While most people are not familiar with the details of what has been known as the “gig” or freelancer economy, chances are, however that you’re taking advantage of it. For example, if you took an Uber out to dinner last weekend to enjoy that extra glass of wine, then you took advantage of this new, non-employee universe. Uber is not alone in changing how we consume and employ temporary labor (for minutes, hours, days or longer). Like Uber, technology firms such as Wonolo connect pre-qualified and vetted workers (e.g., background check, drug screening) with general labor, warehouse operations, delivery/logistics and other opportunities for “on-demand” work. Why Freelancing is The Next Work Industry Wonolo is one of hundreds of online platforms and apps that serve business-to-business needs for matching work requirements with … [Read more...] about Contractors Represent Both Opportunity and Potential Risk for Manufacturers
Industry News
How To Fix The Manufacturing Talent Gap
At a recent monthly meeting of local executives that we participate in, a recurring theme emerged: a significant loss of talent and skills in manufacturing, challenging to replace with new hires. A primary reason for this talent gap is demographic: the retirement of the Baby Boomer generation. Some sources indicate that 10,000 Baby Boomers reach retirement age daily, though not all are leaving the workforce immediately upon eligibility. Pew Research Center reports that by the end of 2021, nearly 50% of adults over 55 had retired. However, among those aged 55-64, less than 20% had chosen retirement. This specific age group is increasingly impacting manufacturers, many of whom are inadequately prepared in knowledge management to transfer these workers' 40+ years of experience to new recruits or systems. Deloitte Consulting and … [Read more...] about How To Fix The Manufacturing Talent Gap
Rethinking Middle Class Manufacturing Income Inequality in North America
A society in which everyone, especially the middle class, has an opportunity to increase their compensation level at an annual pace that outpaces inflation, is a dream for just about everyone, regardless of political beliefs. This of course requires a robust economy and a balance of trade such that a country can both produce and consume. But recently, the chatter of “income inequality” among commentators and the news media has grown to a fever pitch. It is also a constant rallying cry of the Presidential candidate pool. In a recent ABC news article, Larry Mishel, Distinguished Fellow at the Economic Policy Institute, a left-leaning think tank, puts it bluntly: “Working people have taken it on the chin for many decades. They’ve not been able to get the help of government to be on their sides, the employers are suppressing their … [Read more...] about Rethinking Middle Class Manufacturing Income Inequality in North America
Is the August PMI Decline Cause for Concern?
For the first time in nearly three years, the PMI (manufacturing index) registered in negative territory, declining to 49.1 for August 2019. This represents a decline of 2.1 points (or percentage points as ISM reports) from the July report. For those not familiar with the ISM indexes, manufacturing (PMI) and non-manufacturing, a number above 50 indicates economic growth within the sector, whereas a number under 50 indicates contraction. This reported number may (or may not) be cause for concern. But it is important to put this information in context. In this regard, ISM indexes are a composite index of underlying components. These individual elements are also measured on the same scale. According to ISM spokesman and chair of the Manufacturing Business Survey Committee for ISM, Timothy Fiore, “the New Orders Index registered 47.2%, a … [Read more...] about Is the August PMI Decline Cause for Concern?
Tesla Channels Henry Ford’s Pricing (and Supply Chain) Strategies
We were driving in a caravan to a friend’s dock the other day on a beautiful late-summer Midwestern day. The line of cars winding through the back coastal roads near Lake Michigan was notable not for our vehicle (a V8 truck) but for what was absent: a Tesla. All four other cars in our group were Tesla Model Xs, all of which had been purchased in recent months by friends who previously drove a mix of fully loaded GMCs, Suburbans, Expeditions, and other similar vehicles. This proves that Tesla’s ingenious pricing strategy is working. On January 1 of this year, a Tesla Model X (the three-row SUV) cost $120,990. The exact same car in September was priced at $79,990. Comparable gas or electric top-end large SUVs from Ford, GM, BMW, Mercedes, and others still cost $100K and up. That's a roughly 34% price drop, for those keeping score. … [Read more...] about Tesla Channels Henry Ford’s Pricing (and Supply Chain) Strategies
