Oklahoma City’s regional manufacturing industry thriving according to April’s Chamber Forum

The Chamber continued its successful monthly Chamber Forum series with a focus on our manufacturing industry on April 21. This event brought thought leaders together to discuss major initiatives, programs, and current issues that impact Oklahoma City's business climate, economy and community in regard to the manufacturing sector. We thank our Presenting Sponsor Cox Business and Corporate Sponsor ADG, for making this event series possible.

Kevin Barber from Oklahoma Manufacturing Alliance, Tim Frisby from Critical Components, Mark Layton from Nestle PURINA and Jeff Seymour from the Greater Oklahoma City Chamber provided their unique insight and perspective as panelists for the event.

Attendees were introduced to the history of Critical Components and Nestle Purina Petcare. Critical Components specializes in legacy weapon systems and has worked nationwide to produce components for various companies. They began as an oil and gas component manufacturer before expanding into aerospace component production.

“The same machines can make a downhole drilling tool as a landing gear axel, so we thought it was perfect to explore that. We decided to make the investment of time and resources to get our systems in order to do business with the government,” said Tim Frisby from Critical Components. “A lot of companies wait for the work to show up and then do that backend work. We decided to make the investment upfront and that really helped us quite a bit”

Nestle’s 126-year history has been comprised of both human and pet food production. In the 1920s, the Nestle Purina Petcare part of the business began exclusively producing pet products. Today, their primary products here in Oklahoma City include dry dog and cat food, which they distribute across the country as far east as Louisiana and west to New Mexico.

Manufacturing has had a long-standing presence in Oklahoma, and the sector remains strong. Kevin Barber, Manufacturing Extension Agent of Oklahoma Manufacturing Alliance, said, “We are showing somewhere in the neighborhood of five to six thousand manufacturers in Oklahoma on our database.” He claims that number may underestimate the full manufacturing presence in Oklahoma as some companies are not yet involved with the alliance. According to Barber, manufacturers in Oklahoma are working on diversification and continuing to expand. Regardless of location, urban or rural, Oklahoma manufacturers are keeping up with industry leaders and working with high-tech equipment and technology.

According to the Greater OKC Chamber’s Executive Vice President of Economic Development Jeff Seymour, “manufacturing makes up about six percent of our economy…about double the size of the current oil and gas job economy.” In a state that has historically been oil-and-gas-led, the presence of the manufacturing industry is both impressive and promising.

When it comes to workforce, there is no shortage of talent, though many manufacturers compete for the same individuals. Layton claimed the talent pool in Oklahoma is one of the greatest strengths of the manufacturing industry’s success within our state. Despite the extensive presence of talent, he does not ignore the technical expertise demanded by many manufacturing roles. Layton acknowledges it may be a steep learning curve for some, yet he claims, “when we are looking for roles, we have viable candidates coming in.”

Within any industry today, but even more so for one like manufacturing, there comes a question of automation’s impact on the workforce. Many wonder—will jobs be replaced by machines? How will this affect individual livelihoods? In response to this fear, Barber noted, “Automation has taken us a long way...We have been automating all along.”

Technology continues to advance, but automation is not new. From Barber’s perspective, automation provides opportunity for more efficiency and growth. Before the pandemic, Oklahoma had a three percent unemployment rate. With a low unemployment rate, companies should utilize robots and cobots to support their expansion. Automation allows for greater opportunity and helps fight against labor limitations, which would otherwise prohibit growth.

People will always be needed for maintenance and troubleshooting efforts, in addition to other higher-level skills which are not easily replicated through technology. Companies like Nestle help build out training programs with local community colleges to support opportunities for their employees.

The Chamber is committed to developing Oklahoma City’s workforce across all sectors. “The biggest thing for us is relationship-building and relationship-management…to understand companies’ current and future needs so we can aggregate it and communicate it out more broadly,” said Seymour. “From a workforce standpoint, from a Chamber perspective, we really looked at three different categories. One is talent alignment. How can we take the supply side and match it up with the demand side and make sure those partners are working with each other as cleanly as possible? Also, retention of talent. Retaining those folks that are already here and keeping them here in Oklahoma City -- and recruiting new talent [from] outside the market.”

Seymour added “We are seeing some really interesting trends…[there are] a lot of conversations around the supply chain now, particularly coming out of COVID -- onshoring, nearshoring, getting closer to your customer base, more regional supply chains.” New projects around electric vehicles, food products, and other opportunities have arisen as a result of the pandemic. Oklahoma City continues to be a good place to explore these opportunities due to our workforce and our consistent and reliable energy partners who provide competitive rates.

“We’re taking work from other states, simply because the cost of living and cost of production is so low,” said Frisby.

The business community can help reshape the way people perceive the manufacturing industry through education which shows how manufacturing jobs, as Barber says, “can be safe, fun, challenging and lucrative.” Barber encourages manufacturers to collectively develop curriculum that teachers could deliver to primary and secondary school students, informing them about the industry’s opportunities.

Manufacturing is a technical career field, which requires STEM work, beginning at the primary levels of education. As the industry continues to grow and expand in Oklahoma, it may be important to invest in opportunities to market the industry through curriculum in schools.

The future of manufacturing in Oklahoma is bright as new technology increases efficiency, our educational institutions advocate for the work, and opportunities for production continue growing within our state.

Interested in learning more about manufacturing in Oklahoma? Check out this sector spotlight, which originally appeared in the March 2021 edition of The Point.