Where Is Manufacturing Headed Today?
I am excited about the future of manufacturing in the United States. In a recent article in the New York Times by Paul Downs, founder of Paul Downs Cabinetmakers outside of Philadelphia, Downs astutely comments that it is easy to get the impression that American factory jobs are about to disappear, but according to the Bureau of Labor Statistics, there are actually 2 million more factory workers today than in 1939.
Downs goes on to mention that total manufacturing output has more than doubled since 1975.
What has changed, according to Downs, is technology. He points out that very sophisticated industries have emerged and others have developed that did not exist 15 years ago. Manufacturing needs more skilled workers now. The worst jobs are being exported or transformed into ones that require more brains and skill.
Looking Up
At Mayfield Plastics Inc., we have seen the need for people with a greater range of talents and skills than we did 20 years ago. We now hire machine operators who have different skills than we required in the past. Technology has improved and there are fewer really dangerous jobs. Technology has increased our ability to sell better and to service our customers faster and more accurately. Mayfield Plastics is a better place to work than ever before.
Respected financial journalist James Picerno, who contributes to CNBC, the Wall Street Journal, Barron's, Bloomberg and other financial journals, writes on SeekingAlpha.com that:
“Manufacturing is on a roll. Today’s update of the ISM Manufacturing Report for February shows that ‘economic activity in the manufacturing sector expanded in February for the 19th consecutive month.’ In fact, the latest rise brings the index to the previous high, set in 2004. The question is when, or if, the revival in manufacturing will spill over into the labor market?”
One strategist is optimistic. “The employment component [for manufacturing] went up again,” says Dan Greenhaus, chief economic strategist at Miller Tabak, via CNBC.com. “There’s definitely a relationship between the ISM employment component of the manufacturing index and manufacturing payrolls in Friday’s report.”
This is good news for all of us. But how does that translate into sales and production? We are very excited by the influx of new orders that we are receiving. Our March shipments look like they will be the strongest in the last 18 months. We have been hiring production workers, inside sales and support people, and a senior sales representative. We are seeking to assign a new quality assurance manager within the next week. In short, we are preparing to keep up with the orders we project will continue to increase as the economy improves.
We know we have to be prepared to satisfy the diverse needs of our customers, and are hiring people who can deliver them.
Sure, growth and expansion create their own set of challenges. Some employees who are not willing to adjust to the changing face of manufacturing choose to change fields.
Others look for jobs more suited to their skill sets. But, on par, the challenges result in a more talented workforce and that really benefits one of our constituencies — our customers — the most.
Let’s all look forward to a robust recovery and challenges that stretch us to be not just good, but really great.
Ron Cross is president of Mayfield Plastics in Sutton.
He can be reached at ronaldc@mayfieldplastics.com.
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