A Wealth of Wisdom

In his decades in Minnesota manufacturing, Fred Zimmerman worked at IBM, Control Data, and National Computer Systems. He served in engineering, management, and executive positions. A professor emeritus in engineering at the University of St. Thomas, Zimmerman continues to be one of Minnesota manufacturing’s strongest and most vocal supporters.

We recently interviewed Zimmerman for the “Four Questions” feature in the next issue of Enterprise Minnesota® magazine. He offered insight into the value of manufacturing to communities, what’s led to its decline, and steps manufacturers can take to improve operations.

Zimmerman’s time in both industry and education gives him unusual perspectives into manufacturing, which he believes is at the “heart of all the nation’s wealth.” Research included in a book he co-wrote with Dave Beal, a former business editor at the St. Paul Pioneer Press, examined all 3,142 counties in the U.S. The pair found what they termed “Hinterland Hotspots”– counties that didn’t have big cities and weren’t even near an interstate. As long as they had a solid manufacturing base, they were “real pockets of prosperity.” The research also showed that big cities that had lost manufacturing–places like Detroit–which they called “Sliding Goliaths” were much less prosperous.

“At the end of the Second World War, almost all major products of almost any field–appliances or aircraft or cars–were manufactured in the United States,” Zimmerman says. “At that time we had about 35% of our non-farm employment in manufacturing. Now we have maybe nine.”

Zimmerman says the slide in manufacturing is due to increased overhead costs, managers and executives who lack technical backgrounds, and a failure to quickly remove incompetent leaders. But he remains hopeful because some manufacturers are well run, particularly small and medium-sized companies.

“If you look at the smaller manufacturers, they can be quietly sensible and benevolent, and they will hold their employment,” he says. “It isn’t that they don’t ever make across-the-board reductions and that they never have to lay people off, but it’s merit-based and it’s thought about, and it’s reserved for emergencies. We need more thoughtful companies.”

His years in manufacturing taught him the keys to good management. “Get good people and treat them well,” he says. “Successful companies also get their employees involved in the process.”

He adds, “Be innovative, but don’t follow every fad. The companies that seem to do well are those that improve quality at every step.”

The full interview with Zimmerman includes his additional insights on key threats to manufacturing and lessons he’s learned from well-run companies. You can find it in the fall issue of Enterprise Minnesota® magazine, scheduled for publication in late August.

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