In the years since the worst economic recession of the 21st century, several industries have shown resilience. Foremost of these is automotive. Not only have global sales reached a record high in 2016, but the operating margins are growing quickly as well. According to research presented by Capital IQ, average operating margins for the top 100 automotive market suppliers were able to jump above pre-recession levels by 2010, just a year from their record low.
Adopted in the late 1990s, the North American Industry Classification System (NAICS) consists of codes set up by the U.S. Census Bureau to separate manufacturers by sectors, subsectors, and industries. Most companies are familiar with this system at a high level, as it’s used by the government to collect, assess, and distribute data about manufacturing in 5-6 year cycles.
However, if analyzed properly, NAICS codes can be far more important than simple identifiers used for federal purposes – in fact, they can play an active role in your company’s long-term strategy.
WIRE-Net, MAGNET, Medina County Workforce Development, and Team-NEO completed a major grant-funded project that helped regional companies improve their competitiveness, create and retain jobs, and strengthen their operations here in Northeast Ohio.
Topics: Accelerate Cleveland Manufacturing, MAGNET, Cleveland Industrial Retention Initiative (CIRI), City of Cleveland, Cleveland Foundation, Team NEO, Medina County Workforce Development, Make It In America
With generous funding from The Cleveland Foundation, WIRE-Net is entering a third year of collaboration with MAGNET on the Accelerate Cleveland Manufacturing (ACM) initiative to provide Cleveland companies with training, consultation, or peer-learning groups in an effort to boost economic growth and job creation, one plant at a time.
That’s a great question! Nearly every small business owner I’ve met has been told “You need a business plan”. What a bunch of BS!
Unless you are looking to raise money for your business, you don’t need to waste your precious time pulling together a 30-50 page business plan that won’t be used.
So what should you do instead? How about coming up with answers to the following questions:
- Where are you today?
- Where do you want to go?
- How are you going to get there?
People search the internet for basically three things: 1. To Solve Problems, 2. Find/Purchase Items, and 3. To Be Entertained. The best inbound marketing sites should do all three. During Friday's growth workshop we learned how to build a roadmap for each of our products to attract more target customers.
At WIRE-Net, Manufacturing Matters, because, as we like to put it, manufacturing multiplies, manufacturing pays, exports, and innovates.
What we mean by this is that every manufacturing job is the foundation for up to 5 additional jobs in other industry sectors, the highest employment multiplier of any industry. Manufacturing pays 17% more in wages than other sectors. 52% of U.S. exports are in the manufacturing sector. Finally, 75% of private sector research and development comes from the manufacturing sector, helping ensure that American manufacturing remains on the cutting edge of new products and technologies.
Many manufacturers are challenged with articulating a unique value proposition for their companies. And, as I discovered at WIRE-Net’s Growth Workshop last Friday, many manufacturers believe that the only thing that sets them apart from the competition is Price.
Last night I was thrilled to be joined by 120 friends from our manufacturing community to kick-off our 2016 Accelerate Cleveland Manufacturing year. Attendees enjoyed Cleveland Whiskey’s award winning bourbon and signature cocktail: A Winter Night in Cleveland at the offices of Boondock Walker in MidTown.
In early 2015, a Cleveland manufacturer employing 76 skilled workers including welders, machinists, and engineers confided that he wanted to develop a value engineering program and add customers in Northeast Ohio. A growth assessment identified three priorities: 1) Find financing to enable a $600K process automation investment, along with associated process improvement to make best use of the equipment, 2) Increase plant efficiency by engaging employees to take ownership of continuous improvement, and 3) recruit an open Manufacturing Lead position.