Why Manufacturers Can’t Find Employees

... and how Manufacturing Day helps with recruitment

Thu, 07/18/2019 - 12:02

Manufacturing Day, an initiative designed to inspire the next generation of manufacturers, arrives Oct. 4, 2019. The annual MFG Day (which can be held anytime during the month) involves thousands of manufacturers across the country holding events, tours, activities, and more. Last year, in California alone, more than 250 sites registered as event hosts, and more than 330 manufacturers and support organizations participated in or sponsored events throughout the month of October.

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One of the great benefits of participation in MFG Day is recruitment, which is vital to the survival of many of today’s small and medium-sized manufacturers (SMMs). Why is recruitment so important? Because today, nearly 90 percent of these manufacturers can’t find the employees they so desperately need, according to new data from SCORE, a nonprofit resource partner and mentoring service associated with the U.S. Small Business Administration (SBA).

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HOW DID WE GET HERE?

I have read a lot of articles lately discussing the coming retirement of the Baby Boomers, written by people who think everything now is "new technology" and robotics.  Well, that day may be coming, but for most companies this "cutting edge technology" has not arrived yet.  After years of scrimpy spending on infrastructure at most companies, they also don't have the capital to switch to new technology.  In a nutshell, many manufacturing jobs are pretty much the same as they were before the huge outsourcing efforts of the early 2000's occurred. 

Most companies are not interested in training new employees, they stubbornly offer wages that have not shifted for manufacturing employees in 20 years.  It may be interesting to note that CEO pay has increased to over 390 times the pay of the lowest paid employee in US companies. The government believed that those jobs are never coming back.  Well, surprise, they did, and management has not adapted to this new reality.

THE SOLUTION-FLEXIBILITY

The old time form of employment is not effective in todays market.   

  1. Not everyone out there needs, or wants, a full time job.  
  2. There are many Baby boomers who would enjoy part-time positions mentoring new comers to the industry.  
  3. Please do not use one of the companies that handle temp employees.  Many of these companies are unethical and only pay the worker half of what they charge the customer.  
  4. It does not cost that much to pay an individual via a 1099MISC payment strategy.  Setting up a few 1099MISC payments should not cost more than $25-30 per account.  
  5. Many of these people can mentor your team, set up improvements in your inspection processes and run a few Kaizen Events. They can lead some supplier audits, or a few 8D projects for your company.  
  6. Don't get conned into an expensive program run by a university.  The actual practicioners will probably know more than a person who happens to have a PHD.
  7. Pay them a fair wage, after all you will not have to give them any benefits, medical insurance or retirement.

GIVE THESE NEW IDEAS A CHANCE. YOU WON'T REGRET IT.

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