I came across an article this morning that indicated, according to reports published Thursday, computer giant Hewlett-Packard (HP) could cut as many as 30,000 jobs to compensate for dwindling demand for personal computers as more people are using smartphones and tablets to access the internet.

The first thing that entered my mind was how the advancement of technology is both a blessing to some (smart phone and tablet manufacturers) and a curse to others, like HP, who is taking a major financial hit, and their employees that will most likely lose their jobs.

For example, over the years HP has made hundreds and hundreds of billions of dollars in the computer industry.

A blessing!

Now, analysts predict HP’s revenue for its current fiscal year ending in October will total $122 billion, down 4 percent from $127 billion last year.

A curse!

Companies like HP are losing billions in revenue and are scrambling to come up with the latest and greatest technology to increase revenue. To make up for lost revenue, in this instance, 30,000 people stand to lose their jobs.

Although, when taking into consideration that HP earns $120+ billion dollars annually, a $5 billion annual loss in revenue might not seem like much in the in larger scheme of things; but the devastating impact that the employees that lose their jobs must endure is sometimes disastrous.

For example, if HP trims its payroll by at least 18,000 workers, according to ISI Group analyst Brian Marshall, the company could save more than $1 billion annually. On average, that means HP had $55,555.56 dollars vested in to each employee annually ($1 billion divided by 18,000 employees = $55,555.56). 

I’m sure some employees make more, some less, but on average, that’s a very nice annual salary and I’m guessing that it will be very difficult for those employees to find jobs in this economy that will offer them the same or similar pay and benefits.

When employees lose their jobs, most are forced to file for unemployment insurance benefits. According to the Center on Budget and Policy Priorities in Washington, D.C., the average U.S. unemployment insurance benefit is $330 per week.

Imagine if your earnings went from $55,000 annually, which equates to $1057.70 per week, to $330 per week. Having bills and living a lifestyle commensurate with $1057.70 per week and now you have to try and pay those same bills, and feed your family, on $330 per week. Yikes!

To complicate matters more, unless dire economic conditions demand extensions, most states provide a maximum of 26 weeks of benefits. Chances are that you may suffer a significant financial loss. Not to mention the stress and emotions that it creates as a result. It forces many people into bankruptcy, or worse.

So, is advancing technology both a curse and a blessing? I’d say so.

I’d love to hear your thoughts and examples of how advancing technology can be a blessing to some and a curse to others.

Here’s to a thriving manufacturing industry that is in need of skilled workers to accommodate it’s growth. Another blessing and curse. But that’s a story I’ve already mentioned in previous blog posts.

If you missed the link above to the HP article, you can read it here.

- Troy Martz

As I was researching and posting relevant (I think) information regarding the lack of skilled labor to accommodate the growth in the manufacturing industry. I came across several articles, but one that really caught my attention.

Please have a read about how one Chicago manufacturer is dealing with the skilled labor shortage. You can read the story here.

Enjoy!

I’ve been posting about manufacturing returning to the United States and the concern over whether the manufacturing industry will be able to handle the load due to a shortage of skilled workers.

I read this article this morning that gives a glimpse into the Engineering Workplace and it talks heavily about some of the problem areas in the workplace. Be sure to click on the pie chart graphs on the sides for additional statistics.

This is an excellent article and it was Authored by Stephen J. Mraz., Senior Editor

An interesting article regarding the Tool and Die industry. Once again, good news on the manufacturing front, but more concern of a shortage of workers to accommodate the growth.

Read the article here.

I’m reading another article on reshoring, or bringing manufacturing back to the U.S. This article is particularly interesting because it talks about the possibility that reshoring could create 2 to 3 million new jobs by the end of the decade.

There is a problem, however. It seems there is major concern that the U.S. manufacturers will not be able to handle the load due to a shortage of workers. I find this to be an interesting dilemma. Primarily because of the HUGE number of Americans out of work in today’s economy.

Check out the unemployment statistics that are posted by the United States Department of Labor. The number of unemployed workers continues to increase in some states, while several states are seeing a decrease in the number of unemployed workers.

With the number of displaced workers in the U.S., how about implementing some sort of incentive program for unemployed workers to cross train into the manufacturing industry?

What are your thoughts on the subject?

I’m busy doing some industry research and came across this article that I wanted to share. It seems that several Chinese conglomerates are moving their manufacturing processes to the United States. Well isn’t this an interesting turn of affairs?

While it is creating jobs for U.S. workers, the biggest investments are being made by Chinese firms with products that have been slapped with hefty anti-dumping tariffs.

You can read the rest of the article by clicking here.

- Troy Martz

I was reading an article today from the U.S. Bank, interestingly enough, about a meeting that took place between more than 750 manufacturing executives at The Manufacturing for Growth (MFG) meeting in Orlando, Florida.

Their objective? To discuss the shift in positive momentum that is taking place in the manufacturing industry. It seems the majority in attendance agree that the “prospects are positive for American Manufacturing.”

Another interesting tidbit of information that I came away with from the article is that one of the biggest trends and a reason for optimism is how manufacturers who are bringing their businesses back to the United States are helping the manufacturing industry recover quicker than the rest of the economy.

It seems that the cost of manufacturing abroad has increased while costs have pretty much remained the same in the U.S., which is bringing manufacturing companies back to the United States.

Please take a look at the rest of the article by clicking here. It’s an excellent read.

Troy Martz

This is an excellent example of the Firebird database and it superiority in the market. The database they are testing is over 100 Gigabytes in size and there are over 100 local concurrent users logged into this database. In this test of the robustness of the database that SMe Software, Inc. uses in its SMARTer Manager product, the simulation also includes 10 remote locations with an additional concurrent users.

No other manufacturing software specifically targeted to the small to mid-size manufacturer utilizes a database that can grow with any manufacturing business. Whether you’re a job shop or a custom manufacturer with a single or multi-location, our manufacturing software is definitely SMARTer, it’s All You Need!

Does your Job Shop Software do this?

I love hunting for the Entrepreneurial Spirit of Manufacturing in the United States, it is still alive. It always amazes me how the human spirit is so full of imagination and how that imagination becomes manufactured ideas that span generations; like marbles.

Remember playing marbles? Well, maybe I’m dating myself but everyone use to play marbles. They were the gold and silver standard of the American Playground, heck you could score great food, girls and maybe even get someone else to do your homework for the right marble.

Its that same American Manufacturing entrepreneurial spirit (that was a mouth full) that drove Berry Pink and Sellers Peltier to found Marble King in 1949. Peltier was the glass manufacturer who produced the marbles for Marble King which was owned by Pink. Eventually Peltier couldn’t keep up with the demand from Marble King so a good ol’ fashion Partnership was formed.

Today Marble King is still owned by an original name, Howdyshell, who moved from Facility Manager to owner in 1983. Howdyshell is known for contributing the “Cat’s Eye” marble and veneering process. More than 63 years later Marble King remains one of the last marble manufacturers in the world and literally the last American Marble Manufacturer.

Our hats are off to the Marble King for keeping the American Dream alive in manufacturing!

SME Software, Inc. today announced that the current version of its application, SMARTer Manager, works with Windows 7 to offer customers enhanced security, as well as innovative user interface features and reliability improvements. SMARTer Manager is a user-friendly configurable enterprise software solution suited for job shops, repetitive and mixed-mode manufacturers, including all functionality needed in the manufacturing business.

“Our ISV community is alive with innovation, and we’re committed to helping our partners drive the next generation of software experiences,” said Ross Brown, Vice President of ISV and Solutions Partners for the Worldwide Partner Grop at Microsoft. “Adding compatibility for the latest Microsoft operating systems helps ISVs to stay ahead of the competition and give their customers access to cutting-edge technologies.”

“SME Software, Inc. is excited to have SMARTer Manager be compatible with Windows 7,” said Ramona Grissom, President of SME Software, Inc. “Making our application compatible with Microsoft Windows 7 helps us offer our customers compelling benefits, including improved security and reliability features, tools to keep them connected to data stored on the web, full support for multi-core processing, and flexible access administration to improve mobile working.

SMARTer Manager is remaining ahead of the competition with this Windows 7 version of SMARTer Manager. SMARTer Manager provides manufacturers with a complete manufacturing management solution with a highly modular, scalable and configurable design that is ideally suited for job shops, repetitive and mixed-mode manufacturers. Features include Estimating, Sales Order Processing, Production Control, Job Costing, Inventory Control, Bill of Materials, Real-Time Labor Tracking, Finite Capacity Planning, Bar Coding Technology and complete Accounting.

Founded in 1987 and headquartered in Hayden, Idaho, SME Software, inc. is the producer of SMARTer Manager manufacturing management software. SMARTer Manager is a leading provider of manufacturing management software for repetitive and mixed-mode manufacturers, addressing the unique needs of the small to midsize enterprise market. For more information, call (888) 676-2787, or send an email to marketing@smartermanager.com. We can also be found online at www.smartermanager.com and on Twitter at www.twitter.com/SMARTerManager.