Making Stuff and Building Wealth

The economic engine that built the USA was manufacturing - taking locally available and abundant raw materials and converting them into finished product desired by local citizens and people around the world - like cars, furniture, computers, home appliances, clothing and more.  Look at the success stories of General Electric, IBM, Ford Motor Company, Hewlett Packard, Henredon Furniture, Apple Computers, Nike, Brooks Brothers, Westinghouse, Boeing, Sara Lee and more.  Making "things" and selling them at a profit, and sharing those profits with the investors and employees is how wealth is built.  That wealth, in turn, allowed the USA to become the most consuming nation on the planet.

As the brain children of Wall Street demanded that US manufacturers follow the lead of Nike to outsource their production to low-wage countries in Asia, manufacturing left the US starting in the late 1990's.  Footwear and apparel went to Brazil and then Vietnam and China.  Apparel went to Thailand, Philippines, Indonesia and eventually China, Bangladesh, India and Sri Lanka.  Furniture went to China and Vietnam.  Automotive parts are now scattered to the winds as are aircraft parts.  With the move of manufacturing, hundreds of factories across America closed and tens of thousands of skilled workers lost their jobs - starting the unemployment curve we see today.

These were great short-term moves to increase profits by reducing costs, but if an increasing number of people are out of work and don't have the means to buy the goods imported from overseas, so what if our stores are chocked full of products?

AND, look at what's happened to our balance of payments?  Cash has been flying out of the US by the hundreds of billions of dollars.  It's time to stop the madness of chasing short-term profits at the expense of our long term future and viability as a society.  Let's send the children of Wall Street back to their playpens to do something else and let those who know how to captain industry and build true wealth do their jobs.

There are beacons of hope springing up...

Let's celebrate Brooks Brothers - the iconic purveyor of made-to-order and off-the-shelf clothing that is truly "Americas's Clothiers".  They now have THREE sewing factories in the USA - North Carolina, New York and Connecticut making clothing for sale right here.  AND, a labor union represents all 600+ US employees.  They make the uniforms for the US Naval Academy and the dress blues for the US Navy - among a lot of other customers.  Want to buy American?  Look at www.seams.org to find more US makers of clothing.

Let's celebrate and patronize Bob Timberlake who brought his furniture manufacturing back from Asia, reopened an old plant in High Point, NC and is now making his signature line of furniture here in the USA.   He's creating jobs, putting people back to work and creating wealth.

There are plenty of these stories around.  We simply need to patronize US manufacturing wherever possible.

Yes, US industry can compete on the world market.  BUT, we have to have good primary, secondary and trade schools to educate the students - so we have a qualified, trained workforce.  We must reintroduce home economics class, wood shop and other vocational skills training back into our junior high schools and high schools.  Not every kid in the US needs to go to a four-year college to earn a good living.  But, we DO need to provide and educational system to allow those who want good jobs the ability to find one.  Stories in local newspapers tell of factory managers begging to fill jobs of computer numerically controlled machine operators - but they can't find them.  Why?  Because we're not training them.  We make the machinery but we don't teach people how to run them in our schools.  We need to fix this - now!

Let's get to work again, America.  No excuses, no blame.  It's time we get off our duffs and get to work - just as our forefathers did when they built this great country.  Hold ourselves accountable and be responsible for our education and our training, so we're qualified to make things we need, and our fellow man needs from around the world.

We can do this!  Let's just do it!

Global Energy Leadership: Where is it?

The August 23, 2010 issue of Time magazine hosts an advertisement talking about a "Sustainable Transport" Panel held at the Cape Town Global Forum in June 28. The panel of experts consisted of Jeremy Bentham, VP of Royal Dutch Shell, Manfred Bischoff, Chairman of Daimler, Lorenzo Simonelli, CEO of GE Transportation and Trevor Manuel, South Africa Minister of National Planning. The focus of the panel was to discuss alternative energies and how goods will be moved around the world in the face of declining petroleum reserves, i.e. oil. I recommend the full article to you.

A couple of interesting facts:

• Biofuels now comprise 1% of our current fuel supply and will double in the next decade.
• The us of fuel in the US is 300% that of Europe on a per person basis.

Mr. Bischoff made two interesting comments: "Well, we believe that individual mobility is an expression of individual freedom. Everybody is looking to get that in some form. We don't know exactly when, but for sure a natural resource by definition is finite. We have to find alternatives to satisfy the need for individual mobility. So we're looking at electric mobility, both battery and hydrogen, but both are electric drive.

As much as I'm enthusiastic about electric mobility, we have some unresolved issues. If you look at the magic triangle of battery storage, charging and lifetime, we are still far away from having a battery car as the ultimate solution. I think hydrogen may be an intermediate solution."

Here are the two points that raised my eyebrow:

Trevor Manuel: "One of the difficulties that confronts us is short term-ism in government. The reason we emerged from the Copenhagen climate talks last December with a thin agreement was because government leaders are worried about the electoral cycles. Issues like the price of carbon and gasoline that affect voters. The blowout in the Gulf of Mexico says to citizens of the U.S. that there's a problem with the choices we've made. But moving the population along is a big challenge. They don't want to make the hard decisions."

Mr. Bischoff added: "You can't get too far ahead of the customer because you'll lose your customer. We'll do what our customer wants. The customer is influenced by many things, including government regulation. And government leaders are not, as Trevor Manuel pointed out, jumping too far ahead because every four years you have an election. The current generation likes to have nice things and doesn't want to save them for the next generation. So industry alone can't support it. We need collaboration."

What do these four points say to me?

• We have no global energy policy for alternative fuels
• We're squandering fuel in the US at an obscene level - and probably in the rest of the world as well
• We have no leadership in the US or in any other country on energy
• Business needs and is asking for government leadership, and in a somewhat cowardly way, and are saying that they're simply providing the goods that the customer wants - fancy, gas-guzzling cars to allow us all to express our individuality regardless of the cost or consequence. (We'll talk about business leadership in another blog.)

So, where is the leadership? What are the leaders of the US, England, Europe, Japan, Australia and others saying and doing to provide leadership in this critical area? In my view, absolutely nothing. They blather on in pre-election speeches about the need for an energy policy but they do virtually nothing when in office. Why? Because speaking the truth isn't necessarily what people want to hear. We want to hear our politicians say that we can continue living our lives in complete freedom to do what we want, when we want with no consequences whatsoever. This is pure folly and cowardice.

Leadership requires the intestinal fortitude (i.e. - guts) to say what needs to be said. Did Franklin Roosevelt shrink from his duty when he took the US to war after Pearl Harbor was attacked? Did Harry Truman hide in the corner when given the opportunity to drop an atom bomb on Japan to end World War II in the Pacific? Did John Kennedy shrink from telling the Russians to immediately remove their missiles from Cuba? Each of those actions had clear consequences. Tens of thousands of US forces and many innocents died in WWII in the Pacific, and the US spent billions on the war. The consequences of dropping the bombs on Hiroshima and Nagasaki continue today but most all now agree it was the right thing to do - with the prayer that it never happens again. And, Kennedy drove a stake in the ground that the US would not be threatened in our own back yard by another power. His actions could have started a nuclear war, but it didn't. These were acts of genuine leadership when it mattered most.

The ability of future generations to sustain themselves in food, clothing, shelter and national defense is on the line when it comes to energy. We need leadership on this issue and we need it now.

We need to hear our president say: "Fellow citizens, we have a crisis before us. Within the next thirty to forty years or less, we run out of all oil, coal, natural gas and uranium. These "natural resources" are not limitless. There is only so much oil in the ground and we're using it at an incredible and increasing rate. The same is true for coal, natural gas and uranium. If we don't make serious changes to how we're living our lives and running our economies, our children, grand children and all future generations will face challenges they may not be able to handle.

As of now, we don't have enough alternative energy to replace those lost natural resources. Just as we committed billions of dollars to place a man on the moon, we are going to do the same to fund collaborative research on finding new, cost-efficient fuel sources for future generations. At the same time, I am issuing an executive order that ALL government agencies - including the military - are to reduce their fuel usage by 5% per year for the rest of my administration and beyond - until we find new, alternative energy sources. If we are to have a sustainable economy and sustainable society, we have no choice.

And, I'm asking you to do the same. I'm asking you to start driving only when you need to. Form car pools and consolidate your errands. Turn out lights at home when you're not using them. Turn up your thermostats in the summer and down in the winter. I don't need to buy a new sweater to stay warm in the winter; I have plenty in the closet. Everything we buy and every place we go uses energy.

I'm asking each of you to go to www.DOE.gov to find a detailed list of things you can do right now to save energy in your home and business. And, when you're done reading the website, write down what you can start doing immediately and then turn off your computer if you're done. It uses energy, too.

In the coming weeks, I will be meeting with leaders in the energy field, business, government agencies, university leaders, our military and fellow heads of state from around the world. No one person or group of people can solve this enormous challenge by themselves. It will take commitment on a global level like we've never had before. But, I believe we can address and successfully meet this challenge. In my view, we have no choice. The future of our civilization, as we know it, is at stake. We are making energy and alternative energy the focus of this administration for the remainder of our time in office.

You may ask: what changes are YOU going to make, Mr. President? We're doing the same at the White House. I've ordered that all lights be turned out when no one is in the room and that thermostats be reset. We're taking our vacations at a lovely spot that you, the taxpayer, provided to us: Camp David. It's close to the White House and a beautiful spot to rest and relax. I'm going to be traveling less and asking that our US Ambassadors hold more meetings on my behalf around the world. It will cut down on the enormous amount of fuel that Air Force One uses. The Vice President is doing the same. We have plenty of work to do here at home. Plus, we're using video conferencing more. I don't have to be face-to-face with someone for every meeting. If it is important, I will be there in person."

THIS is the leadership we need from Washington, London, Paris, Tokyo, Moscow, Brussels and every capitol around the world. If you agree with me, let your leaders know - wherever you live. And, think about the changes YOU need to make in your life. It is, after all, our future and the future of our children that we're talking about. If you don't agree with me, please tell me why.

The Law and Civil Society

When we read reports of people breaking the law, getting caught and going to jail (sometimes), we feel safe and secure knowing there are law enforcement personnel and a judicial system in this that protects us. We occasionally relish reading about a top executive or regulatory official who abused their position, stole millions of dollars, got caught and "got what was coming to them". David beats Goliath - again. So, why don't we obey traffic lights and especially crosswalk signs?

I walked two blocks from my hotel this morning to get breakfast. Part of a street next to my hotel is blocked with construction on the water system and a nice, middle-aged policeman is on duty to regulate traffic. The downtown intersection has crosswalks in both directions with "Walk/Don't Walk" lights on all four corners. The signs start with the green symbol for "Walk" then turn red with the "Don't Walk" symbol and begin a countdown from 10 to 0 to let all know when the light will turn red. The message is pretty clear. When you see red, stop. Green means go.

So, why did the two young women who came upon the intersection start across with one second left on the light? And, then walked against the red light in front of four waiting cars? They barely seemed to notice and didn't care. I watched at least 20 other people do the same thing.

I stopped to ask the policeman who was there at the intersection if that happened all the time. He said, "Yes, all day long. They just walk across all the time whether the light is red or green." I asked him if he ever stopped anyone or wrote them a ticket for Jaywalking? "Yeah, I actually arrested a guy the other day. I told him to stop and he kept going. I put my arm in front of him to stop him since trucks were coming and he brushed me off and kept going. Arrested him for Obstructing a Police Officer. Jaywalking? No, not for a while."

I asked him why he didn't write tickets for Jaywalking. Weren't people getting hit or killed walking against the lights? "Yeah, about 30 people a year are killed here in the city. Maybe I should write a few..." I agreed with him and suggested that maybe he'd be doing those who decide to flaunt the law. He could think of himself as a guardian angel bringing pedestrians a message: "I'm going to give you this warning - a jaywalking ticket - as a reminder to stop being unsafe. You can get killed walking against the light - especially when you have your iPod nibs in your ear, reading your iPhone messages, sipping on your latte paying no attention to what you're doing. I want you to live a few more days."

He would also be stopping people in front of their friends, co-workers, families and strangers. THEY would see someone else getting a ticket and it might be a deterrent to them. Maybe a news reporter would see this happen and write a story for the newspaper and others would read about it. Maybe, just maybe, someone will read this blog and stop for red lights.

If we truly want to be a law-abiding country, and want to be proud of our safe and civil society, we owe it to ourselves to obey the law - even if it costs us 30 seconds of waiting at a red light. Then you can have an extra 30 seconds to check your iPod messages.

Fine Art In The Toilet?

I checked into the Seattle Sheraton Hotel this afternoon. Some might consider this to be an upscale hotel for a guy who works for a nonprofit, but I got a very good rate and the beds are the best in the hotel industry. Plus, it's central for my meetings. Why is this important?

If you're an art lover, there is an excellent display of Dale Chihuly's glass art in a display case in the lobby. Beautiful, white glass stylized flowers protected behind a glass wall. This is no small display - it's 8' x 10' by 6' deep. I've seen his art in Las Vegas, Salt Lake City, New York and now Seattle. He is an amazing artist.

What really amazed me was what I found in my room. Chihuly published a color photo book in 1995 of many of his various works that were displayed in Nutajarvi, Finland. Apparently the art curator for the Sheraton Seattle purchased one or more of the books, disassembled them, framed the pictures and hung two in my room - and I'd guess many more rooms throughout the hotel. The curator has excellent taste. Well, almost. One is on the wall in bedroom. The other is hanging above the toilet in the bathroom. WHAT? What in the world is this person thinking? First, the bathroom contains a shower and showers emit large amounts of steam that will destroy original art or good prints. Second, let's consider that the artist is world-renowned and his works are commissioned by groups such as the Bellagio, the US Olympic Committee and others. Would you insult your best friend - if they were an artist - by hanging their art above your toilet? I was amazed.

I went downstairs this afternoon and politely asked the nice lady at concierge desk if they could please move the Chihuly print to another location - out of the bathroom. With a wan smile, she said she'd mentioned it to housekeeping. I don't think she will. She took no notes, made no commentary in her computer, and immediately called a limo service to see if they could pick up the Schmedlap family to go to dinner. We'll see what happens tomorrow. I'm not optimistic.

PROLOGUE:

My faith in humanity has been restored.

The phone in my room just rang. It was lady who was at the concierge desk last night when I stopped by and asked about the pictures. She was calling me from home - it is her day off. She said she woke this morning and remembered our conversation and felt bad she hadn't called me back last night. She said they got very busy with people who wanted dinner reservations and she simply forgot. So, she talked with the manager's office this morning and found out the Chihuly prints are actually copies - very good copies - in all the guest rooms. She didn't want me to think she'd forgotten me and wanted to let me know that originals weren't in the bathrooms.

I learned two lessons: copy machines make remarkably good copies of original art today. Customer service is alive and well at the Sheraton Seattle Hotel. Thank you, Ann, for restoring my faith in this very comfortable hotel. And, please accept my apology for not believing you'd follow through. You've made my day.

Internet in the Air - Thanks US Air!

Normally, I'm not a huge fan of US Airways. I fly with them because they're convenient to where I live and they go to many of my destinations. Their flight attendants are generally courteous, polite and helpful. BUT, their seats are SO close together in width and legroom that one feels like the proverbial sardine in a can. However, they've redeemed themselves a bit...

US Air now has internet available on all their Airbus 321 aircraft - for the "nominal" purchase price of $12.95 per flight. Given that cross-country flights are 4+ hours long, being able to instantly connect with coworkers and family through email, instant messaging and Skype is a huge productivity advantage. I can continue to work and be connected with the office for what' s no more than a cross-town taxi ride in Dallas or New York City - or less than half the cost of a taxi from LaGuardia to midtown Manhattan.

Now, if I were sitting in First Class and had enough room to put the laptop in front of me - rather than sit in coach and have to maneuver may laptop to the side to be able to see the screen and type - is another matter. Hopefully some bean counter at the corporate office will finally figure out that we'd happily pay a few extra dollars to have 2-3 more inches between the seats so we can work and rest in some semblance of comfort. Guys, go look at United in their Premiere Economy. I fly there whenever I can and it's great! Copy one of your partners in the Star Alliance. You'll have happy faces flying in YOUR skies.

SAJ

Unpaid Interns: Legal Sweatshop Employees?

Would leading brands and retailers in Europe or the USA allow their overseas suppliers to hire workers and refuse to pay them? Would college licensing directors of our largest colleges and universities allow suppliers of licensed, logo products to be made by unpaid labor? The answer would be a resounding "No!". Yet, as Stephanie Steinberg, a summer intern writing for USA Today points out in an article published today, there are thousands of UNPAID summer interns working for for-profit corporations. Why? Because US law allows companies to not pay them, and there is so much competition for students to have any relevant experience on their resume that they're willing to work for no pay.

"It's frustrating. I know they're not going to pay me because I know there's always somebody who would take this instead of me." Elysia Mann, 18, of Penn State was quoted. As a colleague of mine said, this quote could be attributed to a great many factory workers in Bangladesh, India, Pakistan, China or other countries. The may might not be paid nothing, but it can certainly be low by US or EU standards.

Whenever I've hired an intern, it has been for pay and for a reasonable rate; at least the minimum wage and usually a prevailing rate for someone in that position. Why? Because they're doing real work that has real value for the organization. Because it is the ethical thing to do. So what if the intern is still a student? Does it mean their labor is worth nothing so we pay them nothing? If they're doing work of no value, why have them at all?

The fact is, companies do hire interns to do real work - filing, research, analytics of stacks of data, etc. That work is then passed on to supervisors, managers and others who use the data to make decisions and run the organization. If the work was being done by a paid person in the organization, they certainly would have paid for it - so why not pay an intern.

Another argument that drives my up the wall: They come from very wealthy families and these kids don't need the money! Well, horse feathers! So, if a young man or woman comes from a wealthy family, that means their time is worthless? Hmmm. If the person is poor, their time is worth more? What happened to equal treatment? What happened to blind justice? What happened to US law?

I will concede that IF a student decides to work for a non-profit that really doesn't have a lot of money to pay anyone, and IF the student doesn't need the money, and the work is largely charitable - like working for the Peace Corps for a summer, or working in a soup kitchen at a homeless shelter - then a non-paying internship might make sense. Other than that, everyone deserves to be paid for their time and effort. Especially if that work is making money for someone else.