Episode 14 - U.S. Manufacturing Today Podcast

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In this episode of US Manufacturing Today, powered by Veryable, host Matt Horine sits down with Lloyd Avram, President of the Georgia Association of Manufacturers (GAM). Lloyd discusses GAM's long history and recent legislative wins that have positioned Georgia as a key player in the manufacturing industry. The conversation covers various topics, including Georgia's role in manufacturing policy, workforce challenges, and the application of new technologies such as AI in manufacturing. Lloyd highlights ongoing initiatives to attract and train skilled workers, and discusses the state's competitive edge in sectors like EVs and battery technology. Tune in to gain insights into how Georgia is shaping the future of American industry.

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Links⁠

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Timestamps

00:00 Introduction to US Manufacturing Today
00:14 Spotlight on Georgia's Manufacturing Growth
00:20 Meet Lloyd Avram: President of GAM
00:57 The Evolution of Georgia Association of Manufacturers
02:56 Current Trends in Georgia Manufacturing
03:29 Recent Legislative Wins and Policy Updates
06:52 Tax Policy and Industrial Investment
08:51 Global Competition and Resiliency
11:34 Debunking Myths: AI and the Future Workforce
14:25 Georgia's Strengths in Emerging Sectors
16:39 Workforce Development Initiatives
23:08 Future Directions for GAM
24:45 Conclusion and How to Get Involved

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Episode Transcript

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Matt Horine: [00:00:00] Welcome back to U.S. Manufacturing today, the podcast powered by Veryable, where we talk with the leaders, innovators, and change makers, shaping the future of American industry, along with providing regular updates on the state of the industry, the changing landscape policy, and more.

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Today we're heading down to Georgia, one of the fastest growing states for manufacturing, investment, and industrial innovation.

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Joining us is Lloyd Avram, president of the Georgia Association of Manufacturers, or GAM. He brings a wide angle view of the issues facing manufacturers today, from policy to workforce to global competition.

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We'll talk about the GM's role, recent legislative wins, how Georgia is attracting world-class manufacturing investment, and talent, and what the rest of the country can learn from it.

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Lloyd, welcome to the show.

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Lloyd Avram: Matt, thanks for having us. Really delighted to be here today.

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Matt Horine: We're excited to have you. I think we can just jump right into it and would love to hear a little bit more about your organization.What's the groundwork for GM's mission and what's the structure and what are you all doing today in Georgia?

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Lloyd Avram: Well, we were founded in 1900 by [00:01:00] manufacturers, four manufacturers for the only association of state that is exclusively dedicated to representing the manufacturing industry here. So we're celebrating 125 years of continuous operation this year, but most importantly, 125 years of continuous advocacy as the voice of the industry in Georgia.So our members expect us to be visible, vocal, and vital as we say, the three Vs. They want us to be seen and heard, discussing the issues of matter, most of them, and making sure that the public, legislative officials, education officials understand who we are, what we're all about, and where we're going.

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Matt Horine: That's a long history, 125 years. I imagine that the role of a state manufacturing association has evolved probably in the last 125 years, but particularly in the most, maybe last 10 years. What's some of the biggest changes that you've seen in your membership and some of the biggest challenges that they've seen?

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Lloyd Avram: I could talk about that for quite some time, Matt, but when you consider the arc of this association over 125 years, we started off as the Georgia Industrial Association and then became the [00:02:00] Cotton Manufacturers Association. Not surprisingly, given the role that Cotton has played in Georgia and the deep South in general, and then we morphed into Textile Manufacturing Association.Then now we represent all manufacturing in Georgia. So I think an answer to your question is found in the history of our naming, where we were somewhat narrow and then became broad by design. Today we represent the entire industry in Georgia, which is, if you put a tape measure on it, it's around 10,000 manufacturing entities.But if you drill into that number, there's about 4,400 that are 10 employees or more. Importantly, the manufacturing industry today includes all 21 sub-sectors as identified by the Internal Revenue Service. A tremendous depth and breadth of the industry today is really reflected in the name of the Georgia Association of Manufacturers, really covering the entire state and all the manufacturing entities that exist here.So I think where we are today is really indicative of how the state has grown and how the industry has flourished in the last number of years. But today we see incredible growth across a number of sectors, and we'll get into [00:03:00] this in more detail I'm sure, but we're still heavily dominated by the textile industry in Georgia.We've got world class flooring manufacturers here, but today we're seeing, certainly it's solar manufacturers in Georgia, and electric vehicle manufacturers in Georgia, and battery technology in Georgia. So much more to discuss, but that's a quick top line.

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Matt Horine: You can really see the pace of change and how things are are playing out, and the policy momentum that you have in the state certainly has attracted our attention and we partnered with you at Veryable and been partners for some time.What's the newest in Georgia Manufacturing policy. Any recent wins? I know you do a lot of advocating. Is there any active legislation and new manufacturers that we should know about?

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Lloyd Avram: Well, on the policy side, we're proud to represent the industry and the state capital. We lobby on behalf of the industry.Lobbying is not a dirty word for us. It's what we do and we make sure that we're representing the industry and its interests with our state elected officials all the way up to the governor. So this past legislative session, so Georgia has a 40 day legislative session, which is a hot run. It's got a [00:04:00] quick beginning, middle, and end, which is nice.It's nice and compact and nice and tight and stays focused. I've worked in some other states where it goes on all year. It's nice to have something that's a little bit more contained, but this past legislative session.

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Our industry association played a critical role along with business in general in supporting the governor's initiative to introduce what's called tort reform into Georgia.Now, there've been attempts in the past to reign in runaway jury ver verdicts, nuclear verdicts, if you will, but this year was considered probably the last best chance in the next decade to get something significant done on tour reform. So we were supportive of the governor's bills in this session, and the good news is that our members stood up and were vocal on our behalf as well.But collectively with the business industry in Georgia and the Chamber of Commerce and our association, we were able to strongly advocate for tort reform. So this means we're gonna have more balanced judiciary in Georgia. We're gonna see a return of insurance companies to Georgia who left the state because of the imbalance that existed.[00:05:00] The judicial system and some of the verdicts that came up were very punitive to insurance companies, but we're gonna see those companies return, which is gonna restore some equity from an insurance perspective, lower insurance rates. But importantly for manufacturers, we're gonna see reduction in premises liability cases and the exposure that manufacturers faced under the existing judicial structure.They're gonna be reined in.

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Long story short. It was a big win for industry. It was a big win for our association. We were recognized by the governor for it. Our members stood up and showed up and spoke on behalf of tour reform in Georgia. We're really proud of what we got done this session. 'cause I'll tell you candidly, we are among the very best days in which to do business.Often heard that we're the number one state which to do business. But the flip side of that is, is that we're among the bottom five judicial hell holes in Georgia. We need to remove ourselves from that bottom list. Tort reform, I think goes a long way to making sure that Georgia's gonna be maybe more mid-pack and certainly competitive with other states like Florida.When it comes to the judiciary, which is an important consideration for manufacturers exposure our industry has faced for many years has been [00:06:00] egregious. I. We're very fortunate to get this bill, these bills passed, I should say, to try to reign that in.

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Matt Horine: That's so important for the business friendly climate that often gets overlooked.People usually talk about investment or site relocations, and it's very surface level, but if you dig a little bit deeper, the real truth to the business friendly climate is what's the exposure on something like this? And I've loved your comment on the 40 days for a legislative session. Not too different.Here in Texas, we let them do a pretty short run as well. One of the things that does come up on industrial investment, you talked about tort reform, some of the reforms needed that just really lay the groundwork, but you engage with the governor and a lot of other local officials to shape the future of industrial investment.What does the tax policy look like or what does, you know, some of those, are there incentives or what's the strategy to go after some of these site relocations or businesses that are looking to make Georgia home?

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Lloyd Avram: We play an active role in tax discussions in the state. We have a council, a tax council inside GAM that's [00:07:00] comprised of manufacturers and tax experts from their respective companies that focus on tax policy in Georgia.So last year we were very active in regards to providing our perspective in regards to tax reform in Georgia. We wanted to preserve and protect the provisions that exist in this state to try to make sure there's a level playing field between Georgia and South Carolina and Florida, and basically the southern states where it's a very competitive tax environment. So we were successful last year in lobbying and advocating to make sure that those tax provisions stay in place, and that was a big win for manufacturers.

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To answer your specifically, we're focused on. Tax issues to make sure that the operating environment in Georgia stays as competitive as possible.Hence, our work on tort reform as well. We stay close to these issues. I mercifully, we're seeing a legislative assembly that's very sensitive to tax issues in Georgia as well. The governor and the assembly have been very successful in reducing tax rates. We're gonna see additional tax reduction in Georgia.There's some chatter about trying to get to zero in the state, which would be ambitious. I'm not sure that's gonna happen, but. You can see that the ball is rolling in the [00:08:00] right direction from a tax perspective. And that's so important because to your question in regards to staying competitive and what is Georgia doing, it's certainly the tax piece of it, but it's also site selection.It's also making land accessible. It's supporting manufacturers with other programs in the state on workforce development. That's being very intentional in terms of economic development design. There's a whole range of things the state's doing. In other states and having returned to Georgia five years ago and comparing what's happening here to elsewhere, it's really remarkable to see so many people on the same page.So intentional in their focus in terms of trying to make the conditions for manufacturing flourish in the state.

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Matt Horine: That's outstanding and I think it probably plays into shifting into a broader view of the manufacturing landscape because that strategy is so important to be able to be adaptive and flexible to the macro environment and what's going on around the world.In the broader view of the US manufacturing landscape and zooming out, how do you see Georgia manufacturers responding to global competition and especially some of the [00:09:00] headwinds that we've seen right now, and there's been a lot of noise around tariffs lately. What are your members saying? And I know it's a multi-part question, but wanted to get that in front of you.

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Lloyd Avram: I'll tell you, Matt, I travel the state with some frequency and talk to manufacturers and visit them where they do business. Not surprisingly, we've got manufacturers in the state here that have been in operation for decades. As a matter of fact, I've got one manufacturer in my association that's been in continuous operation since 1865, another 1, 18 90.The point to that is, is that they're a pretty resilient bunch. They know how to do what they do really well. They're always looking to increase efficiency in their operations. They're always looking to identify new market opportunities and extend their value propositions, so. They're a pretty tough bunch and they've seen a lot of headwinds and challenges before.What are they doing today? They're continuing to do what they do best, which is to operate efficiently and effectively harden their supply chains, install cybersecurity systems, understand how to best apply ai. Really getting ahead of the curve as best they possibly can with that against the backdrop of what's happening nationally and on the [00:10:00] tariff front.They've seen challenges before and here's yet another set. It's important to remember there's no perfect state.

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There's no perfect condition in which to manufacture. That continues on forever and ever without any bumps along the highway. With the fact that we've got a great nucleus of manufacturers in the state that really know how to do business and get through some of the headwinds that we're facing today and into the future.What they're doing in the short term is really looking for predictability. Very anxious to get this tariff situation settled. Hopefully these negotiations come to a close soon. They are generally supportive of the direction that the administration's trying to take because they recognize there've been some fairly predatory tariff practices by other nations, and they're looking to have a more level playing field and more of an opportunity to compete.So this support, but they want it to come to a close and they want predictability as quickly as possible.

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Matt Horine: Something he said there stood out. Just resiliency in manufacturing often go hand in hand. People who make things, they're people who are pragmatic and people who are looking for the best practical outcome.And predictability is a big one. And it's something that I've heard from businesses all [00:11:00] over the country is politics aside or anything else aside, there is a truth to a level. Playing field is something that needs a reset every once in a while, and hopefully that's what we're achieving now. So great to hear that from your members.Along the same lines from your vantage point, and you speak with so many of your members and manufacturers and people probably all across the country, what's really happening in a manufacturing right now that's not making the headlines? We, we get bombarded with news about tariffs or somebody you know is sourcing better from here or abroad.What are some of the things that are below the headlines that are really great success stories or things that stand out to you?

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Lloyd Avram: Part of what I'm focused on today with my association is busting some myths that exist around manufacturing. One one of those myths is that artificial intelligence is going to replace manufacturing workers with robots. AI is certainly capturing a lot of headlines today. It's a very intriguing and captivating topic. There's no question about it, but when you talk to manufacturers, they're deploying and they've been deploying AI for a long time, so it's not like this is just fall out [00:12:00] of the sky. We're discovering what to do with it. We've been on a 10 year run trying to apply artificial intelligence or ways to make most sense, so we're seeing really practical applications of AI for manufacturers that are to the good, for example, using AI to support training. We've got a lot of employees that work in manufacturing today in Georgia.As a matter of fact, 25% of our workforce in Georgia is 55 years of age or older. They're getting set to retire. So we're looking at a bit of a retirement cliff, which is gonna put more pressure on workforce.

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One of the things that we're doing today is applying AI to capture the institutional knowledge of those workers and embed that into systems so we can train the next generation of workers and not lose that knowledge when it walks out the door and retires. So there's a practical, real world application of AI that may not make a lot of headlines or sound as provocative as some of the other things we've heard, but manufacturers applying technologies in ways that make sense and that that are really practical in so many ways. The other thing I'd say, and then the flip side of that too is that we are eliminating and rightfully a lot of those [00:13:00] dark, dirty, dangerous jobs that have existed in this industry for many years now.The jobs are going away, but the people aren't. So I test this everywhere I go. I ask manufacturers, are you applying robotics and automation and the new technologies? Yes. What's happening is to some of these jobs that have been around for a long time, that had been pretty difficult, dirty, dark, dangerous jobs.They're telling me they're going away, and I also asked the question, does that mean that employees are going away? No. I've got more than enough work to do. I need to take those people and retrain them and redeploy them. There's a better day ahead. There's more interesting work to do. It's a win for us. It's a win for the employee. So, point to that. You asked me the question. You know what? What do people need to know? They need to know that. They need to know that there's a better day and there are better opportunities for workers in manufacturing, I would say, than maybe ever before.

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Matt Horine: No, that's great perspective and one that, you know, it is an often proposed myth that something is going to replace something else and overlooking over the past 15 years, at one point it was robots and cobots, and at some point I heard [00:14:00] blockchain in some capacity was going to replace workers or manufacturing workers or any type of worker.I think that the, the upleveling of skill sets that comes with bringing in new machinery and new technology is what keeps the workforce thriving because they're consistently upskilled and consistently learning something new. And most importantly, the productivity is up and we create a. More, more jobs and more open roles and more things that build our economy.Really great perspective. I think this is a really good chance you highlighted some of those myths and some of the successes, and this is a chance to speak specifically to the state and maybe brag on it a little bit, but are there certain sectors or technologies where you think Georgia is punching above its weight and compared to the nation or other states or even internationally?

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Lloyd Avram: I would say we've got an increasing capacity and capability in the EV space for sure, and also in battery technology development of the state. We've got some large manufacturers that are here and this is going to induce the arrival of additional [00:15:00] companies. Some we may not even fully understand how their technologies can be applied yet.What I've discovered is that with the advent and development of EVs and battery technology in the state, there are adjacent sub-industries that are starting up to support those industries as well. I would say that we're very competitive. The southern part of the US is known as the battery belt. I'm sure your listeners have heard that term before, but we're certainly a big part of that belt, so we're very competitive in that space.Food is another area where we're strong and getting stronger, which also maps to national manufacturing. Strength for our industry is that food is a major category that continues to grow in the US while many other sectors regress and offshore. But we're very good in food. We've got a massive poultry industry in Georgia and a tremendously large food industry.So I see growth in those areas as well. But we're also seeing some surprising things as well. And this is one of the things that's interesting about the application of technology and money, but we're seeing, for example, a manufacturing of cooling equipment in Georgia. We're seeing some investments in that space, principally because we have the [00:16:00] arrival of data centers, which are very, they run very hot, they consume a lot of energy, they throw off a lot of heat.How do you cool data centers while we're developing technologies in Georgia, making investments in manufacturing in Georgia to try to find answers to that. This, it just continues to be a fastening industry. You can never predict too much. But to answer your question, there, there, there are some strengths that we have that are getting stronger.There are some new things that are showing up like EVs and whatnot that we've been at for a bit that are gonna get stronger over, over time too. But we're seeing some exciting investments in new spaces as well.

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Matt Horine: It's really exciting with a lot of new technology. The adjacencies are what really drives growth that people can't plan or predict, and I'm really glad you got the chance to highlight that.Let's shift a little bit because we touched on something earlier and talk about talent in the future of the workforce in Georgia, which I'm sure the association is heavily involved with. What is the GM doing to help manufacturers find and train skilled workers, or helping to develop or lay the groundwork for more labor access for Georgians and for manufacturers that choose to make Georgia home?

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Lloyd Avram: Not surprisingly, [00:17:00] workforce is the single largest issue facing manufacturers in Georgia today. It's the single biggest issue facing manufacturers across the entire country. We need more workers. We need more skilled workers. There's a transition taking place between blue collar jobs and what we call new collar jobs where as I mentioned before, the advent of artificial intelligence and automation and other technologies requires new skill sets and new opportunities to train.So we not only need more people, but we need more people with different skills. So this is a significant challenge facing our industry, about 435,000 employees in manufacturing employees in Georgia today. As I mentioned earlier, roughly a quarter of those workers are 55 and over. So when you take a look at those dynamics, this is an issue we have to get on.So what are we doing about it? We're we are all about identifying issues and finding immediate solutions. So in 2023, we ran our first statewide workforce needs assessment. And the data that we got back led us to believe that we need to get on the identification of fast track [00:18:00] training programs for manufacturers in Georgia.We've been focused on creating entry-level production, mechanical and electrical systems, robotics and welding programs through our technical college system in Georgia. Programs that might have existed and needed modification never existed before. And working to put those programs together and get interested, paring, interested workers to go into those programs and become capable as quickly as possible at an entry level.So they can get in the workforce. So we've done a number of pilots in those areas. Those pilots have proven, very successful manufacturers have asked us to do more in that space. There's one example of a identified need and getting busy to solve that and address that need as quickly as possible to try to get more of those entry level skills into our industry as quickly as possible.That's one thing we're proud of.

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We're also running some other pilots across the state too, looking at trying to find daycare solutions for workers that are involved in non-traditional work hours. People that show up at midnight and work till eight o'clock in the morning, but have children. So we've been doing some pilot projects to identify new ways of providing daycare for people that need to drop their children off late into the [00:19:00] evening.They get off their shift in the morning to pick up their kids and go back home again. These are real world challenges. We're doing some work in that space as well. And then the final thing I'll mention is that we're really excited about rolling out a new initiative called Manufacturing Georgia, which is a multimedia platform designed to create an exchange between manufacturers.Prospective workers.

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Here's an example of how this works. If you're a high school student and you're graduating, but you've got no design to go to a four year degree program or to go to technical college, you're not sure what to do next. You could put your profile into manufacturing Georgia, and then a manufacturer puts their profile in as well, and we try to create a relationship between the two of you.I might have some interest in welding. Guess what? A b, C manufacturer needs welders. Here's how you train for it. Here's what the career progression looks like, and here's what it pays, and here's what the benefits look like. The intent behind manufacturing Georgia is to try to induce interest in manufacturing and go after non-traditional pockets of the workforce, like high school students, previously incarcerated people, [00:20:00] women who are underrepresented manufacturing today.We're really trying to create a marketplace and a relationship place, if you will, between prospective workers and manufacturers.

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Matt Horine: Now, that sounds like an incredible program, and you touched on so many things there. Real world challenges often prohibit people from participating in what they may be fully interested in or.Better yet, what they may not even know is out there In terms of opportunity, and it's something we talk about at Veryable all the time, the access to those types of opportunities and for businesses, the access to a labor force that may have otherwise been sidelined. It may have been people who were not willingly in the labor force or were trying to do something different or they couldn't balance.Maybe school and work or maybe family life and work, but being able to segment that and build it in a way that gives them more access. It sounds like a really exciting initiative and one that does not take the traditional path. I think people in the past have not really funneled manufacturing into this brand new population.You talked about the percentage of folks that are gonna be retiring soon. How do you get access to that fast and that's. For [00:21:00] manufacturers fast solutions and coming up with something quick is the only way to go. People who sit out too long tend to lose out, so that's a great new initiative and we'll be excited to see how that rolls out.I think manufacturers today in general are probably more hands-on in shaping the workforce programs than maybe they were even a decade ago, and it seems like this was probably got great interest from the companies that are part of your association. Are you seeing the groundswell of high schools in the education environment take part in it too?That's a big component of this.

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Lloyd Avram: It is. Groundswell might be a little bit strong. Definitely seeing interest for sure. And I think more awareness and understandings, and there's surveys that bear this out, but there's a rethinking of manufacturing careers among young people today. For a long time. In this country in particular, we've been focused on four year degree granting institutions.You need to go after high school. But given the cost of those programs and given some of the complexities in the work world today for four year degree graduates, I. Getting into [00:22:00] manufacturing programs, through technical colleges and whatnot, and coming out and being able to go to work right away within, say, two years.Being able to make significant salaries, high five figures, low six figures, which is a reality in Georgia today with benefits and training and whatnot. It's very compelling. So we are seeing, I think manufacturers increasingly understand that. They need to do more to promote these opportunities, but importantly, we're seeing the public in general, becoming more aware. Of the opportunities and I think the fact that some of the stigma associated with manufacturing that existed for so long is going away recasting this, this industry in a new light, shaping a conversation around the modern image of manufacturing is really important to helping to continue to try to stimulate interest in working in this dynamic industry.

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Matt Horine: That reflects a lot of the sentiment that I've heard from other guests and from companies and institutions around the country. Is that there is a level of excitement for the potential of what manufacturing is and stepping away from that old school, thinking of it just [00:23:00] being on an assembly line or doing something.It's so technical now. There's so many opportunities for people who want to break into the industry at multiple different levels. What's next for the GAM and 2025 and beyond? You talked about that pilot program. You talked about some of the success of this legislative session. What's, what's up and coming and what's next for you and your team Lloyd?

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Lloyd Avram: Matt, we're really focused on making sure we're delivering optimal value for our members. We've got small, medium, and large manufacturers across the state that are part of our association. The members that comprise GM today represent about half the state's workforce, so we really feel like we've got a great nucleus of manufacturers in the state that we continue to do work with.One of the major things we're focused on is continuing to develop the advocacy agenda for this industry. I go across the state talking to manufacturers and encouraging them to participate as leaders in our association so their voices can be heard. Once we know what we need to have as manufacturers and what we understand the agenda to be, to make sure that our industry can be profitable and successful, the [00:24:00] long term, the better off we're to communicate that and make sure that our elected officials understand what is necessary for manufacturing to be successful for years to come.So making sure manufacturers are intentionally focused on leadership and advocacy and telling their stories in the state is really our mission today. I'm trying to get more and more manufacturers off the sidelines and into the game, if you will. I'm trying to encourage them to understand that, look, you're expert at managing your operations behind the front door.It's what's outside the front door that we need to think about now. And that's where my association can be particularly helpful in trying to make sure that we're getting those manufacturers to, to join us, be part of what we're doing, raise their voices, get engaged, and make sure we keep a good thing going in Georgia for the long term.It doesn't happen by accident. We have to be very intentional managing our future.

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Matt Horine: How can manufacturers in Georgia get involved? Specifically if you had a new manufacturing company show up and how can they get involved with your association if there, you sound like you have a broad membership base, but where can they go to find out more about you and your organization?

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Lloyd Avram: Just simply reach out to us on our [00:25:00] website or get in touch with us directly through email or a phone call. Happy to talk to anybody about joining our industry. If you manufacture in Georgia, you should be a member of GAM. I'm shameless about promoting that. And I'd also love to come and visit you and see what you do and where you operate. I've been in manufacturing my entire career. I took this job because I wanted to continue to support the manufacturing industry. I'm happy to come and visit you where you work and see what you do and understand more about your operations and encourage you to become part of the voice of this industry.It's really critical, as I mentioned. For manufacturers to see there's a new day and that new day means stepping out of the shadows and being visible, vocal and vital, along with the association and promoting what this industry's all about.

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Matt Horine: Great insight and really exciting to hear about what's going on in Georgia. Lloyd, we really appreciate you coming on the show today and hope you enjoyed it,

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Lloyd Avram: Matt, my pleasure. Thank you for having us.

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Matt Horine: To stay ahead of the curve and to help plan your strategy, please check out our [00:26:00] website at www.veryableops.com and under the resources section titled Trump 2.0, where you can see the framework around upcoming policies and how it will impact you and your business. If you're on socials, give us a follow on LinkedIn, X, formerly Twitter, and Instagram. And if you're enjoying the podcast, please feel free to follow the show on Apple Podcasts, Spotify, or YouTube, and leave us a rating and don't forget to subscribe. Thank you again for joining us and learning more about how you can make your way.

Episode #14: Winning in Georgia Manufacturing: Insights from GAM President Lloyd Avram

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Timestamps

Episode Transcript