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Location: What really matters to candidates? If you’re someone who spends a lot of time thinking about what job candidates might want, the following information might come as something of a surprise: most people don’t really consider work-related factors when deciding where they’re going to live. Among high-potential candidates, with 6-figure salaries, “distance from work” ranked fourth out of six factors when choosing where to live, with distance from family and the cost of living ranking much more highly nationally.

The desire to remain rooted to family and friends is strong: nationally, some 61% of people earning more than $100K would not move out of state for an additional $10K in pay—a stat that underlines challenges of recruiting top talent from outside of a local market. Further complicating those challenges is that more experienced candidates tend to also be more resistant to the idea of relocation. Just 40 percent of people with less than five years of experience would not move for their dream job—significantly lower than the rates for people with between 5 and 15 years of experience.

Survey Methodology Since its launch in May 2018, Ladders’ Third Page survey platform has collected more than 6.5 million answers to questions from more than 56,000 members. The breakdown of respondents by function is as follows: Accounting & Finance: 9.6% Engineering & Construction: 2.8% Healthcare: 4.8% HR & Legal: 9.0% Marketing, Media & Design: 10.5% Operations & General Management: 22.8% Project Management: 5.1% Sales & Business Development: 20.6% Science & Education: 2.0% Technology: 13.0% For this report, responses were limited to $100K+ professionals located in the top 75 US markets by headcount.

US Manufacturing Growing Again…

U.S. manufacturing is the transformation of raw materials into new products. The process is mechanical, physical, or chemical. The raw materials include commodities or components. It is the second stage of the supply chain.  

Manufacturing businesses include plants, factories, and mills. They make their products with power-driven machines and equipment. It also includes small and home-based businesses that make things by hand. They include bakeries, candy stores, and custom tailors. 

Manufacturing also includes companies that contract with others to make the goods. In the United States, it doesn’t include housing and commercial construction. 

U.S. manufacturing is the largest in the world. It produces 18.2 percent of the world’s goods. That’s more than the entire economic output of Canada, Korea, or Mexico. But America’s leadership position is threatened by high operating costs. That gives a competitive edge to other countries. First among these is China. Its low-cost factories manufacture 17.6 percent of the world’s products.

Importance of Manufacturing in the U.S. Economy

Manufacturing is an essential component of gross domestic product. In 2018, it was $2.33 trillion. That drove 11.6 percent of U.S. economic output, according to the Bureau of Economic Analysis. Manufactured goods comprise half of U.S. exports.

Manufacturing adds a lot of value to the power of the U.S. economy. Every dollar spent in manufacturing adds $1.89 in business growth in other supporting sectors, according to the National Association of Manufacturers. These include retailing, transportation, and business services.

The United States has 12.75 million manufacturing jobs, according to the Bureau of Labor Statistics. That employs 8.5 percent of the workforce. These jobs pay 12 percent more than all others. In 2017, they earned an average of $84,832 per worker. This includes benefits. That’s $40.79 per hour.

Yet, 89 percent of manufacturers are leaving jobs unfilled. They can’t find qualified applicants, according to a 2018 Deloitte Institute report. The skills gap could leave 2.4 million vacant between 2018 and 2028. That could cost the industry $454 billion in 2028.

Trends

Manufacturing used to be a larger component of the U.S. economy. In 1970, it was 24.3 percent of GDP, double what it was in 2018.

America’s edge as the world’s leading manufacturer has also slipped. In 1970, China was the world’s fifth largest manufacturer. It took the No.1 spot in 2010, replacing the United States. Japan is third, at 10 percent. It’s followed by Germany at 7 percent, South Korea at 4 percent, and India at 3 percent. China produces 20 percent of the world’s goods, according to a Brookings Institute report. The United States produces 18 percent, and Japan produces 10 percent.

Reasons for Decline

The biggest reason is a shift to a service-based economy. Banking and other financial services began growing after 1999 when Congress repealed the Glass-Steagall Act.

The health care sector has also grown. It’s grown from 5 percent of the economy in 1960 to 18 percent in 2015.  In 1965, the government began subsidizing hospital costs when it created Medicare and Medicaid. It was one reason for rising health care costs. Health care services also responded to the aging baby boomer generation.

The switch to a service sector economy happened to other developed countries for the same reasons. But the United States manufacturing industry has lost global market share. Less developed countries, such as China, have increased their manufacturing capabilities.

Another contributor is the high U.S. standard of living compared to other countries. That makes labor costs much greater than in other nations. U.S. manufacturers cannot compete with low-cost products made by lower-paid workers in China, Asia, and Mexico. For example, a unionized auto worker in Detroit makes $58 an hour, including wages and benefits. That compares to $8 an hour for a Mexican autoworker.

But many federal policies also decrease U.S. competitiveness. That makes U.S. manufacturing costs 20 percent higher, according to the Manufacturing Institute. That’s even when labor costs aren’t included. First, complying with regulations costs $180.5 billion, about 11 percent of total sales. 

Second, the corporate tax rate was 35 percent. That’s higher than France at 34.1 percent and twice as much as China at 16.6 percent. It’s triple that of Taiwan at 10.1 percent with the lowest tax rate. In 2018, it drops to 21 percent, thanks to President Trump’s tax plan.

Third, other countries do better at negotiating bilateral free trade agreements. They lower tariffs and export fees. That lowers their cost of manufacturing because import prices of supplies are less expensive.

Outlook

Manufacturing is forecast to increase faster than the general economy. According to the MAPI Foundation, production will grow 2.8 percent from 2018 to 2021. It will be boosted by the tax cuts but could be hurt by Trump’s trade war. MAPI is an acronym for the Manufacturers Alliance for Productivity and Innovation.

It also depends on the strength of the U.S. dollar. If the dollar declines, that’s good for exporters. But the Federal Reserve is raising interest rates. That makes the dollar stronger.

Underlying these short-term developments are five new forces that are driving manufacturing’s growth. First is increased productivity. Partly that is due to new technologies, such as 3-D printing. Second is the growing domestic production of domestic natural gas and shale oil. Low gas prices attracted many industries that use it for manufacturing of other products. Both productivity gains and low oil prices reduce U.S. production costs.

The third reason is rising wages in emerging markets. As standards of living improve throughout the world, local workers demand higher incomes. Some call centers are leaving India for Nebraska because wages have become comparable and service is better. Call center outsourcing used to be the norm. But companies are beginning to source again from home. The costs for call centers in some parts of the United States have become competitive.

Fourth, companies realize the need to protect homegrown intellectual property. Some countries, such as China, allow their factories to copy U.S. manufacturing processes and designs. They use this knowledge to make “knock-offs” that they can sell for less. That’s one reason some manufacturers prefer to remain in America.

Last, and probably least, is the awareness among consumers that “Made in America” means jobs for Americans. On the other hand, U.S. shoppers are very interested in getting the best value for their dollar. They are not willing to pay a lot more for that American label. 

According to a survey from AlixPartners, 37 percent of manufacturers would prefer to locate in the United States. That’s equal to those that would prefer Mexico. That figure is also better than that of 2011 when only 19 percent would choose the United States. It’s easier to reach the huge North American market if the company is in the United States.

Unfortunately, growth won’t translate into an increase in U.S. manufacturing jobs. The reason lies in productivity improvements. These include the increased use of computers, robotics, and other efficient processes. The new jobs that are created require sophisticated computer-related skills to manage the robots. 

Trump’s Impact on Manufacturing

President Donald Trump promised to bring jobs back to manufacturing. He delivered on his promised tax cut for U.S. manufacturers and higher tariffs for those who build overseas. He must make these incentives equal to the additional cost of U.S. manufacturing. Otherwise, it won’t be enough to bring back jobs. Trump’s job creation plan aims to create 25 million jobs in the next 10 years.

The National Association of Manufacturers applauds Trump’s plan to reduce taxes and regulations. It also supports his strategy to upgrade the quality of infrastructure. But it would prefer he create more free trade agreements. Instead, he has withdrawn from the Trans-Pacific Partnership and has renegotiated the North American Free Trade Agreement. NAM also recommends the improvement of the science, technology, engineering, and math skills of America’s labor force. 

Trump’s trade war has hurt some manufacturers. United Technologies said it would lose $200 billion, while Ford said its cost was $1 billion. Mid-Continent Nail in Missouri announced layoffs because steel prices became too high for them to remain profitable. Harley-Davidson announced it would move some production abroad to avoid retaliatory EU tariffs.

Unemployment Lowest in Almost 50 Years

The U.S. jobless rate dropped to 3.7 percent in September — the lowest since 1969, though the economy added a lower-than-expected 134,000 jobs, the Bureau of Labor Statistics said. The jobless rate fell from August’s 3.9 percent.

Average earnings rose 8 cents, to $27.24 per hour last month. But wage growth slowed, with average hourly earnings up 2.8 percent from a year earlier, compared with a 2.9 percent increase in August.

A True Leader Must Admit When They Make a Mistake

Bob expected to get fired. His new boss Jim called Bob into his office, and asked to close the door.

2 days prior, Bob made a huge mistake and unplugged a wrong server from the network. A major outage resulted.

Bob walked into Jim’s office fearing the worst.

He started saying “It is my fault..” but Jim interrupted him and said that the fault was his, Jim’s.

Jim explained:

“As your manager, I should have made sure that cables were clearly labelled so such a mistake would be difficult to make. I also should have made sure that no one server’s problem causes a major outage.”

Together the two of them labelled every cable and server in the data center. They also reconfigured the system to gain resiliency.

To be leaders, first and foremost, we have to act with integrity and to take responsibility.

Always remember:

Forget the mistake, remember the lesson.

 

Toxic People

Toxic people will do everything in their power to make it look like you are in the wrong every time.

1. Distance yourself from them

2. Don’t let them get to you

3. If your boss is one of them, answer the recruiter call Life is too short to deal with that kind of crap.

You work hard, you know your stuff, you are loyal to those who deserve it.

Good Employee Quits? Do These 8 Things…

Good employee quits. Do these 8 things

1. Wish them all the best

2. Offer to give them great recommendations

3. Tell them how valuable they have been to the team, and how much you appreciate them

4. Tell them you will be happy to hire them back should they want to

5. Ask them if they have any advice for you and for your management style

6. Look in the mirror as to why they resigned. Perhaps you did not give them room to grow, support when they needed you, appreciation when it was due, freedom to choose best solutions, time to listen to them

7. Continue to treat them as a highly valued employee. Just because someone found a better opportunity does not mean they are a traitor.

8. Be happy for them, they deserve it.

More Women Return to the Workplace

The percentage of women participating in the U.S. labor force has been in decline for much of the past two decades. Even as participation soared in other developed economies, a lack of “good-paying, middle-skilled jobs,” together with limited or expensive child care, appeared to hold back American women. But a resurgent economy is helping to reverse the trend:

•  The percentage of U.S. women aged 25 to 54 in the labor force has inched up from 73.3% percent three years ago to 75.2% today.

•  At the same time, the demographic’s rate of unemployment has plummeted to its lowest level since the 1950s.

Habits of Happy People

Habits of happy people
1. Don’t show off
2. Talk less
3. Learn daily
4. Help less fortunate
5. Laugh daily
6. Ignore nonsense
7. No entitlement
…By Warren Buffet

26 habits of exceptionally successful people, according to a journalist who studied 500 millionaires

1. They have a definite purpose.

“The majority of people in this world could be very successful if they would just make up their minds how much success they want and on what terms they want to evaluate success,” Hill writes.

2. They know their motives.

Becoming a consultant at a big firm after two years at a top business school is a great goal for some people, but it means nearly nothing if the motive is simply that it’s a well-tread path. The most successful people are always aware of why they have their goals and are driven by this passion.

3. They surround themselves with people smarter than them.

It’s common to find huge egos among the power players of any industry, but they also know the extent of their capabilities and seek out people whose talents can complement theirs.

4. They are self-reliant.

A talented network and support group are necessary, but the most successful people also have a degree of self-reliance that allows them to pursue their definite purpose regardless of circumstances.

5. They have self-control.

Exceptionally successful people know how to control their emotions, not letting disappointments crush their spirits or achievements lead to cockiness. They also know that an impulsive decision can destroy years’ worth of work.

6. They are persistent.

Hill says it’s necessary to not only withstand difficulty but to use your setbacks as motivation to try even harder.

“Think and Grow Rich” author Napoleon Hill (1883-1970)

7. They find productive uses for their creativity.

People make an impact on the world by finding ways to direct their imagination to “definite and constructive ends,” Hill says.

8. They are decisive.

“If you do not have the habit of making clear-cut decisions promptly and definitely, you’re loafing on the job, procrastinating, and destroying this very thing called personal initiative,” Hill says.

9. They gather information before reaching conclusions.

On that note, Hill adds that it’s important not to make decisions or form opinions about a person or topic on a whim, ignoring relevant data.

10. They can control their enthusiasm.

All successful people are salesmen of a sort, Hill says. That’s to say they have a genuine passion for whatever drives them and are able to communicate this enthusiasm to others without overdoing it.

11. They are open minded.

“Unless you form the habit of maintaining an open mind on all subjects — toward all people at all times — you’ll never be a great thinker, you’ll never have a great, magnetic personality, and you certainly will never be very well liked,” Hill says.

12. They always do more than expected.

If you aspire to truly excel, you will do more than what you are paid to do.

13. They are diplomatic.

Hill says one of the things he found most remarkable about Andrew Carnegie was that he never saw him give a command, yet he still had employees who would go out of their way to help him. It was, Hill explains, because he was tactful with everyone he spoke with, always maintaining a polite and cool air about him. In “Think and Grow Rich,” Hill says there’s a reason despots are so often violently overthrown; it pays to be graceful.

14. They listen more than they speak.

The most successful people don’t use conversations to fuel their self-worth, but rather as a way of learning from another person.

15. They pay attention to details.

“A good executive, a good leader, or a good anything is a person who observes all the things that are happening around him, the good things and the bad things, the positives and the negatives,” Hill says. “He doesn’t just notice those things that interest him, he notices everything that may interest him or affect his interests.”

16. They can take criticism.

Hill says if you aspire to do something noteworthy in your field, you will draw criticism regardless of who you are or how well you do your job. Exceptionally successful people aren’t disturbed by critical remarks, but they do pay attention to ones that have merit and take lessons from them.

17. They are loyal.

“If you don’t have loyalty to the people that have a right to your loyalty, you don’t have anything,” Hill writes. “It doesn’t matter how brilliant, or sharp, or smart, or how well educated you are. In fact, the smarter you are, the more dangerous you may be if you can’t be loyal to the people who have a right to your loyalty.”

18. They are incredibly charismatic.

Hill says it’s a mistake to think you’re either born with an attractive personality or you’re not. It ultimately comes down to adopting the simple practices of listening closely to whoever you’re speaking with and being sympathetic to their perspectives.

“Your Right to be Rich” is a new collection of some of Hill’s lectures.
Amazon

19. They are focused.

The best leaders focus their attention and energy on a single project at a time. “Concentrated effort gives one power that can be attained in no other way,” Carnegie told Hill.

20. They learn from their mistakes.

A key difference between those who achieve their purpose and those who fall short is the perception of mistakes as worthwhile educational experiences rather than humiliating failures.

21. They accept responsibility for their subordinates’ failures.

Carnegie taught Hill that real leaders privately address their subordinates’ mistakes with them, but take the blame publicly without dissent. When you lead a group of people, they become reflections of yourself.

22. They praise the achievements of others.

Those who achieve a high level of success are comfortable with themselves and do not seek praise from others. They do, however, build strong relationships and inspire their team members by recognizing the good work of others.

23. They treat others the way they’d like to be treated.

Hill adopted Carnegie’s belief that business should be done according to the Golden Rule. “When you make any decision, or engage in any transaction involving the other fellow, put yourself in the other fellow’s position before you make a final decision,” Hill says.

24. They maintain a positive attitude.

It’s often easier to give into cynicism, but those who choose to be positive set themselves up for success and have better reputations.

25. They don’t make excuses.

“Success requires no explanations; failure permits no alibis,” Hill says.

26. They focus on what they want.

“Instead of thinking about the things you don’t want, the things you fear, the things you distrust, the things you dislike, think about all the things you like, all the things you want, and all the things you’re going to become determined to get,” Hill writes.

(Richard Feloni, Business Insider)

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