Small shops and large companies go begging for qualified people, as unemployment figures plummet and critical skill jobs go unfilled.

As reported in the Wall Street Journal, and elsewhere earlier this year, industrial production rose at an annual rate of 3.2% in the final quarter of 1998. Manufacturing expanded at a rate of 5.1% during that quarter, recovering from a 0.4% rate in the previous quarter. This is encouraging to some economists who have long considered US manufacturing to be vulnerable and a weak link in the economy. The federal government also noted that December's factory capacity continues to be about 80% - virtually unchanged during the latter part of 1998.

This follows a seven-month trend, with none of the 20 manufacturing SICs reporting growth in employment, according to the US Federal Bureau of Labor Statistics (BLS). The confusion in these figures mounts when attempting to reconcile them with other conflicting features of the employment picture. What the BLS does not explain are those areas of the US where newspaper help-wanted ads for skilled welders, machinists, and EDM operators go unanswered; and small and medium job shops are unprepared to pick up vital contracts because trained help is not available.

Studies by the National Association of Business Economics and the National Association of Manufacturers report that 58% of surveyed companies have a shortage of skilled workers, and 64% of manufacturers believe that entry-level workers lack the needed skills to make a positive contribution to their company's productivity.

A number of organizations are gearing up to attack the problem with a wide range of programs and strategies, as many present workers rapidly approach retirement age.

Light at the End of the Tunnel?

One instance of a major independent effort is the Pacific Coast Manufacturer's Association (PCMA), comprised of volunteers from local companies: led by president, Steve Keyzers; PCMA secretary, Richard Kumler; and its board of directors. As manufacturing began rebounding from the 1990s recession, it became apparent that many California companies would be unable to find enough skilled labor to meet their demands. After a meeting in July 1997, where about 60 company representatives discussed the problem, an executive committee was chartered with the mandate to form an organization and develop a solution. In December, the PCMA was incorporated as a non-profit corporation for education.

The Board of the PCMA is made up of five industry representatives, two representatives of education, and two "at-large" members. The organization is committed to ensuring the global competitiveness of US manufacturing companies by bringing together industry, education, government, and the community to develop the future generation of technologists. These efforts are focused on continuing education of the work force and increasing public awareness of manufacturing as a desirable career. To survive and thrive into the next millennium, companies and industry leaders need to work together to utilize combined resources in developing solutions for the worker shortage problem.

More than 800 California manufacturing companies were surveyed in mid-1998 by PCMA. A summary of the respondents revealed: 82% are affected by a shortage of skilled personnel; 31% feel that the negative image of manufacturing occupations makes recruitment difficult; 50% have an immediate need for machine setup operators and general machinists; 37% are in need of tool and die makers; and 30% are in need of CNC programmers. In addition, companies reported an expected loss of 5% - 10% of the skilled work force over the next five years due to retirement. Finally, these respondents would hire as many as 600 more skilled workers, right now, if they were available.

The PCMA has committed to a variety of programs that seek to reverse this trend. The organization works with the advisory boards of manufacturing technology community college programs and trade schools to ensure that their curriculum reflects industry needs. It sponsors awards, banquets, competitions, and job fairs for the manufacturing trades. It maintains a referral service to register apprentice candidates and journeymen, organize company job openings, organize a database of qualified applicants for participating companies, and establish an Internet bulletin board and chat room. Several other benefits are available to PCMA member companies, including insurance and advisory programs.

This organization is one of many industry-wide that are addressing the problem in one area or another. In another instance, the NTMA (National Tooling and Manufacturing Association) has established training centers allied with the Los Angeles County in Ontario, CA, and in Orange County. The American Welding Society (AWS) and Skills USA, in cooperation with more than two dozen sponsoring companies, holds annual welding competitions in regions across the country, culminating in a national final at the annual AWS trade show. Many other regional newsletters and technical service bureaus are involved with community colleges, technical institutes, and trade organizations across the country.

Although these efforts are too numerous to list in an article of this extent, their collective impact has been limited at best in the face of the magnitude of the problem, and the industry's uncertain future. A coordinated effort is needed to make a greater impact while there is still time.

Buckley Owens Machinery Corp. 6416 Fly Road | East Syracuse, New York 13057 Telephone 315.432.0708 Fax 315.432.0736 Email: info@buckleyowens.com