ASHLAND — The manufacturing industry has been on a roller coaster ride since COVID, according to Ethan Karp, CEO of The Manufacturing Advocacy and Growth Network (MAGNET).
Karp spoke at Ashland University’s Dauch College of Business and Economics on Tuesday. He pondered the future of manufacturing and said the industry has shown resiliency over the last five years.
He noted the industry pivoted to produce personal protective equipment during COVID, created a vision to lead the world in smart manufacturing and has continued to grow nationwide manufacturing output.
But, no matter how you slice it, the pandemic and its aftermath laid bare four key challenges facing the future of manufacturing:
- Workforce
- Technology
- Sustainability
- Resilience
Karp’s speech offered insights on each of these challenges, along with possible solutions to them.
“This is the heartland of manufacturing,” Karp said. “And we are in the midst of a messy and challenging but incredibly powerful transformation from the rust belt to the technology belt.
“Despite all of our ups and downs, manufacturing is still a powerhouse.”
State of the manufacturing industry
Manufacturing has long served as a leading industry in the state of Ohio, and in the northeast region.
Per 2022 measurements from Ohio Labor Market Information data, it’s the largest industry in Ashland County, making up about 21% of the county’s jobs.
Even so, Karp said the manufacturing industry employs fewer people today than it did in the 1970s. Domestic manufacturing, he added, isn’t growing quickly enough to outpace China, and the U.S. has an over-reliance on goods manufactured in China.
“Manufacturing is great, and it’s also not great enough,” Karp said. “We’ve made amazing progress in all this smart manufacturing and putting in all this technology, but there’s still some immense challenges.”
The “silver tsunami,” as Karp called it, means at least 10,000 Baby Boomers are retiring nationwide each day. There aren’t enough people to replace them. Plus, Karp said many manufacturers have been hesitant to embrace innovation — something he thinks could hobble them in the long run.
“These are real challenges, but the only way we’re gonna overcome these is together,” Karp said.
So, what’s the solution?
In Karp’s estimation, it’s a combination of things. The first step comes with investing in the next generation.
He shared how MAGNET has gone out of its way to recruit employees to the manufacturing industry who might not traditionally seek it. That includes people with disabilities, women, veterans, people returning to the workforce from prison and people of color.
Karp added MAGNET encourages manufacturers to hire people who understand the importance innovation can have to their workplace. Technology skills are the new trade skills, he said.
But even though technology is transforming the way the manufacturing industry makes things, robots can’t replace people.
So, while Karp encouraged the ideas that manufacturers to invest in updated technology and sustainability efforts, he also emphasized the importance of making the industry a great place to work.
The challenge is now how to use all of these lessons of the past to fuel our progress forward, and not let anything hold us back.
Ethan Karp
Companies can do that in a variety of ways: upskilling employees, paying competitive wages and creating a better workplace culture.
Karp also said the pandemic showcased America’s reliance on China. It laid bare a need for investments in the future of American manufacturing.
“We cannot let our pharmacy shelves go bare the next time a crisis hits,” Karp said.
Still, change doesn’t happen overnight. But Karp said investments like the CHIPS Act passed under President Joe Biden’s administration and the AI infrastructure investment President Donald Trump announced have had a major impact in bringing manufacturing back to the country.
Plus, the tariffs Trump announced — should they stick — could offer opportunities for domestic manufacturers in the long run, according to Karp.
He said prices would increase, and there may be struggles in the short term. But he projected in the long term, tariffs could encourage more manufacturing investment domestically.
Making progress
Karp’s comments were followed by a question-and-answer period, where students quizzed him about networking tips, advice and the industry’s future.
AU senior supply chain management and business management student Bryce Lambert said he thought Karp’s presentation was “very, very interesting.”
Lambert said he thinks people should respect manufacturing, and strengthening the industry in America is important — especially because he views America’s approach as more ethical than its competitors.
Lambert added he thinks people don’t realize the progress the field has made.
Karp’s comments touched on that idea too. He said the prevailing view of manufacturing can be a stereotype of a dark and dirty workplace, when that’s not the reality anymore.
“The challenge is now how to use all of these lessons of the past to fuel our progress forward, and not let anything hold us back,” Karp said.
