Labor and Employment

Logistics companies are increasingly using “flexible workers” to fill open positions, according to The Wall Street Journal (subscription).

What’s going on: More operators, competing with other employers that allow workers to make their own hours, are offering scheduling and shift flexibility.

• They’re using specialized software to do it, one source told the Journal, adding that the practice is one of the ways logistics firms are hiring in the runup to the holiday season.

Why it’s important: This “flexibility in a field known for rigid schedules and grueling workloads is a sign that the practices of app-driven operators are seeping into more traditional workplaces, particularly in a tight market for blue-collar workers.”

Vetted and ready: Not just anyone can fill a warehouse-worker slot, in part “because industrial jobs require specific training and expertise, logistics experts say.”

• To ensure those they bring on are qualified, logistics companies have begun using warehouse-tailored gig-worker apps, in which “[w]orkers set their availability in advance … and go through a background screening process” with the app company.
• Logistics companies often use traditional staffing agencies “particularly for the peak holiday season. But some are looking to fill jobs when they need people in a more targeted way, such as Monday mornings to catch up with e-commerce orders that came in over the weekend.”

A supplement, not replacement: Even companies that plan to stick with full-time employees are seeking ways to use the gig model to their advantage.

• “PepsiCo is testing a platform that allows warehouse workers to easily swap shifts from their smartphones, among other functions, said John Phillips, senior vice president of customer supply chain and global go-to-market.”

Prices paid by consumers for a variety of goods and services rose faster than expected last month, according to CNBC.

What’s going on: “The consumer price index, a closely followed inflation gauge, increased 0.4% on the month and 3.7% from a year ago, according to a Labor Department report Thursday. That compared to respective Dow Jones estimates of 0.3% and 3.6%.”

Core CPI: Core CPI, which excludes often-volatile food and energy costs, were in keeping with economist expectations, inching up 0.3% on the month and 4.1% year over year.

The details: Housing costs accounted for most of the inflation uptick.

• The shelter index—which composes about a third of the CPI weighting—rose 0.6% in September and 7.2% from September 2022.
• Food and energy costs rose 0.2% and 1.5%, respectively.
• Prices for services, “considered a key for the longer-run direction for inflation,” rose 0.6% excluding energy services.

What it means: “These data are not likely to change the trajectory of monetary policy, with the Federal Open Market Committee likely to pause [interest-rate hikes] once again at its Oct. 31–Nov. 1 meeting,” said NAM Chief Economist Chad Moutray. “Interest rates are not likely to see a cut until mid-to-late 2024.”
 

To say there was a lot for students to see and do at chemical manufacturer BASF’s MFG Day event at River Parishes Community College last Friday would be an understatement.

• The activities at the Gonzales, Louisiana, college were made possible by a partnership between with the school and the Manufacturing Institute, the NAM’s 501(c)3 workforce development and education and affiliate.

A rewarding experience: Hundreds of middle and high school students gathered on the campus for a chance to learn about manufacturing and how rewarding careers in the industry can be. 

• Representatives from approximately 10 manufacturing companies and various departments at the college set up demonstration and interactivity stations where the students could find out more about the different careers and training programs available in their community.
• BASF was platinum sponsor of this year’s MFG Day, a flagship initiative of the Manufacturing Institute that introduces students, parents and educators to the manufacturing industry.

Hands-on activities: Students got the chance to conduct science experiments (including one in which they made putty and learned how different chemicals react to create the substance), simulate firefighting, experience virtual and augmented reality welding systems, try out process control simulators and more. 

Readying the future workforce: Partnerships between academia and industry are helping to deliver the right workers to the right jobs, Louisiana Economic Development Secretary Don Pierson told the students and other audience members during the day’s kickoff event.

• The LED’s “FastStart workforce development [program], that integrates with community colleges and four-year universities across our state, help[s] guide and then make the recipe to deliver exactly what BASF needs, exactly what Shell needs, exactly what ExxonMobil needs” in its workforces, Pierson said.

Read the full story here.
 

The “Big Three” carmakers are being forced to keep laying off workers as the United Auto Workers union continues its strike, according to CBS News.

What’s going on: To date since the strike began, General Motors, Ford and Stellantis have had to lay off a total of 4,835 employees.

• “While we are doing what we can to avoid layoffs, we have no choice but to reduce production of parts that would be destined for a plant that is on strike,” Ford Vice President for Americas Manufacturing and Labor Affairs Bryce Currie said in a statement this week, CBS reports. “Strike-related layoffs are an unfortunate result of the UAW’s strategy.”
• In addition, many auto suppliers have suspended the employment of hundreds of workers because of the strike.

Why it’s important: Economic losses to the auto industry through the first three weeks of the strike totaled approximately $5.5 billion, Michigan-based economic consultancy Anderson Economic Group estimates.

• That figure includes $2.68 billion in lost revenue for the carmakers, $579 million in direct wages for workers, supplier losses of $1.6 billion and dealer and customer losses of $1.26 billion.

The NAM’s take: “The strike is causing tremendous economic harm throughout the economy,” said NAM Vice President of Economic Policy Brandon Farris. “It isn’t just the automakers, but every employee that has been laid off and many of the small and medium manufacturers that supply them.”

• “Many of those manufacturers may never recover,” he continued. “The NAM strongly urges a quick resolution. The longer the strike lasts, the harder it will be to undo the drastic economic harm caused to employees and manufacturers.”

As United Auto Workers President Shawn Fain prepares to give an update on labor-contract negotiations this afternoon, the UAW’s three-week-old strike at plants across the Midwest is hurting auto suppliers, according to The Washington Post (subscription).

What’s going on: “More than 3,000 supplier employees have been affected so far, a Washington Post tally shows, while an industry association says nearly 30 percent of its supplier members have resorted to layoffs.”

• More than 60% of suppliers said they expected to begin layoffs this month. Others say these cuts could “broaden over time” if the strike continues
• The strike has reverberated beyond the automotive sector, too. U.S. Steel recently announced 300 temporary layoffs after it was forced to idle an Illinois furnace because of the walkouts.

Why it’s important: “The [strike’s] fallout shows the outsize role the auto industry plays in the U.S. economy, to which it contributes about 3 percent of gross domestic product.”

• What’s more, the widespread shuttering of smaller auto suppliers—which number in the thousands and are often the main source of employment in the areas where they operate—would make it harder for General Motors, Ford and Stellantis to resume normal operations after the strike.

Manufacturers say: “The longer the strike, the more likely thousands of citizens across Michigan will face layoffs, and not just UAW members,” John Walsh, president and CEO of the Michigan Manufacturers Association (an NAM state partner), wrote in The Detroit News (subscription).

• “Layoffs, in turn, will affect restaurants, stores and local businesses. The economic impact will be felt throughout our families and our communities.”

After months of slow growth, China’s economy is showing signs of picking up speed, “offering a glimmer of hope” for the U.S. and Europe, according to The Wall Street Journal (subscription).

What’s going on: “Factories in September reported their first expansion in activity since the spring, while railway and flight bookings point to a bumper week ahead for tourism as China takes a break to celebrate its weeklong National Day holiday.”

The big picture: While economists say it’s too early to call an economic turnaround—owing in large part to China’s continuing property-market slump—there are signals that things are improving.

• “An official gauge of activity in the nation’s manufacturing sector rose to 50.2 in September from 49.7 in August, China’s National Bureau of Statistics said Saturday, the first time since March that its purchasing managers index crept over the 50 mark that separates expansion from contraction.”
• Similar gauges for nonmanufacturing sectors and construction also expanded at a faster pace.
• With that said, the country’s manufacturing and overall economic growth are well below what was expected earlier in the year—particularly in the aftermath of last year’s “zero-COVID” policies. That has implications for both China and the global economy, according to NAM Chief Economist Chad Moutray.

What’s next: Many economists believe that to continue this growth, China needs more government stimulus. This could come in the form of household tax breaks, or cash or vouchers that consumers can spend directly. 
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Washington, D.C. – Following the U.S. Supreme Court’s denial of cert to reconsider the D.C. Circuit’s decision affirming the validity of Optional Practical Training extension for STEM graduates, a program that expands access to hundreds of thousands of skilled workers for manufacturers and other American businesses, National Association of Manufacturers Chief Legal Officer Linda Kelly released the following statement:

“Today’s decision ends a years-long legal battle, and the NAM Legal Center is proud to have fought to preserve the STEM OPT program, which will aid manufacturers in filling critical, skilled positions. Thanks to the NAM Legal Center’s efforts, the STEM OPT program will remain a vital talent pipeline, providing opportunities for those graduates in science, technology, engineering and math to enhance their education through hands-on work.

Background: In 2018, after an anti-immigration activist group brought a lawsuit against the Department of Homeland Security seeking to invalidate the entire STEM OPT program, the NAM and two other business groups moved to intervene as defendants in the case. The U.S. District Court for the District of Columbia ruled in the NAM’s favor in 2020, holding that DHS acted within its statutory authority and in accordance with the Administrative Procedure Act by continuing the STEM OPT program, a decision the D.C. Circuit affirmed in 2022. Today’s decision by the Supreme Court not to hear the case maintains the Circuit Court’s ruling and preserves the STEM OPT program.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Today, the National Association of Manufacturers, the Confederation of Industrial Chambers of Mexico and the Canadian Manufacturers & Exporters hosted the inaugural North American Manufacturing Conference at NAM headquarters where they formalized manufacturers’ commitment to supporting close economic ties between the United States, Canada and Mexico. NAM President and CEO Jay Timmons, CONCAMIN President José Antonio Abugaber Andonie and CME President and CEO Dennis A. Darby signed a memorandum of understanding, which will serve as a roadmap to the cooperation between the three organizations and outlines the key goals and objectives for the partnership.

“There’s never been a greater need for us to stand together. The world is caught between different political and economic systems. One system, our system here in North America, enriches lives and lifts people up into freedom and prosperity, while other systems oppress their people and rob them of their liberty,” said Timmons. “Together, we are an indomitable force for prosperity. The United States–Mexico–Canada Agreement is a powerful force multiplier for the already unmatched productive power of our industries. And this agreement reminds us of what we can achieve when we work together.”

“Today we live in a new reality. The commercial competition with China, the pandemic, the conflict in Ukraine, among others, place us before a second great industrial transformation in North America, the first one being propelled by NAFTA 30 years ago. Some call it nearshoring, friend-shoring, ally-shoring or reshoring. No matter the name, the truth is that this phenomenon is modifying the structure of international industrial organization. North America is the epicenter of this transformation,” said Abugaber Andonie.

“Manufacturers are an important driver of economic development and prosperity. We are key players in the changes and challenges of the 21st century,” said Darby. “This agreement between representatives of Canada, the United States and Mexico reinforces the strong ties between our three economies and manufacturing industries and serves as a reminder that we can achieve so much more when we work together. We would like to thank our colleagues from the NAM and CONCAMIN for this agreement, and we look forward to future cooperation.”

The MOU calls for the organizations to share information on each organization’s services and activities and to jointly develop the North American manufacturing agenda of the future. The associations will share best practices and policy recommendations to assist manufacturers in addressing future commercial challenges in North America, including, but not limited to, global competitiveness. They will work collaboratively to understand the challenges facing manufacturers in North America and commit to host the North American Manufacturing Conference on an annual basis in Mexico, Canada or the United States, on a rotating basis.

Click here to view the full text of the MOU.

About Canadian Manufacturers & Exporters

Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies that account for an estimated 82% of manufacturing output and 90% of Canada’s exports.

CONFEDERACIÓN DE CÁMARAS INDUSTRIALES DE LOS ESTADOS UNIDOS MEXICANOS

The Confederation of Industrial Chambers of the United Mexican States, CONCAMIN, established in 1918, is the main organization representing the different industrial sectors and activities of high importance for the economic development of Mexico.

It is an effective business representation organization, recognized by its leadership and full capacity to develop projects and initiatives through its work commissions, that contribute to achieve sustained development for the Mexican industry.

• We are an Organization committed to the economic growth of the country.
• Obligatory organ of consultation of the three orders of government in all those topics related to the industry in Mexico, according to the Law of Business Chambers and their Confederations.
• Annually, about 30% of the Gross Domestic Product that is generated in the country comes from those affiliated with the Confederation of Industrial Chambers of the United Mexican States.

In accordance with the provisions of the Law of Business Chambers and their Confederations, we are an organization of consultation and collaboration of the State; Therefore, we maintain a close, harmonious and purposeful relationship with the three levels of government and the powers of the nation.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

For Husco—a family-owned manufacturer of hydraulic and electro-mechanical control systems—building a strong, cohesive culture is the key to retaining talent.

The Waukesha, Wisconsin, company is among the many manufacturers that find retention to be a top business challenge, as the NAM’s quarterly Manufacturers’ Outlook Survey shows. So how do they create this cohesion?

It all starts at the top: Angela Stemo, vice president of global human capital at Husco, says the company has always prioritized trust and communication between employees and their managers.

• “Our retention has grown and strengthened because of the emphasis we place on our leaders having strong relationships with their employees—get to know who they are, find out what their interests are,” said Stemo.
• The company also lays the groundwork for strong bonds between coworkers, which often flourish outside of work as well. “Once they feel connected to people within the organization, they’re going to want to stay,” explained Stemo. “They’ve built friendships, they’ve built connections, and they feel really tied to the organizational culture.”

How they do it: Husco conducts employee engagement surveys once a year and holds occasional in-person focus group discussions to get feedback from employees.

• “As our organization becomes more diverse, we are offering surveys in more languages,” said Stemo. “We have a large Afghan population on our shop floor as well as many Burmese workers, so we’ve had our surveys translated into various languages for all employees to participate.”
• “For us, we really try to listen to what people say and what their suggestions are,” said Stemo. “If it’s something feasible and we can implement it, we try to figure out how to do so.”

Career development and advancement: Stemo noted that workers have consistently mentioned career development and advancement in the focus groups and surveys. The company has responded by expanding its offerings:

• Husco offers its workers 100% tuition reimbursement—whether for an associate’s, bachelor’s or master’s degree—and fully funded internal and external training.
• The company also offers a “scholars program” that helps recent high school graduates complete a bachelor’s degree in mechanical engineering while working at Husco. Scholars receive full-time pay and benefits along with 100% tuition support.
• “Husco emphasizes and truly supports lifelong, continuous learning,” said Stemo.

Internal programs: Within the company, Husco offers career development programs that feature rotations through different departments, such as quality, manufacturing and design. These rotations prepare workers for leadership positions, usually in engineering or manufacturing, said Stemo.

• Husco provides the opportunity for employees to pursue external certifications in Six Sigma (green, yellow or black) and project management, as well as attend classes in negotiation, presentation and communication through a third party or university/college. If an employee has the desire and completes the appropriate request forms, the company approves it, said Stemo.

Patent awards: Husco also provides a monetary reward for ideas that contribute to new products, processes or anything else that might be patented.

• “There is a staff engineer within each division who partners with various legal teams to apply for a patent award,” explained Stemo. “We recognize the award with a plaque and a patent award bonus.”

Other perks and support: Husco offers employees the flexibility of working one day a week from home and provides free health risk assessments, flu shots and on-site medical consulting. Through a corporate membership, the company also provides employees with day passes to visit the local zoo or museum for free.

Philanthropy: Philanthropy is central to Husco’s culture, and the company encourages its employees to get involved and help their communities. Husco supports employees’ philanthropic efforts through local outreach programs and volunteer opportunities.

• Husco donates 10% of its profits to charitable organizations, putting a special emphasis on those that support K-12 education. The company also donates to colleges and universities, while providing scholarships for exceptional local students and the children of Husco employees.
• “We match dollar to dollar employee donations to hundreds of different organizations,” noted Stemo. “Our philanthropic efforts are a big part of our culture and what makes employees ‘sticky.’”

The last word: Stemo shared some advice for companies struggling with workforce retention: there’s no substitute for good leaders.

• “People leave bosses,” she said. “It may not be the final reason why someone leaves a company, but a lot of times, that’s the beginning of why someone starts looking for a job elsewhere or takes that recruiter call.”

Go deeper: The Manufacturing Institute—the NAM’s 501(c)3 workforce development and education affiliate—has many resources to help employers retain and develop their teams.

• Start with this study on boosting retention and employee engagement, and register for an upcoming webinar on company culture.
• Interested in labor data and key workforce insights? Sign up for the MI’s new monthly publication, Workforce in Focus.
• For more on the latest trends and best practices in workforce development, sign up for the MI’s Workforce Summit on Oct. 16–18 in Atlanta. Click here for more information and to register.

For Husco—a family-owned manufacturer of hydraulic and electro-mechanical control systems—building a strong, cohesive culture is the key to retaining talent.

The Waukesha, Wisconsin, company is among the many manufacturers that find retention to be a top business challenge, as the NAM’s quarterly Manufacturers’ Outlook Survey shows. So how do they create this cohesion?

It all starts at the top: Angela Stemo, vice president of global human capital at Husco, says the company has always prioritized trust and communication between employees and their managers.

• “Our retention has grown and strengthened because of the emphasis we place on our leaders having strong relationships with their employees—get to know who they are, find out what their interests are,” said Stemo.
• The company also lays the groundwork for strong bonds between coworkers, which often flourish outside of work as well. “Once they feel connected to people within the organization, they’re going to want to stay,” explained Stemo. “They’ve built friendships, they’ve built connections, and they feel really tied to the organizational culture.”

How they do it: Husco conducts employee engagement surveys once a year and holds occasional in-person focus group discussions to get feedback from employees.

• “As our organization becomes more diverse, we are offering surveys in more languages,” said Stemo. “We have a large Afghan population on our shop floor as well as many Burmese workers, so we’ve had our surveys translated into various languages for all employees to participate.”
• “For us, we really try to listen to what people say and what their suggestions are,” said Stemo. “If it’s something feasible and we can implement it, we try to figure out how to do so.”

Read the full story here.