Nevada Industry Excellence. Presentation to Workforce, Research and Economic Development Committee Board of Regents. May 31/June 1, 2012

Transcription

1 Nevada Industry Excellence Presentation to Workforce, Research and Economic Development Committee Board of Regents May 31/June 1, 2012 Providing Nevada Industries with the Resources for Higher Performance (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 1 of 34

2 Agenda Who We Are Economic Impact Source of Revenues and Leverage of State $$ What We Do Client Engagements What NIST-MEP brings to Nevada NSHE Institutions and NVIE Other Partners Challenges (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 2 of 34

3 NVIE - Who We Are - NVIE is a Statewide Industrial Outreach program for NSHE. The Director reports to the Vice Chancellor, Academic and Student Affairs, NSHE. -NVIE is also the Nevada MEP Center, one of 59 NIST/MEP Centers in the U.S. NIST = National Institute of Standards and Technology with the Department of Commerce MEP = Manufacturing Extension Partnership within NIST NIST/MEP is the Federal fund provider to NVIE (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 3 of 34

4 The MAP Team Utilizing over 200 university, college and third-party consultants to bring top, cost-effective and proven services to clients throughout the state of Nevada. 4 (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 4 of 34

5 NVIE Advisory Board Tony Ciorciari Crystal Abba Board Chair Formerly Executive Vice President of Global Operations, IGT Vice Chancellor, Nevada System of Higher Education Ron Zurek Ray Bacon Vice President, Administration and Finance University of Nevada Executive Director, Nevada Manufacturers Association Mike Skaggs Deputy Director, Governor s Office of Economic Development Tim Crowley President, Nevada Mining Association BJ Sullivan President Clark & Sullivan Constructors Harv Hornung General Manager, Nevada Heat Treating Bret Murphy Dean, Applied Science, Great Basin College John Williams President, Young Electric Sign Company, YESCO Bob Shriver Independent Consultant - Reno (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 5 of 34

6 NVIE Economic Impact over the last 10 years $ 955 Million Positive Impact 4,974 Jobs for Nevada Industry Sales Increase and Retention* $225,646,119 Industrial Cost Savings* $ 72,066,799 Job Creation and Retention** $429,377,204 Increased Investment* $228,384,921 Total $995,475,043 * By NIST/MEP survey firm Turner **Number of Jobs from Turner survey times Nevada CED average annual salary multiplied by NDA economic impact rate of 2.3 Employer and Job-Focused Efficiencies and Top Line Growth (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 6 of 34

7 Performance Metrics - Clients and Performance by Employee Size 76% of NV Manufacturers have fewer than 20 employees Over the last three years: 28% of companies surveyed had fewer than 20 employees 14% of impacts reported were from companies with fewer than 20 employees $287,767 average annual impact reported from companies with less than 20 employees $764,098 average annual impact reported from companies with more than 20 employees (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 7 of 34 7

8 Financial Leverage through Nevada Industry Excellence FY12 $199,231 $3,041,804 $530,640 $1,500,000 $811,933 $530,640 Leveraging state dollars 6-fold NIST MEP State Client Fees Other Grants (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 8 of 34

9 NVIE What We Do NVIE provides the manufacturing, mining and construction industries of Nevada with services that improve processes, increase profitability and enhance growth. NVIE is aligned with GOED s Economic Development Plan. Experienced NVIE personnel engage NSHE talent as well as tried and proven 3 rd party commercial talent to ensure success of projects. (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 9 of 34

10 Manufacturers in Nevada 1,680 Manufacturers with at least one employee (3500+ with manufacturing NAICS; with primary manufacturing NAICS) 76 % have fewer than 20 employees Manufacturing Employment 51% Las Vegas 36% Reno/Sparks/Carson City 13% Rural areas but most within 60 miles of Reno Area Rural areas mostly served by Northern Nevada Staff Occasional visits Advisory Board member from Elko s Great Basin College Connected to Regional Development Authority Interactive Video (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 10 of 34 10

11 NVIE CORE SERVICES Growth Services Innovation Engineering National Innovation Marketplace ExporTech Sales & Marketing Quality Standards ISO Systems Process Control QuikSigma Quality Systems Clients Energy Services Energy Assessments Conservation Green Network Facility Management FOCUS Lean Systems Manufacturing Office Distribution Product Development (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 11 of 34

12 Nevada Industry Excellence Sets High Standards Successful projects throughout Nevada (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 12 of 34

13 NEVADA MANUFACTURERS CHALLENGES 5% 2% 2% 25% 13% 47% Product innovation/development Identifying growth opportunities Productivity Improvements 15% 10% 30% 35% Employee recruitment and retention Financing Exporting Sustainability in products and processes Managing partners and suppliers Technology needs 72% Other Don't know (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 13 of 34

14 NEVADA MANUFACTURERS Reasons for Working with NVIE 2% 2% 7% 12% Staff Expertise 18% 18% 58% Cost of Services Unbiased Advise Reputation for results Knowledge of your industry Svcs not available elsewhere Lack of other providers nearby 20% 45% Other Don't know (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 14 of 34

15 FOCUS FACILITY OPERATORS CERTIFICATION FOR UTILITY SYSTEMS 406 Billion BTU s savings implemented from energy assessments 1450 Billion BTU s savings identified by FOCUS participants 4,891 Attendees in Public Workshops Workshops broadcast via interactive video to rural areas (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 15 of 34

16 Case Study Diamond Plastics (Golconda) Energy Savings Plastic Extrusion Plant producing PVC pipe with 78 employees. Energy Savings Assessment Staged implementation for use of free cooling (cooling towers) and more energy efficient lighting to save over 4 million kwh of electricity and over $420,000 per year. FOCUS (Facility Operator Cert for Utility Systems) Scaling problems in the cooling towers reduced cooling efficiency and energy savings. Connected to Water Treatment assistance. NV Energy Sure Bet Program resulted in excess of $17,000 for the energy savings associated with the new water treatment plant. (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 16 of 34

17 Case Study MicroMetl (Sparks) Productivity Improvements (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 17 of 34

18 Case Study MicroMetl (Sparks) Productivity Improvements Curb and Specialty Sheet Metal Products for Heating Ventilation and Air Conditioning (HVAC). Lean Implementation (Productivity Improvements) 15 20% reduction in labor costs Work in process inventory decreased by 10% Value added work ratio improved by 37% Profits have increased by 2.5% On-time deliveries improved by 2.3% Investments of more than $215,000 and 3,000 man hours in workforce development (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 18 of 34

19 Case Study Company Sable Systems (Las Vegas) New Sales from Exports Designer and Manufacturer of Respiratory Measurement Equipment for Biologists Labs and Field Work Completed ExporTech program twice, opening 2 new countries for export Grown from 9 to 23 employees Became ISO compliant for new markets UNLV uses their equipment (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 19 of 34

20 Seventeen Companies through ExporTech (Las Vegas) New Sales from Exports Thank you for having me back as an intern for the ExporTech this year. It was a great learning experience and foundation of information that I will be able to use throughout my career. (Quote from Shannon Ensrud, UNLV International Business Student) (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 20 of 34

21 Case Study Sherwin Williams (Fernley) Efficiencies allow for New Product Line Paint Manufacturing Facility Plant Start-Up Assistance in 2005/2006. Connected with NCED and facilitated TEN Grant totaling $85, During the economic downturn, NVIE prepared on Sherwin s behalf, a Lay-Off Aversion Grant totaling $144,814 funding the innovative interweaving of Leadership Training, High Performance Team development, and establishment of a Lean Manufacturing Culture and Continuous Improvement. 11% improvement in conversion cost per gallon, 12% improvement in productivity (gallons per man hour), 10% improvement in quality metrics. 75% less recalls than in previous years (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 21 of 34

22 Case Study Sherwin Williams (Fernley) Efficiencies allow for New Product Line 6% improvement in reactive maintenance calls Productivity is 28% greater than Sherwin-Williams next best water-based emulsion plant Received the Sherwin-Williams Corporate Global Best Site Award 2011 NVIE wrote on behalf of Sherwin, a Phase 2 Lean Culture and Individual Skills Training Grant for $230,000 that also measures energy savings and carbon footprint reductions Received the Sherwin Williams Corporate International Housekeeping Award. $460,000 in training grant support for the Fernley company. (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 22 of 34

23 Case Study Fisher Space Pen (Las Vegas) Manufacturers the finest writes anywhere in any direction pen exclusively used on all NASA manned space missions. Completed ExporTech program Improved order processing time Decreased payment processing time Developed metallurgical inspection procedure with UNLV talent (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 23 of 34

24 Case Study US Ordnance (McCarran) Manufacturers Machine Guns Nevada s second largest defense contractor. Quality Management System Technical design of Coating Line Analysis of make/buy for Heat Treatment Work Flow and Plant Floor Layout Productivity Improvements HR and Financing Assistance MRP/ERP Assistance (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 24 of 34

25 What Dept. of Commerce NIST-MEP Brings to Nevada $756,000+ annually National network of professionals serving manufacturing Tools to introduce to manufacturers Growth ExporTech, Lean Product Development, Buy America programs, Productivity Improvements MEP as a partner with DOE, EDA and more Third party surveys showing impacts National Knowledgebase and Marketplaces National Certifications (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 25 of 34

26 Next Generation Strategies for Manufacturers (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 26 of 34

27 NVIE and NSHE NSHE Institutions and NVIE Implementation beyond training Promotion of NSHE access and services NVIE staff are focused on employers needs and plant-floor implementation Project management staff of 8 in the field regularly Our workshops introduce our plant-floor svcs. Interns for ExporTech last 3 years Community Colleges as trainers for workforce Universities for research, commercialization, and continuing education (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 27 of 34

28 NVIE and GOED already partnering but can do more Train-Employees-Now Other Partners - GOED Advise Regional Development Authorities for supply chain for recruitment and retention Procurement Outreach Program referrals NVIE can support the Industry Clusters. Model of Carson Manufacturers Forum formed July original manufacturing members Efforts enhanced by WNC and NNDA Tools are available from national NIST-MEP for manufacturers in Nevada. NVIE could expand the third party survey for GOED s use. (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 28 of 34

29 Partners - Workforce Investment Boards (WIB) Workforce Connections and Nevadaworks SESP program Layoff Aversion program Federal level encouraging WIB and MEP partnerships (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 29 of 34

30 Partners - Other State Agencies NSOE Business and Industry DETR (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 30 of 34

31 NVIE Sustainability of Program - Retaining Staff - Managing with Decreasing State Funds - Visibility to Decision Makers - Mechanisms for financial transactions with NSHE Institutions - Integrating with the Universities for Economic Development - Shifting services more toward top-line growth - Increasing requirements from Federal Sponsor - Some legal restrictions for our on-site work with mining industry (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 31 of 34

32 NVIE Website (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 32 of 34

33 Thanks for your attention! Sandy Haslem NVIE Director Office: FAX: Cell: (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 33 of 34

34 Discussion and Q&A (WORKFORCE, RESEARCH & ECONOMIC DEVELOPMENT COMMITTEE 05/31/12) Ref. WRED-3a, Page 34 of 34