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A01 STEEL, STAINLESS STEEL AND RELATED ALLOYS A04 IRON CASTINGS A05 METALLIC-COATED IRON AND STEEL PRODUCTS B01 ELECTRICAL CONDUCTORS B05 COPPER AND COPPER ALLOYS B07 LIGHT METALS AND ALLOYS C01 CEMENT C04 VITRIFIED CLAY PIPE C07 LIME AND LIMESTONE C09 CONCRETE AND CONCRETE AGGREGATES C11 GYPSUM AND RELATED BUILDING MATERIALS AND SYSTEMS C12 MORTARS AND GROUTS FOR UNIT MASONRY C13 CONCRETE PIPE C14 GLASS AND GLASS PRODUCTS C15 MANUFACTURED MASONRY UNITS C16 THERMAL INSULATION C17 FIBER-REINFORCED CEMENT PRODUCTS C18 DIMENSION STONE C21 CERAMIC WHITEWARES AND RELATED PRODUCTS C24 BUILDING SEALS AND SEALANTS C27 PRECAST CONCRETE PRODUCTS D01 PAINT AND RELATED COATINGS, MATERIALS, AND APPLICATIONS D04 ROAD AND PAVING MATERIALS D07 WOOD D08 ROOFING AND WATERPROOFING D09 ELECTRICAL AND ELECTRONIC INSULATING MATERIALS D11 RUBBER D14 ADHESIVES D18 SOIL AND ROCK D20 PLASTICS D35 GEOSYNTHETICS E05 FIRE STANDARDS E06 PERFORMANCE OF BUILDINGS E33 BUILDING AND ENVIRONMENTAL ACOUSTICS E36 ACCREDITATION & CERTIFICATION E57 3D IMAGING SYSTEMS E60 SUSTAINABILITY F01 ELECTRONICS F06 RESILIENT FLOOR COVERINGS F13 PEDESTRIAN/WALKWAY SAFETY AND FOOTWEAR F16 FASTENERS F17 PLASTIC PIPING SYSTEMS F33 DETENTION AND CORRECTIONAL FACILITIES F36 TECHNOLOGY AND UNDERGROUND UTILITIES G03 WEATHERING AND DURABILITY C14 GLASS AND GLASS PRODUCTS C21 CERAMIC WHITEWARES AND RELATED PRODUCTS D01 PAINT AND RELATED COATINGS, MATERIALS, AND APPLICATIONS D06 PAPER AND PAPER PRODUCTS D09 ELECTRICAL AND ELECTRONIC INSULATING MATERIALS D10 PACKAGING D11 RUBBER D12 SOAPS AND OTHER DETERGENTS D13 TEXTILES D14 ADHESIVES D15 ENGINE COOLANTS AND RELATED FLUIDS D20 PLASTICS D21 POLISHES D31 LEATHER E12 COLOR AND APPEARANCE E18 SENSORY EVALUATION E20 TEMPERATURE MEASUREMENT E35 PESTICIDES, ANTIMICROBIALS, AND ALTERNATIVE CONTROL AGENTS E41 LABORATORY APPARATUS E53 ASSET MANAGEMENT E57 3D IMAGING SYSTEMS F02 FLEXIBLE BARRIER PACKAGING F05 BUSINESS IMAGING PRODUCTS F06 RESILIENT FLOOR COVERINGS F08 SPORTS EQUIPMENT, PLAYING SURFACES, AND FACILITIES F09 TIRES F10 LIVESTOCK, MEAT, AND POULTRY EVALUATION SYSTEMS F11 VACUUM CLEANERS F13 PEDESTRIAN/WALKWAY SAFETY AND FOOTWEAR F14 FENCES F15 CONSUMER PRODUCTS F16 FASTENERS F24 AMUSEMENT RIDES AND DEVICES F26 FOOD SERVICE EQUIPMENT F27 SNOW SKIING F37 LIGHT SPORT AIRCRAFT F43 LANGUAGE SERVICES AND PRODUCTS F44 GENERAL AVIATION AIRCRAFT A01 STEEL, STAINLESS STEEL AND RELATED ALLOYS A04 IRON CASTINGS A05 METALLIC-COATED IRON AND STEEL PRODUCTS A06 MAGNETIC PROPERTIES B01 ELECTRICAL CONDUCTORS B02 NONFERROUS METALS AND ALLOYS B05 COPPER AND COPPER ALLOYS B07 LIGHT METALS AND ALLOYS B08 METALLIC AND INORGANIC COATINGS B09 METAL POWDERS AND METAL POWDER PRODUCTS B10 REACTIVE AND REFRACTORY METALS AND ALLOYS C03 CHEMICAL-RESISTANT NONMETALLIC MATERIALS C08 REFRACTORIES C28 ADVANCED CERAMICS D01 PAINT AND RELATED COATINGS, MATERIALS, AND APPLICATIONS D20 PLASTICS D30 COMPOSITE MATERIALS E01 ANALYTICAL CHEMISTRY FOR METALS, ORES, AND RELATED MATERIALS E04 METALLOGRAPHY E07 NONDESTRUCTIVE TESTING E08 FATIGUE AND FRACTURE E12 COLOR AND APPEARANCE E13 MOLECULAR SPECTROSCOPY AND SEPARATION SCIENCE E28 MECHANICAL TESTING E29 PARTICLE AND SPRAY CHARACTERIZATION E37 THERMAL MEASUREMENTS E42 SURFACE ANALYSIS F01 ELECTRONICS F34 ROLLING ELEMENT BEARINGS F40 DECLARABLE SUBSTANCES IN MATERIALS F42 ADDITIVE MANUFACTURING TECHNOLOGIES G01 CORROSION OF METALS G03 WEATHERING AND DURABILITY D21 POLISHES D26 HALOGENATED ORGANIC SOLVENTS AND FIRE EXTINGUISHING AGENTS D33 PROTECTIVE COATING AND LINING WORK FOR POWER GENERATION FACILITIES E05 FIRE STANDARDS E27 HAZARD POTENTIAL OF CHEMICALS E30 FORENSIC SCIENCES E34 OCCUPATIONAL HEALTH AND SAFETY E35 PESTICIDES, ANTIMICROBIALS, AND ALTERNATIVE CONTROL AGENTS E52 FORENSIC PSYCHOPHYSIOLOGY E54 HOMELAND SECURITY APPLICATIONS E58 FORENSIC ENGINEERING F06 RESILIENT FLOOR COVERINGS F08 SPORTS EQUIPMENT, PLAYING SURFACES, AND FACILITIES F10 LIVESTOCK, MEAT, AND POULTRY EVALUATION SYSTEMS F12 SECURITY SYSTEMS AND EQUIPMENT F13 PEDESTRIAN/WALKWAY SAFETY AND FOOTWEAR F15 CONSUMER PRODUCTS F18 ELECTRICAL PROTECTIVE EQUIPMENT FOR WORKERS F23 PERSONAL PROTECTIVE CLOTHING AND EQUIPMENT F26 FOOD SERVICE EQUIPMENT F32 SEARCH AND RESCUE F33 DETENTION AND CORRECTIONAL FACILITIES G04 COMPATIBILITY AND SENSITIVITY OF MATERIALS IN OXYGEN ENRICHED ATMOSPHERES D08 ROOFING AND WATERPROOFING D18 SOIL AND ROCK D19 WATER D20 PLASTICS D22 AIR QUALITY D34 WASTE MANAGEMENT D35 GEOSYNTHETICS E06 PERFORMANCE OF BUILDINGS E44 SOLAR, GEOTHERMAL AND OTHER ALTERNATIVE ENERGY SOURCES E47 E48 BIOENERGY AND INDUSTRIAL CHEMICALS FROM BIOMASS E50 ENVIRONMENTAL ASSESSMENT, RISK MANAGEMENT AND CORRECTIVE ACTION E60 SUSTAINABILITY F20 HAZARDOUS SUBSTANCES AND OIL SPILL RESPONSE F40 DECLARABLE SUBSTANCES IN MATERIALS G02 WEAR AND EROSION B01 ELECTRICAL CONDUCTORS C26 NUCLEAR FUEL CYCLE D02 PETROLEUM PRODUCTS, LIQUID FUELS, AND LUBRICANTS D03 GASEOUS FUELS D05 COAL AND COKE D19 WATER D27 ELECTRICAL INSULATING LIQUIDS AND GASES D33 PROTECTIVE COATING AND LINING WORK FOR POWER GENERATION FACILITIES E10 NUCLEAR TECHNOLOGY AND APPLICATIONS E44 SOLAR, GEOTHERMAL AND OTHER ALTERNATIVE ENERGY SOURCES E48 BIOENERGY AND INDUSTRIAL CHEMICALS FROM BIOMASS A01 STEEL, STAINLESS STEEL AND RELATED ALLOYS C01 CEMENT C09 CONCRETE AND CONCRETE AGGREGATES D02 PETROLEUM PRODUCTS, LIQUID FUELS, AND LUBRICANTS D03 GASEOUS FUELS D04 ROAD AND PAVING MATERIALS D15 ENGINE COOLANTS AND RELATED FLUIDS D18 SOIL AND ROCK D24 CARBON BLACK D35 GEOSYNTHETICS E12 COLOR AND APPEARANCE E17 VEHICLE - PAVEMENT SYSTEMS E21 SPACE SIMULATION AND APPLICATIONS OF SPACE TECHNOLOGY E36 ACCREDITATION & CERTIFICATION E57 3D IMAGING SYSTEMS F03 GASKETS F07 AEROSPACE AND AIRCRAFT F09 TIRES F16 FASTENERS F25 SHIPS AND MARINE TECHNOLOGY F37 LIGHT SPORT AIRCRAFT F38 UNMANNED AIRCRAFT SYSTEMS F39 AIRCRAFT SYSTEMS F41 UNMANNED MARITIME VEHICLE SYSTEMS (UMVS) F44 GENERAL AVIATION AIRCRAFT F45 DRIVERLESS AUTOMATIC GUIDED INDUSTRIAL VEHICLES D10 PACKAGING D11 RUBBER E31 HEALTHCARE INFORMATICS E35 PESTICIDES, ANTIMICROBIALS, AND ALTERNATIVE CONTROL AGENTS E54 HOMELAND SECURITY APPLICATIONS E55 MANUFACTURE OF PHARMACEUTICAL PRODUCTS E56 NANOTECHNOLOGY F02 FLEXIBLE BARRIER PACKAGING F04 MEDICAL AND SURGICAL MATERIALS AND DEVICES F29 ANESTHETIC AND RESPIRATORY EQUIPMENT F30 EMERGENCY MEDICAL SERVICES G04 COMPATIBILITY AND SENSITIVITY OF MATERIALS IN OXYGEN ENRICHED ATMOSPHERES C07 LIME AND LIMESTONE D14 ADHESIVES D16 AROMATIC HYDROCARBONS AND RELATED CHEMICALS D20 PLASTICS D26 HALOGENATED ORGANIC SOLVENTS AND FIRE EXTINGUISHING AGENTS D28 ACTIVATED CARBON D32 CATALYSTS E13 MOLECULAR SPECTROSCOPY AND SEPARATION SCIENCE E15 INDUSTRIAL AND SPECIALTY CHEMICALS E27 HAZARD POTENTIAL OF CHEMICALS E35 PESTICIDES, ANTIMICROBIALS, AND ALTERNATIVE CONTROL AGENTS F40 DECLARABLE SUBSTANCES IN MATERIALS E11 QUALITY AND STATISTICS E36 ACCREDITATION & CERTIFICATION E43 SI PRACTICE E55 MANUFACTURE OF PHARMACEUTICAL PRODUCTS E56 NANOTECHNOLOGY F42 ADDITIVE MANUFACTURING TECHNOLOGIES
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ProVocative

ProVocative

Manufacturing and U.S. Competitiveness

An Interview with Deborah L. Wince-Smith, President and CEO of the Council on Competitiveness

As president and CEO of the Council on Competitiveness — a coalition that includes leaders from business, labor and academia — Deborah L. Wince-Smith speaks about her organization’s work to make the United States more competitive globally.

What has been the response to the report, MAKE: An American Manufacturing Movement? What effects are being felt from it?

The critical importance of manufacturing as a driver for future U.S. prosperity, economic growth and national security cannot be overstated. For some time, there was the view that we could focus on high-end design and advanced R&D and outsource manufacturing to the rest of the world because of a lower wage strategy. That thinking has now been debunked; productivity gains at home and the rising cost of doing business abroad, among other things, have shifted the focus to domestic manufacturing, and the Council on Competitiveness has played a very important role in that change. If we do not maintain advanced manufacturing throughout the nation’s industrial base, we will lose our next generation innovation capacity and will see a lower standard of living.

We were very pleased that President Obama made manufacturing a big part of the 2012 State of the Union address. There are initiatives in the administration now as well as in both parties in congress related to opportunities for manufacturing.

The Council has played a role. Two years ago, as part of our emphasis on manufacturing, we released the first ever study, which we did with Deloitte, about what global CEOs are thinking about manufacturing competitiveness. Those concepts, in an overall strategic sense, were center stage in the State of the Union address.

There is a big thrust right now, which is very exciting, to take the recommendations of our report, “Make: An American Manufacturing Movement,” across talent, technology, investment and infrastructure, and actually work at the state and regional level with Council members — our university presidents, our CEOs and our labor leaders, in addition to our nation’s lab directors — to begin to develop regional hubs for this manufacturing transformation.

One of the important contributions we’ve made in the report and in this work is to paint a picture of what 21st century manufacturing is. It is not just the mid-20th century work of making something in an assembly line environment with standardized skills and commodity output. We’re talking about today’s most advanced modeling and simulation tools, automation and intelligence in the actual design and fabrication of things. It’s a really exciting convergence of technology, operations and new business processes.

As an example, a company like Walmart is in effect a manufacturer because it is determining, through its huge market demand and supply chain, a lot of the parameters and standards about how things are going to be made and designed and what some of their features will be. That demand-driven part of manufacturing is very important. In the past, manufacturing was very much separated, in a silo, away from core ideation, concept, design and R&D. You’d make a prototype and it would be thrown over the fence to someone to manufacture. That’s still true in some industries and companies where they finish a prototype and then outsource it to contract manufacturers all over the world. But, increasingly, the advanced players are integrating all of the process.

What is the most important “Make” report recommendation to advance the competitiveness of U.S. manufacturing?

Overall, I think the most important report recommendation is that we have to move away from a capital cost and regulatory environment, that focuses on consumption and the short term, to an innovation-centric environment that rewards and provides incentives for long-term investments and deployment at scale. That recommendation gets into tax issues and regulatory issues that, according to our work, demonstrate — in spite of the U.S. advantages in talent and R&D — our very noncompetitive capital cost structure and regulatory environment vis-à-vis our global competitors. In the near term, this is a really critical recommendation: that we enact fiscal reform, transform our tax laws and reduce the regulatory and structural costs that impede job creation and advanced manufacturing deployment here.

We have very specific recommendations for the longer term, and the administration is moving on reducing the corporate tax rate and some other things, but we still have a punitive double taxation of revenues and profits for goods that are made outside the United Sates. There is more than $1.3 trillion of overseas profit from U.S. companies that is not being repatriated back to the United States because of our double taxation system.

The other really important priority is to focus again on efforts to double our exports and reduce the trade deficit. Part of that is in the standards base. In addition, longer term issues that relate to R&D, investment, our talent and workforce are absolutely critical, but change is not going to occur overnight.

The manufacturing imperative is so important to our nation’s prosperity and national security that, at the Council, we’re working on this as a nonpartisan, nonlobbying, nontrade association. The Council on Competitiveness is unique in bringing together university presidents, CEOs and labor leaders — and partnering with lab directors — to work toward political consensus around some issues that we can and need to address now. We don’t need to have product liability laws that are pulling more than 2 percent of the gross domestic product out of our economy. We don’t need to have the highest capital cost and innovation-hostile investment climate in the United States. Republicans and Democrats are going to have to come together and each give up some of their sacred cows so that we can move forward as a country.

We chose to call this a manufacturing movement because we have to work together so that all Americans realize manufacturing is not dirty, dumb, dangerous and disappearing. American manufacturing is smart, safe, sustainable and surging. Manufacturing careers, whether you’re a skilled welder or operating an incredibly sophisticated piece of robotics in a fabrication center, are fabulous careers. The jobs will be different than the jobs today, but they’re going to be high value jobs if we do this right.

How do standards lead to improved competitiveness? What are the key MAKE recommendations with regard to standards?

In a broad sense, the report covers the whole set of issues about how countries use standards to advance industry; it also covers nontariff barriers. We call for a more robust, accelerated, public-private partnership with the private sector in the leadership role to begin to develop, in an aggressive, accelerated way, standards for next-generation manufacturing processes and materials so that we are ready as those products move into the global marketplace.

Standards relate to intellectual property as well, and the report contains strong recommendations on dealing with intellectual property on the reform side, but also very important, how it is treated with our global trading partners, which includes increasing intellectual property protection through the Anti-Counterfeiting Trade Agreement.

Some time ago, Japan actually required government procurement of infrastructure with standards that they set to support their industry. That was really a violation of World Trade Organization agreements. Such situations also enable the advancement of the strategy that the Chinese have called indigenous innovation — their way of saying that for their industrial investment and growth, China wants to use Chinese-developed products and companies. One of our recommendations is that China and other rapidly advancing countries should adhere to WTO disciplines with regard to government procurement, the standards process and IP protection.

Our report shows that the diversity and consensus-based solutions of the private sector-led standards system is part of our strength. When you have too much government involvement in setting standards, you also undercut innovation. I’ll give you an example. Some years ago, we were dealing with the whole transition to high definition television, and there was a big effort from the companies that wanted to push analog systems to have the government to adopt their standards. At the same time, others felt that the government shouldn’t be picking winners and losers. What ultimately happened is a wonderful example of the public-private partnership. What the government did, through the U.S. Securities and Exchange Commission, was say that the future standards should be digital, but it didn’t dictate beyond setting that hurdle. It unleashed a huge amount of innovation and competition to go to digital.

Today, we need to be moving aggressively to consensus on standards in emerging areas — everything from electric vehicles to cybersecurity and renewable energy. I think that cybersecurity is one area where, to the extent that we can lead the standards-setting process and establish consensus, standards will have a huge impact on manufacturing and the security of supply chains because cyberthreats now exist in every economic activity.

Standards need to be elevated at the board level and to the attention of CEOs. We need to ensure that we have a good set of incentives and rewards to encourage bright, technology-savvy young people to get into the standards-setting enterprise.

Emerging economies are developing significant manufacturing and innovation capabilities. What lessons might the United States learn and apply from other nations?

I think the most important lesson that we should learn and apply is one that most countries around the world understand: if you do not make things, you lose the ability to grow your talent and move to higher value activities.

Countries all over the world, whether Brazil, Singapore, Turkey, or others, have very sophisticated public-private partnerships to attract high value investment for manufacturing and infrastructure development. At the same time, these countries are moving ahead very aggressively to train their work force and create a regulatory environment to attract companies worldwide when they look for places to establish next-generation facilities, in addition to being very important markets. We have had a much more laissez faire attitude in the United States; we are just now beginning to increase a focus on efforts to invest in America.

Another factor is most countries have sophisticated and capitalized national development and infrastructure banks. We have the Export-Import Bank of the United States, which supports loan guarantees for exports and is very important, but we don’t have any capacity for an infrastructure bank to contribute to the long-term, extremely large investments required for increasing our advanced manufacturing infrastructure capacity.

For example, the Brazilian development bank — BNDES — regularly disburses more, on an annualized basis, than the World Bank. It is capable of taking startup companies and rapidly scaling them. In the United States, we have a fabulous engine of startup capacity, but startup companies have to move through various rounds of venture capital funding that take a long time unless the company can create a huge market overnight. That situation really affects how we can grow and develop technology in the United States to deal with the greatest challenges and opportunities facing our nation.

Large multinational corporations often make headlines and garner extensive press coverage, but what role should small- and medium-sized enterprises play in the continued transformation and success of U.S. manufacturing?

Small- and medium-sized enterprises are absolutely critical parts of the supply chain as well as important innovators for game-changing technologies and capabilities.

We need to ensure that we have a capital and regulatory environment that accelerates SME development and to forge closer partnerships between large enterprises and small and medium firms in the supply chain and as marketing partners. That’s a place where I think we’re weak in the United States.

One of the things we have highlighted and are working on is a project we co-created: NDEMC, the National Digital Engineering and Manufacturing Consortium. The project involves four original equipment manufacturers — Lockheed Martin Corporation, Deere & Company, General Electric Company, and Procter & Gamble — who are investing in an economic development partnership with the federal government to propagate modeling and simulation tools through the supply chain of these companies’ small- and medium-size suppliers in the Midwest. We’re already seeing tremendous success with new product orders, job creation and more, in just six months. That model is going to be extended throughout the country.

Deborah L. Wince-Smith is president and CEO of the Council on Competitiveness, Washington, D.C., the distinctive group of industry, university, and labor leaders dedicated to driving U.S. innovation and economic growth, and raising living standards for all Americans.She also serves on the board of directors of NASDAQ-OMX Inc., the Oversight Board of the Internal Revenue Service and the U.S. Department of State’s Advisory Committee on International Economic Policy. Wince-Smith previously held federal government positions in science, technology policy and international economic affairs.

This article appears in the issue of Standardization News.