Author Archive

Opportunities worth trumpeting

October 15th, 2012
By: Tim Heston

We all know wage growth in this country is next to nothing. It’s one reason why the presidential election season has been so contentious. Employees continue to work harder than ever, while employers hesitate to hire more.

But metal fabricators and other manufacturers have another problem: Some would like to hire more, but they can’t find the skilled talent they need. It’s been this way for years, of course, and politicians know this, which is why legislatures and government administrators are launching programs like the  Right Skills Now initiative to address the problem.

If skills are in high demand, many assume that higher pay would follow that demand, and to some extent it has, as reported by the Fabricators & Manufacturers Association’s Salary/Wage & Benefit Survey. A code-level welder’s (one certified to certain industry codes) average salary has risen more than 3 percent since 2010--not very impressive, but the growth isn’t nonexistent, as so many people have experienced since the recession.

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Why supply chain innovation matters

October 2nd, 2012
By: Tim Heston

Innovation has been said to be at the heart of business success, but in a contract fabrication shop that often doesn’t entail product design, where is that innovation? According to a recent publication by the consultancy Plante Moran, titled the 2012 Innovation Quotient Survey, innovation doesn’t necessarily mean product innovation. It also can be process innovation, like innovative manufacturing methods or technologies. And there are innovations within supply chain relationships.

Jeff Mengel, leader of Plante Moran’s manufacturing group, described how such innovation changes customer relationships from one that’s simply a matter of convenience into one that is intimate-- not in the romantic sense, of course. Instead, Mengel uses “intimate” to describe a business relationship that would be very inconvenient and disruptive to break.

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A skilled-labor crisis, or crisis of character?

September 19th, 2012
By: Tim Heston

The Chicago teacher’s strike has a silver lining. It has gotten us talking about problems in education. These are problems metal fabricators are all too familiar with, thanks to the ongoing skilled labor crisis. Last weekend This American Life aired a show that asked a question that’s so basic it’s a little embarrassing that we have to ask it: What do our children really need to know to succeed?

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Metal fabrication, floods, and family

September 11th, 2012
By: Tim Heston

Today at 8:46 a.m. Eastern Time I was writing an article on laser cutting when it dawned on me: 11 years ago, at that very moment, I was writing a case history on the subject. Like most people on Sept. 11, 2001, I stopped what I was doing. The magazine art director scurried into my office to relay the news. Was it a recreational flier, some careless soul? A few minutes later the truth set in, as did the fear. I didn’t accomplish much the rest of the day. Optimizing laser cut setups (the article’s topic) wasn’t on the top of my mind.

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Skilled labor wants a safe workplace

August 28th, 2012
By: Tim Heston

Just in time for election season (which, as a multiyear event now, is far longer than a season), a few advocacy groups are putting forth their views about what U.S. manufacturing needs. One of the most concise reports comes from the Georgia Tech and Council on Competitiveness, which released its report last week. Boiled down, the report says U.S. manufacturing needs improved infrastructure, simpler taxation and regulations, more skilled talent, and a focused industrial policy.

Many of those policies hit home for the nation’s larger manufacturers, and they’re indirectly important for the contract metal fabricators and other smaller companies that supply those OEMs. But skilled labor hits home for everybody.

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Fabricators scream for the skilled worker

August 21st, 2012
By: Tim Heston

Last week I called a manager of a heavy fabrication operation. We chatted briefly, but after a few minutes he had to go. He told me six of his operators hadn’t shown up that morning, so shop managers were scrambling.

Then I saw a headline on the front page of the Sunday New York Times: “Skilled work, without the worker: New wave of deft robots is changing global industry.”

Industry leaders continue to scream for good people, those with good attitudes, work ethic, and (ideally) technical aptitude. Sometimes, managers are just looking for people who actually show up. Meanwhile, mass media conveys the idea that robots are taking over the modern factory. No wonder manufacturing has trouble attracting enough people.

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Metal fabrication financial benchmarking: The survival of the fastest

August 7th, 2012
By: Tim Heston

How can a fabricator be successful these days? The common answer is that if a shop reduces labor costs, it can compete with the world. The story’s subtler than that--and a just-released financial benchmarking survey from the Fabricators & Manufacturers Association reveals these subtleties. This year, 36 fabricators anonymously shared some in-depth financial ratio data. Together, those responses helped FMA produce a valuable business tool: the 2012 Financial Ratios & Operational Benchmarking Survey.

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Of course algebra is necessary

July 31st, 2012
By: Tim Heston

Andrew Hacker certainly can spark a debate. If you get the New York Times, you would have turned to the first page of the opinion section and seen: Is algebra necessary? Hacker is an emeritus professor of political science at Queens College, City University of New York. In his column, he questions whether a traditional approach to algebra is necessary in our schools, at least for those who don’t want to pursue a technical career. He argues that basic math skills are, of course, vital. And although the ideas behind algebra, trigonometry, and calculus may be important, are the specific equations really necessary for most of us?

Holy moly.

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Turnaround time versus on-time delivery rates

July 24th, 2012
By: Tim Heston

For years economic growth has been stuck in neutral. Economists are lowering their already low GDP growth projections for 2012. Regarding this, Julia Coronado, chief economist at BNP Paribas, gave Bloomberg an intriguing insight. “Things are so lean and mean, there aren’t a lot of excesses that need to be reduced.” Although such efficiency hasn’t been able to pull the economy into high gear, it also has insulated the economy from a dramatic downturn.

That’s good news--sort of. Neutral is better than reverse, I suppose. But it does mean that the economy probably won’t be pleasant for companies that aren’t lean and mean. The good news: Plenty of fabricators I’ve seen are lean.

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The soft skills of precision manufacturing

July 16th, 2012
By: Tim Heston

In early 2010 I attended an event hosted by plasma cutting systems maker ITT Kaliburn, near Charleston, S.C. That's when I met Joe McNamara. He had led ITT heat transfer unit's plant near Buffalo, N.Y., through a major lean manufacturing transformation.

A few weeks ago I caught up with McNamara, who has since moved on to other areas of the company; the Buffalo heat exchanger manufacturing plant now is operated by Xylem Inc. Throughout our chat, I kept asking about the typical lean stuff: How did the company's 5S program go? What value streams did you identify? What was the challenge of adapting your custom, made-to-order manufacturing operation to the tenets of lean manufacturing?

He obliged me with the details, but then kept coming back to one element he felt made the whole transformation possible: good communication, not only between shop floor workers but also (or perhaps especially) front-office personnel. They did it by tearing down barriers to communication, both literally and figuratively. They removed walls (again, literally and figuratively) between engineering, factory managers, purchasing, and quality.

“We knocked down walls constantly,” McNamara said. “We got to the point where we were functionally structured along value streams, so out on the factory floor we literally built enclosed rooms.” Those rooms were strategically placed only steps away from specific value streams on the floor.

Each focused factory had its factory manager, purchaser, planner, manufacturing engineer, and quality engineer working in close proximity. If a customer called and had a question about production, the engineer didn't have to transfer the call to anyone. He'd simply walk a few steps, talk to the front-line supervisors themselves, walk back and answer the customer's question—all in less than a minute.

“The level of emails back and forth, and the level of nonsense overall, really, dropped by 90 percent,” McNamara said.

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