Manufacturers Still Have Job Openings Despite Unemployment November 18, 2009
Posted by Jeff Fuchs in economy, manufacturing.Tags: manufacturing, economy
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Manufacturers have unfilled job openings for high-skilled workers, according to a study by Deloitte, The Manufacturing Institute and Oracle.
The study found that “almost one-third of companies reported some level of shortages.” Companies are “having difficulty finding skilled production workers, scientists, and engineers.” The study also “found that manufacturers aren’t working to find these types of workers, or are depending on largely ineffective traditional approaches to managing and developing their employees.”
Mark Tomlinson, executive director and general manager of the Society of Manufacturing Engineers says that “manufacturers are looking for employees who are the opposite of the stereotypical factory worker doing repetitive, assembly line work. They are in need of 21st century workers with specialized technical training such as machinists, operators and technicians.”
Read more here.
Innovation at the San Diego Zoo Saves $$$ November 18, 2009
Posted by Jeff Fuchs in Creativity & Innovation, economy.Tags: Creativity & Innovation, economy
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Nonprofit organizations are consistently confronted with financial woes. For the San Diego Zoo, those problems include the accumulation of revenue in order to fund initiatives dealing with conservation and educational research as well as maintaining the zoo itself. Even with 4.5 million visitors, $200 million in annual revenues, and being able to show a $13 million operating profit, the San Diego Zoo found that it could not sustain itself on its current path. So it turned to innovation and opportunity mapping in order to focus on three specific targets for growth, including strength and credibility, conservation relevance through connecting people to conservation, and conservation leadership. The article at BusinessWeek has an excellent analysis of the creation and breakdown of San Diego Zoo’s opportunity map, as well as the strategic aims it is pursuing.
Check out the article here.
County Exec Calls Six Sigma a Survival Tool October 30, 2009
Posted by Jeff Fuchs in economy, six sigma.Tags: economy, six sigma
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Chris Collins has embraced Six Sigma both in the private sector and in his current role as executive of New York’s Erie County. And he said he believes the business discipline can be a lifeline for companies during tough economic times.
Lean Six Sigma is probably the best survival tool there is. And someday as your competitors go out of business, I have a saying: If you’re the last restaurant in town, you’re going to be busy Saturday night.
Erm, I’m not quite sure what he is driving at there, but read the article anyway here.
Report: Rising Costs on Manufacturers Threaten Job Growth, Competitiveness October 30, 2009
Posted by Jeff Fuchs in economy, manufacturing.Tags: economy, manufacturing
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A new handbook produced in by The Manufacturing Institute, the Manufacturers Alliance/MAPI and the U.S. Department of Commerce, concludes that U.S. manufacturing is being challenged by increasing costs including corporate taxes, health care and pensions, regulations and energy and tort litigation.
Manufacturing continues to generate more economic activity per dollar of production than any other business sector in the country. And manufacturing drives innovation by conducting nearly half of all research and development and creating the bulk of technology in the nation.
Read the article here.
GM To Shut Down Saturn Brand October 12, 2009
Posted by Jeff Fuchs in Lean Thinking, automotive, economy.Tags: automotive, economy, Lean Thinking
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GM's Bob Lutz: Kiss my Astra.
At the beginning of October, news hit the streets that Saturn, GM’s experiment of “A new kind of car company. A new kind of car.” had come to an end. Saturn was unique. It was lean. It was collaborative. It was innovative. All this, for a while. Over time, GM failed to invest and back the Saturn brand. As an owner of two Saturns myself, it was disappointing to see GM water everything down. GM senior leadership’s lack of investment, commitment, and vision were a slow death for Saturn. The deal by former racing legend Roger Penske was a longshot, and in the end, it failed.
In Michigan, A Yellow Light For Green Jobs October 12, 2009
Posted by Jeff Fuchs in economy, green business.Tags: economy, green
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The Washington Post recently reported on Michigan governor Jennifer Granholm’s efforts to bring green jobs to her ailing state. It summarized the article by stating that “if the future of American manufacturing lies in green industries, the Michigan governor’s pursuit of jobs offers a cautionary tale.”
The Post cited the low number of actual jobs created and other factors that, it appears, left their reporters and editors a bit flat.
Personally, I read this article and found the efforts heroic. Michigan has countless issues stacked against them as the government tries to staunch the flow of jobs. Were I the governor of one of the other 49 states, I would take Michigan’s efforts as a pretty decent template, Governor Granholm’s priorities and personal foibles notwithstanding.
What do you think? Is the future of economic recovery in green jobs?
Read the article here.
New Survey Identifies Strategies For Manufacturing Success October 12, 2009
Posted by Jeff Fuchs in economy, manufacturing.Tags: economy, manufacturing
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The Society of Manufacturing Engineers and Foster’s Daily Democrat report that “the New Hampshire Manufacturing Extension Partnership announced the results of the a national survey of manufacturers.”
Based on a “national survey of more than 2,500 manufacturers, the study identifies six crucial strategies necessary for world-class manufacturing success.” The study “offers a detailed description of what it takes for American manufacturers to compete in the global economy.” The study identifies essential strategies including “customer-focused innovation” and “extended enterprise management.” The survey data also “reveals a sobering picture of the challenges facing American manufacturers.”
Read the story here.
Remanufacturing America’s Factory Sector – a Call for a National Strategic Vision October 10, 2009
Posted by Jeff Fuchs in Creativity & Innovation, economy, government, manufacturing.Tags: Creativity & Innovation, economy, manufacturing
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In a recent Business Week article, Thomas D. Kuczmarski argues the case for a national, coordinated strategy to unleash the power of American innovation, with the target of dramatically increasing domestic manufacturing as the economy rises out of recession, as it eventually will.
“Conventional wisdom says American manufacturing jobs are gone forever, outsourced to low-wage, low-regulation nations.” Mr. Kuczmarski disagrees. Citing such sustainable advantages as a stable legal environment, lack of relative political risk, and simplified logistics, the author challenges industry leaders and the Obama administration to build a national effort to craft a coherent, actionable plan for the revitalization of the U.S. manufacturing sector.
For the complete article, click here.
Are Americans Working Harder and Getting Paid More? April 5, 2009
Posted by Jeff Fuchs in economy, government, manufacturing.Tags: economy, government, manufacturing
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On her Lean Reflections blog, Karen Wilhelm takes aim at statistics. With the economy in the tank, we hear facts and figures quoted every night, it seems, on the news. But what do these numbers really mean?Wilhelm highlights a recent article in the New Yorker as an example. By scrutinizing the details, she shows how sketchy, and potentially misleading, Bureau of Labor Statistics stats such as “average hourly wage” and “productivity” can be. The problems this raises are manifold. Numbers are not what their labels often lead us to believe. By reading too deeply, we can draw incorrect conclusions. Also, policymakers use these numbers to create policy decisions, often based on poor data and poor understanding of the data.
Read this post. The next time you get a sense of accomplishment when you hear that “manufacturing productivity in the U.S. increased last quarter,” you may want to think twice.
Read the post here.
Are Your Lean Initiatives Working? April 5, 2009
Posted by Jeff Fuchs in Lean Thinking, economy.Tags: economy, Lean Thinking
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As the global economic downturn deepens, cash-strapped companies are looking for ways to cut costs and increase liquidity. One way to get fast results is to refocus your lean efforts on the basics — and correct the bad habits that are undermining results. Besides generating much-needed cash, you’ll make your company stronger and better positioned for the upturn.It’s critical to take a closer look at whether your lean initiatives are really boosting cash flow and improving the bottom line, especially during tough economic times. Well-executed lean programs can cut lead times and quality costs by half, increase productivity by 10% to 30%, and reduce inventories by 30% to 50%. What’s more, quick wins can deliver a large share of these savings. The problem is that lean is rarely done thoroughly and effectively. Companies frequently slip into costly bad habits that prevent them from achieving or sustaining these results.
This article describes the five bad habits The Boston Consulting Group sees most often.
Read them here.
Revolutionary New Skills Certification Prepares Workers for Unfilled Jobs April 5, 2009
Posted by Jeff Fuchs in economy, manufacturing.Tags: economy, manufacturing
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The Society of Manufacturing Engineers (SME) is partnering with the National Association of Manufacturers (NAM) and The Manufacturing Institute to create a new skills certification system with the potential to help millions of U.S. workers succeed in high-quality, middle-class jobs.The NAM-Endorsed Manufacturing Skills Certification System will revolutionize education and training for 21st century manufacturing by providing skills assessments, standardized curriculum requirements, and portable credentials that validate the attainment of these critical competencies required by industry.
At a time when millions of Americans face unemployment, manufacturing jobs with excellent salaries – and across all skill levels and sectors – are unfilled because of the lack of qualified applicants. Tough economic times call for clear pathways to skills in demand.
John Engler, NAM president and CEO
This new skills certification system – based on skills and competencies identified by manufacturers – will assure manufacturers that new hires and existing employees have the core academic and workforce competencies required for their position.
Read the full article here.
Just In Time — Manufacturing is not an Ideology April 5, 2009
Posted by Jeff Fuchs in economy, manufacturing.Tags: economy, manufacturing
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IndustryWeek’s David Blanchard notes that, historically, the manufacturing industry has proven to be resilient enough to survive even the most lame brained attempts by politicians to cripple it, but these days, the one-two-three punch of tight credit, a bad economy and a manufacturing-unfriendly political climate casts the near-term vitality of industrial America in doubt.He suggests that,
…Only by continuously improving their production processes and their workforces will U.S. manufacturers be able to stay in business and successfully compete. If your 2009 strategy was to wait for the government to pull you out of this recession, it’s time for a new strategy.
Read the full article here.
Five Reasons to Make Hardware Instead of Software April 5, 2009
Posted by Jeff Fuchs in economy, manufacturing.Tags: economy, manufacturing
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We were told it was passé. The stuff they used to do in Detroit in the 1970s was not fit for the new Millennium. This article from FastCompany magazine is in praise of making things – the opposite of the business belief system that got us into the current economic mess. Let’s make hardware!
Read the full article here.
CFOs Say Offshore Outsourcing to Decline March 10, 2009
Posted by Jeff Fuchs in economy, supply chain.Tags: economy, offshoring, supply chain
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In a new survey, chief financial officers at leading U.S. technology businesses say they’re more likely to consider the U.S. as an outsourcing destination for services and manufacturing over China and India in 2009. Already, it appears that technology companies have started to pull back, according to the BDO Seidman 2009 Technology Outlook Survey, an annual survey of CFOs conducted in January. Only 42% of the 100 CFOs surveyed said they have operations outside the U.S., compared to 79% last year.
Read the full article here.
Recession Pain? Leaner Thinking Offers a Better Way March 10, 2009
Posted by Jeff Fuchs in Lean Thinking, economy.Tags: economy, Lean Thinking
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Craig Barrett, recently retired CEO of Intel, told Newsweek readers, “There is a general rule in business life: market share is won or lost during transitions. You cannot save your way out of a recession, you can only invest your way out.”Adam Zak states that no one is denying that cutting costs is essential to surviving 2009, but we Lean disciples have always practiced a different philosophical approach.
Adam looks beyond crisis mode, describing ways in which Lean can accelerate the impact of changes.
His blog post is insightful and inspiring.
Read the full article here.
How to Inspire Workers in Tough Times March 10, 2009
Posted by Jeff Fuchs in economy, leadership.Tags: economy, leadership
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Despite living through possibly the worst economic recession since the Great Depression, some offices may still be filled with truly motivated people-energetic, driven, ambitious, hard-working, competitive. These are just the sort of traits needed to turn a company around. But most CEOs these days are struggling to figure out how to deal with downsized workforces populated with employees who suffer from a long list of a very different variety of social characteristics. Among them: dread, apathy, passivity, carelessness, and possibly even resentment.Jon Katzenbach, CEO of Katzenbach Partners, has built a career out of cracking the code to inspire people. The author of The Discipline of Teams and The Wisdom of Teams: Creating the High-Performance Organization, Katzenbach argues that the key to encouraging people has more to do with figuring out how to connect them emotionally to their work than throwing money or promotions at them.
BusinessWeek’s Emily Thornton recently talked to Katzenbach about how his philosophy can be applied during this recession. The article includes edited excerpts from their conversation.
Read the full article here.
New Economic Thinking Required: Successful Companies Will be Proactive March 2, 2009
Posted by Jeff Fuchs in Lean Thinking, economy.Tags: economy, Lean Thinking
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The signs are everywhere that the U.S. and much of the rest of the world have entered into a deep recession which will require governments and companies to make unprecedented changes in policies and execution.The current economic environment requires new management thinking with respect to product markets and how to smooth the ride over the business cycle. At the same time, fundamentals of cost cutting, cash flow, balance sheet management and productivity improvement must be kept front and center. We have entered a new economic environment that will require a higher level of innovation and productivity.
When a deer steps into path of an oncoming vehicle, it either freezes or takes action by jumping out of harm’s way. Those that do not take action face an unpleasant fate. Much like the deer in the headlights, the worst action leadership can take in the current economic environment is to do nothing.
Successful companies will move to improve performance on four fronts. This article explains them further.
Solving the Riddle of Supply Chain Cost Reduction March 2, 2009
Posted by Jeff Fuchs in economy, supply chain.Tags: economy, supply chain
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Unless you are a hermit who has been stranded on a deserted island for the past 12 months, you get it — we are in a recession.Let’s see what all the “smart” companies are doing, in manufacturing and in other industries. Many are cutting payroll, cutting advertising, cutting consulting, and cutting strategic initiatives.
So should you follow along and also cut, cut, cut? No, because this is not a strategy that leads to success. Across the board cuts, without understanding where your company’s real profitability lies, results in average performance at best and leaves your organization wide open to failure at worst. That old saying, “When you do average, you get average” applies more than ever in these volatile times.
Read the article here.
It’s Engineers – Not Bankers – Who Create REAL Wealth February 16, 2009
Posted by Jeff Fuchs in economy.Tags: economy, manufacturing
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President Obama said recently, “investing in science, research and technology” are paths to financial recovery.And Congressional leader Nancy Pelosi said in a recent radio interview that if you want “four words to describe” the economic recovery package “it’s science, science, science and science. The science, technology and engineering…to keep us competitive in the future. This is not your grandfather’s public works program of the 1930’s…”
This renewed national interest in science and technology couldn’t come at a more opportune time as National Engineers Week kicks off February 15-21, 2009. Each year, this national campaign is designed “to raise public understanding and appreciation of engineers’ contributions to the larger society.”
And just what do engineers do? Above all, engineers create real wealth by solving problems rather than creating “paper” wealth by playing with the stock markets.
The Soiciety of Manufacturing Engineers recently ran an excellent article on the value of engineering, which the recent financial crisis has served to underscore.
Read the full article here.
Of Course Inventories Are Swelling in Long, Slow Supply Chains February 16, 2009
Posted by Jeff Fuchs in Lean Thinking, economy, supply chain.Tags: economy, Lean Thinking, supply chain
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The LeanBlog notes a recent Wall Street Journal article that observes how inventory is backing up in transoceanic supply chains. Business leaders are frustrated.
To WSJ and business, all I can say is, “Well, duh.”
As the post notes, the WSJ spot quickly turns to the power of information technology as a way out. Blog author Mark Graban then does a great job linking the problems the WSJ article notes to a classic supply chain simulation. Information is not a savior here – a lean supply chain is. Graban goes on to link the article’s main points to good lean practices. Bravo.
Like Mark, I for one hope that the current economic crisis drives business practices a different way in the future. Hopefully, our emergence from this situation will see more companies developing shorter, leaner, more responsive supply chains with good lean accounting practices that show costs more accurately and holistically. While we’re at it, we can build strong, close relationships with companies and countries that have better labor practices, environmental compliance, and product safety.
Read the LeanBlog post here.
Obama Needs a Secretary of Innovation February 16, 2009
Posted by Jeff Fuchs in Creativity & Innovation.Tags: Creativity & Innovation, economy
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BusinessWeek’s Thomas D. Kuczmarski ponders the importance of hiring a chief innovation officer to join the new presidential administration. Government officials, he says, often don’t see the need. They argue that innovation is everybody’s job. Or they confuse it with research and development and say it already is being done. However, he says, innovation is a multidisciplinary and disciplined process that needs to be managed and led. If everybody is in charge, then nobody is, and little gets accomplished, if anything at all. Or worse-and this may sound familiar to anyone who has followed Washington-there is a lot of action based only on guesswork, not on a careful exploration of what really is needed.Now, in the midst of recession, companies need to innovate more than ever. Yet too many are choosing instead to hunker down, postpone investments in R&D, and avoid risk-taking until the market has stabilized. The companies that continue to build an innovation culture and make modest investments to keep the innovation pipeline full will be the ones that enjoy a big competitive advantage a few years from now.
Read the thought-provoking article here.
How does this apply to your company and innovation in a downturn?
Adjusting Continuous Improvement in Hard Economic Times February 16, 2009
Posted by Jeff Fuchs in Lean Thinking, economy, six sigma.Tags: economy, Lean Thinking, six sigma
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The events of the last few months can only be described as an economic perfect storm. Both junior companies and large conglomerates around the world went from planning their next multi-million (or billion) dollar expansion to putting projects on hold and cutting production, seemingly overnight.The focus should now be on managing costs, controlling expenses and improving efficiencies. It is the perfect time for continuous improvement initiatives to step up and show their worth. These initiatives, however, need to adjust their strategies so that the most value is returned in the shortest period of time. To do this, continuous improvement professionals need to:
- Concentrate on core processes
- Speed things up
- Create a sense of urgency
- Cut costs faster than falling revenue
Read the full article here.
A Resource Guide for the Unemployed February 9, 2009
Posted by Jeff Fuchs in economy.Tags: economy
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- Job-Hunting Realities: What ‘No’ Really Means. Oftentimes, rejection usually has more to do with the company than with you.
- Advice on Career Advancement in Tough Times: Focus on helping the company, don’t attack rivals, and know the pressures on your boss .
- How managers can help their people and themselves in adjusting to new business realities.
- Downsizing 101: Describes your ethical responsibilities if you are charged with giving someone the bad news.
- Recession-Proof Jobs: Highlights software development and sales positions, among others.
- Timing a Layoff to Get Severance: Key advice here is that if your company hasn’t offered you a bonus to stay until layoffs begin, start looking for a job now.
- As the economy struggles, one article warns that some companies are cutting severance benefits along with workforces.
- A video describes that with a lot less money to draw from in their retirement, many retirees are out looking for jobs.
- An article that notes that the benefits offered to unemployed workers – and whether your job situation qualifies for benefits at all – vary greatly from state to state.
- The latest news that projects future numbers, identifies repercussions, and looks at private and public fixes.
- The U.S. Labor Dept.’s Unemployment Insurance (UI) programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own and who meet certain other eligibility requirements.
- Reports that unemployment rates are dropping make us happy; reports to the contrary make us anxious. But just what do unemployment figures tell us? Are they reliable measures? What influences joblessness?
- The National Employment Law Project: An online forum created after the 2001 recession for the nation’s jobless and underemployed workers.
Find the links in the article here.
Half a Million Job Cuts: Is There a Strategy Behind the Layoffs? February 9, 2009
Posted by Jeff Fuchs in economy.Tags: economy
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In a single week in January, corporations around the world laid off nearly 100,000 workers. Since September last year, more than half a million jobs have been eliminated, even at companies that were doing well some time ago. A number of observers are blaming this trend on the economic downturn or on a restructuring of the global economic system. But is this really the case? According to experts from Wharton and elsewhere, what companies are experiencing is neither an indication of a transformation nor a blanket prognosis for the rest of the economy. Instead, they say, the job announcements highlight operational weaknesses and strategic issues that have been lurking under the surface for years.
Read the article here.
The Hidden Downsides of Layoffs February 9, 2009
Posted by Jeff Fuchs in economy, workforce.Tags: economy, workforce
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A typical knee-jerk reaction of companies to bad financial conditions is to lay off workers. From one view, you can understand the managerial logic. When revenues drop enough, you lower expenses or lose money. But it turns out that companies are opening a veritable Pandora’s box of issues and problems when they show enough people the door, and the total cost might well exceed the savings. One of the most documented issues is that mass layoffs often leave companies worse off financially than they were.There are other problems, however:
A company will face severance costs, outplacement costs, damaged trust and credibility, and loss of knowledge from skilled workers who leave. Big job cuts can also affect the employees who stay. Declining morale means lower productivity – many will spend time looking for new jobs. Employees will tend to be less innovative, and less willing to take bold steps to solve problems.
Read the full article here.
