Mind the Gap: Making kids aware of manufacturing jobs

  By Chris Ilcin, Account Superintendent, Sonnhalter One of the things that always struck me about manufacturers is they generally don’t realize how cool their jobs really are. And I get why. You’ve been doing this your whole life, it pays the bills and it has its disappointments, headaches and setbacks. But manufacturing made the modern world we live in possible. And the stuff you see as routine, through anyone else’s eyes is really, really cool. Don’t believe me? Ask a bunch of middle school kids in Pennsylvania. 12223read more >

Why Have Marketing in Manufacturing?

Today we have a guest post from Andrea Olson. Industrial organizations rely heavily on a direct, distribution or dealer sales force for growth. Many of these companies have built themselves from the ground-up through street smarts, sweat, and hustle. With many sales build upon long-term relationships, why does a manufacturer need marketing? Aside from creating the brochures, maintaining the website and coordinating trade shows, how can marketing help grow the business? It's a frequent misconception that many manufacturing leaders have a hard time getting their minds around. The function of marketing has degraded in recent years, with the advent of "do-it-yourself" tools, allowing the tactical nuts-and-bolts of marketing implementation to be done by more junior staff. In addition, many mid-market manufacturers really never had the need to utilize marketing 50, 60 or 70 years ago - having built the business on a unique invention (at the time), penetrating an under-served market, or establishing a contract with a few large OEMs. The problem today is that things have changed. Most notably: 12088read more >

Ohio State center will help regional manufacturing companies grow

At The Ohio State University, a coalition of Federal, State, local and private interests are investing in the future of manufacturing. The new Center for Design and Manufacturing will bring together educators, innovators and manufacturers to identify and execute growth strategies. Find out more about this program in this excellent article from Nate Ames, the Engineering Manager for The Ohio State University. Ohio State center will help regional manufacturing companies grow The Ohio State University’s Center for Design and Manufacturing Excellence (CDME) will receive up to $8.6 million in federal, state and industry funding over the next five years to lead a program facilitating growth of small- and mid-sized manufacturing companies in the 15 county central Ohio region. The program is funded by the National Institute of Standards and Technologies, with matching funds provided by the Ohio Development Services Agency, which administers operations through seven regional affiliates. 11203read more >

Creativity is the Key

By Chris Ilcin, Account Superintendent, Sonnhalter It took creativity to start your business, and it takes creativity to keep it running every day. So why not apply that same creativity to the greatest challenge facing the manufacturing industry: the lack of skilled tradesmen and tradeswomen? The time to act is now. Waiting for someone else to plug the hole simply won’t work. Schools’ budgets are squeezed too tight. Government agencies are interested in quick fixes, not long-term solutions. You need to find the next generation of workers. You have two huge advantages: as a manufacturer you’re used to seeing a problem from all angles and creating a solution. And your jobs are actually cool. They allow people looking for a challenge to use their minds and hands together to build something. So how do you reach future workers? Show off what you do! Take this example from Birmingham Georgia. A normal company would just see this as another contract. Another job. But BL Harbert saw an opportunity. The Barber Vintage Motorsport Museum is one of the most innovative museums in the world. Why not use it as a draw to show how their skills and abilities help make it that way? Partnering with Go Build Alabama, they arranged for 120 students to get an exclusive behind-the-scenes tour of its museum expansion. Now, we can’t all be working on projects at cool museums, but believe me, much of what you do looks really cool to an outsider, especially when placed into the larger context of what it’s helping to create. I wish I could have seen a CNC machine in action when I was 16 or even a welder or PEX pipe. When you see what a little creativity can do to make the world a better place, or just to improve on…read more >

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…read more >

4 Ways manufacturers Can Gain Better Pricing Data Visualization

This post originally appeared on INSIGHT2PROFIT.com Pricing data can be dense. If no one is reviewing it, managing it, comparing it or scrutinizing it, it’s likely your organization is missing price leaks you could otherwise put a stop to. From volume discounts to price overrides, profits are lost and margins are cut, but do you know by how much? Can you identify your true pocket price for your top selling products? If not, you may have a data visualization problem. But like any problem, a solution exists, you just have to seek it out. Here are four ways to gain better visualization into your organization’s pricing data. 1. Establish Pricing Ownership: In most manufacturing businesses, pricing is a responsibility divided amongst marketing, sales, finance, product teams and other executives. But whose job is it to see the big picture? If you can’t validate hiring a pricing manager, you can develop a Pricing Ownership Matrix. In a decentralized customer environment where no pricing leader is appointed, you can define pricing area ownership. Consider catalog and list pricing, discounting, key accounts, geography and business divisions. Then ensure these “area owners” meet often to talk about the big picture of pricing. 2. Search Out Discounting Visibility: Do you know how many discounts your sales team is offering? How about your customer service team? From freight and volume discounts to rebates and “long-time customer” pricing, the hits to your margins add up. Obtaining clear visibility to your discounting structure through a Pricing Waterfall is a powerful way to determine pricing leaks and non-value added discounts. Discover how to determine your true pocket price in the this 1-minute video. 3. Determine Product Value: Your organization deserves to be paid for the value it creates. But do you know which products create the most value for your company? Most…read more >

3 Pricing Adjustments Manufacturers & Distributors Should Make Now

This post originally appeared on INSIGHT2PROFIT.com Years ago, an Ohio-based specialty metal business made the decision not to charge for freight costs, even though their products were extremely heavy. The rationale? None of their competitors were charging, so they couldn’t either. In reality, this company was  No. 1 in the industry, so all those competitors were actually just following their lead. When the company realized what was going on, it had the opportunity to change the policy for its entire industry. And so it did—collecting more than $1 million in additional revenues. Smart companies know pricing strategy isn’t just about the price on the invoice. To have an immediate impact on your bottom line without formally raising prices, here are three areas to tackle first. 1. Freight Costs If you’ve been operating for decades, your freight policies have probably been in place just as long. Maybe you don’t charge for freight at all, or fees are the same across all territories—or you charge the same as you did 50 years ago even though shipping rates have risen dramatically. To start, ask yourself: When was the last time our freight terms were updated? What is our justification for our freight policy? What are our competitors doing in this space? This line of questioning can help internal stakeholders determine if there’s opportunity for improvement without much effort, as the aforementioned specialty metal business discovered. 2. Rush Orders When you place an order on Amazon.com and you want 2-day shipping, you understand you’ll have to pay premium pricing—in this case, $99 for a year of Amazon Prime. Your customers realize this, too. Yet many manufacturers and distributors don’t charge extra for rush orders. If your lead time is two weeks, but your buyer needs his order in three days, are you charging extra? In order to get that order…read more >

Save the Date! Oct 2 is National Manufacturing Day

Rachel Kerstetter, PR Architect at Sonnhalter National Manufacturing Day, or MFG Day, is October 2nd, which may feel like a long way off from right now, but you should start planning today. If you’re a manufacturer, you should plan an event. Not sure what type of an event to plan? There are a variety of options for hosting an event, ranging from full day tours and sessions to half day learning seminars, or even 1-hour presentations. If you’re not a manufacturer, you should attend an event. You can find Manufacturing Day events in your area using this interactive map. If you’re planning to host an event for MFG Day in October, here are a few tips to make it successful: Set goals for your event. Do you want to improve your company’s image in the community? Do you need to recruit new talent? Do you want to contribute to changing the image of manufacturing? Figure out what you want to accomplish with your event and then create your plan. Identify your target audience(s). Based on the needs of your organization, some potential audiences to invite include local technical school and high school administration, faculty and students; local and regional politicians; local and trade media; family and friends of your employees and/or the local community as a whole. Put together a simple agenda. Include time to introduce your company and tailor your event to the audience that you’re inviting. Plan informative and interactive activities. Facility tours, brief presentations on different roles and Q&A sessions are easy to arrange and are effective. Promote your event. Be sure to list your event with mfgday.com, use your network to promote, and personally invite your target audience and promote your event through your existing channels including on your website and social media. Not available on…read more >

Fabtech Expo Recap

Rachel Kerstetter, PR Engineer, Sonnhalter I had the opportunity to attend the Fabtech Expo in Atlanta last week. It was my second year at the show and I am continually impressed by the immensity of this industry. The expo brought together more than 27,000 attendees and 1,400 exhibitors covering more than 500,000 square feet of the Georgia World Congress Center. Fabtech kicked off on Veterans Day and it couldn't have been more fitting since Workshops for Warriors was selected as the recipient of the Fabtech Cares campaign. Workshops for Warriors is a wonderful organization that I had the pleasure of writing about last year in Production Machining magazine. Workshops for Warriors, a 501(c)(3) non-profit organization dedicated to training, certifying, and placing veterans in manufacturing careers. It's no secret that manufacturers are looking for new sources of talent. At the same time, many former members of our armed forces are looking for work. Workshops for Warriors combines these efforts, giving American veterans and wounded warriors the skills U.S. manufacturing employers need. Veterans who are transitioning back to civilian life provide a vastly untapped talent pool of hardworking and disciplined talent for the manufacturing industry. Fabtech hosted a panel on the first day of the show on bridging the skills gap with veterans. You can see the progress of the fundraiser (and donate) here. Reshoring of manufacturing was definitely another popular topic. The Day One keynote actually came from Cindi Marsilgio, the VP for U.S. Manufacturing at Wal-Mart. The company has pledged to buy $250 billion of products made in the USA over ten years to encourage the creation of U.S. jobs. (You can read more about the keynote and Day One highlights on Fabtech's blog.) When walking the show and helping out in various booths, I heard the question, "Where are your products made?" Many…read more >