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Friday, January 20, 2012

US manufacturing jobs

Good manufacturing jobs that remain in the US will require significant skills, such as the ability to run capital intensive equipment. Unfortunately, most of the population lacks the requisite abilities. This Atlantic article does a good job of contrasting the future prospects of two young workers at a plant that makes fuel injectors. What percentage of the US manufacturing workforce is capable of doing Luke's job, even after (free) retraining?

Making It in America

In the past decade, the flow of goods emerging from U.S. factories has risen by about a third. Factory employment has fallen by roughly the same fraction. The story of Standard Motor Products ... sheds light on both phenomena. It’s a story of hustle, ingenuity, competitive success, and promise for America’s economy. It also illuminates why the jobs crisis will be so difficult to solve.

... Maddie got her job at Standard through both luck and hard work. She was temping for a local agency and was sent to Standard for a three-day job washing walls in early 2011. “People came up to me and said, ‘You have to hire that girl—she is working so hard,’” Tony Scalzitti, the plant manager, told me. Maddie was hired back and assigned to the fuel-injector clean room, where she continued to impress people by working hard, learning quickly, and displaying a good attitude. But, as we’ll see, this may be about as far as hustle and personality can take her. In fact, they may not be enough even to keep her where she is.

... Luke Hutchins is one of Standard’s newest skilled machinists. ... He transferred to Spartanburg Community College hoping to study radiography, like his mother, but that class was full. A friend of a friend told him that you could make more than $30 an hour if you knew how to run factory machines, so he enrolled in the Machine Tool Technology program.

At Spartanburg, he studied math—a lot of math. “I’m very good at math,” he says. “I’m not going to lie to you. I got formulas written down in my head.” He studied algebra, trigonometry, and calculus. “If you know calculus, you definitely can be a machine operator or programmer.” He was quite good at the programming language commonly used in manufacturing machines all over the country, and had a facility for three-dimensional visualization—seeing, in your mind, what’s happening inside the machine—a skill, probably innate, that is required for any great operator.

... When Luke got hired at Standard, he had two years of technical schoolwork and five years of on-the-job experience, and it took one more month of training before he could be trusted alone with the Gildemeisters. All of which is to say that running an advanced, computer-controlled machine is extremely hard.

... Luke says that on a typical shift, he has to adjust the machine about 20 times to keep it on spec. A lot can happen to throw the tolerances off. The most common issue is that the cutting tool gradually wears down. As a result, Luke needs to tell the computer to move the tool a few microns closer, or make some other adjustment. If the operator programs the wrong number, the tool can cut right into the machine itself and destroy equipment worth tens of thousands of dollars.

Luke wants to better understand the properties of cutting tools, he told me, so he can be even more effective. “I’m not one of the geniuses on that. I know a little bit. A lot of people go to school just to learn the properties of tooling.” He also wants to learn more about metallurgy, and he’s especially eager to study industrial electronics. He says he will keep learning for his entire career.

In many ways, Luke personifies the dramatic shift in the U.S. industrial labor market. Before the rise of computer-run machines, factories needed people at every step of production, from the most routine to the most complex. The Gildemeister, for example, automatically performs a series of operations that previously would have required several machines—each with its own operator. It’s relatively easy to train a newcomer to run a simple, single-step machine. Newcomers with no training could start out working the simplest and then gradually learn others. Eventually, with that on-the-job training, some workers could become higher-paid supervisors, overseeing the entire operation. This kind of knowledge could be acquired only on the job; few people went to school to learn how to work in a factory.

... For Maddie to achieve her dreams—to own her own home, to take her family on vacation to the coast, to have enough saved up so her children can go to college—she’d need to become one of the advanced Level 2s. ...

It feels cruel to point out all the Level-2 concepts Maddie doesn’t know, although Maddie is quite open about these shortcomings. She doesn’t know the computer-programming language that runs the machines she operates; in fact, she was surprised to learn they are run by a specialized computer language. She doesn’t know trigonometry or calculus, and she’s never studied the properties of cutting tools or metals. She doesn’t know how to maintain a tolerance of 0.25 microns, or what tolerance means in this context, or what a micron is.

Tony explains that Maddie has a job for two reasons. First, when it comes to making fuel injectors, the company saves money and minimizes product damage by having both the precision and non-precision work done in the same place. Even if Mexican or Chinese workers could do Maddie’s job more cheaply, shipping fragile, half-finished parts to another country for processing would make no sense. Second, Maddie is cheaper than a machine. It would be easy to buy a robotic arm that could take injector bodies and caps from a tray and place them precisely in a laser welder. Yet Standard would have to invest about $100,000 on the arm and a conveyance machine to bring parts to the welder and send them on to the next station. As is common in factories, Standard invests only in machinery that will earn back its cost within two years. For Tony, it’s simple: Maddie makes less in two years than the machine would cost, so her job is safe—for now. If the robotic machines become a little cheaper, or if demand for fuel injectors goes up and Standard starts running three shifts, then investing in those robots might make sense.

“What worries people in factories is electronics, robots,” she tells me. “If you don’t know jack about computers and electronics, then you don’t have anything in this life anymore. One day, they’re not going to need people; the machines will take over. People like me, we’re not going to be around forever.”...

See also this old post Outsourcing vs technological innovation.

Another related article from the NYTimes, this time about Apple and Foxconn. Excellent video.

NYTimes: ... Companies like Apple “say the challenge in setting up U.S. plants is finding a technical work force,” said Martin Schmidt, associate provost at the Massachusetts Institute of Technology. In particular, companies say they need engineers with more than high school, but not necessarily a bachelor’s degree. Americans at that skill level are hard to find, executives contend. “They’re good jobs, but the country doesn’t have enough to feed the demand,” Mr. Schmidt said.

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