Senior Editor
- FMA
- The Fabricator
- FABTECH
- Canadian Metalworking
Categories
- Additive Manufacturing
- Aluminum Welding
- Arc Welding
- Assembly and Joining
- Automation and Robotics
- Bending and Forming
- Consumables
- Cutting and Weld Prep
- Electric Vehicles
- En Español
- Finishing
- Hydroforming
- Laser Cutting
- Laser Welding
- Machining
- Manufacturing Software
- Materials Handling
- Metals/Materials
- Oxyfuel Cutting
- Plasma Cutting
- Power Tools
- Punching and Other Holemaking
- Roll Forming
- Safety
- Sawing
- Shearing
- Shop Management
- Testing and Measuring
- Tube and Pipe Fabrication
- Tube and Pipe Production
- Waterjet Cutting
Industry Directory
Webcasts
Podcasts
FAB 40
Advertise
Subscribe
Account Login
Search
Too lean to cut
- By Tim Heston
- March 9, 2009
From what shop owners tell me, the metal fabrication sector has had quite a ride during the past few months. It's hard to believe that in October at the FABTECH® International & AWS Welding Show, shop managers told me stories of strong business that, though not as good as in 2007, still had enough orders to keep machines humming on the floor. They told me largely the same story in November too.
Then December happened.
The powers that be in Washington are pushing for a global stimulus for a reason: There"s nowhere to hide. Mexican manufacturing is still contracting, as is China"s (though a stimulus bill there may be helping matters). The U.S. seems to be dragging the world down with itnot a good thing. This time it"s not about jobs going to Mexico, China, or other BRIC countries. It"s about demand just drying up completely, because credit-starved consumers simply can"t go to Home Depot and fill their shopping carts anymore.
But a front-page story in today"s Wall Street Journal gave credence to a hunch I had last year that this recession would be different. First a disclaimer: I was dead wrong on most counts; I misjudged the extent to which the credit crisis would snowball into a global economic downturn. (Though seeing how most of the talking heads on TV missed this one too, I don"t feel too bad.) But on one point I may have been nearer to the mark.
News of factory layoffs can skew the big-picture view. Sure, automotive is struggling like never before. But considering just how dramatically consumer demand has fallen puts those manufacturing job losses in another light. According to today"s Journal, by February14 months into the current downturnmanufacturing had cut 9.4 percent of its work force, slightly less than the 9.5 percent manufacturing had cut 14 months into the last downturn earlier this decade. The drop in production and orders, however, has been much worse this time around, the article said, indicating that companies have sought ways to cut back other than simply shedding workers. As of January, the latest figures available, U.S. manufacturers cut production 12.8 percent since the start of this recession, compared to just 2.6 percent at the same point after the last recession began.
That backs up many shop owners" experiences. Many have cut hours, but most can"t afford to let certain skilled workers walk out the door. The shop floor is lean, batch part flow has gone the way of the dodo, and each worker contributes more than ever to the bottom line. The Journal profiled a division of Parker Hannifin in Spartanburg, S.C., in which each plant employee represents around $200,000 in sales. Some of our readers quote even higher numbers for their workers.
Today manufacturers are idling at an economic red light, hoping they don"t run out of gas. But being so efficient, manufacturers get a lot of miles to the gallon, so they can run on fumes for a long time. With so few producing so much, U.S. manufacturing is poised to compete globally like never before once the economy rebounds.
subscribe now
The Fabricator is North America's leading magazine for the metal forming and fabricating industry. The magazine delivers the news, technical articles, and case histories that enable fabricators to do their jobs more efficiently. The Fabricator has served the industry since 1970.
start your free subscriptionAbout the Author
Tim Heston
2135 Point Blvd
Elgin, IL 60123
815-381-1314
Tim Heston, The Fabricator's senior editor, has covered the metal fabrication industry since 1998, starting his career at the American Welding Society's Welding Journal. Since then he has covered the full range of metal fabrication processes, from stamping, bending, and cutting to grinding and polishing. He joined The Fabricator's staff in October 2007.
- Stay connected from anywhere
Easily access valuable industry resources now with full access to the digital edition of The Fabricator.
Easily access valuable industry resources now with full access to the digital edition of The Welder.
Easily access valuable industry resources now with full access to the digital edition of The Tube and Pipe Journal.
Easily access valuable industry resources now with full access to the digital edition of The Fabricator en Español.
- Podcasting
- Podcast:
- The Fabricator Podcast
- Published:
- 04/16/2024
- Running Time:
- 63:29
In this episode of The Fabricator Podcast, Caleb Chamberlain, co-founder and CEO of OSH Cut, discusses his company’s...
- Trending Articles
Capturing, recording equipment inspection data for FMEA
Tips for creating sheet metal tubes with perforations
Are two heads better than one in fiber laser cutting?
Supporting the metal fabricating industry through FMA
Omco Solar opens second Alabama manufacturing facility
- Industry Events
16th Annual Safety Conference
- April 30 - May 1, 2024
- Elgin,
Pipe and Tube Conference
- May 21 - 22, 2024
- Omaha, NE
World-Class Roll Forming Workshop
- June 5 - 6, 2024
- Louisville, KY
Advanced Laser Application Workshop
- June 25 - 27, 2024
- Novi, MI