Food processors promote innovation, productivity, talent pipelining
PORTLAND—New center will help position Oregon industry to compete in the global marketplace:
The Northwest Food Processors Innovation and Productivity Center (IPC), fueled by a $3.4 million investment from the state, is now being launched by the parent organization Northwest Food Processors Association (NWFPA).
The IPC is part of the Oregon Innovation Plan, a $28 million legislative package designed to reinvigorate existing economic sectors and grow new ones. The IPC is serving as a “hub and spoke” clearinghouse of information, technical resources and advisors, linking industry needs to existing private, public, and quasi-governmental providers. The IPC is reaching out to Oregon food plants to optimize productivity, co-create and institutionalize an innovative managerial climate, and continuous improvement. Rick Fisch is the IPC Managing Director. Previously, Rick served as vice president of operations for J.R. Simplot Co. Food Group.
The Situation
IPC has its roots in an ambitious, three-state cluster initiative launched in 2003 by NWFPA and aimed at repositioning the $21 billion Northwest food processing industry. This industry sector employs more than 23,000 workers in Oregon, making it the third largest manufacturing sector employer in the state.
After roughly 50 packing and processing companies were closed or sold in the 1990s and early 2000s, the industry realized it had to depart from business-as-usual, according to Dave Zepponi, NWFPA president.
While processors in the region traditionally competed well against each other, "It was the systems we were competing against at the macro level that were really hammering us," said Zepponi.
The numerous factors impeding the Northwest food processing industry included
- the increased cost of electricity, natural gas and fuel—and their impact on profits
- the shifting of production to overseas facilities
- the difficulty processors had finding skilled workers to operate complex production systems
- the growing stringency of regulations for wastewater disposal and other processes
"These were all things that were eating away, bit by bit, at our competitiveness," Zepponi said.
The Solution is Industry-Driven
A state-wide Oregon coalition of 40 leaders from business, higher education and government released an RFP in March 2006 to “identify top innovation-driven growth opportunities, maximize the state’s competitive advantage and establish Oregon’s niche in the global economy.”
In July 2006, Zepponi and Fisch officially proposed to the Oregon Innovation Council (Oregon InC) the creation of the Innovation Productivity Center for the industry.
In July 2007, one year later, the Cluster Initiative and IPC received a huge boost in the form of a $3.4 million jump-start grant from the Oregon legislature through Oregon InC’s Innovation Plan initiated by Governor Ted Kulongoski.
"We're really trying to shape a 21st Century industry model that somehow leverages all the links of the food processing industry to everyone's mutual benefit," said Glenn Felix IPC productivity advisor.
A high performance audit is one of IPC’s improvement tools to benchmark an organization’s management techniques with that of world class organizations. Included in the audit are strategies, performance measurement, leadership training, and continuous improvement programs.
The IPC staff will co-locate with their parent Northwest Food Processors Association, allowing them to reduce the center's overhead.
Expected Results
Precisely quantifying expected benefits from IPC is a challenge, but credible and conservative estimates are possible. Productivity interventions in particular are expected to yield significant savings in the millions per year, depending on IPC staffing levels.
The future looks brighter for this cluster sector because leadership is industry-driven. Through IPC and along with established public and private partners, food processors are collaborating so that all stakeholders, regardless of location or size, may benefit.
For more information, visit NWFPA on the Web.
