Manufacturing megatrends that will change your world

Following is an article from GIL Community (the Global Community of Growth, Innovation and Leadership), subscribe to the community at: www.gilcommunity.com to read more articles like this - written by Paul Tate.

A quick snapshot of the companies listed in the Fortune 500 ten years ago is a sobering exercise. Over half of those organizations have now either disappeared off the list, or no longer exist, at least in their original form, notes Frost and Sullivan vice president and Megatrends analyst Richard Sear.

So how do you avoid becoming one of the world’s lost companies over the next ten years?

The most critical role any business leader must perform is to identify and plan a successful path forward for the future of the enterprise. That means identifying and understanding the trends that are going to transform your business in the years ahead.

The problem is that anticipating the future in today’s world, where the speed of change is so rapid and sudden, innovative disruptions are so common, may seem like an impossible task.

There are essentially two approaches to grappling with this difficult task. The first is simply to sit back and allow new technology and business models to converge into your business and then react as best as you can. The second is a proactive stance to understand and embrace change, and therefore be in a position to capture growth opportunities faster and more fully. What’s your risk profile?

Frost and Sullivan’s Sear has identified a series of global megatrends that he believes are set to fundamentally transform the world we live in over the next decade or so -- and which will have a major impact on the future of manufacturing and its growth prospects.

They are:

• The City as a Customer: The emergence of new megacities around the world, especially in Asia and Latin America, linked by highly urbanized corridors of development. These will become the world’s key centers of economic growth, creating new and different markets for manufactured products and creating significant logistics challenges for delivery to customers.
• Social Change: The combination of an aging workforce in many western economies, with the growth of demanding, impatient and tech-savvy Generation Y consumers who expect higher degrees of personalisation in both products and services.
• Technology: The increasing development of virtual worlds, augmented realities, big data, and pervasive robotics will change the way both manufacturing companies and consumer markets operate and develop new ideas.
• Smart: Extensive embedded intelligence in physical assets and products – often call The Internet of Everything – will see a significant shift towards smarter, more connected products with vast supporting networks and real-time applications.
• New Business Models: These fundamental global shifts will require companies to re-assess how they do business, and how they deliver value in the future – resulting in more collaborative operating models with a greater emphasis on delivering ‘Value for Many’ and frugal engineering approaches.
• Infrastructure: How will you be affected by a greater focus on how the world harnesses its energy resources, and creates new, more sustainable and lower cost ways to store and ultilize future energy?
• Beyond BRIC: The rapid rise in new markets and fast-growing emerging economies around the world in the decade ahead will create new markets, new global competitors, and new manufacturing opportunities that will force companies to re-asses their global production strategies and footprints. 

Where will the hot spots be and how will they change your future plans?

Manufacturing seems destined to play a key role in both reshaping existing industries and enabling others to emerge as these megatrends push the world beyond the end of this decade.

The companies that make the effort to understand and plan effectively for this future, change the way they make decisions, redefine the value they create, and restructure how they deliver that value, are likely to be the ones that will survive and thrive.

So how are you now seeking to better understand the disruptive long-term trends that could determine the future of your business?

Are you adopting internal strategies that will make your enterprise more adaptable to the fundamental economic, social, technological and industrial changes ahead?

Be part of the Third Industrial Revolution

Much has been said about the Third Industrial Revolution, part of which predicts the emergence of Additive Manufacturing and 3D printing as an enabling technology for anyone wanting to be involved in manufacturing. The introduction of such revolutionary technology makes the industry more accessible and customisable than ever.

See our previous post on the Maker Movement for more information.

White Paper: Capability drivers for Queensland manufacturing

While the impact of the GFC for Australia manufacturers was less severe than first thought, the industry experienced an overall decline as a contribution to Australia’s GDP between 2005-06 and 2009-10 was 0.8%, falling from 9.5% to 8.7%.

The issue of manufacturing competitiveness has reached a seminal turning point for the industry in terms of its ability to remain competitive. Professor Goran Roos, former Thinker in Residence for the South Australian Government and current Chairman of the Advanced Manufacturing Council in Adelaide, in his 2011 Manufacturing into the Future Report, asserts the GFC changed the competitive environment for Australian manufacturing from a low-cost competitive environment to a high-cost one.

As a result, manufacturers need to realign themselves with some of key sources for competitive advantage in this new environment. Roos contends that these come from:

• innovation which is not limited to technology but also includes design and organisational innovation
• repositioning to leverage opportunities in renewable and alternative energy technologies
• unique opportunities to access resource projects and the global supply chain

This White Paper focuses on the third opportunity proposed by Roos – the ability of manufacturers (suppliers) to increase their capability so they are able to better compete for access to resource-related projects. The suppliers examined for this paper are based in Queensland, Australia.

Click here to access the White Paper.

The diffusion of the Maker Movement and how anyone can get involved

While getting back into the social media swing of things, I've noticed a bit of talk around about the Maker Movement. The Maker Movement is a typical culmination of technology diffusion. Actually that is wrong! It is really evolving rather than culminating because we cannot be 100% certain of the path the technology will take from here.

Nevertheless, the Maker Movement has sprung from additive manufacturing technology, which in turn sprang from the rapid prototyping technology that was used by larger companies to test parts and new product concepts. Additive manufacturing is a technology similar to stereolithography (SLA) as introduced to Australia by our company QMI Solutions in the late 1980s and early 1990s.

The interesting thing here is the rate of innovation diffusion and the technology adoption cycle. Dr Tim Kastelle has a great blog post on What Makes Innovation Diffusion Difficult. But the Maker Movement, while new in name, has been under development for at least 20 years and it is really only because the technology has been proven, has increased uptake, has consumer-friendly platforms that it is now becoming a movement that is accessible and affordable.

Late last year, Editor of Wired magazine Chris Anderson left this position to write a book on the Maker Movement subject Makers: The Third Industrial Revolution but also to run his own company 3D Robotics. The third industrial revolution was the subject of a previous post. In this interview with Tech Crunch, he says "hardware is the new software" and evidences the power of the Maker Movement when the CAD file of an IPhone case was open sourced - taking customisation to a new stratosphere it allowed customers to put "their own DNA" into the design process of the finished product.

His story about how he got involved in the Maker Movement via LEGO is great too.

And while it's great to see a new movement in manufacturing the best thing about the Maker Movement is that anyone can be involved.

Driving the uptake of new skills in manufacturing

Hi there. Sorry for the long break between posts. You may have read in previous posts about the F1inSchools project. It's a great project [read here about similar ones in previous posts] that encourages young people, usually school teams, to be involved in the design and manufacturing of model Formula One race cars. The cream on the cake is that at regional, state and national finals, the team also get to race the cars.

Recently, the Queensland finals were held at Bundaberg State High School. The Manager of the project Leanne Hixon, was closely involved in organising the event and ensuring a good turnout of schools at the finals which saw 84 students from 18 teams involved in the event. Leanne was so involved she helped designed and manufactured two cars that almost held their own in achieving fast racing times.

Leanne Hixon ready to put the cars under starter's orders

Congratulations to the Major winners:

• Overall Winner (highest points on the day): Attacca Subito from Pine Rivers State High School
• Professional Senior Class: Attacca Subito – Pine Rivers State High School
• Professional Junior Class: High Voltage Racing from Noosa District State High School
• Development Class: Southern Cross Racing from Noosa District State High School
• Cadet Class: Ace Racing – Mackay North State High School

The National Final will be held in Avalon Melbourne 27/28 Feb and 1 March in 2013 in conjunction with the Avalon Air Show with the following Queensland teams attending:

• Attacca Subito from Pine Rivers State High School
• High Voltage Racing from Noosa District State High School
• Southern Cross Racing from Noosa District State High School

Apastron from Mirani State High School and a collaboration team from Split Second Racing – St Patrick’s College Mackay and High Calibre Racing Mirani SHS’ received wild cards to attend the National Finals.

Why manufacturing matters - the difficulty in disconnecting

Tim Mazzarol blogs on The Conversation about some of the reasons why manufacturing matters. He reasons that it is almost impossible to disconnect manufacturing from its flow-on benefits to other sectors in terms of innovation and productivity specifically, but this doesn't mean propping up unsustainable industries either.

Both government and industry have a role to play to ensure we don't lose manufacturing as a key enabler for economic growth and become too reliant on a finite mining boom. He also refers to the US commitment to rebuild their manufacturing industry and the reports that underlie the movement. It's quite a good read.

Click here to read the full story.

Powering up the manufacturing engine room

In my spectacularly unsuccessful rugby days, I had the dubious privilege of playing 'Hooker'. This must conjure up some colourful images for my US friends, but I assure you the hooker position is an important and respectable one. In Rugby, as opposed to Rugby League, the hooker is charged with the task of winning scrums (by hooking the ball), throwing the ball for line-outs and should be fit enough (not me) to be present when contesting the ball in all rucks or mauls. The Hooker is one of three players in the front row of a scrum, which my coach used to call the 'engine room' of the game.

This is apt because those of us in the engine room were not particular known for our good looks or flamboyance, but were the essential cogs in the team's machinery that provided the force and power to enable the other team members to score the points. Post-game there are always half-serious jibes between the forwards (the workhorses) and the backs (the glamour boys).

I recently heard the engine room analogy used to describe manufacturing and it is an apt one. Manufacturing provides the process - the grunt work - for industry such as mining, resources, construction and infrastructure - enabling them to deliver value and boost the ceonomy as a result. Value, in this case, is more than product. It is delivering value in its broadest sense in terms of product and service (maintenance), but also in terms of R&D, innovation, process improvement and job multiplier effects.

Like any engine room, manufacturing needs to have the muscle and intelligence behind it to move forward. Our muscle and intelligence can be built if we address the following (as mentioned in a previous post):

• the business case for manufacturing
• the elements impeding the career path
• sector prioritisation

If we get these things right, the engine room will continue to move us forward. If the engine room slows down, so does everything else.

Advancing manufacturing

by Jim Walker, CEO - QMI Solutions

QMI Solutions has a history of aligning itself with world leaders and experts on manufacturing. This is how we are able to transfer proven practices and technology for the benefit of local industry - the primary reason for the establishment of QMI Solutions.

Most recently, we have been fortunate enough to work with Professor Goran Roos, a leading thinker on manufacturing and a world-renown academic and strategic advisor to industry around the world. It was great to see Professor Roos as one of our keynote speakers on “The future of Australian Manufacturing” at our Manufacturing Skills Conference held in May.

 

In 2008, Australia moved from being a low cost environment to a high cost environment and is ranked the third most expensive country in which to conduct business. Professor Roos says because the shift to a high cost environment has occurred relatively quickly, many support businesses and systems have not been able to make the change required to compete successfully.

 

Compounding this, over the past decade, Australia has experienced a flattening trend in productivity. Although the Australian economy has experienced average annual GDP growth rates ahead of many other developed economies, ours dropped over the past decade and is only now showing signs of relative improvement. Sometime around 2002, Australian productivity went from growing substantially faster to growing substantially slower than the OECD average. Added to this, Australia’s innovation performance over the past eight years slipped from 5th to 15th according to the World Economic Forum’s Global Competitiveness Index.

 

Click here to read the full article.

Squeaky clean manufacturing and the third industrial revolution

An interesting article from The Economist about the dawn of (new) manufacturing, see my previous post - specifically referring to the trade fair Euromold and the emergence of 3D printers and additive manufacturing in particular. The article points towards a Third Industrial Revolution, as outlined in a previous Economist article.

For me, there are two subtle, but important, points underpinning the theme of the article:

• with new technology being developed in additive manufacturing, virtually anyone with the technology can be a manufacturer (see previous post)
• it will be more important than ever for this (new) manufacturing industry to be located in proximity to market of consumption  (see previous post)

Tell me I'm wrong...

Click here to read the full article.

The evolution of (new) manufacturing

There is much conjecture about the future sustainability of the manufacturing industry, especially in industry news out of the US. Previously, some economists predicted the need for a more service-based economy as, they argue, manufacturing is now the primary domain of the lower-cost BRIC nations. Contrarily, stories are now emerging where large manufacturers are 'reshoring' or coming back to the west - up to a third of manufacturers are looking at reshoring according to a recent Boston Consulting Group Survey.

There's no doubt the industry is at a watershed in its global relevance. To date, the focus has been on an emerging China and the low-cost production and vast consumer market it offers. The balance is due to shift, as outlined in a previous post on MIMOC. Manufacturing In Markets Of Consumption is where production is determined by proximity to markets and is expected to be felt in large consumer markets such as Europe, US and China. Some will say it is jobs coming back to their rightful place and well... let them say that.

In consuming various facts and opinion, I've reached a number of conclusions that both resonated with and challenged my previous beliefs:

The business case for manufacturing
The business case for manufacturing must be compelling enough to convince economic rationalists and those in positions of power as to its worth. These stakeholders will be supportive of the industry if they recognise its long-term value - at present, most do not.

It is likely industry will change it spots - perhaps a third Industrial Revolution is on its way, led by a digital manufacturing movement? Adjusting to such change will be difficult at worst, but not impossible. Its resilience has been proven in the face of natural disasters, economic volatility and competitive pressures in times gone by, and there's no doubt our approach needs to change. I recently became engrossed in a presentation by Professor Goran Roos who noted that Australian manufacturing, mainly because of its parity with the US dollar, has moved from a low-cost competitive environment into a high-cost one and has to shift its approach accordingly. He makes salient points in his 2011 report "Manufacturing into the Future" such as - advanced economies need manufacturing because:

• nations that emerged best from the GFC were based around high-value add export oriented manufacturing
• it is the biggest spender on applied research and driver for productivity
• it is the largest generator of employment
• manufacturing is at the forefront of applied technology and innovation
• the resources boom may be shorter than expected

It is people like Professor Roos that will help build a sound business case for manufacturing that will resonate with economists and influencers, minus the sentimentality.

Blatant promotion: Professor Roos is a keynote speaker at our upcoming Manufacturing Skills Conference on 18 May.

Let's address the career path
Many governments and industry associations have orchestrated campaigns to make manufacturing "sexy" or "cool" to kids. I read an article on the manufacturing skills shortage that examined the deep psychological roots the industry has for Gen Y and thereby influencing their choice of manufacturing as a career path. AJ Sweatt says its not that people are smarter, that they don't want to make things or even that they don't think manufacturing is "cool". He says:

"The problem is that for a generation, US manufacturers outsourced the jobs of fathers, mothers, uncles, aunts, brothers and sisters in search of cheap labor...the factory/mill/shop/plant was shutting down, and the manufacturing job that had given them a decent life, pride, and dignity was no more. There were probably tears. Moods changed, relationships suffered, some families shattered. These kids watched their parents and communities face a dust-bowl reality that said they were expendable....How do you tell someone to ‘un-live’ that?"

Is this the same for Gen-Y and Gen-Z in Australian manufacturing? Perhaps. In my encounters with Gen-Y, it seems that remuneration, status (career progression) and lifestyle are the determining factors in a career choice. Much is being done to re-educate Gen-Ys about the changing nature of (new) manufacturing careers, but this is a long-term challenge requiring a long-term commitment. If we do not continue this campaign, we will reduce the future capability of (new) manufacturing. We will only know if it has been successful once all of Gen-Y are in the workforce and by then, we should be wising up Gen-Z that manufacturing is "mental"(?)..watch that phrase catch on in a couple of years.

The "S" word
Now here's a dirty word... "subsidies" a.k.a. "protectionism". I know it is US-centric, but I refer you to a great article on how "Balancing Trade is not Protectionism". The author Mike Collins argues that the US trade balance is not based on a level playing field as China manipulates its currency to force a trade deficit. He says the only beneficiaries are US multinationals (who produce in these low-cost countries) and those nations that manipulate their currency, likening the relationship as trying to sustain a heroine addiction. His argument that the US should be using the "S" word to protect its future from the ultimate collapse that will happen from an ever-expanding trade deficit.

I tend to agree that why wouldn't we, as part of a manufacturing policy, identify key manufacturing sectors of strategic importance and support them in preparation as future economic cornerstones? As those sectors mature, ultimately other low-cost providers will emerge which is when the free market should take over and we should look at the next wave of strategically important sectors.

Well, that's my brain drained. What do you think?

Skills development: are manufacturers shooting themselves in the foot?

A pertinent question as asked by the Manufacturing Executive blog. It aligns with one of our previous posts about the benefits of recruiting mature-aged workers. But in the long-term does this benefit the industry?

Will this practice of hiring mature-aged workers ultimately discourage Gen-Y and the long-term sustainability of the manufacturing industry?

Comment below or on the post at Manufacturing Executive.   

Offshoring in the west. Viable in the long-term or just lucky?

I found this a very interesting article to come out of WalesOnline. Major multi-national Tata, which makes everything from trucks to tea, has invested £800M in Welsh steelworks facilities. The Tata Steel spokesperson said the reasons for this investment were because of the quality of the workforce, strong industrial relations and a supportive Welsh government.

It's welcome news for the 8000 people employed by Tata in Wales, but more broadly offers an interesting twist on the offshoring issue and its implication for Western manufacturers.

Could manufacturers in the US, Europe and other western nations be genuinely considered as viable offshoring alternatives for the big manufacturers? eg those from India and China. The majority of economic arguments up to now would say otherwise.

Two of the reasons why you might think western manufacturing nations were unattractive offshoring alternatives; a quality (highly paid?) workforce and industrial relations practices, were some of the reasons why Tata were drawn to investing in Wales. Are these features that much of an enticement for overseas investment?

Another byproduct of the success was the Welsh government was able to 'on-sell' education via its FE colleges to the Indian education department - this may have helped seal the deal.

What do you think? Is it a viable alternative for western manufacturers to attract BRIC-type (Brazil, Russia, India, China) investment?

Anyone can be a manufacturer

Another interesting post from Derek Singleton on the Software Advice website discussing the next manufacturing revolution - and how it's driven by individuals not corporations. For me, the most interesting part was his list of enabling technologies to help this revolution:

• Crowdsourcing – Crowdsourcing is an approach to idea generation and product development, not a technology. However, there’s a variety of tech resources available that enable crowdsourcing for any kind of project; check out Open Innovation for a great list.
• CAD Software – 2D and 3D designs created with CAD software can be saved in a sharable file format before production. You can access professional-grade CAD software on a subscription basis for $19.95/month from Local Motors.
• 3D Printing – 3D printers are rapidly decreasing in price, making it affordable to create a prototype model of a CAD design. Some 3D printers are already powerful enough to make small numbers of finished items. As this technology advances, the hope is that individuals will be able to produce larger batches of finished products.
• Manufacturing-as-a-Service – Manufacturing is following software’s lead and becoming an on-demand service. Online manufacturing directories like Alibaba and ThomasNet can connect you with a manufacturer that will build for you so you don’t have to invest in any equipment.
• Cloud Computing – The Cloud isn’t a manufacturing-specific technology but it deserves a mention because of how cost-effective it makes running a product business. Cloud solutions like NetSuite and Plex provide affordable solutions for managing orders, inventory, accounting and other business functions.
• E-commerce – Of course, the Internet is a critical enabler for any business these days. Sites like eBay, Amazon, or your own e-commerce website, make it easy for customers to find and buy from you. If you’re interested in running your own e-commerce site, you should check out Volusion and BigCommerce.

 Click here to read the full article.

News coverage of Obama's $1 billion initiative to boost manufacturing

Some recent news coverage from the Society of Manufacturing Engineers on Obama's announcement to boost manufacturing:  

CNN (3/9, Aigner-Treworgy) reported, "President Barack Obama traveled Friday to a Rolls-Royce jet engine facility in Virginia, where he outlined a proposed network for manufacturers to share 'access to cutting edge capabilities.' Obama, speaking in Prince George, said the National Manufacturing Innovation Network is meant to link industry stakeholders in a national conversation about best manufacturing practices. The cost of the president's new proposal is $1 billion, but the White House is committed to creating a pilot program using appropriated funds from various departments, rather than waiting for Congress to approve funds requested in the president's budget."

        The Washington Post (3/10, Wilson) reported, "The centers would bring together industry, colleges and universities, and government agencies, as well as invest in new technologies, to help train workers for what the president has called the manufacturing jobs of the future. Obama also announced steps to use executive authority to authorize $45 million in existing resources to develop a pilot program for those institutes. The money does not require congressional approval, which he joked during his remarks was hard to come by."

        Bloomberg News (3/9, Runningen) reported, "Each of the technology hubs would focus on a specific manufacturing technology geared to the region, such as developing lightweight materials for use in next-generation automobiles, aircraft, ships and trains."

        Voice of America (3/9, Robinson) reported Obama said, "We have got to have this all across the country. I want everybody thinking about how are we making the best products, how we are harnessing the best ideas, and making sure they are located here in the United States. And sparking this network of innovation across the country it will create jobs and will keep America in the manufacturing game."

        Also covering the story are the Los Angeles Times (3/10, Hennessey), McClatchy (3/10, Clark), the National Journal (3/10, Quinton, Subscription Publication), The Hill (3/9, Sands), the Milwaukee Business Journal (3/9, Rovito, Subscription Publication) and other media sources.

Overcoming the manufacturing skills gap

An interesting post from Derek Singleton on the Software Advice website discussing the three ways to overcome the skills gap, which he suggests are:

• strengthen educational partnerships
• invest in in-house training
• energise the workforce of tomorrow

Much of what he discusses is valid to the contemporary manufacturing environment in Australia. One element that is crucial in Australia is the role of government. We need to secure and maintain government support for the contribution of manufacturing, particularly SMEs, to the economy.

Click here to read the full article

No-waste circular economy is good business – ask China

From The New Scientist...

Don't throw out that broken toaster: it's key to our prosperity. Redesigning the economy so that all waste is reused or recycled would be good for business, according to two new reports.

For centuries the global economy has been linear. Companies extract resources from the environment, turn them into products and sell them to consumers – who eventually throw them out. As a result we are burning through Earth's natural resources and wasting useful materials.

But it doesn't have to be that way, says Felix Preston of think tank Chatham House in London. Instead, we could have a circular economy in which waste from one product is used in another.

Click here to read the full article.

Forget onshoring (reshoring) - what about MIMOC?

Do you ever a read a post and say to yourself "Man, this person is smart!". I've only read a few posts by AJ Sweatt and all fill me with excitement and envy. In a post dated October 2011 (nothing like keeping my finger on the pulse), he discusses reshoring and how the concept is important in redressing the balance of unneccesarily lost jobs overseas, but ultimately not sustainable.

Instead he suggests MIMOC - Manufacturing in Markets of Consumption, which apparently has been around for years. Known by Coca-Cola and many well-known auto manufacturers, the process specifically locates production locally for exposure to local markets. Makes sense.

The benefits of MIMOC are:

• it encourages exports
• it’s sustainable
• it simplifies politics & public opinion
• it creates jobs
• it creates, nurtures & moderates the global manufacturing network

I also like his point that MIMOC gives corporations an "out". Corporations can relocate operations based on where the local market is situated. No need to admit failure over an unsuccessful offshoring initiative.

Click here to read the full article. 

How to save manufacturing - well, some good starting points anyway

Following is an article in last week's Huffington Post. It's a little misdirected in its approach, implying that the manufacturing industry is faced with challenges caused by the recent onset of technological advances and globalisation. In fact, the manufacturing industry has arguably had ot be the most adaptive being particularly more sensitive to the booms and busts of past decades. Fuel prices go up, manufacturing has to adapt. Mining booms occur, manufacturing has to cope with the talent drain. GFCs, natural disasters etc have made manufacturing an industry chameleon that has had to adapt or die. The industry's resilience is not to be underestimated and most companies have had to inmplement, in some form, the 'next generation' points made by the author, which are:

• anticipate customer needs
• innovate around the core
• focus on collaboration
• pre-solve problems
• inform and communicate
• do continuous de-commoditisation

This is a good start for sure and more details abouts each of these points is provided in the link below, however SME manufacturers need more guidance.

Being time and resource poor, they need (external) assistance to validate their strategies. This where government should play a role as funding the enablers for a more globally competitive and sustanaible industry.

Click here to read the full article. 

Mature aged workers - an unrealised resource?

An article from the AMMA - the Australian Mines and Metals Association ran a discussion on mature age workers on LinkedIn. Our MSQ General Manager Erik Salonen replied with the following points, which were then used on the AMMA site. Here is the article.

Last week The Australian ran an article about the economic benefits of having older people in the workforce. While Australia struggles with a skills shortage, many other countries are tapping into a particularly rich vein of talent, the over 50 market.

Erik Salonen, General Manager at Manufacturing Skills Queensland, wasn’t one bit surprised at the report. He believes mature aged workers play an important part of any organization, particularly because of the vast amount of intellectual property they take with them when they leave.

Flexible work options

Mr. Salonen advises a key method of attracting and retaining mature age workers is providing flexible work options to accommodate caring responsibilities, health issues or a desire for a different work/life balance. Mature age employees can often be encouraged to stay on when offered:

• phased retirement
• part-time work
• job sharing opportunities
• work from home arrangements

"In particular, phased retirement enables mature age employees to continue to participate in the workplace, allowing employers to retain employees - and their skills and knowledge - for longer than they would otherwise."

“Many options are available for phased retirement, depending on the needs of employees, as well as business and operational requirements.”

Options for Phased Retirement

Mr Salonen shares the following options employers can provide to mature age employees:

• Transition from full-time to part-time work in their current job
• Take alternative job opportunities on either a full-time or part-time basis
• ‘Retire’ from the organisation and contract back
• Work full-time with additional flexible leave and flexible hours entitlements

Business benefits of phased retirement

• Retention of skilled employees in the workforce for a longer period of time
• Preservation of organisational and/ or corporate knowledge
• Provision of a system for effective succession management
• Creation of a flexible and responsive workforce
• Increased return on investment in training and development

Help for mature age workers

Employers are being encouraged to hire and train older workers under a Department of Education, Employment and Workplace Relations (DEEWR) government scheme called Experience +. Over the next three years, 7500 workers aged 50 years and over with trade relevant skills but no formal qualifications will have the opportunity to have their skills assessed and formally recognised. Assistance is available for workers needing an apprenticeships or traineeships. Industries given priority include Construction, Manufacturing, Electricity, Gas, Water and Waste Services. These grants are also available for small business owners.

For more information, check out:

• Experience +
• More Help for Mature Age Workers

It’s all good news for older workers looking for jobs in mining, energy jobs or oil and gas jobs. As the global resource industry feels pressure to find skilled workers, the biggest source may well be the people who have powered the economy for the past 40 years.

What is your experience with mature age workers?

Click here to see the webpage or comment below.

Stemming the flow - the reluctance of youth to pursue STEM careers

A Reuters article recently points to an ASQ Survey results stating that youth in the US are reluctant to pursue careers in STEM (Science, Technology, Engineering and Math) for a number of reasons, perhaps the most disturbing of which is that too much work is involved.

There were 713 respondents surveyed from grades 6-12 who offered the following insights:

• STEM careers offer the most opportunities
• STEM degrees cost too much
• their grades aren't good enough
• too much work is involved
• teachers aren't preparing students well enough for STEM careers (with girls feeling underprepared x4)

I'm not sure if these results for US students translate to the rest of the world, but let us assume they do. So there is a major paradox present here. There is recognition of the opportunities offered by STEM-related careers, but (leaving cost aside) students feel underprepared, disinclined or insecure about pursuing these careers.

Of course, it is probable that a section of those surveyed have not been aligned to STEM careers no matter what the circumstance. However, what seems to be lacking is a passion and drive for STEM careers and visibility of a pathway towards that career.

Certainly from any engineering perspective, there are a number of programs on offer to ignite that passion. See the F1inSchools program that we have been specifically involved with, but also a list of engineering programs for schools is available at the Australian National Engineering Taskforce website.

Such programs ignite the interest, the passion and the drive for students to prepare themselves to take advantage of STEM opportunities.

Click here to read the results of the STEM survey.