Tag Archive: jobs

Skills Gap – Where Do We Stand?

December 8th, 2019

The skills gap has been a hot topic for many years. Our original research shows a 87% gap. For example, any time Kash Gokli, Engineering Clinic Director at Harvey Mudd and I gather CEOs to talk about timely topics in executive roundtables, no matter the topic of the evening, the lack of talent (or the ‘right’ talent in the ‘right’ place at the ‘right’ time) arises. As technology comes on to the scene in a BIG way, there is even more conversation, confusion and interest in how to successfully navigate the skills gap.

According to research, automation and robotics have the potential to take over countless jobs. This can be seen as mass destruction of high paying blue collar jobs or it can be seen as a significant opportunity to scale up rapidly to meet rising customer expectations and providing new skills to the workforce. As business owners and executives, we view having the ‘right’ technology at the ‘right’ place at the ‘right’ time as a win-win-win. Better customer experiences. Better for the bottom line. Better for our employees as they learn new skills. The trick is navigating this skills gap successfully.

We are also starting to see more and more baby boomers start to retire or think about retiring. The unfortunate thing for our clients is that their knowledge base cannot be replaced with one person, maybe not even two sometimes.  That certainly throws a wrench into the plans! Have you started to unearth what knowledge is in your employees’ minds that you take for granted? Innovative companies are pairing up experience with young, fresh ideas. There can be much to gain if managed well.

Please help us understand what is most relevant in today’s business environment. We will share the results for you first, and we appreciate your support. Take our survey here.



Manufacturing Month & Interview with an Innovation Award Winner

October 25th, 2019

October is manufacturing month. We would be remiss if we didn’t highlight the power of manufacturing on our jobs, economy and quality of life.

Manufacturing is powerful in its influence and often overlooked.

Here are a few statistics from the National Association of Manufacturers to put the power of manufacturing in the proper light:

  1. Manufacturers contributed $2.8 trillion to the U.S. economy
  2. For every $1 spent in manufacturing, another $1.82 is added.
  3. The majority of manufacturing firms are quite small yet there are 12.82 million manufacturing workers in the U.S.
  4. Manufacturing workers earn almost $85k annually
  5. 92% of manufacturing employees are eligible for health insurance
  6. Over the the next decade, 4.6 million manufacturing jobs will be needed.
  7. Over the past 28 years, U.S. manufactured good exports have quadrupled
  8. Manufacturing in the U.S. would be the 8th largest economy in the world.
  9. Manufacturers perform 64% of all private-sector R&D
  10. Foreign direct investment in U.S. manufacturing exceeded $1.6 trillion.

We are excited about the future of manufacturing in the U.S. and in the Inland Southern California area. In fact, according to a Brookings study, it is one of the top two recommendations to create a consortium for advanced manufacturing excellence. We are working with the Inland Empire Economic Partnership, more than 10 local universities and community colleges, and partner organizations and exporters to bring this to a reality! We are currently seeking CEO and manufacturing executive involvement from an advisory capacity. If you are interested, please contact us.

To illustrate one success in manufacturing, we thought we’d highlight my interview with Ingram Micro after they won the Manufacturing Council of the Inland Empire‘s Innovation Award in Process & Resource Efficiency. As Innovation Awards Chair, it was an exciting day to see such innovation and success in the Inland Empire! In this interview, I had a great conversation with Ismael Reyes Jr, Lean Leader II and process expert, as well as Cindy Baughman, Senior Process Manager and finance guru at the Manufacturing Summit to explore further what they achieved with 33 lean projects, a $1 million dollars of savings and more. Watch the video.

In alignment with what we see with our clients, the 80/20 of success boils down to people and leadership combined with the appropriate process improvements to drive dramatic improvement to performance to customers and the bottom line. If you are interested in discussing a rapid assessment of what can be achieved in your organization, please contact us.

Did you like this article? Continue reading on this topic:

Which State Has the Most Manufacturing? The Answer Might Surprise You…
Keeping an Eye on Global Markets
Eagle Eye Strategic Focus

 



Are Robots Good or Bad?

April 19th, 2017

According to the Material Handling & Logistics, robots are slashing U.S. wages and worsening pay inequality. That is certainly a provocative statement! According to new research by MIT’s Daron Acemoglu and Boston University’s Pascual Restrepo, one additional robot per thousand workers reduces the employment to population ratio from 0.18 percentage points to 0.34 percentage points and slashes wages from 0.25% to 0.5%. Regardless of the exact figures, it is certainly accurate that robots will replace certain types of jobs.

automation

Is this good or bad? It is for you to decide based on your circumstances. Technology and automation can keep you competitive and “save” higher skilled jobs since costs are reduced and so there is less incentive to move manufacturing away from the customer base to a lower cost location. On the other hand, robots will minimize the number of repetitive jobs needed. Are you continually building on your skills? And, are you supporting continual skills building in your workforce?

 

What Should We Consider and/or What Impacts Could Arise?

We are hearing more and more about technology, automation and robots. Thus, if you aren’t at least thinking about this strategy, you’ll likely be left in the dust. With that said, we are the first to say — do not automate for the sake of automation. Does it support a key need of your business? Will it help you provide a better customer experience? Will it help you be more competitive to grow your business? Think carefully before jumping for the sake of following the popular trend.

If you don’t have a high labor cost environment, will robots make sense? Perhaps not. Just like everyone and his brother jumped on the outsourcing craze several years ago and many later discovered it didn’t make sense in their case (often by learning the hard way with unhappy customers), think before you leap. Stay on top of the latest technology and search for business needs where this tool “fits the bill” to drive business results but do not blindly follow any person or crowd.