canada Lost 10,500 Plants in Ontario

What happened?

21

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1% GDP

22

OUR BIG BROTHER

(US GDP 2010=14000B)

USA

1% GDP

23

OUR BIG BROTHER

(US GDP 2010=14000B)

USA

Adopted Free Market Ideology… Chased Emerging Markets

Deregulated National Economic Controls Used liberalized Trade approach Allowed free flow of capital Removed trade barriers and controls Encouraged Out of Balance Trade. Assumed More Service Sector Jobs???? Assumed local exports would grow/balance

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4% GDP

Globalized Trade Cumulative Trade Deficit is now 50% GDP

1% GDP

24 (US GDP 2010=14000B)

USA

4% GDP

Cumulative Trade Deficit is now 50% 2010 GDP

1% GDP

25 (US GDP 2010=14000B) Significant government deficit and foreign borrowing High Unemployment / Growing wealth inequality / Prosperity decline Loss of National Sovereignty and balance between Capital and Labor

USA

HUGE ONGOING TRADE IMBALANCE

Some experts call this “Wealth dilution”

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26 Wealth transfer gradient

Global Trade Balance Imbalance

27

Globalized Trade has outpaced Wealth Creation Wealth Dilution

Winners Emerging Economies Bankers Traders Global Corporations Global Capitalists Losers Mature Economies National governments Mature Economy Middle class Citizen level investors Youth early in careers The planet! Significant failure to correctly manage trade balance

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How did it happen?

Corporate “brow-beating”

“If you don’t Go Offshore you wont be on the bidders list!” (Fortune 500 Corporations to local NA Suppliers) Corp Productivity + cash stash Middle Class 50% of the mid –sized manufacturers (100 to 500 employees ) have disappeared since 2000

????

Economic Doctrine

Share holders

Moving toward Wealth Inequality? Trade Unions Cheap Goods 29

Global Change is taking place at an Exponential Rate!!

Globalization is Enabling Change (Positively and Negatively)… Religious/Ethnic pressures Higher Expectations to share wealth Cultural Mobility National boundaries (Much Migration) Technology (Supply Chains) Market and Commerce (unbalanced) Economics (unplanned) Politics Age of Disruption Ecological Sustainability Issues Age of Over-Supply

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30 3 times Increase in 6 decades 31 2B 4B 6B 1950 2000 1960 1970 1980 1990 2010 2015 2020 The Global Workforce 300% Increase People Demand For Labor In all forms Capacity “Over-Supply” Productivity via Technology + Unequal Consumer/Output balance Added 3 Billion to the workforce

[25% un or under employed]

3 4 7 9 10 11 12 21 13 23 22 20 19 15 13 8 UNDER + UN UNDER % % Global un and under Employment

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(GDP=1350B)

10% GDP

CANADA

1% GDP
2% GDP

Worse than USA numbers!!!

Canada/World 32

1% GDP

33 Declining

Prosperity INDEX

CANADA

We have lost our BALANCE to remain Productive.

It is not that we are less productive.. but more about having idle capacity! Emerging Market Resource Demand Dependent

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34

OUR ECONOMY NEEDS MANUFACTURING!

It is VERY obvious that we need a Balanced Economy

(Resources/Services/Manufacturing)

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

So what’s next?

35

We need a critical mass of awareness by every-one to force action taking to recover our future……

THE GAME CHANGERS!

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36

Global Change is taking place at an Exponential Rate!!

Globalization is Enabling Change (Positively and Negatively)… Religious/Ethnic pressures Higher Expectations to share wealth Cultural Mobility National boundaries (Much Migration) Technology (Supply Chains) Market and Commerce (unbalanced) Economics (unplanned) Politics Age of Disruption Ecological Sustainability Issues Age of Over-Supply 37

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38

Global Warming

???? Climate Change ????

Air Pollution

39

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WASTE

40

Water…. A “Thirsty” Resource!!

A Car takes 39,090 gallons of water to make Plus 2,000 gallons for the Tires Pair of Jeans takes around 1,800 gallons of water to grow enough cotton to produce just one pair. Cotton T-Shirt… 400 gallons of water to grow the cotton required for an ordinary cotton shirt. Single Board of Lumber takes 5.4 gallons of water to grow enough wood for one lumber board. Barrel of Beer…(32 gallons of booze), takes 1,500 gallons of water. To-Go Latte…takes 53 gallons to make every latte, grow coffee, sugar, plastic lid, the sleeve and the cup itself. . . Individual Bottled Water This irony shouldn't be lost on anyone: it takes 1.85 gallons of water to manufacture the plastic for the 500ml bottle of water.

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42

North Americans Water Consumption

1.5 Olympic swimming pools per year per person 24,000 pints of beer a week per person 13.5 showers a day per person

The Planet Earth has a relatively new virus

This Destructive virus is multiplying at an exponential rate
Infiltrates all ecosystems and habitats
Destroys forests and attacks all forms of life
Increases pollution levels in rivers and oceans
Has a negative impact on the air quality
May be responsible for adverse weather changes
The virus is “mutating” to further enhance the danger
Its called …Man!

Hopefully it will mutate into a benign state before it destroys the whole planet! .

Its called …Man! It likes to live now ………and pay later! Hopefully it will mutate into a benign state before it destroys the whole planet!

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SUSTAINABILITY

44

Or how to become Lean and Green

On a Global level

Best achieved via National Self Determination

GLOBALIZED MANUFACTURING

? ?

TBM Positional Paper on the Waste in a Global Supply Chain

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46

Waste of VERY Expensive Bunker Fuel Much Non-Value-Adding Inventory

PURE WASTE 47

Waste of VERY Expensive Bunker Fuel

This low grade bunker fuel is used by the worlds 90,000 cargo ships A single large container ship emits pollutants equivalent to 50 million cars. Total container ship pollution is 6 times that of the TOTAL cars in world 2,000 times the amount of sulfur compared to diesel automobiles. Container ships account for 90% of global trade by volume. Our Economies will be jeopardized by this global warming enabler

VERY LARGE CARBON FOOTPRINT

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INSANITY

48

GLOBALIZED MANUFACTURING

? ?

START THINKING LEAN & GREEN

?

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GLOBAL SUPPLY CHAIN

CHINA/ASIA Manufacturing recycle loop Canada USA 9000 km Each way MIN 6 weeks Transit Inventory MIN $100/M cube to transport MIN Many Transactions / Handling…… Much Waste of Natural Resource’s 50 HIGH WASTE NOT LEAN NOT GREEN Dig Resources Ship resources Dock resources Use Resources Ship products Dock products Ship Store ship Sell Process

LEAN Review of Trading Models

SCRAP $

NOW

When Interest rates are “normalized” we will have a “High cost of Inventory trap”

Cost Drivers The end of cheap China

What do soaring Chinese wages mean for global manufacturing?

Mar 10th 2012 | HONG KONG AND SHENZHEN | from the print edition

CHINA … Low Cost Country?

WEALTH TRANSFER???

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GLOBAL SUPPLY CHAIN

CHINA/ASIA Manufacturing recycle loop Canada USA 9000 km Each way MIN 6 weeks Transit Inventory MIN $100/M cube to transport MIN Many Transactions / Handling…… Much Waste of Natural Resource’s 52 HIGH WASTE NOT LEAN NOT GREEN Dig Resources Ship resources Dock resources Use Resources Ship products Dock products Ship Store ship Sell Process

LEAN Review of Trading Models

SCRAP $

NOW

When Interest rates are “normalized” we will have a “High cost of Inventory trap”

Cost Drivers CHINA/ASIA Canada USA 53

LEAN Review of Trading Models

LEAN & GREEN

Intrinsically less wasteful Short Supply Chains FAST RESPONSE to customers

Local Manufacturing Strong Incubator for INNOVATION Balanced Trade 1000 km Each way MAX 1 week Transit Inventory Max $10/M cube to transport Max Few Transactions Minimal Inventory/Interest rate exposure

BALANCED ECONOMY

FUTURE Localized TRADE Bloc

Other Trade Blocs Other Trade Blocs Other Trade Blocs

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Canada USA 54

LEAN Review of Trading Models

LEAN & GREEN

Intrinsically less wasteful Short Supply Chains FAST RESPONSE to customers

Local Manufacturing Strong Incubator for INNOVATION Balanced Trade 1000 km Each way MAX 1 week Transit Inventory Max $10/M cube to transport Max Few Transactions Minimal Inventory/Interest rate exposure

BALANCED ECONOMY

Localized TRADE Bloc

HEALTHCARE EDUCATION TRAINING

?

GLOBALIZED MANUFACTURING

?

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COMBINED OPERATIONS

Take Back Manufacturing

TBM

CIM: What factors are driving manufacturers' decisions to bring production back to Canada? Southway: It's a North American-wide realization that

ff shoring is getting more expensive with increased

transportation expense due to oil costs, as well as labor price escalation in emerging economies. Many corporations and large consulting groups also recognize that there are many hidden costs and issues in supporting a remote supply chain. In general, local manufacturing is now considered to be no more expensive than offshore

production. The landed cost tipping point in some sectors

and commodities is projected to be reached by 2015. Local manufacturing also offers more stability and the ability to innovate at home more effectively. And, being closer to the customer has added inventory and flexibility advantages. CIM: How can industry members communicate the importance and value of manufacturing to the general population? Southway: We have had three decades of people thinking manufacturing is bad news. Manufacturing has been viewed as dirty and dangerous, risky and unstable employment, and so forth. We have a lot of work to do to change this negative image. Just talking about TBM, telling the real story, and showing what we do will help. If we look at the long term, today's 12- to 15-year-olds will lead the way. When they reach 22 years old, we will have a thriving localized manufacturing economy. It certainly won't be based on cheap oil or energy, but it will be very lean and very green. Things will be made in local manufacturing hubs or clusters. Factories will be very high-tech and their

peration will demand high levels of skill and education.

All this needs vision and a can-do attitude. Not having both

f these is our biggest risk.

Take Back Manufacturing

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We have “Run the Numbers”

58

USED BALANCED SOURCING MODELS

Every Engineer should understand business costing and economics!!!

LEAN Review of Trading Models

TBM

59 Material DIRECT OVER HEAD OH

Balanced Source Landed Cost Comparison

LOCAL Material OFFSHORE Transportation Other Duty Inventory costs Support costs COPQ Material OFFSHORE 2015 DIRECT OH DIRECT 10% 20% 30% + + + + + + 2012 2011 Tipping Point RESHORE

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LOCAL BEST OFF-SHORE WORST OFF-SHORE

?

Boston Consulting Group (BCG)……

Predict BALANCED LANDED COST parity by 2015 in most sectors

The REAL Costs to Manufacture OFF-SHORE will be projected to rise. Due to: Exchange, tariffs, Labor wage inflation, Product Quality Cost escalation Transportation costs, Customer location Inventory costs, Ease of doing business, Many Other hidden drivers…. OFFSHORE LOCAL

BALANCED SOURCING

Validated Cost Trade-off Models … LOCAL versus Off-shore

LOCAL BEST OFF-SHORE WORST OFF-SHORE

?

Boston Consulting Group (BCG)……

Predict BALANCED LANDED COST parity by 2015 in most sectors

The REAL Costs to Manufacture OFF-SHORE will be projected to rise. Due to: Exchange, tariffs, Labor wage inflation, Product Quality Cost escalation Transportation costs, Customer location Inventory costs, Ease of doing business, Plus…Many Other hidden drivers…. OFFSHORE LOCAL

BALANCED SOURCING

Validated Cost Trade-off Models … LOCAL versus Off-shore

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Reshoring Tipping point

Product $ labor versus Cubic Volume USA Economy

$ Lab Product Cubic Volume Offshore Onshore Tipping Point 2012 I Phone Fridge

Reshoring Tipping point

Product $ labor versus Cubic Volume USA Economy

$ Lab Product Cubic Volume Offshore Onshore Tipping Point 2015 I Phone Fridge

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Many Factors will determine Reshoring

(Resource & Product Transfers)

65 Low Cost Country Global Trade

Localized Trade

Oil /transport price increases Emerging Economy Price Inflation Public and industrial Pressure Interest Rate Normalization Re-evaluated Balanced Sourcing Models Corporate taxation adjust Complex Supply Chain Costs Import/Export Re-balance Re-shoring! Local Re-Capitalization! Re-Hiring! / Re-training! Government budget Re-balance Right sized Loonie!????? The Globalization Purist!

Our Inability to Understand And Take Action!!!

M Close proximity to customer IP protection issues Ease of doing business Quality performance Labor cost differential Energy footprint Technology trends

Industrialization Strategy Outlook

66

A significant movement away from over-reliance on global “over trading” ….. avoiding wealth dilution Move toward sustainable National Economic Sovereignty, based on “localized” balanced trade and a value adding industrial environment. Improved National Management of currencies, capital, resources, waste, Ecological issues and citizen welfare.

A move more toward state managed economies and away from the failed Free Market ideology NAFTA and other trade blocs

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Reshoring to Canada?

Resurgence of Manufacturing in USA … Now at “tipping point”

via lower US $ value …….. Rethinking of globalized supply

Balanced Sourcing Cost trade-off modeling

Re-shoring !!!

Maybe not us with a RESOURCE ESCALATED

TBM

Experts are certain Manufacturing will Re- shore to North America …….

……..but have not been sure it will be Canada!

69

CANADA / US $ EXCHANGE

(Appreciated) 75 cent $ 0.5 1.0 100 cent $ 1985 1990 2000 2010 75 cent $ 2015

?

Purchase Price Parity 81 Cent $ 4% Prod Growth Mis-management period We did not earn the par dollar so its rise has done a lot of damage already.. A 75 Cent $ is mostly good news, but very late, It won’t help those with significant material supply chain not now in Canada due to past offshore practices.. 2% Productivity Growth

?

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Impact of Poor Economic footprint (Auto sector)

Canada (Ontario) at

$76/hour $65/Hour $60/Hour

US North

$85/hour

US Mid West

$67/hour

US South

$49/hour

Mexico

$18.5/hour

70

Reshoring will force some geographical location changes

Loaded Factory direct costs 0.95 Cdn $ 0.81 Cdn $ 0.75 Cdn $ NAFTA Scenario Other International trade deals will increase pressure Non Competitive Wage rates Employment taxation Energy Safety costs Government incentives Competitive Corporate taxation Process productivity Output quality Canada Declining Capital Investment (70% LESS) Reduced Investment trends will mean 25% further decline in the next decade

The best environment for Reshoring /Balanced Sourcing

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

Strong Government industrial policy National commitment Right valued exchange rate Higher interest rates Mid to high oil prices Low energy footprint NAFTA friendly borders Refocus on industrial learning CI rebirth within industry ? CANADA ?

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TBM Take Back Manufacturing

WWW.SME-TBM.ORG

IT WILL BE A CHALLENGE FOR CANADA BUT SOME MANUFACTURING CAN RETURN BUT ONLY IF WE TAKE IT BACK

Based on a decline in Resource sectors its our best plan B

But….Are WE Ready???

TBM

M

?

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TBM

North-American Manufacturing Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators Government

TBM

North-American Manufacturing Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators Government

IMPROVE POLICY Hold a Policy Blitz process!! IMPROVE Balance Integrated Industrial Learning system Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

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TBM

North-American Manufacturing Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators Government

IMPROVE POLICY Hold a Policy Blitz process!! IMPROVE Balance Integrated Industrial Learning system Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

Provide MORE support for Manufacturing
Embrace Waste-Free Forms of Globalization
Focused POLICY and PLANS
Avoid duplicated policy and support organizations

In Ontario alone we have 18 different policy groups feeding off the public trough Issuing independent reports without integrated review and closure. Put them all in one room!.. Come out with one plan! 77

Our Biggest Threat….. Unresponsive National Governments

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Imports/Outsourcing (Balance value adding trade) Re-install value adding Manufacturing in the economy Employment in all forms (Reset balance between capital and labor) Personal debt Equality Consumer spending Infrastructure spending Heath Education (Focus more on Citizens) Value added use of natural resources (Improve economic contribution) Ensure equitable transfer of IP trade with other nations Reinstall renewable energy (such as nuclear) Apply Disruptive Technologies(focus on productivity Very Selective Immigration (much less needed) The National Industrialization Roadmap (NAFTA) Policy Change!! Wealth for Citizens (Progressive Economists) Note: Discourage the use of wasteful “economic rent-seeking” unless applied for the national good Avoid the trap and real symptoms of an over-reliance on a “sharing economy” Direct loop Apply a resource usage tax BUT on a global basis

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

IT NEEDS … A DELIBERATE ACT OF NATIONAL & REGIONAL LEADERSHIP AND PLANNING.

TBM

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TBM

North-American Manufacturing Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators Government

IMPROVE POLICY Hold a Policy Blitz process!! IMPROVE Balance Integrated Industrial Learning system Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement Take Back Manufacturing (TBM) Will demand the availability Of a future manufacturing workforce that Is well-educated, well-trained with industry experience. High School

Current Environment

Education Institution Education Institution Work Term Work Term Education Institution

?

Only 20% are STEM students (Science, Technology, Engineering and Math) 14/18 in Literacy 19/21 in Numeracy 14/18 in Problem Solving ?

C-

A failing Grade!!!!

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Integrated Industrial Learning System

82 Take Back Manufacturing (TBM) Will demand the availability Of a future manufacturing workforce that Is well-educated, well-trained with industry experience.

Future IILS Environment

High School Education institution Industrial Integrated Learning Contract Work Term Education institution Work Term Career! High School Education Institution Education Institution Work Term Work Term Education Institution

?

Current Environment

Integrated Industrial Learning System

83 Take Back Manufacturing (TBM) Will demand the availability Of a future manufacturing workforce that Is well-educated, well-trained with industry experience.

Future IILS Environment

High School Education institution Industrial Integrated Learning Contract Work Term Education institution Work Term Career! Provide education and hope they get a job? High School Education Institution Education Institution Work Term Work Term Education Institution

?

Current Environment

Put into an industry and follow a career and receive focused learning! Remove educational and association silos

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TBM

North-American Manufacturing Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators Government

IMPROVE POLICY Hold a Policy Blitz process!! IMPROVE Balance Integrated Industrial Learning system Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

Industry Game-plan Checklist

Supply Chain Strategy… Reduce intrinsic waste

Run a Balanced Sourcing model…Include all cost factors … Rethink Sourcing plans within NAFTA…. US/Canada/Mexico Develop shorter supply chains where possible (NAFTA + Global) Strategize manufacturing closer to the trade bloc customer with partnerships and focused supply. Strategize manufacturing closer to the trade bloc supply (including primary resources).. Rebuild and Invest in strong local supply cluster relationships

Productivity Improvements… In all aspects of the business

Re-invent business wide LEAN Thinking and a business Continuous Improvement culture Gain an aptitude for all forms of INNOVATION and commercialization tools Integrated Business systems … Ensure you have a future “Integration plan”. New process technology and capital reinvestment… Flexible Automation/Rapid Technologies. Participate in integrated Learning system to develop/retain/stabilize/mobilize your workforce.

Local Community Engagement ….. Work on the image

Encourage local government to provide “business easy” infrastructure and costs Ensure engagement in applicable grants/saving programs and subsidies available to industry. Plan to minimize exposure to high energy and infrastructure costs Participate in local sustainable environment goals Re-Engineer and improve the local Manufacturing Image and value for every-one RUN THE NUMBERS!!!

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86

Global Change is taking place at an Exponential Rate!!

Globalization is Enabling Change (Positively and Negatively)… Religious/Ethnic pressures Higher Expectations to share wealth Cultural Mobility National boundaries (Much Migration) Technology (Supply Chains) Market and Commerce (unbalanced) Economics (unplanned) Politics Age of Disruption Ecological Sustainability Issues Age of Over-Supply 87

The 5 Advanced Technologies Driving Disruptive Innovation

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Manufacturing has an IMAGE problem!!

Most manufacturing-based businesses are beyond dispirited…. Our Politicians/Government/Population have little understanding of business and manufacturing…We must EDUCATE them!! Manufacturing is deemed:

Dark, Dirty, Dangerous, Deafening and Difficult….

88

….. And Smelly!

M And…. Highly unstable as a career!

?

89

TBM

EXCITE the NEXT GENERATION

Change ….

The Image of Manufacturing

Let’s Make Manufacturing

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TBM

North-American Manufacturing Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators Government

IMPROVE POLICY Hold a Policy Blitz process!! IMPROVE Balance Integrated Industrial Learning system Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

Suggested Local Region Checklist

1. Work with Industry associations to fully understand these requirements……… 2. Put industry where the people live who need the jobs! 3. Where possible encourage the leverage of existing local resources and supply chains 4. Make the rebuilding of small to large manufacturing facilities “easy and red tape free”. 5. Fix the high cost of energy! 6. Look at “manufacturing friendly” local taxes and tariffs 7. Ensure local legislations ( Safety/Human Resources/Environmental) are “business friendly”. 8. Ensure transportation logistics and infrastructure are competitive! 9. Encourage import avoidance as well as export enhancement!!!

10. Integrate/leverage existing clustered Industrial learning systems to provide a powerful workforce.
11. Encourage and help change the “Image” of manufacturing
12. Become competitive with other NAFTA jurisdictions…… they are NOW our main competitors!!

91

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92

T B M

Government support & Focus New and BOLD policies Fix impact of Hi Cdn $ Tax supportive re-capitalization Rethink globalized manufacturing Balanced sourcing Local supply clusters Build factories of the future More innovation capability New technology Refocus LEAN / Continuous improvement Enhance business systems Fix energy/support infrastructure Integrated Apprenticeships Re-Engineer Manufacturing Image

Reshore to NA/Canada Local trade bloc Balanced trade Balanced economy Rebirth business energy Recover jobs More career Stability/growth More prosperity via Value Jobs Improved legacy for our Kid’s

Let’s Re-engineer Our Economy to Work Again!

Toronto Chapter

93

Take Back Manufacturing

FOR OUR KIDS!!!

Let’s Re-engineer Our Economy to Work Again!

TBM

Toronto Chapter

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Questions?

94 KEEP ASKING…. WHY?…

END

95