Center For Business & Industry
MARCH 2007 VOLUME 3 ISSUE 3
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Jack Pfunder
Executive Director MRC


Pfunder Point of Views

"There is a technical skills gap that MRC and its economic development partners including the region's community colleges need to solve or manufacturing will erode in our area."

 "It is tough to be in manufacturing, because in global markets, pricing of commodity products can always go lower. Innovation through product development and identification of new markets is the only edge for business success."

 "To succeed today, leaders must drive changes in organizational culture, improve communications and adopt flexible workforce management skills."

 

 
The Power of Partnership
PA Manufacturers Have a Friend in MRC

(Continued from Front Page)

Many of those great industrial giants were located in the Lehigh Valley and concerns for the region's economic vitality are still very much alive.

But wait, there is a bounce if you will, a rebound in the region, as new and current manufacturers diversify and dot the landscape with new and important products being made with unique technologies and a dedicated workforce.

Several organizations are contributing to the region's manufacturing renaissance: the Manufacturers Resource Center (MRC) has been such a major influence since 1988. Funded by many sources including the state's Department of Community and Economic Development and the federal government's Department of Commerce, MRC views its role as a catalyst for small to mid-sized manufacturers with less than 500 employees. As a wholly owned subsidiary of Lehigh University, MRC is a part of the Manufacturing Extension Partnership (MEP) network of 60 such centers across the United States, dedicated to growing, training and making American companies more efficient and profitable.

Hired two years ago, Executive Director Jack Pfunder leads a talented force of 22 and accesses a database of consultants providing all types of expertise to transform manufacturers in the five counties of Lehigh, Northampton, Carbon, Schuylkill and Berks with high quality training and services at an affordable cost. “This year, we will participate in the growth process of about 130 companies,” says Pfunder. “They can be in metals, food, plastics, nanomanufacturing, it doesn't matter. Our job is to look at the entire enterprise and assist with top line growth and bottom line efficiencies utilizing lean manufacturing.”

The cautious optimism is based on some statistics that reveal a small groundswell of new developments. The national economic development magazine, Site Selection, said Pennsylvania ranked fourth nationally in the number of new manufacturing facilities in 2005.  Since 2002, the number of new manufacturing projects in the state has nearly tripled to 76 projects in 2005. The massive Deloitte 2004 study, “Manufacturing Pennsylvania's Future: Regional Strategies” also confirms that “manufacturing remains an essential element of Pennsylvania 's economy...by far the largest share of any sector.” It also noted that 16 “driver industries” have kept the state afloat despite a huge productivity gap between manufacturers in PA and the US average.

Transform, Grow, and Develop the Workforce: Key MRC Services

“What we learned from that study and our own homework is that MRC must deliver the cost-effective resources necessary for these companies to successfully compete and grow in a rapidly changing competitive environment,” says Pfunder. “We break it down this way: grow, transform and develop the workforce.”

Transforming processes essentially focuses on the need to apply lean manufacturing techniques, identify wastes and remove them. Lean6 ® programs and Six Sigma certifications are essentially today's ISO efficiency standards. These programs are offered by the MRC so that employees can participate in the shifting of an organization's culture, expectations, measures and ultimate performance.

Growing an organization takes into consideration those management elements critical to sales. Strategic issues – identifying new markets, developing new products, finding new customers and maximizing uncovered innovations – are identified using critical plans for long-term success.

Developing the workforce is the most critical link to making new sales profitable. “The biggest problem is attracting good people,” says Pfunder emphatically. “We all must work on growing the base of technically proficient people. The more technical aspects of education, such as Mathematics and Science, must be taught now in high schools and colleges, or the prospect of not having the workers with the needed skills will get worse. Everyone in manufacturing that we work with complains of the shortage of talented, technical support staff. Today, workforce training is much more than working machinery; it is imperative that employees learn how to communicate more effectively, how to contribute to improving plant processes and understanding how to identify problems and successfully resolve them.”

MRC's business advisors provide services through workforce development classes, specific assessments and consulting projects, leadership development seminars and managing the training processes for certifications. “The Center for Business & Industry is an important partner to us,” says Pfunder. “In fact, our priorities this year are to build partnerships to leverage more resources for more effective results.”

For More Information

Free assessments in the areas of marketing, lean manufacturing, competitiveness and benchmarking performance are available. If you would like more information, please contact Jack Pfunder at jack.pfunder@mrcpa.org or call 610-758-5596.  

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