News

Dr. Ethan Karp 
Akron Press Club – May 6, 2025

If you missed the Akron Press Club’s May 6 event, we invite you to read the full remarks delivered by Dr. Ethan Karp, President and CEO of MAGNET. In a compelling address, Dr. Karp explores how Akron’s legacy of reinvention mirrors the transformation happening in manufacturing across America—underscoring the grit, adaptability, and innovation that define our region.

As MAGNET president and CEO, Dr. Ethan Karp has helped manufacturing companies grow through technology, innovation and talent. He is a frequent national media commentator on the future of manufacturing in America, particularly through his regular column on Forbes.com. Before joining MAGNET in 2013, he worked with Fortune 500 companies at McKinsey & Co. Karp received undergraduate degrees in biochemistry and physics from Miami University and a Ph.D. in chemical biology from Harvard University. He currently resides in Cleveland with his wife and three daughters.

Here is the text of his speech to the Akron Press Club.

Greetings. It’s an honor to be here today.

If you want to understand the future of American manufacturing, look at the history of Akron. This city has always known how to reinvent itself.

Before it was the Rubber Capital of the World, it was the sewer pipe capital. Before that, it made the tiles for New York’s original subway system. In the 1800s, it made America’s first mass-produced toys and had the largest toy company in the country.

And then came rubber. In the 1920s, Akron didn’t just make tires – it dominated them. Autos belonged to Detroit. Tires belonged to Akron. By 1951, Goodyear became the first rubber company to hit $1 billion in sales—with Akron as its beating heart.

And when the world moved on from rubber, Akron moved with it. Today, it’s the polymer center of America and home to the world’s leading university for polymer science. Once again, it’s on the cutting edge of manufacturing.

Akron never stands still. It adapts. It reinvents. It leads.

And that story – of grit, change, and reinvention – is the story of manufacturing in America.

But reinvention isn’t easy. It raises big questions for manufacturing about who we are, where we’re headed, and what gets left behind.

At MAGNET, I get asked one question more than any other: “Is manufacturing OK?”

I get it. It’s a fair question. Because the last few years have been a wild ride.

We’ve been hit with a global pandemic, a historic labor shortage and now a trade war that touches every corner of our supply chain.

And yet – when I say “yes, manufacturing is OK,” I mean it. Because I see what’s possible in places like Akron.

Let’s rewind.

COVID flipped everything upside down. But in the chaos, Ohio manufacturers stepped up, pivoting overnight to produce 50 million pieces of PPE. We kept people safe. We kept the lights on. And we helped this country reopen.

Then, as demand exploded, our factories surged in 2021, hitting peak production not seen in 40 years.

And then…the rollercoaster dipped.  Global supply chains buckled. Orders stalled. Materials vanished. 

And just when we needed people the most, they left the workforce in record numbers. In August 2021 alone, 4.3 million Americans quit their jobs.

In Northeast Ohio, 10,000 manufacturing jobs sat unfilled, and still do today.

And yet, against the odds, manufacturing output didn’t just recover. It grew. We made more than ever before.

Then came war. And more disruption.

Each twist and turn exposed just how vulnerable offshore manufacturing really is.

That’s when we realized survival isn’t enough. We needed a new strategy. A smarter one. A stronger one.

So, a few years ago, MAGNET brought together hundreds of CEOs, educators and civic leaders across Northeast Ohio to create the “Blueprint for the Future of Manufacturing.”

A bold, regional roadmap focused on four pillars:

• Talent
• Technology
• Innovation
• Leadership

And it’s working.

Over the last three years, we’ve been steadily advancing that blueprint.

We’ve created 10,000 new advanced manufacturing jobs. We’ve laid the groundwork for a vibrant innovation ecosystem with millions in new investment. We’ve rapidly expanded the region’s advanced technology capabilities by 80%.

So, to answer that question again, “Is manufacturing OK?” YES, IT IS!

Here in the heartland of manufacturing, we’re in the midst of a challenging, messy, but incredibly powerful transformation from the rust belt to the technology belt.

Through every crash and comeback, manufacturing hasn’t just survived, it’s powered us forward.

In Northeast Ohio, 270,000 people work in manufacturing. But the impact doesn’t stop there. Each of those jobs supports four more. That’s over a million lives touched – a families fed, mortgages paid, futures built.

And Akron punches above its weight. Just 10% of the region’s manufacturing jobs are here, but they deliver more economic impact than any other sector. Half of Akron’s economy runs on manufacturing.

If Northeast Ohio’s manufacturing output were its own nation, it would outrank the entire economies of Hungary and Ukraine. That isn’t just legacy. That’s leverage.

But sadly, there’s always a but….

Here’s the reality check.

The funny thing about living in this technology era is that it seems like the more technology we have, the more we use, the more binary our thinking becomes.  And the state of manufacturing is definitely not binary.

Two opposing things are true at the same time.

Manufacturing is great.

And it’s also not great enough.

We’ve made amazing progress in smart manufacturing – but immense challenges remain.

We made a giant leap forward in Industry 4.0 technologies in the last three years but that’s tempered by the fact that we started from an incredibly low adoption rate.

Even with an 80% increase – 72% of manufacturers in Northeast Ohio are still not using any Industry 4.0 technologies on the shop floor.

We’ve created 10,000 new jobs in the past three years, but our industry still employs far fewer people than it did 50 years ago. Seven out of 10 people who would have been working in manufacturing in the ’70s are no longer working today.

However, manufacturing is growing, and we have never made as much stuff as we make today. But we’re still not growing fast enough to catch China.

Manufacturing start-ups have more funding available here than ever before, more support than ever from innovation accelerators like Bounce, but still 70% of our manufacturers tell us that innovation is not one of their top priorities.

To state the blindingly obvious, that’s a big problem. If we don’t innovate, we die.

These challenges are very real. And the only way we can overcome them is together. That’s why we created a shared vision in the Blueprint to rally the region together around one goal: A stronger, smarter manufacturing future. It’s also why we need more conversations like this one.

More partnerships like the one between the University of Akron and the Greater Akron Chamber around polymers. And more bold, coordinated strategies to grow and keep high-wage manufacturing jobs right here.

We need this because we know that when manufacturing thrives, our country thrives.

This industry has the single highest multiplier effect of any sector. In America, manufacturing growth is economic growth.

Of course, there’s still a lot of uncertainty. Tariffs, trade wars, supply chain shocks –they’re rattling manufacturing and the broader economy.

And let’s be honest: Most consumers haven’t even felt the impact yet. But it’s coming.

Some believe this will spark slow, steady growth in U.S. manufacturing. Others think we’re on the verge of a new golden age, finally breaking free from the boom-and-bust cycle.

Truth is, no one has a crystal ball. So, we have to prepare for both the climb and the next drop. This isn’t just a moment. It’s a crossroads.

The choices we make right now – how we invest, how we train, how we build – a will shape the next generation of American manufacturing.

This is our opportunity to lead. Because the future isn’t waiting. It’s already taking shape.

And it’s being driven by four powerful forces.

Let’s break them down.

• Trend #1: Workforce challenges are here to stay. 
   

This certainly won’t come as a surprise to anyone in this room.

In Northeast Ohio alone, we have 20,000 vacant manufacturing jobs and 10,000 of them are perennially open. The average annual manufacturing salary in Akron is $68,000 per year and there are over 2,000 job openings right here, right now. Jobs that we simply can’t find people to fill.

Plus, the Silver Tsunami is officially here – a 10,000 Baby Boomers retire nationally every day. There are now 0.75 people available in the U.S. for every open job!

Now the talent gap is going to fluctuate. It’s shrunk slightly in Northeast Ohio and nationwide recently. But still, it’s here to stay.

Managing the gap is now just another thing manufacturers have to continually manage, like productivity, quality and safety.

In Akron, the highest demand now – and the foreseeable future – is for first-level technical roles: the people who fix and maintain the machines and robots that keep factories running.

So, what do we need to do to ensure we have enough workers to grow?

Probably a million things, but I’m going to focus on three of them today.

Number one – invest heavily in the next generation.

There’s enormous opportunity in manufacturing. But far too many kids don’t see it as a career of opportunity. It’s not even on their radar. And their parents see it as the dark, dirty manufacturing of old.

We must change this. Show them the great hi-tech careers we offer. Tech skills are the new trade skills, and we need to get the next generation excited about that.

Two years ago, my nonprofit opened a new headquarters that we describe as a “Disneyland of manufacturing” where kids can see, touch and feel. In the past year and a half, we’ve toured over 7,000 students through our manufacturing experience. We’ve also reached another 5,000 students in schools—many right here in Akron.

Akron City Schools were ahead of the curve, embedding career exploration into every school years ago. And Akron’s manufacturers go all in every year for Manufacturing Day, opening their doors to give students a real look inside.

We need more of that everywhere.

Even at the college level, awareness is low. I often speak to business and entrepreneurship students at local universities. I’ll ask: How many manufacturers do you think are in our region? Hands go up – 20, maybe 50. A bold guess might be 200. The real answer? Nearly 14,000 manufacturers across Northeast Ohio. More than 2,000 of them right here in Akron.

This gap in awareness is one of our biggest barriers – and one we can absolutely fix. And must!

The second thing we need to do is attract underrepresented and underserved communities.

Manufacturing is 80% white and 70% male. Our factories need to look more like our communities or else we’re leaving talent on the table.

That means actively recruiting and training people of color, women, people with disabilities, veterans and people returning from the criminal justice system. Last year, MAGNET helped get 1,600 new people into manufacturing careers—many of them women and people of color. This was done by fixing broken workforce systems and removing systemic barriers.

This is messy, difficult work that we have to do together.

One of Northeast Ohio’s biggest success stories is Sector Partnerships.

In Akron, that’s ConxusNEO run by the Greater Akron Chamber, where I’m proud to serve on the board. These are groups where manufacturers, nonprofits and community groups join together to create workforce programs that actually work.

In the last two years, one of these partnerships alone helped 1,500 people get into manufacturing, closing their local talent gap by 50%. Something no one else in the region has been able to achieve.

And they did it by linking training to local government funding directly to the manufacturers’ factory floors.

And finally, the third thing we need to do is make manufacturing a great place to work.

In 2024 research showed an astonishing seven out of 10 employees were still quiet quitting – showing up at work and doing the absolute bare minimum. In this toxic workforce environment, all manufacturers have to raise the game in employee retention, workplace culture, flexibility, upskilling and recruitment.

Wages also need to be more competitive. And that’s happening. Pay for entry level, low-skill manufacturing jobs in Northeast Ohio went up 16% over two years, pay for entry level mid-skill roles increased 21%.

There’s also been a serious focus on improving workplace culture. For example, 70% more manufacturing companies are now showing up on our region’s best places to work lists compared to 2021.

Companies that make employees feel valued, engaged, and part of something bigger are the ones who will win the never-ending war for manufacturing talent.

• And now, on to trend #2: Technology is transforming the way we make things.

Smart manufacturing in the U.S. is projected to become a $146 billion industry by 2030. It includes technologies like collaborative robots, real-time data and predictive systems that keep machines running before they break. Also known as Industry 4.0, it’s the single biggest opportunity we have to boost competitiveness, cut costs, and unlock growth.

Remember that stat from earlier – in Northeast Ohio only 28% of manufacturers are actually using Industry 4.0.

Every day we fall farther behind.

Because if you contrast that to China, in one year, China installed more manufacturing robots than the rest of the world combined. Let that sink in. In one year, China installed more robots than the rest of the world combined.

We are in a high-tech arms race and if we don’t catch up, we will lose everything. Standing still is not an option. You’re either leaping ahead or falling behind. That means most manufacturers need to double or even triple current investments in advanced technology.

We also need to spark more innovation across the board.

Small manufacturers are at the biggest disadvantage, and they make up 99% of the sector in Northeast Ohio. In Akron alone, nearly 2,000 manufacturers have fewer than 50 employees. Only about 150 are larger than that—and just 11 have more than 500 employees locally. We need new ways to help these small companies adopt advanced tech: ways to test, learn, and access the capital to invest.

This transformation won’t happen all at once, but it must happen company by company. It’s time to fast-track Industry 4.0. And make sure to take employees on the journey.

As we saw in last year’s dockworkers’ strike, which in part was a pushback to new automation on the docks—technology transformation can feel threatening and scary.

The truth is robots won’t replace humans. We’re so strapped for talent, robots help keep our production lines going. They do the “dark, dirty, dangerous and repetitive work” so humans can do more creative and rewarding work. Training is critical to help people transition to higher-tech roles managing advanced machines and systems.

And finally, we must make sure cybersecurity is a top priority. As we digitize our factories, our risk skyrockets.

I’ve heard horror stories. One company was completely shut down for three weeks after their outsourced IT provider was hit with ransomware. In this race, we can’t afford to be the slowest gazelle.

• Next up, trend #3: Sustainability is driving innovation.

When I bring up sustainability, some friends roll their eyes. “Manufacturers don’t care about the environment.” The truth? Manufacturers care just as much as anyone else. But they also have to stay competitive, especially against low-cost overseas rivals.

A sustainable company that can’t stay in business isn’t helping anyone. That’s why there has to be a business case behind every green move.

Fortunately, there is. In fact, a huge part of the future of American manufacturing is directly tied to sustainability – especially here in Akron and Northeast Ohio, where we’re plugged into the $95 billion electric vehicle market.

And while the EV pendulum keeps swinging, there’s no question: more change is coming. One of President Trump’s first acts in office was to revoke President Biden’s 50% EV target and $7,500 EV consumer tax credit.

Depending on how things shake down, this could stall the transition to EVs in the short term and hurt some EV makers. But politics aside, EVs are still a good long-term bet for manufacturers, no matter when we get to mass adoption.

The trick will be for manufacturers who make parts for combustion engine vehicles will be to get prepared for the transition as early as possible. Electric vehicles still need steering wheels. They still need dashboards and control panels.

But for every job that remains, there will be several more that won’t. EVs don’t need catalytic converters or exhaust systems or engines or transmissions.

Billions of dollars in manufacturing will disappear. But there’s billons more in opportunities for manufacturers who think ahead and invest early.

Injection molders, for instance, should be looking at making the thick plastic boxes that form the outside of EV batteries. Cable and connection makers should be talking to the Teslas and GMs of the world to understand the wiring needs of EVs. Batteries are big business –there’s a reason states are fighting to land factories.

And there is opportunity throughout the EV ecosystem. Even bigger than making the cars is creating and building the infrastructure to electrify the country. Our grid and distribution networks are pitifully small to handle even a fraction of the charging needs of a truly EV America.

The manufacturers making a move today are ones who will not only survive, but flourish, in a fully electric future.

Beyond EVs, we’re seeing a wide range of approaches to sustainability. Manufacturers for a long time considered sustainability a cost center. Today, it’s an opportunity.

In fact, when we surveyed manufacturers in Northeast Ohio, we found that sustainability is the single greatest driver of innovation, changing both what manufacturers make and how they make it. 

Some manufacturers are reshaping their supply chains – using more recycled materials or sourcing closer to home. That’s exactly what Akron’s polymer cluster is doing in the plastics industry: building a more sustainable, regional ecosystem.

There’s massive opportunity here to reach new markets, carve out more profitability, and drive growth.

• And finally, trend #4: Stateside manufacturing resilience is a priority again.

Pandemic, war and geopolitical upheaval have shown us the glaring weaknesses in our supply chains and the short-sightedness of our over-reliance on China. Paralyzing and dangerous shortages in semiconductors, cars, medicine, baby formula and raw materials have driven a renewed focus on creating stateside resilience.

The U.S government has made unprecedented investments to bring home critical manufacturing to the U.S. and shore up   supply chain weaknesses.

For example, either through the $280 billion CHIPS Act or Trump’s planned $500 billion investment in AI infrastructure – the U.S. is investing heavily in microchips and microchip production.

No one wants to see the computer chip shortages we experienced after the pandemic that halted everything from auto to iPhone manufacturing. We need to break the stranglehold China has on making semiconductors and recent investments are already having an impact.

Last year alone, the U.S. saw more construction for computer and electronics manufacturing, than it did in the last 20 years combined!

Defense is the other area where we have critical weaknesses the government is investing in. 

Cast and forged products are used to make everything from weapons to jets and they are critical to national defense. The U.S. has a long, proud history of this type of manufacturing – we’re great at it.

But between 1984 and 2018, we lost 1,600 foundries and over 4,400 metal casting facilities. And a lot of that went to China. China now produces more tonnage than the next seven countries, and over four times as much as the U.S.

As the U.S. government actively tries to rebuild stateside defense manufacturing and a robust semiconductor sector, this presents a massive opportunity for manufacturers.

We’re also seeing almost every large manufacturer trying to make their supply chains more resilient, stable and safe. This means big OEMs are looking to reduce dependence on foreign suppliers and “buy American.”

Our research shows that nearly 6 in 10 Americans say they’re willing to pay more for goods made in the U.S. And with tariffs driving up costs, we’re about to find out just how true that really is.

Just like with sustainability, consumer demand will shape manufacturing strategy and the future of our industry.

So, now let’s tackle that elephant in the room.    

Are tariffs good or bad for manufacturing? The answer is there’s no cut and dried answer here. The truth is the impacts are complicated and mixed.

The only thing we know with absolute certainty is that the immediate price of tariffs is turmoil! Tariffs are a massive, complex distraction, forcing every manufacturer to navigate uncertainty and renegotiate supply chains on the fly.

We’ve seen this before. The Chinese tariffs that began in 2018 under the Trump administration –and continued under Biden – had bipartisan support, largely due to China’s trade practices and cybercrime. 

Two years ago, I spoke with executives who refused to visit their factories in China, fearing they’d be “detained” until a business deal was struck. That’s how high the stakes were. Even though these earlier tariffs were narrower in scope, many American companies grew during that period and the resulting consumer price increases didn’t stall the economy.

It’s less clear what Mexican or Canadian tariffs will do. We’ve seen a lot of American companies moving production from China and nearshoring it in Mexico. Plus, we have a long history of production there already.

We know, for example, that some cars parts cross the border a dozen times before an “American-made” car is finished. This is one of the reasons the auto-industry got a rare exemption.

European tariffs, whose trade war we expect to heat up soon, will affect us somewhere between China and Mexico/Canada. We rely on them and they on us, but not nearly as much as those other partners.

Economists and political analysts expect some deals to be struck with Canada and Mexico, while a 10% baseline tariff may remain across the board with certain product exceptions.

Chinese tariffs, meanwhile, are expected to level off around 60%, which many experts say is prohibitively high for sustained imports into the U.S.

So, are we heading into that long-promised golden age of American manufacturing?

I hope so. But the reality is complicated. I hear optimism from some manufacturers. Skepticism from economists. And even indifference – or pushback – from others who don’t want those jobs back at all.

First, it depends on what we mean by “golden age.”

If it means going back to 1970s-era employment levels, that won’t happen. We make just as much today as we did back then – sometimes more – but with fewer people and far more advanced technology.    We’re never going back to four times the jobs we had in the days of low-tech, inefficient factories.

But if we can grow employment by even a few percentage points today? That would be a major win because it would represent billions of dollars flowing into our economy.

Second, not all manufacturing is coming back.

You rarely see clothing that’s made in China anymore. Wages there are now too high for labor-heavy industries, which have already shifted to countries like Vietnam. Those jobs aren’t coming back. Only work that can be automated stands a chance of reshoring.

Third, some companies are already winning.

I know manufacturers who’ve picked up new business as major buyers look to local suppliers. It’s incremental, profitable and growing. More companies are preparing for that shift than have landed the work yet.

Fourth, there are already losers, and not every industry will benefit.

Importers and exporters are being squeezed hardest, watching costs rise fast.

I’ve heard wild stories. One that stuck with me: A local company bid $1.5 million to make custom steel shelving. The buyer passed. They’re still getting it from China for $200,000. Even with the 150% tariffs currently on China! That’s less than the cost of raw materials here.

With massive subsidies, scale and access to materials, China still has cost advantages that even 60% tariffs can’t erase in some sectors.

No matter how you slice it, tariffs will erode margins for U.S. manufacturers. In the short term, companies will try to pass those costs on, raising prices for consumers.

The question is: will consumers keep buying? If not, the entire economy could feel the hit. And judging by the number of U.S.-bound freighters still idling in Chinese ports—we may soon see shortages that echo the early days of COVID.

So, in the short term, it’s mostly pain, but in the long term that’s where the potential upside is.

If manufacturers can survive the turmoil – margin erosion, price hikes, even a potential recession – and if they believe tariffs are here to stay, that’s when we’ll see serious investment: in high-tech, automated facilities here at home and in bringing production back from overseas.

Building a plant is an enormous investment requiring a long ROI – so the longevity of tariffs is the key factor in truly spurring reshoring.

Tariffs added and removed on a whim will do nothing to drive this long-term reshoring. Regardless of how all these tariffs play out and whether they do indeed catalyze investments in stateside manufacturing he fact is we need these investments and in our increasingly fragmented and volatile world. Manufacturers should be making them to protect their futures with or without tariffs.

No matter your politics or your view on tariffs, one thing isn’t up for debate: manufacturing matters. It’s the backbone of our economy, our communities and our national strength.

The conversation isn’t about whether we need it. It’s about how we grow it. That’s why these four trends aren’t just shaping the future of manufacturing, they’re shaping the future of America:

• Workforce
• Technology
• Sustainability
• And Resilience
   

This is our once-in-a-generation chance to transform American manufacturing. We have the talent. We have the tools. We have the tenacity. What we need now is momentum and the courage to keep pushing forward.

Together, we can train the next generation of high-tech talent.

Together, we can rewire our factories for speed, precision, and innovation.

Together, we can make things that haven’t been made here in decades, or ever!    

But we can’t do it alone. It’s going to take bold leadership. And deeper partnerships than ever before. Because the challenges we face today –tariffs, splintered supply chains, global competition, rising costs – are too big for any one company, deal or leader.

The future of manufacturing won’t be built in isolation. It will be built in collaboration.

And the good news is it’s already happening.

We saw it during the pandemic, when manufacturers teamed up to produce 50 million pieces of protective equipment in a matter of weeks.

We’re seeing it now – from billion-dollar defense plants in Columbus, to billions of dollars to help Ohio develop hydrogen as clean energy, to a $100 million dollar investment to help Akron’s polymer industry reimagine plastics for a sustainable future.

These aren’t just partnerships. They’re blueprints for what’s possible.

And nowhere understands reinvention better than Akron.

This city has done it again and again. From sewer pipes to toys, tires to polymers.

Akron is proof that American manufacturing doesn’t just endure, it evolves.

And if Akron can lead the way, so can America.