What do you expect from your employees? Do you expect them to think like an owner? Or just clock in and get their work done? Are they compensated for your expectations? In this episode of MakingChips, we’ll cover the bonus incentive plan I’ve structured for my core team. I’ll share the goals of the program, how to determine what behaviors to incentivize, what the reward(s) will be, and an easy way to manage it. Don’t miss it!
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As our team begins to grow at Carr Machine & Tool, I believe it’s time to hire for a middle management position. But what is middle management? What does a middle management role consist of? Will implementing this role truly solve our problems? Jason helps me talk through the challenges I’m facing in this episode of Making Chips!
Any tips, tricks, or ideas to help me through this? Reach out at Jim@MakingChips.com. I’d love to hear from you!
How do you keep corporate culture alive when your workforce is completely remote? How do you focus your company on your values, mission, and goals? When a thriving company culture is crucial to retaining your employees, it can’t be neglected. We dissect this problem we’re facing because of the COVID pandemic—and 6 possible ways to promote and maintain your unique company culture—in this episode of MakingChips.
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Is the labor shortage accelerating automation? Why is there a perception that automation is both risky and complex? How do you lead your elders with authority yet humility? To dovetail—or not to dovetail? These are the questions that we hash out with Michael Gaunce, the VP of Sales for Tooling and Workholding at SCHUNK. We take a deep look into the technical side of workholding and automation in this episode of Making Chips. Now is the time to embrace automation. Because if you’re not making chips efficiently, you’re not making money!
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MakingChips is NOT a cult of personality. We want MakingChips to be about the Metalworking nation. We want to interview you. We want to talk about your problems and how to solve them. We hope we equip, inspire—and sometimes entertain—you. With that being said, some BIG changes are coming. What will the future of MakingChips hold? Listen to this episode to hear our game-changing update for the Metalworking nation.
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We want to bring on three new hosts of three NEW shows. If you believe you have a podcast the Metalworking nation can benefit from, connect with us. Send us a pitch at info@makingchips.com. Share a description, your history, and why you believe it can become a monthly show. You may just become a member of the MakingChips podcast family!
Your people are the most important part of your business. If they’re not, they should be. When you hire someone, it’s always with the hope that they’ll become a long-term part of the family, right? So you need to cultivate a workplace culture they want to stay and thrive in. So in this episode of Making Chips, we’ll share nine simple tactics that you can implement immediately to transform your company culture.
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What are the things you HATE about meetings? Moving into 2022, would you like to have better, more productive meetings that don’t waste time and actually get things done? The MakingChips team is discussing the issue on this episode based on a book Nick read recently, called, “Death By Meeting.” Learn 3 steps you can take to make your meetings powerful for 2022.
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This is NOT another goal-setting podcast episode. You know, the kind that explains how to effectively set goals for the year… this one is about WHY you need to set goals. No tips and tricks. No newest approaches and apps. We’re going to talk about the impact goal-setting can have on your life and business. Jim and Nick come along for the discussion because this is something important to me, personally. We’re going to cover eight reasons annual goals will benefit you, so be sure to listen.
BAM!
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In our previous conversation with Jeff Taylor (episode 292) we introduced the idea of ESOPS (Employee Stock Ownership Plans) as a way to give true ownership to your manufacturing business employees. We invited Jeff back for this episode to tell us more of the journey he’s been on with ESOPs and discovered that the outcome was more than he could have imagined.
Going back to the beginning of the process for Jeff, he has spent his adult life working for others and adding value to their companies. But he never received any sort of extended value or equity in the company. His experience led him to think about how he could develop cultures and attitudes among working teams that enabled them to truly have ownership in the company (in terms of mindset AND equity). That’s when the idea of ESOPs (Employee Stock Ownership Plans) came onto his radar. This episode explores the topic in greater detail and will open your mind to how your manufacturing business could be organized to leave a legacy through your employees.
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The “Great Resignation” as it’s been called, has created a wide variety of circumstances that have impacted the American workforce. 55% of workers making under $30K/year say they will be looking for a new job soon. Has this impacted manufacturing? If so, what can we do as manufacturing leaders to mitigate the impact? This episode focuses on what leaders can and should be doing to build the kind of loyalty that will sustain their companies and provide a culture and experience for team members that is “sticky,” keeping them around for years to come.
BAM!
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There is a paradigm shift happening in the industry: many skilled machinists are retiring. As these long-term skilled machinists are leaving, they’re leaving with intellectual legacy knowledge that’s irreplaceable. Do procurement people sourcing machining parts know what the processes and procedures look like? Do they know the difference between a fabricated, turned, or machined, or five-axis part? What can we do as owners to mitigate the problem or offer solutions? We dive into the discussion in this episode of Making Chips!
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Finding Solutions to the Supply Chain Chaos, #293
What is the root cause of the supply chain crisis? How can manufacturing businesses mitigate those risks and find realistic solutions that work in the short and long term? Tom Hilaris—the President & CEO of Ergoseal—joins us to share the three things they focus on: risk mitigation, communication, and culture. In this episode of Making Chips we offer real, practical solutions your business can implement to overcome the supply chain chaos. Because—after all—if you’re not making chips, you’re not making money! BAM!
– Jason
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What is an employee stock ownership plan ESOP? How does it work? How can it transform the buy-in of your team and lead to revenue growth? Jeff Taylor—the President and CEO of Crafts Technology—implemented an ESOP. Listen to this episode to hear about the impact it had on his business—and figure out whether or not it’s right for yours. Employee buy-in can lead to profitability which can lead to Making Chips! BAM!
– Jim
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– Jason!
What are your tips and tricks for the hiring process? Let us know! Send an email to info@MakingChips.com!
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What factors should you consider when forecasting? What questions do you need to ask to determine your next steps? Who gets to make those decisions? We walk you through some common questions to ask yourself—and your company—about your business. We’ll also cover Miles and Snow's Typology of Defender, Prospector, Analyzer, and Reactor to see how your type impacts your decision-making process. Learn a great process to forecast and set goals in this episode of Making Chips! Now is the time to look ahead! BAM!
– Nick
If you have a great methodology for forecasting, let us know! Shoot us an email at info@MakingChips.com!
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Nick jokes that I have a recession obsession—and it’s true. Recessions are painful. I want to make the experience less painful when a recession comes around again. So in this down-to-earth episode of Making Chips, I’ll share the common causes of most recessions and 8 tips you can use to prepare yourself—and your business—for a recession. Preparedness is key to helping your business survive and thrive. Because after all, if you’re not making chips, you’re not making money. BAM!
– Jim
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In round three with Titan Gilroy, we talk about why Titan decided to move his entire business from California to Texas. Was it a smooth transition? Was he able to retain his entire team? Titan also shares more of the “why” behind his business and his passion for serving his audience. Titan continues to go above and beyond the expected as he grows his academy. Listen to learn more. BAM!
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In this episode of Making Chips, we dive back into the conversation with Titan Gilroy. This time, we talk about how Titan’s TV show, “American Built,” came to life. We also talk about how he almost gave up the TV show to do something he was passionate about—helping prisoners transform their lives and learn to become full-fledged machinists. This passion project eventually led to the creation of the Titans of CNC Academy, where you can learn everything from the fundamentals of machining to creating aerospace parts—all completely free. Don’t miss this episode with THE Titan of the industry. BAM!
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This episode takes you (and us) to Texas to speak with Titan Gilroy. He calls himself an advocate for advanced manufacturing, and that’s a huge understatement. He runs two academies that teach what it takes to be a success in manufacturing. His personal stroy demonstrates that becoming a success in the industry — individually or as an organization — doesn’t happen overnight or without a significant amount of struggle. We skip the banter and back and forth typical of our episodes because we are so excited to bring you this conversation with Titan. So, without further delay, click the play button and hear what Titan’s got to share. BAM!
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According to a recent article in Reuters, “The ISM said its index of national factory activity inched up to 59.9 last month from a reading of 59.5 in July. A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the U.S. economy.” Manufacturing is on the rise, yet every industry is struggling with an impaired supply chain. Will things get better anytime soon? How can manufacturing businesses manage shortages in the meantime? We share some thoughts in this episode of Making Chips!
Manufacturing is becoming increasingly busy but supply chain woes linger. It’s the #1 thing on our minds right now. Most machine shops are at or near capacity. But we’re having trouble getting aluminum, brass, steel, and finished goods. Even getting containers to ship the goods is a struggle. This phenomenon is being dubbed “The Great Supply Chain Disruption.”
Whenever you’re making a systemic change, it’s going to cause disruption. No matter how much planning you put into something, disruption happens. This should have been expected.
Reshoring is more relevant than ever. And this isn’t a new topic to our show. What is driving the reshoring initiative? COVID. Everything that was coming from overseas halted or decreased. Ships weren’t coming through the Panama Canal. Ships weren’t being unloaded because the workforce was at home.
When China started rethinking its business environment and they started to incorporate more free-market tendencies, they wanted to become an export economy. They didn’t have the technology to export high-end goods so they started on the low end. But now they’re catching up. Now, China is focused on export as well as making branded goods for their economy.
People spent their time in quarantine buying low-cost things that are sourced from Amazon—from exercise equipment to kitchen mixers. They’re buying computers, TVs, headphones, etc. Many things that are sourced from China.
Lead time and prices are going to increase. Everyone is dealing with it right now. We can’t be the link that absorbs all the cost increases. The federal government knew that the influx of money into the economy plus the supply chain issues were going to lead to increased prices. This is going to lead to inflation. Inflation does slow growth. But everyone is saying that interest rates will be holding steady ingo 2022. We think the supply chain issues will continue into 2022 but it’s currently a game of wait and see.
So what can manufacturers do in the meantime to mitigate the problems that come with supply chain issues? We share a few tips in this episode you don’t want to miss. Check it out!
BAM!
– Jim
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Do your employees feel like they’re a means to an end? I think a lot of team members don’t realize—or believe—that we care about them. Some feel that when you hold them accountable to hit their numbers that data is all you care about. But that isn’t always the case. At the end of the day, we’re all business leaders who need an efficient working environment. So where do we find a balance between data, accountability, and caring for our team members? How do we drive profitability without driving our employees away? Listen to this episode of Making Chips for the full discussion!
I’ve seen a trend where everything is about data. Everyone wants to harvest data. But can you take it a step too far? Can there be an imbalance in the data?
On a recent episode of Russell Brand’s podcast, he talked about how Amazon’s delivery people have an app they have to use. The app tracks every move they make and everything they do when they deliver packages. But it appears that Amazon is tracking metrics that are outside of the control of the employee and using those metrics to evaluate them.
We believe when you hold people accountable with metrics it should be something that’s within their control. But Amazon has taken it so far that people are being fired when they don’t meet the metrics of the algorithm Amazon has in place for delivery drivers.
When Russell Brand described this, he pointed out that Amazon was treating their employees like zombies living in an algorithm—disposable cattle.
Nick had a conversation with leaders at AME and Hennig about compensation for their salespeople. Commissions are results-based compensation and the result is why you work. But there are other activities salespeople do that add value. They do activities to achieve an objective to create a result. So his company talked about activity-based objectives they could compensate their salespeople for. They decided compensation should be a mix.
Salespeople are driven by increasing their compensation. So they tend to focus on what would compensate them the most. But if your company wants them to focus on other activities not directly tied to making a sale, you might have to compensate them. You have to match the compensation with the desired behavior.
I just took off the month of August and ZENGERS had a record month of sales while I was gone. I’m not trying to micromanage my team. They have an overall objective—sales and profitability. My goal is to train them on the right things to do to achieve that goal. I’m not saying they need to make a certain amount of calls a day or track every detail. I give them an overall mission to achieve but I don’t track their every movement. I feel like asking your team to track everything they do is the kiss of death. But is that true for every business?
For Jim, due to Carr Machine & Tools AS9100 certification, they are mandated to document all of the results from their machining process. He runs a data-driven and oriented business where he has to measure, record, validate, time-track against jobs, and more.
And of course, each individual on my team has those types of quality measurements that they have to hit. We record data that contributes to useful management of your team. But I don’t want my team to record data that’s pointless. Nick’s brother always says that any data that you record and isn’t used to make an improvement is wasted money. Wasted information is wasted action.
The bottom line is that everyone needs to take a step back and think about this. Are the right activities being tracked? Are you gathering useful data, or just wasting time? You need to collect the right data that helps you drive profitability for your company. Listen to the whole episode for the full conversation.
BAM!
– Jason
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The U.S. labor market is still struggling despite record numbers of job openings. Businesses aren’t able to hire as quickly as they need to. What’s the holdup? Is there a lack of candidates in the market? Are people choosing not to return to work? In this episode of Making Chips we dissect what’s happening—and a few things you can do about it.
According to Andrew Hunter’s research, we’re seeing a high level of job openings but low levels of hiring. Millions of Americans are quitting and many aren’t re-entering the labor market. It’s claimed that the labor market is healthy, but the numbers don’t add up. Why?
The incentive to stay home and not work will decrease as the double unemployment payments are pulled back. The economy is recovering but worker confidence isn’t returning at the same pace. Autumn 2021 may bring the correction needed to balance the market. The outlook is optimistic. But until things turn around, what do manufacturers do?
A client of Jason’s had a key person in their shop that was doing some things that he deemed worthy of firing. But Jason’s client couldn’t afford to lose—and be forced to replace—this person. So he took a risk and sat him down for a conversation. He gave him the option to fix the problem or he’d be fired. This person turned his life around completely. This may not be an option for everyone, nor will it work in every scenario, but it was a creative way for this business owner to solve a problem.
Recruiting for regional sales positions has been a huge focus of mine recently as we are restructuring our sales. But I don’t want to hire the first warm body. Everyone has heard “Hire slow, fire fast,” right? But if your machinist quits, you can’t hire slow because it causes production problems.
So what am I doing right now? Finding a way to work with a candidate before we commit to hiring them full-time. If there’s a way to test the relationship, do it. Making Chips is a podcast and marketing agency. We brought someone on as a contractor to try out on a trial basis before we commit to hiring him full-time. It’s great for both parties to make an educated decision about each other. You can even put it in writing so it’s transparent and fully agreed on.
What else can you do to hire for a difficult-to-fill position? Use LinkedIn’s recruiting tool. The price is steep—approximately $30,000—but you’re given access to highly qualified candidates interested in a new position. LinkedIn will even train you how to use it. The opportunity to do it yourself is available for larger companies who can make that number work.
Listen to the whole episode to learn more about how the hiring process has gone for me and get some in-depth details on my two strategies.
BAM!
– Nick
Shameless plug: If you are interested, we’re all hiring!
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I wanted to differentiate myself among other machine shops in the area with the new Carr Machine & Tool location. The shop floor is where we make our money. I took extra steps in the process to create a new image for my shop. I wanted to present it in a way that was sophisticated, high-tech, polished, and professional—while remaining efficient.
That’s where IMEC came in. I reached out to them for some technical collaboration to help design an efficient shop floor. I worked with both Dean Harms and Tim Maurer and it was an amazing experience. So in this episode of Making Chips, I’m sharing what the collaboration and design process looked like with IMEC.
Dean Harms is a Regional Manager with IMEC. It’s his mission to help others any way he can on a daily basis and have fun along the way. Sounds like us, right?
IMEC is part of the Manufacturing Extension Partnership (MEP) National Network. It’s connected to the US Department of Commerce through the NIST organization. IMEC launched in the 1990s and is about to celebrate its 25th anniversary. There are 51 MEPs (one in every state + Puerto Rico). Their overall mission is to provide solutions and improvements to small and medium-sized manufacturing companies to help them navigate the changing landscape, drive profitability, sustain growth, and become globally competitive.
IMEC is a non-profit that is both privately and publicly funded. They are a channel that brings tax dollars back into the state of Illinois by specifically serving manufacturing businesses. Dean Harms makes sure the money is applied where it’s needed most.
Dean cold-called me after I was on a live Facebook interview. I mentioned I was about to move my shop, so he reached out. He knew that there was probably something IMEC could do to help with the move. I heard that they could help design my shop floor and I really wanted a high-end polished shop. Dean introduced me to Tim Maurer and said he would be the perfect guy to collaborate with to design my shop floor. Tim has decades of experience not only with IMEC but also with Caterpillar. After I met Tim, I knew I was dealing with someone who was competent and knew what a manufacturing floor should look like.
Tim’s design process was thorough, starting with the vision for our future and ending with the execution of the move. We started by setting objectives: Where did we want to be? What type of work would we be doing? What new technologies will be utilized on the shop floor?
We did a physical walk of both of the properties. He took physical measurements of the new building, all of our tools, and made sure the room was big enough for a CMM. After he did the physical layout, we met again to go over the flow of the room and nail down the workflow. We placed the machinery and equipment in the prime areas of the floor to maximize the square footage.
He established power needs, air drops, water needs, an eyewash station, etc. He developed the CAD and we talked about future automation and made sure they’d be room around the machines. He delivered the final layout to us in a CAD model. The best part? On moving day we had a roadmap to mark where everything went. We knew where every single thing would go.
The design process was an investment in our future productivity. I would never have completed this process as well as Tim did. I highly recommend working with IMEC through a big move to create a more efficient shop floor. Don’t be afraid to delegate design to the experts.
BAM!
– Jim
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Everyone is familiar with the concept of networking. But how many people actually implement it to grow themselves and their businesses? In this episode of Making Chips, Jim, Jason, and I dive into how networking has impacted our businesses in unexpected ways. To hear the good, bad, and the ugly—give it a listen!
I think it’s important to point out that networking is why all of us are here. It’s why we all know each other and host a podcast together. But where did this partnership start?
Jim was spending money at ZENGERS and was a great customer for them. So Jason loosely knew who he was. Why did Jim purchase from ZENGERS in the first place? One of his friends—a production manager at a shop—recommended ZENGERS. One would’ve thought that’s how their relationship started. But it wasn’t.
Jason and Jim were both asked independently to be on an AM radio show at 6 am on a Saturday (the time slot when you know only serious entrepreneurs and business owners would be awake and listening). Jason was talking about creating a vision for your company and Jim talked about social media marketing for manufacturers. They were both impressed by each other, their business acumen, and how well acquainted they were with the industry. They realized they’d make a great combination and the podcast was developed from there.
The question is—without networking, would they have gotten the opportunity to speak on the same radio show?
Jim had a strategic vision for networking for his business. He became a member of the Technology and Manufacturing Association (TMA) who had recently hired a marketing manager to help machine shops with their marketing. Jim got on the phone with him and they got along. He became instrumental in helping Jim develop networking within the association.
Jim was asked to join a young leaders group where he was able to meet like-minded people. He knew if he committed his time to networking and building relationships within the community, that he would grow in some capacity. He didn’t know where it would take him but that he’d walk away from networking events learning more.
If you go to a networking event and leave feeling like you learned nothing, you’re doing something wrong. You’re either in the wrong place—or not asking the right questions.
Jim also joined the Greater O'Hare Association and the Valley Association. He met great people in all of them. Networking is a great way to listen to other people and learn from their experiences.
Some of our Making Chips sponsors have been a great way for us to realize connections across the industry.
Amper can help you better understand your shop and help you solve problems on your shop floor. Nick, our guest on a previous episode, also works with Amper. It was a game-changer for him. Nick had emailed me a year or so ago and I hadn’t followed up with him. Luckily, Jim met him again at a networking event and we all got back in touch.
Another sponsor, Xometry, asked us to be part of a focus group consisting of manufacturing leaders. This shows that Xometry cares about their network. How often do companies hire a credible third party to dig into discovery? How often do they dig into their segments to find out what they care about and need? They got a third party to investigate and find out what’s happening. They wanted to re-engineer their value proposition to serve their customers better.
In the Xometry focus group, we heard that four of the individuals were all ProShop ERP users—and had heard about them through the Making Chips Podcast. These leaders all loved ProShop. It certainly gave us more structure for our processes. You’ll become more efficient, productive, detail-oriented, data-driven, and results-oriented.
They heard about ProShop because Jason and Jim had the courage to create a podcast just for the manufacturing industry. I joined them because I’m just as passionate about the space and I know that this show delivers valuable content.
People tend to think networking has to be about growing your business and making connections to make sales. Why is that the wrong mindset to have? What mindset should you embrace instead? Learn more by listening to the whole episode!
BAM!
– Nick
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