Growing Sales through Innovation

  

 Email Article  

Tweet  

  

Growth in the manufacturing sector will happen, especially for California manufacturers who prepare to grow, practice continuous improvement throughout the organization and most important, embrace innovation.

Predicting which companies will thrive is difficult, but we can foresee a positive future for companies that develop talented employees, search for ways to conserve energy, improve efficiencies and invest in initiatives that will grow sales…through innovation!

Case Study: Product Diversification as a Path to Growth

A key way California’s manufacturers can grow sales is by diversifying their product line. One such example is Golden Island Jerky. Golden Island Jerky Company is a third-generation, family-owned and operated business based inRancho Cucamonga,California. The company has crafted jerky for more than 50 years and currently manufactures more than 20 varieties of beef and pork jerky snacks with innovative flavors from around the world.

In 2011,GoldenIslandwanted to grow by introducing a new product into the market: a new flame-grilled barbeque pork jerky, making it the first company to manufacture such a product for the retail market. Since introducing the product, the company achieved more than $2 million in new sales.

Unveiling a new product takes hard work and innovation. CMTC helped the company develop a strategic marketing plan and assistance for enterprise resource planning (ERP). For more information about this story, click here.

The key takeaway: the organization embraced innovation and tried new things, and positive results followed.

Innovation for Growth - A Hands On Workshop

Next week on May 21^st, California manufacturers will have an opportunity to learn more about innovation! Attend the Innovation for Growth: A Hands On Workshop for Manufacturers at no cost:

• Identify practices that help promote creative thinking and innovation
• Maximize the connection between courage and creative thinking
• Develop and leveraging from your own creative strengths
• Learn brainstorming tools and techniques to cultivate creative thinking and generate ideas and solutions
• Master communication skills
• Hear practices and guidelines that create an innovative work environment

For more information or to register for the event, click here.

 CMTC Assistance is Available

If your company is looking to use innovation to become more efficient, productive and globally competitive, CMTC can help. For more information, visit our innovation page.

The New Industrial Revolution - Reshoring and Advanced Manufacturing

  

 Email Article  

Tweet  

  

3D Printing - This is Not Your Child's Paper Mache

  

 Email Article  

Tweet  

  

This article, originally posted on NIST MEP's Manufacturing Innovation Blog and written by Clara Asmail, speculates on the future of additive manufacturing.

Materials for 3D printing are no longer limited to plastics and metals. And 3D printing is not happening only in garages or nifty service salons. European Staples stores will now be able to make a 3D paper model of just about anything. Yes, the revolution is maturing from the garage to the big box stores. You can take a photo of any object with your smartphone – yes, 2D – and upload it to the office supply megastore and they’ll make it for you out of the same material they’ve peddled for years: paper. They recently made a deal with MCor to put one of their UK-made, Iris True Color 3D in each of their office supply stores.

Digital photography has distanced us from the days of kodachrome, but now we can imagine being able to “replicate” our photos out of the plane and into third dimension to make souvenirs out of the photos we took of a special occasion or vacation. And that 3D replica will have the same near-perfect color matching we enjoy in our still photos.

Imagine that we are trying to arrange a complex factory layout. Wouldn’t our work be simplified if we could take snapshots of the various machines, conveyor belts, hoppers, etc and quickly layout a diorama to see how the assembly could be made efficiently? The various oddly-shaped process steps could be repositioned until you achieve a layout that’s easy to visualize and intuitive because you can see, hold and move the individual pieces.

Prototyping of new product designs is already established as possible with (may I say?) “conventional” 3D printers. But with the prospect of being able to pick up your prototype from your local office supply store, we’ll hit another wave of user-friendliness when it comes to product development.

With each new technological advance we shed a bit of our innocence when it comes to awe at what mankind can achieve. But turning a CAD model, drawing or now a photo into something you can pick up along the way home from the grocery store and dry cleaners is pretty neat indeed.

To learn more about this new service, check out the recent Forbes article.

Strengthen Your Customer Base: Obtain Quality Certifications

  

 Email Article  

Tweet  

  

Most California manufacturers are looking for new ways to obtain new customers and boost sales. A key way to do this is to improve your branding image... prove that your company is reliable and manufacturers goods in a safe and efficient manner.

Manufacturers can improve their audiences’ perception of them through obtaining certifications. Organizations that can meet strict standards by achieving recognized and respected certifications like ISO and OSHA send a powerful message to consumers: we produce quality products with safe practices.

Especially if you’re a small or mid-sized California manufacturer, obtaining certifications is critical to increasing sales. By meeting stringent manufacturing quality standards, you can level the playing field with larger competitors. Here’s what it all comes down to: your possible customers from around the globe are not only familiar with certifications like ISO and OSHA – they prefer to do business with manufacturers with certifications. It’s all about perception, perception, perception!

Example: ISO Matters

Simply put, ISO certifications demonstrate that a manufacturer is in compliance with standards that relate to quality management systems. Beyond the manufacturing quality standards, ISO certifications provide a guide for improving quality, a company’s culture and bottom-line results. Benefits of certifications include:

• Ability to appeal to new markets
• Increased sales
• Improvements in processes and procedures
• Increased productivity
• Waste reduction and elimination
• Employee training and buy-in to ensure sustainability

Important Steps

Achieving manufacturing quality standards is a critical, but detailed process that involves a lot of documentation. Be prepared to organize and document a lot of information about your process. This may initially sound like a daunting route to go, but again, it’s important and helps you in the long-term. Here are the four main steps:

1)     Documentation: During most certification processes, a manufacturer is expected to prepare documents such as quality manuals and complete highly detailed certification forms. The documentation needs to be prepared in a strict format according the governing organization’s guidelines.

2)     Workforce Training: Requirements will vary depending on the roles of individuals working within the organization. Program’s are focused on following the standards and provide guidance on new procedures as a result of the documentation process.

3)     Implementation: It’s practice time! Training and documentation will lead to changes with company’s processes, and governing organizations for manufacturing quality standards will need to see them in action. This will typically happen a few months before a certification audit begins, depending on the certification.

4)     Audit: Different factors such as particular certification and the size of a manufacturer’s facility will impact the length and number of auditors for the inspection. An auditor(s) will review all the documents, interview employees on all levels of the organization and then offer feedback for changes and improvements. For example, ISO auditors report on problems called “non conformances” which can lead to a denial of certification (or outline what should be corrected in order to get approval).

 Don’t Wait!

 Manufacturers can obtain numerous certifications including:

• ISO 9001 General
• AS 9100 Aerospace
• ISO/TS16949
• ISO 13485 Medical Devices
• ISO 14001 Environmental Management
• ISO 22000 Food Safety
• ISO 17025 Test & Calibration Laboratories
• OHSAS 18001 Occupational Health and Safety (OH&S) Management System

If you would like to read some real case studies of CA manufacturers achieving results through certifications, we recommend that you review some of the following case studies about Southern California manufacturers:

• Luminit
• Miles Chemical
• Accurate Dial & Nameplate

Don’t miss out on this critical opportunity to increase sales! For more information, please contact us at 310.263.3060 or click here.

Trade Deficit and the Importance of Exporting for Manufacturers

  

 Email Article  

Tweet  

  

According to recent reports from the U.S. Department of Commerce, our country’s trade deficit is improving. Overall, the deficit in December was down more than $10 billion from the previous month and down from over $13 billion from the same month the previous year.

These figures have implications for both the economy as a whole and the manufacturing field. For the nation’s economic outlook, these statistics suggest that the “U.S. economy actually grew in the fourth quarter of 2012, not shrank as the government’s preliminary GDP figures indicated.” For the manufacturing industry, these figures indicate an improvement in the sector. Other statistics also support this notion. Michael Dolega, an economist with TD Economics, noted, “This morning's December actuals of 2.1% export growth and 2.7% retreat in imports paint a much improved net-export picture.”

Simply put, more manufacturers are embracing exporting, which is important to our country’s economic growth. In fact, out of America’s top 15 trading partners, the U.S. only has a trade surplus with two of those countries (Brazil and the Netherlands). Increasing exporting initiatives will help our country improve the trade deficit and should be made a higher priority.

Equally as important, exporting will help manufacturers increase sales. California manufacturers should focus more on exporting initiatives this year. Exporting allows companies to emerge into new markets and significantly increase sales. A recent survey conducted by McGladrey Manufacturing and Distribution Monitor found that 60 percent of companies that reported increased export activity stated that their company was “thriving and growing”. In addition to increasing sales, exporting can help businesses in other ways. Working with customers from international markets can provide new insight for American manufacturers. This could inspire new processes and innovations and enable manufacturers to test new products or methods. 

While exporting helps promote growth, many manufacturers are overlooking the advantages. According to a fact sheet from the International Trade Administration, of America’s 30 million companies, less than 1 percent export, and of those that do, 58% only export to one market. If you are a California manufacturer who is considering exporting, the ExporTech Corporate Management Program can help.  Click here to visit our exporting page and learn more about how you can increase sales.

Additive Manufacturing: The New Frontier for California Manufacturers

  

 Email Article  

Tweet  

  

If you read manufacturing publications, you may have come across an article about additive manufacturing. This topic is becoming more prevalent and many industry experts believe that additive manufacturing will become an important part of the American manufacturing economy.

So what is it? Additive manufacturing (which is sometimes referred to as 3D printing) is the process of making three dimensional, solid objects from a digital model. A technical process, additive manufacturing allows designers to take multiple materials and build parts as a single unit from the inside out. Because materials are built layer by layer, the product is able to be built with high precision which helps manufacturers save on costs by reducing material waste.

Although reducing production costs is a great benefit for U.S. manufacturers, this process will help the field in another important way: additive manufacturing will allow us to build complex, “multi-material” components. This can spark new innovative parts, products and processes for our nation’s manufacturers.

Advancements in the field will lead us to create more high-tech manufacturing jobs for our economy and will inspire businesses to come back to the U.S. This has made pursuing additive manufacturing a top priority for our country. In fact, a $30 million grant was used to establish the National Additive Manufacturing Institute (NAMII) in Youngstown, Ohio last year. With continuing developments, the process could help affirm America as the high-tech manufacturing hub of the world for years to come.

If you are a Southern California manufacturer interested in this topic, there is an upcoming Additive Manufacturing Forum. The event will be held on March 20, 2013 from 7:30am – 5:00pm at Lawrence Livermore Laboratory in Livermore, CA. Here are some of the benefits of the event:

• Increase your potential for growth
• Improve productivity with faster “speed-to-market” products
• Increase your local, national and global competitiveness
• Educational and informative – up close and personal product display

While many professionals are encouraged to attend, the forum is mainly geared towards:

• CEOs
• Start-ups and entrepreneurs
• Design engineers
• CNC programmers
• Product development managers

Additionally, attendees can come to the event the night before to meet the vendors who will be showcasing equipment and products.

CMTC believes in the importance of additive manufacturing and is offering a $100 travel credit to defer travel expenses (one per company) to the first 25 Southern California manufacturers to confirm and attend the event. Contact Carrie Pittman at cpittman@cmtc.com for more details.

Don’t miss out on this great event! Click here to register!  (Deadline is March 15th)

The Power of Change Management

  

 Email Article  

Tweet  

  

Written by: Tony Popowski

California manufacturers should have two important goals in 2013: increase sales and save on excess costs. Throughout the year, manufacturers will look for innovative ways to accomplish these goals. This may include implementing initiatives to improve operational efficiencies and becoming more lean, or growing sales through increasing exports or developing new product lines.

While improvement projects are imperative to help your company grow in 2013, it’s critical to make sure your planned changes are sustained. What’s the point of investing resources if they don’t better your company for the long-term?

A key component of ensuring the results of your improvement initiatives are sustained is securing employee buy-in. When you make technical changes to grow, it’s just as important that your team understands and embraces the importance of all the planned changes. Furthermore, employees need to have buy-in from the start of a project(s).

Companies sometimes overlook the importance of this. Management’s thinking is that they don’t want to waste their staff’s time: “The planned changes won’t impact how they do their jobs for a while… we’ll prep them at a later date. I need them to focus on sustaining production levels right now.”

While it’s understandable that management is concerned with maintaining a normal flow of production, it’s critical to address this issue early-on. If employees don’t have buy-in from the start of a project(s) or understand why it’s so important to improve, they don’t see the value in the change. This leads to less motivation for participating in projects and carrying out the changes, decreasing your chances of sustainability.

If you are transforming operations to help your company grow, there is a known communication methodology known as the ADKAR Model that can help. The model provides a guide to managers looking to improve employee buy-in:

• Awareness – Highlight to your workforce the need for improvements. Demonstrate what needs to change to make the company better so they understand “why” the plans are being formulated.
• Desire – Give your staff motivation for improvements. Make them understand how the improvements will impact them in the short-term and long-term. Connect everything back to their positions and help them see how the changes will benefit them.
• Knowledge – This involves training staff on how to make the improvements. It may include workshops or sessions to provide the necessary information for growth.
• Ability – Employees are guided into making the changes and are evaluated accordingly.
• Reinforcement – Consistent communication and ongoing support is critical to sustainability.

This concept of addressing organizational, technical and behavioral changes all in one process is often referred to as Change Management within the manufacturing community. CMTC has a special methodology on addressing these issues for manufacturers. Click here for more information.

2013 will be a pivotal year for California’s manufacturers. With American manufacturing making a comeback, now is the time to implement initiatives that will help you improve efficiencies and grow sales. If you would like more assistance, click here to see a list of our services.

California Hosts World's Largest Medical Manufacturing Event

  

 Email Article  

Tweet  

  

MD&M West — the world's largest medical device design and manufacturing event — is a comprehensive resource for exploring the latest industry issues and developments, meeting with world-class suppliers, and discovering solutions to bring your best ideas to life.  The MD&M West (Medical Design & Manufacturing) Expo takes place February 12-14, 2013 at the Anaheim Convention Center.

Who should attend?  Manufacturers with the following expertise:

• Assembly/Automation and Manufacturing Equipment
• Cleanroom and Sterilization
• CNC Machine Tools and Lasers
• Contract Manufacturing and Outsourcing Services
• Design Services
• Electronic Components, Subassemblies, and Services
• Medical Grade Materials for Every Application
• Motors, Pumps, and Motion Control
• Packaging, Labeling, and Bar Coding
• Precision Plastic and Metal Components
• Process Systems and Controls
• Testing, Inspection, QA/QC Products and Services

Free Exhibitor Expo passes for CMTC customers only.  Contact Carrie Pittman, cpittman@cmtc.com

Click here for more information and to register

Manufacturing in the Golden State - Making California Thrive

  

 Email Article  

Tweet  

  

Written by:  Michele Nash-Hoff, Guest Blogger

For over 150 years, California was the land of opportunity - the Golden State. It was part of the last frontier of westward expansion of the United States. People emigrated to California from other states and territories, and people immigrated to California from other countries to pursue the American Dream.

Mining, agriculture, and ranching were the first industries in California during the 19^th Century. With three deep-water ports, California became the gateway to Asia and other Pacific Rim countries in the 20^th Century. Shipbuilding and then aircraft manufacturing, starting in the 1920s, fostered the growth of other manufacturing sectors. The increased presence of the Navy and Air Force during and after the WWII expanded manufacturing opportunities to supply their needs. Space exploration and the establishment of several NASA centers increased the production of high tech products in California.

Northern California's Silicon Valley was the birthplace of the semiconductor industry and many of the electronic component equipment companies that supported technology-based manufactured products. Communication and telemetry systems combined to become the powerful telecommunications industry. Software development and production to support and operate the explosion of high tech products became the next growth industry in the 1990s.

Medical device manufacturing started as early as the 1970s, but the San Diego region became the center of biotech and biomedical R&D and manufacturing, as a result of the University of California San Diego and Scripps Research Center, growing exponentially in the last decade of 20^th Century and the first decade of the 21^st Century.

The dotcom bust in late 2000, and the subsequent recession took their toll on California's manufacturing industry. From 200-2004, there were an unprecedented number of company closures resulting in a steep loss of manufacturing jobs that was exacerbated by many companies making the decision to offshore manufacturing to Asia, especially China. There was only a limited recovery in the number of manufacturing jobs during 2004-2007, and the Great Recession of 2008-2009 further decimated California manufacturers and resulted in more loss of manufacturing jobs. In fact, California has lost over 500,000 manufacturing jobs since 2001.

Thus, you may be astonished to find out that California still had more manufacturing jobs than any other state in the U. S. as of 2011.

    Source: Bureau of Labor Statistics 2011

Now we are faced with manufacturers making the decision to leave California. What can we do to make California thrive again and revitalize our manufacturing industry?

Well, I have been working with the Coalition for a Prosperous America and staff from California Senator Mark Wyland and Assemblymember Toni Atkins offices to facilitate an economic summit on this very topic.

Here is an invitation to attend this important event:

"I would like to personally invite you to an event that I am hosting with Assemblymember Toni Atkins on February 14^th. The summit will focus on changes happening to California's manufacturing industry and explore avenues that could encourage and promote this important sector. 

A dynamic list of speakers will explore issues related to free trade, fair trade, partnerships with Labor and regulatory reform options that could help create more jobs in San Diego County and the state. 

Please join me as Republicans and Democrats, Management and Labor, and leading economic thinkers explore solutions to these important challenges. I look forward to your participation.

Mark Wyland
Senator, 38^th District

Strengthen Your Workforce with These Three Tips

  

 Email Article  

Tweet  

  

Written by:  Emily Carter

If you were deciding what the biggest asset to your company was, chances are that you would not choose your most advanced piece of equipment or a mechanism on your production line. Whether you’re an automobile manufacturer or produce precision screws, dies or pumps, you’re still going to arrive at the same conclusion: the biggest asset your company has is your staff.

The profitability of your company depends on the effectiveness of your workforce. The success of almost every facet of your organization is dependent upon a strong team. Think about productivity. Confucius has a famous quote, “Choose a job you love and you will never have to work a day in your life.” An employee who enjoys his or her job and loves the company will work harder. Instead of just “going through the motions”, that employee will look for ways to improve efficiencies and become more innovative.

Unfortunately, many employers overlook the importance of employee retention efforts, and this concern has grown in the business community. Just recently at the Conference Board’s CEO Challenge 2013, a survey of senior executives named “human capital, or how best to develop, engage, manage and retain talent, as their lead challenge.” A recent survey from CareerBuilder relayed that “68% of employers are worried about losing employees”.

Since we’re fresh into 2013, now is an opportune time to focus on strengthening your workforce. Here are three key areas to focus on:

• Ensure “buy-in” on projects: Implementing improvement projects should be on your radar this year. Whether it is to become leaner or expand your market share, you can’t expand your business if your staff isn’t on board.  Make sure your staff understands why improvements are being made and how the changes benefit them. It will make them feel a part of the decision making process and motivate them to sustain changes.
• Encourage employee vacations: Employee burnout diminishes productivity and can ultimately lead to turnover. By encouraging your employees to take their allotted vacation time, they can recharge and come back with a more clear and positive outlook. A survey from Harris Interactive found that 57% of workers don’t take all of their vacation time.
• Introduce more initiatives for employee engagement: Implement more initiatives to demonstrate employee appreciation. The resources may not be available to increase salaries or provide monetary bonuses, but try to find other ways to support your employees emotionally. More regular employee evaluations may provide the opportunity to give positive feedback. Creating more forums where employees can communicate honestly, and without repercussions, shows you care about their concerns.

As you jump into 2013 and make goals to become more profitable, it’s important that your workforce is along for the journey. A strengthened workforce is more productive, innovative and efficient.

CMTC offers workforce development services to help manufacturers locate hard-to-find skilled workers and provide classroom and hands on training for executives, managers and line workers. For more information, visit our website.