Manufacturers Can’t Fill Skilled Positions

[intocarss]

Posted on February 19, 2013 by Phil Kerner

As I began the painful shutdown of my own company in 2004, a few things were becoming abundantly clear to me, and still ring true to this day.
For the most part, the days of “handshake agreements” are gone. The president of company “A” was making a fortune, and didn’t need to beat up company “B” who was doing most of his work. China’s work was cheap, but the workmanship was poor.
NAFTA was a stinging blow to small American manufacturers. No way around it. It helped the big guys out – Coke, Pepsi, etc. – by opening up huge markets for them. But the “little guy” got crushed.

Here’s an amazing fact that I’ve never wrote about before: Let’s say I quote $100,000 for an injection mold. China does it for $30,000. So, the mold arrives in the States and it needs a lot of work to make it “right.”
The company who bought the mold for $30,000 from China now has to put another $50,000 of labor into it to make it work. First, they’re still $20,000 ahead.

But, here’s the dirty little secret: they can write off the $50,000 in repairs and revisions as a maintenance expense on their tax returns.
But, I digress.
I feel like most small shops have pretty much turned into prostitutes begging for their next “trick.” While that might work out well for the owners, it’s complete hell for the employees.

No training programs. No time to do things the right way. No margin for error. No chance for advancement. Outdated machinery that can’t hold the tolerances that are required. Jumping through hoops to make $12 bucks an hour.
I’m one of the lucky ones. Worked hard, and have a great pedigree in manufacturing. I am treated very well where I work, and I am paid a fair wage for what I do. After 35 years, I should be well paid, and I know how to fight for what I’m worth.

Not that long ago, a guy like me could work his way up the corporate ladder. Not anymore.
You could be the biggest dumb-ass in your class in college, and somebody will give you an engineering job now and you’ll be my supervisor. It’s hard to watch, and much harder to actually experience.
The reason for my ire this evening was a story in our local newspaper about local manufacturers not being able to to fill skilled positions. They just can’t figure it out, and our local Chamber of Commerce even launched a study to figure it out. Imagine that…a bunch of “suits” running around wondering why shops can’t fill positions for skilled labor.


It’s pretty simple: who wants to work for 10-15 bucks an hour? Who wants to see their earnings peak out at $25,000 a year? Who wants to work in an industry where there is no chance of career advancement without spending $100,000 on an engineering degree?
It’s not really the fault of the shop owners, as they’re being squeezed every day by unrelenting purchasing agents armed with MBA degrees from Harvard.

We live in a very strange world today. The “craftsman” is now being seen as a liability rather than an asset. My father – a great toolmaker who was known for his speed – always said “haste makes waste.” Today, the know-it-alls would refer to him as someone who doesn’t “get it.”
In an era of computer-generated “everything,” people seem to think that technology will solve everything.
CNC machines…CAM systems…AutoCad. Just feed it into the machine, and all will be well.

In the end, machines don’t always cut straight. Prints have errors on them. Material warps when stock is removed. Holes don’t always line up. Machines break down. End mills wear out. Reamers decide to cut oversize, and than undersize.
The guy who knows how to work around all of these problems is a dying breed, and he’s not going to do this work for $20 grand a year.
If you think they’re complaining now, wait about 10 years. Guys like me will be retired, and the “new guys” are going to be learning from the “not-so-new-guys” who don’t know what a reamer is.
Mark my words: the day will come when this country can’t produce anything.

And THAT…is just my 2 cents worth.
Phil Kerner
The Tool & Die Guy

http://www.thetoolanddieguy.com/archives/author/admin

[ironworks]

I totally agree. But just like the farmer people who can still actually do something have to come back around at some point. Farmers are going to control the world someday. We will always need food to eat and there will always be a need to have things made. China crap just gets worse on a daily basis and something people only need one of something made not 1000's or millions.

The key element I see if the guy like your self that can learn technology and use it smartly to build things like they should be done. How many guys have CNC equipment but don't know how to make anything really advanced. Not just a guy who can take a design and put it in master cam and get the machine speeds figured out for Ok results.

There is no passion for quality of work anymore. No body has the time to do something right. Heck they sell Chinese made fence panels at Lowes now. They are thin crappy wood that will fall apart like everything else. Have you tried to buy a nice oscillating fan laterly? They are all junk.

The American lifestyle will be the beginning of the end for our existance. Very few people can tell quality let alone be willing to pay for it any more.

Rodger

[Sieg]

I watched the skilled trade erosion firsthand over the last 20 years in the floor covering industry. The weak moved out of the residential market into the commercial arena where mediocre fit and finish is deemed acceptable. Flooring isn't nearly as complex as machining but does require numerous tricks of the trade only obtained through experience and good physical conditioning.

I couldn't agree more with Phil's position.......it's sad. Book-smart didn't build the foundation of past empires.

This country needs numerous local and affordable tech schools now.

I have quite a few friends that are highly educated and talented individuals, yet putting a tool in their hand is similar to giving one of my dogs a laptop computer.......:sieg:

[Bryce]

completely agree. and Im one of the engineering guys.

I see it everyday. I work in the test lab as teh manufacturing guy. I design and fab almost everything going through the lab.

We have a guy thats been with the company 45 years. I am learning from him everyday on how he would make it. But I also get to bring in the new technology which is appreciated. But we do not have a replacement for him.

I am teaching the new guy how to drill and tap holes.

The young guys are just not coming through the shopn not everyone should go to college and get a pointless degree. Some guys/gals should go to a vocational school and learn the trade. The should also be paid for their talent once they get into the job force.

I hate to say it but the government should not let the manufacturing leave the country.

[Sieg]

The American lifestyle will be the beginning of the end for our existance. Very few people can tell quality let alone be willing to pay for it any more.

Rodger
Well said Rodger.

I observe so many acquaintances buying junk for instant gratification on a weekly basis with no consideration of long-term value. The "more more more, price price price" with no clue for quality mindset........does some it stem from the entitlements promoted early on in grade schools now or lobbyist for Goodwill Industries?

[RussMurco]

I couldn't agree more, Phil, and I see these results in my neighborhood almost weekly. I'm the only guy in a neighborhood of 23 homes that has tools and the knowledge to use them, the only one! I broke a slide-puller working on the Cutlass last year and went to a couple of neighbors asking if they had one, I may as well have spoken latin to them, it was mind-blowing to me.
My Dad built homes and my grandpa was one of those depression era kids who learned how to fix things, he had no choice. I learned from both of them, have amassed a pretty heathy collection of tools and knowledge of my own, but the guys who come over when I fire one of the cars up (hell, they all do) just have no idea how to do anything mechanical and were amazed when I timed the Cutlass ignition by ear. Yes, I verified the tune with a timing light afterward and that was even more amazing to them. What gets me is that for all the enthusiasm they display when watching me do these things none of them show the slightest interest in learning how to do anything I show them.
I went to college and got a degree, I don't have to work with my hands, and for that I feel grateful, but I could (and have) if I had too. The company I work for, and who I sell for, is owned by a guy like me... But with money. He is a staunch believer in being a manufacturer and making things here in the USA and it costs him money and business every day. Our main retail product is manufactured, by hand, right here in Minnesota using as much US-made materials as possible. We compete with a dozen very well known and highly marketed products in our market, mostly made by robotics, with many made overseas. Our production cost is easily double that of the competition yet our retail prices are roughly the same so our margins are very small. How long can he afford to do it this way? Hard to say. Is there pressure to move production out of country? All the time. BUT, the good news is that we have experienced double-digit sales growth the past 3 years and when I put our product in a potential customers hands the difference in quality is obvious to them, but I can do that with only so many customers.
This really started with Nixon taking us off the gold standard. We had been spending so much money on Vietnam and "the great society" that we couldn't maintain the gold reserves that other countries depended on as the basis for their currency. Before the dropped the gold standard we made agreements with many of those countries that eased our import restrictions, remember the explosion of "Made in Japan" transistor-radios in the mid-70's? It has continued since then and become worse and worse with poorly thought-out, short-sighted trade deals and our dollar continually weakened by that and our government spending. The equal-rights and civil-rights laws that were passed in the late 60's and early 70's also added to the available work-force too and that had a depressive effect on the wages of labor, including the craftsmen who historically gave America it's manufacturing edge in the world. Add in the sorry state of education in our country, and that more people can identify Beyonce but not Thomas Jefferson, it only get's worse the more you look.
I hate that we, as a country, build very little of anything with value these days. I hate that my neighbors are so dependent on others to fix things they could easily do themselves. Instead of making things the world wanted we have become a country of money traders with people taking their "cut" throughout each hand-to-hand trade. It's made many very wealthy, and I have no issue with that at all, but hasn't really done anything to advance America as a whole.
I do think it will change, it will have too. We as a country may go bust and people may HAVE to learn to do for themselves again. In China they keep moving factories around since every time a large plant moves to a region the economy blasts off locally and people start demanding higher wages. It's a hard road we have ahead but like a good salesman, I'm always in a positive mind-set and hopeful for our future.
If it all goes to hell I am incredibly well-armed as well. I know how to use those tools too!!! lol

[IMPALA MAN]

Most of you took the words right out of my mouth. The best Engineer ever created was one that:
1. Was raised on a farm.
2. Was middle class or poor.
3. Then went to college to be an Engineer.

A great recipe. I happen to work with one and usually in the end, everyone goes to him for the solutions. What does he provide? Usually answers that relate to common sense.

I had a first cousin who was a straight A Engineering student. I happen to be not as mentally privileged and went to a 4 college to get an Industrial Mechanical degree.
With both of our degrees, his mother asked me to pick him up on my way to our grandmothers house. I was going to repair her toilet in which the float / fill valve needed replaced. His mother wanted me to teach him how to replace it, so when I move away, he can fix it.
I take him along, replace the valve, show him how and asked him if he had any questions. He had only one. "Why don't they do this electronically?".
There you have a fine example of our future. No poor farmer foundational education that we call COMMON FRIGGIN SENSE!!!!
Electronically would be more accurate. When you add in the COMMON FRIGGIN SENSE factor, which they are missing, you would realize that instead of a $10.00 part it would be a $50.00 part. Then no one would buy it and you would make no money. This mathematical formula is called.....COMMON FRIGGIN SENSE!!!

[Shmoov69]

It's sad. The "workforce" is pathetic anymore. I dread the future generation that I have to deal with. In my industry, commercial roofing, I have seen it go from people wanting a job and needing to work to wanting a job and not wanting to work to now not wanting a job and having no reason to work since the government will just take care of them! They have zero dignity and actually could care less about taking care of themselves. It's really sad actually. And I have seen this in just 25 or so years. :bang:

[Bryce]

Most of you took the words right out of my mouth. The best Engineer ever created was one that:
1. Was raised on a farm.
2. Was middle class or poor.
3. Then went to college to be an Engineer.

A great recipe. I happen to work with one and usually in the end, everyone goes to him for the solutions. What does he provide? Usually answers that relate to common sense.

I had a first cousin who was a straight A Engineering student. I happen to be not as mentally privileged and went to a 4 college to get an Industrial Mechanical degree.
With both of our degrees, his mother asked me to pick him up on my way to our grandmothers house. I was going to repair her toilet in which the float / fill valve needed replaced. His mother wanted me to teach him how to replace it, so when I move away, he can fix it.
I take him along, replace the valve, show him how and asked him if he had any questions. He had only one. "Why don't they do this electronically?".
There you have a fine example of our future. No poor farmer foundational education that we call COMMON FRIGGIN SENSE!!!!
Electronically would be more accurate. When you add in the COMMON FRIGGIN SENSE factor, which they are missing, you would realize that instead of a $10.00 part it would be a $50.00 part. Then no one would buy it and you would make no money. This mathematical formula is called.....COMMON FRIGGIN SENSE!!!

If common sense was common it would just be called sense.

[ironworks]

If common sense was common it would just be called sense.

I think they should just change the term to "un" common sense. Since it is not as common as it used to be.

[RussMurco]

They have zero dignity and actually could care less about taking care of themselves. It's really sad actually. And I have seen this in just 25 or so years. :bang:
Oh yes, the "Jerry Springer" crowd... Remember when that show first came on and most people were appaulled by the wretchedness of the "guests"?! As we've removed "shame" from our society and individual actions we, as a country, have become more course, borish, and pathetic. Yet when you approach these individuals and point out what should shame them they demand that you "respect" them! I'm sorry, but the lack of dignity, self-respect, shame, and self-sufficiency do not earn my respect.
Ok, I'll step off of my societal soap-box now and return to being a confused adult desperately seeking acceptance from an undifferentiated ego mass that demands conformity...

[realcoray]

I think there is a certain portion of the population who is just always going to be underperforming, aka unemployable. I think it's probably higher than say the 'good' unemployment rate of 5%ish.

On the other hand, I think employers often over estimate the skill set needed to do many jobs, and it's simple supply and demand in that they don't grasp that if you can't find someone to do a job for 12$ an hour, then clearly you need to increase the pay until you find your supply of good workers instead of complaining that people

I don't think there has been a decrease in 'common' sense or that somehow people are less skilled than a previous generation. It's more that entire new areas of engineering have been created over the last 30 years. The millions of technical engineer people who work on current technology (like software and computer hardware etc) means fewer people for typical manufacturing or engineering.

[RussMurco]

I think there is a certain portion of the population who is just always going to be underperforming, aka unemployable. I think it's probably higher than say the 'good' unemployment rate of 5%ish...
You're probably right, I'm guessing closer to 8 or 9% that will cronically be unemployed or under performing and needing assistance. That's a far cry from today's 46M people on food stamps! And yesterday there was a lawsuit launched against Target for "excluding applicants who had criminal histories"... Look it up, the claims will amaze you...

On the other hand, I think employers often over estimate the skill set needed to do many jobs, and it's simple supply and demand in that they don't grasp that if you can't find someone to do a job for 12$ an hour, then clearly you need to increase the pay until you find your supply of good workers instead of complaining that people... That's simply market forces coming to play. The largest single expense for most companies is labor. If they are operating on thin margins the money to pay people more just doesn't exist or comes from someplace else (equipment, engineering, production) that will make the company less competitive. It's just a matter of sifting through the large labor pool to find that one good candidate who is capable of doing the job and has prospects and the desire to do more and become more valuable to an employer.

I don't think there has been a decrease in 'common' sense or that somehow people are less skilled than a previous generation. It's more that entire new areas of engineering have been created over the last 30 years. The millions of technical engineer people who work on current technology (like software and computer hardware etc) means fewer people for typical manufacturing or engineering.
I don't think there are fewer people in the lower-skilled manufacturing pool, I think there are more today and what is missing is the work ethic and just plain old desire. An engineering degree is great but those people usually have their pick of jobs if they have a good track record and that's true of anyone who expresses desire and a good attitude.
How many people are willing to "put-up or shut-up" these days when looking for a job? When I took my current position I was in competition with 100+ people. In the end I was competing with a small group but my background sealed the deal and I've sweetened the deal for them by taking on responsibilities that I didn't need too, taking an active role in product design and R&D, and going back to school to fill a need they had within the company all while still performing well in the position I was originally hired for. Throughout my career I've tried to be a "swiss army knife" for my employers and capable of taking on most any role they needed.
I tell my boys all the time, this world is a bitch and you have to make your own path if you want to continue enjoying the lifestyle you've become accustomed too. It's going to be harder for them than it was for me, I hope I've been a good example for them, and I hope they become the men I have tried to raise them to be. Should they not turn out that way I will be ashamed of my parenting.

[RECOVERY ROOM]

Good thread guys, And you all are so right, WOW

[GeoffP]

Unfortunately the skilled vs. unskilled labor problem isn't just in manufacturing...it's next to impossible to find anyone that wants to learn anything beyond answering a phone these days and I'm sick and tired of the mail order college degree guys acting like they know anything about anything...at least the guy I'm thinking of tries hard even though he hasn't got the sense God gave him...

Anyway saying all that I couldn't agree more!

[Vegas69]

I didn't need to read the whole article. It comes down to some very simple variables. Americans want to HAVE MORE, DOING LESS. It doesn't work, it's never worked, and it will never work in the future. For example, you ignore you health, gain weight, lose drive, disolve your relationship with your Wife, lose you job, wonder why you lost your job and your kids, and have a heart attack at 45 years of age while you choke down your 28th smoke of the day.

The problem is, 98% of Americancs wish things were like they "used to be". You can live your life that way until your last breath of air or you can choose to CHANGE. Adapt, Learn, Gain Skills, Work on your ATTITUDE, Persistence, Health, and the list goes on down the line. You can separate yourself from the herd by a country mile if you have discipline that simply doesn't exist, today.

Just my opinion. :lol: