named a four-time best practice partner by the highly regarded APQC, a globally recognized leader in benchmarking, knowledge management and quality programs. “Consistently, we have been put in the same company with
some of the world’s most well-known innovators, such as 3M and DuPont,” Cardoso said. “Our commitment to innovation is such that even during the depths of the economic downturn, we maintained our investment in product development activities. One of the main reasons we are a net exporter of products to the rest of the world is this commitment to innovation and new product development.”
* See the call out box on the next page for detailed descriptions of some Kennametal innovations.
The Key to the Recovery
[ABOVE] Carlos Cardoso, the Chairman, CEO and President of Kennametal Inc., believes that manufacturers and government must work together to create common-sense regulations that promote job creation and growth.
[ABOVE - RIGHT] Kennametal’s global headquarters are located in Latrobe, Pa., while the manufacturer operates five other sites across the state, employing 1,500 workers in PA.
With the vast amount of jobs dependent upon the U.S. manufac- turing sector, it’s obvious that a healthy and growing manufac- turing sector will equal subsequent job growth and economic expansion across the United States and in Pennsylvania. Sup- porting this assertion is an impact study published in February 2011 by Dr. Edward (Ned) W. Hill entitled “Pennsylvania’s True Commonwealth: State of Manufacturing – Challenges and Opportunities.” In the study, Dr. Hill and his team present a very interesting finding regarding the manufacturing sector’s importance to Pennsylvania’s economy. “An essential measure of importance or centrality to an economy is the size of an industry’s multipliers – meaning, the additional jobs, sales, or income generated from sales in the in- dustry. Manufacturing has the highest multipliers of any other Pennsylvania industry. Every $1 increase in final demand for products manufactured in Pennsylvania leads to a total increase in gross value added by all industries of $2.52. No other industry in the state comes close to rivaling the impact of manufacturing. A $1 million increase in final demand for manufactured products in Pennsylvania results in the creation of 4.2 jobs; 2.9 jobs directly and indirectly in manufacturing and an additional 1.3 jobs through the spending of employees of the manufactur- ers and the employees in their supply chain. Manufacturing’s labor income multiplier effect of $3.60 is more than double that of most other Pennsylvania industry sectors. Agriculture is the state’s only other industry with a labor income multiplier above $2. Manufacturing’s multiplier is so extraordinarily high
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