The latest numbers on manufacturing are encouraging. Now accounting for nearly 12% of our GDP (up from a low of 11% in 2009), the positive trend has many people – though not all – talking about a rebound for U.S. manufacturing. Here’s a look at both sides of the debate.

Points

According to GE CEO Jeff Immelt, “We are probably the most competitive, on a global basis, than we’ve been in the past 30 years” when it comes to manufacturing. Immelt and other “renaissance” advocates base that opinion on factors such as:

• Rising factory output - Figures from February show that the January decline was reversed, with output rising nearly a full percentage point.
• Lower labor costs - As the cost of labor falls here, and continues to rise in China, American companies are “re-shoring” jobs.
• The natural gas boom - An abundant supply of natural gas means lower energy costs – and higher profit margins – for U.S. manufacturers.

Counterpoints

Industry pundits holding opposite views concede the current upswing in some numbers. But Goldman Sachs economist Jan Hatzuis writes in a recent economic report that although “. . . the manufacturing sector should continue to grow a bit faster than the overall economy . . . the main reason is likely to be a broad improvement in aggregate demand rather than a structural U.S. manufacturing renaissance.” Other challenges to the “rebound” scenario include:

• Export performance – Hatzius notes in his report that, “Measured productivity growth has been strong, but U.S. export performance – arguably a more reliable indicator of competitiveness—remains middling at best.”
• Number of jobs - Yes, there are currently 600,000 vacant U.S. manufacturing jobs, unfilled mostly due to a lack of skilled workers. But as technological advances continue, critics argue that the number of jobs will actually decrease as robots and other automation take over.
• Job insecurity - Manufacturing jobs are among the most vulnerable to business cycles. In fact, the unemployment rate for blue collar jobs during the most recent economic crisis was more than three times that of professionals (14.6% versus 4.1%).

Boosting Chances

President Obama and the Alliance for American Manufacturing recently released a plan to help support U.S. manufacturing that includes tactics such as keeping trade laws strong, reducing the trade deficit, supporting “buy American” initiatives and improving vocational/technical training. Even with all that support, however, people may have to adjust their vision of what a successful manufacturing industry looks like. “Yes, manufacturing is coming back, but it’s evolving into a very different type of animal than the one most people recognize today,” says James Manyika, director of McKinsey Global Institute, in his recent in-depth study entitled “Manufacturing the Future.”

Bayside Solutions offers the many options to meet your manufacturing staffing needs, no matter what the market looks like. From contract to contract-to-hire to direct placement, we deliver highly qualified, pre-screened professionals to manufacturing companies in the Bay Area and beyond. Contact us today to learn more.

A recent B2B survey by Aberdeen Group, Inc. found that more than half of the respondents were not using social media in any manner to manage their supply chains. That statistic troubles Terri L. Griffith, a Santa Clara University professor and author of The Plugged-In Manager. Her view is simple – and quite blunt. Companies who are not incorporating social technology into their supply chain “need to get a clue,” she warns. Here are two great reasons why you should follow her advice and go social.

Critical Collaboration

According to Dylan Persaud, president of enterprise software consulting firm Eval-Source, “Social, as it refers to supply chain and manufacturing, means collaboration.” Instead of relying on countless meetings and inbox-busting email chains that are hard to follow, utilizing social media technology allows for streamlined communications with vendors and suppliers. On the manufacturing side, this means clear conversations about the tolerances, materials and workmanship of parts, while on the supply side, real-time discussions can be had regarding stock of raw materials and finished inventory. Persaud points out that in-the-moment, easily accessible exchanges of information provided by social technologies could prove particularly important in life and death industries like aerospace and defense.

Insightful Information

Social media allows companies to gather a wealth of information that can impact their supply chain and manufacturing processes. For example, after a positive review of a stroller by an influential parenting publication, discussions surge on Facebook and Twitter – and so does demand/sales, which could be predicted by monitoring the social chatter. Using consumer feedback to adjust existing products or create new ones is another option. As blogger Paula Natoli of Supply Chain Nation notes in her recent article about social media and the supply chain, “Understanding consumer sentiment around brands and/or other attributes about a product can enable more efficient assortment planning up front – and a better assortment leads to happier consumers, which leads to more sales.” The bottom line is that by using social technologies, an informed company ends up being both responsive and prepared.

The small percentage of companies who are using social media to influence their supply chain and manufacturing management currently use a patchwork of public and private technologies. But Curtis McEntire, founder of business social network Mazree, envisions something much grander: a B2B version of Facebook. In his opinion, “B2B companies will never be able realize the full benefits of social technology until one primary B2B network rises as ‘the place’ for B2B interaction and engagement. For a network to become the destination for communication between buyers and sellers, it must key in on the aspects that bring businesses in supply chain together; provide all players with one network for communication that benefit each of their businesses; and to streamline processes to meet the common goal.”

You can count on Bayside Solutions to incorporate all technologies, both social and traditional, into their search for qualified manufacturing personnel. For assistance in finding temporary or permanent top-notch talent in the Bay Area, contact us today.

When it comes to filling manufacturing jobs, it’s hard enough to hire additional employees, let alone replace good ones who leave. In fact, a recent CBNC news story reported on plant after plant being unable to fill openings, leaving shifts short-staffed and managers frustrated. If hiring and retention are priorities for your manufacturing operation, consider improvements in these five key areas.

1) Compensation - Money is not everything, but it is definitely something, and a big something at that. Use tools like salary.com to be sure you’re offering competitive pay, and remember that if your talent pool is limited, you are going to have to pay more. Benefits are also important – be as generous as possible, and if budgets are limited, consider customized packages that allow employees to pick and choose which perks are most important to them.

2) Vision - Employee satisfaction is often tied to how they feel about the work they are doing. The sense of accomplishment that comes from working for an organization with a clear mission and meaningful goals will help attract and retain your best workers.

3) Safety - Putting profits ahead of people will have current employees scrambling for the exits – and no one in line outside to replace them. In the digital age, stories of endangerment, maltreatment or harassment travel fast and far, whether through the news media or social networks. Safeguard your reputation by safeguarding your employees.

4) Opportunity - A key reason why employees, especially young ones and/or superstars, leave is because they feel like they have no future at the company. You can attract and retain your best talent by providing encouragement and support of continuing education, plus a clear path for advancement.

5) Atmosphere - Conflicts between coworkers or between employees and management are another common reason why good employees move on. Management must possess (or be trained to have) solid people skills that promote mutual respect and a healthy work environment.

Even if your manufacturing operation excels in all these areas, the improving economy can make it tougher to find skilled, reliable employees. The Bay Area, with its large collection of innovative, technologically advanced companies creating the next generation of products, poses distinct hiring challenges for the manufacturing industry. With over 11 years of expertise, Bayside Solutions understands the complexities of this unique market and how to deliver the most qualified professionals for the right technical environment. Contact us today to learn more.

Manufacturers have known since the Industrial Revolution that change is needed to improve processes and create better products. Yet not enough manufacturing organizations adapt quickly enough or make the right changes at the right time. According to management consultant Paul Glover, “Where companies go wrong is thinking that operational improvements start with processes, when they actually start with people.” And not just any people, but the employees who staff the plants. So why is management often reluctant to engage this valuable resource? And perhaps even more importantly, why and how should they do it?

The Barriers

There are several reasons why manufacturing management may avoid asking employees about their ideas for operational improvements. If policies and procedures have been implemented by current management, they may fear being blamed or looking weak if their work is found lacking. Even if the systems were acceptable when originally implemented, and merely need to adjust to changing markets or conditions, managers can feel defensive about having their work scrutinized. In addition, it’s sometimes hard for management to accept suggestions from the very people they are used to supervising. That “Father Knows Best” attitude, however, can prevent real progress – in both productivity and profit.

The Benefits

As Glover reports, “Employees can quickly tell us how to improve operational processes by letting us know what works and what doesn’t.” In fact, a common characteristic cited in all six winners of Industry Week’s “2012 Best Plants” award was, “. . . they engage the entire workforce as talented and knowledgeable contributors to operational excellence”. For Warren Rupp, Inc., such engagement resulted in reduced lead times, improved on-time delivery and continued improvements. Lockheed Martin’s Pike County Operations boasts 100% employee participation in empowered work teams – and had a 100% on-time delivery with 0% customer rejects to show for it. CNH Wichita Product Center included their operators in an effort to upgrade the layout of manufacturing lines, improving efficiency to the point that some workers could be shifted to other, overly taxed areas of the plant.

The Process

Genuine openness to feedback is the first step toward harnessing the power of employee participation in making manufacturing changes. Staffers must be encouraged to be critical thinkers and constructive communicators, while management must be willing to relinquish some control and develop a partnership with their employees. Such changes do not happen by themselves or overnight, but as evidenced by the examples above, the value of a collaborative culture in manufacturing plants cannot be understated.

You can extend that collaborative culture to your manufacturing staffing needs by partnering with Bayside Solutions. Regardless of what stage of development, design, testing, validation, manufacturing or integration our clients are in, Bayside Solutions can provide the ideal technical talent to execute your objective. With over 11 years of expertise, Bayside Solutions understands the complexities of this unique market and how to deliver the most qualified professionals to the right technical

With all the attention on tech start-ups these days, you’d think their founders would have the wealth market cornered. Not so fast – a CNN Money investigation recently revealed that eight of the ten wealthiest company founders in U.S. history were manufacturers. Over two-thirds of them started from scratch, without wealthy family backing to ease their way. Here’s how you can do the same.

Capital investing occurs at various stages of a company’s existence. Seed capital is given at the start-up stage, usually based on solid plans or a product prototype. Early-stage funding enters the picture once a company has been established and earned some revenue; it is often used for initial expansion opportunities. Finally, manufacturers can benefit from later-stage funding, which can be used for rapid growth or expansion, often in preparation for an IPO.

So where does all this cash come from? Manufacturers have a variety of resources to tap:

Venture Capital – While this may seem like an obvious source, VCs are not always the best choice for manufacturers due to their aversion to cash-heavy start-up costs, and/or a lack of patience in understanding the intricacies of manufacturing.

Angel Investors – These former entrepreneurs now look to help others. While it is definitely possible to secure some funding here, angel investors tend to have insufficient ability to fully support a manufacturing operation’s needs.

Parallel Companies – An established company who manufactures a product that could benefit from your technology can be a strategic ally. Since these relationships can easily cross from co-maker to competitor, however, you must be careful about the alliances you form.

Private Equity - Trading privately held shares of your company for cash is another route for raising funds. However, most private equity groups want a solid track record (at least a year) of significant revenue, so this option might be best saved for later-stage funding.

Borrowing Money - With straight debt, you don’t have to give up any control of your company. If you have the collateral and are willing to take the risk, this may be the way to go, especially early in the process of building your business.

Uncle Sam - For start-ups and small manufacturers, especially those that might not otherwise qualify for debt or equity financing, the government may be able to help. The Small Business Administration (SBA) guarantees loans made by banks, and Small Business Investment Companies (SBICs) guarantee monies that are invested by private companies.

Crowdsourcing – Potential customers have become a new financing trend. People who like a product’s potential can pool their money, usually via the Internet, to support a manufacturer. With small contributions, however, it can take a lot of believers to raise the necessary capital.

Of course, financial capital is only half the equation. Manufacturers also need human capital – and that’s where the specialty staffing experts at Bayside Solutions can help. Contact us today about fulfilling your need for experienced, top-notch manufacturing professionals.

In the early 2000s, contract manufacturers in Asia offered U.S. companies what seemed like a great solution to the rising cost of producing their goods at home. But for those who kept their manufacturing local, and for those who are now part of the burgeoning “re-sourcing” trend to move their operations back to U.S. soil, the tables have turned. Here’s why “made in the U.S.A.” has never been a better idea:

• Lower Labor Costs – As American technology has improved, the amount of labor required to produce a product has dropped. At the same time, the cost of labor is on the rise in Asia and other offshore manufacturing markets.
• Increased Shipping Costs – With fuel costs on the rise, any labor savings that a company still nets by outsourcing their manufacturing is increasingly being offset by the expense of sending materials abroad and returning the finished product back to the States.
• Corporate Values – Many companies have chosen to keep or return their manufacturing stateside because of environmental and social concerns. Pollution and treatment of labor in Asia are hot topics, while the safety of some products manufactured overseas has been called into question as well. Kerry Cunningham, CFO of shoemaker Okabashi, says that “We wanted to make sure it was a safe product. Also, that it’s safe for the environment. We felt that if we outsourced, we may have risked one or more of those values.”
• Underestimating the Bottom Line – Many companies who jumped on the outsourcing bandwagon were swayed by enticingly low labor costs. But when the total cost, including expenses such as executive relocation, travel, and shipping, is calculated, the savings just aren’t there – or are not sufficient to justify going offshore. As Sean Bandawat, president of kitchenware company Bromwell discovered when they considered outsourcing, “China isn’t any cheaper anymore.”
• Brand Value – Even with the improvements at home, the final cost of manufacturing stateside might not always be less. But business owners such as Bromwell’s Sean Bandawat have found that customers are willing to pay more for that “made in the USA” label – up to a 30% premium, in fact.

The changing market conditions and the realization that cheaper isn’t always better means that increasingly, manufacturing companies are staying home – or coming home. Dick Resch, the CEO of Krueger International, a Fortune 500 furniture manufacturer, sums up the shift in thinking nicely. “Insourcing is a trend I think we’ll continue,” he says. “Done right here, I think we can be competitive in the world market.”

If you’re looking to source the best employees in Engineering, Operations or Supply Chain, then turn to the specialized recruiting professionals at Bayside Solutions. With over 11 years of expertise, Bayside Solutions understands the complexities of the manufacturing market, and can put the most qualified professionals with the right skills on your team. Contact us today!

The engineering profession, like so many others, took a hit during the 2007-2009 recession, but many engineering specialties will have been bouncing back and will continue to do so in 2012.

What’s Hot
Aerospace, biomedical, computer hardware and mechanical engineering are among the specialties that have been adding engineering jobs in recent years.

Companies are showing interest in college graduates of engineering programs. “Out of 70 employers that came to our fall 2011 campus job fair, 25 were specifically looking for engineering students,” says Bill McCarthy, associate director of the career development center at Binghamton University in New York.

Those firms were hiring for positions in computer hardware, mechanical, industrial, materials and electrical engineering.

The upshot for qualified engineering job seekers in 2012? If you knock on doors in the right industry sector, you’ll be in demand.

Auto Industry Comeback Creates Engineering Jobs

The Detroit automakers and their business partners are beginning to get credit for improving their products, and engineers are being hired to further that effort.

“The in-demand engineering jobs are in mechatronics, LED lighting and lithium-ion batteries,” says Jim Bazner, global vice president of human capital solutions at MSX International, a managed service provider specializing in auto industry talent.

Competition is fierce to hire the few individuals with a background in both mechanical and electronic engineering, according to Julie Lustig, recruiting manager at MSX. “Folks with this experience can work for a lot of different organizations,” she says.

Despite Strapped Governments, Civil Engineering Shows Bright Spots

Recovery Act money is on the wane, but civil construction projects are creating work for engineers on projects that can’t wait any longer. “We’re projecting that we will be hiring about 30 engineers as program design managers, project managers and construction managers as well as civil engineers,” says John Robak, COO of Greeley and Hansen, an environmental engineering firm based in Chicago.

“New funding opportunities in green design, particularly for sustainable infrastructure facilities, will also support growth in 2012,” he says.

Unconventional Engineering Career Opportunities

Engineers will also find novel niches of opportunity in 2012. “We’ll probably hire two to three more engineers in 2012, with advanced degrees and experience, mostly mechanical engineers, because they can work across areas,” says Jeff Richard, president of CED Investigative Technologies, a forensic engineering and accident reconstruction firm in Shelton, Connecticut.

Richard’s firm looks for engineers who can communicate: His employees might be called on to introduce concepts to clients who don’t understand the technology, or to get in front of a jury.

Relocation May Be Less Than You’re Hoping For

Engineers will be on the move in 2012, some on less favorable terms than they might like. Many companies don’t even give their current employees help with moving expenses if their jobs are relocated.

And new entrants to the field may not find jobs in the engineering hot spots of San Diego, Seattle or Chicago. “Young grads might need to go to Detroit or Texas or Fargo [North Dakota] for a few years to accumulate technical skills,” says Paul Kostek, a former president of IEEE-USA.

Could an apprenticeship be right for you?

If you are looking for a career in the construction trades, an apprenticeship may be your way to career longevity and success.

Apprenticeship is a system of learning while earning, and learning by doing. It combines on-the-job training with related and supplemental instruction at a school. Programs operate under apprenticeship training standards agreed to by labor and/or management in accordance with state and federal laws.

To be successful in an apprenticeship, a person must possess perseverance, ambition, and initiative. Like earning a college education, the successful completion of an apprenticeship is the result of hard work on the part of the apprentice.

Apprenticeships run from 1 to 6 years, depending upon the trade. Most programs are for 4 years.

Where can you find information on apprenticeships?

The web site or local offices of your state Employment Development Department are the best places for you to start. Or, you can check out the site for the U. S. Bureau of Apprenticeship and Training.

If you are interested in becoming an apprentice, here are six basic steps to get you started:

1. Select a trade/occupation for which you have an aptitude or some previous experience.
2. Find out if you meet the minimum qualifications for that occupation.
3. Decide whether you can work under the required job conditions, which may be hazardous, dirty, uncomfortable or otherwise unpleasant.
4. Apply for an apprenticeship either directly to an employer in the occupations, the JAC, UAC, the appropriate union, or your state’s Employment Development Department.
5. Take aptitude or other tests where required.
6. If the apprenticeship committee has a waiting list of applicants, decide whether you’re interested enough to wait for an opening, or whether you should seek another option.

When you sign on to be a registered apprentice, you’ll received hands-on, practical career training; valuable work experience and education, national industry certification, and best of all, a paycheck from day one. You might also be able to earn college credit, even a degree. Once you complete your apprenticeship, you will be on your way to a successful long-term career with a competitive salary, and little or no educational debt.

Experts keep spouting grim statistics about the construction industry both nationally and locally. The construction industry’s unemployment rate is hovering around 25%, while for allied tradesmen such as brick layers, marble masons and stonemasons, it is closer to 60%. In the Bay Area, commercial development is supposedly dead, new retail construction is not on the horizon, and some predict that San Francisco may not see another new hotel for years. Construction companies stung by the ongoing recession have been lowering their bid prices 30 to 40 percent.

Yet some Bay Area construction companies have been steadily hiring to keep up with their workload, and for all the grim news, the Bay Area construction industry overall can see cause for hope.

Several companies are currently building residential developments, mostly condos and apartments.

One firm is working on a 250,000-square-foot casino and hotel in the Sierra foothills town of Jackson and on pre-construction for a $200 million expansion of Cache Creek Casino in Sonoma County. There are three other potential casino projects in the pipeline, just north of San Francisco, that have not yet been made public.

As for the public sector, the new $188 million Public Utilities Commission building at 450 Golden Gate Ave is currently under construction, while the $887.4 million rebuilding of San Francisco General Hospital is also underway.

Transportation and road construction projects are numerous. Construction began in 2009 on the 1.6-mile long parkway that will replace the narrow and seismically unsafe Doyle Drive on the approach to the Golden Gate Bridge from the San Francisco side. The $1 billion project will include two tunnels and a reconstructed interchange with Highway 1 and is slated for completion in 2014.

The San Francisco Municipal Transportation Agency launched a yearlong construction project in March along one bus line, kicking off a system-wide project to put all Muni cables and duct banks underground over the next 15 to 20 years.

Nearly $30 billion in San Francisco Bay Area transportation improvements are underway or near groundbreaking, including the Transbay Transit Center, a replacement of the Bay Bridge, East Span and two expansions of the BART (Bay Area Rapid Transit), both Southbound and further into the East Bay.

The San Francisco Redevelopment Agency is still overseeing a huge project, the 303-acre Mission Bay North and South Project, plans for which include several kinds of construction. Full development is expected to take 20 to 30 years, with the timing of projects based on market conditions.

There is plenty of construction work to be found in the Bay Area, if you know where to look. It’s easy to know where to look for the right workers for your construction project — contact Bayside Solutions today.