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Hello everyone, in the next 10 to 15 years, a significant number of baby boomers will be retiring from the industry, taking with them a wealth of experience, knowledge, and skills. This departure will impact the overall level of expertise within companies, especially as the number of entry-level engineers surpasses that of experienced professionals. It's crucial for companies to address this impending talent gap before it becomes a problem. I have been researching this topic and am eager to learn about solutions being implemented worldwide. Your feedback is valuable and appreciated.
It appears that the company's recent decisions are inconsistent and do not effectively address the issue at hand. There is a noticeable trend of baby boomers being reassigned, possibly promoted, to roles that appear to sideline them and allow younger individuals to take on Supervision and Engineering roles.
We conducted a survey of more than 800 companies regarding the impending skills shortage, and I am currently working on producing detailed reports based on the findings. One of these reports, spearheaded by Howard Penrose, involves extensive research that will be published in August of this year. Additionally, I am crafting a unique report that provides a summary and analysis of the data collected by Reliabilityweb.com, along with insights from various other sources. The full report will be released in October, accompanied by a keynote presentation at IVARA's User Summit. Here are two statistics that may interest you: - When asked about the extent of procedure-based maintenance within their maintenance workforce, respondents reported the following: - 9% documented 100% of their maintenance procedures - 35% documented over 50% of their maintenance procedures - 48% documented less than 50% of their maintenance procedures - 8% did not have any maintenance procedures documented *Please note that the question did not assess the quality or value of these documented procedures.* - When asked about knowledge capture within their maintenance workforce, respondents provided the following responses: - 9% had a completed plan for knowledge capture - 11% had a budget and plan for knowledge capture - 21% were considering a plan for knowledge capture - 56% did not have a plan for knowledge capture - 3% provided an "other" response Our research suggests that a potential brain drain may begin within the next five years at some companies, underscoring the urgency to capture valuable maintenance knowledge and experience. We extend our gratitude to the maintenance and reliability professionals who participated in this project, and anticipate sending you an email with advance download links for the report. Stay tuned for further updates. Terry O.
One major challenge in the maintenance industry is attracting younger generations, such as Gen Y and Gen X, to fill positions. Many see the appeal of pursuing certifications from tech giants like Microsoft or Cisco after reading about the challenges faced by maintenance professionals. Without offering similar growth opportunities and advancements within the maintenance sector, companies will struggle to recruit skilled individuals. Simply offering trade schools, skills training programs, and apprenticeships may not be enough to address this issue. It is important for management to recognize the value of proper asset management, as it ultimately benefits them the most. By investing in their assets and those who maintain them, companies can ensure longevity and success in their operations. Terry O.
Terry, I am incredibly intrigued by this report. Could you please share its source with me? In our experience working with clients, we have encountered two crucial issues in handling this matter. The first issue goes beyond mere skills and delves into the realm of knowledge, particularly in areas like contingency response, project management for rare projects, and operation of complex machinery (areas that may not be covered in standard operating procedures). For example, in a case from a water company in Southern Europe, a worker had been quietly taking the initiative to clean a filter daily for 15 years without anyone realizing. When he fell ill, the consequences were costly in terms of fines and damage to the company's reputation. The second challenge lies in how this knowledge is preserved and utilized. It is not enough to simply document information for others to reference, as people may not always read these documents. The key is to not only capture knowledge but also codify it and enhance its effectiveness. This, I believe, is the key challenge in modern asset management practices. I am eager to learn about the innovative solutions being implemented by companies. Might this information be included in the report you mentioned?
Terry, I wholeheartedly agree with the essence of your statement below, which emphasizes the importance of proper asset management for maximum benefits. This debate has been ongoing for at least 5 years now. It is crucial to take care of your assets as they will reciprocate the care provided. Similarly, valuing and supporting the people responsible for managing your assets will result in mutual care and success. Recent legislative changes in Canada and the UK, particularly in areas like corporate responsibility, have brought attention to this issue. The dynamics of asset ownership have seen a shift towards outsourcing management and operations, leading to a disconnect from those directly managing the assets. This has sparked resistance, as seen in the recent trend of insourcing maintenance contracts by organizations like Network Rail in the UK. However, economic incentives often drive wholesale outsourcing, contributing to a transient and unstable workforce. While addressing asset owners is crucial, it is important to acknowledge the challenges faced by those responsible for maintaining and managing the assets. The outsourcing of engineering and other functions to countries with lower labor costs, such as the Philippines, China, and India, further complicates the situation, with varying values placed on work and worker efforts. This presents a notable dilemma in the current landscape.
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The data I shared is from a study that I conducted with over 800 maintenance and reliability professionals from Reliabilityweb.com. Along with Howard Penrose, we are collaborating on a workforce report set to be released in August. Additionally, I am preparing a high-level summary for publication in October. This is an exciting period for maintenance and reliability professionals as we navigate through current challenges and advancements in the industry. Terry O.
The decline in experienced maintenance staff is a prevalent issue, particularly in the Predictive Maintenance (PdM) industry. While our management has plans in place for succession among supervisors and managers, I have noticed a lack of attention to the aging PdM staff. It seems easier to train or hire a maintenance mechanic or engineer than to find an experienced Vibration Analyst or PdM expert. This raises concerns about the future of the PdM field and the need for proactive measures to address the skills gap.
It typically takes a year for an analyst to learn the ins and outs of their technology and three to five years to master it. Surprisingly, many companies are not addressing the issue of retirement and aging in technical trades like vibration analysis, infrared testing, and motor diagnostics. This lack of attention can be attributed to various factors such as managers not fully grasping the importance of these skills, communication challenges between tradespeople and management, unrealistic expectations of instant expertise from training programs, and the misconception that maintenance personnel can be easily replaced without affecting reliability. Based on my past research and field experience, it can take anywhere from 12 to 24 months to notice the negative effects of cutting back on planned maintenance programs or skilled personnel. In an environment where managers have short tenures and focus on short-term goals, the temptation to defer maintenance activities or reduce skilled labor can seem logical when immediate consequences are not apparent. I recently collaborated on a study named "Skilled Trades in the 21st Century," which will be released in August 2006. This research, part of a larger project on Maintenance and Management Communication, aims to shed light on the challenges faced by the R&M industry. The project, including its various parts, is a volunteer-driven initiative with no influence from special interest groups. This was crucial as we discovered many workforce studies that were skewed or misrepresented to align with the authors' agendas. Regards, Howard
A recent report by NPR revealed a growing trend among companies of transitioning from traditional pensions to self-directed 401K or IRA plans in order to cut costs. Unfortunately, many individuals struggle to save adequately for retirement by the age of 62. Interestingly, the same companies benefitting from these pension changes may face challenges of an aging workforce unable to afford retirement. Despite age discrimination laws in place, some speculate that corporate interests in cost-saving could inadvertently lead to an increase in experienced workers delaying retirement. This unique situation may address concerns about a future shortage of skilled employees. Terry O.
Numerous employees at my company are eagerly anticipating a company-sponsored medical insurance plan for retired employees.
Terry, I find your perspective on the topic quite intriguing. While I may not be familiar with retirement trends in the USA, here in the United Kingdom, there are discussions about increasing the retirement age in order to address the growing number of retirees.
It may be considered inappropriate not to refer to IRA's as Individual Retirement Accounts. - Terry O Improved and SEO-friendly Text: Not labeling IRA's as Individual Retirement Accounts could be viewed as politically incorrect. - Terry O
Terry, I've just realized something you mentioned earlier about mandatory retirement ages in the UK, Europe, and Australia. These countries have set retirement ages beyond which employees cannot continue working. In the UK, the retirement age is currently 60, although there have been recent changes for public sector employees that I'm not fully informed about. There is a common belief in these countries that working until old age is not ideal for various reasons. With increasing life expectancy and better health, it seems outdated to keep the retirement age so low. (Despite the challenges of relying solely on government pension schemes)
Will Mandatory Retirement Be in My Future? As I celebrate my birthday on 01MARCH, I can't help but think about turning 60 in the years to come. It's a bittersweet thought - knowing that my employer will likely commend me on February 28th for a job well done, only to inform me the next day that my time with the company is up because of my age. Thankfully, I have 19 years to prepare for that possibility. I find solace in the fact that my place of work is in Puerto Rico, and not in the UK where the company is headquartered.
I have been closely following the discussion on the shortage of skilled workers in debt and the potential consequences, which sparked a debate on how to address this issue. Daryl's question about what steps companies are taking to avoid future problems has not been fully addressed yet. Instead of relying on traditional methods, I took a different approach by creating Problem x Cause tables for various types of equipment. This ongoing project has been well-received by our maintenance team and equipment owners, who have provided valuable feedback based on their past experiences. The automotive module has been particularly popular, prompting me to update and improve the tables for better efficiency. By streamlining this process, I have been able to facilitate better communication between operations and maintenance teams, leading to more productive problem-solving discussions. Overall, this project was born out of frustration with vague problem descriptions in our CMMS system, and has proved to be a valuable tool in improving our maintenance practices. If you have any problem x cause matrices to share, please reach out – I am always on the lookout for new insights.
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In my humble opinion (IMHO), the issue of companies not addressing the gap between academia and industry needs remains unresolved. Few companies take action to bridge this gap, possibly by collaborating with technical colleges and universities to align educational curriculum with industry requirements. However, valuable experience knowledge is being lost as seasoned professionals retire, leaving a gap in the workforce.
In Australia, there was an initiative to establish an industry-specific Alumni network utilizing retirees as coaches and mentors for emerging staff. However, this proved to be a temporary solution as the retirees eventually lost interest or had outdated knowledge. It is crucial to remember that knowledge has a shelf life, leading to the need to reevaluate and reconsider strategies.
The issue of a shortage in skilled trades has been a long-standing concern, with reports dating back over 20 years highlighting the lack of welders in shipyards, foundries, and welding schools. Furthermore, there have been instances of vocational schools phasing out certain trades due to low participation rates. Numerous articles online have delved into this topic, prompting the question: has the impending crisis been evident for quite some time, and are we only now beginning to address it in earnest? Bill Schneider raises an important question about the delayed response to this critical issue.
Many pump manuals from the 1930s are still in circulation today, with some machines over 50 years old still in use. While apprenticeship programs and mentorship are crucial, the foundation of knowledge must be strong. Unfortunately, this foundation is deteriorating over time as companies fail to address the issue. The focus is now on creating opportunities for higher executives to profit, rather than on strengthening the industry. Many technical schools employ retired military personnel with limited industry experience, but this may soon change. There is talk of moving operations to Iraq where natural gas is abundant and there is a readily available labor force. Questions arise about basic skills such as efficient tool usage for left-handed individuals and understanding framing square measurements. Even in a high-tech field like rocket science, fundamental knowledge is still essential. The pursuit of building pyramids is akin to holding on to outdated information.
As people age, physical ailments can hinder their ability to continue working in their original field. This is a common challenge faced by companies, especially when trying to retrain individuals in new skills such as IT. Finding meaningful work for older employees, who may be closer to 50 than 60, can be difficult without proper mentorship programs in place. How are other organizations addressing this workforce issue of aging employees with physical limitations?
Greetings, Doctor! The US Census Bureau is projecting new job growth in the United States, with a particular focus on the service industry, especially health services. Thanks to advancements in healthcare, we are now living longer than ever before. Back in the early 1900s, the workforce had a much shorter lifespan and started working at a much younger age. However, the current workforce is entering the job market later and retiring much later, leading to an increase in the average years spent in a trade. Despite concerns about the aging workforce and a perceived lack of work ethic in newer generations, it is important to recognize that every generation has faced similar criticisms throughout history. There is a noticeable interest in the skilled trades, but there is a lack of marketing to younger generations about the benefits of pursuing a career in these fields. Additionally, there are fewer positions available for skilled trades in companies, which may contribute to a decrease in available skilled jobs in the coming years. I will be discussing these important topics in more detail in the Motors Blog section of ReliabilityWeb.com as part of the Penrose Lecture Series. Stay tuned for more insights and information on workforce trends and changes in the upcoming months. For additional reading, you can visit the blog at http://maintenancetalk.com/blog.php/motorblog/. Sincerely, Howard W Penrose, Ph.D., CMRP The "Skilled Workforce in the 21st Century" study, conducted by Terry O'Hanlon and myself, will be released with much anticipation in August after completion earlier this year.
In the United States, the healthcare industry is rapidly growing alongside an aging workforce. The good news is that advancements in ergonomics, automation, and new technologies are available to support workers, including those in the reliability and maintenance sector. For example, I recently observed a client implementing a WiFi system for remote crane vibration monitoring at their facility. This innovative technology eliminates the need for workers to climb onto operating cranes for inspections, improving safety for older workers with health concerns. Additionally, the system enhances data collection efficiency, fault detection, and presents new opportunities for improvement. These developments represent a transformative period for the workforce, ushering in an era of evolution. Best regards, Howard.
As mentioned previously and now returning to focus on, skills alone are not the sole solution to the challenges we face. Baby boomers have invaluable knowledge from their unique experiences that we must continue to learn from. This includes exclusive insights into rare tasks, preparations for uncommon events, and understanding how different plant components react to various treatments. While skills are important, there is a need to also codify and utilize this knowledge effectively. As our economies shift towards service-based models, it is becoming increasingly evident that we must address this issue. The 4th generation of asset managers faces the challenge of capturing and leveraging this knowledge. Dr. Spoon's concerns also highlight the importance of taking action. While we have discussed various aspects of the problem, concrete and actionable solutions are lacking. Are there any initiatives in place to address this gap?
For those interested in knowledge continuation and overcoming challenges in asset management, I invite you to check out my blog, Modern Asset Management. As the issues surrounding knowledge continuity are addressed, I also share general insights on common industry "problems". This personal blog aims to offer valuable insights and perspectives. Your comments are welcome and appreciated.
The recurring issue of skilled trades quitting presents a challenge that is not new or unique. Instead of focusing solely on knowledge capture as the solution, perhaps a more effective approach would be for individuals to retire in order to break away from detrimental habits that impact maintenance operations. This can essentially serve as a reset for the organization. The current approach to addressing this issue parallels the handling of the Y2K bug, with significant costs involved in maintaining the status quo. Embracing a combination of leveraging available tools (such as knowledge capture and RCM) and newer technologies (like automation for maintenance) could offer a more efficient solution. However, the main obstacle lies in the resistance from employees and managers with outdated perspectives, hindering the successful implementation of improvement programs. For example, allowing a worker to neglect proper documentation and maintenance procedures while on duty not only jeopardizes operational efficiency but also perpetuates a culture of complacency within the workforce. Addressing such behavior through reprimands and corrective actions is essential to prevent the normalization of these bad habits. Ultimately, there is a need for a shift towards a more proactive and technology-driven approach in maintenance operations to ensure long-term success.
Thank you, Howard, for your post. I believe the issue at hand is not just about when a skilled trade quits, but the impending number of skilled workers leaving is indeed a significant problem. As I mentioned on my blog, this challenge is not insurmountable, but it is one that many countries, including Saudi Arabia, are currently facing. The solution lies in seeking external help, despite it not being the ideal choice. The traditional belief that a country must source technical skills internally is no longer sustainable. It is possible that retiring employees can remove detrimental habits that negatively impact operations and maintenance. Resetting the organization could prove beneficial. Not all knowledge is valuable, and some may hinder progress. This issue resembles the Y2K situation, where organizations spend significant sums to revert to familiar practices. This approach poses risks, and while basic maintenance may resolve some issues, it is not a comprehensive solution. I have assisted several organizations in going beyond daily maintenance by implementing asset management practices and codifying knowledge for enhanced accessibility and continuous improvement. New employees can benefit from distilled knowledge based on data and logic, rather than outdated practices. This transformative approach to knowledge transfer is an engaging field that you would find intriguing. Regarding disciplinary actions for misconduct, an employee caught engaging in such behavior should first receive a warning and face further consequences if the behavior persists. Reinforcing rules is crucial to prevent the perpetuation of bad habits among staff. However, undisclosed issues, as seen in similar companies, can pose challenges. The lack of awareness, as noted by the Rumsfeld factor, is a significant issue in some organizations. Establishing structured processes is essential, but there are deeper complexities to consider for effective operations management.
The Strategic Industry Research Foundation in Australia, known as SIRF, is actively emphasizing the significance of knowledge management through its newly established Knowledge Management Round Table. To learn more, visit their website at www.sirfrt.com.au.
Howard and others, I found a recent news article that corroborates the points you've been discussing. It's worth checking out: http://www.energyreview.net/storyview.asp?storyid=60894§ionsource=s0.
Answer: - Addressing knowledge transfer in the workplace is crucial because a significant number of baby boomers will be retiring in the next 10 to 15 years, taking with them valuable experience, knowledge, and skills. This departure will impact the expertise level within companies, especially as the number of entry-level employees surpasses that of experienced professionals.
Answer: - The talent gap resulting from the retirement of baby boomers can lead to a decrease in overall expertise within companies, creating challenges in maintaining and transferring crucial knowledge and skills. This gap can also affect productivity, innovation, and the ability to compete effectively in the market.
Answer: - Various solutions are being implemented globally to address the talent gap, including knowledge transfer programs, mentorship initiatives, skills development training for younger employees, creating a knowledge-sharing culture within organizations, and leveraging technology for capturing and disseminating knowledge effectively. These solutions aim to ensure a smooth transition of knowledge and skills from retiring employees to the next generation of workers.