Manufacturers talk, Chamber listens

 

  By KAREN GENTRY
MiBiz • kgentry@mibiz.com

MUSKEGON — A variety of Muskegon area manufacturing personnel, representing 35 companies, met Sept. 28 for the first Muskegon Manufacturing Summit sponsored by Muskegon Area First and the Muskegon Area Chamber of Commerce.

Muskegon Area First President/CEO Jim Edmonson said MAF’s Manufacturing Council wanted to talk to the manufacturers as part of the planning process for Council’s programming for the next couple of years.

"There was a nice representation of companies, large and small with different manufacturing sectors represented," Edmonson told MiBiz. Mary Robb, Michigan State University Extension program director, who served as summit facilitator, submitted a report to Edmonson.

"We will share the results with our council (Manufacturers Council) and come up with new programs based on what manufacturers said would be helpful," Edmonson said.

He noted employee training and networking opportunities are important to manufacturers so MAF will continue to provide workshops on lean manufacturing and schedule times for business leaders to visit each other’s shops.

Because manufacturers indicated they want more direct connection between education and industry, MAF will consider expanding the service levels of its Educator in the Workplace program.

"When all is said and done, we have everything in Muskegon County and we need to share with each other our best practices – share what we’re doing and share in the resources already here," Scott Erdman, president of Whitehall-based Erdman Machine Co., told MiBiz.

He said the first manufacturing summit was a good way to help people pursue the solutions they are looking for because many Muskegon area manufacturers aren’t aware of the technical training opportunities available through Muskegon Community College and the Muskegon Area Career Tech Center.

He also commended MAF for promoting the area, and the Manufacturer’s Council for bringing industries together in various work groups.

Wes Eklund, president of Muskegon-based Fleet Engineers Inc. was also pleased with the turnout of the first summit.

"We had some people there who do not participate in the Manufacturers Council and I think they realized some things that are being done that they are not taking advantage of," Eklund told MiBiz. He said it’s important for manufacturers to understand what state and local incentives are available and MAF and the Muskegon Chamber can be an advocate for manufacturing to make sure the area gets those benefits.

With approximately 700 manufacturers, Muskegon continues to hold its own with many new companies opening shops and existing companies expanding, according to Edmonson. He attributes the area’s manufacturing strength to growth clusters that are doing well including military and commercial aerospace, and primary metal fabrication – everything from camshafts to table leg supports.

"It’s (metal fabrication) been an ongoing strength that is in high demand right now," Edmonson said.

Eklund concurs that it’s all about diversification. "The Muskegon economy is now more diversified than in the last 50 years. It’s not dependent on the typical major industries in Michigan as it has been in the past," he said.

Both Erdman Machine Co. and Fleet Engineers are examples of growing companies. Erdman Machine, a supplier of tooling and machining to the aerospace industry, has been in business for 10 years and has grown from four employees to 40 and from less than $500,000 in sales the first year to $3 million in annual sales.

"Aerospace is going real well right now," Erdman said, noting all the excess capacity from the business falloff from 9/11 has been consumed. "People are wanting more efficient engines for the airplanes."

Fleet Engineers, designers and manufacturers of components and accessories for heavy-duty trucks and trailers, grew 12 percent last year with an expected 4 percent growth this year.

"Business has been great the last couple of years. It is peaking right now – next year will be not quite so good," Eklund said. He noted new federal regulations that go into effect after Jan. 1, 2007 will push up the cost of diesel engines by $12,000 per engine and many of his customers are buying diesel engines now to beat the price increase.

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ALL RIGHTS RESERVED.

This article appeared in the October 16, 2006 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who do business in West and Southwest Michigan. For further information about MiBiz Network, visit www.mibiz.com.


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