Costs in Machining & Fabrication Shops

[J Tiers]

So what magically happened to all the unskilled workers? Suddenly they became skilled? I don't buy it.

They found other jibs that paid more, even for unskilled workers. After a bit of job experience, they ARE skilled, in some work, anyhow. Most employers are so desperate that they will train people. Used to be they could be choosy, but not so much anymore.

Very few people have a life goal of taking hamburger orders from rude people. Given the choice, they work somewhere else. Warehouse work does not demand high skills, and it pays better. With the shortage of workers, some holdout low pay employers are getting left out, and whining.

In the last couple years, a lot of older people just got tired of it and retired. I know a few. THERE are many of your missing workers. Plus, have you noticed that there are a LOT more Amazon trucks out there? Someone is driving them, and that is a new employer, "stealing workers" from other employers.

It only takes a few percent of the workforce to be missing, in order to make a worker shortage. There is usually about a 4% unemployment rate, from folks quitting and taking new jobs, etc. If you cut that to 2% or 1%, there is a sudden shortage.

With a seller's market for workers, nobody is taking crap wages, or jobs at places that have a bad rep, etc. Why should they? They don't have to, they can get work at better pay and less BS. If they find the BS is still there, they can quit and find another job.

[CalM]

Materials cost X 2 plus labor and overhead.

Materials are dear these days, labor also. War issue goods are coming...

[wierdscience]

So what magically happened to all the unskilled workers? Suddenly they became skilled? I don't buy it.

Most are hiding around the corner smoking weed and watching TikTok all day until they get fired. And I'm not joking,it's a huge problem,I got one at work now that I have to scream at,not because he can't physically hear, but because he's got his damn ear buds in all day and can't hear.

[alanganes]

In the last couple years, a lot of older people just got tired of it and retired. I know a few. THERE are many of your missing workers. Plus, have you noticed that there are a LOT more Amazon trucks out there? Someone is driving them, and that is a new employer, "stealing workers" from other employers.

I have no actual data, but my guess is that this is a pretty significant factor. The place I work is seeing a rash of this lately and in the upcoming year or two. I actually left this company after working here for 14 years. Worked at another place for near 10 years and then was made a very attractive offer to return about a year ago, in order to pick up for a couple of soon to be retired coworkers who are just a few years older than I am. A lot of very specific and hard earned skills will be marching out the door in the next year or so.

As for workers trying to move up to better jobs and employers being hard pressed to find skilled folks, I read the other day that Walmart is offering paid training to some warehouse and other employees to be trained as truck drivers. They are apparently one of few retail places that maintain their own truck fleet and hiring drivers has become a problem. Hence their offer to get people trained and licensed. Pay range for a Walmart over the road driver is something like 89-110K.

[J Tiers]

..................................... Pay range for a Walmart over the road driver is something like 89-110K.

That is more than quite a few employers want to pay for experienced engineers.......at least certainly more than they did in 2016 or so.

[RB211]

People are leaving my company in large numbers for United, American, Delta, Fed Ex, UPS, and a few others. If I didn't despise the process and could stomach commuting, I'd might join them, but I really didn't like that lifestyle when I did it, why do it again?

[reggie_obe]

People are leaving my company in large numbers for United, American, Delta, Fed Ex, UPS, and a few others. If I didn't despise the process and could stomach commuting, I'd might join them, but I really didn't like that lifestyle when I did it, why do it again?

Unless you're vested, you lose the company match in your retirement plan when you leave. Two steps forward, one step back.

[J Tiers]

Unless you're vested, you lose the company match in your retirement plan when you leave. Two steps forward, one step back.

REALLY GOOD COMMENT!

It's something many people forget. That can put a dent in your retirement funds, if you don't keep an eye on it. It's "free money", and it's very rarely a good idea to "leave it on the table". Whatever you leave does not grow over the years.

At a previous employer, where I was for 28 years, many ignored the 401k plan. I made sure I contributed, and got the company match. I can say that the result was a "very significant" amount of money, that grew well after everyone was let go in a merger deal and I had moved on.

Another thing about 401k plans that few know about, is that they are generally shielded from lawsuits, etc. it's money that cannot be taken away easily.

In the US, I believe "cliff" type vesting is no longer allowed for most plans. They have to have progressive vesting, instead of nothing until some number of years of employment, often 5 or 7 years, is reached. But it still can be a chunk if you leave during the vesting period. (My wife was a pension actuary for many years, and a financial adviser after that, which is how I know this stuff).

[alanganes]

That is more than quite a few employers want to pay for experienced engineers.......at least certainly more than they did in 2016 or so.

Yeah, it's pretty competitive with a lot of engineer salaries even here in the northeast where salaries are pretty high due to the cost of living.

https://www.cnn.com/2022/04/07/busin...pay/index.html