PMPA Business Trends March 2022

 

The PMPA Business Trends Index increased dramatically by 29 points or 19 percent to 181 from February’s 152- which was, itself, our index’s second highest level ever. The increase in sales was NOT a result of increased hours of work- indicating that inflation of costs could be a likely factor. Our Sales Index performance in March dramatically heralds a pivot and perhaps a top in our manufacturing activity going forward. Inflation, not Units produced, seems a likely explanation for the parabolic increase in our Sales Index in March. Stay alert to anticipating and overcoming supply and sourcing challenges. Note- Due to the dramatic outperformance of the Index to history- over 3 standard deviations above 4 year average- we  took extra steps to validate the submitted data. Over 69 percent of respondents reported double or triple- digit sales increases in March 2022.

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If you are not currently participating in PMPA’s Monthly Business Trends reporting, you are missing a great peer benchmark and a tool to provide you with confidence for your business decisions. Contact Veronica Durden to sign up.

 

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Released April 18, 2022.   

Miles Free and Carli Kistler-Miller review the latest OSHA Statistics available for our industry in anticipation of the full report of the top 10 OSHA violations that is due out soon.

Released April 11, 2022.   

Miles Free and Carli Kistler-Miller give our listeners a peek into the most recent tour for PMPA’s Mastery Program that had them visiting PMPA member shops such as Eaton Steel Bar Company, Vanamatic, Wieland Chase, and much more.

What NFL Teams, Street Gangs and Your Workforce Have in Common

A sense of belonging is important for successful teamwork, retention and job performance.

by Carli Kistler-Miller

Director of Programs & Marketing, PMPA

Published April 1, 2022

A sense of belonging. It applies to family, the military, clubs, online groups and the list goes on and on. People want to belong to something bigger than themselves. Have you experienced that sinking feeling when you were left out of something? If you have, then you understand the need for belonging. Your business is a team and may even have teams within those teams. A sense of belonging is a strong production and retention tool for your workforce.

Belonging is Good Business

A sense of belonging is a basic, human need that marketers, businesses and Sam Malone have been exploiting for decades. Look around an NFL stadium and see how many fans are wearing team apparel or team colors. The people watching at home are probably wearing the team apparel as well.

The sense of belonging is so strong, fans say “we won” or “we lost” as if they were on the field. So why does a national team encourage this behavior? To create a strong bond that can endure even when times are hard, a team is losing or the world shuts down because of a virus. 

Translate that sense of belonging to your business. Do your employees feel like part of the team? Feel like they belong? Harvard Business Review reported on a Better Up study which showed that high belonging resulted with a “56% increase in job performance, a 50% drop in turnover risk, and a 75% reduction in sick days.” PMPA-PM0422. Think about how those results can affect your business. 

How to Create a Sense of Belonging

There are many ways to create a sense of belonging and you can probably think of a few instances where you felt it. Use those instances as inspiration. Here are a few ideas to get you started:

  • I’ve handed a business card to an employee with their name on it and witnessed the employee’s pride. The sense of belonging is instant. Almost magical. Even if an employee doesn’t need a business card, I’ll bet they went home and showed it off to their family. Business cards are an inexpensive way to show employees they are important and belong. 
  • Mimic the NFL and give your employees company shirts or t-shirts — they could even be designed by an employee. Ask everyone to wear it on the same day. Or wear company colors on the same day. Maybe the t-shirt has special meaning that the employees understand and would have to explain to an “outsider.” 
  • Keep them in the loop. It can be a short meeting, email or message on a board. Being “in the know” can go a long way toward making an employee feel like they belong.
  • Ask their opinion. They have a unique perspective so ask their opinion on something. Even if it is the color of the new garbage cans you are buying. Give them a vote or a voice. It can be as simple as giving them a sticker to put on the image of the one they like. In the big picture, the color of the garbage cans doesn’t matter. What matters is that you bothered to ask them their opinion and they feel included.
  • Celebrate birthdays. Everyone has one. It doesn’t need to be an elaborate party, but acknowledgement that you know their birthday and want to share it with others provides a sense of belonging. 

As noted in the BetterUp study, taking the time to make your employees feel like part of the team can boost performance, retention and production.

 

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Author

Carli Kistler-Miller, MBA has over 25 years of experience with
communications, event/meeting planning, marketing, writing and
operations. Email: gro.apmp@rellimc — Website: pmpa.org.

 

 

MARKET INSIGHT – Ammunition Manufacturing

NACIS 332993 | $3,214,252,000

by Joe Jackson

Marketing & Events Assistant, PMPA

Published April 1, 2022

This industry is primarily engaged in manufacturing ammunition products such as bombs, depth charges, rockets, grenades, mines and torpedoes. The precise, advanced and high-quality parts necessary for the ammunition manufacturing industry are produced by our industry by using precision turning technology.

 

Top 5 Companies

  1. Vista Outdoor Inc., TX
  2. General Dynamics Ordnance, FL
  3. Textron Systems Corp., MA
  4. Amtec Corp., WI
  5. Kaman Precision Products Inc., FL

 

  • The ammunition manufacturing industry is extremely concentrated. With only 10 companies verified in the specific NAICS Code, the top company alone makes up 64% of sales in this industry.
  • If precision machining products are only 1% of this industry’s spending, that would equate to $48.2 million in sales opportunity in NAICS 332993 for our precision machining shops.
  • The parts that our precision machining shops manufacture provide reliable and essential functionality to the accuracy, precision and functionality to the mission critical products of ammunition manufacturing industry.
  • The ammunition manufacturing industry is also geographically concentrated. Two of the top five companies in this NAICS code are in Florida.
  • The ammunition manufacturing industry spends roughly $482 million on materials, components, supplies, minerals and machinery.
  • Precision machined products manufacturing sales are more than 6.5 times that of the ammunition manufacturing industry.

 

Source: U.S. Census, NAICS.com

 

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Author

Joe Jackson

Marketing & Events Assistant, PMPA

Email: gro.apmp@noskcajj — Website: pmpa.org.

 

April 2021

Craftsman’s Cribsheet #105

As material costs continue to rise (Producer Price Index shot up 9.7% January 2021-January 2022), yield loss on our raw materials can become a hidden way of losing money in your shop. Use the chart and sample calculations to better understand why you may be better off buying longer bars for your process when available to reduce yield loss dollars.

 

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Knowledge Retention – What’s Your Process?

Our processes and work instructions provide the information needed for our performers to understand “the who, what and how” to do the task. But where do we keep the information needed so everyone understands “the why and the reasons behind” our work?

by Miles Free

Director of Industry Research and Technology, PMPA

Published April 1, 2022

Work instructions tell the performer what to do, but because they are instructions and not narratives, they seldom provide facts and context needed to understand why the work needs to be performed as instructed. Technically, performers can say they are limited by the instructions to only do the tasks by the ways and means described. However, many managers today like to tell us about their “empowered associates.” But are their empowered associates “empowered” to go beyond the standard work described?

For a performer to be able to make an “empowered decision,” they will need to have much more information than the work instructions provide. Here are a few questions to consider:

  • Does your company, department, work group and performers have a process for identifying credible knowledge applicable to the work being performed? 
  • Is it tied to the task, the process,
  • the customer or their knowledge
  • of the craft? 
  • Who is the curator? 
  • How is such knowledge identified as credible?
  • How is this knowledge maintained? 
  • How is it shared so that it becomes institutional knowledge and not merely a “best practice” of a single performer or unit?

Agency Authorities

At my desk at work, to the right on a shelf, I have a small number of key “Agency Authority” references that are most frequently consulted in my work. They include SAE’s Aerospace Material Specifications, SAE Ferrous Material Standards Manual HS 30, SAE Fastener Standards Manual HS 4000, Machinery’s Handbook, Machining Data Handbook Vol 1 and 2, Steel Bar Products Guidelines and several others. Behind me, I have volumes of ASTM standards covering steel, brass and copper, aluminum, test methods as well as the metals and alloys in the Unified Numbering System.

Continuous Improvement Meetings

Share the lessons learned on each shift by reviewing in your daily huddles. Who is collecting the lessons learned that your team discovers each shift? How are they captured?” Where are they kept? How are they shared?

Daily huddles are the ideal setting for prioritizing. The leading shops I have visited typically huddle around a whiteboard in the operating area and review the issues, actions taken and results of the improvements implemented over the past 24 hours in the operation.

Capturing the lessons learned on a huddle-by-huddle basis is important. Documenting these and then reviewing them so that they become institutional capability requires more than just a one-time mention. A photo of the problem, a photo showing the solution and a brief write-up — no more than a paragraph — can be created and saved. Often these process corrections are saved in the file for a particular part, but perhaps the lesson learned is more universally applicable. Your organizational ability will be enhanced when you find a way to document it and share throughout your organization, rather than just keep it a little-known secret among those involved. Can you create an online repository of all continuous improvement implementations, perhaps accessible as videos or by QR code?

A weekly or biweekly continuous improvement meeting involving cross-shift personnel can be used to ensure that the lessons learned are widely known among all of your performers. In addition, a monthly celebration of your team’s lessons learned — I like to call them Continuous Improvement Victories — can reward your team with a sense of personal accomplishment and recognition of the additional value they help to create in your shop. Celebrating your team’s lessons learned is the final step of the 8-D problem-solving method for a reason. A monthly recognition of your team’s Continuous Improvement Victories will help the lessons learned be adopted across your culture, and not just be a document in a file somewhere. 

Apprentice Notes

I did not have a formal apprenticeship when I transitioned from my lab supervisor job at U.S. Steel to plant metallurgist at Bliss & Laughlin Steel. However, if I was to make sense of the variation they created in our shop process, there were a host of things that I needed to learn about the other steel suppliers and processes they used. I took detailed notes about each supplier’s process path, statistics about their capability and even determined a typical level of their “background” or residual levels of various nonspecified chemical elements in their process.

Like forensic investigators use DNA today, I was able to confirm when a product returned was, in fact, of our production or not by confirming that it met the characteristics of the material provided. (Note: In a small number of cases, the claimed problem was not from the material we had supplied. These notes also included process capability, sketches of product attributes, heat treatment notes and more.) Where is this type of information available in your shop?

Ways and Means

Notebooks and written reports were a thing when I was early in my career. Today, computers, cloud storage and online technologies make preserving and accessing a variety of media containing knowledge immediately accessible. How does your company capture, record, preserve and make available the institutional knowledge to help your performers master their craft?

 

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Author

Miles Free III is the PMPADirector of Industry Affairs with over 40 years of experience in the areas of manufacturing, quality, and steelmaking. He helps answer “How?, “With what?” and “Really?” Miles’ blog is at pmpaspeakingofprecision.com; email –  gro.apmp@eerfm; website – pmpa.org

 

 

PMPA Business Trends February 2022

 

The PMPA performance and sentiment indicators this month justify our optimism about the markets and employment prospects for our precision machining industry in 2022. It has been ten months since our Sales Index fell below 130.  We are performing strongly, outpacing relevant FED industrial and manufacturing indicators. PMPA’s Sales Index tied with its second highest value of 152, which it had achieved in March of 2021. Sales Outlook, Lead Times and Employment prospects show strongly positive for the next three months.

 
If you are not currently participating in PMPA’s Monthly Business Trends reporting, you are missing a great peer benchmark and a tool to provide you with confidence for your business decisions. Contact Veronica Durden to sign up.

 

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