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Wednesday, April 29, 2015

Technology and manufacturing

Yesterday I posted a paper that I had written about the technical divide.  Today I am providing you with a paper that discusses how technology has changed manufacturing.

Technology has changed manufacturing around the world, in more ways than one.  Today we are going to explore how technology has affected the actual machines that are used in manufacturing, the affects on the skilled labor force, the affects on the way businesses recruit and how all of these changes have an enormous affect on the American economy. 

            Before computers were widely used, machine shops around the world manufactured pieces using manual machines such as, lathes, mills, grinders, drills, polishers.  Prior to computers, there  As technology has advanced and computers became common place, NC changed to CNC technology (Computer Numerical Controlled) which has advanced at alarming rates right along with computers.  Today, CNC machine sales continue to increase and surpass those of manual workstations.       
Manual Lathe
was NC technology (Numerical Controlled), but the advantages were not enough for many companies to invest in the new technology unless they needed to replace a manual machine.
            Although there are many major advantages for CNC machines, there is still a need for some manual workstations in order to remain cost effective.  CNC technology has many advantages in high quantity production environments, where manual stations are more cost effective for low quantity production.  CNC machines give more consistency in parts as they are monitored and calibrated while being machined; versus human monitoring and calibration which requires stopping during the machining process many times.  The automation results in one set up versus the manual set up with each part.  In Addition, the CNC machine is faster.  Both the automation of set up and machining result in more parts per hour or day.  The technology and precision of the CNC machine makes it both possible, and easier, to run more complex pieces at a more affordable rate.  Operating a manual machine requires   It is the programming and set up that require more skill in the CNC machine.  Many times the company must hire an individual or multiple individuals just for the programming and set up of the CNC machine.  Each new job requires programming and set up. An individual must have computer knowledge and CAD / CAM understanding to learn to program a CNC machine.  This leads us to some of the problems we are facing in the skilled labor force.
CNC Lathe
much more skill and training than operating a CNC machine.
            One of the biggest problems brought about by technology in manufacturing is the gap in the skilled workforce.  This may be one problem, but there are many contributing factors.  The first problem many smaller manufacturing facilities cannot afford the technology, therefore they cannot compete with larger manufacturers and are forced to close their doors.  As they close their doors, the manual machinist is out of work but the skills don’t match those needed in CNC shops.  They are not qualified for the CNC programmer position, since they do not have the programming knowledge.  They are really over qualified for the CNC operator positions, but many time that is the only option they have.  It is a job they should be able to perform with very little training.  A manual machine operator has more technical skills than a CNC operator, although their skills will not be utilized much, if at all, in a CNC shop. Typically the manual machinist makes much higher wages than that of a CNC operator, so pay cuts are a harsh reality for many.  Chris Kuehl may have summed it up best when he stated “There are still hundreds of thousands of jobs in manufacturing, but unfortunately people who are looking for jobs don’t necessarily have the skills to get into this field now.” (Costello, 2010 para.4) This creates a few scenarios.  One where the individual that has been laid off must accept a position that they are over qualified for, in order to make ends meet.  Consequently, the second scenario is that there are many over educated individuals that do not have actual work experience and cannot find a job in their field, so they accept whatever they can to make ends meet.  This creates a trickle down effect where people that are over qualified are taking jobs below their skill level until there are little to no entry level jobs for the entry level workers.  A third scenario is that there are no positions open with a close enough skill match and the worker remains unemployed.  All of these scenarios create a large population of individuals out of work, creating a huge drain on the unemployment system, welfare system, and economy.
            A second contributing factor to the skilled labor shortage is the negative perception of manufacturing, especially among generations about to enter the workforce.  In years past, individuals that knew a trade would very likely try to teach their children and pass their skills down to the next generation.  Working with your hands was something many workers prided themselves on.  There was a sense of accomplishment to be able to say, “I made that”.  Today’s youth are into technology and there are not many individuals that desire to work with their hands.  Being a machinist was looked at as a skilled position, but now, many individuals look at skilled labor as beneath them, dirty work, and undesirable.  Deloitte LLP and The Manufacturing Institute conducted a study in June 2009 finding that only 17 % of young Americans desire a manufacturing job and only 30 % of parents would encourage their children to learn a trade.  (Costello, 2010 para.5)  This perception of manufacturing jobs as dirty or menial tasks is not true in the majority of today’s factories.  Workers are highly trained technicians.  The days of dirty and unsafe factories are a thing of the past.  Companies now have a focus on safety, cleanliness and efficiency; understanding these are all necessary, not only to attract and retain talent, but to stay in business.    
            The third contributing factor is that the United States has taken hands-on classes, such as, shop out of the curriculum.  One must attend a vocational school now to learn a trade. 
What’s even worse is that most of the hard to fill skilled trades jobs, such as, machine operators, carpenters, plumbers, and engineers, require math and science backgrounds.  The United States is producing fewer math and science majors than in the past.  The Department of Education, Higher Education General Information Survey shows some pretty frightening statistics considering the skilled labor shortage we are currently in.  Although in 2008-2009 the highest number of degrees granted was reached at 1,601,368; we only had 69,133 graduates in Engineering, 15,496 in Math and Statistics and 22,466 in physical sciences and science technologies.  In 1985-1986 we had the highest number of graduates in Engineering at 77,391 and Math and Statistics at 16,122, when the overall number of degrees granted were only 987,823.  That same year physical sciences and science technologies was still pretty high at 21,711.  These three fields have been trending down in graduates since 1985-1986, yet the need for these individuals continues to grow.  (Digest of Education Statistics.  Table 282 Bachelor's degrees conferred by degree-granting institutions, National Center for Education Statistics Institute).
            A fourth contributing factor to the skilled labor shortage is that baby boomers are beginning to retire and without a sustainable workforce to replace these individuals there could be catastrophic consequences to the American economy.  Many baby boomers work in manufacturing and are a vital part of training in their company.  Their many years of knowledge and skills cannot be easily transferred.  I have witnessed this first hand as the machine shop that I once worked for is now considering closing its doors.  They were a manual machine shop that specialized in repair or manufacturing of low quantity parts.  Many of the machine operators that worked there for the last twenty plus years have begun retiring.  The company has now had difficulty finding manual machine operators with the skill aptitude of those that have retired.  Their rework has gone up, profit has gone down, and along with the economic downturn of the recent past, they are fighting to keep their doors open after thirty years in business.  An October 2009 report by Deloitte, Oracle and the Manufacturing Institute sited that 51 percent of skilled production companies report shortages and forecast increased shortages in the near future.  (Yocum, 2010 para. 1)  Without a skilled workforce, more manufacturing facilities will close, more jobs will leave the United States, more people will be unemployed, which means less investment into our economy, and more dependence on other countries.  That is something this nation cannot afford.  Advanced Technology Services Inc, is a manufacturing services firm in Peoria, Illinois that commissioned manufacturing executives in a survey conducted by The Nielson Company and found that the large manufacturing firms estimate that it will cost an average of $43 million to cover the lost productivity, increased recruiting and training expenses to replace the retiring baby boomer workforce (Rooks, 2011 para. 5).  This leads us to how technology has changed the way businesses recruit and the minimum requirements they set forth.
            I am a Branch Manager for a staffing agency that recruits for both office and industrial positions.  When I started recruiting in 2004 we only had one manufacturing client that required a high school diploma or GED equivalent.  Most companies would ask for a simple math evaluation along with a simple sketch or blueprint evaluation, and all were on paper.  Now, I do not have one client that does not require a high school diploma or GED.  All of the testing is computerized and there are usually a minimum of three evaluations for any given position.  Many employers now ask for some college, previous work experience, certifications, and proof of pertinent training.  It is rare that a company will agree to interview or employ someone that does not meet every requirement set forth.  Before technology was so advanced it was more difficult to research and verify a person’s education, training, and certifications.  What we are up against is the fact that companies are expecting our youth to have the education, training and experience when they walk in the door. 
            In addition, the first few steps of the recruiting process for many businesses is all virtual.  You must complete and application, questionnaire’s, and testing all on a computer and many times even remotely.  You have a phone screen and if you pass all of those steps then you may be offered a face to face interview.  Because there are so many individuals out of work, many companies believe that each candidate they hire should have every skill and prerequisite that they desire.  What they don’t realize is that many times the candidate that is truly the best person for the job may have very easily been passed over due to the virtual process.  If a person has trouble with their computer while completing the application then it may look to the recruiter as though they didn’t take the time to thoroughly fill the application and they would be passed over.  In most cases there is not a way to reach a recruiter to let them know of your troubles.  If the applicant has technical difficulties while taking the evaluation, or gets nervous when taking a test, then their score may not reflect their true abilities.  The problem with this virtual process is that the potential employer never really gets to know any of this and just moves on to the next application.  The person that may truly have the best experience and be the best culture fit for the organization may not even get a phone screen, much less an interview.
            Not only do we need to change the perception of our up and coming workers, but we need to change the perception and attitude of employers about the incoming workforce.  There are few companies, locally, that participate in internships or externships, so it is very difficult for someone with the education and training from a vocational or technical school to acquire that real world experience.  When I have asked plant managers why they do not utilize the intern / extern partnership of local schools I have received the same couple of answers.  First, their experience has been that the people do not have the necessary basic knowledge expected coming straight out of school.  Secondly, that the company does not have the time or resources to train someone without your basic, hands-on, work experience.  The average training time for someone with no experience in a machine shop can vary greatly, but is two – six weeks for basic jobs.  There is usually a need for ongoing training with more complex jobs.  This means paying two salaries to do the work of one person, and with all of the explanations and double checking involved the production is not usually even equivalent to that of one person.  It was commonplace for a machine shop to hire someone just by giving a simple math and sketch reading test, prior to all of the advances in technology and access to education.  Now companies prefer not to invest the time and resources but depend on the person to come to them ready to hit the ground running.  When you look at the fact that it takes most companies seven weeks, on average, to fill a skilled position; it seems that the seven weeks of being shorthanded and paying overtime to other employees would cost more to the company than the investment of training someone for those seven weeks. (Reuters, 2011 p. 1)
            Manufacturing in the United States is important to our economy because it creates less dependence on other countries.  The earthquake in Japan in 2011 had a huge impact on our economy and directly on automotive and electronics companies here in the states.  Even though we may assemble the final product here, many of the parts required for assembly are manufactured in Japan.  There were two-three month delays in shipping parts during the time of this catastrophic event, which put a stop to assembly here in the states.  Some businesses, especially in the automotive field, had plant shut downs during this time.  Again we run into the trickle down effect.  Many other American suppliers to those businesses that had to shut down, also had to slow or stop production which lead to plant shut downs and/or furloughs.  During this time we had companies that are normally calling us to order temporaries, calling to see if we might have any work for their full time employees for a few weeks during their plant shut downs. 
            More American manufacturing means more American jobs in other fields as well.  Many people only see the machine operator and warehouse positions that are created and don’t realize how many positions are created in other fields within other businesses because of manufacturing.  If a company is manufacturing something, they are always working on research and development, looking for ways to improve their product and reduce costs.  The company itself will do some research and development, but will usually outsource to other businesses that specialize in product testing or research and development.  This creates jobs in research and development, product testing, cost analysis, engineering, administrative assistants and the list goes on and on.  If we continue to lose manufacturing jobs, we will continue to lose jobs in those other related areas as well. 
            Technology has made manufacturing more precise.  It has reduced lead times, cut the cost per piece to manufacture.  There are definitely more advantages to the advances in technology in manufacturing than disadvantages.  In summation, educators, businesses, government and workers all need to make some changes in their perceptions and attitudes in order to allow the technological advances in manufacturing to stimulate the economy instead of create skilled labor gaps.

References
Costello, C. (2010) Skilled labor in high demand, short supply.  Retrieved from
Digest of Education Statistics.  Table 282 Bachelor's degrees conferred by degree-granting institutions, by field of study: Selected years, 1970-71 through 2008-09  National Center for Education Statistics, Institute of Educational Sciences, Department of Education
            Retrieved from http://nces.ed.gov/programs/digest/d10/tables/dt10_282.asp
Reuters. (2011) So many US manufacturing jobs but so few skilled workers. Manilla Bulletin Publishing Corp.  Retrieved From http://mb.com.ph/articles/337608/so-many-us-manufacturing-jobs-so-few-skilled-workers
Rooks, A. (2011) Will tinkering ever get another chance? Cutting Tool Engineering Magazine 63(5) para. 5  Retrieved from http://www.ctemag.com/aa_pages/2011/110516-LeadAngle.html
Yocum, J. (2010) Skilled worker shortage plagues many companies, even in economic downturn.  Retrieved from http://www.masslive.com/business-News/index.ssf/2010/11/skilled_worker_shortage_plagues_many_com.html

 

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