Critical Manufacturing Sector Coordinating Council Value Proposition

1. Critical Manufacturing Sector Coordinating Council Value Proposition

2. “ A substantial change has occurred throughout Government in the way security professionals do business. Information sharing has become more widespread and the Government has made real changes that are necessary to respond to new threats.” - Senate Committee on Homeland Security & Governmental Affairs

3. Critical Infrastructure Sector Partnerships • Protection of the nation's critical infrastructure requires an effective partnership framework that fosters integrated, collaborative engagement and interaction between public- and private-sector partners. • Partnership between the public and private-sectors is essential: • The private-sector owns and operates approximately 85% of the nation's critical infrastructure. • Government agencies have access to critical infrastructure threat information. • Both private-sector and Government agencies control security programs, research and development, and other resources that may be more effective if discussed and shared in a trusted partnership setting.

4. Sector Coordinating Councils (SCC) • Sector Coordinating Councils are made up of a broad-base of private-sector owners, operators, associations, and other entities. • SCCs are self-organized, self-run, and self-governed, with a spokesperson designated by each member company. • SCCs are the principal entity for coordinating with the government on critical infrastructure protection activities and initiatives. • SCCs enable owners and operators to interact on a wide range of sector-specific strategies, policies, activities, and initiatives, and they serve as principal sector policy coordination and planning entities.

5. Sector Coordinating Councils (SCC) The primary functions of an SCC include: • Represent a primary point of entry for Government into the sector for addressing critical infrastructure protection activities and issues. • Serve as a strategic communications and coordination mechanism between critical infrastructure owners, operators, suppliers, and the government during both emergency situations and steady- state operations. • Identify, implement, and support the information-sharing capabilities and mechanisms that are most appropriate for the sector. • Advise on the integration of federal, state, local, and regional planning with private-sector initiatives, through the use of a FACA-exempt advisory council. • Provide input to the Government on sector research and development efforts and requirements.

6. The Critical Manufacturing Sector • The Critical Manufacturing (CM) Sector is crucial to the economic prosperity and continuity of the United States, as products designed, produced, and distributed by U.S. manufacturers make up 13% of the U.S. gross domestic product and directly employ approximately 11.7M of the nation's workforce. • Four industries make up the CM Sector taxonomy: • Primary metal manufacturing • Machinery manufacturing • Electrical equipment, appliance, and component manufacturing • Transportation equipment manufacturing

7. Critical Manufacturing SCC Members • The Critical Manufacturing SCC includes private-sector heavy manufacturing companies and manufacturing firms of any size that comprise U.S. critical infrastructure and/or provide key resources, or that are considered iconic representatives of the U.S. economy. • The Critical Manufacturing SCC is comprised of 53 member companies:

8. Critical Manufacturing SCC Value Proposition • The CM SCC is developing a value proposition to be used to promote the private-sector / Government partnership, and thereby grow the CM SCC to be a more geographically and economically diverse representation of the Nation’s manufacturers. • This enhanced partnership will help the Nation's manufacturers become more resilient and secure against today’s growing threats, both man-made and natural.

9. CM SCC Value Proposition Phases • Phase 1: Survey Critical Manufacturing SCC members to determine key points to include in the value proposition. • Phase 2: Present the value proposition to private-sector and Government leaders to obtain their support. • Phase 3: Develop CM SCC value proposition promotional materials, including: • Flyers for distribution at conferences and meetings • Information for trade publications • A Critical Manufacturing SCC webpage • Talking points for senior leadership speakers • A public service announcement with recorded endorsements from key private-sector and Government leaders

10. Phase 1: Summary of Survey Results • Partnership with the U.S. Government is useful to private-sector owners and operators. • Partnership with the U.S. Government has helped the private-sector save money and avoid costs, especially during crisis situations and through international commerce. • Security organizations within private-sector companies support and internally promote their partnership with the U.S. Government. • Private-sector companies externally promote their partnership with the U.S. Government.

11. Phase 1: Quotations from Survey Results • “(Partnership with the U.S. Government gives us) access to real-world, unbiased information before we can get it via traditional methods; provides a neutral ground for networking and information sharing that goes beyond a "my company first" mentality.” - Todd Brodie, Alexion Pharmaceuticals • “Caterpillar partners with the Government in a variety of initiatives, including SCC, OSCC, and DSAC. Partnering in each of these areas is critical to understand the environment in which we operate around the globe, to understand the Government's planned response to certain situations (which helps us to plan), and to help the Government understand our response.” - Mike LeCrone, Caterpillar • “In the wake of the earthquake, tsunami, and radiation incidents in Japan during 2011, the DHS CM provided information about US Customs procedures for material arriving from Japan. It was our safe source of information during early stages of the incident. We utilized the information to identify and apply resources appropriately.” - Mike LeCrone, Caterpillar • “We pride ourselves in promoting the U.S. Government; it has and will be part of our culture.” - Hakim Eslami, Schneider Electric

12. Phase 2 : Obtain Support for the Value Proposition – CM SCC Next Steps • Identify private-sector and government leaders who would be open to being solicited for an endorsement. • Present the value proposition to private-sector and government leaders to obtain their support. • Share the CM Value Proposition with other Sectors who may wish to create similar outreach materials.

13. Leadership Next Steps • Review the survey results. • Review the suggested quotations of support for the partnership and Value Proposition for your endorsement or provide an original quotation. • Provide a professional photo that can be used in promotional materials for the Value Proposition. • Indicate your willingness to participate in a public service announcement.

14. Next Steps for Other Sectors • Identify a DHS and a private sector champion. • Survey the sector SCC members to determine key points to include in the value proposition. • Present the value proposition to private-sector and Government leaders to obtain their support. • Develop SCC value proposition promotional materials.

15. Phase 3: Develop Value Proposition Promotional Materials • Promotional materials can include: • Flyers for distribution at conferences and meetings • Information for trade publications • A Critical Manufacturing SCC webpage • Talking points for senior leadership speakers • A public service announcement with recorded endorsements from key private-sector and Government leaders • The audience for the promotional materials can include members of: • ASIS International • International Security Management Association (ISMA) • APICS: The Association for Operations Management • National Association of Manufacturers (NAM) • The Conference Board • Manufacturing Extension Partnerships (MEPs) • Chambers of Commerce

16. Backup Slides

17. Survey Results

18. Partnership with the U.S. government is useful to private-sector owners and operators. • Enables access to real-world, unbiased information before we can get it via traditional methods; provides a neutral ground for networking and information sharing that goes beyond a "my company first" mentality. • Provides access to actionable, accurate, and timely threat information from the federal government. • Provides direct access to DHS decision makers. Tools and resources are developed by DHS in concert with private-sector. Real feel of a partnership. • Gives us non-biased security information. • Enables us to exchange information with the government.

19. There is value in partnering with U.S. government organizations such as the CM SCC, OSAC, DSAC and other venues. • Partnering in each of these areas is critical to understand the environment in which we operate around the globe, to understand the government's planned response to certain situations (which helps us to plan), and to help the government understand our response. • We take advantage of venues like the annual DHS C-TPAT conference, which helps us to understand the government's focus on supply chain matters and learn or share best practices. • CM SCC provides useful information about initiatives and threat information. In the wake of the earthquake, tsunami, and radiation incidents in Japan during 2011, the DHS CM provided information about U.S. Customs procedures for material arriving from Japan. It was our safe source of information during early stages of the incident. • Partnering allows us to network with other US-based companies abroad and peer leaders in the manufacturing sector. InfraGard has also been very useful in networking with peers and the FBI. • OSAC has helped connect our team. • Partnership gives us access to valuable tools, especially tabletop exercises.

20. Partnership with the U.S. government has helped private-sector save money and avoid costs, especially during crisis situations and through international commerce. • FAST lanes help save costs. • Information regarding Customs and Border Protection protocols after Fukishima reduced need for research. • In the wake of the earthquake, tsunami, and radiation incidents in Japan during 2011, DHS CM provided information about U.S. Customs procedures for material arriving from Japan. It was our safe source of information during early stages of the incident. We utilized the information to identify and apply resources appropriately. • Information provided regarding the Yemen toner cartridge bomb on the plane at Gatwick (in which our company had product) and security information provided during the Haiti earthquake was helpful.

21. Security organizations within private-sector companies support and internally promote the partnership with the U.S. government. • My company is a big proponent of the public-private partnership, and the security department is seen as a conduit of that relationship. • As an international company we are also involved with C-TPAT, CBP, and the CM SCC. Promoting our partnership with government is highly valued. • Partnering with the government gives our business leadership a level of comfort that we are actively addressing cyber security in a constructive manor. • Our global security regularly informs its internal business partners of its relationships not only with the DHS CM SCC, but also with OSAC, DSAC, and other similar organizations.

22. Private-sector companies externally promote their partnership with the U.S. government. • We pride ourselves in promoting the U.S. government; it has and will be part of our culture.

23. Summary: CM SCC Membership Provides • Information Sharing: Participation with the CM SCC provides knowledge and timely exchange of current information between the U.S. government and other SCC members. • Networking with peer manufacturing companies: CM SCC members are able to share resources, benchmark industry best practices and tools, and strengthen their professional and business relationships. • A true partnership: CM SCC membership enables one-on-one understanding of the government views and initiatives, a venue to directly discuss matters with the government (true “voice of the customer”), access to tools and training, notoriety within the community, and the opportunity to provide input into protecting our country's infrastructure.

24. Background Information

25. Homeland Security Presidential Directive 7 • Homeland Security Presidential Directive 7 (HSPD 7) establishes a national policy for Federal departments and agencies to identify and prioritize critical infrastructure and to protect them from terrorist attacks. • The directive defines relevant terms and delivers 31 policy statements. • These policy statements define what the directive covers and the roles various federal, state, and local agencies will play in carrying it out. • The Directive calls for a plan of action and framework to ensure the national policy is carried out; this plan is called the National Infrastructure Protection Plan (NIPP).

26. National Infrastructure Protection Plan Overview • The National Infrastructure Protection Plan (NIPP) provides a unifying framework that integrates efforts designed to enhance the safety of our nation's critical infrastructure. • The overarching goal of the NIPP is to build a safer, more secure, and more resilient America by preventing, deterring, neutralizing, or mitigating the effects of a terrorist attack or natural disaster, and to strengthen national preparedness, response, and recovery in the event of an emergency. • The NIPP was developed by critical infrastructure partners including federal departments and agencies, state and local government agencies, and private sector entities. • The NIPP integrates the concepts of resilience and protection, and broadens the focus of NIPP-related programs and activities to an all-hazards environment. • DHS oversees NIPP management and implementation. Sector-Specific Plans • The NIPP assigns a federal agency, known as a Sector-Specific Agency, to lead a collaborative process for critical infrastructure protection within the 18 critical infrastructure sectors. • Each Sector-Specific Agency is responsible for developing and implementing a Sector-Specific Plan, which details the application of the NIPP framework to the unique characteristics and conditions of their sector.

27. Critical Manufacturing Sector Taxonomy PRIMARY METAL MANUFACTURING • Iron and Steel Mills and Ferroalloy Manufacturing • Steel Product Manufacturing from Purchased Steel • Alumina and Aluminum Production and Processing • Nonferrous Metal (except Aluminum) Production and Processing MACHINERY MANUFACTURING • Agriculture, Construction, and Mining Machinery Manufacturing • Mining and Oil and Gas Field Machinery Manufacturing • Oil and Gas Field Machinery and Equipment Manufacturing • Industrial Machinery Manufacturing • Commercial and Service Industry Machinery Manufacturing • Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration • Metalworking Machinery Manufacturing • Engine, Turbine, and Power Transmission Equipment ELECTRICAL EQUIPMENT, APPLIANCE, COMPONENT MANUFACTURING • Electric Lighting Equipment Manufacturing • Household Appliance Manufacturing • Electrical Equipment Manufacturing • Other Electrical Equipment and Component Manufacturing TRANSPORTATION EQUIPMENT MANUFACTURING • Motor Vehicle Manufacturing • Motor Vehicle Body and Trailer Manufacturing • Motor Vehicle Parts Manufacturing • Aerospace Product and Parts Manufacturing • Railroad Rolling Stock Manufacturing • Ship and Boat Building • Other Transportation Equipment Manufacturing

28. Value Proposition Promotional Materials Audiences • ASIS International – The preeminent organization for security professionals. Founded in 1955, ASIS is dedicated to increasing the effectiveness and productivity of security professionals by developing educational programs and materials that address broad security interests, such as the ASIS Annual Seminar and Exhibits, as well as specific security topics. • ISMA – Founded in 1983, ISMA is a premier international security association of senior security executives from major business organizations located worldwide. ISMA's mission is to provide and support an international forum of selected security executives whose combined expertise will be utilized in a synergistic manner in developing, organizing, assimilating, and sharing knowledge within security disciplines for the ultimate purpose of enhancing professional and business standards. • APICS – Since 1957, supply chain and operations management professionals have relied on APICS as the global leader and premier source of the body of knowledge in the industry. APICS’ focus includes training, internationally-recognized certifications, and comprehensive educational resources in the areas of production, inventory, materials management, purchasing, logistics, and more. • NAM – The preeminent US manufacturers association and the nation’s largest industrial trade association, representing small and large manufacturers in every industrial sector. NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers create jobs. Consisting of 11,000 manufacturing companies, NAM is a strong force for sensible government policies that will reduce the cost of production and tear down barriers to exports. • The Conference Board - A global, independent business membership and research association working in the public interest. Founded in 1916, the Conference Board conducts research and convenes business leaders in forums large and small, public and private. The Conference Board works within and across four main subject areas – Corporate Leadership; Economies, Markets & Value Creation; High-Performing Organizations; and Human Capital – to create a unique, enterprise-wide perspective that helps business leaders respond today, anticipate tomorrow, and make right strategic decisions every day.

29. Additional Information • HSPD-7: http://www.dhs.gov/homeland-security-presidential-directive-7 • NIPP: http://www.dhs.gov/national-infrastructure-protection-plan • Critical Infrastructure Sector Partnerships: www.dhs.gov/files/partnerships/editorial_0206.shtm • Critical Manufacturing Sector: http://www.dhs.gov/files/programs/gc_1226007062942.shtm • ASIS: http://www.asisonline.org • ISMA: http://isma.com • APICS: http://www.apics.org • NAM: http://www.nam.org • The Conference Board: http://www.conference-board.org