Archive for the ‘Industry Trends & Analysis’ Category

Getting up to speed on "soft" costs

October 18th, 2012
By: Dan Davis

I've got a friend that coordinates purchasing relationships between U.S. manufacturers and Chinese part suppliers. That may rub some people the wrong way, but his current occupation is just part of a natural evolution. He once acted solely as a manufacturer's rep for manufacturing service providers in the Midwest, but had to change his approach as everyone began to seek overseas sourcing connections. In typical American success story fashion, he saw an opportunity and jumped on it.

But this story isn't about him; it's about one of his customers. This one in particular had been a very satisfied customer until the arrival of new company management. The new regime wanted a review of all existing supplier relationships. In short, management wanted to see what cost savings could be gained by intensely scrutinizing current contracts.

My friend has been through these scenarios before, and he prepared a plan. How could he improve his position while helping out the customer? He knew it wasn't just about parts and prices; it was about solving a customer's pain—even if the company didn't know it had one. (more...)

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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Magical fabricating tour

October 12th, 2012
By: Dan Davis

If you weren't a part of The FABRICATOR's Technology Summit in early October, you missed a great learning experience. About 50 attendees visited six fabricating operations, two manufacturers of laser equipment, and one systems integrator of custom laser machines. If the event didn't "ignite innovation"—as its tag line suggested—it certainly got some people thinking about how they might change their own operations.

What exactly did attendees see as they traveled around Minnesota's Twin Cities? They got to see everything, from the automated manufacturing processes used to fabricate Hoffman boxes—one of the most recognizable brands in the metal manufacturing industry—at Pentair Technical Products, Minneapolis, to the manufacturing might needed to construct giant grain handlers at Schlagel Inc. in Cambridge, Minn. At those stops and others they saw the latest in automated storage and retrieval systems that feed material to laser cutting machines with no human intervention; specialty laser cutting devices tailored for industries such as medical device and aerospace parts manufacturing; and even a fiber laser that ripped through tubes, cutting shapes in a matter of seconds. (more...)

Make Manufacturing Day a memorable one

September 21st, 2012
By: Dan Davis

"Want to come out to St. Francisville this Saturday and take a tour of the plant?" my dad asked me one night during dinner back in 1986.

Knowing that such a visit would cut into my sleep time over the weekend, I declined with the grace and panache of a teenager. "Not really," the response might have come out.

I still wince when I recall that short-lived conversation.

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IMTS 2012: Crazy times in manufacturing

September 14th, 2012
By: Dan Davis

Sometimes you wonder if North American metal manufacturers got the memo.

Europe is struggling with countries teetering on the brink of financial collapse. China is no longer seeing its GDP grow by double-digit percentage points. Other once-hot economies in the world, such as Brazil, have cooled considerably. Meanwhile in the U.S., unemployment remains above 8 percent, and economists fret that the federal government may be headed off a "fiscal cliff" at the end of the year, when automatic budget cuts take place and Bush-era tax cuts end.

So what happened as the International Manufacturing Technology Show 2012 opened in Chicago on Sept. 10? Show organizers announced that they were expecting its most well-attended show since 2002. (Preregistration alone stood at 86,000.) Simultaneously, AMT—The Association For Manufacturing Technology announced that U.S. manufacturing technology orders in July were up 5.4 percent overall compared with the same time in 2011. U.S. manufacturers continue to move forward no matter what craziness occurs around them. (more...)

A taxing time

September 7th, 2012
By: Dan Davis

I wonder if the average voter really knows what a jump back to a tax rate of 39.6 percent from the current level of 35 percent might mean. The underinformed might view it as a slight financial inconvenience for the Wall Street button-down types and the owners and management of large corporations. Unfortunately, many of the folks that are going to get hit with the higher tax rate at the end of the year—if Congress doesn’t complete a Hail Mary pass to renew the Bush-era tax cuts—will be owners of manufacturing firms. (more...)

In defense of military spending

August 24th, 2012
By: Dan Davis

Who do you believe the Mayans or the political pundits?

If the Mayans' ancient beliefs are correct, you shouldn't plan anything after Dec. 21 because that's supposedly the end of the world. For those that have their doubts about the prognostication power of ancient people, all they have to do is look ahead to the end of the year as the U.S. government approaches the dreaded "fiscal cliff," the time when a combination of tax cuts suddenly end and $100 billion in federal government spending cuts are enacted. Pundits believe that'll bring any U.S. economic growth to a complete stop and cause a slump that makes the Great Recession look like spring break.

Will it be the end of the world as we know it by the start of 2013?

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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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Spreading the word about manufacturing beyond the choir

August 15th, 2012
By: Vicki Bell

Have you read the article “A moral argument for manufacturing?” If you haven’t, please do, and if you agree with the author’s premise that the only way to really change the landscape for manufacturing in the U.S. is to bring the moral argument for its existence to the collective consciousness, then please share this article with others.

I spoke with the article's author, Jim O’Leary, yesterday. We had a nice chat about his article, the business he works for, and how much faith he has in this country’s ability to right its manufacturing ship. (more...)

Crazy to think things are getting better?

August 10th, 2012
By: Dan Davis

Positive thinkers make me nervous, and motivational speakers make me roll my eyes. I'm a self-motivated individual who has a clear understanding of the reality around him. I believe in the ability to scale mountains, but those that believe they can move them through sheer will deserve to have Tony Robbins take their $350 in exchange for an autographed book and an afternoon of self-help babble.

So back in 2008 I laughed as manufacturers tried to convince me that the media was causing the economic downturn initiated by the collapse of the real estate market. So if everyone had ignored the facts around them, the economy magically would have improved overnight? Reality wasn't going to cooperate. (more...)