You’ve heard “we can’t find anyone” and “the brain drain” and a half-dozen other statements and metaphors if you are keeping on top of the local economic outlooks.
Here’s some data about manufacturing, courtesy of the Catawba County Economic Development Corp.:
U.S. manufacturing is the 10 th largest economy in the world. At $1.84 trillion a year, it’s larger than the economies of India, Canada, Australia, Spain or Mexico.
The U.S. is experiencing an increase in on-shoring and in-sourcing for localization of manufacturing due to changed transportation costs, time to market proximity, and energy costs. The cost of natural gas is four times more expensive in Asia than here. Germany is closing nuclear power plants, meaning energy dependency will shift to fossil fuels, driving those costs up further.
The cost of labor in China is five times more expensive than it was in 2000, and is expected to increase by 18 percent annually.
U.S. labor productivity is at an all-time high, which makes the cost of labor a smaller proportion in the total cost of finished goods.
Dave Colburn, president and CEO of HSM, recently said that diversification of manufacturing is a necessity in today’s market. HSM is looking at the diversified transportation market, he said, which means different manufacturing processes and the need for employees skilled in technology and engineering.
But, he said there were lots of other jobs, as well — good jobs.
“Hot Jobs,” a video produced by Champions of Education, an initiative of Catawba Valley Community College, focuses on the various opportunities in manufacturing. The first of many videos, it highlighted modern furniture production. Upholsterers can make from $30,000 to $60,000 based on experience, and sewers and cutters, from $25,000 to $50,000 a year, according to the video.
That’s not chump change.
“How do we change the image?” Colburn said of manufacturing being a dirty and cluttered work environment. “Over three million jobs across America are sitting vacant.”
He questioned to what degree was the need for skills, or for experience. He mentioned experienced employees in his company who were near the age of retirement, and wondered who was coming along to replace them? How were those people being trained?
“We don’t do internships. How do we expose high school students to manufacturing?” he said.
Colburn told how HMS updated fabric printing machines at one point. Operators with 25 years’ experience were suddenly producing greatly reduced quality. Why?
“We found out that the control panel of the printing machines had changed, and that a number of our operators were not able to adapt and learn the new panels because they could not read and write,” he said. “We have to go outside the area to find employees.”
In response to a recent question about jobs on the Record’s Facebook page, comments ranged about local hiring practices.
“They want experienced workers but how are you supposed to get experience if they will not hire you in the first place?” asked Douglas Price.
David Cox added, “Some employers are just being too picky about who they hire, kinda taken advantage of the unemployment situation…they need to just start giving people more of a chance! If they can’t find workers it’s their own fault!”
Roger Bower countered by saying that keeping a business profitable is not about taking chances.
“M ost people today are more interested in when their breaks start, when lunch is, what time they get off, and how much vacation time, all while not being able to put their cell phone down,” said Bower. “This is funny to me, because these same Americans wanting jobs, are substandard in their work as they complain about immigrants who work [hard] … Just go to work, do your job, pay your bills and stop complaining.”
Related to Bower’s comment, Joy Evans, controller at Dalco Nonwovens in Conover, recently talked about the kind of employee Dalco is looking for.
“We need individuals with flexibility, who know how to care and be committed,” she said.
Colburn said that young people are not committed because they know they’re transferable with their skills, and have no reason to remain committed.
Next week: The job quandary — what has happened to employee/employer commitment?
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