Input Stories

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.”

What sort of computer can evaluate 67 million potential solutions in 13 seconds? Only a quantum computer. But what sort of problem has 67 million solutions to begin with?

Many manufacturing challenges do, from optimizing supply chain logistics to finding the most efficient way to load millions of pallets. In recent years, another mind-bendingly complex problem has begun to occupy the industry: how to get potentially dangerous chemicals in a category known as PFAS out of use and out of our environment.

Quantum computing firm D-Wave says that quantum holds the key, as its massive computing power could find new ways to remove or remediate the chemicals, or even help identify which of the thousands of chemicals in this class are indeed dangerous. We recently spoke to D-Wave Global Government Relations and Public Affairs Leader Allison Schwartz to get the details.

How it works: As Schwartz explains it, quantum is “a completely different form of computing.”

• “Due to superpositioning and quantum entanglement, quantum can look at all possibilities at once and come back with an answer very quickly,” she added.
• However, some of the best solutions are a product of both classic computers and quantum, an option known as “hybrid” applications. For example, Davidson Technologies collaborated with D-Wave to create a hybrid solution that produced the aforementioned 67 million scenarios in 13 seconds.
• “Classical computing alone can’t do that,” Schwartz observed.

When quantum meets PFAS: So how does this help with PFAS? Schwartz told us that there are two different types of quantum computing that would prove useful.

• The first, annealing quantum computing systems, are superior at providing optimized solutions. These systems can quickly run through millions of scenarios that model potential chemical spills, methods of remediating the chemicals, techniques for removing them from operations entirely and much more. These systems are commercially available today through the cloud.
• Meanwhile, gate model systems offer another avenue for dealing with PFAS—they can potentially invent alternative molecules that could substitute for the dangerous chemicals. However, gate-model systems are not large enough yet to tackle real-world problems.   

Doing the research: Quantum could also play a role in determining which chemicals are harmful in the first place, added Schwartz. There are thousands of PFAS chemicals out there, but so far, only a few hundred have been studied.

• To examine the effects of various chemicals, researchers and companies will have to undertake clinical trials. Quantum can help optimize the organization of those trials, as well as aid in analyzing the results—for example, by assisting with medical imaging reconstruction .

Read the whole story here.
 

The Creators Wanted campaign—an initiative of the NAM and the Manufacturing Institute aimed at driving excitement about modern manufacturing careers—is concluding the wildly successful run of its immersive experience with a significant finale at the Circleville Pumpkin Show, one of the largest annual festivals in the country.

By the numbers: Since it began last year, Creators Wanted has created quite a stir.

• More than 13,000 students, educators and community leaders have engaged with the tour directly.
• Online, 1.5 million students and mentors have signed up to explore modern manufacturing careers.
• A whopping 84% of tour participants now view manufacturing careers more positively.
• Positive industry perception among parents has jumped nationwide from 27% to 40%, thanks in part to the tour and associated MI programs.

Watch a recap of the tour featuring the voices of students, educators and parents who share their perspective on the tour’s impact.

Next week: From Oct. 17–21, half a million attendees, including families and students, will have a chance to experience the tour’s immersive setup, a featured event at this year’s show.

• Manufacturing team members from the Honda and LG Energy Solution joint venture (the tour stop’s sponsor) will be present, offering insights into modern manufacturing careers.
• The Creators Wanted online training program and jobs resource will be showcased, and the tour will engage with local schools, particularly STEM students, amplifying the opportunities in manufacturing.

The big picture: With industries vying for the best talent amid continued labor challenges, initiatives like the Creators Wanted Tour play an essential role in reshaping public perceptions and attracting the next generation into manufacturing over other potential career options.

What’s next: “Now, we know our work is far from over, and so our work goes on with the MI, building on this momentum, along with Creators Wanted digital resources, ” said NAM President and CEO Jay Timmons, who also serves as chairman of the board of the MI.

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.”

America’s aging population is one reason consumer spending has remained robust even as the Federal Reserve has raised interest rates, The Wall Street Journal (subscription) reports.

What’s going on: As of August, a record 17.7% of the U.S. population was 65 or older.

• Senior citizens, whose finances tend to be relatively robust, “accounted for 22% of spending last year, the highest share since records began in 1972 and up from 15% in 2010,” according to Labor Department data cited by the Journal. 

Why it’s important: “Our large share of older consumers provides a consumption base in times like today when job growth slows, interest rates rise and student-debt loan repayments begin again,” Susan Sterne, chief economist at Economic Analysis Associates, told the news outlet.

Longer lives, more spending: In addition to living longer, the elderly are more active than ever before, spending on traveling, hiking, cruises, e-bikes and more.

• “The average household led by someone age 65 and older spent 2.7% more last year than in 2021, adjusted for inflation, according to the Labor Department, compared with 0.7% for under-65 households.”

Recession buffer: Baby boomers have amassed more than $77 trillion in wealth, according to the Fed—and some economists say that money will help prevent an economic recession.
 

A proposed cybersecurity-labeling program for Internet of Things devices is a good idea for manufacturers and consumers alike—but it should be undertaken in the right way, the NAM recently told the Federal Communications Commission.

What’s going on: “The cybersecurity certification and labeling program—which is still in its proposal stage—is called Cyber Trust Mark and would be voluntary,” Government Technology reports.

• Participating companies would be able to utilize the cybersecurity label to signify that their products “meet certain cybersecurity criteria like ‘unique and strong default passwords, data protection, software updates and incident detection capabilities,’ and other features identified by the National Institute of Standards and Technology.”

What we’re saying: It is imperative that the FCC—which would oversee the initiative—keep manufacturers involved at all stages of development, NAM Vice President of Domestic Policy Charles Crain told the commission late last week.

• “To drive robust participation in the program and enhance cybersecurity protections for consumers, the NAM respectfully encourages the FCC to work closely with industry to finalize criteria and procedures that remain voluntary but, when implemented, prove workable for manufacturers and trusted by consumers,” he said.

​​​​​​​​​​​​​​​​​​​​​What should be done: There are six main actions the FCC should take to ensure the success of the program, Crain said.

• Collaborate with manufacturers as the program is being developed.
• Keep participation in the program voluntary.
• Ensure that the process of qualifying for and receiving a Cyber Trust Mark is “trusted, practical and flexible.”
• Make program criteria reflective of the varying degrees of risk that different products pose to consumers.
• Institute a legal safe harbor protecting manufacturers from liability.
• Educate consumers about the program and how they can protect themselves from cybersecurity threats.

The last word: “Manufacturers of IoT devices continue to take steps to enhance the cybersecurity measures implemented within these devices in order to secure them against threats and ensure that consumers are protected to the maximum extent possible,” Crain added.

• “The FCC’s proposed labeling program is thus an exciting opportunity for companies to show the progress they have made in this important arena, and for the industry to cohere around a set of practical, implementable best practices to protect the American people.”

The Bridge of the Americas in South-Central El Paso, Texas—one of the largest land ports for U.S.–Mexico trade—restarted commercial operations on a limited schedule yesterday, according to a notice from U.S. Customs and Border Protection.

• It’s a development that the NAM advocated, having engaged in continued talks with the Biden administration and relevant agencies since cargo movement was suspended last month.  

What’s going on: The port of entry reopened at 6:00 a.m. Tuesday and closed at 2:00 p.m., a schedule it will keep temporarily each week Monday through Friday.

• In recent weeks, large numbers of migrants have crossed the Texas–Mexico border, and the CBP stopped commercial movement along the Bridge of the Americas so federal customs agents could assist with the influx.

Why it’s important: “The temporary bridge closure and the Texas Department of Public Safety’s (DPS) enhanced safety truck inspections at El Paso’s two other truck ports of entry have drastically slowed cargo truck crossings in recent weeks between El Paso and Juárez, Mexico,” according to the El Paso Times on MSN.

• Last week, the value of goods in thousands of trucks backed up on the Mexican side of the border “had surpassed $1.5 billion,” according to a source cited by Reuters (subscription).
• Prior to the temporary closure, the bridge had been processing approximately 500 northbound trucks a day, according to the El Paso Times.

The NAM says: “Mexico is the largest trading partner of the U.S. and facilitating trade between the two countries is vital to manufacturers’ operations,” said NAM Director of Trade Facilitation Policy Ali Aafedt. “The NAM will continue to share the impacts of the disruption with the federal government and urge solutions to resolve the continuing backlog.” 
 

U.S. producer prices for final demand goods and services rose more than expected last month, largely owing to higher energy costs, Reuters (subscription) reports.

What’s going on: “The producer price index for final demand rose 0.5% last month, the Labor Department said on Wednesday. Data for August was unrevised to show the PPI accelerating 0.7%.”

• Reuters-polled economists had expected the PPI to increase 0.3%.
• “In the 12 months through September, the PPI increased 2.2% after advancing 2.0% in August.”

Core PPI: Core producer prices—prices excluding food, energy and trade services components—rose 0.2%, the same increase seen in August.

• “In the 12 months through September, the … core PPI increased 2.8% after climbing 2.9% in August.”

Coming up: The Federal Reserve is expected to leave current interest rates unchanged when it meets Oct. 31 and Nov. 1, according to Reuters.