by Norman Halls, contributor
Having an understanding of local businesses and manufacturing could save the local economy that supports education and the municipal progression. Recently, a journalist was interviewing a group from a steel town as to their thoughts on why the steel company shut down. They really didn’t have an answer as to why and who closed the plant. They would of course like the steel company back. But, the former employees will have to be trained for today’s technology. The local union officials, politicians and the state Economic Development Office should have kept their eye on the business.
In the report, Governance and Development Review, it said: “the answer lies in the interaction of two factors: the technical and economic characteristics of the different industrial sectors; and the political and bureaucratic characteristics of the respective local governments.” The approach that is needed, and the local industry and municipality should coordinate efforts to prevent businesses leaving their community. In Memphis, TN, a medical device industry has a $2.6 billion impact on the local community and nearly 17,000 employees. But, because of the lack of a trained workforce, they were considering going off shore. The local Chamber of Commerce said: “If we don’t get serious about this and start seeing some ways to address this issue, we’re going to be left behind.” Groups came together to develop a plan to train and assist in upgrading equipment for the manufacturer. John Threadgill, of the Chamber of Commerce said: “What we dismissed 20 years ago as something that wasn’t important to the economy anymore, and just kind of let it go, is coming back now in the place of career and technical education.”
Business and industry today are looking at their cash flow and keeping their inventory low. They need to keep their customer satisfied with quality products they can deliver on time. Last year, a report out of Canada said: businesses are moving their production back. Many have stopped the endless “should we stay or go” debate. Companies have adopted the LEAN manufacturing principles.
Many small cities depended on one large company. Looking from the outside, it seemed to be operating normally, but it was slowly dying inside. There have been many manufacturers that left “the rust belt” for the Sunbelt. Many southern states accepted the businesses with tax breaks, training workers and building plants. In Peoria, IL is the Caterpillar manufacturer, they almost lost the company by moving. Mayor Ardis of Peoria said: “keeping Caterpillar happy is a top priority”. The Mayor meets with the CEO of Caterpillar quarterly and with the company’s community service representatives almost daily, addressing needs such as workforce development and infrastructure.
Upjohn Institute for Employment Research’s, George Erickcek, senior regional analyst says: “Companies are hesitant to set up shop where another employer pays more for the same skills in a thin labor market, fearing they may simply become training grounds for larger businesses.” He states, ”All these communities know having all your eggs in one basket is not a good thing.”
Today, politicians or educators know there is always anxiety about the future of the local economy. Growth stems from many local businesses. But, are they the sustaining businesses that can develop the local community? We all need the small business in the area. But, it’s the larger companies taking the dollar from outside the local community that brings growth.
Who do we blame for the loss of jobs? “A technology revolution is fast replacing human beings with machines in virtually every sector and industry in the global economy. Already, millions of workers have been permanently eliminated from the economic process, and whole work categories and job assignments have shrunk, been restructured, or disappeared,” said Jeremy Rifkin, New Technology and the End of Jobs.
Manufacturing has long been a cornerstone of our economy. Today, we seem to depend solely on service type employment. We lost manufacturing because cities and towns did not diversify. The regions that did not assist with its educational programs by diversifying its educational/training programs for the manufacturer found industry leaving the area. The technology that is needed today is totally different than it was five years ago. It’s important that human capital, with the understanding of expertise, is emphasized in today’s marketplace.
