SIEMENS Energy Addresses Skilled Labor Gap

You can learn about the solutions mentioned below – and more -- at the Mission Critical: Workforce 2021 Feature Area at imX, powered by Tooling U. Come by for your free Workforce 2021 Readiness Assessment, which tests your organization’s ability to meet the industry’s workforce challenges.

A recent Businessweek headline, “Employers Ready to Hire Can't Find Workers Among 9.1% Unemployed,” gives a snapshot of the nearing crisis in manufacturing. In the next decade, changing industrial technology and the retirement of millions of baby boomers will mean a severely depleted workforce – unless companies address this now.

One company that is meeting this challenge head on is Siemens Energy in Charlotte, NC, makers of turbines and generators (watch this recent NBC “Nightly News” segment). We visited Siemens recently and were impressed by the company’s approach to hiring, training and career development. If more companies follow their lead, manufacturing will be stronger than ever by the year 2021.

“This is a very exciting time for us here at Siemens as we are currently expanding our facility,” says Pamela Howze, Technical Training Manager for the company. “We have 500,000 square feet of manufacturing space, and we’re adding an additional 450,000 square feet, and relocating a product line to Charlotte that we've never built here before. We are hiring an enormous amount of people, and our jobs here in Charlotte require a lot of very highly technical skills.”

Since January 2011, Siemens has hired 450 people, and the company is working on nearly doubling that number. This need to hire is coupled with the challenge of an aging workforce nearing retirement.

“Twenty percent of our employees could retire today if they chose to do so and that number actually rises to 25% in two years,” said Ms. Howze. “We are trying to figure out how to retain the knowledge of our seasoned, senior employees and also train a brand-new workforce on a product line that we had never made here before.”

The company is doing some innovative things to address this while closing the skilled labor gap. For instance, Siemens started an apprenticeship program mirrored after the German school education system, with six rising high school seniors going into apprenticeship training this month. The company also has a close partnership with the Central Piedmont Community College and the company receives legislative dollars to help build and train a strong workforce.

Siemens is also investing in online training through Tooling U, an SME Company, the leading provider of online training for manufacturers.

“Tooling U helps Siemens in many, many ways,” said Ms. Howze. “First of all, as a diagnostic tool, it tells us where our existing workforce needs to develop their skills. Second, online training is really a good fit for us because we can use it any time of the day or any time of night -- we operate 24 hours a day, seven days a week, so it gives our operators a chance to access training anytime.”

Ms. Howze stressed that if we don't solve this workforce skills gap, we are not going to have personnel who can work in a high-tech manufacturing facility. She says: “Companies have to think strategically – and start thinking now because 10 years from now, it's going to be too late.”

Dollars and Sense: How a focus on profitability and productivity can sharpen the competitive edge of American manufacturing

How do you aim to reduce the cost of your machining process? If you are like most, tools, coolant and other perishable inputs take center stage. While these elements are an important consideration, there’s another alternative that can have a far greater impact.

The challenge of keeping American manufacturing competitive in today’s global economy is serious. Low-cost emerging markets present a tempting substitute to domestic production; a focus on fixed costs, however, can generate substantial productivity gains that make it easier to choose U.S. production.

The typical economic breakdown of a machined component is as follows: 25 percent variable costs (tooling, coolant and material); 55 percent fixed costs (real estate, equipment and labor); and 20 percent profit.

To increase the profit margin, manufacturers must create more components in the same amount of time, on the same equipment. By doing this, manufacturers only incur increased variable costs. Involving cutting tool experts early in the machine investment process—or, if the process is already in production, inviting experts in to help with optimization—manufacturers can reach this goal.

While the above cost breakdown assumes the sale of the additional components, it’s easy to see how producing more with existing investments can have a far greater impact on profitability than simply choosing cheaper inputs—a strategy that low-cost foreign markets typically rely on.

While cutting tools represent only 3 to 6 percent of the cost of typical metal component production, the proper planning and application of cutting tools and production logistics and machining strategies can lower overall production costs by as much as 50 percent.

This is what the upcoming imX event is all about: addressing the challenges that American manufactures face through education, interaction and networking. As a proud imX partner, Sandvik Coromant has seen firsthand how the application of this knowledge can fuel the engines of growth—making global competition far less daunting.

If you would like to hear more about this topic, be sure to visit our Learning Lab and attend the “Production Dollars and Sense” session, happening every day from 2 – 2:45 p.m.

By Mike Verkamp, Director of Business Services and presenter of Production Dollars and Sense

A Failure to Communicate?

As Mark Twain once so famously espoused: The reports of my death are greatly exaggerated. More contemporarily, it is not hard to see the parallels between Twain’s much-repeated quote and perception vs. reality in the world of manufacturing.

Telling Your Own Stories

There is another time-worn saying about speaking only when spoken to. And while that old school phrase was once promoted by parents to their offspring pre-“Dr. Spock,” it can also be compared to the theory of sticking one’s head in the sand; avoiding controversy and being silent in the face of conflict.

Today, more than ever, it is important – vital – for proponents of manufacturing to

spread the word of what the industry is today and where it is going in the future. This includes inwardly to employees and vendors and partners as well as externally to customers, potential customers and the media. The platforms available today are many and varied – from websites and e-blasts to in-person conversations.

Moreover, when it comes to the media, it’s important to think beyond the trades, those that directly cover your industry and specialized sector. It is beyond the trade media where the disconnect festers; where there is still not a keen understanding of how manufacturing has adapted and evolved, including in the area of advanced manufacturing. What were the challenges and what were the innovative solutions? Those stories are being developed every day.

An Industry Working Together

In any industry, quite often, positive messages and news of creative work product are not communicated for reasons of proprietary considerations. After all, who wants to lose a competitive advantage? Yet, in a few short weeks, competitors and collaborators alike will come together at imX in Las Vegas to do something earth shattering and counterintuitive: to look beyond spread sheets and customer orders and work together to promote and further manufacturing.

The so-named “Experience” will be just that. An opportunity for all to discuss challenges and solutions; learn and teach best practices; and discover (or rediscover) why the industry is well positioned now and for the future.

The key to it all, at imX and beyond, is communication. Breaking down silos to see the big picture; the forest through the trees; the “we” vs. “me.” To be sure, imX will serve as an incredibly important resource and platform; one like perhaps never before.

Don Tanner is a founding partner with Farmington Hills, Michigan-based

Tanner Friedman Strategic Communications. The firm is the official PR agency of imX.

The Benefits of Attending imX.

We’ve received a lot of inquiries lately from potential guests seeking a brief rundown on the benefits of imX.

They understand the basic concept and how imX is like a series of “open houses” or “demo days” rolled into one large event. They get how we’re trying to put “learning” from the best companies, speakers and industry experts right up front and at the heart of the imX experience. They can relate to imX building a quality environment where a select group of attendees are invited to come meet, learn and exchange ideas with their peers.

Yet we are often asked to give them a quick “highlight reel” of the key parts of imX.

First and foremost, it’s important to remember that all the exhibits and educational programs at imX are available to all registered guests FREE of charge. Once you get invited and confirmed and registered… you’re in!

You have unlimited and complimentary access to all keynotes, panels, more than 100 sessions at the Learning Labs and more than 40 sessions at the Knowledge Bars and more than 150 imX eXhibits!

Here’s a snapshot of activities that every guest will have full access to:

· Direct one-to-one access to the experts who are there to answer your questions. Selected companies have made it a priority to have the right people on hand to answer all of your technical and business questions.

· Discover and explore the latest products and solutions from hand-picked exhibit partners dedicated to advancing the industry. We want to give you the opportunity to experience the newest products and innovative technologies to help you immediately improve your operation.

· Hear from the industry’s leading visionaries at the Keynotes and Industry Panels presented every day. All presentations include an interactive Q&A component for the audience.

· Easily navigate our themed-event layout and take advantage of an approach that makes it easier than ever to locate the companies and individuals you want to meet with in neighborhoods built around solutions.

· Take full advantage of full “peer-to-peer” networking that ensures that you can plan and meet with your industry colleagues before, during and after the event in the countless programs created to foster real eXchange.

· Discover implementable and proven strategies directly from the industry’s experts at the largest, most interactive classroom. Eight dedicated Labs focused exclusively on learning strategically positioned right on the event floor and powered by the leading companies. You’ll get firsthand knowledge of the latest trends and technology solutions and will be able to take advantage of more than 100 Learning Lab sessions free to every executive guest.

It’s time to start eXploring!

If you haven’t yet registered for this event you need to act quickly and apply to join imX as soon as possible. You can click on this link to apply https://www.xpressreg.net/register/IMXE091/reginfo.php

Please don’t hesitate to email me with any questions or comments at sprahalis@sme.org.

Best regards…