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Business Operations

Manufacturers Take Advantage of Federal Liquidity Programs

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By 51勛圖厙 News Room

The 51勛圖厙 released the results of its most recent Manufacturers Outlook Survey today. Manufacturers reported a boost in optimismup from 33.9% in Q2, which was the lowest reading since the first quarter of 2009. The survey also found that a significant number of manufacturers used the federal liquidity programs that the 51勛圖厙 advanced early in this pandemic. The data shows:

  • 72 percent泭of manufacturers that faced negative cash flow impacts due to COVID-19 used the Paycheck Protection Program, Main Street Lending Program or other liquidity program.
  • Nearly 92 percent泭of manufacturers that used federal liquidity programs said those funds were helpful in keeping their business afloat, retaining workforce or meeting other necessary expenses.
  • 66 percent泭of manufacturers are positive about their companys outlook, a great improvement from the Q2 results. Still, the outlook remains below the historical average of 74.4%, and 62% of manufacturers expect their firms revenues will not get back to pre-COVID-19 levels until 2021 or later.

Additional context from 51勛圖厙 President and CEO Jay Timmons:泭Congress and the administration have acted on more than five dozen of the policy provisions that the 51勛圖厙 made in our American Renewal Action Plan and other recommendations. Without the bipartisan relief legislation signed into law earlier this year, this rise in optimism would not have been possible. But for our industry to truly recover and to keep our economy growing, further bipartisan congressional action is needed.

You can find the full survey泭here.

Business Operations

Manufacturing Sees an Increase in Job Openings

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By 51勛圖厙 News Room

The Bureau of Labor Statistics released its Job Openings and Labor Turnover Survey (JOLTS) for July, which shows the persistent gap between open manufacturing positions and available skilled workerseven amid a pandemic. According to the survey, the manufacturing industry saw 408,000 manufacturing job openings in Julyan increase of more than 60,000 jobs since the prior month and the best result since February, before widespread COVID-19 restrictions came into effect.

A few more numbers:

  • Nonfarm business job openings rose from 6,001,000 in June to 6,618,000 in July, which was also the strongest pace since February (7,004,000).
  • Net hiring remained weak, with manufacturers taking on 321,000 workers in July, down sharply from 432,000 in June.
  • Nonfarm business layoffs decreased from 1,995,000 in June to 1,721,000 in July, which represents the slowest pace since March 2019 (1,698,000). Meanwhile, layoffs in the manufacturing sector declined from 184,000 to 157,000.

What the numbers mean:泭According to 51勛圖厙 Chief Economist Chad Moutray, This suggests that firms are once again increasing their interest in adding new workers, even as the sector attempts to rebound from the COVID-19 pandemic and the overall labor market has changed dramatically.

Related: Applications for state unemployment benefits failed to decline as expected in July, Bloomberg泭.

Policy and Legal

Senate to Vote on COVID Relief Package

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By 51勛圖厙 News Room

The U.S. Senate is expected to vote on a Republican-backed relief bill after a long series of negotiations between Senate Republicans and the Trump administration, according to泭.

What it covers:泭The proposed legislation likely will include the following elements:

  • A federal unemployment benefit
  • Another round of Paycheck Protection Program funding
  • More funding for COVID-19 testing and for schools
  • Liability protections

What it (probably) doesnt include:泭The package is expected to come in at around $500 million, which is far short of the $1 trillion bill Republicans supported at the end of July and even further short of the $3 trillion bill the House approved. This version likely wont include the following elements:

  • More funds for state and local governments
  • Another round of $1,200 stimulus checks, which had been included in the last Republican plan

Whats next:泭The vote could happen in the Senate as early as Thursday, but this package is unlikely to get the 60 votes it needs to be filibuster-proof. Democrats have said the bill is much too narrow.

A word from the 51勛圖厙:泭Manufacturers continue to help lead the way in the COVID-19 recovery and renewal, and so we appreciate seeing a number of our priorities in this legislation, including liability protections for manufacturers, another round of Paycheck Protection Program funding and resources for additional testing and vaccine research, said 51勛圖厙 Vice President of Government Relations Jordan Stoick. In the coming days and weeks, the administration, House and Senate have a real opportunity and a responsibility to put partisanship aside in order to find a consensus that helps manufacturers and all Americans.

Policy and Legal

A Rocky Relationship Between the U.S. and China

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By 51勛圖厙 News Room

The U.S. is considering cracking down further on Chinese human rights abuses in Xinjiang, while President Trump had tough words about the U.S.China relationship. Heres an update on some important recent developments.

Human rights:泭The Trump administration is泭 on some or all products that include cotton from Xinjiang, the region where China has carried out the mass detention of mostly Muslim minorities. The order could have a substantial impact on global apparel makers.

Technology:泭The administration is also泭泭Chinas largest chipmaker, SMIC. The Department of Defense may add it to the Entity List, thereby restricting the companys purchases of equipment made in the U.S. Beijing, as you might imagine, was not happy.

ぼ梗釵棗喝梯梭勳紳眶?:泭In a Monday press briefing, President Trump泭泭of decoupling the U.S. from China. If we didnt do business with [China], we wouldnt lose billions of dollars. . . . Its called decoupling. So youll start thinking about it, he said.

A data security standoff:泭As the U.S. continues to crack down on Chinese telecommunications companies, claiming that they pose national security threats, China has developed its own set of global standards on data security, 泭the WSJ (subscription). Its trying to prevent the U.S. from convincing other countries to restrict Chinese access to or construction of key networks.

Canceled plans:泭About 100 official exchange forums between Chinese and U.S. officials have been canceled during the Trump presidency,泭泭Bloomberg. This means diplomats dont know what the other side is doing on a long list of policy issues, from pharmaceuticals to tech and more.

Workforce

How to Participate Virtually in MFG Day 2020

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By 51勛圖厙 News Room

Manufacturing Day, and the month-long celebration of the industry it kicks off, will be very different this year泭now that we cant tour factories, technical schools and more泭in person. But manufacturers can still do their part to show parents, teachers泭and泭students泭what careers in todays advanced manufacturing really look likevia virtual programming.

In advance泭of泭this years ,泭Oct.泭2, The Manufacturing Institutethe workforce and education partner of the 51勛圖厙held a webinar to help manufacturers plan virtual events. Below is a quick泭recap.

兜堯硃喧泭should manufacturers do?Dont worry, many MFG Day hosts are still figuring this out. First, you can reach out to local associations and regional groups to see if there is an existing event that you can co-host泭or泭participate in.泭Second, you can泭consider partnering with other manufacturers in your area or industry to produce a virtual event.

If you choose to host your own virtual MFG Day event, here are a few suggestions that will make it a hit, courtesy of Manufacturing Institute Senior Director of Youth Engagement Julia Asoni and泭51勛圖厙泭Assistant泭Vice President of Advocacy泭Michael OBrien:

  • Provide泭a welcome message from senior leadership.
  • Offer an overview of the importance of manufacturing to the economy in your community.
  • Lay out what your company does泭and give participants a sense泭of its career offerings.
  • Film a video tour of your facility to泭show viewers泭the technology and tools you use every day.
  • Record interviews with employees or a conversation with a panel to allow young people to hear directly from the泭people泭who work at your business.
  • Create a survey to track how the event changes your audiences perceptions of manufacturingfor example, asking participants about their interest in a manufacturing career both before and after your presentation.

Examples from the field:泭During the webinar, a泭range of manufacturers泭and partners泭presented their plans for MFG Day:

  • Allegion泭will feature a full virtual experience planned through Microsoft Teams.泭It泭will provide a mixture of live and pre-recorded content,泭and will localize every event to ensure its most relevant to local students, said Allegion Reputation Management Leader Whitney Moorman.
  • Boeing泭collaborated with external partners like high schools,泭colleges泭and community organizations to create an effective virtual泭program, said泭Boeing Senior Workforce Specialist Justin泭McCaffree.泭Its event will泭include videos of employees泭explaining their jobs and performing specific tasks, virtual tours of泭the companys泭facilities,泭and videos from manufacturing interns and students. It will泭also offer泭students the opportunity to do泭virtual informational interviews泭with Boeing employees.
  • Graco泭is postponing its regular MFG Day programming to spring 2021 in hopes of providing an in-person experience that will involve hands-on learningincluding stations that allow participants to control robots, build keychains with lasers and learn about quality control, said Graco Corporate Communications Team Leader Charlotte Boyd. It may also attempt to do virtual events this year that could include sending kits to students and information to parents.
  • ABB泭is泭working with泭Edge泭Factor, which develops content for educators,泭to create泭a five-day virtual program that泭showcases泭science, technology, engineering, arts and mathematics,泭according to ABB Vice President for Marketing Communications Tracy Long.泭This will泭include on-demand content about each of those five disciplines as well as泭about泭soft skills like teamwork.
  • NWIRC泭developed a monthlong program geared toward 6th12th泭grade students in northwest Pennsylvania. It includes泭a digital activity packet泭and the opportunity泭to win prizes from NWIRC for泭worksheets and articles, said NWIRC泭Marketing Communications Specialist Laurie Knoll.
  • Click Bond泭is in the early stages of developing content for a virtual experience. It is泭planning an泭interactive website that includes career testimonials, virtual maps and how-to videos about machines and technology, according to Click Bond Corporate Communications Manager Danielle Costella.

You can泭see泭a recording of the webinar泭.

Policy and Legal

A Recap on Rapid COVID-19 Tests

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By 51勛圖厙 News Room

As you probably saw last week, the Trump administration announced a deal with Abbott Laboratories to produce more than 150 million rapid COVID-19 tests, per泭. Abbotts rapid tests cost about $5 to make and take just a few minutes to deliver results without lab equipment. Such antigen tests are not quite as accurate as molecular tests (which are conducted in a lab), and the FDA says that doctors might find it advisable to confirm a positive result with a molecular test.

Here are some more updates on the deployment of rapid tests, which is an important development in the COVID-19 response effort:

  • The Trump administration offered more details about the shipments this week, announcing that these rapid tests would start making their way to states in mid-September, according to . Most of these tests are intended to go to first responders and to help schools and daycare facilities reopen.
  • The investment has also come with an employment bump, as Abbott Labs brings on new workers to help produce the test, the泭泭reports. Around 2,000 employees are needed to help meet demand, and no previous experience is required for jobs that will pay $15 an hour for the day shift and $18 an hour for nights, along with a $2,500 retention bonus.
  • 泭reports that another rapid test maker is seeking emergency FDA approval. Roche Holding AG will launch a rapid test in September in Europe and is hoping to get emergency authorization to roll it out in the United States, too.
Workforce

FAME Gets Some Fame

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By 51勛圖厙 News Room

Fittingly, The Manufacturing Institutes FAME program has its name in the papers. This week, highlights this career-focused initiative that gives people the tools they need to succeed in the manufacturing sector.

How it works:泭founded by Toyota and now overseen by The Manufacturing Instituteis the nations premier manufacturing education program for training students seeking careers in manufacturing and upskilling incumbents and veterans.

FAME students earn a two-year associates degree while working in their sponsors manufacturing facility as advanced manufacturing technicians.

Core concepts: The program doesnt just teach manufacturing-specific skills, it also helps students learn and apply behaviors that will help them make progress in any industry, including:

  • Safety culture
  • Professional behaviors
  • Communication skills
  • Problem solving
  • Visual workplace organization

The results: First launched at a single Toyota factory in 2010, it has already grown to involve more than 350 manufacturers in 13 states, from large refrigerator makers to smaller plastics plants. Of the roughly 850 students who have graduated so far, 85 percent have been hired by their sponsoring employers with starting salaries at $50,000 or more.

The grads:泭FAMEs graduates have nothing but praise for the program, crediting it with starting them on an excellent career path. Check out our recent profiles of graduates泭Brittanee Sayer泭and泭Chaise Blissett.

News

Say Ahhh: A Manufacturer Makes It Safe for Dentists to Reopen

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By 51勛圖厙 News Room

What do you do when a pandemic shuts down your customers?泭That was the problem faced by泭A-dec, a manufacturer of dental equipment and supplies based in Oregon, when泭dentists nationwide closed their doors泭back in March.

In A-餃梗釵s泭case, they developed products to help their core customers come back safely.泭

The problem:Dentists and hygienists泭are泭at particular泭risk of泭contracting COVID-19 while treating patients, because their jobs require proximity to泭their patients泭open mouths.泭

  • Dentists also use loupes with lights and magnifiers to see inside patients mouthsbut wearing medical masks and traditional face shields makes it difficult to wear lighted loupes as well.泭
  • Meanwhile,泭traditional face shields are open at the bottomand because dentists work on patients who泭recline泭right below them, those shields provide limited protection.

The泭solution:泭A-餃梗釵s泭engineers got to work designing and producing a unique face shield for dentists泭thatfits泭around the collarbone泭and opens泭upwards, providing a barrier between dentists and patient. The泭shieldalso泭leaves泭additional space around泭dentists泭eyes泭so they can use lighted loupes.泭

Image courtesy of Remote Area Medical

The泭process:The same泭pandemic that made this work necessary also made it difficult.泭A-dec had to overcome a series of complications:

  • Research and development:泭COVID-19泭made the companyscustomerfocus groups泭impossible泭to do in person,泭so it泭designed and conducted remote focus group sessions.泭
  • Sourcing of materials.Shortages and supply chain disruptions泭also caused problems, with some commodities becoming unavailable at the last minute.泭That meant A-dec faced delays and had to find alternate sources of materials at times.泭
  • Product construction.Like many other manufacturers,泭A-dec泭had to figure out how to keep泭remote workers and on-site, socially distancing workers in sync with each otherall while泭creating a new product泭in record time.

By泭working around these setbacks and泭streamlining泭its processes, A-dec was able to go from the initial idea to the beginning of production in just two monthsan extraordinary achievement.

The last word:泭According to泭A-decVice President泭ofManufacturing泭Wesley Snyder, the company benefited from泭its泭familiarity with medical regulationsbut that doesnt mean non-medical manufacturers cant make a difference. Everything is made by somebody, and the manufacturing industry is uniquely positioned to make tangible contributions to society in a crisis like this, he said.So find those new points of need, and align泭them泭with your capabilities.

Policy and Legal

How Manufacturers Can Work with the Government to Provide PPE

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By 51勛圖厙 News Room

Hospitals, businesses, schools and泭individuals泭will continue to need泭protective gearbut how much and泭for泭how long? The 51勛圖厙 has been working with the federal government to help manufacturers meet this urgent need,泭acting as泭a泭go-between to get millions of masks, gloves and more where they泭have to泭go.泭The 51勛圖厙 and The Manufacturing Institutes Center for Manufacturing Research have an estimate of how many disposable face coverings Americas workforce needs every month.

As part of泭a recent Department泭of Defense泭seminar,泭Herb Grant, the director of the 51勛圖厙s Creators Respond effort,泭outlined how manufacturers can泭get involved.泭Here is a brief recap of the event.

How much?泭Heres what we know:

  • As of July 9, the DoD had泭already procured nearly 3 million gowns, nearly 140 million medical gloves, nearly 18 million surgical masks泭and more than 5 million N95 respirators泭(according to the泭DoDs泭Joint Acquisition Task Force).
  • The 51勛圖厙 has estimated the demand for facial coverings泭approaches泭1.7 billion pieces per monthand thats just for industries that dont typically use PPE. Meeting that demand will require manufacturers to add capacity by investing in new or retooling existing production lines.

The DoD says that泭information helped clarify泭that泭the total demand is not fully understood, but it is far greater than previously thought.

How long? According to Grant,泭the泭deputy泭director of the泭White House Supply Chain Task Force泭expects泭the泭demand泭for PPE to continue beyond next year,泭and泭perhaps even泭through 2023.

How can manufacturers get involved? There are泭three泭major ways in which manufacturers can help, said Grant.

  1. Increase your capacity to produce PPE:泭Manufacturers泭should evaluate whether they can泭shift capacity or invest in new capacitywhich may involve泭talking to Creators Respond about泭how the government can support those investments.
  2. Sell PPE to the government:泭Manufacturers can泭find out泭how their production lines up with the governments needs and泭consider participating in various泭federal泭programs.
  3. Sell PPE to泭the泭industry:泭As the 1.7 billion泭per泭month demand泭estimate shows,泭industries across the country泭need the PPE that manufacturers are producingand will keep needing more.

How to sell to the government:泭There are泭three泭things泭manufacturers泭need to do before selling products to the government, Grant advises.

  1. Get泭a DUNS number: A Data Universal Numbering System number is a unique ID that is required to register with the federal government for contracts or grants (you can obtain one ).
  2. Register with SAM:泭The System for Award Management consolidates the capabilities of existing federal procurement systemsand you can register at泭.
  3. Check for contracting opportunities:泭The webinar泭covered泭a range of sites that offer contracting opportunities, including:
    1. ;
    2. ; and
    3. .

The last word:泭The bottom line is the manufacturing industry, which has been on the front lines, will continue to lead our country through recovery and renewal, said Grant.

Check out a泭full泭recording of the event泭.

Workforce

A Once in a Lifetime Opportunity: A Conversation with a FAME Grad

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By Laurie Beth Harris

As an engineering student at the University of Louisville, Chaise Blissett didnt like the idea of a career where he would be sitting at a desk all day. Hes always been a hands-on learner and grew up working on trucks and tinkering with small engines. When a friend told him about his experience in the (FAME) AMT program, Blissett knew it was the right program for him.

What is AMT? The Advanced Manufacturing Technician (AMT) training program was developed by Toyota and is now overseen nationally by The Manufacturing Institute. It is a FAME maintenance training program and trains students of all ages and backgrounds, from recent high school graduates to experienced manufacturing employees looking to advance their careers. Students earn a two-year associate degree while working in their sponsors manufacturing facility as an Advanced Manufacturing Technician (AMT).

What FAME AMT offers: Blissett showed up eager and ready to learn, and hes thankful for all the support he received in the programfrom his employer, from his teammates and from his mentors. Beyond the network he built, program highlights included:

  • On-the-job training: FAME AMT blends classroom studies with work experience. For a hands-on learner like Blissett, the FAME AMT program was a more effective learning environment than school alone would have been.
  • A technical degree: The associate degree and FAME certificate that Blisset earned set him apart from other job applicants and accelerated his career path.
  • Professional competencies: Beyond the technical skills, FAME AMT also teaches students the soft skills they need for working in a professional environment the kinds of things you dont learn in college, Blissett said. Students dress professionally for class and give regular presentations at both work and school. They also get regular practice working in teams, learning how to work with all kinds of people in all kinds of different circumstances.

What now: Blissett accepted a full-time technician role at Nucor Tubular Products, a manufacturer of carbon steel piping and tubing in Louisville, Kentucky. As he says, his journey has just begunand hes excited to see where the knowledge and skills he has acquired will take him.

Advice for FAME students: The FAME program is what you make of it, Blissett says.

  • Be driven, show eagerness to learn, and do your work to the best of your abilities. If you do these three things you will receive endless support in your goals.
  • Be appreciative and show that you are hungry. Your mentors and professors are investing their time to mold you into the best possible student they can.

The last word: The opportunities presented to me during this program were once in a lifetime, said Blissett. I do not think I could have found a better fit for me.

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