Technology

Manufacturers Win with Cybersecurity

Today was a big win for manufacturers in the House of Representatives. In recent years, cybersecurity has become more and more of a focus for manufacturers who operate networks featuring comprehensive and collaborative networks between customers, vendors, suppliers and governments. As the threat of online attacks grows, manufacturers have implemented the most complete security possible to protect those networks – but current law doesn’t offer the full protection manufacturers need. But with today’s passage of the Cyber Intelligence Sharing and Protection Act (CISPA) of 2013 (H.R. 624) we’re a lot closer.

“Manufacturers take any intrusion seriously, but the problem is that we can’t get any information from the government about what those threats are,” said NAM Director of Technology and Domestic Economic Policy Brian Raymond. “CISPA fixes the problem by creating a stronger partnership among the Department of Homeland Security, the intelligence community and manufacturers, allowing them to collaborate when credible threats arise.”

Marlin Steel, led by President Drew Greenblatt, an NAM executive committee member, takes a strong stance against cyber crime, noting, “if greater information-sharing can help find and prosecute someone using the Internet to commit a crime, it is a line worth shifting.”

The House voted 288-127 to pass the bill – with significant and widespread bipartisan support. Support for CISPA is strong and growing. Which makes the President’s threat of a veto perplexing at best. This is a solution that delivers the necessary protections and information sharing without adding duplicative regulations that fail to improve security. CISPA will allow manufacturers to take an increasingly proactive, rather than a reactive, approach to threats.

As the NAM Technology Subcommittee Chair, Eric Fitzgerald Reed, said, “Cybersecurity will play a significant role in defining the future of the Internet and business in the 21st century, so it is natural that the manufacturing and high-tech communities strongly support the CISPA legislation.”

It’s time for the Senate and the President to take the baton and put into law the protections that manufacturers need to counter the growing cyber threats in an online world.

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President’s Budget Supports Manufacturers as Innovation Leaders

The NAM’s Growth Agenda lays out policies that will make manufacturers in the United States the world’s leading innovators. This can be accomplished partly through federal government support of Federal research agencies and encouraging strong collaborations between the public and private sector. These innovations and the resulting intellectual property coming out of the private and public sector also need to be protected. A robust Federal cybersecurity infrastructure therefore needs improvement. The budget released today by President Obama gives considerable attention to these issues important to manufacturers.

The President’s budget provides for $143B investment in Federal research and development spending across multiple agencies. Much of the research spending is geared specifically toward advances in manufacturing innovation and technology. Of the overall R&D spending, $2.9B is set aside for supporting advanced manufacturing efforts at the National Science Foundation (NSF), and the Departments of Defense, Energy, and Commerce. The Hollings Manufacturing Extension Partnership (MEP) program which is highly utilized by many small manufacturers also receives a $25M increase in the FY14 budget request.

Cybersecurity investment appears to be a priority for the Administration by just looking at the numbers. Almost across the board increases are seen in agencies such as the Departments of Defense and Homeland Security to support cybersecurity research and development inside the government and cyberworkforce training. It also supports the NAM-supported multi-agency Networking and Information Technology Research and Development (NITRD) Program.

Another focus of the President’s budget is the mandatory $1B in new spending for a new program called the National Network for Manufacturing Innovation (NNMI). This money will fund fifteen regional centers to develop and commercialize emerging technologies. The NAM is in support of this concept but still remains concerned about where the money is found to fund it.

These numbers by themselves are all good news for today’s manufacturers that must continue to out-innovate their competitors around the world. We are pleased by this commitment by the Federal government to take the necessary steps to put manufacturers on the front of the cutting edge of innovative developments.

The investments are real commitments to manufacturers and in support of the NAM Growth Agenda. But many other steps need to be made before new dollars can be spent and manufacturers can have the ability to participate in these projects. Manufacturers will continue to push all policymakers to give us a comprehensive innovation agenda which will include delivering on the entire NAM Growth Agenda, not just this one piece of it.

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New Force Against IP Theft Launched

Recently the National Alliance for Jobs and Innovation (NAJI) has launched a new line of defense in the battle to protect the intellectual property and information technology developed here in the U.S. The NAM is a leading member of this 100-plus member coalition developed to fight IP and IT theft around the world.

According to the NAJI, IP and IT innovation directly accounts for more than 27 million jobs in the U.S. Theft of IP and IT is hurting manufacturers in the U.S., costing billions to both large and small manufacturers. Innovation is the lifeblood of manufacturing. The advances in technology and production that allow manufacturers in the U.S. to succeed both on a domestic and global scale are built on a foundation of behind the scenes work and creativity.

A manufacturing.net article features NAM Executive Committee member and President of Marlin Steel, Drew Greenblatt, who puts a human face on the rampant IP and IT theft that is hurting his business and countless others just like it.

“Greenblatt has been working on building up Marlin Steel since 1998, when he bought the company and moved its operations to Baltimore, Maryland. He currently employs 32, including a handful of degree-holding mechanical engineers, and he wants to expand the business to create more well-paying American jobs. But he’s working in an environment where foreign competitors ‘literally copy-and-paste [the Marlin Steel] website,’ including both his name and the company’s name, and then blatantly copy any new designs that his mechanical engineers come up with.

Greenblatt says, ‘We have these amazing designs that my engineers are coming up with. They’re innovative and different. We’re whopping China, we’re hiring people, we’re growing, we’re reinvesting back into the plant — these are all good things. This is what makes America great. I pay my guys really well, and we want this train to continue. It makes it hard if the American government is not protecting me and my company’s IP. It hurts the stellar abilities of my engineers.’”

The NAM is a leader in the fight against IP theft – and our resolve to protect manufacturer’s sweat equity is unyielding. We’re looking forward to working with the NAJI to ensure that manufacturer’s innovation is protected the world over.

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Lots of Talk, But Manufacturers Want Action on Cybersecurity

It’s hard to avoid the issue of cybersecurity these days. Everywhere you turn there seems to be another story about hacking, theft of intellectual property, and other activity ranging from disruptive to sinister. As a result, the number of proposed solutions now seem to equal the number of press articles. At the NAM we think it is time to stop talking and take action.

The NAM has lent its support once again to a bill recently introduced in the House of Representatives that would allow companies to share cyberthreat information with the government, and vice versa, as well as with other companies. The Cyber Intelligence Sharing and Protection Act (H.R. 624) is a bipartisan bill championed by the leaders of the House Permanent Select Committee on Intelligence, Chairman Mike Rogers (R-MI) and Ranking Member Dutch Ruppersberger (D-MD). The NAM has repeatedly said to the Hill and the White House that if manufacturers are allowed to share information – and have liability protection when they do – the cybersecurity of our critical infrastructure can be significantly enhanced.

The White House has also weighed in on this issue. President Obama raised the importance of cybersecurity and protecting our nation’s intellectual property in his State of the Union address. The day after that speech he issued an Executive Order on cybersecurity. While we are encouraged that the issue of cybersecurity is a priority for this Administration the Executive Order lacks the incentives and liability protection for manufacturers that legislation like The Cyber Intelligence Sharing and Protection Act would provide.

The economic and national security of our nation is the NAM’s highest priority. Manufacturers need timely, reliable, and actionable cyber information so their businesses can address the threats quickly and move on to what they do best and what matters most – making America strong. Let’s stop talking about cybersecurity and pass a bipartisan bill that will help manufacturers.

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NAM Co-Hosts Hill Briefing on Tech Innovation and Manufacturing Growth.

If Congressional staff did not know before this morning how high-tech manufacturing is, they do now after attending a briefing with some of the leading American innovators. The NAM joined forces with the BSA | The Software Alliance on Thursday, February 21, to demonstrate to members of Congress, their staff and the media the important role software solutions have in spurring manufacturing technology advances and creating economic opportunity.

Executives from NAM members The Procter & Gamble Company and Microsoft Corporation were among the companies that participated on a panel discussion on why software and other intellectual property must be protected to help drive innovation. Manufacturers of all sizes leverage information technology to design, produce and deliver their products.

Educating Congress and the public on the strong role that manufacturers play in America’s global technology leadership position is a priority for the NAM. We encourage you to share your innovative story with the NAM and help us drive that message.

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Unfair Competitors Cannot Skirt the Rules in California

When California’s Attorney General Kamala D. Harris filed suit last week against two manufacturers that were using pirated software in their operations it signaled to garment makers around the world that if you don’t play by the rules, you will be held accountable.

The move by the AG supports the NAM’s current efforts to stop manufacturers from unfairly competing against companies in the U.S. If a company uses pirated or stolen software in their operations it reduces their overhead unfairly allowing them to underbid legitimate operations and, in some cases, can jeopardize the safety of their customers. This is not good for American consumers or the manufacturing industry fighting aggressively to gain global market share and create jobs.

We last told you about this issue in a blog post in October when the Commonwealth of Massachusetts filed suit against a Thai seafood company using pirated software giving them an unfair advantage over the Bay State’s fishing companies. While these industries are important, this is not just limited to cargo pants and crab legs. Pirated software can be used in the creation of semiconductors, medications, and auto parts. Like apparel manufacturers and the food industry, these too are job creators in America that play by the rules. Companies that compete unfairly against them should be stopped.

The NAM has joined the National Alliance for Jobs and Innovation, a coalition of manufacturers from around the country working together to address this issue. We encourage you to check out the website and consider participating in this important effort.

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Manufacturers Partnering to Drive Innovation in Vegas

We all know the good ol’ days of stopping at a gas station in a strange town asking for directions are behind us. So are the days of searching through your glove box for change to make a phone call. All of these tasks can be done with a screen on the dashboard or with the help of a virtual co-pilot just a voice-command away. Today’s vehicles are even more technologically advanced than ever, inspiring the term “cloud car” – showing how connected we can remain even behind the wheel.

The car is the ultimate mobile technology and manufacturers in the U.S. like Bosch, Chrysler, Ford, Garmin International, General Motors, Hyundai, Subaru, and Toyota are taking significant steps to improve safety, convenience, navigation and customer service through innovation. Americans spend a lot of time in their cars, from commuting to work, driving our kids around to the countless other things in life that keep us on the go. The NAM saw first-hand today at the 2013 CES what technology is doing for the future of vehicles.

Garmin International unveiled their “next-generation infotainment system” that is turning the dashboard into a digital cockpit that gets drivers where they need to go by providing critical communications, vehicle information while keeping their eyes on the road.

General Motors has developed a mobile system that allows drivers to add apps/features to vehicles after purchase. With technology constantly shifting and improving, this keeps car owners from being left out of the latest and greatest mobile options.

Subaru is using the cloud for an internally developed streamlined communications for its direct parts suppliers, increasing the efficiency of production, reducing errors, and getting vehicles to consumers more quickly.

Toyota revealed “self-driving cars,” a stunning breakthrough showcasing vehicles equipped with devices that allow it to detect and automatically respond to its surroundings. It’s an impressive step forward in technologies that help drivers avoid accidents and improve automobile safety.

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What You Can’t See at CES is what Really Drives Innovation

The Consumer Electronics Show (CES) is the largest convention of the year in Las Vegas. The organizers estimate that close to 160,000 people will visit the show this week. Attendees come from all over the world to see the latest smartphones, in-vehicle technology, gaming innovations, and home appliances to name just a few. Every square inch of the convention center is packed with new technology – even the parking lots are tented over. But it is what you don’t see here that is really the secret to all these technology advances: the wireless telecommunications infrastructure that differentiates many of these innovations.

Wireless technology is what allows the navigation systems being showcased in many of the vehicles at CES to work. It is how smartphones can show you the latest movies in the palm of your hand. It is what powers the connected homes that give all of us the ability to reduce our energy consumption.  Wireless technology is not only what we want for our electronic s, it is frankly what we need.

This need for wireless technology and services is also putting stress on the airwaves – known as spectrum – on which the information travels. Spectrum is a finite resource and users of it are working hard to develop more innovative and efficient ways to use it. But the users can only do so much. The government plays a major role. The agency that regulates the use of spectrum is the Federal Communications Commission (FCC) and it has been directed by Congress to repurpose and auction unused or underutilized spectrum. How the FCC handles these auctions could have a major impact on all manufacturers.

The NAM has repeatedly communicated to the FCC the importance of wireless technology to manufacturers. Our member companies use it to communicate with their employees, manage supply chains, and connect with their customers. We have therefore stressed to the FCC that it cannot pick winners and losers when setting up the rules of the road for these auctions. The process should be open to all and no conditions should be placed on the participants. This will ensure the market drives the next wireless innovations and the regulatory process does not unnecessarily slow it down.

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Patient Centered Health Care: Modernizing Health Care Through Technology

Controlling healthcare costs is a serious concern for manufacturers and consistently ranks as one of the top cost drivers for companies. Healthcare information technology (HIT) provides an opportunity to streamline processes, put more power in the hands of consumers and lower costs.  This week, at the Consumer Electronics Show, the intersection between healthcare delivery, consumers and IT is highlighted.  Mobile applications that allow consumers to manage their health and healthcare resources 24 hours a day, such as mobile applications and telehealth capabilities, allow for management of chronic illnesses. These technologies bridge critical gaps in access for some and provide additional flexibility for others. Employers and employees can manage healthcare costs by reducing complications associated with chronic disease, such as diabetes.

In addition, HIT and other technologies can facilitate more informed decisions, greater use of preventative services, assist care coordination, reduce fraud and abuse, improve delivery of services, and generate better overall health outcomes. For example, in-home assessments performed on a tablet, can improve the quality of care by improving care management services and reducing hospital readmissions while also identifying potential issues for patients to discuss with their primary care doctor. These are important issues to health care industry and NAM member United Health Group is one of the companies striving to make the system better.

Dr. Reed Tuckson, Executive Vice President and Chief of Medical Affairs for the United Health Group, said today that the health care technologies they are offering allow patients to utilize information to achieve the goals of their health care plans. Specifically he says that, “Health care cost calculators like those offered by United Health Care Group technologies allows consumers to know the exact price of all their clinical engagement – how much it costs for a procedure, hospital, by clinician, and more importantly, know the quality of the care delivery system. That information made available online allows people to truly participate in and make better medical care choices. We need the NAM to continue to be a leadership force for change that will improve health care for employers and consumers.”

The NAM is committed to continuing that leadership in order to ensure that the 97 percent of manufacturers that provide health benefits remain on the cutting edge. Technological innovation is driving modern manufacturing and can also drive modern healthcare, which provides for better outcomes and reduced costs. The future of healthcare is here and many manufacturers are leading the way by adopting these technologies.

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Manufacturers Take the Lead In STEM Education

The U.S. the leading producer of cutting-edge products such as those on display at the Consumer Electronics Show.  Whether it’s in IT, biotech, aerospace, medical devices or heavy machinery, US companies will be the ones to constantly and consistently create new and better things. This future promises to be bright, but only if we have the workforce capable of pushing that leading-edge. And right now, that doesn’t look like a very good bet.  The lack of a skilled workforce is a constant threat to manufacturing growth. In fact in a recent survey 82% of manufacturers reported a moderate-to-serious shortage in skilled production labor.  Worker shortages abound not only among machinists and welders but also in occupations requiring expertise in the fields of science, technology, engineering and math (STEM), where the unemployment rate today lies well below 4%.

The US needs to refocus our workforce training resources and reform our immigration system to continue to grow and innovate. Immigration reform is a serious issue for Manufacturers not only in the High-tech arena but across manufacturing sectors. Without a skilled workforce – from the PhDs to production labor, the nation’s economy will suffer and jobs will be moved overseas. Access to the right individual with the right skills at the right time will ensure that the US remains a global innovation leader.

The Bosch Group and Global Foundries are two companies taking this critical issue head on. The Bosch Community Fund launched last year to improve STEM education and will award up to $3 million in grants annually, providing additional support for the company’s charitable and community efforts in the U.S., with a focus on science, technology and environmental initiatives.

Global Foundries has committed to growing their talent through partnerships with community colleges and universities. At their Fab 8 facility in Malta, New York their workforce development efforts have begun to bear fruit with hundreds of hires made through ongoing collaboration with local partners including Hudson Valley County Community College, Schenectady County Community College, RPI, College of Nanoscale and Engineering at U Albany and Saratoga Board of Supervisors.

The Consumer Electronics Show puts on the display the best of American innovation and a skilled workforce invents, plans, produces and markets that innovation. We should focus American resources towards ensuring the CES of tomorrow will be even stronger than this year.

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