1. Moving to Manufacturing 5.0

2. IndustryWeek-Netsuites Mechanization Electricity IT IoT
John Glenn College of Public Affairs & Ohio Manufacturing Institute
Are there four?
IndustryWeek-Netsuites
Mechanization
Electricity IT
IoT
German Machine Tool Industry
Mechanical
American System
PLC
Cyber-physical systems
Source: Norsworthy, John R. & Diana H. Tsai Macroeconomic Policy as Implicit Industrial Policy. Springer

3. John Glenn College of Public Affairs & Ohio Manufacturing Institute
ECONOMY

4. Growth in hourly earnings is slowing, especially in manufacturing
John Glenn College of Public Affairs & Ohio Manufacturing Institute
Sept. 2017, Growth in average manufacturing hourly earnings 2.14%
Growth in hourly earnings is slowing, especially in manufacturing
Dollar has increased in value
From Jan 2012 to Dec 2017:
Trade weighted value of the dollar: 19.2%
Dollar to Yen: 45%

5. Great Recession & Auto Recovery
John Glenn College of Public Affairs & Ohio Manufacturing Institute
Monthly manufacturing employment relative to January 205 Levels
Three phases of manufacturing employment:
Global sprint to East Asia
Structural decline based on labor cost & new markets
2) Great Recession and the auto-led recovery 2007 to 2013
3) Digital recapitalization: on
Global sprint to East Asia 2000 to 2003
Great Recession & Auto Recovery
2007 to 2013
Digital
Recapitalization 2013
Jan 2000: ,284,000
Jan 2005: ,027, %
Jan 2010: -2,797, %
Oct 2017: ,021, %
Source: US Bureau of Labor Statistics

6. Domestic Auto Production Monthly, SA Dropping
John Glenn College of Public Affairs & Ohio Manufacturing Institute
Domestic Auto Production Monthly, SA Dropping
Blue line: Monthly production at an annualized rate Red line: Unit change over the previous 12 months

7. John Glenn College of Public Affairs & Ohio Manufacturing Institute
Promise of increases in real output per worker continues Improve U.S. competitive position; NextLean 2.0 is emerging; Challenge development strategies for emerging market economies
Migration to Industry 5.0 has begun It is slow and productivity growth has stalled
Source: US Bureau of Labor Statistics

8. John Glenn College of Public Affairs & Ohio Manufacturing Institute
Not much going on after the revival of he auto industry
New orders of Nondefense capital goods 12-month dollar change 2005 to 2017

9. John Glenn College of Public Affairs & Ohio Manufacturing Institute
12 Month Percent Change in Shipments of Nondefense Capital Goods, Excluding Airplanes Shipments Picked up starting in Janaury
Blue line: Value of Shipments
Red line: Annual Percent Change

10. Manufacturing Capacity Utilization: Is 75% new normal?
John Glenn College of Public Affairs & Ohio Manufacturing Institute
Manufacturing Capacity Utilization: Is 75% new normal?
Digitally integrated production will increase utilization of existing space

11. The challenge of the digital enterprise
John Glenn College of Public Affairs & Ohio Manufacturing Institute
The challenge of the digital enterprise
ERP, IoT, Industry 4.0, & Manufacturing 5.0

12. John Glenn College of Public Affairs & Ohio Manufacturing Institute
What is Manufacturing 5.0? Part of the The Digitally Integrated Enterprise
Machines: Digitally controlled & integrated
Production: Digitally integrated with supply chain
Supply chain: Digitally traceable
NextLean: Digital utilization and integration
Enterprise Resource Planning System [ERP]: Digital integration with customers
Productivity
Physical output will take quantum leaps
Mass customization becomes possible
The Holy Grail ~ Printable Dies
The Holy Nightmares ~ Cybersecurity, Systems Integration, Grid and competitive electricity markets

13. John Glenn College of Public Affairs & Ohio Manufacturing Institute
Where do SMMEs fit?

14. The Digital Enterprise
John Glenn College of Public Affairs & Ohio Manufacturing Institute
The Digital Enterprise

15. John Glenn College of Public Affairs & Ohio Manufacturing Institute
Internet of Things

16. John Glenn College of Public Affairs & Ohio Manufacturing Institute

17. The New Occupational Job Ladder
John Glenn College of Public Affairs & Ohio Manufacturing Institute
The New Occupational Job Ladder

18. Manufacturing 5.0 Competencies
John Glenn College of Public Affairs & Ohio Manufacturing Institute
Manufacturing 5.0 Competencies
Industry 5.0 Skills Industrial Maintenance Technician
Near-future revolves around digital integration
Engineering technologists & manufacturing generalists
Problem solving
Digital computation
Mechanical engineering
Electrical engineering
Metals and materials
Process engineering: translate complex, continuous processes into something that can be programmed on & across a machines.

19. Manufacturing 5.0 Worker Skills & Competencies
John Glenn College of Public Affairs & Ohio Manufacturing Institute
Manufacturing 5.0 Worker Skills & Competencies
Connect heads and hands
Understand both business and technology
Identify and solve issues in advance
Think deductively and experimentally
Understand that soft skills are as important as technical skills
Interpersonal aptitude
Ability to work in diverse teams
Lead a team: Service leadership
Communicate: calculate, speak, write, visualize

20. The Charge: Solve the Immediate Work on the Important
John Glenn College of Public Affairs & Ohio Manufacturing Institute
The Charge: Solve the Immediate Work on the Important
Immediate: Skilled machinists in all forms
Management forgot how to train
Paying the price for 20 years of disinvestment
Challenge of qualifying workers
The donut hole ~ transferring knowledge
Important: Industry 5.0 Skills
Mechatronics; Industrial Maintenance Technician
Engineering technologist
Digital integration ~ From digital factory floor to ERP
Next generation continuous improvement
Important: Plant Leadership

21. The Manufacturers’ Workforce Challenges
John Glenn College of Public Affairs & Ohio Manufacturing Institute
The Manufacturers’ Workforce Challenges
Demographics
Slow growth rates
Replacing the Boomers
Four Manufacturing Workforce Challenges
Immediate: Traditional occupations
CNC, welding, possibly tool & die, etc. 
Looming: Manufacturing 5.0 skills
Benefits Block to flexible hiring
Finding plant-level leadership and filling the donut hole

22. Thank you Ned Hill The One-handed Economist:
John Glenn College of Public Affairs & Ohio Manufacturing Institute
Thank you
Ned Hill The One-handed Economist: