Objectives

• To present a cross-section of public and private sector perspectives on matters of supply chain competitiveness and supplier development, with a focus on cities;
• To explore current best practices/models for supplier diversification and skills training, as they implicate urban economic and community development;
• To engage state and federal leadership regarding their roles in supporting urban manufacturing, supply chain competitiveness, and urban industrial workforce; and
• To discuss and advance potential collaborations across sectors and between agencies, e.g. supplier-centered pilot projects in cities, supply-chain mapping projects, etc.

Background

Recent decades have seen an erosion and reconfiguration of America's manufacturing base. In the wake of recent recessionary shocks and fiscal turmoil, and years of trade imbalances and disinvestment, federal, state and city governments are rallying to face numerous obstacles toward improving industrial infrastructure, educating the U.S. workforce, expanding financing options for small suppliers, and creating opportunities for mobility among American workers and businesses.

Most Americans and their elected leaders—from federal officials to city mayors—recognize that the nation has been treading an irresponsible and unsustainable path, and that forward-thinking policy vision and action are urgently needed to actualize local and national economic development goals. Most U.S. businesses agree with this. They also recognize that the U.S. manufacturing sector must play a central role in spurring job creation; responding to demands for U.S.-sourced, high-value goods; promoting energy efficiency; and safeguarding American economic competitiveness in the global marketplace.

However, the value and potential of cities, diverse business enterprises, and value-added, performance-driven supply chains is often overlooked in this context. This is despite the fact that America’s largest 100 metropolitan areas continue to generate 75 percent of the nation’s GDP; manufacturing jobs continue to offer pathways to skill development and middle-class wages for thousands of Americans, including many minorities; small- and medium-sized firms continue to supply Americans with most of their new jobs, including in cities; and diverse suppliers continue to help large U.S. companies respond quickly and adeptly to shifts in market pressures and preferences.

An April 2011 report released by Brookings’ Metropolitan Policy Program revealed that, although federal agencies have taken many positive steps in the area of manufacturing, the Obama administration has not yet articulated a clear and cohesive policy vision for the sector.[1] It is imperative that private companies (from large OEMs to small suppliers), policy makers, and community leaders around the country continue to explore the many challenges facing urban manufacturing today. It is equally important that we collectively understand and support existing and emerging opportunities and models for sustainable, inclusive economic renewal and growth.

Supplier diversity initiatives are value-added strategies that encourage companies to source from diverse businesses that have demonstrated performance managed and supply chain aligned business processes. Since the civil rights movement, corporate diversification initiatives have been valuable tools toward business development and local and regional economic development; diverse businesses often struggle to secure access to the informational, technical, management, and financial resources required to create jobs and competitively integrate into lucrative parts of supply chains. Today, supplier diversity initiatives are increasingly being driven by performance-based requirements for demonstrating value to the whole supply chain. These initiatives also serve corporate bottom lines, by promoting enhanced efficiency and greater supply-chain competitiveness. There is growing momentum behind valued-added supplier-diversity efforts among U.S. manufacturers, including major companies such as Johnson & Johnson, Navistar, McCormick &Company, Cummins, Boeing, Office Depot, Tyco, McCain Foods, Cardinal Health, Cargill, Procter & Gamble, Kraft foods (2012), and others.