NTMA’s Chairman's Inaugural Speech
Friday, March 18, 2011 at 3:13PM www.ntma.org
My theme for 2011 – “Marketing Manufacturing to America” – is not about foreign competition or creating another “buy American” campaign. It’s about making U.S. manufacturing relevant to the American public.
Ayn Rand published the philosophical novel Atlas Shrugged in 1957. I know many of you have read it and understand its relationship to our industry.
For me the most poignant part of the book was when Francisco D'Anconia spoke about money.
"If you ask me to name the proudest distinction of Americans, I would choose ... the fact that they were the people who created the phrase 'to make money'. No other language or nation had ever used these words before; men had always thought of wealth as a static quantity – to be seized, begged, inherited, shared, looted, or obtained as a favor. Americans were the first to understand that wealth has to be created. The words 'to make money' hold the essence of human morality. … Money is made possible only by the men who produce.”
I think much of this is lost in American society today; we have forgotten how money is made. In a recent study of Apple and Goldman-Sachs financials by John Cassidy of The New Yorker, it was estimated that the average Apple employee makes $46,000 per year. That same study concluded that at Goldman-Sachs the average salary is $430,700 per year. It is interesting to note, that one of those companies “makes” a product that is sold and the other manages money. Is it just me or is there something amiss here? New York City, the city in which Wall Street resides, was built on the backs of manufacturing, agriculture, and mining – all industries that make something, which in turn make money or create wealth. New York City, as well as the huge cities being created overseas, was not built on the backs of a service economy – it was built and financed through a production economy. Don’t believe me? Look at the cities that are prospering in Asia. What is Asia’s strength? How is Asia able to invest in the U.S. and world economies? Germany embraced manufacturing and is financing Europe’s debt. Why do they have money? Oh, that’s right they are making it with production! They are “making money.” Let’s look at what manufacturing in the U.S. does.
The U.S. is the World's largest manufacturing economy. It produces 21% of global manufactured goods, Japan is 2nd at 13%, and China is 3rd at 12%. U.S. manufacturing produces $1.6 trillion of value each year, which is 11.2% of U.S. GDP. Manufacturing supports 18.6 million jobs in the U.S. – 1 in 6 private sector jobs. U.S. manufacturers are the most productive in the world – twice as productive as workers in the 10 leading manufacturing economies. U.S. manufacturers perform half of all R&D in the nation, driving more innovation then any other sector. The Wall Street Journal recently reported: “U.S. manufacturing, viewed as a lost cause by many Americans, has begun creating more jobs than it eliminates for the first time in more than a decade.” You don’t hear these statistics everyday, in fact you hear a much different story if you listen to the average U.S. citizen.
The following are statements that I have personally had the pleasure of hearing:
- “Oh, they make all that stuff in China.”
- Recently, I was on a committee interviewing high school students for the Youth of the Year and one of the young ladies told us she was taking a course in Chinese at a local Community College. When I asked her why she picked that language to learn, her reply was quick and direct – “Because that is where everything is made.”
- While giving a tour of our shop to a local college alumni group the following comment was made to me – “I thought you just bought these types of things in a hardware store.” That part was for a hydraulic control system on a 737 jet!
- And, my all time favorite – “I thought your manufacturing plant would have smoke stacks.”
In order for us to grow our industry and attract talent to our shops we have to change the public’s perception of our industry. To exist as an industry you have to exist in other people’s minds! This includes our neighbors, schoolteachers and counselors, as well as our local, state, and federal public officials. If we want to be relevant, it is time we market ourselves to our Nation. Think about the Beef Industry. If I say “Beef” most of you will repeat to me – “it’s what’s for dinner.” Folks, that’s Marketing 101. If I say, “Manufacturing” most of the American public will say, “It’s what they do in other countries.” Really? Is that what the data shows?
It’s time we ask the American public, if they want to be a nation of Baristas or a nation of Engineers and Machinists? Manufacturing sector jobs pay an average of $22 per hour, while service sector jobs pay an average $11 per hour. We need to let the public know that you have to have a manufacturing base to be relevant as a nation; by not embracing manufacturing you loose the ability to innovate. We have to market ourselves, not to ourselves, but to the Nation. The data tells the story! Let our nation hear your story. Please don’t tell me your story; I know it, tell the American public.
How will we do it? We will start with a grassroots effort. Many of you will say we aren’t big enough. Again I say, really? NTMA has an affinity partner that is an $8 billion public corporation and collectively we are their largest customer. Do you think we are relevant to them? You have much more power than you think. It is time we stopped feeling sorry for ourselves; time to step up and start telling people how much we contribute and how important we are to the Nation’s economy!
How can we make a difference? First your association, NTMA, will lead the charge by marketing what we do, by telling the public officials how much we matter, and by attracting young talent to our industry. While our Association works for us, we need to help by participating in the efforts of the Association. Get involved with one of the leadership teams, attend conferences, participate in the legislative efforts, and support the National Robotics League (NRL) to attract youth to our industry. Start marketing yourself and your company to the public. Start a blog, sign up for Twitter and start tweeting about U.S. manufacturing. Get involved with your local schools and colleges; they want and need local advisors. Give plant tours to the public and schools, show them what you do and point out that there are no smoke stacks! Everyone in our industry is creative. Let us know what you’re doing to promote U.S. manufacturing so we can get the word out and participate with you. Collectively we are a force to be reckoned with!
One last thing we need to make sure the Nation understands: Government doesn't make it easy on manufacturing. We pay our own and much of the nation’s way. With that said, the most important thing we can let the public know is that we can manufacture America’s debt away.
Want to solve the nation's debt crisis? Manufacturing can do that. Want to employ people in highly technical, well paying jobs? Manufacturing can do that. Want to create a sustainable economy with fewer bubbles? Manufacturing can do that. Want to have innovation and success in the market place? Manufacturing can do that. Want thriving and productive cities? Manufacturing can do that, too. Tell me why anyone wouldn't support manufacturing? Do you want to return the U.S. to making money? Then make yourself relevant to the American public! Manufacturing, agriculture and mining create wealth. They make a product; therefore, they "make money."
Let's show America how to make money!
Please follow me on Twitter @gradycope and read about our stories on my blog www.gradycope.com.
