BUSINESS HORIZON QUARTERLY WINTER 2013
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A note from the publisher Breaking Down “Impossible” Barriers Everything seems impossible, until it is possible. Humans are not born to fly nor walk the ocean floor. Yet, the steady march of knowledge and technology continually yields breakthrough ideas and solutions that allow us to do what would seem to be the impossible and to overcome obstacles and barriers that frustrated our predecessors and peers. In the early 20th century, polio epidemics rolled through the United States, but a series of scientific breakthroughs led to a vaccine, which helped eradicate the disease from the Western Hemisphere. The horse was long the standard for human transportation, but automotive technology and Henry Ford’s assembly line put a car in every garage and sent the horses out to pasture. Computers were once the sole province of researchers and the government, but a tidal wave of technological advances has put vastly more computing power in a smart phone than what was aboard Apollo 11 when it landed on the moon. These and many other breakthroughs are the product of ingenuity and initiative. As many times as people have insisted, “It cannot be done,” there have been determined innovators and thinkers who have countered, “Yes, it can.” Today, the United States faces a range of pressing challenges. There is a wide skills gap that leaves businesses searching for talent and low-skilled workers looking for jobs. Gender equality in the workplace has improved, but executive level barriers remain. A broken immigration system keeps eager entrepreneurs away from American shores; too few students focus on the math and science skills that are critical to innovation; and the American tradition of championing success appears to be wavering during divisive times. The list goes on. The late Steve Jobs, CEO of Apple Inc., once noted that “Innovation distinguishes between a leader and a follower.” Despite our challenges, America is still a leader and our culture of entrepreneurship and innovation still gives us the capacity to overcome what appear to be immovable obstacles. This edition of BHQ looks at the kinds of breakthrough solutions the United States needs to break down those impossible barriers.
PUBLISHER MARGARET SPELLINGS EDITOR-IN-CHIEF RICH COOPER ASSOCIATE EDITOR MICHAEL HENDRIX CONTRIBUTING ROLES ANDREA BITELY SENIOR MANAGER, DIGITAL MEDIA EDUARDO ARABU RESEARCHER A special thanks to the U.S. Chamber of Commerce Foundation and Chamber teams that made this publication possible through their creative contributions and hard work. Design & layout by Adfero Group
Sincerely,
Margaret Spellings
Copyright © 2013 U.S. CHAMBER OF COMMERCE FOUNDATION
TABLE OF CONTENTS
WINTER 2013 // BUsiness Horizon Quarterly 2 | Letter from the Publisher
BY M A RG A RE T S P E L L I N G S
4 | BREAKTHROUGHs: The Forum for Innovation provides research and insight into the emerging issues impacting the free enterprise system and the business community. Through its Scholars & Fellows program, the Business Horizon Quarterly, the Business Horizon Series, and other content platforms and programmatic offerings, the Forum seeks to inform business and government leaders as well as proactively drive public debate in a future-leaning manner.
4 | FUELING OPPORTUNITIES FOR RURAL AMERICA
BY
TO M V I L S A C K , S EC R E TA RY, U S D A
8 | THE SLOW CLIMB TO THE TOP: WOMEN IN BUSINESS BY
D AV I D C H AV E R N , E X EC U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R , U. S . C H A M B E R O F CO M M E R C E
12 | STRATEGIES FOR MANUFACTURING’S SKILLED WORKER GAP
B Y T H O M A S A . H E M P H I L L , WA H E E D A L I L L E V I K , A N D M A R K . J . P E R RY
20 | REGULATIONS – MORE IS NOT MERRIER B Y N A M D. P H A M , P H . D.
28 | ENTREPRENEURSHIP SAVES AFRICA BY J A M E S S L UTZ
34 | THE APP-IFICATION OF MEDICINE
B Y B R E T S WA N S O N
26 | Infographic: Robots 38 | Executive Profile: Gwenne A. Henricks 40 | Scholars and fellows Speak! 42 | What you should know 72 | FINAL WORD
BY RI C H C O O P E R
The views expressed herein are those of the author and do not necessarily state or reflect those of the Forum for Innovation, the U.S. Chamber of Commerce, or its affiliates. 1615 H St. NW Washington, DC 20062
FEATURE BREAKTHROUGHS break·through noun 1. An act of overcoming or penetrating an obstacle or restriction. 2. A major achievement or success that permits further progress, as in technology. 3. A military offensive that penetrates an enemy’s lines of defense.
Based on the Random House Dictionary, © Random House, Inc. 2013.
BREAKTHROUGHS
BUsiness Horizon Quarterly
Achieving New Understanding and Fueling Unlimited Opportunity for
BY T O M VIL S ACK, SECRETARY, U. S. DE PAR T MENT OF AG RICULT URE
RURAL AMERICA
T
echnological breakthroughs have always been
bushels per acre. Yet technology and research into new
critical to the economic success of rural areas.
crop variants helped production skyrocket over the last
Today, this innovation holds promise for the
generation. From 2007 to 2011, America’s corn growers
entire American economy. Our farmers and ranchers have consistently found through innovation new ways to grow more with less. American researchers and agronomists are responsible for some of the most amazing and groundbreaking discoveries
were producing more than 150 bushels per acre, on average. And in 2012, even in the face of an historic drought, they were able to produce more than 122 bushels of corn per acre. Rural America bears primary responsibility for
of the 20th century. And since the time of President
conservation. Some don’t know it, but 88% of water falls
Lincoln, we as a nation have found it important to support
on private land, ultimately supplying the watersheds that
such innovation at the federal level.
provide drinking water to our cities. Efforts in the years
We are uniquely poised today to continue our traditions of innovation, partnership, and investment. To achieve this, we must understand the evolving importance of rural areas to our nation. As a part of that discussion we must recognize the willingness of Americans to innovate
following the Dust Bowl revolutionized America’s soil conservation efforts—and in the decades since, farmers and researchers have greatly expanded our knowledge for how best to care for the land. Today, rural Americans have undertaken targeted efforts
and adapt to changing circumstances. We must appreciate
to implement specific conservation practices that can yield
our potential as a society to further invest in new markets,
three to five times the benefits of old, general approaches.
and always be looking for new partnerships that translate
Ultimately, they further reduce problematic runoff nutrients
innovation into business success.
making it to rivers and streams by as much as 45%.
A Productive Rural America and a History of Innovation Rural America provides a great deal to all of us—an abundant food supply, clean water, renewable energy, outdoor recreation, and much more. Almost all of our food supply is grown in rural parts of the country, which is why the United States imports less than 20% of the food it consumes annually. Much of our food is then processed and packaged in our cities, creating jobs for those in urban areas. It wasn’t always this way. For example, corn production
Rural America also provides a great deal of America’s energy resources. In 2010, for the first time in more than a decade, America imported less than half of the oil it consumed. This is both because we have expanded our domestic production of conventional fuels—which come almost exclusively from rural areas—and because we have invested in greater efforts to generate renewable energy. Wind power, for example, is expanding dramatically and accounted for about a third of new electric capacity in the United States in 2011. Further, nearly 70% of all wind generating equipment installed at U.S. wind farms in 2011 came from domestic manufacturers, doubling from 35% in 2005.
per acre remained static through the 1940s at about 35
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And while conventional biofuels continue to support nearly half a million jobs while bringing down the price of gas, development of advanced renewable fuels holds tremendous promise. Biodiesel production, for example, reached more than one billion gallons of production in 2011, supporting nearly 40,000 jobs across rural America. We have also found tremendous new uses for agricultural products that hold promise to revolutionize manufacturing. More and more companies today are making products from renewable sources grown locally and regionally. These goods include building materials, industrial cleaners and paints, and plastics that can be used to make everything from car parts to soda bottles. They are helping reduce our dependence on foreign oil, while holding the promise to create more sustainable jobs.
New Markets and New Understanding
South Africa, potatoes to Japan, logs to China, organic produce to the European Union, and more. Further, through our research efforts, USDA scientists continue to develop groundbreaking methods for use by producers while partnering with colleges and universities across America to conduct similar research. Second, we have developed stronger local and regional agricultural food systems. USDA’s efforts have increased the number of farmers markets to 7,800 nationwide, a 67% increase over 2008. This also includes creation of regional food hubs—more than 200 of which exist today—to help smaller producers reach larger markets. Third, USDA is helping to create markets for advanced biofuels, from the farm field to the end user. We have invested in the next generation of biofuels, establishing a program to help growers and landowners farm 60,000 acres of plants that will ultimately be converted into advanced renewable energy. To ensure those feedstocks are put to
In all of these areas, Americans have achieved great
use, USDA has invested in efforts to create or retrofit
things. As we look ahead to the future of rural America, I
nine new advanced refineries nationwide, along with six
believe we will need to create new markets to reap the full
regional research centers across America to develop energy
economic benefit of this innovation. Creating these new
technology that’s appropriate to every region. And we have
markets is a priority at the U.S. Department of Agriculture
worked with agencies across the government to develop a
(USDA), and we are doing so today in four key areas:
customer base for the resulting products. For example, the
production agriculture, local and regional food systems,
U.S. Navy has taken steps to create a “Great Green Fleet”
natural resource development, and the bio-based economy.
of ships and aircraft that run on the next generation of
First, American farmers continue to grow more food and increase their capacity to feed the world—and USDA
advanced biofuels. We are also helping create markets for bio-based
is creating new opportunities to sell U.S. products. By
products. USDA has created the “USDA Biobased
prioritizing exports, USDA has expanded markets abroad
Product” label that now appears on more than 25,000
for U.S. commodities, helping the Obama Administration
products that are manufactured by more than 3,000
secure new trade agreements with Panama, Colombia, and
companies. Meanwhile, the Obama Administration has
South Korea. USDA has removed numerous other barriers
prioritized such products for purchase by the Federal
to U.S. trade. In the past year alone, we have removed
government, giving preferred status to more than 9,000
restrictions to help farmers provide more U.S. apples to
bio-based products across more than 75 product categories.
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RURAL AMERICA
Fourth, we are focused on creating markets in the area of conservation and natural resources. USDA has supported efforts to develop environmental markets for water quality, carbon sequestration, and other natural services. These markets hold potential for farmers, ranchers, and forest landowners to receive new revenue streams, while delivering cost effective results for businesses to address environmental requirements. USDA scientists are also conducting research on the use of wood, helping companies meet green building design standards and create cost-effective products. U.S. Forest Service research into wood-based nanotechnology is leading the way to the development of plant-based construction
advanced renewable energy to wood nanotechnology as well as innovative new local and regional food marketing. Innovative research and development are going on across the country today, from our smallest towns to our biggest cities. Our investments at USDA are aimed at building partnerships and furthering innovation. We have tremendous partners across the nation, from the farm field to the boardroom. Together, I know that we can grow prosperity in rural America, and grow the bottom line for American business. n Tom Vilsack serves as the Nation’s 30th Secretary of Agriculture. As leader of the U.S. Department of Agriculture (USDA), Vilsack is working hard to
materials, body armor, and more. Additionally, the Forest
strengthen the American agricultural economy,
Service has carried out more than 150 projects since 2009
build vibrant rural communities, and secure a
to convert woody biomass and other forest products to
stronger future for the American middle class.
energy. This is just one more avenue through which we can help create new markets for forest products, along with new opportunity for business.
Prior to his appointment, Vilsack served two terms as the Governor of Iowa, in the Iowa State Senate, and as the mayor of Mt. Pleasant, Iowa. A native of Pittsburgh, Pennsylvania, Vilsack was born into an orphanage and adopted in 1951. After graduating Hamilton College and Albany Law School, he moved to Mt. Pleasant - his wife Christie’s
Unlimited Opportunity
hometown - where he practiced law.
Ultimately, I see an opportunity for our nation to reap tremendous economic benefits from the innovation taking place across America’s small towns and rural areas. The same innovation that helped farmers increase crop production, produce renewable energy, improve conservation practices, and revolutionize manufacturing can continue in the coming decades.
At the Business Horizon Series in December 2012, Secretary Vilsack highlighted USDA’s work to create new markets, foster new understanding, and further opportunity in rural America. You can learn more about these efforts at www.usda.gov/opportunity. For more on this topic, go to forum.uschamber.com/agriculture.
The key lies in developing even more partnerships that draw on our unique strengths as Americans. Government, academic, and private sector innovators can partner to develop groundbreaking methods that our farmers will be eager to incorporate. Likewise, the growing prosperity of agriculture holds numerous benefits for business—from
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BUsiness Horizon Quarterly
Why Women Need Another Breakthrough in Business
BY DAVID CHAVERN
8 | B U S I N E S S H O R I Z O N S Q U A R T E R L Y // F A L L 2 0 1 2
A SLOW CLIMB A Banner Year Belies an Underlying Trend 2012 seemed like a pretty significant year for women
and they are surging into traditionally male-dominated fields like medicine, law, and, yes, business. But despite the fact that women are working harder than ever and
across American society. In November, Americans elected a
achieving more, the upward path to the highest ranks of
spate of new women to Congress—today, we have a record
leadership remains narrow.
20 women in the Senate and 82 in the House. A new survey by Catalyst, a leading In the business world, we saw several talented women soar to top posts in some of America’s leading corporations. After serving four years as Facebook’s chief operating officer (CEO), Sheryl Sandberg was the first woman named to the social networking giant’s board of directors. Marissa Mayer was named president
nonprofit dedicated to expanding
Some 40 years after the feminist movement, women have hit a plateau when it comes to the power seats, particularly in the C-suite or on corporate boards.
opportunities for women in business, reveals the stagnation: among Fortune 500 Companies, the number of women holding executive officer positions was 14.3%—the third consecutive year of no growth. Women’s share of board seats held steady at 16.6% for the seventh year
and CEO of Yahoo!, making
in a row. The survey also found
her the youngest chief executive of
no growth among women of color
a Fortune 500 company. Ginni Rometty
serving on corporate boards, remaining
of IBM, Marillyn Hewson of Lockheed Martin,
at an unacceptably low rate of 3.3%.
and Phebe Novakovic of General Dynamics have each The numbers don’t get much better when you look
recently become Fortune 500 CEOs. And numerous others took the helm of Fortune 1000 companies or were
at the percentage of women in executive posts at mid-
named CEO or chief financial officer.
cap companies—those with $1 billion to $7 billion in market capitalization. A study from the U.S. Chamber of
Yet, what seems like a banner year belies the
Commerce, in partnership with Georgetown University’s
underlying trend. Some 40 years after the feminist
McDonough School of Business, found that on average,
movement, women have hit a plateau when it comes
barely 6% of executive positions at the mid-size business
to the power seats, particularly in the C-suite or on
level are held by women.
corporate boards. Anne Doyle, an author and businesswoman who This stasis is not for lack of effort, education, or accomplishment. Since the cultural shift of the 1970s,
broke barriers in the journalism and automotive industries, put it this way in her book, Powering Up:
women’s professional options are wide open. Women are overtaking men in education, earning 57% of bachelor’s
The path we’ve been on for nearly four decades is
degrees, 60% of master’s degrees, and 52% of doctorates.
smoothly paved, brightly lit, and getting more
Women make up nearly 50% of the U.S. labor force,
crowded every year. The only downside is this: it’s // A S L O W C L I M B T O T H E T O P | 9
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BUsiness Horizon Quarterly
a bit like collectively treading water. We’re working
all” was never the promise and that it’s an unreasonable
very hard, but too few of us are going anywhere we
standard for women to aspire to anyway. Other critics
haven’t already been.
charged that Slaughter failed to account for the many
There’s no question that women possess the talent, energy, experience, and drive to rise to the highest posts of leadership. So why isn’t it happening to a greater extent?
women who consciously choose not to have children, thus having greater flexibility to pursue demanding careers. If nothing else, the article and the debate it inspired proved this: we are having many of the same
Why? There’s No Simple Answer, No Magic Bullet
conversations today that we were having a generation ago. Striking work-life balance has always been viewed
It’s hard to pinpoint the reason for the slow pace of women’s advancement.
as the “easy” solution to a fulfilling career. The magic bullet. But we’re finding now that maybe it was a little too easy. Perhaps our view of the challenges and pursuit of
The public and policy debates over women’s roles and
solutions have been overly simplistic.
opportunities in the workforce often center on worklife balance. A new spotlight was cast on the issue last summer thanks to a widely-read article in The Atlantic by Ann-Marie Slaughter, provocatively titled, “Why Women Still Can’t Have it All.”
We Need a Breakthrough … in Our Thinking What we need is a breakthrough in our understanding of the barriers standing between women— all women—and achievement.
Slaughter, who had served as a top aide to Secretary of State Hillary Clinton, concluded that for a woman
To devote the fresh energy and thinking this critical
to reach great heights in her career while successfully
issue demands, the U.S. Chamber established the Center
juggling the demands of a family, she would have to be
for Women in Business (CWB) last year. Through CWB,
“superhuman, rich, or self-employed.” In other words,
the Chamber works to create opportunities for women
according to Slaughter, both a dream job and a well-
to advance in the business world and find professional
functioning family is not in the cards for most American
fulfillment. Our goal is to see more women rise to
women today—not simultaneously anyway.
positions of executive leadership in companies of all sizes and to serve on corporate boards in greater numbers.
What was also essential in Slaughter’s case was the
Central to CWB’s efforts are education and mentorship,
strong supporting role of her husband. He had the job
and the center is building a growing organization
flexibility to take on more of the domestic workload at
of women leaders and entrepreneurs to encourage
the peak of her career. This makes the important but
networking and spur professional growth.
often underemphasized point that work-life balance is a challenge for men too.
CWB is also committed to driving the debate forward through innovative thinking and investigation.
Controversy erupted over the article, with leaders in the feminist movement shooting back that “having it
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The center will soon release Advancing Women to the Top, groundbreaking research that examines best
A SLOW CLIMB
practices of Fortune 1000 companies with a strong track
traditional business settings, women are striking out on
record of promoting women at the board, C-suite, and
their own. Women-owned companies—the vast majority
management levels. The report will present the state of
of which are small businesses—make up 29% of all
women in the workforce, reveal barriers to progress, and
U.S. enterprises. There are 8.3 million women-owned
outline strategies and steps companies can take to advance
businesses in the United States, and they contribute $1.3
women in leadership.
trillion annually to our economy and account for 16% of U.S. employment. Clearly, women are making a powerful
We’re in It Together Some readers may react quizzically to an article on women’s advancement written by a man. Before you point out the irony, remember that we’re all in this together. Business leaders—men and women alike—must be educated and engaged in order to address this challenge. It is a workforce issue and an economic issue, as much as it is a women’s issue. And we must not forget that it impacts men too. We should also examine the challenges they face in juggling personal and professional demands.
impact through their own enterprises. The business community can’t afford to ignore the disparity in executive leadership—to do so is to discount half of our talent pool or to pass up many of our best and brightest. We can and must do more to leverage the education, skills, ideas, and innovations that women bring to the table—at the very highest levels of leadership. n David C. Chavern is Executive Vice President and Chief Operating Officer at the U.S. Chamber of Commerce. Chavern serves as chair of the Chamber’s Management Committee and is responsible for day-to-day operations as well as
The bottom line is that anyone who wants to see their businesses prosper and flourish, or to see the U.S. economy grow, should care deeply about fostering a competitive American workforce that leverages the full potential of all our people.
long-term planning. Previously, Chavern served as the Chamber’s chief of staff and vice president of its Capital Markets initiative, where he quickly became one of the nation’s leading voices on corporate governance and on the regulation of U.S. capital markets. He also served in several senior positions at the U.S. Export-Import (Ex-Im) Bank. Before coming to Washington, Chavern was in private legal practice in Philadelphia. Chavern
Women have the entrepreneurial spirit that is essential to our long-term economic growth. Case in point, in the face of slowing prospects for advancement in many
holds an M.B.A. from Georgetown University (valedictorian) and is a graduate of the Villanova University School of Law (Order of the Coif) and the University of Pittsburgh (University Scholar).
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BY THOMAS A. HEMPHILL, WAHEEDA LILLEVIK AND MARK J. PERRY
12 | B U S I N E S S H O R I Z O N S Q U A R T E R L Y // F A L L 2 0 1 2
MANUFACTURING
F
ollowing the release of a report on the
In the long term, the manufacturing skills gap
nation’s manufacturing employee skills
is forecasted to get even worse. The Society of
gap by The Manufacturing Institute and
Manufacturing Engineers predicts that the shortfall of
Deloitte in October 2011, concern among American
skilled factory workers could increase to three million
manufacturers has focused on how to resolve this
jobs by 2015 due to pending retirements of older
seemingly persistent human capital problem. The
workers and a manufacturing rebound. The BCG
good news is that there are nationwide human
study forecasts a high-skills gap in manufacturing
resource development initiatives now underway to
that could approach 875,000 machinists, welders,
address this manufacturing sector employee skills gap.
industrial engineers and industrial machinery
In this report, we describe some of the key training
mechanics by 2020. Nevertheless, whether on the
initiatives that have emerged recently to close the
high end or low end of the estimated manufacturing
critical skills gap. To address the more immediate
high-skills gap, in a 21st-century American economy
short-term demands for skilled factory workers,
built on “advanced manufacturing,” high-skilled
certification programs like the “Right Skills Now”
employees are the key to a successful enterprise.
program are training workers in accelerated, fasttrack programs. Additionally, some manufacturers have renewed their own traditional company-focused programs to train skilled workers internally. For the longer term workforce needs of U.S. manufacturers, applied training programs that include industry internships are being actively developed by community colleges around the country.
How Wide is the Manufacturing Employee Skills Gap? In the report, “Boiling Point? The Skills Gap in U.S. Manufacturing,” 82% of American manufacturers surveyed reported a moderate or severe shortage of high-skilled workers–translating into approximately 600,000 high-skilled manufacturing positions that are currently unfilled. In October 2012, the Boston Consulting Group (BCG) released a study, “Made in America, Again: Understanding the U.S. manufacturing Skills Gap and How to Close It,” which estimated that the present high-skills gap in the United
From 2010 through January 2013, U.S. manufacturing employment has increased by almost 500,000 jobs, as factory payrolls have grown from 11.46 million to 11.95 million. This recent expansion in manufacturing employment has played a critical role in helping to support and strengthen the overall economy as it has emerged from the 2009 recession. In fact, there is ample evidence that manufacturing has been at the forefront of the economic recovery over the last several years. Yet, according to the U.S. Department of Labor, the percentage of manufacturing workers aged 55-64 years old and the share of workers older than 65 have both significantly increased since 2000. With a pending wave of retirements in the manufacturing sector, the looming demand for high-skilled factory workers adds urgency to the already existing employment shortage of American manufacturers during a fragile and sub-par economic recovery. In July 2012, the President’s Council of Advisors
States, while much smaller than 600,000, is still
on Science and Technology, an advisory group of
currently 80,000 to 100,000 workers nationwide.
scientists and engineers appointed by the president,
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through its Advanced Manufacturing Partnership (AMP)
As articulated above by Moad, is this a serious
Steering Committee, issued a report that broadly addresses
dilemma for American advanced manufacturing? Or is
the advanced manufacturing employee skills gap under
there a “third way” between these apparent contradictory
“Securing the Talent Pipeline,” one of three identified
skill development approaches that offers both short- and
“pillars.” Two of AMP’s recommendations directly address
long-term solutions to this sector’s challenging human
developing partnerships with educational institutions to
capital problem? The evidence appears to support
provide formal skills certification and accreditation:
various emerging business and public policy solutions to the latter question.
The community college level of education
is the “sweet spot” for reducing the skills gap
in manufacturing. Increased investment in this sector
is recommended, following the best practices of
leading innovators.
Portability and modularity of the credentialing
Federation, a global organization of associations
process in advanced manufacturing is critical to allow
and societies engaged in manufacturing and process
coordinated action of organizations that feed the
automation activities, in conjunction with the
talent pipeline. The AMP Steering Committee
Employment and Training Administration of the U.S.
supports the establishment of stackable credentials.
Department of Labor, in 2009 developed an Automation
While efforts to credential and accredit formal education of advanced manufacturing skills and knowledge is underway, the issue of meeting the supply-and-demand of hiring new skilled workers is so critical that members of the Manufacturing Leadership Council reported in August 2012 that few manufacturers are willing to require skills certification when considering new job applicants. As Jeff Moad wrote in the Manufacturing Executive on August 24, 2012:
The situation provides something of a Catch-22
situation for certification programs and competency
models. Unless manufacturers take them seriously,
students and educators won’t. But, without robust
competency models and certification programs
attracting more educators and students to
manufacturing, the supply of new skilled workers will
continue to lag and employers may continue not to
require certification.
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MEETING MANUFACTURING HUMAN CAPITAL DEMANDS To bridge this skilled employee gap confronting American advanced manufacturing, the Automation
Competency Model (ACM). The ACM is designed to help individuals prepare for job opportunities in the automation profession and to aid existing professionals in attaining the knowledge and skills for improving job performance. It consists of nine tiers of competencies and knowledge (See Figure 1 on next page). The ACM was also designed to help academic institutions update their education curriculum to incorporate course work necessary to prepare students to enter the professional field of automation. To implement this goal, in May 2012, the Automation Federation and the American Association of Community Colleges announced the creation of the U.S. Automation Community College Consortium to create an automation curriculum that will offer two-year degree programs in specific automation arenas and a four-year college degree program in automation, engineering, and technology.
MANUFACTURING FIGURE 1:
The Automation Competency Model
The MSCS includes both technical and nontechnical skills, ensuring that employees have both the
The Manufacturing Institute, a non-profit affiliate
personal and professional skills necessary for advanced
of the National Association of Manufacturers (NAM),
manufacturing. Furthermore, the skill sets, based on
is charged with a mission of supporting American
the industry-developed AMCM, include four tiers of
manufacturers through solutions and services focused
manufacturing competencies: 1) personal effectiveness
on education, workforce development, and innovation
competencies; 2) academic competencies; 3) core
acceleration. In April 2010, NAM, in collaboration
manufacturing competencies; and 4) industry-wide
with the U.S. Department of Labor, the National
technical competencies. Figure 2 outlines the MSCS
Council for Advanced Manufacturing, and the Society
manufacturing-related areas and the partnerships formed
of Manufacturing Engineers, updated their Advanced
with manufacturing certification organizations in order
Manufacturing Competency Model (AMCM),
to implement the certifications. With 113 community
which reflects the knowledge and skills required for
colleges across the United States using the MSCS, the
the 21st-century workforce. To meet its mission, the
Manufacturing Institute reported that more than 84,000
Manufacturing Institute has developed a NAM-endorsed Manufacturing Skills Certification System (MSCS) of “stackable� credentials applicable to all aspects of the
skill certifications were issued in 2011, and this is one example of a program that is helping to address the growing demand for skilled factory workers.
manufacturing sector.
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Competencies
Certification Competencies Body/Partnership
Certification Body/Partnership
Academic & Workplace ACT Die Casting Competencies
North American Die Casting Association
Manufacturing Basics (Safety, Quality, Production and Maintenance)
Manufacturing Skill Fabrication Standards Council (MSSC)
Fabricators and Manfacturers Association International (FMA)
Maching & Metalworking
National Institute for Fluid Power Metalworking Skills (NIMS)
International Fluid Power Society (IFPS)
Welding American Welding Society (AWS) Lean
Society for Manufacturing Engineers (SME)
Technology & Engineering
Society of Manufacturing Mechatronics Engineers (SME)
Packaging Machinery Manufacturing Institute (PMMI)
Automation
International Society of Quality Automation (ISA)
American Society for Quality (ASQ)
Construction
National Center for Construction Education and Research (NCCER)
Manufacturing Skill Standards Council (MSSC), American Society of Transportation and Logisitics (ASTL), Association for Operations Management (APICS)
Transportation Distribution and Logistics
FIGURE 2: MSCS Manufacturing-Related Areas In October 2011, the Manufacturing Institute
While these competency models and skill certification
launched the nation’s first fast-track high skilled
efforts appear to be promising, can they sufficiently
manufacturing training program built on the MCSC,
meet the immediate skilled employment demands of
called “Right Skills Now for Manufacturing.” Right
America’s advanced manufacturing sector for the 100,000
Skills Now allows individuals to earn college credits and
to 600,000 unfilled skilled positions? In the longer term,
national certification for high-demand positions—like
the answer is “yes,” but in the shorter term, there needs
Computer Numerical Control (CNC) operators—in
to be another, accelerated path to meeting the human
only 24 weeks: 18 weeks at community college, with
capital demands of the nation’s manufacturers, who
coursework, benchwork, and hands-on laboratory work,
could be facing a shortage of 875,000 to 3 million skilled
followed by a six-week paid internship and one additional
employees over the remainder of the decade.
class. The Right Skills Now curriculum is closely aligned with standards established by the National Institute of Metalworking Skills. The Right Skills Now training program was first introduced at two Minnesota colleges, Dunwoody College of Technology and South Central Community College, with initial certification programs in CNC. The Manufacturing Institute is planning to replicate the Right Skills Now accelerated training model for other areas of advanced manufacturing like production and welding.
FUTURE OPTIONS TO CLOSE THE SKILLS GAP What options exist for manufacturers who are currently facing a shortage of skilled workers? One option is to hire workers without the appropriate skills and train them internally. This imposes a substantial cost on manufacturers, not only in terms of the training expenses, but also in the productivity losses incurred until these employees can operate at peak performance. Until colleges and other educational institutions can educate and train
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MANUFACTURING
the number of graduates to meet industry demand–and this situation will not occur for several years–the nation’s manufacturers will continue to experience some shortages of skilled workers. One reason for the current skills mismatch in the manufacturing sector is that many firms have reduced or eliminated the traditional apprenticeship model. The opportunity for job-specific training and education has been pushed to the job seeker, as it reduces training costs for the employer. Consequently, it also means that employers have to wait for fully trained graduates from programs at community colleges who possess both broad-based and job specific skills, such as those skills provided by the U.S. Automation Community College Consortium and the MSCS. When there is an adequate
there needs to be another, accelerated path to meeting the human capital demands of the nation’s manufacturers, who could be facing a shortage of 875,000 to 3 million skilled employees over the remainder of the decade.
supply of job candidates to meet industry demand, and when human resources planning and forecasting for skilled manufacturing is done appropriately, the skills gap will naturally be reduced over the long run. Currently, however, the immediate demand for skilled manufacturing labor is so high – coupled with the impending “baby boomer” retirements – companies probably cannot rely on waiting for workers to acquire job skills on their own and are fully trained for work in manufacturing in the short run. To address the current skilled-worker shortfall in manufacturing, more immediate measures are needed that can accelerate some level of learning while new employees learn on the job. Initiatives such as the Right Skills Now program can create an immediate candidate pool, or “just in time talent,” from which manufacturers can hire employees and teach them their company-specific skills to get them up to speed in terms of performance. This fasttrack, accelerated training program has emerged as one of the most promising skills development approaches to meet industry demand in the short run, and it can readily
be expanded to other regions of the United States where there are manufacturing skills shortages. What else can be done to accelerate the development of work-ready talent for American manufacturers to help close the skills gap? To begin with, limited on-thejob training and apprenticeship programs need to be incorporated more strategically into employee-employer joint efforts of skill acquisition. There is evidence that this approach is returning, as the BCG study found that many companies are revitalizing their in-house training programs and using job placement services to fill highskill positions. “Train the trainer” programs can also help by having higher-skilled individuals in a company teach other workers how to train new job candidates to ensure an adequate supply of skilled employees. In addition, rotational internships can be made available for shortterm work, which will allow community college students to gain a wide variety of experience in different roles while the company can fill short-term demand where needed. These kinds of programs can complement the Right Skills // S K I L L E D W O R K E R G A P | 17
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The very real possibility that manufacturing might help rescue the ailing U.S. economy in the years to come is something that nobody would have imagined or predicted just a few years ago.
Now program and can perhaps even serve as an extension
and perhaps (re)certification programs for skilled workers
of the Right Skills Now program after a job candidate has
who may need to refresh or update their skills so they
completed the basic program training.
can also be part of the new “adaptable� candidate pool
Additionally, the manufacturing sector needs to consider other concurrent, long-term and ongoing initiatives, such as implementing continuing education,
18 | B U S I N E S S H O R I Z O N Q U A R T E R L Y // W I N T E R 2 0 1 3
for manufacturers. Where appropriate, companies can also consider comprehensive cross-training programs so that as long as they have employees with the soft skills
MANUFACTURING
necessary to complement technical skills, they can offer
fast-track, high-skilled training programs like Right Skills
job-specific training on an ongoing, as-needed basis.
Now, in conjunction with long-term community college
Once again this can be considered a certifiable on-the-
applied associate degree programs, will effectively close
job extension to the stackable credits gained through
the skills gap and meet on-going manufacturing sector
the Right Skills Now program to create a more strategic,
demands in the coming years. In that case, manufacturing
comprehensive and career-oriented program of education
has a bright future as a vital, job-creating sector of the
that satisfies the competency model that the National
U.S. economy. n
Association of Manufacturers (NAM) (and its affiliated
Dr. Thomas A. Hemphill serves as an
Manufacturing Institute) has endorsed and developed
Associate Professor of Strategy, Innovation,
for the manufacturing sector and at the same time help
and Public Policy in the School of
manufacturers close the skills gap.
CONCLUSION With increased high-skilled training and a change of mindset about the high-paying career opportunities in the now thriving manufacturing sector, it might just be
Management, University of Michigan-Flint and an Economic and Regulatory Expert at the American Action Forum. Hemhill received his Ph.D. in Business Administration with a primary field in Strategic Management and Public Policy and Secondary Field in Technology and Innovation Policy from The George Washington University. In addition to his scholarly research, Dr. Hemphill has published editorial opinion pieces concerning business and the economy in
American factories over the next few years that will play
the Wall Street Journal, Investor’s Business Daily, RealClearMarkets,
a vital role in helping the United States finally recover
and The American.
from the stubborn “jobless recovery� that started three
Waheeda Lillevik is the Assistant Professor of
years ago. The very real possibility that manufacturing
Management, Marketing & Interdisciplinary
might help rescue the ailing U.S. economy in the years to
Business at the School of Business at The
come is something that nobody would have imagined or
College of New Jersey. Lillevik received her
predicted just a few years ago. As the BGG study shows,
Ph.D. from Michael G. DeGroote School of
American companies surveyed indicated that they are nearly five times more likely to move production back to
Business of McMaster University in Ontario, Canada and her M.B.A. from Odette School of Business of University of Windsor in Ontario. Her research interests lie mainly
the United States. rather than from the United States to
in human resources management, organizational behavior and
access high-skilled employee talent, and we can expect
management, particularly diversity management, cross-cultural
the recent trend of re-shoring factory manufacturing jobs
management, and international human resource management.
back to the United States to continue in the future.
Prior to coming to The College of New Jersey, Lillevik was a senior lecturer at the University of East London Business School.
The shortage of skilled factory workers needs to be
Mark J. Perry is the Professor of Economics and
a national priority for the manufacturing sector and
Finance at the School of Management at the
the national economy to rise to their full potential.
Flint campus of the University of Michigan and
Fortunately, the skills gap is finally receiving some much-
a former Fellow at the Forum for Innovation. He is also a Scholar at the American Enterprise
deserved attention from leaders in industry, government,
Institute in Washington, DC, where he has
and higher education. As outlined here, emerging human
been a regular contributor to the AEIdeas blog and The American.
resource training programs are currently being developed
Perry is also the creator and editor of the popular economics blog
with well-deserved urgency, and we are hopeful that
Carpe Diem.
// S K I L L E D W O R K E R G A P | 19
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BUsiness Horizon Quarterly
The More is Not the Merrier BY NAM D. PHAM, PH.D., MANAGING PARTNER, NDP CONSULTING
REGULATIONS
G
overnment regulation is a double-edged sword. It channels the rule of law and
350
can protect the public from the negative
externalities of private economic activities. On the other
4.4%
300
4.0%
economic activity altogether. Productive, innovative,
United States has become excessive, burdensome, and unpredictable, retarding productivity and innovation,
50
During the past 16 years, U.S. government agencies promulgated an average of 3,566 new rules per year, or 18 new regulations every business day. The pace of regulatory expansion has been accelerating. Promulgation of “major
0
Number of Major Rules
OBAMA (09-12)
1.8%
100
stifling economic growth and job creation, and undermining U.S. competitiveness.
2.2%
150
BUSH (05-08)
current U.S. regulatory environment. Regulation in the
3.0%
BUSH (00-04)
Regrettably, those adjectives do not apply to the
200
CLINTON (97-00)
considered regulation.
NUMBER OF MAJOR RULES
competitive economies require smart and well-
250
1.0%
0.9%
ANNUAL GDP GROWTH RATE (%)
hand, excessive or poorly-designed regulation deters
0.0%
Average Annual GDP Growth Rate (%)
Figure 1. Number of Major Rules Published in Federal Register
rules”—defined under law as those likely to have an Regulations that have driven up the cost of doing business have deterred current economic activity, and economic impact of at least $100 million per year—
the specter that much more is coming down the pike is
increased by 45%, from 220 rules during the Clinton
suppressing investment and hiring, which bodes ill for
Administration’s second term to 319 rules during the
economic growth moving forward. In addition to the
Obama Administration’s first term.
major rules that have been finalized, hundreds of other proposed rules related to implementation of the Dodd-
Indeed, regulations have been multiplying, but to
Frank Act (DFA), the Clean Air Act (CAA), and the
what effect? Data on economic growth and employment
Affordable Care Act (ACA) are at various stages in the
paint an unflattering picture. U.S. GDP growth and
rulemaking pipeline, hanging like the Sword of Damocles
the unemployment rate averaged 4.4% per year and
over the economy.
4.5%, respectively, during a period of less regulation in 1997–2000; during the tighter-regulatory environment of
The 2000-page DFA alone (which is so inscrutable as
the last four years, GDP grew 0.9% per year with a 9.1%
to have necessitated the commissioning of 60 independent
average unemployment rate.
studies and 93 congressional reports to attempt to better comprehend its reach and impact) will include 533 new
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rules with which firms in numerous, disparate industries
cost to industry of complying with its new rules will be
will be required to comply. By comparison, the 2002
an additional $100 million, although industry estimates
Sarbanes-Oxley Act was a more manageable 66 pages
the cost at $315 million. These hundreds of millions of
and the 1933 Glass-Steagall Act was a mere 37 pages. So
dollars in compliance costs will no doubt be passed down
voluminous and convoluted is the DFA legislation that
the mortgage supply chain, ultimately burdening U.S.
agency regulators have already missed more than 60% of
mortgage borrowers, who will also likely suffer higher
the 237 final-rule-writing deadlines. An additional 161
service prices and other effects related to there being fewer
deadlines have not even been scheduled yet, ensuring that
companies to serve demand in this industry.
investment-deterring uncertainty in the business climate will persist well into the future. In July 2012, the Consumer Financial Protection
Meanwhile, the EPA has been burning the midnight oil, proposing, promulgating, and implementing sweeping regulations of air emissions, water use, and the disposal
Bureau (CFPB)—a bureaucracy borne of the DFA—
of combustion residuals from coal used to generate
posted on its website 1,099 pages of details concerning
electricity. Producing electricity from fossil fuels is an
two new rules governing mortgage disclosure forms.
activity that generates negative externalities, including
These new rules pertain to the very same disclosure
higher concentrations of mercury, carbon dioxide, and
documents that the Department of Housing and Urban
other particulate matter in air and water. When negative
Development revised only two years ago, at a cost to
externalities are the byproduct of economic activity, then
industry of $157 million. The CFPB estimates that the
it is reasonable for the government to attempt to reduce
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REGULATIONS
them through rules that privatize their costs or, barring
For every dollar of abatement effort, relatively large
such alternatives, to control them through regulation.
public health benefits were realized. Low-hanging fruit
Ensuring the highest-quality air and water that is both
was plentiful in the early days of pollution abatement.
technologically and economically feasible is a legitimate
Today, however, after the most obvious and affordable
objective of public policy.
abatement measures have already been adopted and the
Indeed, since the creation of the EPA in 1970, air and water quality in
associated benefits have been reaped, after working down the continuum of abatement efforts toward the limits of technological feasibility, the
the United States has
marginal cost of the next
improved dramatically.
increment of abatement
Since 1980, there have been
becomes even higher and the
significant reductions in
marginal benefit even lower.
all six National Ambient Air Quality pollutants (carbon monoxide, ozone, lead, nitrogen dioxide, fine particulates, and sulfur dioxide) targeted under the Clean Air Act. While some of that improvement can be credited to the EPA’s regulatory mandates, significant gains in air and
Regulations that have driven up the cost of doing business have deterred current economic activity, and the specter that much more is coming down the pike is suppressing investment and hiring, which bodes ill for economic growth moving forward.
water quality are the result of market forces that have led to innovation, changes in production techniques, and shifting consumer demand. Regulators should be mindful of that fact and heed medicine’s Hippocratic Oath by not harming what they regulate.
Through an executive order, President Obama decreed that regulating agencies “must, among other things…select, in choosing among alternative regulatory approaches, those approaches that maximize net benefits [emphasis added].” Net benefits are maximized where the marginal benefit equals the marginal cost. In other
words, the optimal amount of regulation is the amount that maximizes net benefits, and that happens at the point of regulation where the marginal benefit of an additional unit of regulation equals its marginal cost. As put in a
Economics is about making the best use of scarce
recent report from the President’s Council of Economic
resources, and public policy formulation must heed its
Advisers: “A regulation that is expected to eliminate 90%
implications: policy decisions may yield measurable
of certain harmful emissions at a cost of $100 million per
benefits, but they also impose costs. In 1970, when the
year may well generate higher net benefits than one that
EPA began to regulate activities that were presumed to
eliminates 98% of those emissions at a cost of $1 billion
have adverse impacts on environmental quality, there was
per year.” Maximizing total benefits and maximizing net
plenty of scope for air and water quality improvement.
benefits imply very different amounts of regulation.
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In a 2005 study, the Office of Management and
The EPA has demonstrated nothing short of contempt
Budget concluded that regulators “tend to overestimate
for concerns about the high costs of excessive regulations
both benefits and costs [of proposed regulations], but
expressed by power producers and the industries,
they have a significantly greater tendency to overestimate
businesses, and households that consume electricity and
benefits than costs.” Projected benefits in agency
purchase products and services that will be impacted
“regulatory impact analyses” were overestimated 40%
by higher electricity prices. The EPA estimates that the
of the time and costs
total capital expenditures
were underestimated 26%
needed to comply with six
of the time. The lack of
(of many) new rules will
precision in prospective regulatory assessments is a serious cause for concern. According to a recent study from the Small Business Administration, total U.S. regulatory costs amount to about $1.75 trillion per year—a figure that exceeds the total value added from the
Agency cost analyses fail to consider the inevitable spillover effects onto other industries and entities along the supply chain.
be between $175 billion and $539 billion. Industry estimates range from $405 billion to $885 billion. Divergences between estimates from industry and from regulators are to be expected, but the EPA’s analyses fail to even consider whether banks or other financial institutions
entire U.S. manufacturing
would be willing to finance
sector in 2011.
those massive compliance expenditures or whether
Acknowledging that
the technology needed to
regulations can be costly, counterproductive, and superfluous, President Obama—in another executive order—decreed that regulators “must identify and use the best, most innovative, and least burdensome tools for achieving regulatory ends.” Yet the EPA appears to have not received the memo. In describing its Utility MACT rule in the Federal Register, the EPA wrote: “We may determine it is necessary to regulate … even if we are uncertain whether [the rule] will address the identified hazards. We believe it is reasonable to err on the side of regulation of such highly toxic pollutants in the face of uncertainty.”
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achieve marginally better air quality or to measure air quality at the infinitesimally small increments needed to demonstrate compliance are even technologically feasible. In the case of several EPA mandates, the prevailing view is that financiers will be unwilling to lend resources to utilities for the purpose of complying with EPA regulations, when the technology necessary to comply and to demonstrate compliance does not even exist. Furthermore, agency cost analyses fail to consider the inevitable spillover effects onto other industries and entities along the supply chain. EPA regulations, for
REGULATIONS
example, do not only affect power plants that burn coal.
given at least as much consideration as the inclination
They also have significantly negative impacts on millions
to curb it excesses. In light of the precarious state of
of industrial, commercial, and residential consumers of
the U.S. economy, further burdening American wealth
electricity, many of whom have downstream customers
and jobs creators with costly regulations would be ill-
who are forced to bear some of the increased costs. And
considered, if not a dereliction of duty. n
higher prices of manufactured goods and services tend to reduce sales at home and abroad. When reporting the results of their cost and benefit analyses, however, regulating agencies generally fail to consider these costs.
Nam D. Pham, Ph.D. is the Founder and Managing Partner of ndp | consulting. Prior to founding the firm in 2000, Dr. Pham was Vice President at Scudder Kemper Investments in Boston, where he was responsible for research,
As confirmed by the reticence of businesses to invest and hire during this sluggish economic recovery, excessive regulation and the uncertainty created by an ascendant regulatory inclination impedes economic
asset allocations and currency hedges for Scudder’s global and international bond funds. Before that, he was Chief Economist of the Asia Region for Standard & Poor’s DRI in Boston. Dr. Pham has more than twenty years of experience in multinational organizations and government agencies. Pham is an
growth and hinders innovation. Regulation is a
adjunct professor at The George Washington University. Dr. Pham
necessary evil in a competitive, dynamic economy
earned a Ph.D. in economics from The George Washington University
rooted in the rule of law. Yet, regulation must be
with concentrations in international trade and finance, economic
smart, balanced, and implemented with an eye toward insuring that the health of the productive economy is
development and applied microeconomics, a M.A. from Georgetown University, and a B.A. from the University of Maryland.
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BUsiness Horizon Quarterly
BY JOHN RAIDT
AFRICA
T
he terrorist attack and hostage crisis in
The argument will rage on, but the fact remains that
Algeria and the conflict with Islamist
the annual 5% economic growth rate the continent
insurgents in Mali have spotlighted
achieved between 2000 and 2008 is a significant
the security problems that bedevil troubled hotspots
acceleration from its performance at the end of the 20th
in Africa. Behind these tragic and troubling events,
century. According to the International Monetary Fund,
however, a more encouraging phenomenon is
the collective GDP of Africa’s 54 nations of $2 trillion
emerging—the breakthrough of Africa as a budding
and is projected to double in the next 10 years.
economic powerhouse and strategic trading partner. This development has the potential
Massive and persistent poverty and disease, large zones of instability
to reshape the global economic landscape, especially if spoilers such as insecurity, poor governance, and weak rule of law can be defeated. Africa’s vigorous GDP growth and surging construction, investment, telecommunications, and retail sectors have seized the world’s attention. To put this stark turnaround
Africa has the advantage of being able to adopt the latest technologies and critical infrastructure unburdened by costly and outdated legacy systems.
in perspective, in May 2000,
year ago, the magazine’s cover had quite a different take on Africa, celebrating “The Hopeful Continent.” Despite this remarkable reversal, questions abound: Is Africa’s growth sustainable or fleeting? Is
mortality, and government corruption in many areas still present enormous challenges to be overcome. What is crystal clear, though, is that the population of the world’s second largest continent is eager to achieve progress at a time when the transformative powers
The Economist called Africa “The Hopeless Continent.” Just more than one
and insurgency, high infant
of the international trading system, access to global capital and modern technology, and the proliferation of information and communication technology, presents a strong basis to foster it. Progress is unlikely to be uniform. Africa’s five
it based on wide-scale development or on a narrow
principal regions (North, South, East, West, and
commodity boom? Looming over the continent is
Central) and each of the continent’s 54 countries possess
the specter of Dutch Disease, or the curse of resource
rich and unique cultures, histories, and traditions, but
riches that impoverished and crowded out the Dutch
all are highly diverse. They vary widely with respect
manufacturing sector in the 1960s, making The
to natural wealth and resources, political cultures,
Netherlands richer on paper but poorer and less
governmental capacities, and levels of development. Yet
competitive in reality—a fate that has gripped a number
amidst the diversity, each enjoys a vast wealth of human
of struggling nations around the world up to the present.
capital; and Africans, from Ras ben Sakka, Tunisia, in the
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North to Cape Agulhas in South Africa, share a driving
in this breakthrough; so too does the United States, its
passion for greater opportunity, better quality of life, and a
business community in particular.
brighter future. Not inconsequentially, Africa has the advantage of
Africa represents an enormous emerging market of one billion people, many of them eager for our goods,
being able to adopt the latest technologies and critical
services, and solutions. The African Development Bank
infrastructure unburdened by costly and outdated legacy
estimates that in 2010, the continent’s middle class was
systems. CNN reports that a decade ago, Nigeria had
made up of 313 million people (34% of the continental
100,000 phone lines; today, the country’s people possess
population), nearly triple the number in 1980. The ratio of
more than 100 million cell phones. Experts predict that
its population joining the middle class is expected to swell
by 2016, there will be more than one billion cell phones
in years to come, particularly as Africans urbanize on a
in Africa. This trend promises unprecedented levels of
continent that already matches the European Union in the
empowerment to people who are demanding more of their
number of cities with at least one million people. Today,
governments, which in many cases occupy the lower rungs
Africa has more than 500 million people of working age.
in global rankings of national transparency, anticorruption,
By 2040, according to McKinsey, their number of working
democracy, and press freedom.
people is projected to exceed 1.1 billion—more than in
The extent to which Africa’s vast human capital can be unleashed—an objective requiring the synergy of
China or India—and lift GDP growth as a result. The difference is being felt in the United States. The
security, economic development, good governance, and
Office of the U.S. Trade Representative (USTR) recently
the rule of law—will have much to say about the
announced that the export of U.S. goods to Sub-Saharan
world’s prospects for peace and prosperity in the 21st
Africa in 2011 exceeded $21 billion—a nearly 25%
century. The people of Africa have an enormous stake
increase from the year before. Leading the pack according
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AFRICA
to the USTR were exports to “South Africa ($7.2 billion;
Though late to the table, the United States is
mainly machinery, vehicles and parts, gold powder,
awakening to the economic and strategic imperative of
non-crude oil); Nigeria ($4.8 billion; mainly cereals,
engaging more energetically and proactively in Africa.
vehicles and parts, machinery, non-crude oil); Angola
In the fall of 2012, the U.S. Chamber of Commerce
($1.5 billion; mainly machinery, aircraft parts, poultry,
launched its “Africa Initiative” to connect U.S. enterprises
iron/steel); Ghana ($1.1 billion; mainly machinery,
with opportunities in the continent. Additionally
vehicles and parts, non-crude oil, cereals);
in November 2012, the Obama
and Ethiopia ($689 million; mainly
Administration announced its “Doing
aircraft and parts, cereals, machinery).” Annual foreign direct investment increased from $9 billion in 2000 to $62 billion in 2008. Despite these encouraging statistics, many African leaders continue to puzzle over why the U.S. private sector
Business in Africa Campaign”
Africa represents an enormous emerging market of one billion people, many of them eager for our goods, services, and solutions.
is not investing, partnering,
pick up its game. The U.S. government and private sector are also cooperating to combat severe poverty and infectious disease. Companies such as CocaCola, General Electric, Chevron, and ExxonMobil are playing an increasing role in development while expanding their operations and
and seeking African markets more
workforces in Africa.
energetically. It’s widely understood that the United States is being outhustled
to help the United States
Such initiatives are not just economic
by China, which continues its all-out push to invest,
and commercial imperatives but strategic ones as well.
build infrastructure, obtain commodity contracts,
The question of whether Africa’s role in the world will
and win influence in what they rightly assess to be a
be marked by peace and prosperity, contributing to a
strategically critical region. In 2009, China surpassed
safer world order, or by turmoil and poverty is a matter
the United States as the African continent’s largest
of enormous consequence, not only for the African
trading partner. In the next decade, China is poised to
people but for the family of nations living in a highly
invest as much as $2 trillion globally. Commenting on
integrated world and tightly knit global economy. The
these circumstances, a prominent African leader noted
extent and quality of America’s economic and diplomatic
the irony that while the United States is “pivoting to
engagement can make a huge difference in how that
Asia,” Asia is pivoting to Africa. Europe, India and the
question will be answered.
Middle East too, have recognized the importance of Africa’s emergence and are seeking to build relationships and national market share through stronger trade arrangements and greater interaction.
In North Africa, where the Arab Spring first started, the movement continues to play out with enormous consequences for the global order. The people flooding
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BUsiness Horizon Quarterly the public squares in Tunisia, Egypt, and Libya haven’t just been demanding votes and political rights, but also jobs and opportunity—the elements of progress that rely upon achieving greater security, economic development, and good governance and the rule of law across the board. Many security experts worry that unless these pillars are shored up in Sub-Saharan Africa as well, Islamic extremism will continue to gain strength, creating a fresh cradle for international terrorism and new hotbeds of unrest that threaten progress. The region is home to a growing cadre of extremist groups, seeking to prey on a significant youth bulge burdened by high unemployment, meager income, governmental corruption, and want. According to the World Bank, the number of 15–24 year olds has been increasing faster in Africa than in any other area of the world. This age segment accounts for “20% of the population, 40% of the workforce, and 60% of the unemployed on the continent.” Youth, poverty, and unemployment in the midst of extremist ideology make a dangerous cocktail for unrest and insurgency, a particular concern in the Nigerian Delta from where the United States sources a significant portion of the oil it relies upon. Only five years ago, the United States activated the U.S. Africa Command (AFRICOM)—uniquely composed not just by the military services but also by 13 U.S. government departments and agencies, including State, Treasury, Commerce, and the U.S. Agency for International Development (USAID). AFRICOM’s structure lends a more modern meaning to the concept of “jointness” and is testimony to the reality that security in this century is not a function of military might alone but of the economic, social, and political conditions that foster peace and development.
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AFRICA
If our strategic goals—both economic and
Perhaps these phenomena indicate that the
security—are to be achieved, the U.S. government
breakthrough of Africa is being accompanied by a
must mobilize adroitly to help promote a political
set of larger and more strategic breakthroughs here
and economic environment in Africa that will help
at home. Among them is a greater understanding of
U.S. companies compete. Such a campaign must
the interlocking roles that security, development, and
collaboratively harness the diverse energies and
good governance and the rule of law play in promoting
resources of the federal interagency, including the
human advancement in Africa and elsewhere.
Millennium Challenge Corporation, USAID, the
This insight seems to be accompanied by a firmer
State Department, Commerce Department, U.S.
grasp of the private sector’s vital role in building
Trade Representative, the Overseas Private Investment
stability, development, and improving lives abroad
Corporation, the Export-Import Bank, and others in
and at home. Together, these truths are producing a
promoting the rule of law and achieve the vital goals
keener appreciation of the reality that security and
established by the African Growth and Opportunity
prosperity in the 21st century is not guaranteed so
Act, passed in 2000.
much by the caliber of our arms but by the caliber of
The unlikely duo of General Jim Jones, the former NATO Commander and U.S. Marine Corps Commandant, and Bono, the lead singer of the Irish rock band U2, have joined forces to spread the word that in Africa, as elsewhere, security is not possible without development; development is not
our economic engagement. It could be that these breakthroughs prove as consequential and hopeful as the future of Africa itself. n John Raidt serves as a Scholar at the Forum for Innovation, the Advisor to the Chairman of the U.S. Chamber of Commerce, and as a Senior Fellow
possible without security; and neither can be achieved
at the Atlantic Council. Raidt has over 21 years of
without good governance and rule of law. They are
public policy experience, including national and
calling attention to the fact that private enterprise and entrepreneurship—the powerful engine of jobs, opportunity, and freedom—is an indispensable enabler
homeland security, energy, the environment, and natural resource management issues. He has served as a professional staff member of three national commissions, including the National Commission on Terrorist Attacks Upon the United States (9/11
of stability on which the military focuses; of human
Commission), the Commission on the National Guard and Reserves,
advancement on which the development community
and the Independent Commission on the Security Forces of Iraq. In
aspires; and of the prosperity and higher quality of life upon which the people whose hearts and minds we seek to win are set.
2008, Raidt served as Deputy to General James L. Jones (USMC-Ret.), Special Envoy for Middle East Regional Security, focusing on resolution of the Israeli-Palestinian dispute. He has also worked as a senior staff member in the U.S. Senate, including as the Legislative Director for U.S. Senator John McCain and Chief of Staff of the U.S. Senate Committee on
Several decades ago, public sector development
Commerce, Science and Transportation.
assistance accounted for roughly 70% of all resources flowing to developing nations. Today, 87% of the resources flowing into the developing world come from private sources (e.g., corporations, foundations, NGOs, and remittances).
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BREAKTHROUGHS
BUsiness Horizon Quarterly
BY BRET SWANSON 34 | B U S I N E S S H O R I Z O N S Q U A R T E R L Y // F A L L 2 0 1 2
MEDICINE
S
everal years ago, when our four children were
we could raise the productivity of health care, which is
ages five, three, and two, along with a newborn,
about one-sixth of GDP, we could substantially improve
we spent a lot of time at the doctor’s office. Way
the nation’s economic health.
too much time, in fact. We would detect an ear infection coming on, make an appointment with the pediatrician, bundle the four in snowsuits, load them into the minivan, and then unload, unbundle, and wait 45 minutes for the doctor to perform a three-minute exam. On perhaps a dozen occasions, the doctor told us the ears were fine—only for us to return, bundled, locked, and loaded, two days later with
Gene therapy, stem cells, organ transplants, robotic surgery, and robotic limbs—these are examples of the best of American technology. They seem almost miraculous in their sci-fi sophistication and healing power. Our highly trained doctors and nurses are the world’s best. Yet, the inefficient structure of American health care is a heavy burden. It saps our time
an unhappy child with an obviously
and weighs on our individual
full-blown infection.
and governmental budgets. This
The health care system didn’t
dead weight isn’t just breaking our
reward our intuition. Tomorrow’s
finances; it threatens to deaden our
parents and children, however,
innovative capacity.
may not have to endure two days, two visits, and two sleepless nights before getting treatment. They will have help from, among other things, their smartphones. Plug a scope into your phone, peer into your child’s ear, and let your
Plug a scope into your phone, peer into your child’s ear, and let your phone’s camera and an app analyze what it sees and senses.
Enter smartphones and tablets, which could be catalysts of a new health care productivity revolution. With Gartner, a leading IT research and advisory company, projecting the sale of nearly 1.2 billion smartphones and tablets in
phone’s camera and an app analyze
2013, the number of new mobile
what it sees and senses. Amoxicillin
devices will be breathtaking. They
to the rescue, without leaving the
are connected, personal, and
house. This little story is the tip of
broadband-connected general
the health care iceberg. The health
purpose computers, limited in
care market is vast and deep, but
their capabilities mostly by the
many of its details are invisible
reach of our imagination. In the
and its scale impenetrable. It floats along, growing in bulk but too rarely in sophistication, even as health insurance rates continue to soar. Health care employment is growing fast as well, but that’s part of the problem. Between 1990 and 2010, while the rest of the U.S. economy enjoyed annual productivity gains of around 2%, American health care productivity actually declined 0.6% per year. Over 20
short time since Apple’s App Store first opened, consumers have downloaded 40 billion iOS apps and another 30 billion Google Android apps. The diversity of the new software tools is astonishing. It’s all powered, moreover, by broadband wireless connectivity and the near-infinite computing and storage capacity of the Internet cloud.
years, that’s a productivity differential of around 60%. If
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BREAKTHROUGHS
BUsiness Horizon Quarterly
Software and device development for medical apps is
over a patient to diagnose seemingly any condition.
exploding. Today, doctors use apps as reference books,
Now the wireless chip maker Qualcomm has partnered
dosage calculators, and electronic stethoscopes. They have
with the X Prize Foundation to challenge inventors and
access to patient records and images, anytime, anywhere.
entrepreneurs to make what was once science-fiction a
Patients use simple apps like Emergency Kit, which
true hand-held reality.
stores your blood type, medications, allergies, emergency contacts, and other vital health information; or the MediSafe cloud-based pillbox app, which reminds you to take your medication—and notifies loved ones if you don’t. These, however, are just the obvious first steps. Far more advanced apps are being developed.
To win the prize, this real-world Tricorder must be able to make “negative assessments” of (or rule out) 13 core conditions, including anemia, lower urinary infection, type 2 diabetes, atrial fibrillation, stroke, sleep apnea, tuberculosis, chronic obstructive pulmonary disease (COPD), pneumonia, leukocytosis, hepatitis A, and, last but not least, the dreaded otitis (ear infection).
Health Care decisions should be personal and flexible, like a smartphone.
The device must also assess three elective conditions, such as hypertension, melanoma, cholesterol, HIV, and osteoporosis. Last, the device must measure the five vital signs: blood pressure, heart rate, temperature, respiratory rate, and oxygen saturation. The winners will be crowned in mid-2015. Other miniaturized medical breakthroughs will make
Consider CellScope’s new smartphone otoscope and dermascope attachments—one looks into ears, the other at skin lesions, taking photos, keeping records, and forwarding pictures to your physician. Similar apps are in the works for the heart, like mobile electrocardiograms. At the 2013 Consumer Electronics Show, Dr. Peter Fitzgerald, a cardiologist and engineer at Stanford’s Center for Cardiovascular Technology, estimated that one-third of cardiac clinic visits are unnecessary. Remote technology, however, can do more than replace office visits and cut costs, he said. It can empower patients, individualize their care, and ultimately reduce morbidity and mortality. The most ambitious project in the mobile health field is being catalyzed with a $10 million prize for a future device inspired by Star Trek’s Dr. McCoy. In the show, Dr. McCoy would wave his “tricorder” handheld device
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the Tricorder pursuit look quaint. New research suggests a number of conditions can be diagnosed by looking at the inner eye or, separately, through chemical analysis of human breath. It is easy to see, once these technologies are perfected, how they might be integrated into mobile devices. Meanwhile, two researchers at Caltech have found a way to put a terahertz scanner on a chip. Like x-ray machines, these scanners see through objects, but they aren’t as powerful and don’t damage human tissue. No doubt you’ve seen big terahertz machines at airport security checkpoints. Now consider putting one of those in your phone and you’ve got a personal x-ray machine ready to go. The “app-ification” of medicine will create a positive feedback loop of new data and further breakthroughs. With real-time information on vital signs, symptoms,
MEDICINE lifestyle habits (such as diet and exercise), biochemistry, and medicines (and our responses to them), we will compile vast troves of medical data that can fuel new research as well as treatment. Smart devices will help bring the power of Big Data to health care. Such an evolution is not an argument for “telemedicine,” as it has often been described. Too often, telemedicine entails an expensive, subsidized, and purpose-built system that will be outdated before it is ever turned on. The ecosystem of broadband, devices, and apps is more likely to produce good outcomes for remote medical technology. Greater productivity in health care does not mean we need to “cut” health care quality or even, necessarily, spending. Health care is a superior good—when we have satisfied our other basic needs, it makes sense to spend to feel better, longer. As much as possible, however, individuals should make these decisions. Productivity comes from matching real technology with real knowledge and real prices to produce real value. This is why medical procedures paid for with cash, such as Lasik eye surgery, have achieved dramatic technical success while driving down costs. The links between patient, doctor, technology, and price are real. An ideal health system would combine three things: (1) Patients can and should be empowered by technology;
In the end, health care decisions should be personal and flexible, like a smartphone. Unfortunately, regulations under the Affordable Care Act push in just the opposite direction, limiting diversity and choice in the insurance market, constraining individualized consumer-doctor decisions, and forcing industry consolidation when more health experimentation is needed. A costly, bloated system will, at some point, degrade our ability to fund high-end research and pay for high-end services. We need technology at the low end of the spectrum with the patient as consumer of the doctor’s services—to foster evermore technology at the high end: pharmaceuticals, diagnostics, and surgery. The smartphone represents the possible future of medicine—decentralized, agile, innovative, and consumerbased. Under the enacted health care measures assembled by the Obama Administration, it is just the reverse. It is the 1950s mainframe of medicine—centralized, slow, heavy, and costly. Your iPhone won’t cure cancer, but if mobile computers can make medicine faster and more personal, they will improve our daily lives and budgets and free up resources for tomorrow’s life-enhancing discoveries. That’s a breakthrough to remedy our needs for growth, opportunity, and lives well-lived. n Bret Swanson is President of Entropy Economics, a research firm focused on
(2) Insurance should actually be insurance against unforeseen illness, not a government-guided Rube Goldberg third-party payment infrastructure; and (3) Doctors, clinics, and hospitals should be operating in a more dynamic environment with far more entrepreneurial business models than exist today.
technology and the global economy, and of Entropy Capital, a venture firm that invests in early-stage technology companies. In addition to serving as a Scholar at the Forum for Innovation, Swanson is a “Broadband Ambassador” of the Internet Innovation Alliance and is a trustee and investment committee member of the Indiana Public Retirement System (INPRS). Bret Swanson writes a column for Forbes and often contributes to the editorial page of The Wall Street Journal.
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EXECUTIVE PROFILE GWENNE A. HENRicks Vice President of Product Development & Global Technology and Chief Technology Officer Caterpillar
“Always do what you say you will... and more.”
Since joining Caterpillar, Inc. in 1981, Gwenne Henricks has held numerous engineering and leadership positions at the company, including: Junior Engineer, Design Engineer, Senior Design Engineer, Supervising Engineer, BHL Engineering Manager, Division Manager of Systems and Controls Research, 6 Sigma Deployment Champion, WW Undercarriage Product Manager, General Manager Specialty Products Business Unit, General Manager Cat® Electronics, Vice President Electronics and Connected Worksite Division, and Vice President Industrial Power Systems Division. In 2012, the Caterpillar Board of Directors named Henricks Vice President of Product Development & Global Technology, and Chief Technology Officer.
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An Illinois native, Henricks attended Bradley University, receiving a Bachelor of Science in physics in 1979 and a Master of Science in electrical engineering in 1981. In 1996, Henricks completed the Managing Engineering Design and Development Program at Carnegie Bosch Institute, and in 2003, she earned a master’s in business administration from the University of Illinois. Henricks is a member of the Society of Automotive Engineers, the Society of Women Engineers, the Engineering Employers’ Federation Economic Policy Committee, the UK Automotive Council, and Speakers for Schools.
Gwenne A. Henricks Forum: Define “breakthrough” Henricks: An innovation that challenges well-established norms and allows us to better meet the needs of society. Forum: What’s the one breakthrough that will change the way you and your industry do business?
Forum: What’s the best piece of advice that was given to you in your career? Henricks: Always do what you say you will ... and more. Deliver the results.
Henricks: Autonomous vehicles. We have demonstrated they work, and they will help our customers operate their businesses more safely and with greater productivity.
Forum:What’s the one product you would most like to have developed on your watch? Henricks: There will be an abundant and inexpensive supply of natural gas available to our customers well into the future. Caterpillar has more than 60 years of experience in developing power systems that operate on natural gas. I am excited to be in the middle of new developments that leverage this experience into the development of locomotives and mining vehicles that operate primarily on gas.
Forum: What guidance would you have for an entrepreneur getting started today? Henricks: Develop deep collaborative relationships with your customers and suppliers. Get to know their value propositions as well as they do.
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Scholars and fellows SPEAK!
The greatest
breakthrough we need is…
“Women representing half of all senior leadership positions in the government, the board room, the C-suite, the financial sector, and the technology industry. Reaching parity in the STEM fields on the whole would also be an amazing breakthrough. We are on our way!”
- Leslie Bradshaw
“…in recreating our culture celebrating and championing success. We need to renew our sense of optimism. Historically, our country has always responded to challenges with innovation, creating new opportunities and leading to a rising standard of living. We need leaders who help articulate that grand vision, spurring us to think larger and bigger than we dare.”
- Jim Slutz
“…to give the rising generation of American business leaders the tools they need to create economic growth and prosperity, including attaching H1B visas to STEM diplomas, renewing investment in preK-12 and university education, and revamping the corporate tax code.”
- Tamara Carleton
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Scholars and fellows SPEAK!
“…to achieve an adequate level of citizen foresight and awareness of the debt burdens being passed to future generations. The politicians who discover the means to educate voters about this reality will be empowered to pursue the tax and entitlement reform necessary to create a sustainable fiscal path.”
- Alex Brill
“…political agreement to allow any talented man or women from overseas who wants to work and start businesses in the United States to do so. Immigrant entrepreneurs will help make the 21st another American century.”
- Nick Schulz
“…in compound growth fueled by innovation that transcends any problems that policy ‘solves.’ Failing to grasp the human capacity for breakthroughs is, in fact, a chief cause of bad policy.”
- Bret Swanson
“…to achieve and sustain national excellence in science, math, engineering, and technology (STEM). The aptitude of America’s student body and workforce in these disciplines is prerequisite if we are to meet the demands of the modern job market, if our economy is to prosper, if our nation is to lead, and if our society is to deliver the life-improving goods, services, and solutions needed at home and by the whole of mankind.”
- John Raidt
// Q U E S T I O N S | 41
WHAT YOU SHOULD KNOW Curated from recent Forum research, blogs, and events.
forum.uschamber.com
RESEARCH • The American experience with agriculture productivity is nothing short of a modern miracle. It has fundamentally transformed economic reality so that Americans need not wrestle with scarcity but instead face issues related to abundance. America’s post-scarcity food world is giving birth to novel biomass-based products and industries. The challenge today is to extend the productivity miracle at home and through technology transfer, investment, and trade, extend the miracle to every corner of the globe. Nick Schulz, Forum Scholar – Agricultural Abundance: An American Innovation Story • As large and consequential as the pending fiscal threat may be, it is not the last fiscal cliff our economy will face (and neither is it the first we have confronted). The impending insolvency of Medicare and Social Security, equally certain as the near-term fiscal cliff without Congressional intervention, would also cause painful fiscal contractions if not averted. Alex Brill, Forum Fellow – Consequences of Inaction: The Fiscal Cliff and the Looming Entitlement Crisis • Millennials are likely the most studied generation to date. According to U.S. Census Bureau statistics, there are plenty of them to study, 80 million plus (the largest cohort size in history). There are data to find pretty much whatever you are looking for, as the data are varied and sometimes contradictory. In fact, Millennials are full of contradictions, which, of course, may explain the youth of any generation. Most consistent is that this generation is technically savvy, almost as if it has a digital sixth sense. A wired, connected world is all that Millennials have ever known. Sally Seppanen, Principal, Sepp6 – The Millennial Generation: Research Review • For nearly 40 years, U.S. energy policy has been formulated in an atmosphere of scarcity and fear. There has been a fear of rising energy costs, a fear of relying on imported oil, and a fear of running out of energy. An air of fear, shortage, and scarcity produces an atmosphere that limits policy options. We have created an energy policy with a lottery mentality that seeks the next big payoff or silver bullet. • That is not the history of our country. We are a country of abundance—natural abundance endowed by our creator and an abundance enabled through innovation, such as the current shale oil and gas revolution. Perhaps the greatest opportunity offered by recent shale oil and gas production is that we can envision our future from the prism of wealth, plenty, and abundance. Energy policy developed in an atmosphere of abundance is developed on optimism, growth, and a bountiful future. Jim Slutz, Forum Fellow – Energy Policy—Building on Abundance
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(from left to right) Darci Vetter, the Deputy Under Secretary, Foreign Agriculture Service at the U.S. Department of Agriculture and Jerry Steiner, the Executive Vice President for Sustainability & Corporate Affairs at Monsanto, speak at the Business Horizon Series event “Agriculture: Growing Innovation and Opportunities.” Photos by David Bohrer / © U.S. Chamber of Commerce
Secretary of Agriculture Tom Vilsack speaks at the Business Horizon Series “Agriculture: Growing Innovation and Opportunities.” Photo by Ian Wagreich / © U.S. Chamber of Commerce
State of American Business Address by U.S. Chamber of Commerce President and CEO Tom Donohue. Photo by Ian Wagreich © U.S. Chamber of Commerce
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WHAT YOU SHOULD KNOW QUOTES “The last four years of agriculture have probably been the best four years in terms of income and exports in the history of the country.”
~ Tom Vilsack Secretary, U.S. Department of Agriculture December 19, 2012
“Economic growth cannot solve all of our problems, but without growth, we will not be able to solve any of them.” ~ Tom Donohue President and CEO, U.S. Chamber of Commerce January 10, 2013
“As agriculture productivity has grown, it’s made food more affordable, which has enabled people to spend money on educating their children, going on vacation, owning a home, and all of those things that drive the economy.” ~ Jerry Steiner Executive Vice President for Sustainability and Corporate Affairs, Monsanto Company December 19, 2012
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BLOGS
http://forum.uschamber.com/blog/
A
s with any difference—be it generational, economic, educational, religious, racial, cultural, or otherwise—conducting one’s own research, reading available and accurate studies, participating in open, two-way dialogues, and exercising compassion are all steps on the path to truly understanding and appreciating others.
Leslie Bradshaw Forum Fellow and COO, Guide “How the Millennial Generation is Redefining Parental Roles and What it Means for Our Economy” December 4, 2012
C
urrent policies have placed us on what the Congressional Budget Office calls “the explosive path of federal debt.” In twelve years’ time, we’ll face the exhaustion of Medicare Part A followed by Social Security’s fall some ten years later. Moreover, today’s fragile economy reflects a larger poverty of opportunity. What then shall we do? First, do no harm. The central virtues of a deficit deal must revolve around doing what is best for the American people— today and tomorrow.
Michael Hendrix Director, Research & Emerging Issues, Forum for Innovation “Do No Harm: 3 Principles for Dealing with the Fiscal Cliff” December 6, 2012
T
he fact is the economy is not strong enough to ensure robust job creation. Dean [Baker] believes it’s because of the loss of housing wealth, the collapse in aggregate demand coupled with insufficient action out of Washington. I would place blame on policygenerated uncertainty, an overabundance of regulation, and other factors harming the country’s productive “animal spirits.” Whatever the reasons, there is no mistaking the jobs machine is stuck in neutral, at best.
Nick Schulz Forum Scholar and DeWitt Wallace Fellow, American Enterprise Institute “The Signal Through the Jobs Noise” October 11, 2012
G
overnment must match the private sector’s zeal for improving productivity and efficiency. We must modernize our regulatory system if we are to properly posture our economy for success in the 21st century. Properly done, we can produce better regulatory outcomes and a stronger America.
John Raidt Forum Scholar and Senior Fellow, Atlantic Council “Modernizing Regulation in America: A Look at MAPI’s Latest Report” September 13, 2012
FREEDOM TO FAIL = FREEDOM TO EXPLORE
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FINAL WORD Welcome to the Forum A new year brings new possibilities. It is a blank canvas on which we paint our hopes and aspirations and bring important pursuits to life. Indeed, a new year is an opportunity to do something you’ve always wanted to do. So it is for us at the U.S. Chamber of Commerce Foundation and our new Forum for Innovation. The Forum is the U.S. Chamber’s new focal point to explore and research emerging issues impacting the future of free enterprise and the business community. As a public policy think tank, it is the Forum’s job to learn more about these critical areas, not only to better understand them, but also, to hear from the diverse people who are driving and shaping the issues and debates. We may be biased, but we think we have the coolest mission in the Chamber. We’re going to places the Chamber hasn’t explored before, and along the way, we will engage with a wide array of professionals, experts, scholars and others. We will take a closer look at pressing issues that merit deeper investigation, and we will also look to the horizon, where challenges and opportunities await American businesses. Our approach will be forward leaning, with our eyes focused on the future and all of the questions, challenges, and possibilities that it holds. And we are eager to share what we learn. To do that, we’re going to use some of the tools we’ve built over the past two years. These include our Scholars & Fellows program, the award-winning Business Horizon Quarterly (BHQ), our Business Horizon Series of events, and our always-busy blog and social media presences (Facebook and Twitter). Each of these tools is part of the Forum, and we will be adding to them in the coming months and years. That is where we need your help. Give us your feedback. Tell us what works and what doesn’t. Share with us what issues you think we should be looking at and the players we should be talking to. Feedback is a gift we value, as it helps us improve every step along the way. Any “forum” worthy of its name is a place where informed debate, discussion, and conversation are always valued and never endangered. We want to be that forum, and with your help, we can be and much more. Please join us as we open the Forum for Innovation, where ideas are welcome and conversations are prized.
Regards,
Rich Cooper Editor-in-chief
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“
AGRICULTURE decided to change, decided to transform, decided to embrace innovation, decided to become multidimensional instead of two dimensional, to extend beyond crop production and livestock and begin a process of focusing on specialty crops and niche market opportunities, developing fuel and energy crops and committing itself in a very significant way to conservation and the outdoor
“ “
recreational opportunities that that creates.
– Tom Vilsack
Secretary, U.S. Department of Agriculture
The Forum for Innovation hosted Secretary Tom Vilsack at “Agriculture: Growing Innovation & Opportunities,” a program highlighting the innovations and emerging opportunities that today’s agriculture industry are presenting. This program identified many of the latest innovations and advances in agriculture and showed how America’s agriculture community continues to feed an ever-growing global population while supporting American jobs and competitiveness. For more information on this event, as well as for the Forum’s other events, visit forum.uschamber.com/events.
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LOOKING TO 2013 Join the Forum in its endeavor to put on a breakthrough year in research and events, focusing on issues from abundance to innovation, free enterprise to energy, and manufacturing to millennials. If you’re looking to explore the latest issues impacting the future of the business community, the Forum has you covered. Stop by our new website and become a fan of our new Facebook page for more information.
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