What’s Inside:
VP/GM Message New Hires and Farewells Employee Appreciation Service Anniversaries
February 2023 Newsletter MAAGAZIN
Safety Message Employee Hobby
One Maag America – Together, as a team, we can accomplish more Dear Team MAAG Americas, In January we shipped over $12 Million in systems and parts. We are still working through a significant backlog, as many systems are behind originally committed dates to customers. We held Town Hall meetings and wrapped up the year, and as communicated, we did on balance have a positive year. It was not a perfect year, yet together we achieved many of our goals. Dover held a Q4/end of fiscal year investors call on the 31 st and stated overall the year ended on a positive note. Looking forward into 2023, there is a lot of noise and discussion about a potential recession. Fortunately, MAAG is active in very diversified market segments. While an overall reduction of economic activity would certainly affect us, we are not dependent on a specific market segment. The Plastics Industry and manufacturing in the USA remain competitive. The Covid pandemic has underscored how important it is to have a reliable supply chain that produces essential goods domestically. I will share some findings from a recent McKinsey study on how to keep USA manufacturing competitive. I do believe we are doing our part by continuing our investment in improved processes, new machinery and R&D. Cheers - Martin
Featured Product: MAAG Gala Hot Melt Adhesive (HMA) pelletizing systems are engineered to provide customers a cost- effective way to process and handle a wide variety of adhesive materials. Pellets are used to streamline downstream production processes. Usually, industrial robots apply the glue and ensure easy handling and transporting of otherwise challenging to manage materials. Hot melt is defined as any polymer-based glue that is applied in a molten state. HMA is composed of a polymer and additives, including a tackifying resin to create bond properties. Pressure sensitive adhesive (PSA) is a type of adhesive that bonds when pressure is applied. Examples of use of these adhesives range from book-binding, packaging, tapes and labels to HVAC duct- work, auto interior trim, and furniture assembly. In the past two years we sold over $10M worth of HMA systems. The front page features a complete HMA system.
Some experts from a 2021 study by McKinsey state why manufacturing in the USA is essential for our health, national security and a strong economy. Global supply chains got a big shock in 2020 and we are still suffering through some of these effects in 2023. In the United States, manufacturing accounts for $2.3 Trillion of GDP, employs 12 Million people. While it represents only 11% of total GDP it drives 20% of US capital investment, 60% of exports and 70% of business R&D. Manufactured goods are essential to health and food supplies. Without manufacturing there are no syringes, and without tractors there is not enough food harvested. Yet manufacturing is often underappreciated compared to other industries and professions. Unfortunately, over the past 3 decades global manufacturing has shifted as a huge number of low-cost factories in countries such as China came on-line. Below graphs show what we lost and how other countries won business. Fact is that we lost 5.8 Million manufacturing jobs between 1999 to 2009. Building a more competitive US manufacturing sector
There is re-thinking going on regarding where to build goods. Relative to Europe, US produces only 71% of its manufactured goods vs. 83% for the Europeans. Closing that gap would add $400 billion to US GDP. American workers are also competitive to their counterparts. The US has only slightly higher Unit labor costs compared to China. Unit labor costs is not your hourly rate – it is the total cost it takes to produce a given good. While your Chinese counterpart might have less of an hourly wage, we produce more output per worker. Supporting manufacturing has been a bipartisan issue, however, when it comes to driving change and supporting the industry the approach often differs. The study highlights several areas where companies and policymakers should put focus and resources.
Turning around a two-decade trend of decline is not an easy task. There is not one silver bullet that solves this multi facetted challenge of achieving productivity, economic growth, jobs, income growth for workers/ communities, innovation, competitiveness, and national resilience. The manufacturing sector can help to achieve such by retaining and expanding technology know-how and innovate to build competitive products. If we get this right, it can have a significant impact on job creation and GDP growth: The opportunity, the key issues and way forward
US manufacturing needs a major infusion of investment. While many US manufactures are profitable companies, private US Investors put their money elsewhere for higher returns. Traditional market investors are not delivering the full infusion of capital that is needed, especially to smaller suppliers. McKinsey estimates that $15-25 billion is needed annually over the next decade to upgrade our industries. US manufacturing needs to add and develop specialized talent – and confront the wage stagnation underlying its inability to fill job openings. The skills gap is real, industry needs to work together with community colleges to create a pipeline for higher-level skills. The manufacturing workforce is aging, but attracting a new generation when production wages are not competitive compared to other career choices. Boosting productivity across entire sectors requires embracing process improvements and bolstering technical know-how. Investing in new equipment and industry 4.0 technologies is a critical part of this effort. Continuous improvement using methods like Kaizen is a must and not an option. We are doing our part to make US manufacturing more competitive, yet it is also clear that this is an on-going effort, not a one-time push. Full study: www.mckinsey.com/building-a-more-competitive-us-manufacturing-sector
New Video
Matt Seaholm, President of Plastics Industry Association, in front of Congress during a recent hearing on Plastics and its impact on environment and our daily life (5 min opening statement to hearing)
Welcome January New Hires It was a wonderful January as we welcomed many new employees. When you see them, check in, see if they have any questions, ask them how they are doing and give them a warm Maag Americas Welcome!
Dale Bowland Machine Operator (Kent)
Keith Knott Service Technician Recycling (Kent)
Korey Trahan Sales Manager Recycling (Kent)
John Gillispie Assembly (Eagle Rock)
Bob Bolger Strategic Sourcing Manager (Eagle Rock)
Angel Cravello Spare Parts Sales (Eagle Rock)
Harold Defibaugh Welder (Eagle Rock)
Farewell We wish the following people who left in January the best of luck in their future endeavors: Kent: Anita Beck-Leifheit Eagle Rock: Lee Simpson, Bradie Elliott, and Isaac Palmer
Congrats to our winners! Tickets for February are BLUE Good luck to everyone!
January Raffle Winners
Kent: (the drawing will be 2/8) EGR: Thomas Lythgoe & Christian Newbury Remote/Charlotte: Ginger Sparks
February Anniversaries
Name
Yrs. Of Service Department
Location Eagle Rock Eagle Rock Eagle Rock Eagle Rock Eagle Rock Eagle Rock Charlotte Eagle Rock Eagle Rock
Chriss Anderson
36 31 30 29 28 26 21 18 17 15 15 15 12 11
Manuf. & Operations
Jeff Rose
Engineering Engineering
Melinda Kay Don Adams Luke Winand
I.T.
Sales & Marketing Manuf. & Operations Sales & Marketing Sales & Marketing Manuf. & Operations Sales & Marketing Sales & Marketing Manuf. & Operations Manuf. & Operations Sales & Marketing Sales & Marketing Manuf. & Operations Manuf. & Operations
Stephen Boblett
Randy Faile
George Benoit John Dudley Kathy Dawson Sopheap Thach Jim Christian Jeremy Zehnder
Kent
Charlotte Eagle Rock
Kent Kent Kent Kent
Dave Keel Chuck Bell
9 6 5 4 3 1 1
Charlie Miller Jimmy Cravello
Eagle Rock Eagle Rock Eagle Rock
Jack Olsson
Engineering
Bill Gunn
Sales & Marketing Manuf. & Operations Sales & Marketing
Bryce Laughlin Ashley Boguess
Kent
Eagle Rock
Safety Message
American Heart Month Safety First Document
February is American Heart Month, a time when all people can focus on their cardiovascular health . The Division for Heart Disease and Stroke Prevention is shining a light on hypertension (high blood pressure), a leading risk factor for heart disease and stroke.
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