American Manufacturing: What Separates Winners from Losers

In the evolving story of American industry, innovation has consistently played a leading role. As someone deeply embedded in legacy sectors, such as steel and the pulp and paper industry, I have witnessed firsthand the significant transitions these industries are undergoing.?

Despite the relentless pressures of global competition, these sectors remain vital pillars of the American economy. The shift from “this is the way we have always done it” to “we cannot survive doing it the way we have always done it” showcases the transformative power of innovation. There is a need, a desire, to keep these facilities around while they “trust but verify” new technologies.?

For decades, tradition has formed the backbone of our industrial operations. Steel and paper mills have relied on industry practices refined and tuned over generations, which has enhanced America’s economic growth and secured global dominance. However, as globalization intensified, American industries faced challenges from abroad, from technological advancements to newer facilities and cheaper labor – the call to change has become impossible to ignore.?

In recent years, I have seen a profound shift in the attitude towards innovation within legacy industries. The tradition of the past relied on labor and brain trust. However, today, we are increasingly losing that brain trust every day and struggling to retain labor when it is competing against the work-from-home generation.?

While these facilities can only do so much, they can leverage tools that make their employees more effective and good practices scalable with the help of technologies. However, tools are only tools if they are used correctly – it’s a culture of innovation that really sparks change.?

For instance, the steel industry, a sector close to my heart growing up in Youngstown, Ohio, has historically been plagued by environmental concerns and market vulnerabilities. The industry is now exploring breakthroughs in sustainable production. Innovations like electric arc furnaces, which enable steel recycling with reduced emissions, are transforming the landscape and are being embraced by local communities throughout the southern United States. At the integrated sites, we are seeing how advanced robotics and AI-driven platforms are optimizing CapEx decisions, enhancing efficiencies, and ensuring uptime so when they are called on to deliver virgin-grade steel, they are ready.?

Similarly, the pulp and paper industry is embracing sustainability and economic viability through innovation and a strong domestic e-commerce industry. The influx of younger engineers working alongside seasoned experts is fostering knowledge transfer and innovation through tools they learned in college and see on the internet. Digital transformation through smart sensors, robotics, and data analytics is optimizing the production process, minimizing downtime, and ensuring high-quality output. Data is being utilized as the “arbitrator of subjectivity.”??

These advancements are not just about staying competitive; they are redefining what our industries can achieve. By embedding sustainability and efficiencies at their core, these industries are set to undergo a renaissance, when just 20 years ago, the future looked bleak. Furthermore, as we de-globalize, we can attribute our success to the grittiness of our factories that learned to adapt.?

To sustain this momentum, continued investment in innovation is essential. While the government can help with policy and tariffs, our internal competition and drive to learn from our mistakes and embrace what can work are critical. Equally important is a cultural commitment within these industries – to embrace change management and continuous improvement. I have seen a mid-30s talent pool blossom and set the groundwork for decades to come.?

In conclusion, American innovation extends beyond the latest gadgets or digital revolutions from Silicon Valley and Wall Street. It is flourishing in our heartland and rural communities, rooted in the legacy industries of manufacturing. This innovation is transforming the way we produce, compete, and win! We can ensure these critical industries remain vital to America’s enduring success by fostering a spirit of innovation. The tools have changed, the landscape has been altered, and the American spirit has and will continue to endure.?

Written by Michael-Paul Jenkins , Manufacturing Lead at Gecko --> Contact me at [email protected] or Book Time Here .