The FED says “…economic activity has been expanding at a moderate pace. Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated. “
This is what the FED calls Labor Market Improvement.
Parents and guidance counselors tell us that college is THE WAY to well paid career, and yet recent college graduates have almost double the unemployment rate of the general population.
These rates are nothing to brag about.
And student loans to repay.
This can’t possibly end well…
Nobody wants to work in a skilled trade any more
1000 High School students surveyed revealed their impressions of jobs in the skilled trades
54 percent of young people believe there is a better future working in computers than working in skilled trades.
37 percent of young people believe working in an office is more respected than working with your hands.
25 percent of young people believe skilled trades jobs are old-fashioned.
Here are 4 reasons to find a job and a career in Precision Machining
Executives at most PMPA member shops tell me their number 1 concern is finding skilled people to hire.
If they found a candidate with the right skills, they would hire today, even if they didn’t have a current opening.
Most Students at local community colleges’ machining programs have found jobs by the end of their first term, and by the time they graduate, all will have found a permanent placement according to students and instructors I have spoken with. This short video post shows the extent of jobs available and posted at Cleveland’s Tri- C Machining Class.
Ninety-two percent of the respondents to PMPA’s monthly business trends survey for May 2013 are expecting prospects for employment to remain the same or improve.
We understand that there are a lot of confusing messages out there.
We know that the news makes it easy to remain in the ranks of the hopelessly unemployed. After all , there are almost 3.1 unemployed workers for every job opening currently.
But we also know this, despite the graphs, and charts and opinions in the press, our industry is still looking for people with skills.
If you would like to get a job, start a career, and discover the joy of making safety critical parts that improve the safety and quality of life for everyone, you ought to consider a position in Precision Machining.
This post looks at the megatrend of Aging Society and its potential impacts on our precision machining businesses. It is based on a presentation I attended at HORN Technology Days.
Our future is determined more by societal demands than it is by our workforce and current capability.
External Fixation, Artificial Joints, Human Spare Parts…
Why Aging Society is my choice for most impactful megatrend for our industry
Annual worldwide growth trend of 5% increase in Medical Technology Developments is 2X -3X current GDP growth. (Economically compelling)
Who is against improving the quality of life of the people we love? (Emotionally compelling)
Growth in the sector of Endoprosthetics- Human Spare Parts. (Aging and active population makes this compelling)
Because of this megatrend, our industry can expect to see growing opportunities in the production of
Surgical tools and instruments
Human spare parts and hardware (Bone screws, implants (including dental), joints, and hardware)
More challenging materials to process – ceramics, titanium, magnesium, and composites.
What will the keys be to growing in participation in this field in the future?
Flexibility and speed of processes and capacity
Systems built on assuring quality
Taking advantage of cost effective technologies to build in process assurance, and cost effective minimum waste provision of parts.
Over the long run, our businesses seldom grow faster than GDP. Knowing that the impacts of our aging society will grow faster than GDP provides a roadmap for savvy managements to plot their course to use their companies to serve this growing market.
You can see the aging of society every day – at work, shopping, and even in our schools (universities).
What are you doing to meet the demands that this megatrend is creating for your precision machining business?
Horn is working on developing tooling technologies and processes to improve your capability and performance, improve cost effectiveness and innovate your production.
New technologies call for – new tooling technologies. Thread Whirling Head for Bone Screws by HORN.
What are you doing to take advantage of this growing 2X-3X faster than GDP opportunity?
It is not just demographics of our workforce that drives our industry. It is also the demands of society that provides us with the opportunity to innovate.
I was on a panel at IMTS last year on workforce issues.
I shared the following information regarding our workforce demographics in 2020 according to BLS
I was interested to see a presentation from Paul Horn GmbH. entitled Society- Driver of Technical Innovation at HORN Technology Days last week. Their approach was workforce agnostic- it was based on a look at the demands from society, rather than focus on how industry will supply that demand.
My economics professor would be so proud.
in 2008-2009 we learned that it is Demand, and not Supply, that drives the economy.
So how does Horn see societal demand driving innovation in the precision machining space?
7 Megatrends to Impact our Industry
Mobility
Population Growth
Globalization
Communication
Health
Aging Society
Urbanization
Changes in each of these areas requires technical innovation in Production Technology, Materials, Processes, Electronics, and Software, to make new technologies economically adoptable “Just in Time.”
Pillars of technical innovation
Interestingly, Precision Machining “owns” all five of the “columns” in this model as we grow into our future state.
Which of these are your particular “sweet spot?” What is your plan to gain competence in the others?
Who would argue that we are not facing new challenges in production technology, materials, processes, or increased use of electronics and software to make tomorrow’s more challenging parts?
We will revisit some of these megatrends in coming blogs.
Do you have a process for identifying “over the horizon” issues that will affect your shop?
Which megatrends are opportunities more so than challenges for your shop and team?
OSHA is reminding compliance officers to check for adequate means of egress at all workplaces. This follows the recent disastrous fire and explosion that killed at least 119 workers on June 4, 2013, at a poultry processing plant in China.
Over 120 fatalities; Exits blocked.
The standard for exit routes is called Fire Protection; Means of Egress; Hazardous Materials; 1910.33 you can find information at Egress
OSHA has an “Emergency Exit Routes Fact Sheet” which provides information on employers’ responsibilities to ensure that their workers are able to exit the workplace quickly and safely.
A memorandum sent to the agency’s regional administrators and state plan designees directs field inspectors, when conducting inspections, to be mindful of whether employers have provided and maintained adequate means of egress from work areas. This includes checking that an adequate number of exit routes are provided, that the exit routes are free and unobstructed, and that exit doors are not locked.
I advise using the fact sheet for supervisor’s weekly meeting and inspection, then for safety training crews on safe egress.
While we know this company as a supplier of tools to the precision machining industry, what many of us did not know is that over half of their revenues are for “specials-” custom engineered tools not carried in their general catalog.
So with over half their production classified as “specials” their shop faces many of the same demands as we do in our make to order shops.
Here are some views I saw in my 10 hours of shop touring; what don’t you see here that you see in your shops?
(Click on the photos to see full size.)
OK, I’ll give you a more literal view.
What do you not see here, that you see in your own shop?
Tool coating
Tools as Jewels…
In my extensive time on the shop floor I didn’t see any clutter, rags, materials or spills on the floor, dunnage, used inserts.
The difference between what we see in our shops and what we don’t see in this make to order shop is our opportunity to improve.
I saw best practices- at work!
Thanks to the team at Paul Horn GmbH for sharing a glimpse of what best practice in custom manufacturing can look like.
I remember the first time that I sat down to work on quadratic equations and discovered that there was more than one possible solution to the equation …
Yep! Two solutions! Which one is right?
How many of us realize that every day in our businesses, we are solving equations that have more than one solution?
How many of us realize that we have a choice between solutions, and that lowest price doesn’t necessarily mean lowest cost to us?
At Horn Technology Days, I attended a session on Customer Specific Tool Solutions presented by Todd Hayes.
Todd started his presentation with a challenge to the assumption that ROI is just about dollars.
As Todd put it:
“ROI is not just about dollars. Increase my tool life. Increase my machine operating time, increase my accuracy (especially on features tied to another!) reduce my time in cut by simultaneous machining. Give me my weekend back. Let me run lights out.”
This rang true with me.
When I produced steel for machine shops, the purchasing agent was always looking at lowest price per pound- for the steel.
I told him that what he should be looking at is the lowest cost to produce the part. Steel price was just one part of that cost. The cost to machine it was another.
Todd was talking about creating special tools to solve problems in production
Maybe to make another tool position or two available in an already crowded machine.
Or to get better control of the chip and finish.
Better accuracy, especially between different features.
Less time to setup or replace the tool.
Yes the tool is more expensive but…
(click on photo to enlarge in separate window)
For short runs, the cost of a special tool is prohibitive. But not all of us are quoting short runs. But how many of us are still using short run thinking?
How many of us are solving for lowest tool price rather than optimum output?
What if the custom tool (or special steel grade) saved me several changes per day on several machines?
How much more machine operating time will I gain?
How much utilities will I save by not needing all the CFM of compressed air that we all over use when we change a tool?
How much will I save because I have eliminated variability and or better controlled the chip so I do not have to inspect for chip weld and out of spec surface finishes?
I am not exhorting you to go out and buy specialist tools for every job. Just like I was not asking my customers to buy the premium machining grades of steel for every job.
I am asking you to recognize and challenge your assumptions about how you decide to purchase, just as I had to recognize and challenge my assumptions that there was only a single “solution” to those equations I faced in class that day.
Lowest price on purchases, or lowest cost of production?
Tools You Can Use Tuesday- free graph paper, and forms of all types.
Over 1000 different types of papers as free pdf’s
You pay your engineers and talent for their skills – why not use them at their highest and best use?
Give them this link to free paper and business templates and let them do actual engineering instead of wasting time trying to create the paper they need.
In addition, they list a variety of other papers for business (think accounting columnar paper, budget paper, check registers, etc.) and personal use like score sheets, music paper- about 1,031 papers you can download and print for free.
These are .pdf’s you can download.
Why spend valuable engineering time recreating the obvious? Grab the pdf’s you want here.
Do you have any favorite sites that provide Free Tools You Can Use in our precision machining, advanced manufacturing businesses? Comment below to share your favorites.
In my experience, the ability to anticipate is the mark of a great manager.
At the Epicor Insights 2013 Conference, some guy named Joe Montana helped me expand my idea about what “anticipation” means…
Ok. I admit that I do really know that Joe Montana was a professional football player. (American Football)
Forgive me but I’m going to mention some professional football stuff here.
It’s a subject I know virtually nothing about. (I’m from Cleveland, Ohio.) But I had the chance to listen to Joe Montana speak about perfection and everyone around me was cheering and oohing and ahhhing so I took some photos and I took some good notes.
Joe Montana made the point that “How we prepare”-(how we show up) has more to do with our success than our talent.
He convinced me to add ‘Preparation’ to ‘Anticipation’ as the sign of a great professional. That preparation and work ethic build trust.
Ok. You can stop rolling your eyes now. Pretty simple stuff. Pretty obvious. How come these famous guys always say these kinds of things?
Joe Montana’s points for perfection
What can I do every day to make me better to make my team better? (I guess there really is an I in Team…)
Master the fundamentals. You can’t acheive perfection with out them.
Get the little details right. They will come back to help you.
Live your work ethic. Having a work ethic builds trust. there can be no success without trust.
I think that he has these right.
If we model a work ethic, we will not only build trust but lead by example.
Mastering our craft- all of it, not just the big ideas- of course that will make us better craftsmen.
His question “What can I do every day to make me better to make my team better?” is astonishingly close to the one I learned from a turnaround expert many years ago “What can I do today to make my company the most money?”
I thought that these points from this winning football guy were certainly worth reflecting upon.
