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February, 2017 Production
Maintaining a Competitive Position by Investing in Employees
By Brad Heath, CEO, VirTex Enterprises
tion, “What happens if we don’t, and they stay?” It’s a thought-provoking question, for sure. However, at VirTex it’s not one
L
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we have had to ponder for long. Manufacturing has evolved over the years, so the company had to invest in advanced machinery and technology, which re- quired a whole new set of skills. With this came the need to invest in people. During the recent economic downturn, manufacturers “right-sized” their
organizations as demand transitioned offshore. Fast-forward to 2016 and we are beginning to witness a swing in the opposite direction. Customers are making more educated decisions and considering factors such as total landed cost, intellectual property protection and supply chain fragility, especially in VirTex’s sweet spot of low-volume, high-mix products, where product complex- ity, customization and flexibility are required.
The Problem of Skill Today, many production workers do not have the required skills to
match job specifications. By 2005 or 2006 we began to see the problem of labor supply and demand heading our way. We knew that unless we invest- ed in our current and future employees, we would fall victim to a skills short- age. We made a conscious commitment to upskill and to train, to plug emerg- ing gaps before they happened. We recognized that one of our main chal- lenges would be to somehow entice young people to consider manufacturing as a potential career. Unfortunately, the EMS industry has a reputation of being a “churn em-
ployer,” meaning that as our customer’s forecasts fluctuate, so does our employ- ment. This is a myth. In reality, many EMS companies have a diversified client base to combat these fluctuations and have a few customers who will demand products regardless of shifting economics. For example. VirTex is spread across the aerospace, defense, automotive, industrial, and medical markets, and some team members have been with the company since its inception in 1999. That’s nearly 20 straight years of solid employment. If there is one thing the EMS in- dustry does not do well, it’s promoting its employment strengths.
Partnerships to Develop Employees To address the employment challenges of recent years, we started an ed-
ucational program to develop and train in-house employees and have evolved our training systems alongside industry needs. Internship and apprenticeship programs are offered to lure in next-gen-
eration talent, in collaboration with local academia, associations and employ- ment agencies. There is great value in forming partnerships with schools that highlight manufacturing’s innovative nature and career potential. Through these initiatives, we have formed strong bonds with our local
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schools and higher education establishments and we offer curriculum advice and influence. They recognize that we are ahead of the technology curve, understand industry drivers and are living every day to compete in an ever-changing world. We work in close collaboration with today’s technology companies, de-
signing tomorrow’s world, therefore they want to harness our knowhow and take advantage of our subject matter expertise and cutting-edge equipment. This ensures that their students find rewarding careers at the end of their ed- ucational journey and more importantly, prepares them with the right train- ing to use the equipment. We strive to continually think of ways of recruiting and developing our
employees, with more investment channelled into apprenticeship, leadership and on-the-job training. Effective training in new technology is fundamental, given the pace of innovation in the industry. Advances such as the Internet of Things (IoT) and Industry 4.0 are reshaping the manufacturing landscape. Automation and similar technological advancements are pushing the
boundaries of what’s possible. For manufacturing to maintain a competitive position in the U.S., we need continued investment in automation, robotics and technology such as 3D printing, and we need to train people to use it all. As an EMS company, we are at the forefront of technology and we em-
brace change. At VirTex we foresaw the rapid pace of innovation and advances in technology and took necessary steps to invest in the training and upskilling of our employees. This has allowed our company to become a trusted EMS provider to
OEMs. VirTex works to increase the competitive position of customers’ prod- ucts with a smart and simplified regional supply chain solution across the pro- duction cycle. Through harnessing local and regional manufacturing solutions, cus-
tomers can bring their products to market faster and at lower costs, with added value, through highly-skilled and integrated design, manufacturing
and distribution services. Contact: VirTex Enterprises, LP, 12234 North IH-35, Building A,
See at APEX, Booth 2901
Austin, TX 78753 % 512-835-6772 E-mail:
sales@virtexassembly.com Web:
www.virtexassembly.com r
eadership psychologist Peter Baeklund posed a question in which a fic- tional CFO asks his CEO, “What happens if we invest in developing our people and then they leave us?” The CEO answers with his own ques-
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