Like all entrepreneurs, small and medium-sized manufacturers (SMMs) struggle to maintain a successful business. In addition to managing day-to-day operations, they must handle hiring, business development, regulations, and other concerns. With all that daily responsibility, focusing on taking the business to the next level can be challenging. Fortunately, there are organizations like California Manufacturing Technology Consulting® (CMTC) that can lend a helping hand.
Supporting SMMs Statewide
CMTC is a private non-profit organization and part of a National Network of 51 Manufacturing Extension Partnership® (MEP) Centers (one in every state and Puerto Rico) tasked and funded by the Department of Commerce to support SMMs. With over 30 years of experience providing SMMs with technical assistance, workforce development, and consulting services, CMTC is dedicated to providing solutions that increase California’s manufacturers’ productivity and global competitiveness. In doing so, they hope to improve California’s manufacturing and public good.
To expand its capabilities and capacity to serve more manufacturers in California, CMTC formed California’s Manufacturing Network (CMN). This Network, made up of a collaboration of 24 partners, helps to address the regional challenges driven by a diverse manufacturing community. With CMN in place, CMTC has increased the number of SMMs they serve to more than 1,600 companies annually, significantly impacting California manufacturers and the state’s economy.
In addition to providing technical assistance to SMMs, “One of our strategic imperatives is to champion manufacturing,” said Jim Watson, President and CEO of CMTC. “Our goal is to educate and showcase the value of manufacturing to the California economy. We leverage our partnerships throughout the state to promote manufacturing.”
Helping California Lead in Manufacturing
CMTC’s expert team delivers an array of critical services such as strategic planning, quality management, Lean/Continuous Improvement, cybersecurity, supply chain optimization, and much more. In addition, CMTC leads impactful buyer/supplier marketplaces like California’s Sourcing & Procurement Platform (CSPP) which allows manufacturers to connect and collaborate, showcase their business, and explore opportunities to expand into new markets.
“Part of our job is to help manufacturers find critical suppliers, especially in California, to expand their businesses. We also help with supplier development to ensure suppliers put their best foot forward to handle new and existing customers,” said Watson.
Showing SMMs a Path Forward
Much of CMTC’s work centers around aiding SMMs with expansion. Too often, smaller businesses are so focused on day-to-day operations that they have limited time to develop a growth strategy.
“A lot of our role is to help manufacturers chart a path forward,” said Watson. “For smaller manufacturers, limited available time allows them to work in the business more than on the business. We ask them to look into the future, encouraging them to focus on the business. Do they want to grow? How do they want to grow? How do they control costs? What are the industry requirements? Where should they look for market expansion? What do they think are their impediments to business growth?”
MRIaudio in Carlsbad, CA is one of CMTC’s success stories. MRIaudio is a small, veteran-owned company that manufactures MRI-compatible audio systems for medical imaging facilities. When one of MRIaudio’s biggest clients required that the company become ISO certified, CMTC stepped in to provide their support. CMTC worked with MRIaudio to develop a program and strategy for preparing the company for ISO certification. With help from CMTC, MRIaudio was able to achieve ISO certification, allowing them to maintain their customer relationship while creating new business opportunities. As a result, MRIaudio nearly doubled its revenue last year.
Successful Manufacturing in the “New Normal”
Watson observes that things have changed since the pandemic as SMMs adjust to the “new normal.” The uncertainty in customer demand, workforce shortages, and disruptions in the supply chain have forced SMMs to rethink how they run their businesses. It has also encouraged them to focus on improving their performance and the performance of their suppliers.
He identifies that controlling costs, connecting with workforce partners, and engaging in supplier sourcing can help manufacturers address market, workforce, and supply chain challenges.
Watson also notes that SMMs are benefiting from exploring automation. However, a recent CMTC study revealed that many manufacturers do not fully understand the automation alternatives for their businesses, so CMTC needs to expand the development of technology roadmaps to chart a path forward through the maze of technology solutions.
With the growth in automation, there will be new employment opportunities. Manufacturers must have support in finding skilled candidates to fill these positions as every manufacturing job benefits the California economy by supporting 2.5 jobs in other sectors. It is reported that California manufacturing, with exits and transfers, will have a demand of approximately 129,000 jobs in the coming year.
“A great pathway to increase competitiveness and growth is for manufacturers to become more productive,” Watson said. “Automation can accelerate productivity gains and, as a result, more manufacturers (especially SMMs) will embrace technology.”
No matter what the future holds for SMMs, the CMTC team will be there to help California manufacturers implement solutions to increase productivity and profitable growth.
