Remaking the gears of industry
Engaged workers are key, author says
For most of the 20th century, Milwaukee was known as the “Machine Shop of the World.”
Iconic names like Harnischfeger, Allis-Chalmers, Ladish and Bucyrus not only helped forge that image, they also built Milwaukee’s middle class.
But those names eroded into the scrapheap of history as American manufacturers attempted to compete in the global marketplace by “chasing” cheaper labor — first in the American South, then in Central and South America and eventually in China and the Far East.
Author Steven Blue says American manufacturers, including those in Milwaukee, can return to global prominence in the 21st century. But to do so, they will have to return to the formula that fueled their success in the previous century, Blue says: “Engaging, empowering and enlightening their people.”
Companies that have such a workforce have an advantage that cannot be commoditized by cheaper foreign competition, Blue says in his new book, “American Manufacturing 2.0: What Went Wrong and How to Make It Right.”
Engaged and empowered employees drive innovation at dynamic manufacturers, according to Blue, who is the president and CEO of Winona, Minn.-based Miller Ingenuity, a global manufacturer of safety equipment for the transportation industry.
“The people side is everything. You can have the smartest factory in the world, but I don’t care. … If your people hate their jobs and hate you, all the technology in the world won’t make a difference,” Blue says.
Blue’s perspective on human resources has Milwaukee roots. He worked in management for 14 years at the former Allen-Bradley Co., a Milwaukee firm that became part of Rockwell Automation Inc. in 1985.
He cites an incident from that chapter of his career in his book.
“A-B knew a lot about how to respect people. The founder, Harry Bradley, used to live in an apartment on the top floor of the factory, and he would often visit with employees on third shift — not to be sure they were working, but to be sure they were being treated well. His outlook and people philosophy permeated the entire organization. Lead-
ers at A-B were trained and expected to treat people with dignity and respect,” Blue wrote.
“I believe there is no reason why we should accept our current state of affairs. To think of a resurgence of manufacturing in America is not science fiction,” Blue said. “It is reality.”
Blue goes so far as to say that the future of the United States depends upon its manufacturers rediscovering how to empower and unleash their people to drive a new century of innovation ... And to share that wealth with the employees who make that innovation happen.
“The decline of manufacturing in America has brought job loss and income stagnation, and it has slammed shut the door that once led to middle-class stability and comfort for millions,” Blue said. “Without a robust manufacturing sector, it is that much more difficult for the average American to achieve the American dream. The middle class is under
siege, and Americans feel it in their pocketbooks. It is a real problem that has real life consequences for our nation. Manufacturing CEOs need to form a new compact with their workforce.”