Where Are The Workers? Chapter One

Where Are The Workers?

By Rod Kackley

Chapter One

The collapse of manufacturing in the last decade of the twentieth century and the slow crawl back up in the twenty-first century have soured many of the Baby Boomers’ children on a career or even a just a job in a factory. 

However, as Richard Florida found out, manufacturing’s image problem goes much deeper than that. When Florida, the author of the Rise of the Creative Class books asked some of his students to choose between a career in a hair salon and a factory, they chose the hair salon. It is not that they were afraid of getting their hands dirty. They just wanted a career that offered them a greater opportunity to be creative.

There is also the problem of money. Manufacturing wages have plummeted. Unions agreed to drastic wage cuts to keep their rank-and-file employed. With the new two-tier wage structures in place at many of America’s largest manufacturers, many of the children of those who built America are not choosing a blue-collar lifestyle.

This talent shortage is a problem manufacturing is dealing with in the second decade of the twenty-first century.

Manufacturers were banking on a reinvention of the economic sector as the spring season of  2011 began. The nation’s economy was healing. Would the good times last? Could they be driven forward? The people running Michigan’s factories — surrounded by empty dinosaurs of the industrial past in Detroit, Flint and Saginaw —  were hoping the answer would be “yes” to both questions.

They are breathing easier as these words are being written in 2012. The manufacturing sector grew in 2011 and there was no reason to believe that 2012 would be any different, according to Plante Moran Managing Partner Rich Antonini, who concentrates his practice on that sector.

“They have seen nice growth, there is a good backlog (of orders), and demand is pent up,” he told me in January 2012. “I can’t imagine this not continuing.”

Antonini said that during the worst years following the nation’s economic collapse in 2008, most West Michigan manufacturing companies saw sales fall 40 percent. “They are working on taking care of that capacity,” he said. “We are not back to 2006-2008 levels. But they are working on it.”

Factories were able to get more productive and reduce payrolls because of technology investments. There is no doubt that reinvention and innovation are leading the push but there could be a problem over which manufacturers have little control and the worst-case scenario is it could cripple the revival.

 Now there is some fear that a lack of skilled workers will slow growth. “Part of the problem is the aging of the workforce,” he explained. “There hasn’t been a pipeline to replace workers who are retiring and that is starting to show.”

Where Are The Workers is part of the five-ebook series Restore The Roar: Manufacturing Renaissance available wherever ebooks are sold including Amazon.

Where Are the Workers is also available, for a limited time only, with a free download of Rod Kackley's new app through iTunes and Google Play.

Ford Reinforces Commitment to Electric Vehicles With Workplace Charging Network

• Ford launches new workplace charging network, allowing more employees to accomplish their daily commute entirely on electricity
• Ford customers now have logged 30 million all-electric miles in the company's full range of plug-in electric vehicles, saving more than 1.2 million kilograms of CO₂
• Ford delivered its best August U.S. electrified vehicle sales ever with 8,292 vehicles sold, up 288 percent over the same period a year ago. August marks the 11^th consecutive month Ford achieved electrified vehicle sales records

More Ford employees soon will be able to drive to work entirely on electricity, thanks to a new workplace charging network being installed at nearly every Ford facility in the U.S. and Canada.

Ford plans to install electric vehicle charging stations at more than 50 of its company offices, product development campuses and manufacturing facilities. Installation will begin later this year and roll out across company facilities throughout 2014.

"Ford's commitment to sustainability extends beyond our fuel-efficient vehicles to include our daily workplace," said Mike Tinskey, Ford global director of Vehicle Electrification and Infrastructure. "We know that a growing electrified vehicle infrastructure is key to making plug-in vehicles a viable option for more consumers. Ford is committed to doing our part to help grow that infrastructure."

Ford employees will be able to charge the all-electric Focus Electric, as well as Ford's two plug-in hybrids – the Fusion Energi and C-MAX Energi – at the charge stations. The service will initially be free to employees for the first four hours. Ford estimates it will cost the company about 50 cents to fully charge a vehicle, saving employees up to $2 in gasoline each day.

Ford's workplace EV chargers are different from competitor programs in that they will be networked together. As a result, the company will be able to gather additional information on electrified vehicle use, such as the number of hours vehicles are charging and the amount of CO₂  reduced.

Ford already has more than 1,700 charging stations at Ford dealerships and company facilities in North America. The new workplace chargers will add approximately 200 more.

Throughout the U.S. and Canada, the number of charge stations – both public and residential – is growing rapidly. In 2009, there were 3,000 known public charge stations. Today, there are more than 20,000.

30 million electric miles

Ford Fusion Energi and C-MAX Energi drivers typically make three of their four daily trips in all-electric mode, based on data from Ford's MyFord Mobile app. In fact, every 10 days, Ford customers drive approximately 1 million miles on electricity alone. In total, Ford customers now have logged 30 million all-electric miles driving the full range of plug-in vehicles, saving more than 1.2 million kilograms of CO_2.

Current customer data from the Fusion Energi and CMAX Energi is showing that three of every four trips are accomplished on electricity alone. By adding another charge during the day at the workplace, it is likely that employees will be able to accomplish all of their work week trips without using gasoline.

Electrified vehicle sales success

The popularity of Ford's electrified vehicles led to the company's best-ever retail U.S. sales results for Fusion Energi and C-MAX Energi plug-in hybrid vehicles in August. That contributed to Ford's best August electrified vehicle sales ever, with 8,292 vehicles sold, up 288 percent over the same period a year ago.

August also marked the 11^th consecutive month Ford achieved electrified vehicle sales records. Nearly two-thirds of new Ford electrified vehicle sales are coming from buyers trading in other car brands.

Did you ever think you'd see the Detroit Three doing this well? It wasn't long ago that we suffered through The Great Collapse. Now manufacturers are asking "Where Are The Workers?"

Check out the five-part ebook series by Rod Kackley, Restore The Roar: Manufacturing Renaissance beginning with The Great Collapse, available wherever ebooks are sold, including Amazon, Barnes & Noble, and iTunes

For more of Rod Kackley's work including Last Chance Mile: The Reinvention of an American Community, please go to www.rodkackley.com

General Motors Nearly Triples Size of Battery Laboratory

GM Battery Laboratory
(photo by John Martin for GM)

WARREN, Mich. – General Motors has nearly tripled the size of its Global Battery Systems Laboratory, cementing the lab’s stature as the largest battery lab in North America owned and operated by a major auto manufacturer.

The latest addition of 50,000 square feet brings to 85,000 the total square footage of the lab. The expansion made possible the increase in the number of pack-level test channels from 64 to 112 and cell-level test channels from 96 to120.  

“In the past four years, the competitive landscape in the electrification space has grown exponentially. This has required us to raise our game and draw a new line in the sand,” said Doug Parks, GM vice president, global product programs. “To maintain our battery leadership, this additional real estate is filled with new capability that will help us improve speed to market for our next generation of battery systems and help us improve the value equation to our customers around the world.”

GM Tech Center
Warren, Michigan

GM’s Global Battery Systems Lab has been responsible for testing and validating both battery cells and packs for all of GM’s vehicle electrification systems, including the battery systems for theChevrolet Volt, Cadillac ELR, Chevrolet Spark EV and GM’s eAssist light electrification system. 

The additional capabilities of the lab expansion include:

• dedicated equipment for future vehicle battery system development such as charger development and testing, cord set testing and competitive benchmarking;
• building prototype battery packs for vehicle development programs; and,
• the ability to act as the hub for validation and testing of all battery systems designed for use in future GM vehicles around the world.

The lab will also play a critical role in assuring GM’s current generation of electric vehicles maintain their battery leadership position. Teams will validate and test updates to existing chemistries and system designs to make the most of performance and reduce cost. For example, updates were made to the battery system in 2013 Chevrolet Volt that added three miles of EV range. 

“GM is committed to vehicle electrification and our products in this area must continue to excite customers. A critical part of this plan is to deliver safe, reliable and affordable energy storage systems,” said Larry Nitz, GM’s executive director of global electrification engineering. “The new capabilities of this lab will enhance our engineers’ ability to design, develop, process and validate class-leading products to meet the needs of our growing customer base."

In addition to the lab in Michigan, GM also operates battery labs in Shanghai, China, and Mainz-Kastel, Germany, which are tasked with testing and validation of battery cells, packs, and advanced battery system development. Teams at the China, Germany and Michigan labs work collectively to test battery systems around the clock to reduce validation time.

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Restore The Roar: Manufacturing Renaissance is a five-part ebook series that begins with The Great Collapse. Each short ebook is available for just 99 cents, by clicking here.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids created a new cluster of prosperity -- Medical Mile -- while the rest of Michigan was collapsing around them.

For a preview and to order your hardcover, softcover or ebook copy, please click here.

Restore The Roar: New Car Sales Should Be Up More Than 14 Percent

August 2013 New Car Sales Expected to Be Up 14.4 Percent According to TrueCar; August 2013 SAAR at 15.75M, Highest August SAAR since 2007

TrueCar.com, company that sources, compiles, and analyzes car-buying information, has released its August 2013 sales and incentives forecast. It shows a 14.4 percent increase in new car sales during the month of August.

• For August 2013, new light vehicle sales in the U.S. (including fleet) is expected to be 1,464,214 units, up 14.4 percent from August 2012 and up 11.8% percent from July 2013 (on an unadjusted basis).
• The August 2013 forecast translates into a Seasonally Adjusted Annualized Rate ("SAAR") of 15.75 million new car sales, down less than one percent from July 2013 and up nine percent overAugust 2012.
• Retail sales are up 10.5 percent compared to August 2012 and up 11.7 percent from July 2013.
• Fleet and rental sales are expected to make up 15.0 percent of total industry sales in August 2013.
• The industry average incentive spending per unit will be approximately $2,477 in August 2013, which represents an increase of 0.4 percent from August 2012 and is down 2.6 percent from July 2013. Incentives are at their lowest percentage since January of this year.
• Used car sales* are estimated to be 3,451,179.  The ratio of new to used is estimated to be 1: 3 for August 2013.

Individual Manufacturer highlights:

• General Motors is enjoying its highest sales since Sept. 2008
• Honda's sales are its highest since August 2009
• Chrysler enjoyed its second highest sales month this year

"New vehicle sales defied their typical strong correlation with Wall Street in August and continued to post a healthy increase despite the lackluster performance in financial markets," said Jesse Toprak, senior analyst for TrueCar.com. "Small SUVs became the fastest growing segment this month, with this very functional and affordable vehicle category now making up 15.5% of all sales, up from 13.5% from a year ago."

Forecasts for the top eight manufacturers for August 2013:

Unit Sales
Manufacturer	August 2013 Forecast	% Change vs. July 2013	% Change vs. Aug. 2012
Chrysler	169,269	22.0%	14.5%
Ford	217,173	15.1%	12.6%
GM	265,369	13.4%	10.3%
Honda	156,371	10.6%	19.1%
Hyundai/Kia	121,462	5.6%	9.3%
Nissan	118,247	8.4%	20.0%
Toyota	215,413	11.4%	14.3%
Volkswagen Group	59,710	13.4%	7.5%
Industry	1,464,214	11.8%	14.4%

Market Share
Manufacturer	August 2013 Forecast	Jul-13	Aug-12
Chrysler	11.6%	10.6%	11.5%
Ford	14.8%	14.4%	15.1%
GM	18.1%	17.9%	18.8%
Honda	10.7%	10.8%	10.3%
Hyundai/Kia	8.3%	8.8%	8.7%
Nissan	8.1%	8.3%	7.7%
Toyota	14.7%	14.8%	14.7%
Volkswagen Group	4.1%	4.0%	4.3%

Incentive Spending
Manufacturer	August 2013 Incentives	% Changevs. July 2013	% Changevs. August 2012	Total Spending
Chrysler	$ 2,987	-0.7%	-8.8%	$  505,588,038
Ford	$ 2,949	-1.2%	12.1%	$  640,336,893
GM	$ 3,469	-3.4%	12.1%	$  920,612,117
Honda	$ 1,498	-15.2%	-38.1%	$  234,287,982
Hyundai/Kia	$ 1,584	-2.2%	33.4%	$  192,433,604
Nissan	$ 2,301	-10.1%	-16.7%	$  272,083,915
Toyota	$ 1,863	4.6%	-0.5%	$  401,334,151
Volkswagen Group	$ 2,461	-3.3%	17.4%	$  146,955,118
Industry	$ 2,477	-2.6%	0.4%	$ 3,622,340,527

"Despite the push to sell down older models, incentive spending has declined for its second consecutive month," said Kristen Andersson, analyst at TrueCar.com. "Chrysler hit its lowest level of incentive spending since May 2011 while also seeing double digit sales increases, as their strong product lineup continues to resonate with buyers. Honda has also slashed its incentive spending, which is down almost 40 percent from last year." 

TrueCar.com bases its forecast on actual transaction data. The transaction data based forecast is refined by other current and historical factors that impact vehicle sales, including  sales, inventory, incentives, fuel prices, and macro economic data (major stock market indexes, consumer confidence, new home starts and CPI).  TrueCar.com does not adjust for selling days in year-over-year percentage change calculations.

*Used car sales figures include sales from franchise dealerships, independent dealerships and private party sales

Restore The Roar: Manufacturing Renaissance, a five-part ebook essay series tells the story of the collapse and rise of Michigan manufacturing. For a preview, please click here.

Restore The Roar: Nissan Soars In The Americas

Nissan To Boost Americas Production Capacity To More Than 2 Million Units In 2014

Production increases, new plants driving growth

IRVINE, Calif., Aug. 26, 2013 /PRNewswire/ -- By early 2014, Nissan's production capacity will eclipse two million units in the Americas, driven by recently added capacity at its U.S. plants, as well as new facilities in Mexico and Brazil.

Site of new Nissan campus in Brazil

In response to strong growth opportunities throughout the region and in an effort to isolate the company from volatility in global currencies, Nissan is rapidly expanding its manufacturing footprint in the Americas region with an investment of more than $5 billion USD in new plants and increased production volumes. To support this aggressive growth and expansion, the company is adding more than 10,000 jobs across the region, with much of the hiring complete or underway.

Nissan has been the market share leader in Mexico for 50 consecutive months and will be further bolstered there by an all-new $2 billion USD manufacturing complex, supplier park and quality proving ground in Aguascalientes, which is nearing construction completion. During the initial phase of its development, the new complex will support production of up to 175,000 units annually of Nissan's 'B' platform products and complement Nissan's two existing Mexican manufacturing facilities in Aguascalientes and Cuernavaca.

Construction is also in progress for an all-new $1.5 billion USD manufacturing complex in Resende, Brazil, which will have annual capacity for 200,000 'V' Platform vehicles with production slated for the first half of 2014. The first plant of its kind for Nissan in South America will provide much-needed production volume to support Nissan's goal for market share growth in Brazil. In 2012, Nissan was the top-growing automaker in Brazil for the third consecutive year.

In addition, production of 4-cylinder gasoline engines for Infiniti and Mercedes-Benz models will begin in early 2014 at an all-new Renault-Nissan Alliance powertrain plant in Decherd, Tenn. The project is a joint venture with Daimler, with an installed capacity of 250,000 units per year.

Americas Region Production Capacities

Canton, Miss. Vehicle Assembly Plant - 450,000
Smyrna, Tenn. Vehicle Assembly Plant - 550,000
Aguascalientes, Mexico Vehicle Assembly Plant - 380,000
Aguascalientes II, Mexico Vehicle Assembly Plant (2013) - 175,000
Cuernavaca, Mexico Vehicle Assembly Plant - 316,000
Resende, Brazil Vehicle Assembly Plant (2014) - 200,000
Curitiba, Brazil Vehicle Assembly* - 32,000

*Production at Renault facility. Capacity figure is based on actual CY2012 production.

Restore The Roar: Manufacturing Renaissance is a five-part ebook essay series that begins with The Great Collapse, the fall and rise of Michigan manufacturing. A free preview is available by clicking here.

Last Chance Mile: The Reinvention of an American Community tells the story of how Grand Rapids reinvented itself while the rest of Michigan was crashing around it. A free preview is available by clicking here.