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OCTOBER 2, 2020 Helping businesses do business better. Price: $1.75 Kellan Longenecker, general manager, General Mills, Carlisle plant IOWA MANUFACTURING ‘BEST HOUSE IN A TOUGH NEIGHBORHOOD’ AMID PANDEMIC MADE IN I WA
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MADE IN I WA

Feb 07, 2022

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Page 1: MADE IN I WA

OCTOBER 2, 2020 Helping businesses do business better. Price: $1.75

Kellan Longenecker, general manager, General Mills, Carlisle plant

IOWA MANUFACTURING ‘BEST HOUSE IN A TOUGH NEIGHBORHOOD’ AMID PANDEMIC

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Some subsectors will face a longer road to recovery than others

IOWA MANUFACTURING ‘BEST HOUSE IN A TOUGH NEIGHBORHOOD’ AMID PANDEMIC

Kanlaya Barr, senior economist, Deere & Co.Eric Lohmeier, president, NCP Inc.Kellan Longenecker, general manager, General Mills, Carlisle plantKirk Tyler, chairman and CEO, Atlantic Bottling Co.Mike Ralston, president, Iowa Association of Business and Industry

MEET THE PANELISTS While some Iowa manufacturers will face a long road back to normalcy, other pieces of the state’s largest industry sector are experiencing a growth surge as consumer preferences shift amid the coronavirus pandemic.

The new opportunities include some big pivots in how manufacturers think about their supply chains, their workforce and their facilities. The changes, as with many industries, are making 2020 a major inflection point for manufacturers in Iowa, whether their products are distributed on grocery shelves across the United States or ride on flatbed trailers, rail and freighters to job sites on the other side of the globe.

It’s all in a day’s work for manufacturing companies of all sizes and types in Iowa, as a seemingly endless 2020 continues to toss unpredictable curveballs to test their mettle.

In late August, the Business Record invited five experts with varied vantage points of Iowa’s manufacturing to convene virtually for a panel discussion about the state of the industry as the COVID-19 pandemic continues to unfold.

Among the topics covered, the panel discussed some of the sectors of the industry that have fared well during the pandemic as well as others that are experiencing hard times.

Lohmeier, an investment banker in Des Moines who works with manufacturers across the state in developing merger and acquisition deals, summed up Iowa’s manufacturing sector during the current economic and social turmoil as “the best house in a tough neighborhood right now.”

We also asked the panel for their assessment of talent and recruiting trends during this unprecedented period of social distancing and other public safety precautions.

Overall, maintaining good human resource management practices has been a strong point for the manufacturing industry in Iowa, Longenecker said. Her company has a culture of listening to and working with employees that has served it well.

“We’ve gotten really good at being flexible with employees to work with their partners and change hours [to accommodate child care needs], or maybe they’re only working a four-hour schedule instead of an eight-hour schedule,” she said. “I have three kids and I’m very thankful that General Mills has from the very beginning offered paid leave [for family care/child care needs].”

The influence of the pandemic on strategic partnerships, capital investments, mergers and acquisitions, and supply chains were also considered.

Over the next several years, expect to see a continued shift toward reshoring and near-shoring of suppliers and a move away from just-in-time delivery models, the panelists said.

Additionally, the heavy construction industries that support road and other public infrastructure projects and the companies that supply them may see the longest roads to recovery, as state and local tax revenue sources dip by double-digit percentages.

Here are excerpts of the panelists’ responses to some of the questions from the Aug. 27 videoconference.

WHAT SECTORS OF MANUFACTURING ARE STRUGGLING AND WHICH ARE FARING WELL? WHAT STRATEGIES SHOULD COMPANIES THAT AREN’T PERFORMING WELL BE CONSIDERING?

Longenecker: General Mills, as a food company, is doing well at this time. We’re really seeing broad increases across the board, specifically in meals and baking. Getting consumers back into the kitchen as the heart of the home has really benefited General Mills. Consumers are tending to turn to brands that they know and trust, and also to some of that comfort where there’s just a sense of normalcy.

But also even within the food company we’re seeing a corresponding decrease in the away-from-home food demand. So in the Avon plant here outside of Carlisle, a lot of our flour

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is used to support those away-from-home convenience and food-service channels like hotels and restaurants. So with those declines in foot traffic, [travel and lodging] have really stumbled from the recent closures.

We’ve had to pivot and navigate and figure out how to be agile in this environment to continue to utilize the available capacity that we do have. So we’re manufacturing to be able to donate, for example, to Feeding America with cereal and whole-grain waffles and granola bars and things that weren’t trending as positively, and find new ways to repurpose [those products] and contribute to the community that’s really desperately in need of food.

Lohmeier: I think there are sectors of the agriculture manufacturing industry that are going to have probably a long road back, if you will. You’ve got significant producer subsidies, so what we’re seeing on the agriculture manufacturing side — and in the near term the trucking and transportation side — is a lot of deferral in purchasing new equipment. You’re seeing a lot of a switch to working on used equipment.

One of my biggest fears for industrial manufacturers of large equipment is in what I would call road construction aggregate, because state and local budgets are going to be off in the order of 10 to 25% for funding of new roads or maintenance. And looking at commercial construction and retail real estate and office — I think the outlooks for those industries are pretty dire. Companies may be working through their backlogs, but I see some real struggle and difficulty there.

Barr: I would echo that. With the state being hit by a slower economy, you have less revenue and then you also have unemployment benefits that you’re paying, so you get it on the expense side as well. So therefore at the state level it is becoming very challenging for construction.

And if you look from a manufacturing standpoint … is supply globalization where we want to be? The efficiency is there, but is resiliency something that we need? So over the long term or even the medium term, I think we will start seeing some changes in the supply chain as well, and also in automation. Before this [pandemic], skilled labor was really hard to find —

Ben Russell, warehouse lead at General Mills, operates a forklift to move pallets of products.

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it’s really hard to find a skilled welder within the area that we operate [heavy machinery]. So now going forward with the absenteeism and the difficulty with the labor force, there’s going to be a lot of automation happening.

Ralston: There are always opportunities for a major global manufacturer of tractors; there might be some issues for a while. There’s a smaller-sized company in north Iowa, HyCapacity, that mainly remanufactures parts for tractors, and they’re doing great. … Kreg Tool is a company right here in Polk County that manufactures things for the individual woodworking market, and they’re doing great. Standard Golf, a company in Cedar Falls that manufactures equipment used in golf — cups, flags, pins, those sorts of things — they’re doing great. So the size of the company doesn’t necessarily matter [as much as] the products that you manufacture and the industry that you’re in.

Tyler: And if you take that question and look at it in a different way, there may be struggling sectors that are either failing or shut down, but there are a lot of companies that are doing so well that they’re struggling to make enough products. You can look at the paper industry — you go down the shelves at the grocery store and see them completely empty, so there are a lot of industries that are really struggling just to try to make enough.

WITH THE HIGHER UNEMPLOYMENT RATE, IS THAT PROVIDING OPPORTUNITIES FOR MANUFACTURERS TO FILL POSITIONS THEY COULDN’T FILL BEFORE, OR ARE THESE NOT NECESSARILY THE FOLKS YOU’RE WANTING TO TAP INTO?

Ralston: Folks were really searching for people; what we hear from our members is that [the pandemic] is taking the pressure off. They’re still interested in finding people, but because of the pandemic, maybe business isn’t quite as strong and it’s taking the pressure off of finding people. But I believe that finding and keeping workers is still the No. 1 issue for Iowa manufacturers.

Lohmeier: I think a lot of the issues is where the people are [isn’t] necessarily where the growing companies are, so you’re going to have a real difficult time transitioning somebody from the southwest or center part of the state to the north-central part of the state where there may be a lot of demand for those jobs, so

there’s some difficulty there. The other thing that I’m seeing very live and in color with a

lot of companies we work with, even some of the ones that are challenged, they are forced because of workforce absenteeism and spacing to find efficiencies and they are putting a lot of time and, frankly, investment when they can into automation. … I don’t think we’re going to have less jobs because of automation, just different kinds of jobs. There’s just going to be some time and some friction to get people to the locations and to the types of skills that they need, and that’s going to be a real challenge and an opportunity.

Longenecker: For General Mills, we are hiring actively and we had been before the pandemic, as well as continuing to do that. So all of our plants across the nation and North America for General Mills are continuing to run — in fact, we’re running at full capacity across most of our platforms to service this high demand, so staffing continues to be a challenge that we are looking to overcome.

We’ve had to be a little bit more creative on the recruiting side, and also rely a little bit differently on technology. We’re doing virtual tours of our facility and getting people acquainted with what life in manufacturing would be like if they haven’t been in that industry before, or even virtual interviews or having online assessments before they get to the plant. Even our onboarding [has changed], like upgrading our technology so that we can keep social distance while we’re training a brand-new person on the floor. So those are some trends that manufacturers have had to pivot and get creative with to make sure that we do have adequate staffing to serve our business.

WE HAD A QUESTION FROM AN AUDIENCE MEMBER ASKING WHETHER ANY OF YOU HAVE SEEN AN INCREASE IN STRATEGIC PARTNERSHIPS TO HELP COUNTER THE SUPPLY CHAIN CHALLENGES. AND IS THIS PERHAPS MOST PREVALENT MAYBE IN SMALL TO MIDSIZE MANUFACTURERS?

Ralston: I can say here at the ABI office we’ve heard from members who are interested in things like purchasing collaboratives or being a part of groups that can help direct and advise on capital expenditures. By the way, I’d note that we do a quarterly survey. In the survey that we did right before the pandemic hit, we were stunned to see that about two-thirds

“The ‘have not’ industries are frankly iced right now. .... Again, if you’re in the ‘have’ industries, there’s a ton of liquidity out there right now because of various Fed and Treasury programs.” ERIC LOHMEIER, PRESIDENT, NCP INC.

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Greg Narber, a lead mechanic at General Mills, sanitizes a table in a break room at the Carlisle plant.

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of Iowa manufacturers — in our survey, anyway — were going to make capital expenditures during the year. After the pandemic hit, in the first quarterly survey we did, we expected that to be wiped out. But still, about half of them said they were [planning capital expenditures], so that confirms what the panel has been saying today. But yeah, we’ve seen greater interest in collaborations all across the board.

Tyler: One thing that we came across was we had a customer that was making hand sanitizer. So they could make it; they just didn’t have a way to distribute it. So we visited with them and partnered with them. So we were the distribution arm of their hand sanitizer; we could get it out fairly quickly to a lot of customers. … Shortly after that everybody started making hand sanitizer and was selling it, and so it slowed down after that. But we got it out in an initial response, and it worked really well.

HOW HAS M&A ACTIVITY BEEN FARING?

Lohmeier: Deals that were carried over from last year, almost to the deal, every one of those has been transacted. We were kind of fortunate to have the “have” industries. The “have not” industries are frankly iced right now. Fortunately there was the [Paycheck Protection Program] for those small to medium-sized businesses that received those funds; it was extremely effective as a stimulus, kind of like the $600 weekly unemployment checks. But we think there’s going to be a real delay with that kind of stimulus happening again, probably in early 2021.

Again, if you’re in the “have” industries, there is a ton of liquidity out there now because of various Fed and Treasury programs. … There’s certainly liquidity to get those deals done. The challenge for us is that you can do financial due diligence over Zoom, but the personal touch between the owners and trying to think about integrating companies is just delaying everything, so everything is taking longer.

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THERE HAVE BEEN MANY ALLOTMENTS OF FEDERAL FUNDS BY THE GOVERNOR’S OFFICE, PARTICULARLY THROUGH THE CARES ACT. THIS WEEK ALONE, $100 MILLION WAS ANNOUNCED FOR THE AGRICULTURE INDUSTRY. WILL THIS SIGNIFICANTLY HELP MANUFACTURERS IN IOWA, OR WOULD MORE ALLOCATIONS OF FEDERAL AID HELP?

Barr: From a funding perspective, the amount that came through from the [CARES Act] which can help the rural crop producers and also is going to help some of the livestock producers, those are going to be really important for our producers. And again, if you look at the amount of payments, the policy is written so the payout is actually a little over half of what [has normally been invested]. So having some sort of restriction removal would really help our producers here. The other part is that the ethanol industry has been hit as we saw gasoline demand off by 50% back in April. … Definitely there has been help coming into the farm economy, but continuing support will be needed to help offset this price environment.

BESIDES COVID-19, WILL THE DERECHO DAMAGE, ALONG WITH RECENT HURRICANES AND DROUGHT, PERHAPS CREATE A SILVER LINING FOR PRODUCERS IN HIGHER CROP AND ENERGY PRICES?

Barr: Because of COVID-19 we’re probably going to lose about 600 million to 700 million bushels of corn that used to

go to ethanol. From the agricultural standpoint, we still have abundant supply globally, so if the price starts to bounce back in the U.S., guess what? In a couple of months South America is going to plant more corn.

A GOOD AUDIENCE QUESTION FROM JEFF PIGOTT; KIRK HAD MENTIONED THE CHALLENGES FROM JUST-IN-TIME DELIVERY ON SUPPLY CHAIN, AND HE’S ASKING: SHOULD MANUFACTURERS LOOK FORWARD TO A POTENTIAL POSITIVE BUMP DOWN THE ROAD AS CUSTOMERS LOOK AT BUILDING UP THEIR RESPECTIVE COMPONENT INVENTORIES TO TRY TO MAKE SURE THEY’VE GOT THE SUPPLY ON HAND?

Tyler: Definitely. We’ve had a little bit of a can shortage in our business because there’s plenty of aluminum out there but the can manufacturers have been decreasing their capacity because that’s the way it’s been trending over the past few years, and they’re trying to follow consumer trends. Beginning March 16 the consumer trends just changed dramatically, and so we’ve had to really bump up our inventories to cover these things. There will be plenty of Fresca out there at some point in time, so keep looking for it.

Longenecker: At General Mills, the future has been pretty difficult to predict. So availability is really the key. We’ve been pretty fortunate to have some good relationships with vendors that we use a lot across the state of Iowa. We have an exceptional amount of vendors that are local that are supporting a lot of our businesses, so having that open and transparent communication with them about our plans has really helped. But I think guidance for manufacturers would be: Have a Plan B and a Plan C, because we are running into bottlenecks further upstream and then we have to go to another contingency plan. Sometimes that even means partnering with your customers to make the most of what they need at that time. One of the ways General Mills has tried to do that is to create some efficiencies by prioritizing around some of the SKUs [stock-keeping units]. Having that dialogue with them has helped us leverage the available capacity that we have.

THE SECOND PART TO HIS QUESTION IS ABOUT THE ACTUAL STORAGE AND WHETHER OR NOT MANUFACTURERS [OR THEIR SUPPLIERS] WILL HAVE THE SPACE ON HAND TO STORE THOSE MATERIALS AND THOSE COMPONENTS.

Lohmeier: That’s a great space to be in; if you’re in real estate I hope you own warehouses or that you could build warehouses because they’re going to get filled due to everything you just mentioned. Just-in-time delivery — we probably went way too far in the pendulum on that. [Larger inventories are] definitely going to be a trend that sticks, whether it’s Amazon or just general industry and inventory replenishment. Having those supplies on hand — that is a trend that is going to kind of stay with us for I think a generation.

Ralston: I can second that. ABI has several contractors that are members of the organization, and many of them have talked about the warehouses that they’re building or the expanded company facilities that they’re building, so I think that confirms what Eric is saying.

ONE LAST QUESTION ON SUPPLY CHAIN. IF YOU’RE LOOKING OUT INTO THE FUTURE, WHAT ARE SOME AREAS WHERE YOU SEE SOME CHALLENGES?

Tyler: For us, we’ll take a look at all of our raw materials and figure out what we can do better, no doubt about it.

Longenecker: The same for us, whether it’s a global raw material or something that’s manufactured in North America that we need as an ingredient, or maybe it’s film or corrugated cardboard. We’re looking at every possible incoming ingredient to predict what potential issues might come up.

Lohmeier: As far as industry trends, I think it’s going to be really hard to make a strong case for a near- to medium-term pop back on anything related to the aerospace side and air transportation. There is going to be some real pain, I think, for a longer time as those companies kind of reorient to the brave new world and whatever that means for business travel. So I think there are certain industries that are just going to have some real restructuring to do, probably over a number of years.

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Media PartnerClint Wahe, mix technician, picks a pallet from the palletizer at the General Mills plant.

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HOW WOULD YOU ASSESS THE OVERALL STRENGTH POSITION OF THE MANUFACTURING INDUSTRY IN IOWA RIGHT NOW? A NET NEGATIVE OR A NET POSITIVE?

Lohmeier: I believe that when you look at it across the board, manufacturing in general is a slightly net positive, and I think that will be the case going forward. We’re pretty positive on the industry, but it’s not going to be a smooth road by any stretch.

Barr: The government has put $2.4 trillion in subsidies paid directly to consumers, and that has helped to prop up some of the strong sales we’re seeing in some sectors. As we go into the next six to 12 months, if this funding relief is significantly reduced, I’m curious as to how the recovery will look because right now that gap is being filled by this money. If the recovery pace in other sectors doesn’t live up to what we expect, are we seeing more downside risk going forward?

Ralston: I think manufacturers in general are doing well, and I’m only repeating what I hear from manufacturers. Iowa manufacturers for the most part aren’t carrying a lot of debt. They were in a pretty good cash position, and they didn’t have a lot of inventory, which now is sort of a double-edged sword. But they’re in a position to pick up pretty well, and boy, most of the manufacturers that I talk to feel like the future is pretty bright.

Lohmeier: I agree with you that we will see an initial recovery, a pretty good snap-back. But consumption is 70% of our economy, so beyond the essentials as you get further into discretionary items I think you’re going to have a much slower recovery. That’s why I say it’s going to be a long road back for a lot of industries. n

“... we will see an initial recovery, a pretty good snap-back. But consumption is 70% of our economy, so beyond the essentials as you get into discretionary items I think you’re going to have a much slower recovery.”

ERIC LOHMEIER, PRESIDENT, NCP INC.

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Economic recovery report, Manufacturing 4.0 will provide resources

RESHORING BECOMES HIGHER PRIORITY FOR IOWA MANUFACTURERS

An increasing number of U.S. manufacturers say they’re considering reshoring or nearshoring more of their production or supply capacity since the COVID pandemic began in March, according to consecutive studies over the past several months by product sourcing company ThomasNet.

According to the latest survey released in June, which included nearly 750 qualified manufacturers, 69% said they were either “likely” or “extremely likely” to bring manufacturing production and sourcing back to North America, compared with 54% in February and 64% in a survey conducted earlier in May.

“The COVID-19 pandemic will fundamentally redefine how industrial companies approach their supply chains and will further advance the digital transformation of manufacturing. By embracing real-time resource management, redundancy, reshoring, and the convergence between the digital and physical supply chains, manufacturers will come out of this crisis even stronger than they were before,” said Tony Uphoff, president and CEO of Thomas.

A recent white paper by the Brookings Institution on reshoring advanced manufacturing supply chains defines reshoring as “the practice of bringing manufacturing and services back to the United States from overseas.” It can also refer to bringing manufacturing back to North America.

Among the potential benefits, reshoring “can help balance trade and budget deficits, reduce unemployment by creating well-paying manufacturing jobs, and develop a skilled workforce,” according to Brookings researchers. “Reshoring also benefits manufacturing companies by potentially reducing the total cost of their products, improving balance sheets, and making product innovations more effective.”

Mike Ralston, president of the Iowa Association of Business and Industry, said he’s hearing the term a lot more often these days from ABI member companies across the state. Ralston made the comment in late August during a panel discussion on the pandemic’s effects on Iowa manufacturing organized by the Business Record.

“We hear a lot about that subject at ABI from a number of folks who might have had people supplying them products from China,” Ralston said. “There are all kinds of reasons — not just a pandemic but because of the political situation — that they’re looking to find vendors much closer to home. It’s just something we hear about all the time; it’s certainly happening.”

Kanlaya Barr, a global economist with Deere & Co., noted during the same panel discussion: “A lot of people have come to recognize that the trade tension between the U.S. and China is probably not going to go away anytime soon. … A lot of supply chains are going to start thinking about this because this might be the new normal trade environment going into the next few years.”

While reshoring to Mexico may become more common, an even larger trend may be “nearshoring” away from China to suppliers in Southeast Asia, particularly Vietnam, say some experts.

Industry experts note that companies are typically reticent about discussing their individual supply chain strategies and potential reshoring initiatives for competitive reasons.

Jeff Kappen, an associate professor of management and international business at Drake University for the past eight years, said he’s talking a lot about both reshoring and nearshoring with his students, and the latest research shows clear trends. Kappen is also a consultant with Baton Global, a Des Moines firm that advises businesses on international trade.

“I think companies are generally trying to build multiple, flexible bases in various countries rather than basing everything out of China,” Kappen said. “I don’t think companies are looking at pulling completely from China — there’s just too much there. But they’re looking at pulling back.”

If there is a big early winner emerging as a nearshoring destination, it’s Vietnam, he said. “There has also been a pullback to Vietnam. That country has seen a lot of activity. I think Vietnam has been the big winner in Asia this year.”

Kappen said that two broad areas of manufacturing are likely to have the highest probability of success in reshoring sourcing or production.

The first are products that had just enough complexity where automation wasn’t feasible, but now it is feasible. For instance, a manufactured item that was offshored 20 years ago to meet cost goals might now be revisited because automation makes it feasible to produce the item in the United States.

The second broad category is “anything where there is mass customization, where there’s an opportunity to bring the product close to the consumer and tailor it to the consumer,” Kappen said.

If there are potential drawbacks to reshoring, the No. 1 pitfall is the risk of change, he said.

“If you have something working for you, changing that location brings with it lots of risks,” Kappen noted. “There are risks to leaving something where it is, and risks to moving it.”

When you make that decision and pull the plug on your old supplier, there are certainly risks. That’s why companies are slow to reshore – if it’s working, it’s hard to justify movement.”

The Center for Industrial Research and Services at the Iowa State University Research Park in Ames has served as a resource for manufacturers in adapting to a number of emerging trends over the years, and preparing for reshoring is no exception.

Mike O’Donnell, program manager of CIRAS, noted that the process of “offshoring” production or sourcing to China that was prevalent three decades ago is neither a fast nor a low-cost move for manufacturers to execute.

CONTINUED ON PAGE 22 >

BY JOE GARDYASZ

“When you make that decision and pull the plug on your old supplier, there are certainly risks. That’s why companies are slow to reshore — if it’s working, it’s hard to justify movement.” JEFF KAPPENASSOCIATE PROFESSOR, DRAKE UNIVERSITY

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THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY

THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE

QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE

QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE

QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA:

THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA:

THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA:

THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION QUALITY PRICE • THE NEUMANN TRIFECTA: REPUTATION

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Likewise, “reshoring things that you haven’t made in a long time is going to take considerable investment,” O’Donnell noted. “There are some companies in Iowa that are at least considering it. The question is: Is it going to be worth the effort and cost?”

While it may be worthwhile for some, he said, “I think other companies will very quickly fall back into the current supply chain.”

So how should manufacturers think about the payback period for reshoring? Will it take a fairly long time for companies that reshore to recoup their investment back into the United States or nearby countries such as Mexico?

When considering the cost-benefit equation, it’s important to understand the total costs that factor into buying from a closer supplier, often referred to as “landed costs.”

“It’s important that companies have an understanding of all of the soft costs involved in buying from a foreign area,” he said. For instance, time lost in transport really does equate to money. “If something is farther away, you have more material in your supply chain at all times, and more money tied up in your supply chain,” O’Donnell said. Additionally, “some of the better companies will include things like the cost of quality in their decision process.”

The COVID pandemic has for the first time brought some of the inherent risks that had just been theoretical into very real terms. “They had never hit the bottom line — this year they did,” he said. “This spring and summer, they actually saw it happen.”

So is supply chain and reshoring top of mind now for Iowa manufacturers?

“I would say it is higher up the priority list,” O’Donnell said, “but right now what’s top of mind for manufacturers is recovering demand. Right now they just don’t have the market out there. We have had some increased interest and discussions about reshoring, but not nearly at the level of ‘How do I find new sales?’ ”

O’Donnell said he hopes by next spring the conversation can begin shifting to an exploration of whether reshoring is worth the time and investment.

New reports to reflect input, offer recommendations

One of the resources that Iowa employers are expected to have by that time is a year-end report that will be released as part of the work going on now with the Governor’s Economic Recovery Advisory Board.

One of five subgroups making up the advisory board is a manufacturing focus group that is building on work that had started in January by the Iowa Economic Development Authority.

“Rather than create a new subgroup for economic recovery, the focus group discussions for the supply chain/reshoring topic served as the input for the economic recovery work,” said Hank

WHAT WILL THE MANUFACTURING 4.0 PLAN DO?

Manufacturing digitalization will transform how products are designed, fabricated, used and serviced. While companies understand the importance of embracing digital, they must determine how digital fits into business models and the best way to leverage these new technologies.

That’s where the Iowa Manufacturing 4.0 Plan comes in. The work is now under way as an initiative of the Iowa Economic Development Authority, with assistance from consulting firm Techonomy.

The Iowa Manufacturing 4.0 Plan will:

- Assess current trends and challenges facing Iowa manufacturers.

- Examine existing policies and identify opportunities.

- Help small to medium enterprises manage the digitalization challenges to maintain a competitive advanced manufacturing sector.

- Set state priorities and provide strategic guidance.

“A key factor [in facilitating reshoring] is ensuring that digital capabilities are compatible. ..... I think that’s where the Manufacturing 4.0 Study will help...”JILL LIPPINCOTT,PROGRAM MANAGER, IOWA ECONOMIC DEVELOPMENT AUTHORITY

MADE IN

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Norem, president of Ramco Innovations and a co-chair of the advisory board’s Advanced Manufacturing Work Group with Kevin Gaul, director of operations for Pella Corp.

Working with the subgroup is Jill Lippincott, project manager for the IEDA’s Targeted Small Business Program. Part of the strategy has been to ensure that direct input is received from a wide array of industry leaders, she said. The work will dovetail with information that will become available with a Manufacturing 4.0 report that will also come out early next year.

“A key factor [in facilitating reshoring] is ensuring that digital capabilities are compatible,” Lippincott said. “I think that’s where the Manufacturing 4.0 Study will help, so that as buyers are looking closer to home, that [small to medium-size enterprises] have the technologies available or digitization of processes in place.”

Are there some success stories about bringing manufacturing back to Iowa?

“I think we’re still in the early stages of exploring that,” Lippincott said. “Techonomy is doing work to put together examples and that will be part of the report when it’s put together.” Because of a pause in the work due to COVID, the report release has been delayed, but IEDA now hopes to have it ready by the end of this year, she said.

In broad strokes, the report will examine how existing resources can be leveraged by manufacturers to work with their supply chains or original equipment manufacturers in reshoring efforts. The processes it will look at include supply chain mapping and identifying areas for growth, as well as an examination of state policies and how they support growth in manufacturing.

The report will take a holistic approach to assisting manufacturers that want to explore reshoring, Lippincott said.

“We’re always listening to manufacturing leaders, and I think we’ve done a great job of supporting their work for manufacturing to be a large part of the state’s GDP,” she said. “We will look at what we can do to support their needs and how it ties into their efforts to be ready for reshoring. One of the things the report recognizes is that this doesn’t exist in a vacuum. I think the report will address many aspects of how it all works together.” n

BY THE NUMBERS: MANUFACTURING IN IOWA

4,142 - Number of manufacturing companies in Iowa employing at least 10 workers

14% - Percentage of Iowa total employment held by manufacturing workers

222,586 - Direct jobs in manufacturing in 2018

350,000 - Number of indirect jobs supported by manufacturing sector

SOURCE: IOWA ECONOMIC DEVELOPMENT AUTHORITY

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ABI FOUNDATION PROGRAMS

2020

The Iowa Association of Business and Industry (ABI) is the voice of Iowa business. It is Iowa’s oldest and largest business network, representing 1,500 businesses that employ more than 333,000 Iowans.

ABI benefits members by advocating on their behalf at the Statehouse, connecting them with decision-makers to share ideas and services, and offering solutions and best practices for issues that affect their businesses.

ABI began in 1903 as a state manufacturers association. Today, approximately half of its members are manufacturers. ABI continues to be Iowa’s champion for the manufacturing industry by offering manufacturing-specific programming, peer learning, networking and promotion of manufacturing as a career of choice.

Learn more about ABI at www.iowaabi.org.

Mike Ralston, President

NOT ONLY CHANGES THE WAY STUDENTS THINK, BUT HOW THEY PERCEIVE THEMSELVES AND THEIR FUTURES

Business Horizons connects classroom curriculum to real-world context, reinforcing the validity of their interests while demonstrating the wide variety of talents needed and types of positions available in our state.

Participants team up to navigate the world of business and entrepreneurship alongside Iowa professionals. Each team utilizes all students’ strengths and skills to successfully take a product from inception to investors.

Real-world experiences with life-changing results.

HIGH SCHOOL STUDENTS – 5 DAYS IN JULY

BUSINESS HORIZONS

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MADE IN IOWA 2020

LEADERSHIP IOWA UNIVERSITY

MAKING CONNECTIONS TO IOWA’S OPPORTUNITIES & PROFESSIONALS HAS A LASTING IMPACT

“I didn’t know this was in Iowa,” is a phrase often used by Leadership Iowa University participants, previously unaware of our state’s industry, unfamiliar with established networks and unsure of career options available to them.

Students experience life as young leaders and professionals in Iowa, proactively develop skills needed for an evolving workplace by strengthening their self-awareness and self-confidence during this summer internship capstone.

WHERE PROFESSIONAL & PERSONAL MEET WITH A WIDE RANGE OF EYE-OPENING EXPERIENCES & INSIGHTS TO INSPIRE

Each year, 40 individuals are selected to participate in Leadership Iowa that convenes in an Iowa community monthly for two-day sessions. Each focuses on a specific topic important to Iowa, including manufacturing.

Participants step outside of their areas of expertise, they gain a refreshed, insider’s perspective on the condition, needs and future of our state.

We now have over 1,200 Leadership Iowa alumni committed to the betterment of Iowa.

COLLEGE STUDENTS – 5 DAYS IN AUGUST

PROFESSIONALS – 2-DAY MONTHLY SESSIONS OCT.-JUNE

LEADERSHIP IOWA

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Iowans are defined by our strong work ethic, collaborative spirit, and unique determination to build a better future. As a global leader in the advanced manufacturing of agricultural equipment, John Deere empowers Iowans at John Deere Des Moines Works to create products and processes that conquer tomorrow’s issues today — helping to feed, clothe, and shelter the world’s growing population.

Visit JohnDeere.com/AboutUs to learn more.

PIONEERING PROGRESS.

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MADE IN IOWA 2020

Elevate Advanced Manufacturing, a non-profit initiative spreading the word about career opportunities in advanced manufacturing, has awarded 14 $500 scholarships to recent Iowa high school graduates entering a manufacturing-related course of study at one of Iowa’s 15 community colleges.

Advanced manufacturing provides a wide range of high-paying and in-demand careers. Manufacturing companies are in the top-third of employers in the state of Iowa, providing 222,628 jobs to Iowans and representing 14.4% of the state’s total employment. With innovative advances in technology, robotics, and augmented and virtual reality, the manufacturing industry continues to grow, providing new and exciting career opportunities for Iowans.

A career in manufacturing empowers individuals to join the workforce sooner, with less debt. “These well paying careers require education and training beyond high school, but often don’t require the burdensome cost of a bachelor’s degree,” says Mike Ralston, president of the Iowa Association of Business and Industry.

“Recent studies have shown that two-year degree holders, especially in high-demand manufacturing occupations, can earn salaries that surpass those of four-year college graduates.”

Examples of scholarship-eligible training programs include Robotics, Welding, Mechanical Drafting (CADD), Transportation and Logistics, Computer Numerically Controlled (CNC) Machining, Industrial Automation, Industrial Maintenance, and Tool and Die.

In addition to a $500 scholarship, Elevate Advanced Manufacturing scholarship recipients and their families will be honored at the Legends in Manufacturing Award Ceremony in fall 2021.

14 SCHOLARSHIPS AWARDED FOR ADVANCED MANUFACTURING TRAINING ACROSS IOWA

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For more information about manufacturing careers, visit www.elevateiowa.com.

Elevate Iowa (www.elevateiowa.com) is a statewide, integrated marketing campaign to promote careers and educational pathways in advanced manufacturing. The initiative is directed by a coalition of all 15 Iowa community colleges, the Iowa Association of Business and Industry, the private manufacturing sector and the State of Iowa. Elevate Iowa offers resources to the public and educational institutions to educate unemployed/underemployed Iowans and U.S. veterans, along with K-12 students and their families, about opportunities in advanced manufacturing.

BRAYTON CHESNUT Creston High School Southwestern Community College

GAGE O'CONNOR Ankeny High School Iowa Western Community College

MITCHEL BENDER Burlington High School Southeastern Community College

SHANE MOFFITT Emmetsburg High School Iowa Lakes Community College

ETHAN MOLITOR Mason City Alternative High Schoo North Iowa Area Community College

GARRETT ROTTINGHAUS Union High School Hawkeye Community College

COLE MOBLEY Diagonal High School Indian Hills Community College

DALLAS HAGEMAN Ft. Atkinson High School Northeast Community College

ALEX TIPPS Louisa Muscatine High School Eastern Iowa Community College

KALE EUANS South Winneshiek High School Kirkwood Community College

DAWSON EVERS Denison High School Des Moines Area Community College

GABRIEL BENNETT Spencer High School Northwest Community College

DRAVEN RASMUSSEN Eagle Grove High School Iowa Central Community College

NATHAN MALLORY Washington High School Western Iowa Tech Community College

THE 2020 AWARDEES

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MADE IN IOWA 2020 SPONSORED BY ABI

On paper, Matthew Lamons is an artificial intelligence strategy architect at the Intelligence Factory, the St. Louis-based company he co-founded two years ago. But if you ask Lamons what he does, he’ll tell you he’s two things: a translator and a storyteller. As both, he connects what he calls “two sets of very smart and accomplished people” — the engineer or scientist at his company doing amazing things with artificial intelligence, and the corporate decision-maker searching for a new set of tools to simplify operations within their company. Lamons does this work because he “really likes solving problems” and, as Iowa moves through what’s called the Fourth Industrial Revolution — or Industry 4.0 — companies will need to undergo a digital transformation and take full advantage of artificial intelligence in order to solve many of theirs. At the Iowa Association of Business and Industry Advanced Manufacturing Conference held Sept. 30, Lamons spoke on how the COVID-19 pandemic affected the urgency of this digital transformation and whether Iowa manufacturers and other industries were able to embrace artificial intelligence in order to overcome the challenges.

The Business Record caught up with Lamons after the conference. Responses have been lightly edited for clarity and conciseness.

Many of your talks and writings focus on deep learning and artificial intelligence. To someone who’s not familiar with the concepts, what does this mean, and why is it important now? Artificial Intelligence — or “AI” — is basically a computer algorithmic system that learns from data and doesn’t have to specifically be rule-based. What AI fundamentally does is infer a rule based on a lot of experience with a set of data and the presentation of a “ground truth” answer. Today, with the super large sets of data we have and the complexity of that data, it’s impossible for people to see enough of it to make the same inference. Now, computers are being programmed to learn from the data in order to map complex functions and provide effective recommendations or predictions. AI is important now because information and data comes at us and into organizations too fast to be effectively dealt with by people. Now, AI applications or programs or bots can provide recommendations on

how to deal with this data. This saves time, reduces risk, reduces costs in organizations, improves customer experience, increases profits and protects company margins.

How has your definition of innovation changed or evolved over the years? I think, like most people, there was an element of “magic” that went along with the idea of innovation in the past. We often hear of the rock-star companies doing crazy things with AI or virtual reality. Really impressive things have and are being done for sure, but for me, my definition of innovation has certainly changed from what can be done to make a real positive impact to what should be done. I’m much more focused on applied AI engineering now and building real systems that do real things for real people to help solve real problems.

Where do we already see AI in our daily lives? We see AI in search recommendations on Google and product recommendations on Amazon. We also see AI in the form of anomaly detection when we get a text from our credit card company asking if we’ve made an unusual

Matthew Lamons, co-founder and managing partner of the Intelligence Factory, has many years of experience in deep learning and experimental psychology. He is an artificial intelligence industry influencer, a seasoned business leader, and the author of multiple books on deep learning and AI. Lamons lives in southern Illinois near St. Louis with his wife of 33 years, Kristina.

BY MEGAN VERHELST

AI OFFERS ‘REAL SOLUTIONS FOR REAL PEOPLE’ AMID PANDEMIC

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MADE IN IOWA 2020 SPONSORED BY ABI

purchase. Those are examples of complex algorithms that have created a model of a pattern of data from behavior. AI also is seen most notably on our smartphones when it wakes up with facial recognition, or when you use Siri or Alexa.

Are businesses taking advantage of AI? What reasons ultimately lead them there? Companies are definitely starting to take advantage of AI. They see AI as a core part of their strategy to combat the effects of COVID-19 and provide for better customer engagement. AI is also being used to manage and optimize extended supply chains and procurement. Some common reasons why companies are turning to AI are to accelerate time to market, decrease costs, become more agile in their company operations and to mitigate supply chain risks.

In your presentation at the Advanced Manufacturing Conference, you talked about DX information stack. What does that mean, and how is it applicable to businesses? The DX information stack is a summary of the entire set of information element classes an organization uses to operate. It has two groupings. There are elements like sensory data from cameras or traditional data that can be easily processed by computers. But the second half of the DX information stack are elements that are hard for a computer to process. This is brain power and categories of information like knowledge and wisdom. This second half is where decisions are made … and traditionally have a hard time getting back into digital processes. This is what we at the Intelligence Factory are working to fix with EnterpriseDaiX. This would make it possible for businesses to leverage all of their information and resources for optimal operations.

What are some real-life examples of what digital transformation can do for a business? It makes it possible for their customers to engage in the sales process online versus in person, or it helps businesses conduct customer service online versus over the phone. These are common examples. What companies are also looking to do is get better internal synergy between their operating systems.

What makes business and industry leaders hesitate to jump on the AI bandwagon? I think some of it comes from the new nature and technical exclusivity of artificial intelligence. But when leadership focuses on it as a tool, or a means to a desired outcome, things get easier. Another barrier is that data scientists and AI engineers often speak a different language than business decision-makers, so there’s translation needed to get everyone moving in the same direction.

Has the COVID-19 pandemic affected how businesses view AI? Yes, certainly. Ninety-seven percent of companies have accelerated their digital transformation initiatives, and that nearly always includes the implementation of AI or machine learning. This is all because of the “focus” that COVID-19 has given people to take steps necessary to improve their operations and to increase resiliency in their supply chain.

How are businesses reacting and adapting to the stress test that is the COVID-19 pandemic? First, businesses are cutting spending and working on digital communication to make sure they can continue operations despite the pandemic. Secondly, they are initiating DX projects to incorporate more mid-term value into their operations via AI. Last, they are looking to shock-proof their companies by increasing their supply chain resilience.

Beyond the pandemic, what other ways will AI affect the manufacturing industry? I think AI will drive advanced robotics and 3D printing in manufacturing. We’ll also see the ability to increase product variety and increased speed in bringing products to market because of the efficiencies from AI.

What technological challenges does the manufacturing industry face in implementing AI systems? The primary technical challenges come from needing to retrofit a manufacturing plant to make it ready for digital production. Sensors and equipment that generate data need to have a pipeline for that data to get where it needs to go so it can be used for training advanced control systems.

How would a business or industry know when AI is the right solution to a challenge? This comes from a collaboration between AI consultants and engineers and industry leaders. Not every problem needs an AI solution; it’s an analysis of how businesses would use it, the implications of implementing a data pipeline and AI system, and looking at the immediate return on investment and future enterprise capabilities that tells us when a particular project gets the green light.

What are your predictions for the future of AI in manufacturing and other areas of business? Just like they run on electricity, every manufacturing company will be using AI to some degree in the future. This is true for every other area of business. We couldn’t imagine doing work without the PC — well, now those PCs can not only store our information, they can learn from it. And with that comes new capabilities and value that will make our companies and lives much, much better.

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MADE IN IOWA 2020

Lori Schaefer-Wheaton has been involved with manufacturing since she was a young child. Her father, Richard “Dick” Smith, started Agri-Industrial Plastics in Fairfield in June 1978. Schaefer-Wheaton had the honor of working on the first assembly line to make the first part produced at the company — a baby pig feeder. Much has changed since 1978, not only with Agri-Industrial Plastics, a custom industrial blow molder of large-scale parts, but with Schaefer-Wheaton as well. She grew up in Fairfield and attended Valparaiso University in Indiana. After graduation, she immediately joined the workforce with a Fortune 100 technology services company. She stayed there for 10 years, working in accounting, finance and strategic planning. “That 10-year stint at that company prepared me for, well, any type of business,” she said. “I had great experience.” After taking a five-year hiatus to raise her children, Schaefer-Wheaton wanted to reenter the workforce. It was 2004, and it was the first time she had thought about returning to the family business, which was still run by her father and was growing significantly. Her first title was director of business development, and she led plenty of companywide initiatives. Schaefer-Wheaton helped implement the company’s first Continuous Replenishment Program, a lean manufacturing process, and led website and building expansions. She also had a hand in creating a management structure and creating systems to improve organizationwide efficiencies. By 2014, Smith retired, and Schaefer-Wheaton formally took

over as president. It wasn’t a huge step — she was already familiar with the intricacies and inner workings of the business. And since her beginnings with the business, her priorities haven’t changed. It’s all about surrounding yourself with the right people. “I don’t know that my priorities have changed too much,” Schaefer-Wheaton said. “My goal is always to hire really good, really smart people and then empower them and get out of their way. I let them go but do it within a framework where we’re all moving in the same direction.” Agri-Industrial Plastics has expanded significantly in the past decade. It now has 28 blow-molding machines, 200 employees and 350,000 square feet of working space. The company creates all kinds of industrial parts for international companies, like non-automotive fuel tanks for turf equipment, power sports, and the agricultural and marine industries. Schaefer-Wheaton is proud of her company’s and family’s manufacturing history. “The beauty of manufacturing is you’re creating something,” she said. “You’re watching people, machines and a process take raw materials and create a product. And that’s pretty cool. And it’s really exciting. Manufacturing is quite literally creating wealth. You put inputs in, and the products come out more valuable. There’s something exciting about that.”

LORI SCHAEFER-WHEATON

WOMEN IN MANUFACTURING

SPONSORED BY ABI

Lori Schaefer-Wheaton took part in the Women Leaders in Manufacturing panel at the Iowa Association of Business and Industry’s Advanced Manufacturing Conference on Sept. 30.

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When Molly Varangkounh joined Hy-Capacity, her family’s business, in 2001, there wasn’t a planned trajectory. She started as an accountant, leveraging her professional experience in business, and came in with the goal of learning and asking questions. “Over the course of my time here, I’ve really tried to gather information,” said Varangkounh, now the president of the company. “I’ve tried to shift into the best question-asker.” Varangkounh’s grandfather, Jason “Scratch” Olson, started the company in Pocahontas in 1978. He took tractor parts and beefed them up to give local farmers “higher-capacity” parts. Since then, the company, which moved to Humboldt early on, has made all kinds of tractor products, including clutches, water pumps, torque amplifiers, seats, cab kits, air conditioning, engine overhaul kits, lights and more. Varangkounh said she was the only one of her family to not work at the company during their high school years. But when she returned to Hy-Capacity, she caught on quickly. Her father, Steve Olson, was leading the company and encouraged her to join leadership meetings, helping her glean some of the inner workings. Varangkounh took a role on the board of directors fairly early in

her tenure, in the early 2000s, and became vice president. She took over as president in 2013. Being a woman in manufacturing, particularly one who wasn’t that familiar with tractors, had its challenges. But Varangkounh worked hard to overcome them. And her father didn’t care much for societal norms. He surrounded himself with smart leaders. “There’s this stigma that girls just don’t understand this,” she said. “I went on a several-year mission to listen and learn. I think if I would’ve come in here with all the answers, first of all, I wouldn’t have been right. Second of all, I would have alienated some people.” Varangkounh said manufacturing can be for anyone, and there are opportunities for anyone to make a career in the industry. “I love the creativity that comes from manufacturing, but also the creativity that comes from tackling a problem,” she said. “It’s not a dirty job. Girls can do it, and girls can enjoy it. There are tremendous opportunities within a manufacturing company.”

MOLLY VARANGKOUNH

WOMEN IN MANUFACTURING

SPONSORED BY ABI

Molly Varangkounh took part in the Women Leaders in Manufacturing panel at the Iowa Association of Business and Industry’s Advanced Manufacturing Conference on Sept. 30.

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The Iowa Economic Development Authority celebrates the men and women of Iowa’s advanced manufacturing industry who have built a strong foundation for our state’s future. From aerospace products to machinery and medical devices, Iowa’s No. 1 business sector boasts a proud history of innovation and perseverance. With ample resources, an e�cient infrastructure and a talented workforce, we’re perfectly positioned to accommodate a wide array of business needs. Learn more at IowaEDA.com.

/ Nevada, IA

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The Iowa Economic Development Authority celebrates the men and women of Iowa’s advanced manufacturing industry who have built a strong foundation for our state’s future. From aerospace products to machinery and medical devices, Iowa’s No. 1 business sector boasts a proud history of innovation and perseverance. With ample resources, an e�cient infrastructure and a talented workforce, we’re perfectly positioned to accommodate a wide array of business needs. Learn more at IowaEDA.com.

/ Nevada, IA

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MADE IN IOWA

Phone | 678.566.9565 Website | www.stryten.com Address | 913 South 10th Street Manchester, IA 52057

325 Employees

MEMBER

Originally established in 1974, New ownership 2020

WORKFORCE: YEAR

ESTABLISHED:

BATTERIES

WHAT IT DOES:

HOW IT’S MADE:

Stryten’s batteries help power the world. Products come in a variety of sizes, voltages, and capacities, all based on the application and design of the products they will power.

The Manchester, Iowa, Stryten facility is comprised of three main areas: metals, assembly and formation. The metals department manufactures lead oxide and grids, and negative and positive plates. Assembly creates a configuration of lead-based plates into an element, which is then loaded into cells within a plastic container and welded together. The formation department adds sulfuric acid into the cells and places the products on charging tables to activate the battery. In all, the manufacturing process takes about one week.

Lead acid batteries are the most recycled consumer product in the U.S with a 99.3% recycle rate

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MADE IN IOWA

Phone | 712.542.5500 Website | www.clfab.com Address | 420 S 8th St. Clarinda, IA 51632

<25 Employees

<$10Million

2010

WORKFORCE: ANNUAL

REVENUE:

YEAR

ESTABLISHED:

DOMINATORTREE PULLER

WHAT IT DOES:

HOW IT’S MADE:

The dominator tree puller can dig, saw, rip, and pull, and is perfect for removing trees from a property. The twin-cylinder tree-and-post puller and grapple guard features a 60-inch opening and steel jaws designed to get the job done quickly and efficiently. The product fits on most loaders or tractors.

The product is created in the company’s Clarinda location, with component parts cut from an in-house laser and plasma table. Before being shipped, all CL Fabrication products are shot blasted to provide a more durable powder coat finish.

As a small family-owned company with less than 25 employees, we offer a 5 year structural warranty on all products and ship world-wide.

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MADE IN IOWA

Phone | 641.585.3535 Website | www.winnebagoind.com Address | 605 W Crystal Lake Rd. Forest City, IA 50436

5500 Employees

$2 Billion

MEMBER

1958

WORKFORCE: ANNUAL

REVENUE:

YEAR

ESTABLISHED:

INTERNSHIP/

APPRENTICESHIP:

WINNEBAGO MOTORHOMES

WHAT IT DOES:

HOW IT’S MADE:

HOW LONG IS THE PROCESS?

Winnebago motorhomes provide a wide spectrum of products designed to provide outdoor recreation and enjoyment. Applications include compact van based products, rugged outdoor adventure vehicles and a full slate of offerings up through luxury Class A diesel pusher coaches.

Our Iowa motorhome production operations are vertically integrated and include a wide variety of unique capabilities ranging from metal processing, aluminum extrusion, rotational molding and thermoset plastic, furniture and cabinetry production as well as wire harness manufacturing.

We help our customers explore the outdoor lifestyle, enabling extraordinary experiences as they travel, live, work and play.

The complete manufacturing cycle for a motorhome will vary with complexity of the product but will take several days from start to finish.

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MADE IN IOWA

Phone | 515.465.9363 Website | www.percival-scientific.com Address | 505 Research Dr. Perry, IA 50220

80 Employees

MEMBER

1886

WORKFORCE: YEAR

ESTABLISHED:

INTERNSHIP:

WALK-IN ROOMS

WHAT IT DOES:

HOW IT’S MADE:

Percival leads the controlled environment industry with the most customizable walk-in solutions for specialized and expanding research operations. Percival’s walk-in rooms can be configured to any size. We can easily add more rooms and modify any configuration as a research operation grows. Our consultants work closely with our customers to provide a product with various research needs which includes plant growth, cannabis research, food production, climate change and many more applications. Programming our walk-in rooms is intuitively easy using our IntellusUltra touchscreen. Walk-in rooms with our proprietary scientific LED lighting are engineered specifically for light quality studies and other experiments requiring specific light wavelengths.

We engineer, custom-build and install durable and thoughtfully designed controlled environments for nearly any research need. We design, build and test them in-house, ensuring seamless production and a high level of quality control.

Our products are used in all 50 states and in more than 79 countries.

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Phone | 855.262.4000 Website | www.thebakergroup.com Address | 1600 SE Corporate Woods Dr. Ankeny, IA 50021

PIPING, ELECTRICAL, AND

PLUMBING ASSEMBLIESWHAT IT DOES:

HOW IT’S MADE:

No two buildings are alike. Each unique in architecture, purpose, and occupancy. Baker Group designs and manufactures custom systems to serve the occupant needs in each unique building. Mechanical, electrical and plumbing (MEP) systems are integral to every new construction or building renovation project. These systems assure proper heating, cooling, ventilation, electrical power, and sanitary sewer systems for the people in the buildings. These systems are designed and manufactured at Baker Group and assembled at the jobsite.

The process starts with a conversation. Baker Group’s design team carefully listens to the building owner’s desires and creates these support systems within building code requirements, while implementing energy conservation opportunities.

700 Employees

$200 million

MEMBER

1963

WORKFORCE: ANNUAL

REVENUE:

YEAR

ESTABLISHED:

INTERNSHIP/

APPRENTICESHIP:

Why is this important? Utilizing off site Advanced Manufacturing accelerates the building construction schedule and improves system quality. Plus, it reduces the construction jobsite clutter for other trades.

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REACH OUT TODAY! 1(800) 372-6031 | www.proteusinc.net

Need skilled workers? Have applicants that have done farm work in the past

two years?Proteus can help!

You may qualify to get part of their wages reimbursed. They may receive financial assistance in upskilling for your trade or business.

The National Farmworker Jobs Program is funded 100% by the U.S. Department of Labor, PY2019 funding $1,488,387