I think that it is going to be a lot different than just the “More Automation” trend we’ve been seeing for the last few years.
Over the last eight years, our shops have been adding automation to better compete against low labor cost manufacturing abroad and to improve shop capability.
I know, because at the end of 2003, we took a mission to China to see how we could better compete with the emerging dragon that was Chinese manufacturing.
What do the next 8 years hold in store for us? What will be the forces at work to reshape our shop as we know it?
Have a look at these two graphs from BLS:
This tells me something important-almost three quarters of all employees will be over 55!…and this is how we get there…
Not looking so good for adding younger talent according to these charts.
The projected labor force growth over the next 10 years will be affected by the aging of the baby-boom generation; as a result, the labor force is projected to grow at a slower rate than in the last several decades
Here’s my (tongue in cheek) artist’s conception of the shop of the future.
Two old supermachinists wired in to operate 18 machines via remote CNC
What is your vision for the shop of the future? 25 words or less please for Round 1. Thoughtful, shocking, and compelling visions will be considered for an expanded treatment in a future post. Post your comment below.
We need to change the community perception that manufacturing is “not deserving/worthy enough” for their kids. With the majority of recent college grads un-employed, under employed, and underwater on their debts, and lucky to get part time work, careers in manufacturing for people with skills offer rewarding challenging fulltime employment that makes a difference in the lives of us all.- Speaking of Precision
By Fatima Weathers, Executive Vice President, MAGNET
Fatima Weathers, Executive Vice President, MAGNET
At a recent conference I attended in Washington, D.C., panelists from industry, academia and labor gathered to discuss manufacturing’s next step.
Several panelists described the current manufacturing environment as being on the edge of a new era that is being driven by widespread and affordable access to 3-D printing and cloud computing.
Only mentioned in passing were the usual barriers to growth like unfair trade, taxes, labor costs and access to capital. Indeed, much of the discussion focused on the debate surrounding immigration laws. Many attendees and panelists agreed that access to highly skilled talent is the factor that will tip the scales for gaining the competitive edge in the U.S.
One panelist challenged manufacturers by describing the current environment as our “Sputnik Moment”—either grasp this fleeting window of opportunity to lead through innovation and talent or forever miss the moment to be the global leader in manufacturing.
What do you think? Is this our “Sputnik Moment?” What do you think is the most important factor manufacturers face right now? Respond below, or email me atgro.krowtengam@srehtaew.amitaf. We look forward to hearing from you!
The Board of Directors of the Precision Machined Products Association announced the hiring of Michael T. Kobylka, II as PMPA’s next Executive Director at their recent board meeting,
New PMPA Executive Director Michael T. Kobylka,II
A native of Northeast Ohio, Kobylka returns to the region after serving as President and CEO of Racine Area Manufacturers and Commerce (RAMAC) in Racine, WI, the last three years. Kobylka’s experience also includes leadership positions with Cleveland-based Manufacturing Advocacy & Growth Network (MAGNET), and the City of Lorain, as well public service as a field representative for former U.S. Senator, George Voinovich.
Kobylka will succeed Michael B. Duffin as Executive Director, effective August 1, 2013. Duffin who will be retiring at year’s end will continue in a consulting role with the association during the next several months, to assist in the transition to a new executive director.
“I’m excited for the opportunity to join a great organization, such as the PMPA. Manufacturing is a vital segment of the North American economy, and I’m looking forward to getting to work to continue the PMPA’s focus on the needs of North American manufacturers. The PMPA will continue to serve our membership and make contributions to the success of this important industry,” says Kobylka.
-Unless exempted from scope or from registration in accordance with Annex IV or V, substances on their own or in preparations are always subject to registration when manufactured in, or imported into, the EU.
-Substances on their own and in preparations in the form of, or contained in, articles produced in or imported into the EU are subject to registration only if they are intended to be released under normal or reasonably foreseeable conditions of use and if this use of the respective substance have not been registered before in the Community.
-In Article 3 (3) of the REACH regulation the definition of an article is given as “an object which during production is given a special shape, surface or design which determines its function to a greater degree than does its chemical composition.
So the question “Do my parts comply with EU REACH Regulations?” boils down to this question: “Do your parts meet the Article Exemption test?”
For an object to be considered an article, the following conditions should be fulfilled:
The shape, surface or design of the object must:
be obtained during production and be special;
be relevant for the function of the object;
be more important for the function than the chemical composition of the object.
Precision machined products easily meet these conditions:
1. The shape, surface or design of the object must be obtained during production and be special
-The shape and many surfaces of precision machined parts are created by stock removal during production and are regarded as “special”
-Precision machined products are custom produced (special) at the order of the customer.
-They have different dimensions and technical characteristics, as specified by the customer at the time of the order.
-Their surfaces are developed during production to meet the customer’s (special) dimensional and geometric requirements.
2. The shape, surface or design of the object must be relevant for the function of the object
-it is axiomatic that the custom design of the precision machined product is to create the needed form fit and function needed to assure desired performance and function.
3. The shape, surface or design of the object must be more important for the function than the chemical composition of the object
-Precision machined products are machined from a variety of metallic alloys, including steel, stainless steel, aluminum, brass and many others of varied compositions.
-These compositions are varied and determine manufacturability as well as influence mechanical properties, though they are not sole determinants of those properties.
-Without final precision machining to special size, form and geometry, the raw material itself would not provide the needed function demanded by the customer.
Bottom line: Precision machined products are clearly “articles” as defined by Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), and so exempt from regulation.
Caveat: If during foreseeable conditions of use of the part, it could cause an intentional and forseeable release of a substance that has not been registered before in the Community, you might need to investigate further.
Where do YOU go to get this kind of regulatory assurance?
While I was sunning myself at a Southern coastal beach, the folks at Institute for Supply Management published the July PMI number.
A great time to go to the beach! And to be in Manufacturing.
It was the highest posted for the year- “July’s reading of 55.4 percent reflects the sixth month of growth, and the highest overall PMI™ reading, in the first seven months of 2013. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.” ISM July 2013
Frankly, we were a bit surprised- our Business Trends Report for June 2013 was down 8 points. But that was June.
But reading the fine print gives us something more than a strengthening economy to encourage us.
Here’s what the ISM report had to say about fabricated parts (what we make!)-
“Commodities in Short Supply: Fabricated Parts is the only commodity listed in short supply.”
So even if our Business Trends Report for July (and your shop’s shipments numbers) are down in July, contrary to the ISM PMI number- it’s OK-
The parts that we make are apparently in short supply, and THAT is a leading, not lagging indicator…
The U.S. Department of Labor finally recently published its 2013 Spring Regulatory Agenda. Despite the extra time, a number of dates are still shown as “00” or undetermined / to be determined.
But hey, at least they’re not handling our healthcare…
It’s not like they should be held accountable to deadlines like they do us, right?
But tucked in the 67 pages of Spring Regulatory Agenda we found good news regarding two items affecting our precision machining industry.
Item 1, Cooperative Agreements
According to the Regulatory Agenda, OSHA has “withdrawn” RIN # 1218-AC32, effective 07/00/2013, (whatever “00” means) which would have-
eliminated exemptions from inspections for companies regardless of participation in Safety and Health Achievement Recognition Program (SHARP) exemption status;
allow Compliance Safety and Health Officers to proceed with enforcement visits resulting from referrals at sites undergoing Consultation visits and at sites that have been awarded SHARP status;
limit the deletion period from OSHA’s programmed inspection schedule for those employers participating in the SHARP program.
I guess someone figured out that there would be no incentive at all for companies to participate in these programs if their was no employer benefit at all.
Item 2, Revising Record Requirements in the Mechanical Power Press Standard
The other good news item in the Spring Agenda was the notice that OSHA is Revising Record Requirements in the Mechanical Power Press Standard, RIN:1218-AC80. Notice of proposed Rulemaking (NPRM) and Direct Final Rule dated 07/00/2013:
“As part of the Department of Labor’s burden hour and cost reduction initiatives, OSHA will examine revoking requirements for employers to prepare and maintain periodic records certifying that the employer performed the required tests and inspections on machinery. The purpose of revoking these records is to minimize paperwork burdens imposed on employers. Recently, OSHA revoked requirements that employers develop and retain training records for a number of standards when the revocation did not adversely affect worker safety and health.”
The other 8 OSHA items have potential major impact on our shops. We’re analyzing them for reporting to our members.
We call our attention to regulatory issues “PMPA Regulatory Assurance.”
Who is working on this for you? Where do you go for OSHA regulatory guidance? Are your HR people proactively working these issues?
Slips, trips and falls- here are some facts to help you with training for your team.
We are currently working on our analysis of the 2013 Spring Regulatory Agenda which includes an item “Walking Working Surfaces and Personal Fall Protection Systems (Slips Trips and Fall Protection)” shown as Final Rule due for November 2013.
PMPA members will receive a report on each of the agenda items applicable to our industry.
Hope you find this background information helpful in your training.
Via: BOLT Insurance
PMPA’s Business Trends Index for June 2013 is 119, identical to the value for June 2012 and down 8 points month to month from May, mirroring last year’s 6 point drop from May to June.
119 for June – 2012 and 2013.
The monthly average for the index for June 2012 year to date was 122.2; for year to date June 2013 it is 123.3.
We are surprised at how closely the industry’s shipments in 2013 are mirroring 2012. And of course, we are concerned at the apparent lack of substantial growth.
Markets for precision machined products include automotive, aerospace, medical fluid power, off highway, appliances and many others
Not really cause for concern, because: June’s 119 is 5 points above last year’s average.
So we are not sounding any alarms here. Just wondering if all the new business development folks have gone fishing…
While there is no real recovery in Workforce Participation Rate at the national level, individuals can create their own personal economic recovery plan through training for a career in precision machining.
In the precision machining industry, we are convinced that the unemployment issue is structural- we have job openings but no qualified applicants.
Here is a graph showing US Labor Participation Rate 2007- 2013.
Recovery in Jobs? What recovery?
Meanwhile, the folks who think that it isn’t structural continue to pump trillions into the economy- to no avail.
We’re sure paying for a recovery. Are we getting our money’s worth?
Advice to job seekers:
If you are comfortable doing high school math, and would like a career where you positively impact someone’s life everyday by making things like human safety critical anti-lock brake or airbag components, medical device components, aerospace, fluid power control, and parts used in other critical technologies, consider a job in precision machining.
Our shops continue to look for talented people to bring their skills to our shops.
A couple of introductory courses to our trade are all that is needed to get the skills needed for an initial hire.
Our latest Business Trends Report for May 2013 shows that 92% of our responding companies felt that employment prospects would be the same or better.
You can find information needed to find a training program at PMPA’s Comprehensive Career Database here.
Want to explore the idea of a career in precision machining? Go to our Careers Page here.
The folks in Washington D.C. continue to shovel money to the markets in hopes of creating recovery. We’ re not optimistic. Hasn’t worked yet, see the graphs above.
But we ARE optimistic that anyone that can do the math can make a strategic decision to get some training and create their own personal recovery with training leading to a job leading to a career in Precision Machining.
Our member companies are looking for people with skills. The want ads around the country show plenty of machinist wanted, CNC machinist wanted, CNC setup operator wanted advertisements.
Fatima Weathers, Executive Vice President, MAGNET
