Back in September 2009, President Obama released the $130 billion Obama Innovation Strategy with goals of stimulating initiatives, including innovations, in order to achieve sustainable growth and quality jobs. The three-part plan includes investing in the “building blocks of America” by research and education, along with promoting exports, improving innovation at all levels, and starting a “green energy revolution” to lessen our dependence on fossil-fuel based energy resources.

The plan can't be implemented soon enough as U.S. innovation lags behind other countries, such as China and India. We need to play catch up, notes Fred Wentzel of the National Council for Advanced Manufacturing. The role the government plays in boosting innovation is important because federal money can stimulate innovation. But to succeed a combination of doing what you have to do innovatively, while at the same time not only exporting but also taking care of the internal market is necessary.

Innovation, by definition is “the introduction of something new,”which  in the business world can mean many different things. Some of the current innovations include methods such as implementing advanced manufacturing processes and green applications and designs. “While the ‘big' or Fortune 500 companies are doing their part to stay ahead of China by using resources to innovate, it is the little guys that make up the supply chain that need to innovate,” Wentzel says.

First Steps

The most important step to take in the direction of innovation is for companies to ask themselves, “What are my customers going to want in five years? Will they even be the same customers?”

“Not that many small companies ask that question or if they do they don't have the resources to satisfactorily deal with it,” Wentzel says. “But to survive, you must innovate. If you don't innovate, you die.” And innovation requires a talented and skilled workforce, prepared to provide solutions to life's little challenges, innovating along the way.

In order for an innovation to occur on a large scale, it must start small and that is why it is important for more time and resources to be spent by small and medium companies on finding ways to innovate.

One major way to help this happen is to employ people at your company that have the future in mind. According to a study done by Anthony Carnavale at Georgetown University, finding people with the skills necessary for the job market will continue to be increasingly difficult. The skills gap problem is especially true in advanced manufacturing, an important part of the innovation process.

In regard to filling jobs and finding talent that thinks innovatively, Wentzel advises companies to form  relationships with the local school systems. “Plant seeds in schools about what skills your company needs so they [students] start thinking about what they are going to do when they get out of school,” Wentzel says.

Wentzel points out when looking for people to hire it is imperative to recognize the people who want to learn — they are the people who are trainable. The future (and incumbent) workforce needs to truly understand that it takes training and skills to succeed in the advanced manufacturing job market. “Intensify communication, [so students] hear the magic words: In order to get a job, I must have very good soft skills and basic knowledge,” Wentzel says.

Beyond preparing the talent base to perform jobs in advanced manufacturing settings, for example, there exists what may be the most important part of an innovation strategy: sustainability. How can companies reduce how much energy they use? How can they shrink their carbon footprints? How can they improve processes to use less energy and contain material costs? If a company's processes can be more efficient and lead to increase profits, it not only directly benefits the company itself, but it will also help the country catch up with our global competition, Wentzel notes.  

For more information or to read NACFAM's Sustainability Model, visit www.nacfam.org.