MAKE SOMETHING NEW.

• Position: ROUND TABLE: MANUFACTURING

Manufacturing is a cornerstone of North Carolina's economy, and it has been for decades. But it's evolving. The COVID-19 pandemic choked supply chains and altered customer bases, adding business for some manufacturers in the process. Workforce needs, in terms of number of employees and skills, are growing. And new technologies are making factories more like spaceships than Henry Ford's repetitive grind. Business North Carolina magazine recently gathered leaders and experts from the industry to discuss these changes, how manufacturers are stepping up to meet them and how they'll affect this important part of the state's economy in the long run.

PANELISTS

Geoff Foster

president and CEO, Core Technology Molding

Patrick Jacques

program director and apprenticeship coordinator, Robeson Community College

Phil Mintz (moderator)

executive director, N.C. State University Industry Expansion Solutions; director, North Carolina Manufacturing Extension Partnership

Sharon Paynter

acting chief research and engagement officer and associate professor, East Carolina University

Jerry Pedley

president, Mertek Solutions

Matt Wood

national industry leader of commercial products practice, Forvis

Forvis, Robeson Community College and Pitt County Economic Development sponsored the discussion, which was moderated by N.C. State's Phil Mintz. It was edited for brevity and clarity.

WHAT ARE THE CURRENT CHALLENGES AND OPPORTUNITIES FOR NORTH CAROLINA'S MANUFACTURING INDUSTRY?

FOSTER: This is the busiest we've been in our 16 years. We saw 300% growth last year, and we doubled the first half of this year compared to last year. While being busy is a good problem to have, it's still a problem that needs to be managed. Lead times are longer in the supply chain. Getting new machines, for example, now takes 12 to 24 weeks, when it used to take four weeks. Hiring has been a challenge since COVID arrived. We are adding robotics and automation to compete with China and other countries, where production costs are less.

PEDLEY: Manufacturing is strong and struggling. Many of our customers make fuel systems for gasoline engines, and they're not buying much right now. Life science and consumer goods seem to have picked up. We're probably as busy as we've ever been, but we can have big projects that we can't ship because we lack a motor or computer chip, for example, to finish them. It keeps a million-dollar machine from supporting a manufacturer. It seems like it would be easy to find these parts somewhere in the world, but it's not. We use eBay and other nontraditional sources to find them. It's a struggle, but our employees are getting it done.

WOOD: The industry is strong. Our companies are watching their top lines grow, and they're forecasting that to continue. But attracting and retaining talent is difficult. Sourcing materials to make products is difficult. And even if they can be made, the shipping logistics are difficult to coordinate. Flexibility and adaptability are characteristics that I see manufacturers embracing. Their executives have to be optimistic, too. Many times, that optimism carries the day as their company searches for ways to do things differently. It may have been easier in the past, but now they need a different way to get that same answer.

JACQUES: Almost every manufacturer in and near Robeson County needs a large number of employees. Their demand often outpaces what the community college can produce. As the number of jobs increases, community college enrollment typically decreases. People think they can skip school and go directly to work because of the plentiful opportunities. But we want to retain our students, so they can finish their degree or program, which set up successful futures. So, we're expanding our apprenticeship programs, which allow them to work and study. Many students already have a job, so it's an attractive option compared to a minimum wage job that barely pays the bills. An apprenticeship gives students the opportunity to learn fundamentals in the classroom and polish their skills with on-the-job training. They can apprentice in an industry of their choosing. The college also has discussed scheduling classes for students working traditional second- and third-shift schedules.

PAYNTER: Universities and...