Auto sales in the U.S. soared to levels not seen since the financial crisis.
This is great news for the precision machining industry, as Automotive is the single largest market served by our industry.
U.S. buyers bought some 1.5 million cars in August, resulting in a 17% increase over sales figures one year ago.
Moreover, the sales were spread across most manufacturers –domestic, new domestic, and foreign- and include increases in light trucks, compact cars and, electric vehicles.
The seasonally adjusted production rate for August pushed beyond 16 million units and some analysts believe that rate will be held throughout the remainder of 2013.
While not current, the graph above tempers this good news with a comparison of how far the market still has to grow to pre recession levels.
Flying car photo courtesy Popular Mechanics Story Top 10 Attempts to Build a Flying Car
Compiled from press reports.
Month: September 2013
Part Time Employment in a low paying field does not have to be your destiny. Mortgaging your future to enormous student loan debt that may or may not assure you a job capable of paying off the loans does not have to be your destiny either. Getting skills at a local community college can help you by pass the low paying part time underemployment that most Americans face today.
Last week we wrote about the growing spectre of part time employment displacing full time positions.
Today, University of Maryland Professor Peter Morici says “These days, new college graduates often work at unpaid internships while taking part-time jobs at places like Starbucks to meet minimal living expenses.”
“Since January, 936,000 additional Americans report working part-time, while only 27,000 more say they have obtained full time positions. The shift to part-time workers, partially a reaction to Obama Care health insurance mandates, puts downward pressure on wages and benefits in low paying industries, like retailing and restaurants, and widens income inequality.”
Morici’s point is that this is not a temporary problem- Expectations of permanently slower growth are hardening disturbing changes in the structure of the labor market and social conditions.
Manufacturing provides a respite from these problems for people with skills.
Our PMPA Business Trends Report shows half of our member company respondents scheduling overtime.
Regularly scheduled overtime is a far cry from part time underemployment.
The Economics and Statistics Division of the Department of Commerce just published a report Earnings of New Hires In Manufacturing.
- New hires in manufacturing enjoy an earnings premium relative to other new hires. This premium peaked during the recession but has returned to near its pre-recession average. At the end of 2011, the manufacturing earnings premium for new hires stood at about 38 percent.
- At the end of 2011, the ratio of new hire earnings to incumbent earnings was about 8 percentage points higher in manufacturing than in other industries.
- Over time, the earnings of new hires relative to incumbents have been consistently higher in manufacturing. From 2000 to 2011, the earnings of new hires were about 70 percent of incumbents’ earnings in manufacturing, compared to an average of 60 percent in other industries.
- Since the recession began, real average earnings for new hires in manufacturing grew 3.5 percent, while earnings of incumbents in manufacturing grew about 2.4 percent. Over the same time, real earnings for hires in other industries were flat, and earnings for incumbents in other industries declined.
Part Time Employment in a low paying field does not have to be your destiny. Mortgaging your future to enormous student loan debt that may or may not assure you a job capable of paying off the loans does not have to be your destiny either.
Getting skills at a local community college can help you find a fulltime position in advanced manufacturing where you can grow a career and get employer assistance with tuition and continue your education.
Who wants one size fits thinking all when it results in debt and underemployment for most?
For every full time job created in the United States in 2013, we have created 4 part time jobs.
If we were recovering, we would be creating more fulltime positions and fewer part time ones.
According to Forbes: “Bureau of Labor Statistics data show that the ratio of part-time to full-time jobs has completely flipped this year from historical trends. Last year, six full-time jobs were created for every one part time job. This year, only one full-time job is being created for every four new part-time jobs.”
On Aug. 2, the BLS reported nearly 90 million Americans were not currently in the labor force in July, with the percentage of the civilian non-institutional population not in the labor force now registering 36 percent.
The U-6 unemployment rate is 14%; the real unemployment rate- including those whop have given up looking for work is some number above 20%.
Advanced manufacturing, on the other hand offers skilled employees greater than full time employment.
Because of the shortage of skilled employees, half of our responding companies in our monthly Business Trends Survey are scheduling overtime. July Business Trends
So why no big speeches or parades or media events celebrating Labor Day this year?
Its because of the dire employment situation, silly!
Published September 2013
By PMPA Staff
This could be the day that sets someone on the path to a great career in precision machining. What are you doing to promote manufacturing in your area?
Published September 2013
By PMPA Staff
Small Parts Manufacturing, in business since 1946, is committed to providing its customers with quality machined parts.
Published September 2013
By Jeff Wiltsie
There are thousands of ways to measure productivity. Determining the best method is the dilemma many companies face.