GF AgieCharmilles

A Career in Toolmaking or Machining Technologies: The Right Choice for Students, Community & Country

Harry C. MoserPresidentJune 2007

2GF AgieCharmilles

A Career In Toolmaking or Machining Technologies: The Right Choice for Students, Community and Country

For more information on promoting careers in manufacturing

or on EDM’s for schools and colleges, contact:

Agie Charmilles

560 Bond Street

Lincolnshire, IL 60069-4224

FAX: 847/913-5342

PHONE: 847/913-5300

LuAnn Twite, Schools & Centers Coordinator, 847/955-7170

Harry C. Moser, President, 847/955-7102

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Telecommunications

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Aerospace

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Electronics

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Automation

16

BRENNER TOOL, PA•(2) Roboform 55’s and Workmaster Robot

•Product 13,000 General Electric Parts in 12 Months

•Machining Time Per Part: 60 Min.

•(3) Racks for Pieces, (1) Rotary Magazine for Electrodes

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TNT EDM, INC.PLYMOUTH, MI(734) 459-1700

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In the Village Manufacturing was a Part of Daily Life

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Today, Products Appear from “Invisible” Factories, Local & Abroad

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Services are Highly Visible in Daily Life & the Media

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Importance to the Country

•Manufacturing Supplies 47% of non-farm employment

- 16% Direct Manufacturing Jobs

- 31% Secondary Jobs Generated by Manufacturing

•A Manufacturing Job creates three to five times

more Secondary Jobs than does a Service Job.

•World Class Production Requires and Follows

World Class Tooling.

Source: Employment Multipliers in the U.S.

Economy by Dean Baker and Thea Lee (Working Paper

No. 107, March, 1993. Economic Policy Institute with

Support from Crafted with Pride in the U.S.A. Council, Inc.)

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Quote - Peter Drucker, Business Guru

“THE ONLY COMPARATIVE

ADVANTAGE OF THE DEVELOPED COUNTRIES

IS IN THE SUPPLY OF KNOWLEDGE WORKERS”

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Technology Requires Skill

REQUIREMENTS FOR BEING WORLD COMPETITIVE:- QUALITY- COST- DELIVERY

NECESSARY CONDITIONS: PROBLEMS:

- VERY SHORT SUPPLY

- 40% OF COMPANIES CANNOT MODERNIZE EQUIPMENTBECAUSE WORKERS LACK THESKILLS

- SKILLED LABOR

- TECHNOLOGY INVESTMENT

- INEFFECTIVE SKILLS AMONG EMPLOYEES HAVE PREVENTED ONE IN FIVE

MANUFACTURERS FROM EXPANDING.*

CONCLUSION: A COMPETITIVE U.S. ECONOMY REQUIRES

MORE SKILLED MANUFACTURING TRADESPEOPLE.

CONCLUSION: A COMPETITIVE U.S. ECONOMY REQUIRES

MORE SKILLED MANUFACTURING TRADESPEOPLE.

SOURCE: Competitiveness Policy Council*SOURCE: National Association of Manufacturers

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Manufacturing Skills Shortages are Impacting Business!

Figure 1: To Which Extent Does the Shortage of Available Skills Figure 1: To Which Extent Does the Shortage of Available Skills Impact Your Company’s Ability Impact Your Company’s Ability to Serve Customers (1=no impact; 5=greatest negative impact)to Serve Customers (1=no impact; 5=greatest negative impact)

0% 5% 10% 15% 20% 25% 30% 35%

#5 #4 #3 #2 #1

Greatest Negative Impact

No Impact

Source: NAM 2005 Skills Gap

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Biggest Shortages: Skilled Production

What Types of Employees are Expected to Be in Short Supply Over What Types of Employees are Expected to Be in Short Supply Over the Next Three Years? (Select All that Apply)the Next Three Years? (Select All that Apply)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Skilled ProductionScientists and EngineersUnskilled ProductionSales and MarketingManagement and AdministrationCustomer ServiceOthersNone

Source: NAM 2005 Skills Gap

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Community Colleges Offer a Good Solution

How Prepared for a Typical Entry Level Job in Your Company Are AHow Prepared for a Typical Entry Level Job in Your Company Are Applicants with a Certificate from a 2pplicants with a Certificate from a 2--Year College?Year College?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Poorly Prepared

Adequately Prepared

Source: NAM 2005 Skills Gap

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Should We Train Service Providers or Toolmakers?

Trainee WorkImportable/Exportable?

Impact onEmployment

Beautician orCarpenter

No U.S. Jack vs.U.S. Jill

Toolmaker Yes U.S. vs. Hong Kong

CONCLUSION: Our training resources should be directed to the kinds of work that are both highly paid and subject to import competition.

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Is IT A Better Career Choice?

2002 IT COMPENSATION:

AT 5-YEAR LOW

-11% FROM 2001

IT UNEMPLOYMENT: 6%

SOURCE: SURVEY BY INFORMATIONWEEK MAGAZINE PUBLISHED IN CHICAGO HERALD TRIBUNE,

MAY 2002

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Manufacturing is Less Vulnerable than Software or Services!

MOLDS SOFTWARE & SERVICES

U.S. CHINA U.S. INDIA

DIRECT LABOR $ 40 $ 4 $ 70 $ 7

MATERIAL $ 20 $14 --- ---

OVERHEAD $ 30 $15 $ 20 $10

TOTAL $ 90 $33 $ 90 $17

PROFIT $ 10 $ 7 $ 10 $ 5

SELL $100 $40 $100 $32

DUTY, FREIGHT, ETC.--- $ 7 --- ---

LANDED COST $47 $32

REWORK $10 ---

TOTAL COST TO CUSTOMER $100 $57 $100 $32

Source: Mold cost structure from limited survey of U.S. Mold Shops

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Importance to the Community

•Clean

•High Income

•Stable Jobs55 Hrs/Week in Boom Times40 Hrs/Week in Recessions

•Small-Medium SizePrivately & Locally owned, stable Companies dependent on Local, SkilledLabor

•Local Youth Stay in the Community

•Spin-off Companies, e.g., from Talon Industries, have made Meadville, PA a center for Toolmaking

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Pennsylvania Case Study: 1995

COMPANY: ELECTRONICS CONNECTOR MANUFACTURERLOCATION: RURAL PAPROJECT: NEW PLANT

# TOOLMAKERS, SHORTFALL: 26

IMPACT OF SHORTFALLON COUNTY: -$20 MM/YEAR ($769,000/YEAR/TOOLMAKER)

SOURCE: “COMMUNITY COSTS OF TECHNICAL SKILLS DEFICITS…”JAMES WALL ET AL, PENN STATE

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76,000 Job Openings

-OPENINGS, % OF WORKFORCE 10.1%*-AVERAGE STARTING WAGE $16.82/HOUR-AVERAGE ANNUAL INCOME(to start, including Overtime) $42,000/year

U.S. PROJECTION:

-JOBS, ALL MACHINISTS 76,000

-TOTAL SALES $10 BILLION/YR

-IMPACT ON GDP @2.4 MULTIPLIER $24 BILLION/YR

-IMPACT ON U.S. BUDGET DEFICIT $6 BILLION/YR

SOURCE: NTMA/CHARMILLES MARCH 2006 SURVEY OF NTMA MEMBER SHOPS: 167 RESPONSES = 10%

*VS. 2.5% IN THE ENTIRE US WORKFORCE, ALL JOB CATEGORIES

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Importance to the Individual

•Occupational Income: High ($40,000 -$60,000/yr)

•Job Security: High

•Mobility: Jobs Everywhere

•Entrepreneurial Opportunities: Excellent

•Computer Content: High

•Job Satisfaction: High

•Relation of Job to Education: High

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Attitudes/Expectations of College Freshmen

WORK RELATED LIFE GOALS RATEDVERY IMPORTANT OR ESSENTIAL

Men Women

Be very well-off financially 77.2%* 71.9%*

Become an authority in my field 62.5% 60.0%

Obtain recognition from colleagues 53.0% 53.0%

Be successful in my own business 45.0%* 35.3%*

Have administrative responsibility 39.8% 35.6%

Make a theoretical contribution

to science 21.5% 16.0%

Write original works 14.4% 13.9%

Create artistic work 12.9% 15.9%

*items to promote

Conclusion: Tooling and machining fit well with U.S. Youths’ expectations.

Source: “The American Freshman: National Norms for Fall 2000.”Higher Education Research Association, UCLA

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Overtime: Toolmakers & Other Professions

EMPLOYEE GROUP AVERAGE WEEKLYWORK HOURS

Toolmakers 45-55 HoursMedical Residents, InvestmentBankers, Corporate Lawyers andother Professionals 70-80 Hours

All Full Time Workers: 50.8 Hours

CONCLUSION: TOOLMAKERS WORK ABOUT AS MUCHOVERTIME AS OTHERS WITH HIGH INCOMES.

SOURCES: TMA, Labor Market Information 1995; Bureau of Labor Statistics, 1997

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Work & Play Hard!

A TOOL & DIE MAKER WORKS HARD BUT CAN LEAVE WORK BEHIND. IN CONTRAST FOR BUSINESS EXECUTIVES ON VACATION:

26% CHECK OFFICE DAILY, 63% WEEKLY18% TAKE WORK ALONG36% DO WORK ON VACATION

SOURCE: AMERICAN MANAGEMENT ASSOCIATION, SURVEY OF 645 EXECUTIVES, 6/10/02

GLOBE & MAIL

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Opportunities Versus Expectations

Aspirations Job Market

1976 1988 1987

Labor/Semi-Skilled

Service/Protective/Military

Sales Clerk/RepresentativeCrafts/Skilled Labor

ProfessionalOwner/Manager

Office Clerical

Pick a Career In Which You Are Likely to Find a Job!

Source: University of Michigan Survey of High School Seniors. October 1990/ Illinois Issues.(Latest available data, 9/1/01.)

3%

16%8%

12%13%19%

15%

1% 17%

12%

4%6%

45%19%51%

9%10%

12%

10%14%4%

CONCLUSION: SKILLED LABOR, E.G. TOOLMAKING, IS THE ONLY CATEGORY THAT BOTH:PAYS WELL AND HAS FEWER JOB SEEKERS THAN JOBS

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National College MyopiaNational College Myopia“[We] have to create an America in which every 8-year-old can logonto the Internet, every 18-year-old can go on to college, and everyadult can keep on learning for a lifetime.”President Bill Clinton, Speaking before the American Council on Education, Feb. 24, 1998

“[We] are establishing a system in which every American who is willing to study hard will be able to go on to college and to thrive inour new economy.”President Bill Clinton, Speaking to the National Urban League, Aug. 4, 1997

“[We] have opened the doors to college wide to those willing and able to work for it. Nowwe have to make sure that all our students… have a guardian angel helping to guide themto those doors.”President Bill Clinton, Announcing the High Hopes for College Initiative, Feb. 4, 1997

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Median Annual Salary of Bachelor’s Graduatesby Field of Major and Age, 1993

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

<30 30-34 35-39 40-44 45-49 50-54

TOOL & DIE Mathematics Accounting Physical SciencesBusiness Life Sciences Psychology EnglishTeaching Art (dramatic, fine) Engineering

Source: 1993 National Survey of College Graduates, NSF/SRS, NTMA, PMA/TMA.(Data will next be released in 2003-2004)

TOOL & DIE

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Percent of Bachelor’s Degree Holders, 1992

AGE 20-24 25-29 30-39 40-49 50-59 60-64 65/OVER

UNEMPLOYED 7% 4% 4% 3% 4% 3% 2%

NON COLLEGE 36% 24% 22% 20% 19% 21% 25%LEVEL JOB

EARNING LESSTHAN MEDIANFOR H.S. GRADS($21,241) 53% 27% 16% 16% 18% 20% 40%

CONCLUSION: MANY COLLEGE DEGREE HOLDERS ARE: UNEMPLOYED, UNDEREMPLOYED OR LOW PAID.

SOURCE: U.S. DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS

(LATEST AVAILABLE DATA, 9/1/01.)

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Projected Average Annual Job Openings 1990-2005

SOURCE: DATA COMPILED FROM “JOB-RELATED EDUCATION AND TRAINING: THEIR IMPACT ON EARNINGS,” BY A. ECK, 1993, MONTHLY LABOR REVIEW, WASHINGTON, DC: U.S. DEPT. OF LABOR, “OTHER WAYS TO WIN, CREATING ALTERNATIVES FOR HIGH SCHOOL GRADUATES,” BY KENNETH C. GRAY AND EDWIN L. HERR.

CONCLUSION: PRECISION MACHINING IS ONE OF THE FEW CAREERS WITH BOTH A HIGH RATIO OF DEMAND TO SUPPLY AND A HIGH INCOME.

SOURCE: DATA COMPILED FROM “JOB-RELATED EDUCATION AND TRAINING: THEIR IMPACT ON EARNINGS,” BY A. ECK, 1993, MONTHLY LABOR REVIEW, WASHINGTON, DC: U.S. DEPT. OF LABOR, “OTHER WAYS TO WIN, CREATING ALTERNATIVES FOR HIGH SCHOOL GRADUATES,” BY KENNETH C. GRAY AND EDWIN L. HERR.

CONCLUSION: PRECISION MACHINING IS ONE OF THE FEW CAREERS WITH BOTH A HIGH RATIO OF DEMAND TO SUPPLY AND A HIGH INCOME.

OPENINGS

NUMBER OF CREDENTIALS

AWARDED NET

OPENINGS

OPENINGS PER CREDENTIALS

AWARDED Professional Managerial - Executive, Administration - Construction Managers - Marketing, Advertising, and Public Relations

Managers

436,000 7,000

23,000

506,830 825

66,416

-70,830 +6,175

-43,416

0.86 8.48

0.35

Professional Specialty - Physical Scientists - Lawyers

623,000 8,000 28,006

1,120,063 35,163 44,314

-497,063 -27,163 -16,308

0.56 0.23 0.63

Technical - Technicians - Health - Engineering

183,000 79,000 52,000

212,767 71,804 85,611

-29,767 +7,196 -33,611

0.86 1.10 0.61

Blue-Collar Technical - Craft, Precision Metal, and Specialized

Repair - Mechanics, Installers, Repairers

455,000 160,000

133,057 91,758

+321,943 +68,242

3.42 1.74

Service Occupation

882,000 237,062 +644,938 3.72

Operators, Laborers

477,000 41,504 +435,496 11.49

Farming, Forestry, Fishing

90,000 14,547 +75,453 6.19

33GF AgieCharmilles

Supply and Demand Imbalance

3 /15 /98C h icag o T rib u n eH elp W an ted A d s

M o ld m akers 36A rtis ts 5P s ych o lo g is t 1M u s ic ian s 0H is to rian s 0P h ilo so p h ers 0

ANNUAL MOLDMAKER GRADUATES: 100’SANNUAL LIBERAL ARTS GRADUATES: A MILLION???

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Develop A Tangible/Valuable Skill

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College Graduate Janitor

87,000 college graduates, including 7,000 with Master’s Degrees, are employed in the nation’s mailrooms and another97,000 college graduates are janitors or cleaners.

SOURCE: 1995 U.S. Census

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B.A. Often Leads to Paper Pusher Job!

% IN ADMINISTRATIVE ANDCLERICAL SUPPORT JOBS

DEGREE 4 YEARS AFTER GRADUATIONENGINEERING 3%

HEALTH PROFESSIONS 4%

EDUCATION 8%

HISTORY 11%

MATH & PHYSICAL SCIENCE 12%

PSYCHOLOGY 15%

PUBLIC AFFAIRS 18%

HUMANITIES 19%

BUSINESS MANAGEMENT 19%

SOCIAL SCIENCE 19%SOURCE: BLS/U.S. DEPARTMENT OF EDUCATION’S NATIONAL CENTER FOR EDUCATION STATISTICS: CLASS OF 1993 STUDY

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Most College Graduates Have Big Debts!

% OF RECENT

COLLEGE GRADUATES

STUDENT LOANS: $10,000 TO $40,000 52%

CREDIT CARD BALANCES 83%

38GF AgieCharmilles

College Degrees Do Not Buy Happiness

FACTORS PREDICTING HAPPINESS:

-HEALTH

-INCOME

-CHURCH ATTENDANCE

-BEING MARRIED

-BEING A REPUBLICAN

FACTORS WITH NO INFLUENCE ON HAPPINESS:

-EDUCATION

-GENDER

-RACE

-HAVING A PET

Source: Pew Research Center, Social Trends, Are We Happy Yet? 2/13/06, Poll of 3,014 American

conducted 10/5-11/6/06

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Don’t Fall Into the Liberal-Arts Deadend!

% OF GRADUATES FINDING EMPLOYMENT IN LINE WITH THEIR ACADEMIC EXPERIENCE:

DEGREE FIELD %

-ARTS & HUMANITIES 33%

-ALL 50%

CONCLUSION: CHOOSE A FIELD THAT YOU CAN APPLY!

SOURCE: PROFESSOR KENNETH GRAY, PENN STATE UNIVERSITY, 9/26/01

40GF AgieCharmilles

Occupation More Important Than Degree Level

“80% OF ASSOCIATES DEGREE HOLDERS EARN

MORE THAN THE BACHELOR’S MEDIAN INCOME.”

“OCCUPATION, NOT DEGREE LEVEL, DETERMINES

SALARY.”

SOURCE: AP CARNEVALE (2000) (ED439743)

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ROI on Skilled Workforce Training

PERSPECTIVE

MFG. TECH, ASSOCIATES

DEGREETOOL&DIE

APPRENTICE

ENGLISH, BACHELOR’S

DEGREE

WORKER 39% 125% 6%

UNITED STATES 163% 233% 30%

Modern Machine Shop, May 2005

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1999-2000 Job Opportunities vs. Graduates

ACR - AUTOMOTIVE COLLISION REPAIR

IE - INDUSTRIAL ELECTRICITY/ELECTRONICS

AT - ARCHITECTURAL TECHNOLOGY

CST - CONTROL SYSTEMS TECHNOLOGY

AM - AUTOMOTIVE MAINTENANCE

PMT -PRECISION MACHINING TECHNOLOGY

EET - ELECTRONICS ENGINEERING

PL - PLUMBING

CP - CARPENTRY/BLDG CONSTRUCTION

RAH - REFRIGERATION, AC, HEATING

CNT - COMPUTER NETWORKING

IMT - INDUSTRIAL MAINTENANCE

College’s Ten Year Placement Rate is 98%

(period covered for chart: 99/00 school year from June 1, 1999 through May 31, 2000)

0

100

200

300

400

500

600

ACR AT AM EET CP CNT

RequestsGraduates

PMTPMT

SOURCE: Ranken Technical College, St. Louis, MO.

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TMA Related Theory Graduation Rate

0 10 20 30 40 50 60 70

All Illinois PublicUniversities

TMA RelatedTheory

Compared to Illinois Public Universities.

Source: Board of Higher Education Fall Enrollment Surveys and Public Universities Records for the class of 1987 through 1992 ,TMA Related Theory Records, 2001.

CONCLUSION: Graduation rate is better and students graduate sooner if work-related.CONCLUSION: Graduation rate is better and students graduate sooner if work-related.

3 years

6 years5 years4 years

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High School Graduation Rates

THE LOWEST RISK OF DROPPING OUT OF HIGH SCHOOL IS FOR STUDENTS WITH:

3 CAREER & TECHNICAL EDUCATION UNITS PER 4 ACADEMIC UNITS

CONCLUSION: TAKING SOME HIGH SCHOOL CAREER AND TECH COURSES ENHANCES EDUCATIONAL CONTINUITY.

Source: The CTE/Academic Balance and Three Secondary Outcomes in

Brief: Fast Facts for Policy & Practice No. 18 by Michael Wonacott (2002) (http://nccte.org/publications/infosynthesis/in-brief/in-brief18/indix.asp.)

45GF AgieCharmilles

Contextual Learning

60% of students learn best in context

Schools should offer:

Career focus for all students (reason to remain in school and continue education)Contextual teaching strategy (enables students to master high levels of academics)Real world, open ended problems

SOURCE: Education and Career Preparation for the New Millennium 10/2000. Daniel Hull, CEO, Cord.

Www.cord.org/news.cfm?headline=12

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Income, Workers Age 20-34in March of 1996

Full Year, Full Time, Total 1995 EarningsLess than $30,000 $30,000 or More

Number Number %Non-High School Graduate 271,847 41,268 13.2%High School Graduate 1,358,704 397,462 22.6%Some College, No Degree 774,103 290,643 27.3%Precision Production, Craft& Repair

356,233 284,545 44.4%

Source: Data March 1996 Current Population Survey, Census Bureau, Great

Lakes States, only. (Latest available data, 9/1/01.)

Analysis: Don Grimes, University of Michigan, for Michigan Future, Inc.

Conclusion: College drop-outs are not much better off than High School graduates. Precision Machinists are much better off than either.

47GF AgieCharmilles

Annual Income/Age

-5000

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

18 19 20 21 22 23 24 25 26 27 28 29

Tool & Die MakerEnglish Major

48GF AgieCharmilles

Tool & Die or English Major? A Million $ Decision

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54Assumptions:1. Zero wage inflation2. Savings = 50% of difference in income3. Investment return of 7% per year on savings

AGE

TOO

L &

DIE

CU

MU

LATI

VE

WE

ALT

H A

DV

AN

TAG

E

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Public’s View of College vs. Training

Is a college education necessary to get ahead in life?

Most important benefit of attending college:

If your child could get a well-paying job without going to college, is it still important to attend college?

Source: CBS News Poll, August 17-19, 1997

CONCLUSION: We must make our apprenticeship programs 1 step in a process that leads to a degree and promote the credibility of this process.

CONCLUSION: We must make our apprenticeship programs 1 step in a process that leads to a degree and promote the credibility of this process.

AUGUST1997 1998

YES 75% 49%NO 23% 47%

AUGUST1997 1998

Well-roundededucation

51% 30%

Well-paying job 40% 59%

AUGUST1997 1998

YES 51% 53%NO 45% 46%

50GF AgieCharmilles

Manufacturing: A Practical Step Towards a Degree

Bachelor of ScienceBachelor of Science

Associate ofScience Degree

Associate ofScience Degree

Associate Degree ofApplied Science

Degree

Associate Degree ofApplied Science

Degree

Apprenticeship

Work Place

Apprenticeship

Work PlaceHigh SchoolHigh School

Flow Chart of Articulated Credit

Source: An Employee/Student Centered Approach to Partnerships, ME Meyer & D. Slawinski, 2003 CIEC Conference

51GF AgieCharmilles

Choice

NOT:

•Tool and Die and no Degree

vs.

•4 Year Degree

BUT:•Tool and Die as a great career and

a practical basis for a 2 or 4 year degree

vs.

•No trade and no college, or•College drop-out, or

•College graduate with dead-end job

52GF AgieCharmilles

Chinese Proverb

“I HEAR AND I FORGET.

I SEE AND I REMEMBER.

I DO AND I UNDERSTAND.”

COMMENT: Toolmaking provides an ideal combination of theoretical and hands-on learning.

SOURCE: Chinese Proverb.

53GF AgieCharmilles

Related Careers

• Teach EDM

• Sell Mold Supplies• Sell Molding Machines• Market Machines, Molds, Etc.

• Applications Engineering• Sell EDM Machines

• Sell EDM Supplies

• Design Molds

54GF AgieCharmilles

Key Questions

IS TOOLMAKING A BETTER CHOICE THAN A LIKELY M.D. FROM HARVARD OR STATE UNIVERSITY?

NO

IS TOOLMAKING, LINKED TO A TECHNICAL DEGREE, MUCH BETTER THAN A PROBABLE COLLEGE DROP-OUT OR A

MARGINAL LIBERAL ARTS COLLEGE GRADUATE?

YES

YES, FOR THE INDIVIDUAL:

- INCOME

- JOB SECURITY

- CAREER

YES, FOR THE COMMUNITY AND COUNTRY:

STABILITY

COMPETITIVENESS

55GF AgieCharmilles

Misallocation of Subsidies

CURRENT OPENINGS

# GRADUATED/

YEAR

DROP OUT

RATE

% UTILIZING

TRAINING

AVERAGE INCOME

GOVERNMENT

SUBSIDY PRECISION TOOLMAKER

30,000

3,000

25%

MOST

$53,000

0

HISTORY MAJOR

0

22,000

40%

FEW

$40,000

$40,000

GOVERNMENT SUBSIDIES OF:- EXCESS COLLEGE DEGREES APPROX: $5 BILLION/YEAR- COLLEGE DROPOUTS APPROX: $6 BILLION/YEAR

TAX COST OF BILL IF # OF TRAINEES DOUBLES:(IGNORING LATER HIGHER INCOME TAXES) $45 MILLION/YEAR

56GF AgieCharmilles

Who is NIMS?

The National Institute for Metalworking Skills, Inc. is a nonprofit organization formed to support the development of a skilled workforce for the metal-working industry.

Steve MandesExecutive DirectorNational Institute for Metalworking Skills3251 Old Lee Highway, Suite 205Fairfax, VA 22030(703) 352-4971-Telephone(703) 352-4991-FaxE-Mail: smandes@nims-skills.org

57GF AgieCharmilles

Who is NIMS?

NIMS primary activities include:

developing, writing, validating, and maintaining skill standardsfor each industry; certifying the skills of individuals against the skill standards; accrediting training programs that train to the skill standards and meet NIMS quality requirements;assisting states, schools, and companies to form partnerships to implement the skill standards, achieve program accreditation, and certify the skills of trainees and workers.

58GF AgieCharmilles

NIMS Credentials

Level I Machining Skills

Level IIDie Making Skills for

Die Casting Operations

Level IIMold Making

Skills

Level IIDie Making

Skills

Level IIIDie Making

Skills

Level IIIMold Making

Skills

Level IIIDie Making Skills for

Die Casting Operations

59GF AgieCharmilles

Credentialing History

32 223 794 14123509

47776537

8538

10953

13383

2349

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Tot

al C

rede

ntia

ls

60GF AgieCharmilles

NIMS Wall of Fame

Carbon Career & Technical Institute, Jim Thorpe, PA

61GF AgieCharmilles

Articulation: Manufacturing/As Degrees

48 CREDIT HOURS FOR NIMS CERTIFICATES

18 CREDIT HOURS EARNED ON LINE

66 CREDIT HOURS = ASSOCIATES DEGREE

Source: Marshall Community & Technical College, Huntington, WV

62GF AgieCharmilles

Background Vs. How Obtained Ownership

BACKGROUND FOUNDED PURCHASED INHERITED UNSPECIFIED TOTAL OWNERS

APPRENTICE GRADUATE 50% 35% 10% 40% 35%

MACHINING TRAINING BUT NOT APPRENTICE 24% 20% 39% 20% 28%

MANUFACTURING MANAGEMENT 11% 12% 11% 20% 11%

BUSINESS MANAGEMENTBUT NOT MANUFACTURING 4% 24% 19% 20% 12%

OTHER 11% 8% 21% 13%

TOTALS 100% 99% 100% 100% 99%

% of Total 50% 19% 24% 6% 99%

CONCLUSION: APPRENTICES & MACHINISTS FOUND COMPANIES

SOURCE: NTMA/CHARMILLES OWNER/MANAGER SURVEY. SURVEY DATE: 2001

63GF AgieCharmilles

Median Company Sales vs. Age First Owned and How First Obtained Ownership (Sales in $ Millions)

AGE FOUNDED PURCHASED INHERITEDOWNED # SALES # SALES # SALES

10-20 0 $0 0 $0 1 $15.0

21-30 29 $2.3 0 $0 11 $ 3.0

31-40 41 $1.3 13 $3.0 22 $ 3.5

41-50 8 $2.0 11 $3.0 4 $ 2.6

51-60 2 $.03 7 $3.6 0 $0

Over 61 0 $0 0 $0 0 $0

CONCLUSION: APPRENTICE AND MACHINISTS ARE YOUNG ENTREPRENEURS.

SOURCE: NTMA/CHARMILLES OWNER/MANAGER SURVEY. SURVEY DATE 2001

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Background vs. Degree Years

DEGREE APPRENTICE MACHININGYEARS # % # %

0 73 80 37 52

2 10 11 13 18

4 6 7 16 23

6 2 2 5 7

TOTALS 91 100 71 100

CONCLUSION: APPRENTICES & MACHINISTS GET DEGREES

SOURCE: NTMA/CHARMILLES OWNER/MANAGER SURVEY. SURVEY DATE 2001

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A Recruiting Best Practice!

Who: NWPA NTMA Chapter

Where: Meadville, PA

What: -Weekly career story in local paper-Paper sells ads around the story

-Employer and employee get recognition

Result: Attracts recruits. Tech Tool hired 9.

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Industry & Community College Recruiting Together

IDEA: JOINT HELP WANTED ADS IN THE

LOCAL PAPER

-1 AD

-1 OR MORE COMPANIES:

-PRAISE THE COLLEGE

-LIST CURRENT JOB OPENINGS

(“THE OPPORTUNITIES”)

-COLLEGE:

-DESCRIBES ITS PROGRAM

THAT FIT THE JOB OPENING

(“THE MEANS”)

SOURCE: CHIPPEWA VALLEY TECHNICAL COLLEGE, EAU CLAIRE, WI

Join the Resurgence in Wisconsin Manufacturing

Demand for skilled graduates in the machine trades is again soaring. We have received requests for more than 100 graduates in Tool and Die and Machine Tool in the past 8 to 10 months. Graduates in the machine trades are accepting jobs paying $17 to $18 an hour with excellent fringe benefits. Many third semester students are accepting jobs even as they complete coursework. The opportunities are excellent. Classes start every eight weeks.

Contact Manufacturing Technology Campus at 715-874-4604.

“CVTC has always played an important role in providing us with qualified candidates. Right now we have openings for toolmakers starting at $20.00 an hour and machinists starting over $14.00, and we can’t find them fast enough. I see this as a great career opportunity now and into the future.”

Peggy Schlagenhaufer, HR Generalist, Hutchinson Technology

www.htch.com

Eau Claire Leader Telegram

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Manufacturing Career Paths Best Practice

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European Based Technical Training

Learning Manufacturing Skills Hands-On

Dual Training …. Theory in College, Hands-on at Sponsor Company

Scholarship ( free college and tuition)

Manufacturing Technology Degree ( AAS )

Journeyman Certificate by the Department of Labor

Guaranteed Employment After Graduation

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Why Partnership of Companies?

Strength in numbers (school)

Recruiting is shared

One program

Expenses are shared (graduation, advertisement…..)

To share knowledge

Agreement between Companies (job hoppers)

Soon or later everyone needs a favor

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2006 Apprenticeship Signing Group

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STATISTICS OF AMERITECH HISTORY

AVG. AGE (ALL EMPLOYEE’S) – 34.3

AVG. AGE (MANUF / DESIGN ONLY ) – 30.4

AVG. TENURE (ALL EXCLUDING STEVE ) – 6.74 Yrs

AVG TENURE ( ALL, EXCL. STEVE, AND (2) 1st YEAR APPRENTICES) – 7.37 Yrs

AVG WAGE / HR ( MANUF + DESIGN + (2)1st Yr APP) - $18.11

AVG WAGE / HR ( MANF + DESIGN ) - $19.07

(7) CURRENT APPRENTICE/GRADS- MANUF/DESIGN = 33%

TOTAL COMPANY – 28%

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New England M.O.S.T.Meeting The Challenge

New England M.O.S.T. Machine Operator Skills Training:

• Fast track training process• Developing “basically trained” machine operators to

address present manufacturing needs and future challenges

• Worked with over 50 New England companies• Graduated 91% of candidates• Placed 2/3 of graduates (130)

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Phase 1 New Hire “Fast Track” Training of “Non Traditional Workers”

New England M.O.S.T.

• New Hire Training Curriculum (80 hours)Shop Math Drawing Interpretation & Blueprint ReadingMechanical measurement & Quality ControlCNC Milling Technology w/ hands on trainingCNC Turning Technology w/ hands on trainingBasic CNC Programming & Machine Operation

Phase 2Phase 2 OJT TrainingOJT Training

• 8 Week Mentor Based Customized “Hands On”

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New England M.O.S.T.

State of the art mobile training unitPortability and FlexibilityTraining Cost effectivenessFacilitates on demand logisticsProgram Outreach (sends the message that manufacturing matters and we are doing something about it)

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Agie Charmilles, the Right EDM Choice for Schools and Colleges

National Support of Tool & Die TrainingNTMA National Apprentice Contest since 1991 ($100,000 Maximum 1st Prize)TMA: Provide site for EDM training courses

Programs to Help Attract Students into the Skilled Manufacturing Professions“Career Opportunities in Tooling and Machining” chart (50,000 copies distributed)“A Career in Toolmaking or Machining Technologies: The Right Choice for Students, Community and Country.” Available in 3 forms:

– Live presentations to teachers, administrators, guidance counselors, students and parents– A paper for you to use– A PowerPoint presentation on CD-ROM for you to use

“Machines For Schools” ProgramsSpecial pricing, rentals, etc., of new and used EDM’s (Wire, CNC, Manual)160 machines at 109 schools

Special Training MaterialSpecial “Train the Trainer” ProgramsWhen to EDM™Directory of EDM Related CoursesIntensive Manual EDM Operator Training Program

NIMS (National Institute for Metalworking Skills)Helped write the EDM testDid 100% of the EDM test validationOn NIMS board

• Call 847-955-7170 or e-mail harry.moser@charmillesus.com

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Calling All Machinists

“Machine shops……

-it’s a respectable trade and there’s still a lot of money to be made.”

“True machinists don’t think of metal as something hard and unchangeable. They can make anything they want, or replace nearly any part that’s ever been made. I have a lot of respect for those guys. I always will.”

-Jay Leno

Source: June 2000 issue of Popular Mechanics.

2002 AMBA Newsletter

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Advice About Careers in the Precision Metalworking Trade

“Go for it! It has given me a lot of discipline at work and at home. It is great when you canuse your brain and hands all day long! Precision Metalworking trade is an excellent stepfor a good and meaningful future.”

“Go for it! It has given me a lot of discipline at work and at home. It is great when you canuse your brain and hands all day long! Precision Metalworking trade is an excellent stepfor a good and meaningful future.”

“It’s not a job, it’s a career.”“It’s not a job, it’s a career.”

“Get into metalworking because there’s a lack of decent metalworkers. Very good job availabilityand benefits. Don’t become a pantywaist office working drone - be a man, work with steel.”“Get into metalworking because there’s a lack of decent metalworkers. Very good job availabilityand benefits. Don’t become a pantywaist office working drone - be a man, work with steel.”

“It’s fun, never boring, challenging, mind opening, sensory perceptional and very, very rewarding after completion of a job or project.”“It’s fun, never boring, challenging, mind opening, sensory perceptional and very, very rewarding after completion of a job or project.”

“Do it, it’s a lot of fun and good money.”“Do it, it’s a lot of fun and good money.”

“It’s a good and challenging skilled environment.”“It’s a good and challenging skilled environment.”

SOURCE: TMA “Apprentice Survey”, 1994-1995Term/1995-1996 Term.