President announces manufacturing initiative during Indiana visit

As this blog reported earlier in the week, President Barack Obama visited Indiana on Friday for Manufacturing Day along with Commerce Secretary Penny Pritzker. During their visit to Millennium Steel in Princeton, President Obama announced a $200 million nationwide manufacturing initiative to fund the creation of an Integrated Photonics Manufacturing Institute, the next step in the National Network for Manufacturing Innovation. The Department of Commerce will also publish a resource to help manufacturers locate in the country without outsourcing.

"When our manufacturing base is strong, our entire economy is strong," said the President during his Manufacturing Day proclamation. "Today, we continue our work to bolster the industry at the heart of our nation. With grit and resolve, we can create new jobs and widen the circle of opportunity for more Americans."

Also on Friday, the Bureau of Labor Statistics released the latest national employment numbers, with America's jobless rate falling below 6 percent for the first time in six years. September was the 55th consecutive month of job creation, an unprecedented streak, and the unemployment rate has fallen by 1.3 percent over the last year. In the manufacturing sector, 700,000 jobs have been added since 2010.

The White House published a series of charts showing more encouraging signs for the United States' manufacturers: the sector generates $2.1 trillion, more than all but eight nations worldwide, and manufacturing supports one out of every seven private sector workers. The U.S. has also recently retaken the lead for global inbound investment, ahead of China.

Indiana's manufacturers have many software resources available from local companies to aid in the smooth running of their operations. Manufacturing ERP software comes with features to plan and track every step of the production process, from inventory to distribution.

ISM: Manufacturing growth slowed in September

The Institute for Supply Management (ISM) published its monthly manufacturing index, showing that the industry's growth was slower in September than it had been in August. Based on its research, the ISM placed the Purchasing Managers Index (PMI) at 56.6 percent, down 2.4 points from the previous month. However, any number above 50 indicates growth, and analysts expected a slight dip after manufacturing grew in August at the fastest rate since March 2011.

By market segments, the largest drop off came in new orders, whose growth fell from 66.7 percent to an even 60 percent. Two areas receded overall in September: orders backlog, which went from a positive 52.5 percent to contraction at 47 percent, and customers' inventories, the only index with negative growth in August, which fell further from 49 to 44.5 percent. On the flip side, production is the fastest growing area at 64.6 percent (64.5 in August). Prices also increased at an accelerated rate of 59.5 percent, a 1.5-point increase.

A Reuters poll showed that economists expected the index to be at 58.5 percent, nearly two points higher than it was. But despite the setback, the general feeling is positive: "The comments [from manufacturers] show a pretty upbeat mood," said ISM's Bradley Holcomb to the Wall Street Journal.

As this blog reported earlier this week, the ISM's Chicago Business Barometer showed that the Midwest's manufacturing sector is growing significantly faster than the nation's average, at a 60.5 percent rate, 3.9 points above the national index. Manufacturing ERP software can help contribute to the industry's continued expansion by automating and streamlining every step of a manufacturer's business processes.

Federal bill could boost U.S. manufacturing

A bill that would create a National Network for Manufacturing Innovation passed a voice vote in the House this week and is back in the Senate, where a committee approved it in the spring, for a full vote. The Network, which has already received support from senators from both parties as well as Commerce Secretary Penny Pritzker, would create manufacturing innovation centers funded with both private and public money, including from universities, federal agencies and state and local governments.

A pilot institute centered around additive manufacturing was created in Youngstown, Ohio, in August 2012, and it currently includes 40 companies, 11 non-profits, nine research universities and five community colleges. Three more, focusing on the areas of composite materials, digital manufacturing and next-generation energy sources, have also been approved. The Network is modeled on the German Fraunhofer Society, which already oversees seven institutes in the United States.

As this blog has mentioned, the Midwest region is the nation's manufacturing leader, but officials warn that the entire country needs to work to ensure that the sector continues to move forward. "The reality is if we under-invest in our future, we're going to be left behind," said Pritzker.

And even regions that already have a strong manufacturing sector can benefit from the presence of major innovation centers, as Youngstown has. According to the incubator's COO, the institute has helped local manufacturers implement modern technology to boost their production.

Manufacturing ERP software is one technological solution that can help companies by streamlining every step of their operations, from the planning and inventory stages to distribution.

Japanese manufacturers to build plant in Boone County

Two Japanese manufacturers, Fukai Manufacturing Company and Toyoda Iron Works, have established a joint venture that will build a plant in Jamestown and bring new jobs to the area. Fukai Toyotetsu Indiana Corporation (FTIC) will invest $73.5 million in the construction of a 151,000-square-foot facility that is expected to be operational in the spring of 2016. The consortium will employ 195 workers by 2017.

Lieutenant Governor Sue Ellspermann joined the company's executives for the official announcement.

"Indiana continues to benefit from our strong relationships with the Japanese business community," she said. "On my trade mission to Japan earlier this year, we discussed the opportunity of Fukai coming to Indiana. They now join 240 Japanese business facilities across the state employing more than 44,000 Hoosiers. We celebrate our friendship with Japan, with the success of businesses like Fukai in our sister state Tochigi Prefecture bringing jobs and investment back to Indiana."

Japanese companies make up a significant part of Indiana's booming manufacturing sector, with American and Japanese enterprises coming together to strengthen business and community relations as members of the Japan-America Society of Indiana.

"The partnership during the entire process has been remarkable," said Jamestown council president Bryce Huckstep. "Members of the town felt a deep and genuine appreciation and connection with the members of FTIC very early in our conversations. Also, to have representatives from Boone County step up and support Jamestown in this project has been outstanding. We are proud to be part of the county, and proud to welcome such a wonderful company to our community."

Manufacturing ERP software can help the region's companies manage every step of the production process, ensuring the continued good health of the manufacturing industry.

Huntington Aluminum to expand, double workforce

Metal recycling company Huntington Aluminum announced plans this week to expand operations with the construction of an addition to its plant, while also doubling the number of employees over the course of the next three years. An investment of $2.76 million will allow for a 40,200-square-foot expansion to its Huntington facility. The company, which currently employs 40 people, will begin hiring in October and add 41 manufacturing jobs between then and 2017.

Eric Doden, president of the Indiana Economic Development Corporation, noted that the company's success is especially remarkable after a fire at the plant earlier this year. His organization has offered Huntington Aluminum up to $300,000 in conditional tax credits and training grants, which it will receive if it meets its job creation goals. Both the city of Huntington and Huntington County also approved incentives, leading to the company's decision to expand on site.

"We are pleased that the state of Indiana, the city of Huntington and Huntington County are all helping us grow right here in Huntington," said owner Roger Kilty. "We were at a crossroads: either stay as we are and turn away business or expand. We've chosen to expand in Indiana."

Huntington mayor Brooks Fetters and Larry Buzzard, the president of the county's Board of Commissioners, were pleased with the news. "The company believes in our community so strongly that it is willing to brand our city's and county's name itself into their business identity," said Fetters.

Added Buzzard, "Our economic development team is especially eager to help locally owned industries grow."

For Indiana's booming manufacturing sector, locally available ERP solutions can help boost business. Manufacturing ERP software allows businesses to manage every step of the process, from inventory planning to distribution.

Indiana leads nation in GDP weight of manufacturing

Online business publication 24/7 Wall Street released a list of "10 states where manufacturing still matters," based on the percentage of the state's gross domestic product (GDP) that depends on the sector. At the top of the list is Indiana, whose manufacturing industry generates 30.1 percent of its GDP, putting it just ahead of second-place Oregon (29.8 percent). In 2013, Indiana's manufacturing output was $95.3 billion, sixth highest in the nation. Rounding out the top five were Louisiana, North Carolina and Michigan.

The report notes several other statistics about Indiana's economy and the important role that manufacturing plays. As far as production of nondurable goods, more than half of all output was chemical products, representing 8.9 percent of the total GDP. Indiana also ranked sixth nationally in manufacture exports, which totaled $61.9 billion in 2012. Finally, while the manufacturing industry produces almost a third of the GDP, only 19 percent of all the state's jobs are in that sector.

The hiring data was also highlighted by a recent report from the Institute for Supply Management, where employment was the only area in which the Midwest's manufacturing industry did not grow. Still, the statistics are overwhelmingly positive for the state of Indiana's manufacturing industry, with several businesses announcing plans to expand their facilities or relocate to the area in recent weeks.

Indiana's manufacturers have many software resources available from local companies to aid in the smooth running of their operations. Manufacturing ERP software comes with features to plan and track every step of the production process, from inventory to distribution. Sales data can be processed in order to develop an ideal marketing strategy. Job costing and business management software solutions are a vital tool for any manufacturing enterprise.

Samtec to build new manufacturing plant in Scottsburg

Electronics manufacturer Samtec has announced that it will begin building a new 70,000-square-foot facility in Scottsburg, in southern Indiana. The plan calls to break ground this month or next and finish construction by mid-2015 in an area adjacent to the Mid-America Science Park (MASPark). With the move, 300 new jobs will relocate to the region.

Samtec, founded in 1976 and headquartered in New Albany, makes cables and other connectors and employs 4,000 people worldwide, with manufacturing plants from Costa Rica to Singapore. Of the new factory, the company's global facilities manager said, "The new facility will help us streamline operations in southern Indiana and provide greater efficiencies in distribution and logistics. Scottsburg has numerous economic amenities that align with our global growth initiatives as a service and quality leader."

The city and MASPark also hope that the facility will attract new entrepreneurs in the electronics sector to what is already one of America's premier manufacturing regions. "This is exactly what the community's leadership set out to accomplish when they envisioned, planned and built a world-class science park in Scott County," said MASPark's executive director. The park's construction was the result of a community effort that began in 2004.

Southern Indiana's manufacturing sector has experienced accelerated growth for several months, cementing its place as one of the state's main economic drivers. The recently released Chicago Business Barometer, which showed overwhelmingly positive data, revealed that the one area that has been slow to recover has been employment. A major new facility such as this one is therefore very good news for the region.

The Midwest's manufacturers have locally available business management software solutions at their disposal to help streamline their operations. Inventory, job costing and manufacturing software are all useful tools for a company to thrive in a competitive sector.

Manufacturing growing fast around Midwest

The Institute for Supply Management (ISM) published the latest edition of its Chicago Business Barometer, which gauges the state of Midwestern economic activity, and the results were overwhelmingly positive. The ISM's manufacturing index, which is based on a survey of the region's manufacturers, jumped to 64.3 in August, a monthly increase of more than 11 points that surpassed analysts' expectations. Historically, the index has shown a strong correlation with variations in the nation's gross domestic product.

The index had fallen in July, but the rebound made up for all lost ground and more, as most observers had predicted. "We had speculated that July's downturn would prove temporary rather than signal the start of a downward trend," said the report's editor. "The sharp bounceback in August, with growth in output at the highest in nearly 10 years, suggests that growth in the U.S. economy will continue apace in Q3."

Indeed, the survey's Production component rose to levels not seen since 2005, and both New Orders and Order Backlogs also grew sharply. Of the six elements the index takes into account, only Employment fell in August. Overall, the Barometer is at its highest level since May and approaching its highest ever.

The index is more good news for the manufacturing sector, which is one of the main economic motors of Indiana and the entire Midwest region. Manufacturing ERP software can be a vital tool for a company to contribute to the sector's further growth. With an enterprise resource planner, a business can manage and keep track of all its essential functions, from the early stages of production to distribution. These software business solutions are available from local companies, who understand the specific needs of the region's manufacturers.

Manufacturing product recovery company HPS relocates to Greater Indianapolis

British product recovery company HPS has announced the relocation of its North American headquarters to the Indianapolis suburb of Fishers. HPS, based in Nottingham, develops customized product-recovery systems for manufacturers. The systems allow for the hygienic transfer of liquids for chemicals, food (including pet food) and drink, household and personal care products and paint. Through the process know as pigging, which involves pressurized pipeline flow, this technology allows for the recovery of most of the product which would often be lost during transfer.

The company's decision to move its North American HQ to Indiana from the East Coast was motivated largely by geographic location. CEO Gilbert Murphy explained that the new location "will enable us to efficiently reach the majority of our customers and to focus on further expanding our North American sales, engineering and customer-care operations." Existing customers already include The Coca-Cola Company, Kraft Foods, Procter & Gamble and Unilever, as well as small and medium-sized manufacturers.

The move is also further evidence of Indiana's preeminent position in America's manufacturing industry, a fact that is not lost on HPS sales director Jim Rowe. "We already provide services to a number of Midwestern manufacturers," he says, "and our new office in Fishers provides us with the resources and central location that will enable us to meet our aggressive business expansion and customer-service objectives."

Nearly a third of Indiana's GDP comes from manufacturing, according to the most recent data. Manufacturing ERP software can help local companies get ahead by organizing all of their business activities in one place. Inventory, marketing, payments and shipments can all be easily logged and tracked with software that is adjustable to the needs of each individual enterprise.

Three Floyd County companies to expand manufacturing facilities

The New Albany city council recently granted tax abatements to three locally based companies after they presented plans to expand their manufacturing facilities, further boosting Southern Indiana's already thriving manufacturing sector. The three businesses are Advance Fabricators, Bruce Fox and L&D Mail Masters, who will be adding approximately 55 new jobs in total over the next few years.

Advance Fabricators, founded in 1975, is a full service engineering and machining company whose business, including a large distribution network of screw conveyor parts for harvesters and other field equipment, expands into northern Kentucky. Per their expansion plan, they will be employing a $2.1 million investment capital to build a new 6,000-square foot annex with eight new fabrication stations, adding about 20 new full-time jobs to their current workforce of 25.

Bruce Fox, Inc. has been based in New Albany since its founding in 1938. The company designs and manufactures trophies for major racing series including IndyCar and NASCAR and awards for BET and the World Car of the Year. They also produce seals for public offices and other high-profile organizations. Bruce Fox will be investing $1.2 million to renovate its facility, allowing for product expansion and the addition of 27 new jobs by 2018.

Finally, direct marketing firm L&D Mail Masters will be investing $2.1 million in eight new positions and a significant expansion of operations through the acquisition of a cutting-edge mail processing system. Mayor Jeff Gahan was pleased with the expansion plans: "We believe these projects and other recent expansion efforts are evidence of the growing business sector and improved economy in New Albany and herald more success to come."

Manufacturing business software can help other companies in the booming manufacturing sector find success and grow through the use of technology that will improve their operations.