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Quick ship! In addition to traditional industrial recruitment measures, many state and local governments are promoting innovation and advanced technologies to grow new, competitive industrial sectors and foster regional growth and employment. There is especially a perceived need to attract early stage financing for innovative start-ups. Innovation clusters comprise collaborative networks of multiple stakeholders—usually for a specific industry sector and in geographical proximity—including manufacturers, specialized supplier chains, government agencies, universities, research institutes, community colleges, and vocational institutions, and other nongovernmental and nonprofit organizations.

According to the National Academies of Science NAS , in , there were several hundred distinct cluster initiatives—that is, formally organized efforts to facilitate cluster growth—operated by U.

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Local benefits that clusters can deliver include transition from unemployment to high-skill employment; creation of new, higher-wage opportunities; growth of local businesses that are less susceptible to offshoring; and increased manufactured products for export. The maker movement began with hobbyists who make and fix things, but is increasingly seen as a potential source of product innovation and future manufacturing opportunities.


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  5. A growing number of cities have embraced the maker movement, viewing it as important for fostering innovation and interest in the revitalization of urban manufacturing. The Urban Manufacturing Alliance UMA , a coalition of almost members across cities, is a leading proponent of makerspaces to sustain and grow manufacturing in urban centers.

    In the mids, three leading economic development organizations launched initiatives to accelerate economic growth in Northeast Ohio based on building clusters of suppliers, customers, and resources in eight key industries. The region has long been home to a large polymer and chemicals cluster centered in Akron, Ohio. The cluster is comprised of seven manufacturing industries involved in the production of a variety of products including petrochemicals, fertilizer, paint, soap and rubber.

    It is also collaborating with Ohio State University, the University of Dayton, and eighty-five companies to operate the National Polymer Innovation Center, to develop critical technologies for flexible electronics products, which involves the printing of electronic devices on flexible materials, such as plastics, paper, fabrics, and foldable glass.

    The university has also joined an effort, the FlexMatters Accelerator Initiative, to establish a flexible electronics industry, formed in by NorTech, a nonprofit technology-based economic development organization, and Kent State University, helped as well by a grant from the Ohio Third Frontier. Industry collaboration the university, funded by grants, formed the basis of additional photovoltaic manufacturers. States and municipalities have at their disposal policies, strategies, tools, and resources that reside not only in government programs, but also in their stakeholder communities, to support and assist manufacturing revitalization and high-road economic recovery.

    The Prospects of a Manufacturing-led Recovery

    They can also leverage the resources of multiple federal programs to help them restructure and transition their industrial bases in response to economic shocks, such as trade impacts, policy shifts defense downsizing, environmental regulations , recessions, and natural disasters. ARC, which includes both federal and state officials, assists struggling communities in the Appalachian region. All these federal programs rely on close partnerships with local and state entities.

    Leadership at the local and state level determines the success of efforts to steer economic development. In particular, states and localities should pursue the following strategies. Many shutdowns can be averted with sufficient early warning, coupled with a well-organized and expedient business turnaround or buyout effort. A program should include early identification of firms at risk of layoffs, the use of feasibility studies to assess the needs and options for at-risk-firms, and the delivery of investment and financial restructuring, economic development and adjustment, and employment and training services to address the risk factors.

    Early warning and layoff aversion have a strong record of success in the retention of manufacturing businesses and saving jobs, with substantial public benefits. Reshoring is the practice of returning overseas manufacturing facilities and assets back to U. It also can refer to restoring the domestic sourcing of currently imported supply chain inputs for reshored original equipment manufacturers OEMs.

    Manufacturer decisions to reshore have been driven by a combination of macroeconomic factors rising overseas labor and transportation costs and internal business-related factors. To help manufacturers determine the cost-effectiveness of reshoring their production operations or their supplier chains, the Reshoring Initiative RI has developed an online Total Cost of Ownership TCO calculator to enable manufacturers to compare the total costs of outsourced parts or products.