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

1
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 EDMs for schools and colleges, contact
• Charmilles Technologies Corporation
• 560 Bond Street
• Lincolnshire, IL 60069-4224
• FAX [phone]
• PHONE [phone]
• LuAnn Twite, Schools Centers Coordinator,
  847/955-7170
• Harry C. Moser, President, 847/955-7102
• January 2002 Edition

2
Overview
I. INTRODUCTION II. IMPORTANCE TO
COUNTRY A. Introduction B. Quote-Peter
Drucker C. Technology Requires
Skill D. Domino Effect-Page 1 Domino
Effect-Page 2 E. Should We Train Service
Providers or Toolmakers? F. U.S. Tooling
Machining Industry III. IMPORTANCE TO THE
COMMUNITY A. Pennsylvania Case Study
1995 IV. IMPORTANCE TO THE INDIVIDUAL A. Introduc
tion B. Attitudes/Expectations College
Freshmen C. Apprentices Future Goals D. Career
Opportunities Chart-Page 1 Career Opportunities
Chart-Page 2 E. Career Opportunities
Table
F. Overtime Toolmakers Other Professions G.
Projected Average Annual Job Openings
1990-2005 H. Opportunities vs.
Expectations I. Supply Demand V.
EDUCATION A. Median Annual Salary
Chart B. Median Annual Salary
Table C. Percent of Bachelors Degree
Holders D. Supply/Demand Imbalance E.
Post-Grad Ceremony F. College Graduate
Janitor G. Ranken, Job Opportunities vs.
Graduates H. TMA Graduation Rate
Chart I. Income, Workers Age 20-34, March
96 J. Tool Die vs. English Major K. Publics
View of College vs. Training L. Manufacturing
A Practical Step Towards a Degree M. Choice-Tool
Die, A Practical Basis for a Degree N. Relevanc
e
3
Overview
V. EDUCATION (Continued) O. I Hear I
Forget P. Related Careers VI. PUBLIC
PERCEPTION A. Introduction VII. RECOMMENDED
ACTION A. How Meadville New York State get
Publicity for the Trade B. How
Apprentices First Became Aware of the
Metalworking Trades C. Career Choices Begin
at Home D. Key Questions E. Challenge
F. HR877 Skilled Workforce Enhancement Act
of 1999 G. Misallocation of Subsidies H.
Advice about Careers in the Precision
Metalworking Trade
VIII. WHAT CAN CHARMILLES DO TO HELP?
A. Charmilles, the Right EDM Choice
for Schools Colleges
4
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.)
5
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
PROBLEMS
NECESSARY CONDITIONS
- SKILLED LABOR - TECHNOLOGY INVESTMENT
- VERY SHORT SUPPLY - 40 OF COMPANIES CAN
NOT MODERNIZE EQUIPMENT BECAUSE WORKERS LACK
THE SKILLS
- INEFFECTIVE SKILLS AMONG EMPLOYEES HAVE
PREVENTED ONE IN FIVE MANUFACTURERS FROM
EXPANDING.
CONCLUSION A COMPETITIVE U.S. ECONOMY REQUIRES
MORE SKILLED MANUFACTURING TRADESPEOPLE.
SOURCE Competitiveness Policy Council SOURCE
National Association of Manufacturers
7
Domino Effect

• PHASE I
• -SKILL SHORTAGE
• -DELIVERIES PRICES INCREASE
• -MOLD MAKING LOST OVERSEAS
• -MOLDING LOST OVERSEAS
• -PRODUCT ASSEMBLY LOST OVERSEAS
• -PRODUCT DESIGN LOST OVERSEAS
• -FOREIGN OWNED COMPETITOR ENTERS
• MARKET

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Domino Effect (Contd)

• PHASE II
• 1ST HITS INDEPENDENT MOLD AND
• MACHINING SHOPS
• 2ND LARGER COMPANIES LOSE
• THESE COMPANIES AS A
• SOURCE OF TRAINED RECRUITS
• PHASE III
• U.S. LACKS THE SKILLED WORKERS
• TO TRAIN NEW EMPLOYEES

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Should We Train Service Providers or Toolmakers?
CONCLUSION Our training resources should be
directed to the kinds of work that are both
highly paid and subject to import competition.
10
U.S. Tooling and Machining Industry

• 14,000 Companies
• 350,000 Skilled Workers
• 35 Billion/Year Production
• 15,000 Current Job Openings

11
Importance to the Community

• Clean
• High Income
• Stable Jobs
• 55 Hrs/Week in Boom Times
• 40 Hrs/Week in Recessions
• Small-Medium Size
• Privately Locally owned, stable
• Companies dependent on Local, Skilled
• Labor
• 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
MANUFACTURER LOCATION RURAL PA PROJECT NEW
PLANT TOOLMAKERS, SHORTFALL 26 IMPACT OF
SHORTFALL ON 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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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 RATED VERY
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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Apprentices Future Goals
65 Journeyman 34 Company Owner 29 Design
Engineer 27 Complete Associates Degree
17 Complete Bachelors Degree
3 Other 106 Total
Source TMA Apprentice Survey, 11-00.
CONCLUSION Apprentices are confident of finding
what American Youths seek.
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Career Opportunities
1994 AVG. INCOME (INCL. OVERTIME)
CATEGORY
COMMENTS
Toolmaker/Precision Machinist
53,000
Excludes Tool Die managers, owners
52,000
Families with 2 or more earners
Includes Company Executives with degrees
49,000
4 or more years of college
38,000
Managerial Professional Jobs
31,000
2 years of college
25,000
High School
24,000
Technical, Sales Admin.
19,000
Less than High School
Source Average of 1995 Survey Data from NTMA,
TMA, AMBA, PMA, National Bureau of Labor
Statistics, U.S. Census Bureau
OBSERVATION Toolmakers category is defined by
current job and therefore does not include the
salaries of managers and owners who started as
toolmakers. College degree categories are
defined by education and do include the salaries
of individuals promoted to higher levels.
CONCLUSION The relative expected career income
of toolmaker graduates versus college graduates
may be understated by the above data.
17
Overtime Toolmakers and Other Professions
SOURCES TMA, Labor Market Information 1995
Bureau of Labor Statistics, 1997
18
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.
(LATEST AVAILABLE DATA, 9/1/01.) CONCLUSION
PRECISION MACHINING IS ONE OF THE FEW CAREERS
WITH BOTH A HIGH RATIO OF DEMAND TO SUPPLY AND A
HIGH INCOME.
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Opportunities Versus Expectations
Pick a Career In Which You Are Likely to Find a
Job!
Aspirations
Job Market
1976
1988
1987
3
1
17
Labor/Semi-Skilled
Service/Protective/Military
15
10
10
Office Clerical
16
9
14
Sales Clerk/Representative
8
4
4
Crafts/Skilled Labor
12
6
12
Owner/Manager
13
12
19
Professional
19
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Source University of Michigan Survey of High
School Seniors. October 1990/ Illinois
Issues. (Latest available data, 9/1/01.)
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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Example of Supply and Demand
Charmilles Ads in the Chicago Tribune
APPROX.
REPLIES
CURRENTLY UNEMPLOYED
TOTAL
QUALIFIED
WEEKS RUN
1
150
480
500
ACCOUNTANT
MOLDMAKER
0
3
12
2
Source 1994 Charmilles Ads, Chicago Tribune.
21
Median Annual Salary of Bachelors Graduates by
Field of Major and Age, 1993
TOOL DIE
Source 1993 National Survey of College
Graduates, NSF/SRS, NTMA, PMA/TMA. (Data will
next be released in 2003-2004)
22
Median Annual Salary of Bachelors Graduates by
Field of Major and Age, 1993
Advanced degrees are excluded, bachelors is the
highest degree of the person. Annual salary is
only available for those working full-time, not
as self-employed during week of 4/15/93. Tool and
Die income includes overtime. Only for teaching
in non-science fields. Teaching in science and
engineering fields are included within individual
science and engineering fields. (Latest available
data is from 1993.)
23
(No Transcript)
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Supply and Demand Imbalance
ANNUAL MOLDMAKER GRADUATES 100S ANNUAL LIBERAL
ARTS GRADUATES A MILLION???
25
Develop A Tangible/Valuable Skill
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College Graduate Janitor
87,000 college graduates, including 7,000 with
Masters Degrees, are employed in the nations
mailrooms and another 97,000 college graduates
are janitors or cleaners.
SOURCE 1995 U.S. Census
27
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
Colleges Ten Year Placement Rate is
98 (period covered for chart 99/00 school
year from June 1, 1999 through May 31, 2000)
PMT
SOURCE Ranken Technical College, St. Louis, MO.
28
TMA Related Theory Graduation Rate
Compared to Illinois Public Universities.
3 years
6 years 5 years 4 years
CONCLUSION Graduation rate is better and
students graduate sooner if work-related.
Source Board of Higher Education Fall
Enrollment Surveys and Public Universities
Records for the class of 1987 through 1992 , TMA
Related Theory Records, 2001.
29
Income, Workers Age 20-34 in March of 1996
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.
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Tool Die or English Major ? A Million Dollar
Decision
Annual Income/Age
Cumulative Income/Age
Tool Die Cumulative After-Tax Savings/Age
Assumptions 1. Zero wage inflation 2. Savings
50 of difference in income 3. Investment
return of 7 per year on savings
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Publics 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.
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Manufacturing A Practical Step Towards a Degree
Senior 4 40G
Articulated High School Program
Senior 4 40S
Mechanical Engineering Technology Program (2
Years)
Manufacturing Technician Program (2 Years)
Manufacturing Technologist Program (1 Year)
Bridge to University of Manitoba Mechanical
Engineering Program
Advanced Diploma Advanced Technology Management
Advanced Diploma Advanced Manufacturing Technology
B. Technology
SOURCE Red River Community College, Winnepeg,
Manitoba, Canada
33
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
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Role of Relevance in Education
Current Education Philosophy - Avoid Rote -
Practical Examples - Relevance to Life or Work
Vocational Application - Relevant Work -
Trigonometry, geometry - Apply Integrate
concept and work
Academic Application - No relevant work
experience - If Johnny has 4 joints and
sells 3
Conclusion - Get their attention with
toolmaking training. - Encourage them to
pursue an engineering or business degree after
they have established a competence on which
to build.
35
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.
36
Related Careers
? Teach EDM
? Applications Engineering
? Sell EDM Machines
? Sell EDM Supplies
? Sell Mold Supplies
? Sell Molding Machines
? Market Machines, Molds, Etc.
? Design Molds
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How to Get Publicity For the Trade
SOURCE Larry Sippy, SIPCO, Meadville, Oct. 5,
1995
SOURCE Jim Nieboer, Liberty Tool Corporation,
Oct., 1995
CONCLUSION Local Publicity Can Dramatically
Increase Recruitment.
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How Apprentices First Became Aware of the
Metalworking Trades
How did you first become aware of the trade?
58 Relative/friend 19 Through another
job 17 High school instructor 8 Other
2 School career day 0 Guidance counselor
Besides yourself, who was most influential
in your
career choice?
47 Parents/family 28 Employer/Supervisor 17 Cou
nselor/teacher 10 Other
SOURCE TMA Apprentice Survey, 11-00
CONCLUSION Parents/ Family/ Friends are the key
to recruiting.
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Career Choices Begin at Home
Study among 5th graders about Career Patterns
More kids want to be like Mom rather than like
Dad.
CONCLUSION A supply of precision machinists in
the next century may require attracting and
training female machinists now. This should be
achievable since high Tool and Die incomes are
an even greater advantage for women because
currently women have, on average, lower incomes
than men.
SOURCE Mothers More Than Fathers Coach Kids in
Job-Choice Game, Carol Kleinman, Chicago Tribune
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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
41
Challenge

• Guidance Counselors
• Present toolmaker career alternative to most
  college track students
• Vocational Teachers
• Make machining and toolmaking exciting
• Get modern equipment
• Attract good students
• Shops
• Support the schools
• Create and expand apprenticeship programs
• Machinery Makers
• Support the training programs
• Congress
• Pass HR877 Skilled Workforce Enhancement Act

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HR877 Skilled Workforce Enhancement Act of 2001

• Tax credit for apprentice trainee wages
• Maximum credit 15,000/trainee/year taken in year
  wages are paid
• Wages gt15,000/year still a deduction
• Precision Machinists, Diemakers, Mold Makers and
  other highly skilled small business trades only
• Small business employer 250 or fewer employees
• Introduced by Congressman Foley (FL)
• Supported by NTMA

43
Misallocation of Subsidies
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
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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
can use your brain and hands all day long!
Precision Metalworking trade is an excellent
step for a good and meaningful future.
Its not a job, its a career.
Get into metalworking because theres a lack of
decent metalworkers. Very good job
availability and benefits. Dont become a
pantywaist office working drone - be a man, work
with steel.
Its fun, never boring, challenging, mind
opening, sensory perceptional and very, very
rewarding after completion of a job or project.
Do it, its a lot of fun and good money.
Its a good and challenging skilled environment.
SOURCE TMA Apprentice Survey,
1994-1995 Term/1995-1996 Term.
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Charmilles, the Right EDM Choice for Schools and
Colleges

• National Support of Tool Die Training
• NTMA 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 Programs
• Special pricing, rentals, etc., of new and used
  EDMs (Wire, CNC, Manual)
• 160 machines at 109 schools
• Special Training Material
• Special Train the Trainer Programs
• When to EDM
• Directory of EDM Related Courses
• Intensive Manual EDM Operator Training Program
• NIMS (National Institute for Metalworking Skills)
• Helped write the EDM test

• Call 847-955-7170 or e-mail harry.moser_at_charmilles
  us.com