North Iowa Corridor Economic Development Corporation Supply Chain Project

Transcription

1 North Iowa Corridor Economic Development Corporation Supply Chain Project Drew Conrad, CEcD, CCR Sr. Program Manager The Institute for Decision Making The University of Northern Iowa June 5, 2014

2 Project Background North Iowa Corridor EDC project goals: Greater knowledge of key manufacturers supply chain relationships Potential of leveraging supply chain relationships in the EDC s business attraction and existing industry expansion efforts. NICEDC participated in the North Central Iowa Region Industry Targeting Project

3 Cerro Gordo County

4 Examination of the Manufacturing Base Over 3,100 manufacturing jobs 52 manufacturing establishments 23 had fewer than 10 employees 13 had 50 or more employees Key Industries (# of estab.) Food manufacturing (11) Printing and related support (6) Nonmetallic mineral product manufacturing (6) Fabricated metal product manufacturing (5) Furniture related manufacturing (5)

5 Key Manufacturers NAICS Industry All Other Plastics Product Manufacturing Meat Processed from Carcasses All Other Miscellaneous Food Manufacturing Metal Window & Door Manufacturing Other Aircraft Parts & Auxiliary Equipment Manufacturing Wood Window & Door Manufacturing All Other Miscellaneous Food Manufacturing Cement Manufacturing Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers Mattress Manufacturing Wood Kitchen Cabinet & Countertop Manufacturing

6 Examination of Manufacturing Base Sources Utilized: Quarterly Census of Employment & Wages (BLS/IWD) Proprietary employment estimates (DemograhicsNow & EMSI) County Business Patterns (Census Bureau) Iowa Manufacturing Register (Manufacturers News, Inc.) ReferenceUSA Hoover s Data from NICEDC business visitation program Employers websites

7 Analysis of Input-Output Data Wanted to examine the estimated buying/ selling between industries and indirect impacts Indirect effects are the results of industries purchasing from each other Very helpful background information for the employer interviews Created an IMPLAN model for each key manufacturer Used sales estimates for each key manufacturer

8 Indirect Estimates for Meat Processed from Carcasses Manufacturing Largest Estimated Indirect Effects for Manufacturing Sectors Animal (except poultry) slaughtering, rendering, and processing Other animal food manufacturing Poultry processing Paperboard container manufacturing Findings From Company Visit 3 of 4 manufacturing sectors were major linkages Key inputs/linkages not appropriately reflected by IMPLAN Salt - Spice and Extract Manufacturing (311942) Honey & corn syrup - All Other Miscellaneous Food Manufacturing ( Variety of packaging

9 Indirect Estimates for Meat Processed from Carcasses IMPLAN Industry Description Estimated Indirect % of Total code 11 Cattle ranching and farming $22,276, % 14 Animal production, except cattle and poultry and eggs $12,729, % 31 Electric power generation, transmission, and distribution $1,367, % 42 Other animal food manufacturing $2,265, % 44 Wet corn milling $15, % 45 Soybean and other oilseed processing $113, % 59 Animal (except poultry) slaughtering, rendering, and processing $8,514, % 60 Poultry processing $1,175, % 68 Seasoning and dressing manufacturing $92, % 107 Paperboard container manufacturing $383, % 108 Coated and laminated paper, packaging paper and plastics film manufacturing $44, % 109 All other paper bag and coated and treated paper manufacturing $22, % 142 Plastics packaging materials and unlaminated film and sheet manufacturing $55, % 143 Unlaminated plastics profile shape manufacturing $3, % 335 Transport by truck $4,318, % 340 Warehousing and storage $426, % 351 Telecommunications $710, % 388 Services to buildings and dwellings $529, % 390 Waste management and remediation services $163, %

10 Employer Interviews Talked with 8 of 11 key manufacturers Talked to production managers and/or supply chain managers Level of openness varied Many were more open than we expected! The most open were those engaged in the community & with the EDC

11 Employer Interviews Key questions asked: What products are produced in the facility? Who do they sell their finished products to? What major inputs are used to produce the finished products? Where and how do they source those major inputs? Which suppliers would they benefit from having closer? Are they aware of other businesses that use any of their suppliers?

12 Employer Interviews Key findings: 1. Some of the local facilities have limited flexibility, or even influence, over their supply chain decisions 2. Discovered that a couple manufacturers have potential product line expansions but need support to move forward R&D technical assistance, facility expansion, etc. 3. Typical BRE visits/surveys would have likely not surfaced this level of details

13 Mapping Supply Chains We gathered and utilized additional supply chain information to finalize the mapping: Company literature and websites Key manufacturers & suppliers/customers Several had detailed supplier/customer info on website Secondary sources IBISWorld, ReferenceUSA, Hoovers, ABI/INFORM Complete, Gale Virtual Reference Library, ThomasNet (Thomas Register) and others

14 Meat Processed from Carcasses Pork Animal (except Poultry) Slaughtering (NAICS ) Meat fillers (Turkey, chicken, ham muscles & beef) Animal (except Poultry) Slaughtering (NAICS ), Meat Processed from Carcasses (NAICS ) & Poultry Processing (NAICS ) Chicken Mountaire Farms Ham muscles JBS Swift Manufacturing Packaging Corrugated and Solid Fiber Box Manufacturing (NAICS ) International Paper RockTenn Packaging Corporation of America Package/poly pack bags vacuumed sealed All Other Plastics Product Manufacturing (NAICS ) Sealed Air/Cryovac Salt All Other Miscellaneous Chemical Product and Preparation Manufacturing (NAICS ) Cargill Meat Processed from Carcasses NAICS Demand Industries Grocery stores Restaurants/delis Food service contractors Nitrites All Other Basic Organic Chemical Manufacturing (NAICS ) Honey All Other Miscellaneous Food Manufacturing (NAICS ) Sugar Sugar Manufacturing (NAICS 31131) Corn syrup/dextrose Wet Corn Milling (311221) & All Other Miscellaneous Food Manufacturing (NAICS ) Cargill Package/cooked in bags Coated Paper Bag and Pouch Manufacturing (NAICS ) Curwood Casings/Nettings Animal (except Poultry) Slaughtering (NAICS ), Meat Processed from Carcasses (NAICS ) & Unlaminated Plastics Profile Shape Manufacturing (NAICS ) Dickson Industries Viscofan Kalle USA Vista International Packaging Walsroder Packaging Piscase

15 Metal Coating, Engraving and Allied Services to Manufacturers Adhesives Adhesive Manufacturing (NAICS ) 3M Flexcon Plastic/polyethylene film Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing (NAICS ) 3M Flexcon Custom Fixed Asset Tags & Labels Anodized aluminum Electroplating, Plating, Polishing, Anodizing, and Coloring (NAICS ) Lawrence & Frederick Photo anodized aluminum Electroplating, Plating, Polishing, Anodizing, and Coloring (NAICS ) Horizons Imaging Systems Group Radio-frequency identification (RFID) inlays Other Electronic Component Manufacturing (NAICS ) Ultraviolet inks Printing Ink Manufacturing (NAICS ) Corrugated boxes Corrugated and Solid Fiber Box Manufacturing (NAICS ) Boxes Unlimited Antistatic bags Plastics Bag and Pouch Manufacturing (NAICS ) Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers NAICS Demand Industries Businesses Educational institutions Government agencies and departments

16 All Other Plastics Product Plastic resin Plastics Material and Resin Manufacturing (NAICS ) Shannon Industrial Corp Manufacturing Plastic Scentports Colors for plastics Synthetic Dye and Pigment Manufacturing (NAICS ) & Custom Compounding of Purchased Resins (NAICS ) Color Master Incorporated Wire harnesses Other Communication and Energy Wire Manufacturing (NAICS ) Fragrance for scentports All Other Basic Organic Chemical Manufacturing (NAICS ) Barton Solvents All Other Plastics Product Manufacturing (NAICS ) Demand Industries Retailers Glass bottles Glass Container Manufacturing (NAICS ) Plastic bottles Plastic Bottle Manufacturing (NAICS ) Plastic packaging Plastics Bag and Pouch Manufacturing (NAICS )

17 Potential Targeted Industries 1. Packaging Product Manufacturing Nearly all use some type of plastic packaging, film or sheets to package or wrap their products: Plastics Bag and Pouch Manufacturing (NAICS ) Plastics Packaging Film & Sheet Manufacturing (NAICS ) Unlaminated Plastics Film & Sheet (except Packaging) Mfg. (NAICS ) Most use corrugated boxes, solid fiber boxes and other paperboard containers: Corrugated and Solid Fiber Box Manufacturing (NAICS ) Other Paperboard Container Manufacturing (NAICS )

18 Potential Targeted Industries 2. Hardware Related Manufacturing A couple manufacturers are heavy users and have tried to find a closer supplier Hardware Manufacturing (NAICS ) Bolt, Nut, Screw, Rivet and Washer Manufacturing (NAICS ) 2. Paint and Coating Manufacturing Several use paints and/or stains in their production processes Paint and Coating Manufacturing (NAICS )

19 Other Recommendations 1. Work with manufacturers on potential product line expansions 2. Continue to gather information about major suppliers and potential opportunities to attract those suppliers 3. Identify opportunities for entrepreneurs to become suppliers or contract suppliers

20 How the EDC is Using the Research Recalibration of our business attraction strategy to focus more closely on buyer and supply-chain relationships within our existing business sector.

21 How the EDC is Using the Research Allowed us to ask the right questions relative to attraction and strategic/joint venture potential of our existing employers, and their answers have resulted in a more targeted, efficient and effective attraction process.

22 Questions? Drew Conrad, CEcD, CCR Sr. Program Manager The Institute for Decision Making The University of Northern Iowa