How to Make It in America: An Interview with the Austin Regional Manufacturers Association (ARMA) Executive Director

ARMA (Austin Regional Manufacturers Association) is a non-profit organization based in Austin, TX, on a mission to 'be the voice and advocate of manufacturing in the Austin metropolitan are.' Formed in 2013, with just eight members, they have grown from strength to strength and currently have a membership of over 165. We met with Ed Latson, ARMA's Executive Director and one of its founding members, to find out more.

Let's start with a short bio and a brief history of how you started ARMA.

My background is in consulting and business development. Prior to working with ARMA, I was the director of marketing for a group called TMAC (Texas Manufacturing Assistance Center).

TMAC is non-profit, and receives a grant from the Department of Commerce to provide consulting services to small and medium-sized manufacturers. The Department of Commerce recognized the strategic importance of manufacturing in the United States, so they created the MEP (Manufacturing Extension Partnership) program to provide expertise on operational efficiency, quality management, and other strategic resources. The affiliate program in Texas was TMAC.

Then my wife got a couple of international assignments, and we moved overseas to live in Ireland and Malaysia. When I got back two years later, I was looking for a project. I knew there wasn't a manufacturing association in Austin, so I proposed it to my old group, and they supported the idea with funding.

We started ARMA four years ago, as a way to bring manufacturers together and solve problems, as well as making sure companies are forming the local relationships they need to strengthen their business.

What does ARMA do now?

Since we're a start-up, initially we were limited by bandwidth, but four years into it and we've grown tremendously. We're at 165 members now, and our three focuses are on Advocacy, Workforce Development, and Networking.

Under Advocacy, we're out trying to influence policymakers and make sure they know what's important for our businesses to survive. We're also promoting manufacturing to make sure that people in the region understand the kind of businesses that are here, understand that manufacturing is hi-tech –not old world smokestacks and dirty jobs. We're talking about people who make cell phone chips, IV bags, gas pumps – some really advanced products. Some great customized furniture as well for your office – I'm sure you guys can speak to that – but there are some really solid companies in the Austin area.

For Workforce Development, we're looking at the skills gaps in the community – what companies need out of the labor pool to succeed and grow. We partner with groups like ACC, Texas State Technical College, and other training providers to make sure that they are focused on our needs.

Then with our Networking, we bring people together to make sure peer relationships are being built that can support people's professional development.

Awesome. Out of curiosity, what's something that you see as a major gap in the workforce development?

...

Why do you think we'll lose business to Mexico? It is because of our government regulation or tax, or that it's more expensive in general to be in North America?

People are making decisions based on landed cost, now. Asia picked up a lot of American manufacturing initially, because when people analyze labor costs, they sell it for much cheaper. However, if you factor in transportation and quality issues, it ends up not being such a good deal.

Now, when they're trying to relocate their facilities, they're looking strategically at best cost, highest quality, proximity to key customers, and shortening supply chains, rather than just labor cost. I think they see Mexico, and Central America maybe, as better options. But, again, there are plenty of good examples of companies moving back to the United States – I'm just saying, overall, I don't expect a huge wave of reshoring.

Okay. What's the importance of digitalization in manufacturing (https://formaspace.com/articles/manufacturing/digitizatio...)? Do you think automation and robotics could be the end of unions?

I don't know if I have a huge opinion on how important it is, but it's certainly something that's taking place, and that's going to drive efficiency in the next factories. ARMA is involved with the Smart Manufacturing Leadership Coalition to ensure that those technologies are pushed out to small and medium-sized companies so that they can keep up.

As for a statement on unions, Texas is a right-to-work state, and obviously, that won't be an issue here. I think it could be good for Austin and the workforce in this area. We already have one of the most advanced workforces in the nation and those are the kind of skills that workers are going to need to pick up to win business. The more advanced the manufacturing gets, the more Austin has a chance of being at a competitive advantage to attract businesses.

Do you think it's a threat for the workers?

Read more... https://formaspace.com/articles/manufacturing/how-to-make-it-in-america-arma-interview/?utm_source=openpr&utm_medium=content&utm_campaign=article-120716

Formaspace advances the spirit of discovery and creation through the design and manufacture of custom business furniture. Our furniture marries form to function with flexible solutions for clients in the laboratory, industrial, and office environments.

Formaspace serves over 80% of the Fortune 500, as well as universities, governments, small businesses, and individuals

800.251.1505
design.consultant@formaspace.com
1100 E. Howard Lane, Suite 400 Austin, TX 78753

This release was published on openPR.