Skills Gap: We’re Between a Rock and a Hard Place

By John Sonnhalter, founder and rainmaker journeyman, Sonnhalter

Our workforce is aging faster than we can replace them, especially in the skilled labor category.

High schools used to push college as the only viable alternative to higher education. These graduates, with their liberal arts education, come into the workforce with no vocational skills. And individuals who lack the right skills or credentials, land in careers with little or no chance for meaningful advancement.

We’ve talked for years, now, about how many of our youth are missing opportunities in the workforce because they were thinking that they had to go to college. Let’s face it, college is not for everyone and for many who go to college, they end up in jobs that have nothing to do with their major.

In recent years, the media and the rest of the world have now started to pay attention to the lack of skilled labor to fill loads of trade jobs that, by the way, pay very well (sometimes better than four-year college degrees) and don’t have big student loans to pay back! And electrician, plumber or carpenters jobs can’t be outsourced overseas!

Here’s what Mike Rowe has to say about it:

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Making the Most of a Trade Show Visit

The Precision Machined Products Association has a growing membership of machine shops, technical members and others involved in the precision manufacturing sector. One of the more innovative ways they communicate with current and potential members is through a regular insert in the trade publication Production Machining.

The insert is a win-win for both the PMPA and the magazine. PMPA gains an additional way to communicate to their membership, and Production Machining gets valuable content.

A perfect example? This recent article on the upcoming IMTS show in Chicago. If you’re heading to this show, or any trade show in the near future, this is a great read.

The International Manufacturing Technology Show (IMTS) 2018 is set to take over Chicago’s McCormick Place from Sept. 10-15. The pure numbers of the show are pretty staggering, with more than 115,000 people expected to attend from more than 110 countries and more than 2,000 exhibitors with 1.37 million square feet of exhibit space divided into 10 pavilions, four co-located shows and more than 60 conference sessions.

So, like any big task, the secret to success at IMTS, or at any trade show, is to create a number of smaller goals and plan, plan, plan, all while leaving enough wiggle room for last-minute opportunities or challenges.

Here are some basic guidelines for planning to make the most of any trade show visit.

Pre-Show

  • Book Early – Make sure to take advantage of any early bird specials for registration, not only to save money, but also so vendors have an idea of how many people are attending. It’s also best to book travel, transport and hotel as soon as possible.
  • Stay in the Show Hotel – Sure, it may be more expensive, but it will be close to the show, probably have free transportation opportunities and offer lots of networking possibilities.
  • Have a Plan – Make a list of goals and company needs. This way it is easier to know what to accomplish and determine whether a show was a success.
  • Make a Map – Use the show planner or a printed map to physically see the locations of the booths, which will help immensely when it comes to scheduling.
  • Look for Opportunity – Avoid visiting the same vendors. Their competitors will be there as well, as will potential customers.
  • Have a List – Is it a selling show? Then make sure to know the company’s inventory and budget. This way, it is easy to take advantage of any show specials and ordering opportunities.
  • Set Up Appointments Before You Leave – Call ahead and set up a meeting time. A few of these will not only allow visitors to ensure they get to see the right people, but act as a framework around which to build the rest of an itinerary.
  • Bring Someone – Bring someone else not just to “divide and conquer” a larger show, but also to bounce ideas off of and serve as a mentoring opportunity.
  • Travel Light – When packing, bring only the essentials. Visitors will be inside the majority of the time, so dressing for the weather can be minimal, and it is recommended to leave open space for the trinkets and other items. Make sure to bring at least two pairs of shoes.

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Industry Trade Association Addresses the Skills Gap Issue

Today’s guest blog post comes from Precision Machined Products Association (PMPA). More and more industry trade groups are organizing to address the skills gap, and PMPA has certainly been in the lead of that effort. Just last year they launched MFG, an online one-year certification and job training course for its members that allows companies big and small to have a consistent, accredited training program.

Here is the post, which also appeared in Production Machining.

Training the Next Generation: The Need for Professional Development

Establish a training program that identifies the necessary requirements to be fulfilled.

Professional development and staff training are important to the success of every shop. Professional development ensures employees maintain appropriate certifications, knowledge, safety and ethics in the professional environment. The goal of professional development is to have a qualified staff. Qualified employees have the skills needed to deliver the highest quality of service to our customers. This can be accomplished by establishing training programs, workshops and ongoing educational opportunities. This benefits the company as a whole by improving productivity, culture and customer loyalty while helping employees achieve their highest and best performance.

Establish a Training Program

Establish a training program that identifies the necessary requirements to be fulfilled. Safety training, technical competency and performance techniques are all possible deliverables. By providing this kind of training, the company can feel comfortable knowing they have improved staff knowledge leading to improved performance from their employees. Better performance means improved safety, quality and customer satisfaction. Training improves competency, so it improves performance and trust. Improved trust improves teamwork. Everybody wins. Why would you choose not to establish a training program?

Administer the Training Program

Identifying training needs is the first step. Administering a program to provide the training, testing that it has been effectively learned, and tracking training accomplishments are the next steps. Any course materials should be accredited to recognized national standards such as National Institute of Metalworking Skills (NIMS), of which PMPA is a founding member, or the Department of Labor Apprenticeship. Implement the training through your people, or rely on a provider of training that can assure the accreditation of the material and also monitor the completion of each training course by each learner. Training can be provided by a face-to-face demonstration of skills on the job by mentors in the shop, while other materials can be provided via an online forum. The online materials and the students’ progress are tracked through the online portal.

Evaluate the Effectiveness of Training

In order to ensure that the training is helping the trainees and the organizations reach their goals, a means to evaluate its effectiveness needs to take place. This can be done by managers or by a professional development committee. Feedback from trainees, their team leads and data from the online portal can help the team further refine their training offerings and methodology. Assessing trainee performance is just as important as identifying passing scores on quizzes and tests. Most employees will pass the coursework, but feedback will help the company refine the training to clarify materials that seem unclear or difficult to master, as well as develop a plan to ensure that each employee has multiple opportunities to meet the requirements of the standard.

Evaluate the Efficiency and Effectiveness of the Program

It is not enough to evaluate the training. It is just as important to evaluate the efficiency, effectiveness and impact that the training provided had on the employees and its impact on the company’s overall performance. Less downtime? Shorter setup times? More independent decision making on the shop floor? Better team-work as trained employees become more trusted employees? What do these mean in terms of uptime, operational fulfillment and bottom line profitability?

What is the Cost of Training?

Better yet, what is the cost of not training? What is the benefit of having qualified personnel, a qualified program and a qualified and aligned team? What is the value of having a standard work of best practices in your shop? How can you get to standard work and best practices without some training means to create that knowledge throughout your shop? Which of your performers could not benefit from some additional training?

How important is funding? Funding is what it takes to bridge the gap between your company’s current performance and your aspiration to be the highest performing shop serving your customers. Appropriate funding is necessary to ensure that training is effective, authoritative and appropriate. Without funding, inappropriate training or lack of training may result in misinformation, some staff remaining uninformed and possibly working dangerously because they have not been trained to recognize unsafe practices.

Overcoming Our Shared Challenges

The challenges we share revolve around the ability to remain consistent in the approach to training and developing personnel. They can be overcome by establishing, administering and evaluating the training that we provide, as well as our program that provides it. Planning, persistence and teamwork are keys to getting this done. When an individual is trained, they feel comfortable with information and guidelines, and thus, become successful as they positively impact those with whom they work.

There is no doubt that all our companies need and can benefit from professional development. There are many resources that will help an individual to grow and develop both professionally and personally. All companies claim to have the ability to communicate, document and provide instruction on the skill sets needed. If we are to achieve our desired professional development outcomes, we must be a savvy shopper and keep our eye on the goal.

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What is the State of the Manufacturing Economy?

By Miles Free of PMPA. This post originally appears on pmpaspeakingofprecision.com and is reposted with permission.

Today our growth is limited by our inability to acquire skilled workers. In the last recession, we were held back by lack of demand for our customer’s end products. Today, we cannot find the skilled people that we require to operate new high tech equipment that is needed to make the high precision parts we produce. 

Our shops are tackling this issue in a number of ways. Some are setting up internal training programs, some apprenticeships.  Several of our member companies are creating on-site schools to teach skills needed. As an industry we helped to create, and are supporting initiatives like Right Skills Now. Right Skills Now uses National Institute for Metalworking Skills (NIMS) credentials to create the skilled workforce that manufacturers require to remain competitive in today’s global markets.

Claim: The President had this to say about employment and manufacturing:

More than 14 million new jobs; the strongest two years of job growth since the ’90s; an unemployment rate cut in half. Our auto industry just had its best year ever. Manufacturing has created nearly 900,000 new jobs in the past six years. And we’ve done all this while cutting our deficits by almost three-quarters. We’ve launched next-generation manufacturing hubs, and online tools that give an entrepreneur everything he or she needs to start a business in a single day.”

Response: We haven’t won this one yet.

“…there has been a gain of 878,000 jobs since February 2010. But Bureau of Labor Statistics data show that the number of manufacturing jobs is still 230,000 fewer than…in the depths of the recession — and 1.4 million fewer than when the recession began in December 2007. Indeed, the United States only gained 30,000 manufacturing jobs in all of 2015.” – Washington Post

Question: Why do we have a skilled workforce shortage when we are at the lowest labor participation rate in ten years?

Work yet to be done on unemployment

Regulatory Hostility (more…)

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Tradesmen Take Note: Earnings by College Major Compared to Precision Machining

I’ve discussed this in previous posts how there are other options besides a 4-year college degree and the debt that comes with it when choosing a career path. Today, discussing salary comparisons, we have a guest post from Miles Free, Director of Technology and Industry Research for PMPA (Precision Machined Products Association).

Many people think that the choice of where they went to school is an important factor in their post graduation earnings.

report from Georgetown University shows that the choice of major has a much greater influence on those earnings.

We thought that we would show how the average wage of a skilled machinist compares to those earnings – without the  4+ years of college and the debt most graduates build up while at school.

Our figures for the skilled machinist were taken from our latest Shop Hourly Employee Wage Report and represent the annual straight time hourly earnings for a setup qualified multiple spindle, rotary transfer, Swiss type, or multi axis CNC turning/machining center operator.

The machinist earnings are a low estimate, frankly, because many machinists are scheduled overtime.

The college major earnings data was posted by Planet Money on the NPR site. It was originally prepared by the authors of the Georgetown study.

Average earnings of setup qualified precision machinists exceed those of lowest earning college majors- with out the college loans to repay

Average earnings of setup qualified precision machinists exceed those of lowest earning college majors – without the college loans to repay.

We were well served by our college degree, eventually. The problem was, when we graduated, we were making more in manufacturing than our degree would earn us in an entry level position in our field.

If you have the passion for academics and a 4+ year university program, that’s great.

But if you know that you really aren’t “scholarship” material, and you’d rather be doing exciting work than writing papers and piling up student debt, we think it will be worth your time to investigate a career in precision machining – or any other craft like electrician, mechatronics, welding, tool and die making, robotics…

Successful completion of high school math algebra, geometry, trig is all that is needed to be able to do the math for precision machining.

We’d love to help you start your well paying career.

More information:

Career overview

Career benefits

Career training

P.S.  I interviewed a member CEO today: Their machinists averaged $50,000 last year, plus top-of-the-line medical, vacation, holidays, personal days, uniforms, plus company paid training and more…You should really give serious thought to gaining a skill rather than a degree.

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