Insight on Manufacturing

July 2013

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EDITOR'S NOTE | NIKKI KALLIO n k a l l i o @ i n si g h t o n b u si n e ss. c o m Making connections I n a n i n c r e a s i n g ly c o n n e c t e d w o r l d , manufacturing is becoming more connected, too. Company officials, for example, are seeing opportunities in the fact that most of their employees now carry smart phones, and they're tapping into that convenient tool as a way to better communicate information to their workers. "We were having to rely on, 'Did you walk from your forklift the 1,000 feet to the bulletin board to see about the company picnic?'" says Chris Moore, vice president of information technology at Uponor, Inc., a plumbing and heating systems manufacturer based in Appleton (see cover story, p. 9). Now, manufacturers are able to deliver such information in a more efficient and effective way. Additionally, they're finding ways to connect the large amounts of data that manufacturing companies use every day, such as billing systems, delivery systems and customer service. Support companies such as Skyline Technologies Inc., NSC and Wipfli, as well as new companies like Red e App, are seeing the opportunities in helping manufacturers to streamline and deliver information. Opportunities can sometimes exist where some might see only headaches. A case in point, the recent Securities and Exchange Commission regulation that mandates companies report the use of conflict minerals (see "Insight From," p. 22). Jeff French of Grant Thornton explains that this regulation can help manufacturers demonstrate a commitment to sustainable practices – something that is important to many clients and consumers. Conflict minerals are the raw materials mined in the Democratic Republic of the Congo, often by groups responsible for grave human rights abuses. These materials are used to produce gold, tin, tantalum and tungsten – metals commonly used by manufacturers. While the use of such minerals are not prohibited, now companies must report whether or not they are using them, which may encourage many manufacturers to look elsewhere for materials. The public is gaining a stronger understanding of the link between the products they buy and the impact on the people who provide the materials or assembly for the products. The widely publicized Rana Plaza clothing factory collapse in Bangladesh, which killed more than 1,100 workers, has at least some consumers thinking more about where their products come from, asking questions and demanding change. While companies in the United States do not cause factories overseas to collapse and do not cause human rights abuses to occur in the DRC, accepting the materials and products from these suppliers without question is irresponsible to the global community, and makes both companies and consumers unwitting facilitators of continued carelessness and abuse. Communicating conflict material policies can help open up new supply chains and facilitate positive change instead. So can working together and developing new partnerships. As manufacturers struggle with the ongoing challenges of finding the skilled workers they need, they're turning to education to help solve the problem. Some companies in the Manitowoc County area are investing in Lakeshore Technical College's $6.1 million capital expansion project to boost educational capacity in the high-demand areas, so much so that the college won't need to take the project to referendum (see "Expanding Partnerships," p. 19). Both the college and area companies know the payoff will be far greater than the cost. F w w w.in s i g h t o n m f g . c o m July 2013 • / insight on manufacturing |7

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