blog updates

Follow KSM

KSM blog

KSM Blog | Katz, Sapper & Miller CPA

Manufacturing in the New Age

Posted 2:57 PM by

In June, 2011, President Obama announced the launch of the Advanced Manufacturing Partnership (AMP). The AMP is an effort by the federal government to partner with manufacturers in industry and academic experts to invest in ways it improve or "advance" the U.S. manufacturing industry. The plan calls for more than $500 million to help start the efforts. President Obama announced the following key steps are being taken by the government to ensure the success of the AMP:

  • Building domestic manufacturing capabilities in critical national security industries
  • Reducing the time to develop and deploy advanced materials
  • Investing in next-generation robotics
  • Developing innovative energy-efficient manufacturing processes

Over the past few years, many Americans have lost jobs with strong manufacturing companies. Professors at Massachusetts Institute of Technology (MIT) are hoping that the efforts of the AMP program are able to restore many of these jobs. The goal is to create an environment through partnerships with government, academia and private industry to create new means of manufacturing more for less, therfore increasing manufacturing profitability.

MIT political scientist Suzanne Berger says, “This isn’t just about ways of moving widgets around. What we’re talking about is a whole new set of technologies.’’

The work at MIT and other universities is already beginning to impact the current manufacturing environment. MIT labs sparked the idea that created the lithium-based batteries that are now beginning to truly impact the auto manufacturing sector. MIT has created a strong working relationship with five other universities with the hope that the more academia involved, the more impact there will be.  Only time will tell how successful the AMP initiative will truly be, but as Jason Miller, assistant to President Obama, states in  a recent speech at MIT, it's not about the past. It's about the future.

"It's not about some desire to return to a romantic notion of the past, of what manufacturing was," Miller said. "It is about a fundamental recognition that without a robust and vibrant manufacturing sector, it's going to be difficult for us to sustain a robust and innovative economy."

About the Author

Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group as well as being a member of the Not-for-Profit and Governmental Services Groups. Justin works with clients to help them avoid risk and maximize efficiencies by keeping an eye on their bottom line and helping ensure accurate financial reporting. Connect with him on LinkedIn.

Comments (1)
Don wrote
Thanks Justin for educating the public on these initiatives.
Posted Feb 9 2012 8:31 AM
Post a Comment
Email: (Not Displayed)
Website: (optional)
Comment (HTML tags will be stripped):
Please type the alpha-numeric code above (case sensitive):