DJ Products, Inc.

President-elect Obama yesterday asked President Bush to throw a lifeline to the battered U.S. auto industry. House Speaker Nancy Pelosi also called for “emergency and limited financial assistance” for auto makers and suppliers, introducing legislation to make the big three automakers eligible for help under the $700 billion Congressional bailout passed last month. The move followed disastrous third-quarter losses reported by Detroit’s Big Three: General Motors, Ford and Chrysler.

Prior to its election break, Congress passed legislation providing $25 billion in government-backed loans to automakers to help them retool for the production of more fuel-efficient vehicles. Since then, the Big Three and United Autoworkers officials have asked for an additional $25 billion to keep the automakers afloat and a further $25 billion to fund future healthcare payments to 780,000 retirees and their dependents. Legislation currently being written in the House and Senate is expected to severely limit executive compensation and demand vigorous federal review in exchange for bailout funds.

Critics say Detroit is suffering from decades of short-sightedness and poor decision-making. In iterating the missteps that have led automakers to the edge of bankruptcy, critics cite the auto industry’s failure to invest in new products, failure to aggressively pursue fuel-efficient cars, failure to meet the competitive challenge of Asian imports and failure to take on growing union demands.

“There’s been 30 years of denial,” said Noel Tichy, a University of Michigan business professor, author and auto industry consultant. “They did not make themselves competitive. They didn’t deal with the union issues, the cost structures long ago, everything that makes a successful company.”

Tichy says the auto industry’s problems started in 1980s when Toyota and Honda mastered the production of reliable, fuel-efficient cars. Detroit, unfortunately, failed to see this as an omen of future trends. Cheap gas and a strong U.S. economy made Detroit blasé about the public’s fledgling interest in ecology and “green” lifestyles. Driven by high profits and consumer demand, the Big Three automakers continued to invest in the traditional “bigger is better” model, flooding the American market with luxury vans, trucks, SUVs and the ultimate example of overindulgence, the Hummer.

By the 1990s, Detroit had effectively ceded the small and midsize car markets to Toyota and Honda. When fears of global warming, pollution and high oil prices began to gain affect public opinion and buying habits after the millennium, U.S. automakers were caught unprepared. Skyrocketing fuel prices over the past year sent sales plummeting and sealed their fate. Coupled with a recessive economy and tight credit, failure to address future trends has driven the U.S. auto industry to the brink of extinction.

Next time: Hope for the future: Changes that will redefine the U.S. auto industry

In the wake of Barack Obama’s election, U.S. industry should brace itself for a re-emphasis on ergonomics in the workplace. We are about to enter the era of “Ergobamanomics,” predicts senior editor Austin Weber, coining the phrase in his November 6 post on AssemblyBlog, a function of Assembly magazine which serves the manufacturing product assembly market.

“We’re going to have a government that makes sure workers aren’t put at unnecessary risk,” Obama said while stumping on the campaign trail this summer. It seems likely that increased federal emphasis on the development and implementation of ergonomics standards and legislation will be part of the Obama administration’s plan to revitalize and improve U.S. industry. In numerous studies, ergonomics has been proven to significantly reduce workplace injuries and improve worker health and safety.

While workplace health and safety policy changes may not be immediate — president-elect Obama will, after all, have his hands full with more pressing problems in the first few months of his presidency — a solid Democratic majority in Congress makes it likely that tighter ergonomic standards will see quick passage in the near future. Some industry experts believe that a return to the OSHA standards of the Clinton administration could easily be enacted by Congress within the first six months of the new Obama administration.

The sweeping OSHA ergonomics changes ushered in by the Clinton administration in 2000 were quickly repealed by Republicans when George Bush took office in 2001. OSHA’s scaled-back ergonomics plan of 2002 revised the controversial Clinton-era regulations to focus primarily on the reduction of repetitive stress injuries. During his 2004 Senate campaign, Obama said he supported reviving the more comprehensive Clinton OSHA ergonomic standards. During his presidential campaign, Obama has repeatedly promised to renew the government’s commitment to improving the health and safety of all American workers.

Critics fear that a return to Clinton-era OSHA ergonomics standards would place an additional onerous burden on struggling American businesses. Tighter ergonomics standards could necessitate retooling and restructuring of production tasks. Training programs would have to be developed and executed. Increased record-keeping of repetitive stress and musculoskeletal complaints and injuries would also add to time-consuming paperwork and reporting demands, critics charge.

Despite industry fears, ergonomically-designed equipment and work procedures have the proven capacity to increase production efficiency and substantially cut injury rates. Results are both immediate and long-term, resulting in instantaneous and sustained reductions in medical, insurance, workers compensation and lost work hours while reaping considerable gains in worker satisfaction, production efficiency and improved product quality and customer service.

For more information on how ergonomically-designed equipment can improve your business, talk to the experts at DJ Products.Â

By the end of this decade — that’s only two short years away – industry experts are predicting a 50% shortfall of material handling workers. Worker shortages are already being felt in manufacturing, logistics, transportation, warehousing and fulfillment venues; and it’s only going to get worse (see our November 3 post). The Material Handling Industry of America (MHIA) and other industry leaders are spearheading initiatives to build awareness of material handling job opportunities in America’s high schools and colleges, but they can’t do it alone. Each of us must work to change public opinion and entice young people into our industry if we are to survive.

In building awareness of job opportunity in the material handling industry, we will need to update our image with school counselors, students and the public at large. Our efforts to attract new workers are burdened by the outdated perception of material handling workers as unskilled manual laborers lagging at the bottom of the payment and benefit scale. Times have changed. Material handling jobs offer good pay, good benefits and a growth industry, an appealing triumvirate, particularly during the current economic downturn that is forcing many industries to lay off workers.

Of added benefit is the ability of material handling to offer jobs across the educational spectrum. While college grads and MBAs increasingly populate our industry, there is still great appreciation for the individual who moves right into the workforce out of high school, determined to work hard and make something of his life. It’s how many of today’s leaders in the material handling industry got their start, and we haven’t forgotten. The increasing emphasis on automation and system integration in our industry should appeal to the computer-savvy teens and 20-somethings poised to enter the workforce. Material handling jobs can offer young people the opportunity to reap immediate reward from their prodigious self-taught computer skills. And many employers will help workers increase and improve both their technical and business skills through educational assistance programs. The “you learn while you earn” approach can be particularly appealing during a tough economy.

So how can you help get the word out? Visit guidance counselors at local high schools, tech schools and community colleges. Let them know what material handling has to offer their students and leave some brochures they can pass out to students. Volunteer to speak at career day programs. This is a great opportunity to talk directly to students. Invite vocational high school or community college classes on a tour of your facilities and explain job opportunities. Offer summer internships or initiate a co-op (work/study) program through local high schools, community colleges or universities.  This is time-honored way to give interested students a taste of the real work world, and many co-op students become full-time employees.

Attracting future workers to the material handling industry is everyone’s job. Get out there in your community and start spreading the word. Our future depends on it.