On Demand Wisconsin Portal image
 
header graphic 
Export Assistance
Commerce Resources

Link to Governor Doyle's web site

Link to Commerce's Employment webpage

Link to wisconsin.gov web site
 

Division of Investment and Export
PO Box 7970
Madison, WI 53707-7970
USA 		Wisconsin Worldwide Newsletter Logo Subscribe
Send to a Colleague
Feedback
View Past Editions
Vol. 8 #3, January 2009

Next Generation Manufacturing Leading to Global Success
New strategies are helping Wisconsin firms achieve world-class performance and success, according to a study assessing the global competitiveness of Wisconsin manufacturers that was commissioned by the Wisconsin Manufacturing Extension Partnership (WMEP) and several partner organizations.  More than 500 manufacturers participated in the Wisconsin Next Generation Manufacturing Study, which was conducted by the Manufacturing Performance Institute (MPI), a global research firm that annually conducts the largest study of manufacturers in the United States.

“Next Generation Manufacturing refers to a framework of forward-looking strategies that are driving manufacturing growth and profitability in the 21st century,” said Mr. Mike Klonsinski, executive director of WMEP.  The next generation success strategies are customer-focused innovation, systemic continuous improvement, advanced talent management, global engagement, extended enterprise management and sustainable products and processes.  A key finding of the study is that top-performing Wisconsin firms are already deploying strategies and tactics consistent with Next Generation Manufacturing.  Of potential concern, however, are state manufacturers who are not engaged in change or transformation, as well as firms that recognize the importance of next generation strategies but are unable or unwilling to act.  The study found numerous manufacturers making limited progress across key performance metrics, and that smaller firms were more likely to face these difficulties.  

The study also found that most Wisconsin manufacturers recognize Next Generation Manufacturing strategies as important to their future success.  The strategies and the percentage of respondents ranking them “highly important to their organizations’ success over the next five years” were:
  • Superior processes/improvement focus (61%),
  • Customer-focused innovation (55%),
  • Engaged people (49%),
  • Supply chain management (36%),
  • Global engagement (21%),
  • and Green/sustainability (12%).
Wisconsin manufacturers ranked their progress as good to world-class on the following strategies:
  • Customer-Focused Innovation (43%),
  • Superior Processes/Improvement (42%),
  • Engaged People (29%),
  • Supply Chain Management (25%),
  • Green/Sustainability (17%), and
  • Global Engagement (21%).
The study reveals a worker training deficit.  Nearly a third of Wisconsin manufacturers reported that they annually provide eight or fewer hours of formal training per employee.  Only one in 10 respondents provide more than 40 hours of annual training, a level considered world-class.

In general, smaller firms trailed the performance of larger firms in deploying next generation strategies.  For example, across all categories small firms (less than $10 million in annual sales) were significantly more likely not to have measurement systems in place than large firms ($100+ million in annual sales):
  • Customer-Focused Innovation: (5 percent vs. 46 percent),
  • Superior Processes/Improvement Focus (two percent vs. 27 percent),
  • and Engaged People (seven percent vs. 38 percent).
Wisconsin firms have considerable opportunity to leverage international sales.  For example, 77 percent of manufacturers surveyed report that sales outside the United States have grown by less than 25 percent over the last three years.  Seven percent of firms report non-U.S. sales growth of 51 percent or higher. Nearly two-thirds of Wisconsin manufacturers (63 percent) reported that they have no sales or distribution facilities beyond the United States.

A majority of Wisconsin manufacturers ranked support services, peer groups and training opportunities in their geographic region as average or higher for most next generation strategies.  The highest satisfaction levels were for superior process/improvement focus (76 percent of companies, with 14 percent indicating “full support”).  The lowest satisfaction was for global engagement (47 percent of companies, with 5 percent indicating “full support”).  Smaller firms were more likely to indicate “no support” for all next generation strategies.

According to Mr. Klonsinski, Wisconsin is the only state in the nation to do a manufacturing study of this scope and magnitude that is focused upon Next Generation Manufacturing success.  The 61-question research initiative provides a wealth of data for state manufacturers, business leaders, policymakers, economic development organizations and others.  “The results of this study are essentially a scorecard that will allow us to measure future progress on implementing these strategies.  That’s an important first step to strengthen our competitive position and become a global leader in Next Generation Manufacturing," he said.

WMEP’s partners in the Wisconsin Next Generation Manufacturing Study include the Wisconsin Department of Commerce, Wisconsin Manufacturers & Commerce, Wisconsin Technical College System, Milwaukee 7, New North, Inc., Racine County Economic Development Corp., and the Northwest Wisconsin Manufacturing Outreach Center (NWMOC).  WMEP received partial funding for the study from the WIRED program coordinated by the Regional Workforce Alliance, along with grants from the federal Economic Development Administration and Wisconsin Department of Commerce.  To download the study results or view regional findings, visit the WMEP website.