PMPA Business Trends January 2022

 

January 2022 continues the positivity as our PMPA Business Trends Sales Index out performs the FED’s Industrial Production and Manufacturing indexes, as well as the five year average for the January index, up seven and a quarter percent (7.25%) from December 2021’s remarkably high close. Lead times are as high this report as they were last January in 2021- you know how that turned out. There are plenty of issues in the larger world to give us pause, but the consensus of your peers, as given by their data, is one of continued positivity and performance for our precision machining shops in the quarter ahead. 71 respondents.

 
If you are not currently participating in PMPA’s Monthly Business Trends reporting, you are missing a great peer benchmark and a tool to provide you with confidence for your business decisions. Contact Veronica Durden to sign up.

 

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March 2021

Craftsman’s Cribsheet #104

Computer numerical control (CNC) machining is one of the most versatile manufacturing methods, capable of producing parts and components with dimensional accuracy and complex geometries in varying quantities from a wide range of metallic and nonmetallic materials.

Provided by W.H. Bagshaw Co. Inc.
Nashua, New Hampshire

 

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MARKET INSIGHT – Construction Machinery Manufacturing

NACIS 333120 | $34,588,790,000

by Joe Jackson

Marketing & Events Assistant, PMPA

Published March 1, 2022

The construction machinery manufacturing industry is expected to grow significantly in 2022 and beyond due to increasing demand for equipment as well as the passing of a new Infrastructure Bill.

 

Top 5 Companies

  1. Caterpillar Inc., IL
  2. Astec Industries Inc., TN
  3. Hanson Aggregates East LLC, NC
  4. Vermeer Manufacturing Co., IA
  5. Charles Machine Works Inc., OK

 

  • Sales to the construction machinery manufacturing industry makes up approximately 7% of our precision turned products manufacturing industry’s sales in a typical year.
  • If precision machining products are only 1 % of this industry’s spending, that would equate to $170 million in sales opportunity in NAICS 333120 for our precision machining shops.
  • The construction machinery manufacturing industry is one of the most concentrated markets the precision machining industry serves. Of the 1,748 companies verified in this NAICS Code, the top two companies make up over 50% of the sales in this industry.
  • The construction machinery manufacturing industry spends roughly $17 billion on materials, components, supplies, minerals and machinery.
  • The parts that our precision machining shops manufacture provide essential functionality such as fuel injection, hydraulics, and power takeoff to the construction equipment that builds the infrastructure critical to our daily lives.

 

Source: U.S. Census, NAICS.com

 

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Author

Joe Jackson

Marketing & Events Assistant, PMPA

Email: gro.apmp@noskcajj — Website: pmpa.org.

 

 

What’s in a Name? Pride.

Titles matter to employees. Are your operators actually operators? Or do they read prints, check quality, change tooling and adjust oil lines like a machinist? Hmmm…

by Carli Kistler-Miller

Director of Programs & Marketing, PMPA

Published March 1, 2022

What’s your title at work? Does it match what you do every day? Does it match your level of responsibility? Are you proud to tell people your title? Or do you tell them what you do because your title doesn’t tell the story? Titles matter as a form of communication and employee pride. What about your employees? What does their title say about them?

Titles in a Precision Machining Shop

I was at a PMPA Technical Programs Committee and I sat next to Pat Eliason, Shop Superintendent at Roberts Automatic Products in Chanhassen, Minnesota. We were talking about job functions and he mentioned that his pet peeve is when Machinists are called Operators. He continued saying that operators sound like they just push buttons. He currently uses the term Machinist Trainee because he expects them to become machinists. He is also thinking about using Production Machinist or Production Specialist. I started asking around and found that there are several shops who call some employees operators who do more than push buttons. But I could see the wheels spinning, wondering if they should still call them operators. 

What are the titles at your company? Do they reflect the employee level of responsiblitity and what they do? I pulled the list of titles used on PMPA’s Wage Survey:

  • Team/Group Leader
  • Setup
  • Combination, Setup & Operator
  • Operator
  • Trainee – entry level

These are generic titles so that all the participating shops have a place to list their wage. Those work for a survey. But do they work for the human beings who are the greatest asset in your shop? Your employee’s title is part of their identity in the workplace — it’s important to make sure it is the right title. 

Creative Titles

There is a trend for executives to adopt creative titles: Chief Problem-Solver, Number Ninja, Boss of All Things, etc. The upside to creative titles is they can further your brand and show progressive thinking which may lure younger people to apply. The creative titles don’t have to be limited to the office folk — they can work for the shop floor, too.

You could get creative with titles. Perhaps the setup employees are Rookies, Stars and Superstars instead of C, B and A. Maybe your machinists are Machine Masters or Master Makers. You could get really creative with the titles, but keep in mind that they need to be consistent across the employees and reflect what the employee does and their responsibility level.

Recruiting & Retention

Giving your employees the proper title — whether it is traditional or creative — can boost morale. There is pride in being a machinist. There is pride in being a foreman, lead person, engineer or quality manager. There is pride in being in precision machining and the best form of workforce recruitment is recommendations from your employees. If your employee has a title they are proud to tell others, their pride will depict that the employee likes their job, likes where they work and likes what they do. What could that do for your business? 

 

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Author

Carli Kistler-Miller, MBA has over 25 years of experience with
communications, event/meeting planning, marketing, writing and
operations. Email: gro.apmp@rellimc — Website: pmpa.org.

 

 

Workforce Is Still the Most Important Challenge

It is as true today as it was 10 years ago…workforce is top of mind for precision machining shops.

by Miles Free

Director of Industry Research and Technology, PMPA

Published March 1, 2022

In November 2012, after returning from IMTS, I wrote an article for these PMPApages titled “The Most Important Challenge” bit.ly/PMPA-PM0122. I returned from IMTS 2012’s week of sensory overload of new technologies and new ways to achieve the precision and accuracy demanded by our customers. I was struck by the contrast between the optimism these new technologies heralded, compared to the looming reality that our greatest challenge was finding and building the human talent needed in our shops. Everyone that I spoke with mentioned lack of skilled and trained people to work in our advanced manufacturing shops.

In that article, we shared a graphic projecting the demographics in our shops in 2020 (at right). The year 2020 came and went. But our projections for shop workforce hit very close to the mark.

Recently, PMPA surveyed our Manufacturing Member shops to help us determine what is top of mind for our work in Washington D.C. Over 18% of shops eligible to participate responded, and we learned that workforce continues to be our No.1 concern.

The above graphic was the prediction in December 2012.

The above graphic was the prediction in December 2012. Image Credit: PMPA

A look at the numbers shows that our 2012 analysis was very close to target. On our December 2021 survey (upper right image), the age brackets were different, but 41% over age 50 in the current survey closely agrees with “more than one in three (33%) employees will be over 55.”

When comparing the latest survey numbers with our projection in 2012, it appears that many of the oldest demographics have already left our workforce. This is easy to understand given our experience with COVID-19 in the past year, COVID-19 early retirees top 3 million bloom.bg/34gUZ0O.

It is also understandable by looking at the increase in people’s savings — particularly in retirement accounts. Retirement accounts are at a new high. cnb.cx/3g6qj59

What do these numbers mean for our shops?  Here are a few ideas to consider given this look at the makeup of our workforce today:

  • We seem to have already lost a lot of our more experienced performers — capturing and sharing the expertise that remains should be a top priority.
     
  • The talent seems to be spread evenly by age, so upskilling needs to be across your entire workforce, not just the new hires.
     
  • Don’t look at training or mentoring as a one-way process. In my MBA teaching, I deliberately pair younger students with older, more experienced students. While the older students have experience to share, I have found that the younger students earn their respect as well as improve their skills by helping their older partners get comfortable with the new technology that is being used in the classroom. Create a process for capturing your processes and process knowledge. Many of our shops are ISO 9000, AS9100 or similar for management systems, so documentation shouldn’t be an issue. And yet, there are many things that have been worked out by our performers that actually empower and facilitate those formally documented processes. What are they? Who has them? How can they be learned across the entire organization?
     
  • Safety too. Our workforce performers are valuable — critical to the success of our businesses. As I said in 2012, “It is skilled people that help our companies produce the high-precision, engineered components that make U.S. manufactured goods the gold standard which has been the only bright spot in the post-recession of the 2008-2009 recovery. Our industry has increased sales by double digit growth the last 2 years. But this trend cannot continue if we do not find a way to recruit and train more skilled people for our shops. The precision machining industry will not be able to grow our capabilities without adding skilled workforce. Many companies are already at their limit for what they can do without adding more talent — whether in engineering and quoting, project leadership and implementation, setup or operations. And who is making sure that our efforts for quality improvement remain a priority when we are in all-hands-on-deck mode?”

Those remarks are just as relevant and valid today as they were in 2012. And they highlight our duty to ensure the safety of these most valuable performers (MVPs). They are the people who are making the things that make a difference. They are the people who are satisfying the demands of our customers. Their safety is a critical part of our plan for success in 2022.
Workforce is still the most important challenge. The facts from our work in 2012 and our latest survey indicate that addressing this may just be the most important priority we have in 2022. Without sufficient workforce, we have no assurance that we can satisfy the continued peak demand that our customers trust us to deliver.

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Author

Miles Free III is the PMPADirector of Industry Affairs with over 40 years of experience in the areas of manufacturing, quality, and steelmaking. He helps answer “How?, “With what?” and “Really?” Miles’ blog is at pmpaspeakingofprecision.com; email –  gro.apmp@eerfm; website – pmpa.org