Lakeshore Wisconsin Manufacturing Supply Chain Mapping Project

Our Project Focused on 5 counties: Calumet, Door, Kewaunee, Manitowoc & Sheboygan Led by Progress Lakeshore Inc. & Kewaunee County EDC Funded by WEDC and US Econ. Dev. Admin. Basic project introduction here. Also explain why you wanted to do this.

Project Focus Areas Four Manufacturing Sectors Cheese Manufacturing Machine Shops/Metalworking Plastics Product Manufacturing Cutlery and Utensil Manufacturing All sectors have large regional presence and positive growth prospects We opted to look at four core sectors that were among the most important in our region. All of these 4 had a lot of employment, a sizable no. of firms (not just one OEM), and promising growth prospects in the near future. When we map out the value chains of these sectors, we basically include about 80% of all manufacturers in our 5 county region.

Manufacturing Matters to Lakeshore Wisconsin Manufacturing drives our Economy Supports 37,000 local jobs 30% of Total Jobs Promising Prospects despite late 2000s downturn Now back to our 5 county region. We are one of the most manufacturing intensive places in the US 3x more concentrated than the US average.

Key Sectors This map shows our leading manufacturing sectors. Large circles indicate a lot of local jobs and the 2 axes reflect wage levels (vertical) and concentration. There are a few take-aways from this slide: 1) We have very diverse base w/in manufacturing, 2) Most of these sectors pay quite well—far above average, and 3) Many of our most concentrated sectors are growing well. Examples include dairy products, foundries, and ag, construction and mining equipment.

Key Location In addition to being large and diverse, our manufacturers benefit from a great location. This heat map shows the location of manufactuters w/in 150 miles of us. This is a huge potential market for us to tap.

Supply Chain Issues & Concerns EntreWorks Consulting June 16, 2014 Supply Chain Issues & Concerns Industry research suggests supply chain mgmt. is biggest challenge facing manufacturers. Firms are missing . . . Collaboration and visibility within supply chains, Full understanding of the total cost of ownership, and An overall synchronized plan for supply chain management. Before we dig into the details, I want to reiterate why we have this project focus. Supply chains are now business is done today, yet many small (and big) firms don’t know how to manage supply chains or how to operate within them. www.entreworks.net

Mapping Regional Value Chains So our project maps regional value chains for 4 key industries—as noted earlier. This slide shows a sample value chain diagram, showing metal fabricators and machine shops in this case. These diagrams lay out each core industry’s forward linkages (sales made by the core industry, or market opportunities) and backward linkages (purchases made by the core industry, or supplier opportunities). In order to determine the most significant linked industries, our model considers three factors: 1) The directionality of the flows.-Are the linkages forward or backward linkages? 2) The structure of the flows. Who does the core industry buy from, or sell to, most directly? And 3) The volume of flows. What industries does the core industry buy from, and sell to, the most? The colored boxes indicate local concentration levels of each linked industry. The up or down arrows in the linked industry boxes depict whether an industry is growing or declining regionally. The colored arrows indicate the flow of trade–whether the core industry is purchasing or selling within the key sector. The purpose is to identify industries and firms that have extensive trading relationships and are experiencing positive growth in the Lakeshore Wisconsin region.

Key Regional Supply Chain Opportunities Suppliers Customers Increased local food mfg. capacity (Plastics, metalworking, cheese) Better use of by-products (Cheese) Industrial machinery mfg. Metal Fabrication Packaging Innovations (Cheese) Sheet mfg. & motor/generator mfg. Small electrical appliance mfg. (Plastics) This is just a sampling of some of the potential opportunities identified in the analysis—both in terms of finding new suppliers and in terms of potential new markets. Typically, these represent industries that are big suppliers or customers of our core sectors in other parts of the US but which have little or no presence in our five county area.

Other Supply Chain Issues Percentage of Goods & Services Purchased within 150 miles of Location In addition to our other research, we also commissioned a survey of local manufacturers and got some interesting results from this work too. This slide shows local purchasing patterns. We find that only a small no. of firms (26%) due most of their buying in our local area—this suggests that we can improve supply chain connections in our region.

Key Supply Chain Concerns We also asked managers to talk about their supply chain issues and this slide is instructive—it shows both key challenges and benefits related to supply chain. And there are a lot of parallels—firms recognize that better supply chain management will help them get new customers and improve financial performance (blue charts), yet they also identify these 2 areas as the biggest pain points for them (orange chart).

The Value Chain Mapping Tool www.progresslakeshore.org/manufacturingdirectory Progress Lakeshore Inc. & KCEDC Unveil an On-line Supply Chain Mapping Tool unveil a new on-line supply chain mapping tool:  Lakeshore Wisconsin Manufacturing Supply Chain Directory.   The new supply chain networking site is part of a larger regional initiative, the Lakeshore Wisconsin Manufacturing Initiative, to help local manufacturers identify new supplier and market opportunities in key local industries.  The new supply chain connector website can be accessed atLakeshore WI Manufacturing Supply Chain.   It is designed to help local companies find new suppliers and new customers that are closer to home. We will add a screenshot here—might be 2 slides.

Other Action Items Enhance Understanding of Regional Supply Chains Build Better Supply Chain Connections Develop New Markets Develop Talent Our project provides some useful tools for local firms, but it’s primarily a research effort where we are compiling data and analysis. We also recognize that this is just the beginning and that we need a comprehensive effort to help with supply chain issues but also to strengthen local manufacturing more generally. These are some of the other areas where we plan to focus our attention.

Peter A. Wills | Executive Director Progress Lakeshore 920.482.0540 Email:  peter@progresslakeshore.org Website:  www.progresslakeshore.org   Jennifer K. Brown | Executive Director Kewaunee County Economic Development  920.255.1661 Email:  brownjk@kcedc.org Website:  www.kcedc.org