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3 .U 3
:
A
I O H "
Technology and Labor
in Four Industries
Meat products/Foundries
Metalworking machinery
Electrical and electronic equipment
U.S. Department of Labor
Bureau of Labor Statistics
January 1982
Technology and Labor
in F@yr IndnsSrass
Meat products/Foundries
Metalworking machinery
Electrical and electronic equipment
U.S. Department of Labor
Raymond J. Donovan, Secretary
Bureau of Labor Statistics
Janet L. Norwood, Commissioner
January 1982
Bulletin 2104
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402
This bulletin appraises some of the major technological
changes emerging among selected American industries
and discusses the impact of these changes on productivity
and occupations over the next 5 to 10 years. It contains
separate reports on the following four industries: Meat
products (SIC 201), foundries (SIC 332,336), metalwork
ing machinery (SIC 354), and electrical and electronic
equipment (SIC 36).
This publication is one of a series which presents the
results of the Bureau’s continuing research on productiv
ity and technological developments in major industries.
Preceding bulletins in this series are included in the list of
BLS publications on technological change at the end of
this bulletin.
The bulletin was prepared in the Office of Productivity
and Technology under the direction of John J. Macut,
Chief, Division of Technological Studies. Individual
industry reports were written by staff members of the
Division under the supervision of Rose N. Zeisel and
Richard W. Riche. The authors were: Meat products,
Gary E. Falwell; foundries, Richard W. Lyon;
metalworking machinery, A. Harvey Belitsky; and
electrical and electronic equipment, Robert V. Critchlow.
The Bureau wishes to thank the following companies
and organizations for providing the photographs used
in this study: IBP, Inc.; Foundry Management and Tech
nology Magazine; National Tooling and Machining Asso
ciation; Appliance Magazine; and General Electric
Company.
Material in this publication other than photographs is
in the public domain and may, with appropriate credit, be
reproduced without permission.
(
Contents
Chapters:
Page
1. Meat products........................................................................................................................
1
2. Foundries ..............................................................................................................................
10
3. Metalworking machinery .....................................................................................................
20
4. Electrical and electronic equipment ...................................................................................
34
Tables:
1. Major technology changes in the foundry industry ..........................................................
2. Major technology changes in metalworking m achinery....................................................
3. Major technology changes in electrical and electronic equipment ....................................
4. Output growth inelectrical and electronic equipment, 1960-80 .........................................
5. Output per employee hour in selected electrical and electronic
equipment industries, 1960-79 ...............................................................................................
6. Average annual rates of change in employment, electrical and electronic
equipment, 1960-80 ....................................................................
Charts:
1. Output and employee hours for industry sectors, meat products, 1960-78 ..................
2. Employment in meat products, 1960-80, and projections
for 1980-90 ............................................................................................................
3. Projected changes in employment in meat products by occupational
group, 1978-90 ......................................................................................................................
4. Employment in iron and steel foundries,1960-80, andprojections for 1980-90 ..............
5. Employment in nonferrous foundries,1960-80, and projections for 1980-90 .................
6. Output and employee hours, metalworkingmachinery, 1960-78 .....................................
7. Employment in metalworking machinery and selected industry sectors, 1960-80,
and projections for 1980-90 .................................................................................................
8. Projected changes in employment in metalworking machinery by occupational
group, 1978-90 ......................................................................................................................
9. Employment in electrical and electronic equipment, 1960-80, and projections
for 1980-90 ............................................................................................................................
10. Projected changes in employment in electrical and electronic equipment by
occupational group, 1978-90 ...............................................................................................
General references..........................................................................................................................
v
11
25
35
40
40
41
5
7
9
17
18
28
30
31
42
44
45
©IhapSoET 1. IM
teati Fir®dly©{ii
worker in meat products is considerably below the
average for all manufacturing.
About 361,800 people were employed in the industry in
1980, 12 percent more than in 1960. While employment
has risen overall, some industry sectors have experienced
declines. Because of the labor-intensive character of the
manufacturing processes, the proportion of production
workers is relatively high: 83 percent compared to an
average of 71 percent for all nondurable goods
manufacturing. Women constitute almost one-third of all
employees, comparable to manufacturing as a whole, but
their proportion varies greatly in the different sectors of
meat production.
The outlook for employment in the 1980’s is not clear.
According to BLS projections based on three versions of
economic growth, employment in the meat products
industry could show almost no increase or could increase
as much as 1.0 percent annually from 1980 to 1990—
compared with the average of 0.7 percent from 1960 to
1980.
Summary
Technological change will probably be limited in the
meat products industry in the 1980’s, with the possible
exception of more sophisticated equipment for proces
sing retail cuts of beef. Improvements to existing
machinery are being made, but design concepts or
functions are not expected to change. In meatpacking and
poultry processing plants, new technologies were
introduced in the 1960’s that mechanized processing to
some extent and reduced unit labor requirements.
However, most cutting tasks must still be performed
manually, and the industry remains relatively labor
intensive.
Because advances in equipment have not occurred, the
outlook is for little change in job content or skill
requirements. Currently the major impact on production
and labor utilization in meatpacking comes from growth
in the marketing and distribution of “boxed beef.” In
contrast to the labor intensity of meatpacking and poultry
processing, mechanized batch processing is typical for the
making of sausages and other prepared meats. The use of
highly mechanized equipment in this sector is already
widespread, and new techniques are not expected.
Output of all meat products rose sharply from 1960 to
1980; however, the growth rate in the 1960’s was much
greater than in the 1970’s. The data do not measure
increased processing in the plant, e.g. production of
“boxed beef”, packaged subprimal cuts of beef. Boxed
beef has increased rapidly to about half of federally
inspected steer and heifer slaughter in 1979. It is expected
to become increasingly important in the industry.
For the separate industry sectors, the best available
data on output (deflated value of shipments) and
employee hours appear to indicate strong productivity
growth in meatpacking and moderate growth in prepared
meats since 1960. Official BLS productivity measures are
not currently available because increased processing in
the plants has made accurate measurement of output and
hours difficult to achieve.
Capital expenditures increased substantially from I960
to 1978, to a peak of over $500 million. Real outlays
(expenditures deflated to account for price changes) were
significantly larger in the 1970’s than in the 1960’s.
Despite these increases, capital spending per production
T g [h T S g m tfh® 1®8 ©s
< (g G )® © ^
s
Little technological change is expected in the meat
products industry in the 1980’s, although improvements
to existing machinery will continue. With the possible
exception of more sophisticated equipment for processing
retail cuts of beef, design concepts or functions are not
expected to change.
In meatpacking plants (SIC 2011), new technologies
introduced in the 1960’s automated processing and
reduced unit labor requirements. In beef processing, rail
systems for moving carcasses between cutting stations
eliminated the constant repositioning required in the
older “bed” system. Also, for carcass splitting, workers
were equipped with power knives and saws and were
stationed on horizontally moving platforms. Mechanical
hide pullers were introduced that eliminated many of the
highly skilled hand cutting operations necessary in hide
removal. Rendering operations were mechanized to the
extent that one worker operating a central control panel
became responsible for the entire process. In pork
processing, rail systems were also adopted. Currently,
these methods are widespread.
A large proportion of the cutting operations—
particularly fabricating the carcass into primal cuts—is
1
meat in a protective film. Other workers manually sort the
packaged cuts into boxes for shipping.
It is likely that the shift in processing from retail
establishments to the packinghouses will continue in the
next decade, to include consumer-size retail cuts. This
could be associated with more sophisticated cutting and
packaging equipment.
still done manually, without the aid of powered
equipment. Further automation is hindered by the
difficulty of developing economical and reliable cutting
machinery capable of adapting to the physical differences
in animal carcasses.
be©!
The beefpacking industry is undergoing significant
structural changes due to the growing acceptance by
retailers and wholesalers of boxed beef instead of whole
carcasses. Boxed beef is beef processed to primal or
subprimal cuts, vacuum packed, and placed in cartons by
the packers. In contrast to carcass beef, boxed beef allows
mass production techniques and has lower unit freight
costs. While not new, boxed beef has grown from a
relatively minor product to a significant component of the
industry.
Boxed beef represents a shift in processing from retail
establishments to the packinghouse. Although packing
houses have been cutting and boxing beef for many years,
their market, primarily institutions, was very small.
Traditionally, cutting the carcass into parts was done by
butchers in retail establishments or, to some extent, by
wholesalers selling to larger customers. In recent years,
however, boxed beef has become much more acceptable
to retailers as quality control has increased. Also,
according to claims by boxed beef producers, boxed beef
sales result in savings for retailers from lower
transportation costs, less product shrinkage, lower
construction costs for retail meat areas, greater ability to
tailor products to specific markets, and lower unit labor
costs.
As a result of aggressive marketing, the boxed beef
market has greatly expanded, from only 9 percent of
federally inspected slaughter of steers and heifers in 1971
to about 46 percent in 1979, according to estimates of the
U.S. Department of Agriculture. As yet, only relatively
few packers—the large companies—are providing boxed
beef, but it is generally expected that demand for boxed
beef will become increasingly important in the industry.
The processing of carcasses into boxed beef does not
require new technology. Conventional conveyors move
chilled carcasses between stations where operators work
in an assembly-line fashion, performing most cutting,
packaging, and boxing tasks manually. In larger plants,
however, computerized warehouse systems are used to
place boxes in storage, keep inventory records, and
retrieve and assemble boxes for shipment.
The growth of boxed beef has had no significant impact
on skill requirements in the industry. Because the carcass
is processed on an assembly line, a high level of skill is not
required. Each worker on the line must master only a
single cut; this minimizes training, skill, and unit labor
requirements. However, boxing beef has meant the
addition of packaging workers at the end of the
processing line. Semiskilled workers manually bag each
cut of meat, then operate machinery that vacuum seals the
Processed mesits smd poultry
Operations in the processed meats sector of the
industry (SIC 2013) lend themselves to batch processing,
and automated production techniques are well estab
lished. Bulk handling of materials, mechanized process
ing, and automated packaging have been commonplace
in the industry for many years. In frankfurter production,
for example, workers oversee continuous processing
machinery which mixes, stuffs, cooks, chills, and
packages weiners automatically. Also, an in-line cleaning
arrangement reduces labor requirements for maintenance
and holds downtime to a minimum.
In general, the amount of labor and skill now necessary
to operate processed meat production lines has been
minimized. Job assignments require the monitoring of
machinery rather than manual processing. Because this
industry sector is already highly mechanized, the outlook
is for improvement to existing machinery rather than
changes in production methods. The effect on labor is
consequently expected to be minimal.
Similarly, technology in poultry processing (SIC 2016,
2017) is not expected to change significantly in the 1980’s.
Currently, some steps are highly mechanized. Slaughter
ing and feather removal are generally accomplished by
machine. Also, conveyors and rail systems which move
poultry carcasses through the plant, as well as automated
packaging equipment, are widespread. However, manual
cutting is still extensive. Most of the tasks in evisceration
and carcass breakdown are done with knives or shears. In
only a few steps—such as lung or neck removal—are
workers assisted by power tools. As in meatpacking
plants, machinery has not been developed to accommo
date the physical differences in poultry carcasses. Also,
the comparatively low wages paid poultry workers reduce
the incentive for more mechanization.
Oytput am EProductiwity ©utl@®lk
dl
Output
Output of all meat products (SIC 201) rose at an
average annual rate of 1.9 percent between 1960 and 1980,
according to Federal Reserve Board data.1However, the
rate of growth in the 1970’s contrasted sharply with the
trend in the 1960’s. From 1960 to 1970, output increased
an average of 2.9 percent annually, with only 1 year of
decline. In contrast, declines in 4 of the 10 years from 1970
‘Board of Governors of the Federal Reserve System index of
production for meat products, sic 201, based on weighted production
data of the U.S. Department of Agriculture.
2
B u tch e rs c u ttin g carcasses fo r b o xe d beef
3
limitations, but can be used to approximate total output
of this sector.5 These data show that commercial broiler
production more than doubled from 1960 to 1980, to over 11
billion pounds. Very substantial growth occurred in the
1960 decade when the annual rate averaged 5.5 percent;
from 1970 to 1980, the rate was 4.2 percent.
Like production of commercial broilers, turkey
production has also shown substantial growth since
1960—output more than doubled to about 2.5 billion
pounds in 1980. Higher prices for red meat and greater
marketing efforts have increased demand for turkeys and
have made purchases less seasonal. The growing
preferencesfor turkey is evident in increased per capita
consumption, from about 6 pounds in 1960 to about 10
pounds by 1980.
Output of sausage and prepared meat establishments
(SIC 2013) appears to have increased substantially, but no
official data are available.6 One measure, Census value of
shipments data deflated by b l s price indexes, indicates
that 1978 output was almost double that of 1960.
to 1980 reduced the average growth to 1.2 percent for that
period.
For the major sector of the industry, meatpacking
plants, data on commercial meat production are provided
by the U.S. Department of Agriculture. These data
present certain problems because they are only a measure
of the weight of animal carcasses. They do not, for
example, include sausages and prepared meats or plant
output of hides and other byproducts. Nor do they take
account of additional processing, e.g., boxed beef, the
major output change. Nevertheless, these data, which are
the best available for this analysis, show that total
commercial production of beef, pork, veal, and lamb and
mutton increased more than 40 percent from 1960 to
1980, to over 38 billion pounds. Output growth was
strong in the 1960’s, averaging 3.0 percent annually over
the decade, but slowed to only 0.7 percent from 1970 to
1980.
Beef is the major product in the meatpacking industry.
It currently accounts for about 55 percent of total meat
production; pork makes up about 43 percent. Beef has
experienced a relative decline, from a peak of 66 percent
of total meat in 1976 to slightly more than half in 1980.
Per capita consumption of beef increased from 85 pounds
annually in 1960 to 129 pounds in 1976 but has since
declined to about 106 pounds in 1980. The other
components of meat output, veal and lamb and mutton,
have historically been only a small proportion of
production—about 2 percent in recent years.
As mentioned earlier, boxed beef is replacing carcass
beef as the predominant method of marketing beef.
However, data on output of boxed beef are limited. One
survey by the U.S. Department of Agriculture of the
major boxed beef producers shows that production more
than tripled in volume from 1.3 billion pounds in 1971 to
over 4.1 billion pounds in 1976.2 A more recent
Department of Agriculture survey3 indicates that, in
1979, boxed beef production totalled 4.8 billion pounds,
or about half of federally inspected steer and heifer
slaughter.
Concentration in the beefpacking industry is becoming
an area of concern, according to testimony in
Congressional hearings.4 In 1977, 5 percent of the total
number of packers were responsibile for 70 percent of
steer and heifer slaughter; 10 percent accounted for 80
percent of the slaughter. Concern focuses not only on the
share of the wholesale market which larger firms
maintain, but also on their capability to control sources of
supply.
Data on output of poultry processing plants compiled
by the U.S. Department of Agriculture also have certain
Productivity
Currently, no official productivity data are published
due to the problems of measurement. Because output
data based on carcass weight do not accurately account
for the growth in processing, their use in productivity
measurement has become an issue.7 In the case of boxed
beef, for example, output data must be adjusted to reflect
the processes of cutting and boxing as well as the
traditional labor in slaughtering operations. Because the
proportion of boxed beef in the industry has increased,
productivity data based on carcass weight output would
be understated.
Nevertheless, approximate overall trends can be
identified. For this purpose, the best approximate
measures are the Census value of shipments data adjusted
for changes in inventory and prices. The use of these
output measures with data on employee hours as
indicators of productivity suggests markedly different
patterns of growth among the major sectors (chart 1).
In meatpacking plants, employee hours declined
almost every year from 1960 to 1978 (U4 percent
annually), while output is estimated to have increased
moderately (about 2 percent annually), indicating
substantial productivity growth over this period. In the
1960 decade, estimated productivity growth was
especially strong. Output is estimated to have increased
2/2 percent annually as employee hours declined almost 2
percent per year. In the years 1970-78, productivity gains
’Although Department of Agriculture data for pounds of broiler and
turkey production reflect overall trends, they do not measure industry
output of processed poultry and eggs, specialized poultry products, and
small game, nor do they reflect the trend in recent years toward more inplant processing and packaging.
Agricultural Marketing Service, U.S. Department of Agriculture,
unpublished data.
• Unpublished data.
’
U npublished
4U.S. Congress, House of Representatives, Committee on Small
Business. Small Business Problems in the Marketing o f Meat and Other
Commodities, 1979.
bls
data.
7See, for example, Amalgamated Meat Cutters and Butcher
Workmen of North America (afl cio), 1979 Fact Book, table 1.
4
Chart 1. Output and employee hours for industry
sectors, meat products, 1960=78
Index 1977 = 100 (ratio scale)
160
Meatpacking plants
.
40
160
Sausages and other prepared meats
140
40
160
Poultry dressing and processing, including eggs
140
120
40
1960
1965
1970
1Deflated value of shipments, unpublished data,
inclu d es SIC’s 2016 and 2017.
Sources: Bureau of Labor Statistics and Bureau of the Census.
5
1975
may have slowed somewhat as estimates of output
increased only about 1l> percent annually while the
/
decline in hours slowed down to a rate of slightly over 1
percent.
In contrast, it is likely that the sausage and prepared
meats sector experienced only moderate productivity
growth in the years 1960-78, and growth in the 1970’s was
stronger than in the 1960’s. From 1960 to 1970, output
growth probably averaged about 3 percent annually while
employee hours increased between 1 and 2 percent.
Estimates of greater productivity gains in the 1970’s were
associated with stronger output growth—estimated at
almost 5 percent per year—while the rise in employee
hours remained between 1 and 2 percent per year. The
strong output growth in the 1970’s reflected greater
consumer preference for less expensive meat products.
In poultry processing (SIC 2016, 2017), as in the other
sectors, deflated value of shipments is the best available
measure of output. Again, a productivity measure is
difficult to develop because output data fail to adequately
account for the increasing amount of cutting and
packaging operations being done in the plants. Therefore
the productivity growth estimated below may be
understated.
The best available output and hours data indicate that
very moderate productivity gains were achieved in the
1960-78 period. Output growth appears to have been
strong while hours rose moderately in that 18-year
period. However, data for 1960-70 suggest slow
productivity growth. Output grew substantially—
between 5 and 6 percent per year—but hours almost kept
pace—rising slightly more than 4 percent annually. In
contrast, in 1970-78, stronger productivity growth is
indicated as output increased between 3 and 4 percent
annually while hours rose less than 1 percent.
meatpacking, real average annual expenditures increased
30 percent in 1970-78 from the 1960 decade, while in the
sausage and prepared meat sector real expenditures rose
85 percent over the earlier period. For the poultry
industries, the increase was 66 percent.
Despite the increases in capital outlays in the 1970’s,
capital/labor ratios in meat products are relatively low
compared to all manufacturing. For example, expendi
tures per production worker in meat products for 1972-78
averaged only 60 percent of the ratio in all manufacturing.
This relatively low ratio of capital to labor is a measure of
the labor intensity of the processes. The industry sector
with the most automated technology—sausages and
other prepared meats—had the highest level of capital
spending per production worker but still averaged about
80 percent of the ratio of capital expenditures to
production workers in all manufacturing for the 6-year
period. The other industry sectors—in which many tasks
must be performed manually—had lower ratios.
Employment siod ©©©ypafiSomial Trends
Employment
Employment in the meat products industry was at an
alltime high of 361,800 in 1980, an increase of about 12
percent since 1960, or 0.7 percent annually. After a
relatively sharp decline from 1958 through 1962,
employment stabilized, then increased continuously at a
moderate rate from 1964 until 1972. A sharp drop in 1973
was associated with decreased employment in meatpack
ing plants as cattle marketings were reduced in response
to retail price ceilings and higher costs of feed grain.
Another decrease in 1975 was associated with declining
hog and poultry marketings. Since 1975, employment has
steadily increased but not until 1977 did it surpass the
1972 level (chart 2).
The outlook for the 1980’s is not clear. The impact of
new technology is expected to be minimal and the shift in
processing from retail establishments to slaughterhouses
is likely to continue. However, employment growth will
depend to a large extent on general economic conditions.
According to BLS projections based on three versions of
economic growth,8 employment in the meat products
industry could show almost no increase or could increase
as much as 1.0 percent annually from 1980 to 1990—
In v e s tm e n t
Expenditures for new plant and equipment reached a
peak of over $550 million in 1978, according to Census
data, as prices for plant and equipment rose sharply.
Meatpacking plants spent the most (42 percent of total
industry outlays), while the sausage and prepared meats
sector and the poultry dressing sector each spent 27
percent. Poultry and egg processing plants accounted for
only a small part—about 4 percent of the total.
Capital spending was much greater in the 1970’s than in
the 1960’s. For meatpacking plants, current expenditures
averaged $200 million annually for 1970-78, more than
double the average annual outlay in the 1960’s. For
sausage and prepared meat establishments, average
expenditures more than tripled, from $32 million to over
$97 million in these periods. For the poultry industries,
the average expenditure was only $34 million in the 1960’s
but rose dramatically to over $92 million for 1970-78.
Even when these expenditures are deflated (by the BLS
food products machinery price index) to account for price
changes, the data indicate a marked increase in outlays. In
sProjections for industry employment in 1990 are based on three
alternative versions of economic growth for the overall economy
developed by bls. The low-trend version is based on a view of the
economy marked by a decline in the rate of expansion of the labor force,
continued high inflation, moderate productivity gains, and modest
increases in real output and employment. In the high-trend version I, the
economy is buoyed by higher labor force growth, much lower
unemployment rates, higher production, and greater improvements in
prices and productivity. The high-trend version II is characterized by the
highGNP growth of high-trend I, but assumes the same labor force as the
low trend. Productivity gains are quite substantial in this alternative. On
chart 2, level A is the low trend, level B is high-trend I, and level C is
high-trend II. Greater detail on assumptions is available in the August
1981 issue of the Monthly Labor Review.
6
Chart 2. Employment In meat products, 1960=80, and
projections for 1980=90
Employees (thousands)
300
275
Production workers
Average annual percent change1
250
All employees
1960-80................................ .............. 0.7
1960-67......................................... 0.3
1967-73......................................... 0.6
1973-80.......................................... 1.1
1980-90 (projections) ............ 0.1 to 1.0
^
Production workers
1960-80...............................................
1960-67.........................................
1967-73.........................................
1973-80.........................................
0.9
0.6
1.1
1.3
0
1960
1965
1970
1975
1 Least squares trend method for historical data; compound interest method
for projections.'
Note: See text footnote 8 for explanation of alternative projections.
Source: Bureau of Labor Statistics.
7
1980
1985
1990
compared with the average of 0.7 percent from 1960 to
1980.
The industry’s increase in employment of 12 percent
from 1960 to 1980 was the result of very different
employment trends in the individual sectors. Employment
in meatpacking plants declined steadily from 1960 to 1973
but stabilized thereafter. In contrast, the number of
workers in processed meats and poultry processing
showed a significant overall increase. Consequently,
although meatpacking plants still account for the largest
number of workers in the industry, their proportion of
total employment declined from almost two-thirds in
1960 to less than half in 1980. Meat processing accounted
for 15 percent in 1960 and almost 20 percent in 1980.
Employment in poultry dressing plants rose to over 30
percent of total employment by 1980 from 26 percent in
1972 (earliest available data).
The ratio of production workers to all employees is
relatively high—associated with the difficulty of develop
ing automated techniques that will accommodate
physical differences in carcasses being processed. In 1980,
production workers constituted 83 percent of all workers
in the meat products industry, compared with only 71
percent in all nondurable goods manufacturing. More
over, the percentage has increased in the industry since
1960 while for nondurable goods as a whole, it has
declined. The relatively high proportion of production
workers is evident in each sector of the industry, but is
especially high in poultry dressing plants—exceeding 90
percent.
Almost one-third of all employees are women, but the
proportion varies greatly in the different sectors of the
industry. In meatpacking plants, women make up only 18
percent of all employees. In processed meat plants,
however, the proportion is about 30 percent, while in
poultry dressing plants women account for over half the
work force. The higher proportion of women in poultry
processing is associated with lower physical strength
requirements in the evisceration and packing of poultry
carcasses. In the industry as a whole, the proportion of
female workers has risen gradually from about 25 percent
in 1960 to 33 percent in 1980. This gradual increase is
primarily due to increased employment in poultry
processing.
high proportion compared to only 5 percent in all
manufacturing. White-collar employees—professionals,
managers, and sales and clerical workers—accounted for
less than 18 percent of industry employment in 1978. By
1990, they are expected to decline in number and make up
only 15 percent of industry employment. This decrease is
in sharp contrast to the trend toward an increase in the
proportion of white-collar jobs in many other manufac
turing industries.
Job content and skill requirements are not expected to
change in the near future. As discussed earlier, many tasks
in meatpacking and poultry processing do not lend
themselves to machine processing. Even the processing of
cattle carcasses into boxed beef requires extensive use of
manual cutting. Similarly, since mechanized techniques
are already well established in the manufacture of
processed meats, little change is expected in job content
or skill requirements in this sector of the industry.
Adjustment off workers to techm©logical change
Programs to protect employees from the adverse effects
of changes in machinery and methods of production may
be incorporated into contracts or they may be informal
arrangements between labor and management. In
general, such programs are more prevalent and more
detailed in industries and companies which negotiate
formal labor-management agreements. Such contract
provisions to assist workers in their adjustment to
technological and associated changes may cover new
wage rates, new job assignments, retraining, transfer
rights, layoff procedures, and advance notice of changes
planned by management for machine changes or plant
closings. They may also include various types of income
maintenance programs such as supplementary unemploy
ment benefits or severance pay.
Union affiliation in the meat products industry is not
extensive, but the degree of unionization differs among
the sectors. About one-third of production workers are
covered by collective bargaining agreements, somewhat
less than the proportion in all manufacturing—40
percent. Unionization is more widespread in meatpacking
and processed meats establishments, which historically
have been located in highly unionized areas. Poultry
plants are generally smaller and located in rural areas,
and union affiliation is not common.
In meatpacking and processed meats, labor contracts
differ greatly in their treatment of technological change.
Older and larger firms have agreements which usually
include several types of provisions aimed at shielding the
worker from the impact of changes in technology.
Automation adjustment plans, worker retraining,
interplant transfer rights, and separation payments are
common. In contrast, newer firms generally have
contracts with no specific provisions relating to
technological change. Moreover, other provisions that
could help worker adjustment are often of limited benefit.
For example, although seniority generally determines the
Occupations
The highly labor-intensive character of meat products
operations is reflected in the industry’s distribution of
occupations. Operatives—meat cutters, packers, and
machine operatives—made up 3 out of every 5 workers in
1978. By 1990, they are expected to increase and account
for two-thirds of the work force (chart 3). Craft
workers—about 8 percent of industry employees—
consist primarily of blue-collar worker supervisors and
heavy-equipment mechanics. These mechanics are among
the most skilled and highest paid workers in the plants.
Laborers, including freight and material handlers,
constituted 8 percent of industry employees—a relatively
8
Chart 3. Projected changes in employment in meat
products by occupational group, 1978=90
Occupational group
Percent of
industry
employment in
1978
Professional and
technical workers
Percent change
-20
-30
-10
10
2.1
Managers, officials,
and proprietors
5.6
Sales workers
2.4
Clerical workers
7.7
Craft workers
8.0
Operatives
63.2
Service workers
2.8
Laborers
8.2
Source: Bureau of Labor Statistics.
Cutters and Butcher Workmen and the Retail Clerks
International Union).
Workers in the meat products industry suffer from a
relatively high incidence of on-the-job injuries. For
example, 27 cases of injury per 100 full-time workers were
reported in 1979. This injury rate was the highest for any
industry of the food products group and was twice the
rate for all manufacturing for the same period. As a result,
promoting safe working conditions is an important issue
in labor-management relations. Many contracts in this
industry have provisions requiring the company to
furnish protective devices such as mesh guards, knife and
hook pouches, helmets, and leather aprons. Also, safety
committees composed of union and management
representatives are common.
order of layoffs and recalls, priority is usually determined
within production divisions rather than plant- or
company-wide. Retraining or transfer rights are seldom
established. Also, in these contracts management
typically reserves the right to change methods of
production without advance notice.
Labor-management contracts usually run 3 or 4 years.
Either contracts are negotiated on a plant basis or master
agreements are established for multiplant companies.
However, since some of the newer and larger packers are
not parties to master agreements, these types of contract
arrangements are not as widespread as they once were.
The predominant union is the United Food and
Commercial Workers International Union (founded in
1979 by a merger of two unions, the Amalgamated Meat
SELECTED /
Abel, Martin. “Meat Packing Industry is Highly Competitive,” The
National Provisioner, Dec. 13, 1980.
U.S. Congress, House of Representatives, Committee on Small
Business. Small Business Problems in the Marketing o f Meat and
Other Commodities, 1979.
Amalgamated Meat Cutters and Butcher Workmen of North America
(afl - c io ). 1979 Fact Book.
U.S. Congress, Senate, Select Committee on Nutrition and Human
Needs. Food Industry Studies, 1976.
Arkansas Department of Labor. Meat Cutters in the Poultry Dressing
Industry in Arkansas: A Special Report, 1978.
U.S. Department of Labor, Bureau of Labor Statistics. Employee
Earnings and Supplementary Benefits, Meat Products, May 1979,
Summary 80-6, 1980.
Bloom, Gordon F. Productivity in the Food Industry: Problems and
Potential. Cambridge, Mass., mit Press, 1972.
Williams, Willard F., and Thomas T. Stout. Economics o f the
Livestock-Meat Industry. New York, Macmillan Publishing Co.,
1964.
Mountney, George J. Poultry Processing Technology. Westport,
Conn., Avi Publishing Co., 1967.
9
Cfhaptieir 2„ F iL [n ][rii®
@ O )d §
foundry workers whose duties involve largely manual
tasks.
S y m m siF v
Technological changes in the foundry industry are
improving the quality of castings, reducing unit labor
requirements in production tasks, and achieving
economies in energy and raw materials.1 Innovations
being introduced in major foundry departments include
improved material handling devices, automatic equip
ment for molding and coremaking, improved instrumen
tation and control, and machinery to further mechanize
cleaning and finishing operations.
The foundry industry provides the castings incorpo
rated in a wide range of consumer and industrial
products. During 1960-80, output of iron and steel
castings increased at an annual rate of 1.6 percent and
output of nonferrous castings at a slightly higher annual
rate. Productivity in gray iron and steel foundries
increased moderately as output rose at a greater rate than
employment. Capital spending has been increasing for
modernization, expansion, and technology to meet
Federal and State pollution and health and safety
requirements.
The outlook is for employment to rise through 1990;
growth is projected to be higher in iron and steel than in
nonferrous foundries. Between 1960 and 1980, employ
ment in iron and steel foundries increased at an average
annual rate of 0.7 percent, while employment in
nonferrous foundries rose at a higher annual rate—1.4
percent. The trend to more extensive mechanization is
expected to result in a larger proportion of professional,
technical, and maintenance workers and a further
reduction in hand molders, coremakers, and other
in the 1S80s
s
Technological changes underway in the foundry
industry are improving efficiency in major production
operations. Specific technologies gaining prominence
include improved material handling devices, automatic
equipment for molding and coremaking, more productive
diecasting technology, more widespread use of electric
furnaces in melting and mechanized systems in pouring
operations, advances in cleaning and finishing equipment,
and more extensive instrumentation and computeriza
tion. The foundry industry also has invested substantial
funds for technology to reduce pollution and improve
worker health and safety. Although new technology has
resulted in a reduction in unit labor requirements in some
operations, displacement of employees has not taken
place in the industry as a whole. Table 1 describes
innovations underway in the industry, their impact on
labor, and prospects for further diffusion.
Material handling
Improving the handling of the large quantities of
materials required in the manufacture of castings—from
70 to 80 tons for each ton of castings produced—remains
a major means of achieving productivity gains in
foundries. Conveyors, trucks, cranes, and hoists of
improved design continue to replace manual handling
and less efficient equipment. Modern material handling
systems lower machine downtime, improve production
control, reduce material waste, and enhance working
conditions through a reduction in manual tasks and fewer
accidents.
The use of increasingly versatile lift trucks and frontend loaders to transport materials has expanded greatly.
Between 1963 and 1977, the average number of trucks and
loaders in use in foundries almost* doubled.2 Their
'This report covers Standard Industrial Classification (sic) 332, iron
and steel foundries; and sic 336, nonferrous foundries (castings). Under
the U.S. Government’s sic classification system, establishments are
assigned industry codes on the basis of principal end product(s)
produced or services provided. Therefore, this report excludes analysis
and data (except where indicated) pertaining to “captive” foundry
departments of manufacturing plants where the castings produced are
incorporated in a wide range of consumer and industrial end products.
According to Foundry Management and Technology (see references at
end of chapter), there are more than 1,100 “captive” foundry
departments of all types in U.S. manufacturing plants which, combined,
produce a reported 45 percent of total castings output. Although these
“captive” foundries are outside the scope of this report, the new
developments in technology and their implications, described in this
report, would likely be applicable to them as well.
2Equipment inventory data included in Foundry, April 1964, and
Foundry Management and Technology, April 1978. The equipment
inventory data cited include U.S. and Canadian foundries as well as
foundries operating as part of another establishment (“captive”
foundries). Thus, these data relate to an industry broader in scope than
sic 332, iron and steel foundries and sic 336, nonferrous foundries.
10
Table 1.
Major technology changes in the foundry industry
L a b o r im p lic a tio n s
D e s c r ip t i o n
T e c h n o lo g y
D iffu s io n
N e w a n d i m p r o v e d tr u c k s , c r a n e s , a n d h o i s t s a r e r e p la c in g
I m p r o v e d m a te r ia l h a n d lin g te c h
M e c h a n iz a t io n o f m a te r ia l h a n
le s s
th r o u g h
n o lo g y
to
d l in g
is
f o u n d r y o p e r a t i o n s . I m p r o v e d c o n v e y o r s y s t e m s f o r m o ld
red u ce
m anual
im p r o v e
1963
and
h a n d li n g , t r a n s p o r t o f m o ld i n g s a n d , a n d o t h e r p r o d u c t io n
sa fe ty ,
and
t a s k s a l s o a r e b e in g d iff u s e d m o r e w id e ly .
M a t e r i a l h a n d li n g
r e q u ir e m e n ts .
e ffic ie n t
e q u ip m e n t
to
tra n sp o rt
m a te r ia l
has
th e
c a p a b i li t y
ta sk s,
lo w e r
u n it
la b o r
num ber
per
i n c r e a s in g .
1977,
average
o f tru ck s a n d
fo u n d ry
(fr o m
B e tw e e n
th e
2 .5
lo a d e rs
n e a r ly
d o u b le d
t o 4 .9 ) a n d
conveyor
fo o ta g e
average
p e r fo u n d r y
r o s e f r o m j u s t u n d e r 7 0 0 f e e t to
l , 10 0 f e e t . F u r t h e r e x t e n s i o n o f
c o n v e y o r i z a t i o n is a n t ic i p a t e d .
m o ld i n g
A d v a n c e s in m o l d i n g a n d c o r e
F u r th e r
t e c h n o l o g y in c lu d e t h e in t r o d u c t i o n o f a u t o m a t i c , f le x i b le
m a k in g t e c h n o l o g y h a v e lo w e r e d
p a t e d , w it h c o n t in u e d a d o p t i o n
e q u i p m e n t s u i t a b l e fo r s m a ll a n d m e d iu m - s i z e f o u n d r i e s ,
u n it
o f t e c h n o l o g i e s w e l l s u ite d f o r
fu r th e r
M o ld in g a n d c o r e m a k i n g
Im p ro v e m e n ts
in
a d o p tio n
c o n v e n t io n a l
p ro cesses.
In
a u to m a tic ,
and
i n c lu d i n g
c o r e m a k in g ,
fa ste r
m o ld i n g ,
la b o r
r e q u ir e m e n ts
fo r
advances
are
a n t ic i
and
s p e c ia liz e d
m o ld e r s , r e d u c e d m a n u a l l a b o r
s m a ll
th e s h e ll a n d
in v e s t m e n t
in s h a k e o u t a n d c le a n i n g o p e r a -
r ie s . N o - b a k e m o ld i n g a n d n o n -
m ore
a t i o n s , a n d r a is e d p r o d u c t iv i t y .
t h e r m a l c o r e m a k i n g w ill b e e m
e q u i p m e n t is
A t o n e f o u n d r y w h ic h c o n v e r t e d
p l o y e d m o r e w id e ly . S p e c i a li z e d
t o n o - b a k e m o ld i n g , o u t p u t p er
p ro cesses
m o r e w id e ly , b u t in c re a se d c o s ts
t e r ia l a n d
t e c h n o lo g y
n o -b a k e
sa n d
w o r k e r r o s e 15 p e r c e n t a n d m a
m o ld in g
of
or green
w ill lim it d i f f u s i o n .
m ore
c y c li n g
e n e r g y - e f f i c ie n t ,
p r o d u c t io n
r e p la c i n g o l d e r c o r e m a k i n g e q u i p m e n t .
energy
r e q u ir e m e n ts
and
m e d iu m - s i z e
a lso
w ill
fo u n d
b e a p p lie d
w ere lo w e r e d . N e w c o r e m a k in g
t e c h n o l o g y , w h ic h b y p a s s e s th e
b a k in g o p e r a tio n , h a s c o n t r ib
u t e d t o l o w e r u n it l a b o r r e q u ir e
m e n ts .
D ie c a stin g
M a jo r
d e v e lo p m e n t s
c a p a c it y
i n c lu d e
m a c h in e s a n d
th e
i n s t a l la t io n
of
la r g e r
m o r e e x te n s iv e u se o f a u to m a tic
R ed u ced
u n it
la b o r
r e q u ir e
m e n ts f o r m a c h in e o p e r a t o r s .
D ie c a stin g a c c o u n te d fo r 6 0 p er
c e n t o f to ta l n o n fe r r o u s c a s tin g
c o n t r o l . R o b o t s a r e b e i n g u s e d o n a lim it e d b a s is in c a s t i n g
p r o d u c t io n in 1 9 7 7 , c o m p a r e d to
e x tr a c t io n ,
48
q u e n c h in g ,
and
p o s itio n in g
fo r
fu r th e r
p ercen t
m e n ta l
p r o c e ssin g .
in
w ork
1963.
D e v e lo p
is c o n t in u in g
to
m a k e fe r r o u s d i e c a s t in g a p r a c
tic a l p r o d u c t io n m e t h o d .
M e lt in g a n d p o u r i n g
E le c tr ic
fu r n a c e s
fo r
m e l t in g a n d
m e c h a n iz e d
p o u r in g
M e c h a n iz e d
lo w e r
s y s t e m s a r e b e in g in tr o d u c e d m o r e w id e ly .
u n it
p o u r in g
la b o r
s y s te m s
r e q u ir e m e n ts
fo r m eta l p o u rers.
T h e n u m b e r o f e le c t r ic f u r n a c e s
in
use m o re
t h a n d o u b le d
be
t w e e n 1 963 a n d 1 9 7 7 . H o w e v e r ,
c u p o l a s a r e e x p e c t e d to r e m a in
th e m a jo r u n it f o r m e l t in g ir o n in
la r g e
q u a n titie s .
M e c h a n iz e d
p o u r i n g s y s te m s a r e b e in g u s e d
in a lim ite d b u t g r o w i n g n u m b e r
o f h ig h p r o d u c t io n f o u n d r i e s .
A l t h o u g h t e c h n o lo g i c a l c h a n g e h a s b e e n r e la t iv e ly s l o w in
The
of
F u rth er
i n s t a l la t io n
f in i s h in g
C l e a n i n g a n d f in i s h in g
c a s t i n g s a re e x p e c t e d t o c o n t in u e
c a p a c it y
c le a n i n g a n d f in i s h in g
fro m
a n d c le a n i n g , g a i n s in e f f i c i e n c y
h a v e r e s u lt e d
c le a n in g
and
f in i s h in g
of
h ig h e r
s e v e r a l i n n o v a t io n s . T h e s e i n c lu d e i m p r o v e d b a tc h
t o b e l a b o r in t e n s i v e e v e n t h o u g h
t e c h n o lo g y
a n d c o n t i n u o u s b la s t c le a n i n g , m o r e p r o d u c t iv e a n d s a fe r
p r o d u c t iv i t y g a in s f r o m n e w in
c h a n g e s a r e e x p e c t e d to f a c ilit a te
h a n d to o ls , a n d
advanced
m a te r ia l h a n d li n g e q u i p m e n t .
N e w t e c h n o l o g y fo r d u s t r e m o v a l , v e n t il a t i o n , a n d lig h t in g
is
e x p e c te d .
T h ese
n o v a t i o n s a r e a n t ic i p a t e d . O n e
th e h a n d lin g o f h ig h e r le v e ls o f
fo u n d r y
o u tp u t m a d e p o s s ib le b y in n o v a
w h ic h
h a s b e e n in t r o d u c e d t o c o m p l y w it h F e d e r a l G o v e r n m e n t
m od ern ,
r e g u la t i o n s .
s y s te m
in t r o d u c e d
m u lt i s t a t io n
a
conveyor
t io n s in o t h e r d e p a r t m e n t s .
r e p o r te d t h a t o u t p u t o f
c a s t i n g s p e r g r in d e r o p e r a t o r
r o s e b y 12 7 p e r c e n t, a n d o u t p u t
o f c a s t i n g s p e r w e l d e r w a s h ig h e r
b y 2 0 0 p e r c e n t. I n t h e la te s t t e c h
n o l o g y f o r c le a n i n g a n d f in i s h
in g ,
th e
p e r fo r m s
o p e r a to r
c e r t a in
no
lo n g e r
g r in d in g a n d
c le a n i n g s t e p s , w it h s a f e t y a n d
e ffic ie n c y im p r o v e d .
I n str u m e n ta tio n
Im p roved
in s t r u m e n t a t i o n
fo r
in s p e c tio n ,
t e s t in g ,
and
m e a s u r e m e n t h a s i n c r e a s e d q u a l it y o f c a s t i n g s . E l e c tr o n ic
Im p roved
in s tr u m e n ta tio n
has
r a is e d q u a l it y c o n t r o l s o t h a t le s s
c o m p u t e r s f o r b u s in e s s a n d p r o d u c t io n c o n t r o l a p p l ic a t io n s
l a b o r is r e q u ir e d in t h e c le a n i n g
a n d p r o g r a m m a b l e c o n t r o l l e r s a r e b e in g i n t r o d u c e d m o r e
a n d f in i s h in g d e p a r t m e n t .
w id e ly .
E x p a n d e d u s e o f i n s t r u m e n t s is
e x p e c t e d t o c o n t in u e .
heat, dust, and manual labor. No-bake sand is readily
reclaimable, reducing acquisition and disposal costs. One
foundry which converted to no-bake to turnout castings
for large pumps anticipates a 15-percent gain in output
with the same labor force in addition to savings in energy
and other production costs.4
Specialized molding methods are employed to produce
a limited but growing volume of casting production.
These include the “investment” process, which has
experienced the greatest recent growth. The greater costs
of these specialized processes, due to more expensive
binders and patterns and the additional costs necessary
for special equipment, are expected to continue to restrict
their use. Applications are likely to remain limited to
instances where economies may be obtained in
subsequent machining, where extremely close tolerances
are a primary consideration, or when casting certain
alloys.
Coremaking technology also is undergoing change.
The growing replacement of older coremaking equipment
with more automatic, faster cycling equipment, including
core blowers, shooters, and shell core machines, is
reducing unit labor requirements for coremakers.
Features such as the production of several cores
simultaneously are raising coremaking efficiency. More
extensive use of the no-bake process and cold box
coremaking—which also does not require the baking
operation—save time, labor, and energy.
diffusion in smaller foundries affords a measure of
mechanization of material handling when the installation
of expensive, specialized types of equipment—efficient in
high-volume production work—is not feasible.
Improved conveyors being introduced in foundry
production operations are reducing unit labor require
ments. In mold handling, for example, improved
conveyor systems have accompanied the development of
high-output, automated molding systems in a growing
number of foundries. In these systems, molds are
transported from the machine, poured, and moved to
shakeout, and bottom boards and flasks are returned to
the molding machine on a continuous basis. Thus, unit
labor requirements in material handling tasks are lower
than in less mechanized systems. Conveyors also are
improving productivity in transporting molding sand and
in other material handling tasks. Average conveyor
footage in use in foundries is estimated to have increased
from just under 700 per foundry in 1963 to an average of
1,100 in 1977, with further extension of conveyorization
anticipated over the next decade.3
Molding am eoirem
id
silkiiinig
Advances in molding machine design continue to lower
labor requirements for molders in conventional or green
sand molding—the molding method used for more than
90 percent of industry output. Automatic, rapid-cycle
machines are being installed in an increasing number of
foundries; gains in molding productivity are a key benefit.
One significant development in molding technology is the
introduction of automatic equipment suitable for use in
small and medium-size foundries. These machines
incorporate a high-production molding capability
together with features allowing quick pattern changes and
noncontinuous cycling. They provide the flexibility
required for short production runs which make up much
of the work of these foundries. In many instances, firms
introducing automatic equipment in green sand molding
also are installing more efficient handling systems for
flasks, molds, sand, and cores.
The use of the no-bake process in about a third of all
foundries is a major development in molding operations.
No-bake molding, which utilizes a chemical reaction
between, typically, a resin binder and a catalyst to
produce the sand mold, is increasingly replacing the
traditional green sand method in many molding
applications. Compared to green sand molding, which
involves the compaction of sand, clay, and water, no-bake
is a simpler production process which offers the
advantages of lower capital, energy, and direct labor
requirements as well as reduced scrap. The process is
used, ideally, in conjuction with a shot-blast reclamation
system in which the mold is broken down, the casting
cleaned, and the sand reclaimed and reconditioned by a
single piece of equipment. This procedure eliminates the
need for a separate shakeout operation with its attendant
DSeeaiSSing
The installation of larger capacity machines is a major
development underway in diecasting. Larger machines
make possible an increase in the number of cavities per die
and in the size of the cast part. Production tasks,
including metal feeding, casting removal, die lubrication,
and temperature control, are being regulated automati
cally in an increasing number of diecasting establish
ments. Robots also are being used increasingly for such
tasks as casting extraction, quenching, and positioning
for further processing.5
These innovations are improving casting quality and
reducing unit labor requirements for diecasting machine
operations. The greater efficiency made possible by
advances in diecasting technology is reflected partially in
the 30-percent increase in output of diecastings during
1963-77, a period when the number of diecasting
machines in use declined by 12 percent.6
Diecasting, limited to casting of certain nonferrous
metals, is growing in importance and accounted for 60
percent of total nonferrous casting production in 1977,
4Foundry Management and Technology, December 1978, p. 76.
5Robert C. Cornell, “Automation in Diecasting—an Update,’
Foundry Management and Technology, April 1978, pp. 208-214.
6Output data are from Current Industrial Reports, Bureau of the
Census, U.S. Department of Commerce, Summaries for 1963 and 1977.
Data on diecasting machine inventory are from Foundry, April 1964,
and Foundry Management and Technology, April 1978.
3Foundry, April 1964, and Foundry Management and Technology,
April 1978.
12
Rolbofi placing dliecast! transmission housing on conveyor
Automatic metal-pouring machine
13
compared with 48 percent in 1963. The demand for weight
reduction in automotive applications is contributing to
growth in diecasting. Diecasting of iron and steel has been
deterred by the high melting temperature of these metals.
However, developmental work is underway to make
ferrous diecasting a practical production method.
The potential for productivity gains in finishing and
cleaning is significant. One foundry which introduced a
modern, multistation conveyor system reported that
output per grinder operator rose from 75 to 170 castings
per shift, and output per welder increased from 100 to 300
castings per shift.8
Rfeltag and p©umg
The use of electric melting furnaces as both primary
melters and holding and refining units is increasing.
Electric furnaces have the capability for close control of
melt temperature and composition and increased use of
scrap metal. They also have the advantage of flexibility of
batch type melting and incur fewer pollution control
problems compared to cupola melting. The number of
electric furnaces in use more than doubled between 1963
and 1977; they account for the bulk of total steel castings
production and a significantly smaller but growing
proportion of iron castings output. Although the number
of cupolas declined between 1963 and 1977 as electric
furnaces became more widespread, they are expected to
remain the major units for melting iron in large
quantities. Cupolas are expected to be used increasingly
in combination with electric holding furnaces.
Mechanized pouring systems, some featuring automa
tic control, are being employed in a limited but growing
number of foundries. Advantages of these systems
include improved control of temperature and other
variables, a reduction in labor requirements of metal
pourers, a significant cutback in the number of castings
rejected, improved working conditions, and energy
savings.7
Instrumentation
Expanded use of instruments for inspection, testing,
and measurement is improving casting quality. New types
of inspection and testing equipment introduced during
the 1970’s include sonic, ultrasonic, and eddy current.9
More extensive use of conventional inspection and testing
equipment for strength and hardness determination also
is underway. Because of more extensive instrumentation,
quality control is improving and less labor is required to
repair castings in cleaning rooms prior to shipment.
Control of quality is of growing importance as demand
has increased for lighter weight and higher strength
castings.
A growing number of foundries are utlizing computers.
According to a survey by the Cast Metals Federation,
iron and steel foundries are using computers for a
diversity of applications ranging from standard payroll
and accounting functions to process control of melting
and other production tasks.1 This survey also revealed
0
that a number of smaller foundries which cannot justify
onsite computers are utilizing computer service bureaus.
The application of computers to foundry operations
reportedly has brought about efficiency gains including
energy savings. One foundry which installed computer
control of arc melting of iron reported a 15-percent
savings in electric power costs.
Cieaniimg antil finishing
The cleaning and finishing of castings are expected to
remain relatively labor intensive, although equipment is
increasingly available to eliminate manual work.
Chippers and grinders, who work with power and hand
tools, are among foundry workers whose jobs involve
substantial manual tasks.
Advances in cleaning and finishing operations have not
matched those in other foundry departments. Conse
quently, the productivity potential of mechanized
molding and coremaking often cannot be fully realized
because the cleaning and finishing department cannot
handle increased casting production.
Some technological improvements in finishing and
cleaning are raising efficiency. Among the most
important are improved batch and continuous blast
cleaning equipment; more productive and safer hand
held tools, which are the predominant technology for
grinding, chipping, welding, and polishing; and improved
conveyor lines and related handling equipment. In
addition, the foundry industry has installed new
technology for dust removal, ventilation, and lighting.
Bimdustiry Stry©te@
The trend to larger and more mechanized foundries is
expected to continue. Between 1963 and 1977, the number
of iron and steel foundries declined slightly (by 2 percent)
and the number of nonferrous casting establishments
remained virtually unchanged." However, employment
in both major foundry industries increased over this
period with the result that, by 1977, employment in iron
and steel foundries averaged 157 workers per foundry, up
by 18 percent, and employment in nonferrous foundries
averaged 47 workers, higher by 24 percent.
Although the total number of establishments fell in the
two broad industry groups covered in this report, the
number increased in some industry sectors. In steel
^Wallace D. Huskonen, “Conveyorization of Castings Cuts Cleaning
Costs,” Foundry, November 1973, pp. 49-51.
““Foundry Equipment Inventory and Buying Plans,” Foundry
Management and Technology, April 1978, pp. 34-36.
'““Foundry Use of Electronic Data Processing,” Foundry Manage
ment and Technology, March 1977, pp. 112-114.
’Wallace D. Huskonen, "Roundup of Mechanized Pouring Systems,”
Foundry Management and Technology, March 1976, pp. 28-40.
"U.S. Department of Commerce, Bureau of the Census. 1977 data
are the latest available.
14
foundries, for example, the number of establishments
increased significantly between 1963 and 1977. The
number of aluminum foundries was higher by 9 percent,
due in part to new applications for aluminum castings,
particularly in the auto industry. In contrast, the number
of gray iron foundries declined by 16 percent over this
period.
The general shift to a more capital-intensive industry
has been a factor in the increase in the proportion of
larger foundries. From 1963 to 1977, the number of iron
and steel foundries employing 250 or more workers
increased by 8 percent, and the number of nonferrous
foundries of this size rose by 4 percent. In contrast, iron
and steel foundries employing less than 50 workers
declined by 4 percent over this period, and nonferrous
foundries in this size group fell by 8 percent. Factors
contributing to the decline in smaller foundries include
their inability to obtain or justify the substantial and
increasing capital investments required to modernize to
be competitive with larger foundries, or to acquire the
expensive technology needed to comply with Federal and
State requirements on pollution and worker health and
safety.
©ytput sod Productivity Outlook
Oytpyt
The rate of growth in output in the past two decades has
been uneven. Over the entire period 1960-80, output of
iron and steel castings (Federal Reserve Board data)
increased at an average annual rate of 1.6 percent, and
output of nonferrous castings rose at a slightly higher
rate—1.9 percent. For 1960-67, however, output of iron
and steel foundries increased at a substantially higher
annual rate of 7.7 percent, and nonferrous foundries at an
even higher rate—9.9 percent. Between 1967 and 1980, in
contrast, foundry output was sharply lower, with output
of iron and steel foundries decreasing by an annual rate of
0.3 percent and nonferrous output declining at a rate of
0.8 percent. Output for both segments of the foundry
industry peaked in 1973. Over the period 1967-73, output
in iron and steel foundries increased at an average annual
rate of 1.8 percent and in nonferrous foundries by 0.1
percent; in contrast to 1973-80 when output in iron and
steel foundries declined at an average annual rate of 2.6
percent and in nonferrous foundries at a 1.3-percent rate
annually.
Produetiwity
Productivity has increased in the major sectors of the
foundry industry for which BLS publishes measures.1
2
Output per employee hour in gray iron foundries (Sic
12Bls productivity measures are published for two of the three major
components of iron and steel foundries (sic 332). An index for malleable
iron foundries is not available. However, employment in gray iron and
steel foundries, combined, accounts for over 90 percent of iron and steel
employment. Bls productivity measures are not published for
nonferrous foundries (sic 336).
3321) rose at an annual rate of 2.3 percent during the
longer term 1960-79, while output per employee hour in
steel foundries (SIC 3324, 3325) increased at a lower
annual rate of 1.0 percent over the same period.
Productivity gains varied within the period. Output per
employee hour in gray iron foundries rose at an annual
rate of 2.8 percent during 1960-67, and increased at a 2.4percent rate during 1967-79. In steel foundries, output
per employee hour increased at an annual rate of 2.5
percent during 1960-67, and 0.8 percent between 1967
and 1979.
The more recent period, 1973-80, was marked by a
steep decline in foundry output during 1974-75 as the
economy experienced a downturn. Following a recovery
during 1975-79, output dropped sharply again in 1980 in
both segments of the industry.
Output per employee hour in both gray iron and steel
foundries declined during 1974-75 as output fell during
the general downturn in the economy. A recovery
followed in gray iron foundries, with output per employee
hour up at an annual rate of 1.6 percent during 1975-79
and output higher by 3.4 percent annually.1 However, in
3
steel foundries, output per employee hour continued to
decline over this period while output increased at an
annual rate of 1.2 percent.
Although productivity measures for nonferrous
foundries are not published by BLS because of data
limitations, it appears that productivity followed a trend
similar to iron and steel foundries and rose during
1960-79. Over this period, output (Federal Reserve
Board data) rose by 2.3 percent annually and total
employment (BLS data) increased at a lower annual rate,
1.5 percent.
While the impact of new foundry technology on
industrywide productivity cannot be measured precisely,
unit labor requirements frequently are lower following
installation of new equipment. At one plant which
installed an automated molding system featuring
automatic equipment and advanced material handling,
for example, direct labor per ton of castings declined
while other benefits accrued from the new molding system
including improved quality of castings and a reduction in
plant floor space.1 At another foundry which expanded
4
capacity by installing new, automatic molding systems
and electric furnaces, labor requirements per ton of
castings declined by about 30 percent with further savings
anticipated. The extent to which foundry technology with
labor-saving potential will be diffused more widely
depends largely on the availability of funds for capital
improvement over the decade of the 1980’s.
l3The output used in bls productivity measures is based on value of
shipments (Bureau of the Census) and therefore differs from the
physical output data (fr b ) discussed in the preceding section.
l4John R. Bates, “High Production Molding Through Automation.”
Remarks presented at the First National Congress on Technology for
Productivity, sponsored by The American Society for Metals and
presented by Foundry Equipment Manufacturers Assoc., Inc., Detroit,
Oct. 21, 1971.
Investment
Expenditures for new plant and equipment have been
increasing as foundries modernize and expand or replace
existing capacity. By 1976, expenditures by iron and steel
foundries (in constant 1972 dollars) totaled $458 million
and in nonferrous foundries, $81 million—well above the
1960 levels of $119 million and $54 million, respectively.1
5
Capital expenditures per production worker also have
risen sharply. In iron and steel foundries, expenditures
per production worker (in constant 1972 dollars) totaled
$2,559 in 1976, compared with $703 in 1960. In
nonferrous foundries, the increase was less dramatic but
nonetheless substantial—from $939 per production
worker in 1960 to $1,167 in 1976. As foundries further
mechanize during the 1980’s, capital outlays are expected
to continue to rise. Levels of spending will depend on the
state of the economy, developments in technology,
environmental requirements, and related factors.
Employment and Occupational Trends
Employment in foundries has been increasing relatively
slowly (charts 4 and 5). Between 1960 and 1980,
employment in iron and steel foundries increased at an
annual rate of 0.7 percent. During 1960-67, the number of
employees working in iron and steel foundries rose at a
substantially higher rate, 3.2 percent, but during 1967-80
declined at a rate of 0.1 percent. The employment trend in
nonferrous foundries also was up over the longer term,
1960-80, at an annual rate of 1.4 percent. For the period
1960-67, employment in nonferrous foundries increased
at the relatively high annual rate of 5.4 percent. This
growth rate was not maintained during 1967-80 when
employment increased at an annual rate of only 0.3
percent.
Total employment in iron and steel foundries peaked at
249,700 in 1974 but by 1980 had fallen to 204,500—over
45,000 workers below 1974, with three-fourths of the
decline occurring in 1980. Employment in nonferrous
foundries reached a record high of 99,400 in 1979 before
declining to 89,700 in 1980. In both iron and steel and
nonferrous foundries, employment dropped sharply in
1974-75 (by 8 percent and 20 percent, respectively) when
production of castings declined as the economy
slackened. In iron and steel foundries, the proportion of
production workers during the period of 1960-80
declined from 85 percent to 80 percent of the work force.
In nonferrous foundries, this trend was evident to a lesser
extent; the proportion of production workers declined
from 83 percent in 1960 to 80 percent in 1980.
The outlook is for foundry employment to increase
l5The capital expenditures data are unpublished, deflated gross total
annual investment series developed in the bls. Office of Economic
Growth. See Capital Stock Estimates fo r Input-Output Industries:
Methods and Data, Bulletin 2034 (Bureau of Labor Statistics, 1979).
Expenditures data for 1976 are the latest available.
16
during 1980-90, according to BLS projections based on
three versions of economic growth.1 The number of
6
employees in iron and steel foundries is expected to
increase at an annual rate ranging between 3.9 and 4.2
percent during 1980-90, a substantial increase over the
rate during 1967-80, and higher also than the rate during
the longer term period 1960-80. In nonferrous foundries,
the rate of change in employment during 1980-90 is
projected to range between -0.1 and 0.6 percent—lower
than the rate during the longer period from 1960 to 1980.
Occupations
The general trend to more extensive mechanization in
foundries is expected to continue to alter the structure of
occupations. Foundries are employing proportionately
larger numbers of engineers, technicians, and mainte
nance workers in response to more extensive and complex
production equipment.
Production workers have declined relative to the total
foundry work force, and the composition of occupations
within this large category also is changing. In general, a
further decline in the proportion of occupations which
involve largely manual tasks is anticipated. Fewer hand
molders and coremakers will be required, for example, as
automatic machinery, no-bake processes, and other
improvements are adopted more widely. The more
widespread use of improved trucks, hoists, conveyors,
and related equipment will require fewer hand laborers
but more truck operators to move materials through
production tasks. More maintenance mechanics and
repairers will continue to be needed to service more
complex equipment. Industrial robots are expected to
assume some foundry job functions, including those in
environments where heat, dust, noise, and fumes prevail.
The structure of occupations in the more highly
mechanized, larger foundries differs significantly from
that in plants of smaller size (about 80 percent of all
foundries employ fewer than 100 workers). In general, the
larger, more mechanized foundries which produce
castings in high volume use proportionately less unskilled
manual labor. The availability of highly mechanized
production equipment in the larger foundries also affects
the skilled work force in that proportionately fewer
molders and coremakers are required compared to
smaller foundries.
^Projections for industry employment in 1990 are based on three
alternative versions of economic growth for the overall economy
developed jy bls. The low-trend version is based on a view of the
economy marked by a decline in the rate of expansion of the labor force,
continued high inflation, moderate productivity gains, and modest
increases in real output and employment. In the high-trend version I, the
economy is buoyed by higher labor force growth, much lower
unemployment rates, higher production, and greater improvements in
prices and productivity. The high-trend version II is characterized by the
higher gnp growth of high trend I, but assumes the same labor force as
the low trend. Productivity gains are quite substantial in this alternative.
On charts 4 and 5, level A is the low trend, level B is high-trend I, and
level C is high-trend II. Greater detail on assumptions is available in the
August 1981 issue of the Monthly Labor Review.
Chart 4. Employment in iron and steel foundries,
1960-80, and projections for 1980-90
Employees (thousands)
350
Level B
150
Average annual percent change
All employees
1960-80 ............................................... 0.7
1960-67......................................... 3.2
1967-80...........................................-0.1
100
1980-90 (projections) ............ 3.9 to 4.2
Production workers
1960-80............................................... 0.4
1960-67......................................... 3.4
1967-80...........................................-0.4
50
0 «*
1960
1965
1970
1975
' Least squares trend method for historical data; compound interest method for projections.
Note: See text footnote 16 for explanation of alternative projections.
Source: Bureau of Labor Statistics.
17
1980
Chart 5. Employment in nonferrous foundries, 1960=80,
and projections for 1980=90
Employees (thousands)
120
Production workers
Average annual percent change 1
All employees
1960-80............................................... 1.4
1960-67......................................... 5.4
1967-80......................................... 0.3
1980-90 (projections)............ -0.1 to 0.6
Production workers
1960-80............................................... 1.4
1960-67......................................... 5.7
1967-80......................................... 0.2
1960
1965
1970
1975
Least squares trend method for historical data; compound interest method for projections.
Note: See text footnote 16 for explanation of alternative projections.
Source: Bureau of Labor Statistics.
18
1980
1985
1990
Adjustment of workers to technological Chang©
Although unit labor requirements have been lowered in
instances where new foundry technology has been ap
plied, the anticipated continued demand for castings is
expected to result in moderate employment gains through
1990. Widespread displacement due to new technology is
not foreseen, although the structure of occupations is
changing and job skills will likely be modified. Training
programs initiated by foundries, industry organizations,
and unions will be one major method of preparing the
work force for new job requirements.
Union contracts, which cover a majority of the foundry
industry work force, contain provisions which could be
useful in making adjustments to technological change. A
substantial majority of workers in iron and steel foundries
and approximately 60 percent of workers in nonferrous
foundries are employed in establishments with collective
bargaining agreements covering the majority of produc
tion workers.1 Contracts that include provisions relating
7
to seniority, grievances, retraining, supplementary
unemployment benefits, and related clauses are available
to assist workers in adjustment to any displacement
resulting from technological change. Additionally,
production workers in iron and steel and nonferrous
foundries are eligible for benefits when separated because
of technological changes or plant closings. Major unions
covering foundry workers are the International Molders
and Allied Workers of North America ( a f l -C IO ), the
United Steelworkers of America (A FL-C IO ), and the
United Automobile, Aerospace and Agricultural Imple
ment Workers of North America (Ind.).
17See the following Industry Wage Surveys of the Bureau of Labor
Statistics: Iron and Steel Foundries, September 1979, Bulletin 2085,
and Nonferrous Foundries, May 1975, Bulletin 1952. The former in
cludes establishments employing 50 workers or more; the latter en
compasses establishments employing 8 workers or more. Thus, al
though these surveys exclude a substantial number of small foundries,
they cover establishments which employ more than 90 percent of the
foundry industry work force.
SELECTED REFERENCES
Arnesen, David A. “Webb Forges Ahead in Material Handling,”
Iron Age, May 7, 1979, pp. 75-77.
Bennett, Keith W. “Die Casting’s New Era: Manufacturing Sys
tems,” Iron Age, May 7, 1979, pp. 71-73.
Chew, Robert Z., Jr.; Jack C. Miske; Robert S. Maddox; and David
D. Gibbs. “Charting Foundry Trends to 1982.” Panel Presenta
tion at Foundry Equipment Manufacturers Association 54th
Annual Meeting, Oct. 13, 1972. Hilton Head Island, S.C.
“Conveyers and No-Bake Molding Double Output per Manhour,”
Foundry Management and Technology, February 1978, pp.
96-97.
Cornell, Robert C. “Automation in Diecasting—an Update,”
Foundry Management and Technology, April 1978, pp. 208214.
“Foundry Equipment Inventory and Buying Plans,” Foundry
Management and Technology, April 1978, pp. 34-60.
Miske, Jack C. “Mechanized Casting Finishing,” Foundry Man
agement and Technology, September 1979, pp. 2 8 4 .
Schaum, Jack C. “Modernizing Coremaking,” Modern Casting,
February 1979, pp. 49-62.
Schaum, Jack C. “Modernizing Your Iron Melting Department,”
Modern Casting, September 1978, pp. 36-47.
Schaum, Jack C. “Modernizing Your Molding
Modern Casting, February 1978, pp. 49-69.
Operations,”
Seman, Norbert G. “Computer Utilization in the Foundry,”
Foundry Management and Technology, November 1978, pp.
44-57.
Suschil, Tony. “Modernizing Cleaning Operations,” Modern Casting,
September 1979, pp. 55-60.
Heine, Hans J. “Updating No-Bake Molding Systems,” Foundry
Management and Technology, February 1975, pp. 66-73.
Tomasch, Mark R. “Material Handling: Key to Foundry Mechani
zation,” Foundry Management and Technology, July 1978, pp.
26-36.
Miske, Jack C., and Hans J. Heine. “A Look at Automatic Metal
Pouring,” Foundry Management and Technology, February
1979, pp. 26-43.
U.S. Department of Commerce, Industry and Trade Administra
tion. U.S. Industrial Outlook— 1980, January 1980, p. 177.
Miske, Jack C. “Automatic Matchplate Molding Takes Off,”
Foundry Management and Technology, July 1977, pp. 40-48.
Weimer, George A. ‘“Lost Wax’ Process Spurs Order Book Bulge,”
Iron Age, Leb. 26, 1979, pp. 36-38.
19
C G u a p i t e i r 3 = M @ t ® i w © f f ,lk o in ig M a c h i n e r y
Employment in the industry stood at the relatively high
level of 371,500 persons in 1980. The average annual
increase from 1960 to 1980 was 1.4 percent (about the
same rate as for all durable goods manufacturing). The
outlook for employment growth from 1980 to 1990 is in
the range of 0.8 to 3.8 percent (average annual rates) as
projected by BLS, based on alternative versions of
economic growth. Increases are projected for virtually all
of the industry’s occupational groups, but the number of
craft workers is expected to grow only half as rapidly as
the number of operatives. A shortage of skilled workers
could remain a principal obstacle to expansion in the
metal-cutting machine sector for at least the immediate
future.
Summary
The metalworking machinery industry is rapidly
increasing the application of the numerically controlled
(N C ) machine tool. NC machines accounted for an
estimated 30 percent of the value of machine tools
installed in the metal-cutting machine tool sector in 1979.
Increased diffusion of NC is expected in the 1980’s in
response to a host of economic conditions, including the
advanced age and low productivity of the machine tools
in use, the need to meet increasingly precise and complex
requirements for machined parts, and the shortage of
skilled workers.
While utilization of NC machine tools is likely to
increase steadily among the industry’s large and mediumsize plants, the many small shops which manufacture
simple parts will still rely heavily upon manually operated
machine tools. Other, more sophisticated technologies
such as machining centers (multifunction NC machines),
controls utilizing sensors, and NC by computer are also
economically feasible, principally for the larger plants.
Complex microprocessors, which have fallen sharply in
price, permit firms of all sizes to use various intermediate
technologies which are not as sophisticated as NC. In
general, these technologies increase output per employee
hour, improve quality, and reduce occupational skill
requirements.
Although definitive measurements of productivity for
the industry as a whole are not available, very small
productivity improvement in 1960-78 is suggested by an
average annual rise in output of about 2 percent and in
employee hours of less than 1 percent. Wide swings in
output—with associated lags in adjustment of hours—
and aging equipment are major reasons for the industry’s
comparatively low productivity growth rate.
While the industry’s dollar outlays for new plant and
equipment rose by nearly two-thirds from 1966 to 1978,
expenditures in real terms did not surpass the 1966 peak.
Real expenditures rose to a comparatively high level in
1974, declined in 1975, and then rose in the succeeding 3
years. They have generally continued to increase, and this
may enable manufacturers to compete more effectively
with imports for the large tooling requirements of
automobile, commercial aircraft, and defense-related
manufactures.
Dm
idlysftiry Stiry^fiyir®
This study examines the metalworking machinery
industry as a whole (SIC 354) and three major sectors
within the industry: Metal-cutting machine tools (SIC
3541); special dies and tools, die sets, jigs and fixtures, and
industrial molds (SIC 3544); and machine tool accessories
and measuring devices (SIC 3545). Reference is also made
to metal-forming machine tools (SIC 3542). The other
metalworking sectors not covered in this study are:
Power-driven handtools; rolling mill machinery and
equipment; and such machinery as gas cutting and
welding equipment.
Some characteristics of this industry tend to limit
productivity growth. An estimated three-fourths of the
industry’s output is in batches of less than 50 pieces. This
holds true particularly for the machine tool makers, who
often produce special machines for their customers, and
for the tool-and-die firms, which frequently produce oneof-a-kind parts. Moreover, establishments in metalwork
ing are comparatively small and highly specialized. Such
firms often find it economically unfeasible to invest in
new equipment. For example, the tool-and-die sector of
the industry (SIC 3544) is made up of 7,100
establishments, averaging only 15 employees. In
comparison, the average size of all manufacturing
establishments is 55 employees. Additionally, the sharp
fluctuation in industry output over the course of the
business cycle tends to reduce productivity growth.
20
T e!h S §jy m th@ 1S8©5
@ )[ri)© ©
) s
of shipments was estimated to be 30 percent of all
machine tools installed in 1979.
The reason for the lack of diffusion of NC throughout
the metalworking machinery industry is the small size of
the majority of the firms; they have limited funds for
investment in this comparatively expensive technology.
Although NC is intended for small batch operations, the
risk of investment may be too great because of the
volatility of demand for the industry’s products.
Moreover, firms producing simple parts are unlikely to
utilize NC. In addition, NC is not feasible, technically, for
some machining methods, such as broaching. It is also
interesting to note that surveys disclose that only a few of
the general managers in firms without NC fully
understood its workings.3
Currently, except for a small number of comparatively
large firms which use advanced sophisticated NC, most
machine tool shops still rely heavily upon skilled workers
working on conventional tools. Nonetheless, numerous
modest-sized contract tool-and-die shops—also referred
to as contract tooling and machining shops—have
adopted NC because they do a significant amount of
precision machining.
However, if, as expected, NC replaces a large
proportion of conventional tools in the 1980’s, it could
have considerable impact on the metalworking industry.
The application of NC should be accelerated by shortages
of skilled workers and by the growing need for parts of
greater precision. Adding urgency is the steadily
increasing demand for variety and versatility in products.
Firms which introduce or expand their use of NC can
experience pronounced savings in labor and material. A
study of over 350 companies4disclosed direct and indirect
savings of NC over manually operated tools. Reduced
machining time ranged from 35 to 50 percent. Indirect
savings of 25 percent or higher were found for material
handling, scrap, and inspection. A majority of firms did
not even have higher outlays for NC programming if
“process planning” on conventional machines is taken
into account.
With the introduction of NC, the occupational
composition of the work force generally changes. The
number of machine operators is likely to decline for a
given level of production, since one person can often
operate two NC machines. In many cases, skill
requirements are reduced. For example, operators no
longer need to interpret a blueprint in selecting machine
settings. On the other hand, they must be perceptive to a
malfunction. Some firms try to enhance the duties of the
operator of a very expensive NC machine to make the job
Numerical control (NC) of machine tools is the most
significant new technology introduced in the metalwork
ing industry in the past 25 years. It has experienced
substantial and frequent changes in concept and/or
design. However, some metalworking firms are investing
in intermediate technologies, i.e., technologies which are
not as sophisticated or expensive as NC, but which
nevertheless improve productivity. These include digital
readouts and manual-data-input controls which are
applied largely to conventional machine tools. Innova
tions have also taken place in management techniques
and cutting-tool materials. The major technologies, their
diffusion, and their labor impact are discussed in more
detail below and are presented in table 2.1
Nymeiroeally controlled machine tools
Numerical control (NC) involves the automatic control
of a machine tool’s movement by an electronic controller
or special computer which reads instructions in digital
form. NC tools are more productive than manually
operated tools. They reduce setup time; consequently a
higher proportion of working time is spent on cutting.
The need for costly jigs, templates, and other tooling
devices is eliminated. NC tools can produce parts with
greater precision and uniformity, thereby further saving
machining time and minimizing scrap losses. NC may
make possible the production of complex parts that could
otherwise not be turned out, or only at great cost; and the
process permits engineering changes on a part by merely
changing portions of the input program.
NC enhances managerial control by predetermining
and coding every stage of machining onto a control tape.
It becomes possible for managers to plan more accurately
such operations as machine loading and shop scheduling,
and it is much easier to predict labor and machine
requirements.
NC provides the opportunity to attain some automation
in the small batch production which characterizes this
industry. The innovation may be more fully appreciated
by characterizing NC as a manufacturing system, and not
merely a means to control a machine.
Despite the advantages of NC, only about 3 percent of
all metal-cutting tools in the metalworking industry in
1976-78 were NC.2 However, they accounted for a much
larger proportion of output. Another indication of the
importance of NC is the value of recently installed NC
machines. In the metal-cutting machine tool sector, value
'This study does not include the more than 20 technologies that
are identified as nontraditional machining processes, although
production and application of some of these processes are
increasing. Two of these are electrochemical machining and
electrical discharge machining. Electrical discharge machining
is used widely in tool-and-die shops.
3Edwin Mansfield and others, Research and Innovation in the
Modern Corporation (New York, Norton and Company, Inc.,
1971), pp. 201-202; George P. Putnam, “Why More NC Isn’t Being
Used,” Machine and Tool Blue Book, September 1978, pp.
2“The 12th American Machinist Inventory of Metalworking
Equipment 1976-78,” American Machinist, December 1978, p.
136.
4Donald N. Smith and Lary Evans, Management Standards fo r
Computer and Numerical Controls (Ann Arbor, University of
Michigan, 1977), pp. 185, 192, 212, 214, and 222.
100- 101.
21
attractive to a skilled machinist. The new position of
programmer required with NC is being filled in a growing
number of firms by skilled machinists who have received
supplementary training. A somewhat larger number of
maintenance personnel may be required, and their skill
requirements are higher, calling for special training. In
general, NC machinery is operated in two or three
workshifts, without comparable labor additions on the
later shifts.
can be justified whether the volume of parts is small or
large.
Nevertheless, this technology has only been minimally
adopted by the metalworking machinery industry. There
are many reasons for this slow acceptance, including high
initial cost, simple products which are unsuitable for
machining centers, and lack of managerial knowhow.
G m C control by ©®mpyt@[r
^ym eirD ffll
Adaptive controls utilize sensors that automatically
control such factors as vibration, tool wear, tool or
workpiece deflection, and cutting temperatures. Such
sensors can be integrated within an NC controller, or they
can operate with conventional machine tools. Although
the technology has been available for about 20 years, the
application of these controls in metalworking machinery
is limited to large shops. Utilization by small shops will
depend upon development of improved sensors, their cost
effectiveness relative to the availability of skilled workers,
and the type of work performed.
Reported improvements in productivity in currently
available controls range from 20 to 40 percent, with
largest gains when a part requires diverse cutting condi
tions and the material is hard to machine. Besides im
proved machining time, scrap and cutter breakage are
reduced.5
Sensory devices tend to reduce worker skill require
ments because they assume many functions traditionally
performed by the operator. These devices help to
standardize unit labor time. While machining time on an
identical part can vary by over 30 percent for different
operators, adaptive controls virtually eliminate the
differences.
Adaptive ©©fmtrols
According to some experts, the combination of the
computer with NC in small batch production compares in
impact to the introduction of the assembly line and
interchangeable parts. Software advances in the late
1960’s made it possible for a computer to convey
numerical data directly to a machine control unit, thereby
eliminating the need for a special control system to
operate a machine tool by tape commands. Computer NC
(CNC), first with minicomputers and later with
microcomputers, made it possible to operate one or more
machines and even to connect to larger computers. CNC
eliminates the problem of the constant redoing of tape.
Also, workpiece program data can be changed in the
control system without the necessity for reading an entire
program tape. A computer can also keep track of the time
each machine tool is in use.
A significant proportion of the NC units in the
metalworking industry are the CNC type. Costs of
electronic controls have declined so sharply in recent
years that some CNC units are competitive with tapedriven control units and are economically feasible for
small and medium-size firms. Whereas minicomputers
accounted for 50 percent of the cost of a CNC tool in the
late 1960’s, they now account for less than 20 percent. All
the reasons for the lack of diffusion of NC apply even
more to CNC. And direct numerical control (D N C ), in
which a central computer may control up to 100 or more
machine tools, is currently used by only a few of the larger
toolbuilders in the metalworking industry.
The principal new job classifications arising from the
use of CNC are computer programmers, electronic
maintenance personnel, and, in some firms, systems
analysts. Personnel skilled in preventive maintenance
assume great importance with CNC, and machine
problems require a multiskill approach.
Compyter-siidledl design aim msinyfactyr©
ed
Computer-aided design and computer-aided manufact
ure (cad / cam ) constitute a system which utilizes
computer-controlled methods to unite several technologies.
Computers are used to assist in developing designs for
products to be manufactured (C A D ). CAM, among other
things, directs numerically controlled machines and
automatically guides workpieces among machines on
computer-controlled material handling systems. CAD/CAM
is influenced by continuing improvements and applica
tions in various phases of manufacturing, including:
Assembly with industrial robots; adaptive control;
systems to monitor maintenance; and systems to inspect
parts automatically. The total impact on productivity and
the work force is substantially greater than that of any
single technology.
Currently, only the largest machine tool manufacturers
utilize CA D/CAM . Its diffusion to medium-size firms will
continue to be severely limited by cost and lack of
technical expertise.
Higher productivity resulting from adoption of CAD/CAM
is associated with the shift of workers to more skilled jobs
Machining centers
Machining centers are more elaborate and costly than
basic, single-purpose NC. The centers may have automatic
tool-changing systems for selecting among 20 to 100 tools
that bore, drill, mill, and tap. With rotary heads and
tables, a center can work on many surfaces of a part in a
single setup. The centers substantially improve manager
ial flexibility. Moreover, they raise productivity because
tool changing is less than on basic NC; one operator may
control several machines. While NC may be most suitable
for low-volume metalworking shops, a machining center
5D.N. Smith and L. Evans, op. tit., pp. 123, 129, 151.
22
and the reduction in the number of lesser skilled jobs.
Skilled machinists continue to be needed. The number of
drafting personnel is reduced because of less need for
extensive lettering and layouts. Some workers have to be
retrained for new tasks associated with computer
terminals. In addition, worker involvement in decision
making will increase although it will be informal, unlike
the practice in some other industries.6
machine position, but the MDI also enables an operator to
change the machine’s position automatically, reducing
further the chance of error. Many M D l’s can be
transformed into NC systems by inserting a tape reader;
most current NC systems contain editing capabilities to
accept programs manually. MDI usually controls simpler
machines and turns out simpler workpieces than does NC.
Further, some firms do not want or may be unable to add
NC machines. A major difference is that an MDI machinist
(and not a programmer, as with NC) usually plans and
enters the program for a part.
Increased use of m d i in recent years by the
metalworking industry has been stimulated by substantial
improvements, in microcircuit technology and declining
costs compared with other controls. A separate
programming department is not needed with MDI, and it
can be applied in large as well as small shops. While
precise data on the utilization of MDI are unavailable, its
use is spreading among machine tool builders, and even
more rapidly in the contract tool-and-die shops.
Higher labor productivity and improved product
quality are credited to MDI. In addition, MDI can help
alleviate the shortage of skilled workers because a
machine operator may be able to tend two machine tools.
Also, some M D l’s utilize “shop language” for programming
so that a moderately skilled machinist can use the
programming language after brief training.
intermediate technologies
There are other technologies being introduced into the
industry which are not as sophisticated or expensive as
NC, but which improve productivity.7
Digital readout (D R O ). This device enables a machine
operator to position the moving portion of a machine tool
more rapidly and accurately. A major change in the DRO
followed the introduction of an electronic display panel
separate from the metering component. A measure of
automatic control is added to almost any manually
operated machine, although readouts can be used for
verification on NC tools, too. The DRO also enables an
operator to change a cutting machine from inch to metric
measure by flipping a switch; this is the most economical
way of providing certain machines with metric capability.
Increases in efficiency result from fewer operator errors
and faster machining cycles. Shop efficiency is also raised
because less time is required for setups, repetitive tasks,
and inspection. The devices decrease positioning times by
up to 80 percent.8 Although machine setups require
highly skilled machinists, operators need less training
than previously to carry out a job with the aid of a DRO.
Also, operator fatigue is reduced.
The use of DRO ’s is expanding among machine tool
builders and is already widespread among tool-and-die
shops. DRO manufacturers anticipate 25-percent yearly
growth in sales to the metalworking industry for several
years. Major improvements on some DRO ’s since their
introduction about 15 years ago can make programming
easier for operators. DRO ’s can be installed on existing
machines and are also relatively reasonable; the payback
period is usually considered to be less than 1 year.
Consequently, they are feasible for the job shop which
cannot afford NC
Manual-data-input control. Manual-data-input (mdi)
control of machine tools is more sophisticated than the
DRO. Both types of controls inform an operator of
Gutting-tooS materials
Improved cutting-tool materials can play a substantial
role in the application of highly productive, advanced
technologies. The performance of a $250,000 NC machine
tool depends on the cutting capability of a $30 end mill.
Firms which can utilize the improved tool materials can
more efficiently satisfy material and quality specifications
of customers. The new cutting-tool materials improve
productivity because, unlike older materials, they do not
wear out as fast and thus do not have to be changed as
often.
Such new materials as coated carbides, polycrystalline
diamonds, and special ceramics are being used in place of
tungsten carbide. Applications of the relatively longlasting coated carbides will continue to increase because
of sizable price increases for tungsten. According to an
industry analyst, the coated carbides will increase from a
current application of some 15 percent to at least 25
percent of cutting-tool materials used by the metalwork
ing machinery industry in 1985.
6Proceedings, Eighth Annual Tri-Service Manufacturing Tech
nology Coordination Conference. Arlington, Texas, Nov. 8-12,
1976, p. 170.
’Programmable controllers, normally associated with massproduction industries, and programmable hand calculators are
also intermediate technologies which have had successful appli
cations in small batch manufacturing. See National Center for
Productivity and Quality of Working Life, New Technologies and
Training in Metalworking, Summer 1978, pp. 4-7.
8George Schaffer, “Digital Readout Systems,” American Ma
chinist, May 1979, p. SR-4.
Groyp technology
Group technology (G T), a management technique, can
be as important to productivity as new machines. It
involves the grouping of parts on the basis of similar
shapes and/or processing requirements. GT revises the
belief that small batch manufacturing consists of making
distinctive parts from design to end-product. Marked
savings are attributed to GT as a result of improved
24
have introduced GT have broadened the skill require
ments of their work forces.
Small firms cannot afford the sophisticated effort
needed to install GT, and it is used by less than 20 percent
of all toolbuilders. Tool-and-die shops do not utilize GT as
such, but elements of it are present in shop layout
procedures among firms engaged in precision machining
and the manufacture of machine tools.
production scheduling, reduced inventory, and greater
efficiency in machine loading. Design rationalization and
reduced, as well as more efficient, setup and tooling are
also credited to the process.
GT also could reduce skill specializations which often
exist in medium-size and large machine tool shops.
Unlike the usual practice in Europe and Japan, only a
small proportion of the U.S. metalworking firms which
Tab!® 2.
Ma|@ir te c h n o lo g y ch a n ge s In m e ta lw o rk in g m a ch in e ry
L a b o r i m p l ic a t i o n s
D e s c r ip t io n
T e c h n o lo g y
E s t im a t e d r e d u c t i o n in m a c h in
T h r e e p e r c en t o f a ll m a c h in e to o ls
in g t im e o f 3 5 - 5 0 p e r c e n t; t y p i
in m e t a lw o r k in g a re N C , b u t th e y
to n e w p r o d u c t d e s ig n s ; p e r m it s s t r i c t e r t o le r a n c e s f o r p a r ts;
c a ll y
a n d r e d u c e s s e t u p t im e . U s e f u l f o r s m a ll b a t c h p r o d u c t io n ,
R ed u ces
b e c a u s e p a r ts c a n b e m a c h in e d b y m e r e l y c h a n g i n g t a p e s
to o l (N C )
tap e,
p u n c h e d c a r d s , p l u g s , o r o t h e r m e d ia . A l l o w s r a p id c h a n g e
N u m e r ic a l ly c o n t r o l l e d m a c h in e
T ool
is c o n t r o l l e d
by
i n s t r u c t io n s
r e c e iv e d
fro m
D iffu s io n
m a c h in e o p e r a to r s ; r e q u ire s less
a n d r e s e t t in g t o o l .
u sed
s k ill
t w o o r th r e e s h ift s .
u n it r e q u i r e m e n t s f o r
th a n
m a n u a lly
a c c o u n t fo r a m u c h la rg e r p r o p o r
t io n
o f to ta l
o u tp u t.
In m e ta l
c u t tin g s e c to r , th e v a lu e o f NC
o p e r a te d
m a c h in e s is e s tim a te d a t 3 0 p er
o f pro
c e n t o f a ll m a c h in e t o o ls in s ta lle d
g r a m m e r ; r e q u ir e s m o r e b r o a d ly
in 1 9 7 9 . C o n s id e r a b le g r o w t h in
tr a in e d m a in t e n a n c e p e r s o n n e l.
th e n u m b e r o f NC t o o ls a n d th eir
t o o ls , c r e a te s
new jo b
sh a r e o f t o ta l o u t p u t is e x p e c te d
in t h e 1 9 8 0 ’s.
O n -b o a r d c o m p u te r s to r e s a n d c o n v e y s in fo r m a tio n d ir e c t
c o m p u t e r p e r s o n n e l. S a v e s t im e
c o n t r o l u n it; u t il iz e s l a t e s t m ic r o p r o c e s s o r t e c h
n o lo g y .
e r a n d m e d iu m - s i z e m a c h in e t o o l
rem ove
s h o p s . E x p e c t e d t o in c r e a s e s u b
s t a n t i a ll y in t h e 1 9 8 0 ’s a s r e s u lt
R e q u ir e s m a in t e n a n c e p e r s o n n e l
NC
S ig n ific a n t
e r r o r s o r m a k e d e s ig n c h a n g e s .
ly to
(C N C )
S a m e l a b o r i m p l ic a t i o n s a s NC
b u t , u n l ik e N C , m a y r e q u ir e
in
N u m e r ic a l c o n t r o l b y c o m p u t e r
o f c o s t r e d u c t i o n s in e le c t r i c c o n
r e p r o g r a m m in g
to
w it h e l e c t r o n ic s k ills .
p r o p o r t io n
of
NC
m a c h in e s ; m a in l y l im it e d t o la r g
t r o ls ; s o m e
s m a l l e r s h o p s w ill
i n t r o d u c e it.
A n a u t o m a t i c t o o l c h a n g e r m a k e s t h e c e n t e r a m u lt i f u n c
R a i s e s p r o d u c t iv i t y
b y p e r m it
A c c o u n ts fo r a sm a ll b u t g r o w
t i o n NC m a c h in e . E a c h c e n t e r is e q u i v a l e n t t o s e v e r a l m a
t in g o p e r a t i o n s o n m a n y s u r fa c e s
in g p e r c e n t a g e o f m a c h in e t o o l s
c h i n e s , e a c h h a v i n g a s p e c if ic f u n c t i o n .
M a c h in in g c e n te r
o f a p a r t in a s in g le s e t u p . O p e r a
to r
m ay
c o n tro l
several
m a
c h in e s.
in la r g e r p l a n t s , b u t a d i s p r o p o r
t io n a t e ly la r g e s h a r e o f t h e in
d u s t r y ’s o u t p u t .
A u t o m a t ic a ll y c o n t r o l s f e e d r a te t o r e d u c e o r e li m in a t e s u c h
R a i s e s p r o d u c t iv i t y in m a c h i n
U s e d b y la r g e p l a n t s . U t i li z a t i o n
fa c to r s a s v ib r a tio n , t o o l w e a r , a n d c u ttin g tem p e r a tu r e s,
in g t h r o u g h s u b s t i t u t i o n o f s e n
b y s m a l l s h o p s w ill d e p e n d u p o n
a n d a le r ts o p e r a to r . C a n b e u se d w ith c o n v e n t io n a l t o o ls or
so rs fo r w o rk ers’ o w n
d e v e lo p m e n t o f im p r o v e d
w it h NC.
A d a p tiv e c o n tr o l
t io n s .
R ed u ces
s k i ll
percep
r e q u ir e
m en ts.
sen
s o r s a n d t h e ir c o s t e f f e c t i v e n e s s
r e la t iv e
to
th e
a v a ila b ility
of
s k i ll e d w o r k e r s a n d a l s o th e t y p e
o f w o r k p e r fo r m e d .
C o m p u te r -a id e d d e s ig n / c o m
C o m p u t e r s a r e u s e d t o d e v e l o p d e s ig n s f o r p r o d u c t s t o b e
R e d u c e s n e e d f o r l o w - s k il le d o p
U s e d b y la r g e m a c h in e t o o l m a n
p u te r -a id e d m a n u fa c tu r e
m a n u f a c t u r e d (C A D ) . C A M d i r e c t s n u m e r ic a l ly c o n t r o l l e d
e r a to r s ; i n c r e a s e s r e q u ir e m e n ts
u f a c tu r e r s
(C A D / C A M )
m a c h in e s
f o r h ig h e r s k i ll e d w o r k e r s .
m e d iu m - s i z e f ir m s w ill b e s e v e r e
and
a u to m a tic a lly
g u id e s
w o r k p ie c e s
am ong
m a c h in e s o n c o m p u t e r - c o n t r o l l e d h a n d li n g s y s t e m s .
ly
o n ly ;
l im it e d
d iffu s io n
to
b y t h e t e c h n o l o g y ’s
c o st.
A d e v i c e is a p p l ie d t o m o v a b le p o r t i o n o f a m a c h in e t o o l
O p e r a to r e ffic ie n c y a n d a c c u r a c y
U se
t o m e a s u r e its a c t u a l m o v e m e n t ; c a n p r o v i d e s o m e a u t o
D i g i t a l r e a d o u t (D R O )
a r e e n h a n c e d d u r in g th e p o s itio n
a m o n g m a c h in e t o o l b u ild e r s ; a l
m a tic c o n t r o l ; m e a s u r e m e n t a p p e a r s o n a d i s p l a y u n it .
is
l im it e d
in g p h a s e o f t h e m a c h in e c y c le .
read y
O p e r a t o r s a r e t r a in e d in le s s t im e
a n d -d ie
a n d f a t i g u e is r e d u c e d .
D R O ’s e x p e c t a
but
w id e sp r e a d
sh op s.
in c r e a s in g
am ong
t o o l-
P roducers
of
2 5 -p ercen t a n
n u a l g r o w t h in t h e ir s a le s t o t h e
m e t a l w o r k i n g m a c h in e r y i n d u s
tr y in t h e n e x t s e v e r a l y e a r s .
(M D I )
E n a b le s a n o p e r a t o r t o c h a n g e t h e p o s i t i o n o f a m a c h in e
M a c h in is t c a n
a u to m a tic a lly ; a ls o
M a n u a l - d a t a - in p u t c o n t r o l
p a r t p r o g r a m s ; p o s s i b l e in “ s h o p
u n a v a i la b le , b u t its u s e is s p r e a d
l a n g u a g e .” T r a in in g p e r io d s h o r t
in g a m o n g m a c h in e t o o l b u ild e r s
i d e n t i f ie d
a s “ o p e r a to r -p r o g r a m m e d
N C .”
p la n a n d
en ter
er t h a n f o r NC p r o g r a m m i n g .
P r e c is e d a t a o n
and
even
m ore
u t il iz a t i o n a r e
r a p i d ly in th e
c o n tr a c t to o l- a n d - d ie s h o p s .
D u r a b le n e w m a t e r ia l s , s u c h a s c o a t e d c a r b id e s , p o l y c r y s
R ed u ce
t a ll in e d i a m o n d s , a n d
C u t t i n g - t o o l m a t e r ia l s
s o m e w h a t b e c a u se to o ls d o n o t
m a in
h a v e to b e c h a n g e d a s o fte n .
c o a te d
s p e c ia l c e r a m i c s m o r e e f f i c i e n t ly
m e e t c o n t i n u e d i n c r e a s e s in m a c h in i n g s p e e d .
la b o r
r e q u ir e m e n ts
T u n g s t e n c a r b id e e x p e c t e d t o re
fro m
th e
m a j o r m a t e r ia l ,
c a r b id e s
cu rren t
m ay
but
in c r e a s e
15 p e r c e n t to 2 5
p e r c en t o f a ll c u ttin g -to o l m a
t e r i a ls in m e t a l w o r k i n g m a c h i n
e r y in 1 9 8 5 .
G r o u p t e c h n o lo g y
(GT)
M a n a g e m e n t s k i ll s u s e d t o r e d u c e s m a l l b a t c h o p e r a t i o n s .
I m p r o v e s e f f i c i e n c y a n d q u a l it y
U s e d b y s o m e la r g e m a c h in e t o o l
I n v o l v e s t h e g r o u p i n g o f p a r t s o n t h e b a s i s o f s im ila r s h a p e s
o f o u tp u t. W ork ers m a y b road en
b u ild e r s ; e l e m e n t s o f
a n d / o r p r o c e ss in g r e q u ir e m e n ts . W o r k e r s m a y p e r fo r m a
s k i ll s a n d
t o s p r e a d s l o w l y t o s m a lle r b u i ld
w id e ra n g e o f ta sk s.
c ia l i z a t i o n s .
25
r e p la c e
n arrow
sp e
GT
l ik e ly
er s a n d to o l- a n d - d ie s h o p s .
©uftpuft smd Productivity Outlook
Of major importance is the change in the mix of output
as the proportion of numerically controlled tools has
increased. It is estimated that, in 1973, about 40 percent of
the value of shipments of NC milling machines and
machining centers plus comparable conventional machine
tools was accounted for by NC machines; the percentage
rose to 66 percent by 1977, according to estimates of a
consultant to the industry. In the case of NC lathes and
conventional lathes, the estimated rise in NC shipments
was from 32 percent of the total value in 1973 to 52
percent in 1977. Because NC is considerably more
productive, fewer machines are required for a given
amount of production.
To some extent, output growth in the industry has been
held back by the lack of skilled workers to accommodate
to periods of higher demand. While the industry has
undertaken considerable worker training in strong
growth periods, numerous trained skilled workers had to
be laid off when slumps in production took place. Some
of these workers left the industry for more stable jobs in
other industries; this was especially the case for workers
who experienced more than one long spell of unem
ployment.
Output
The metalworking industry has undergone sharp
fluctuations in output in response to the business cycle,
typical of the experience of other capital goods industries.
Although reliable output data are not available for the
total metalworking machinery industry, Census value of
shipments data adjusted for price changes (used as a crude
measure of output) suggest an average annual growth rate
of about 2 percent in 1960-78. Output grew very rapidly
(8-9 percent a year) in the period 1960-67. However, in
1967-73, average output declined by about 2 percent and,
in 1973-78, the average rate of decline was still about 1
percent, reflecting the 1970 and 1975 recessions.
Although later data are not available, there is evidence
that some sectors of the industry are recovering in
response to the large tooling requirements of the
automobile, aircraft, and defense industries.
While all sectors had impressive rates of growth in
1960-67, the pattern of the sectors varied considerably in
the next decade.9 Metal-cutting tool output advanced at a
double-digit rate annually (12.0 percent) in 1960-67, and
then experienced a very steep decline (8.9 percent
annually) in 1967-73. However, in 1973-80 a moderate
rate of recovery (2.7 percent) occurred, as output grew
strongly after the 1975-76 recession. A similar rise and
fall, but not as pronounced, occurred in metal-forming
output in 1960-67 and 1967-73. However, in the
succeeding period, 1973-80, metal-forming output
declined—more steeply than in 1967-73. As in the
recession years of 1975 and 1976, output again fell sharply
in 1980. Nevertheless, in certain sectors, e.g., metal
cutting, delivery time for some orders was as much as 2
years.
One explanation for the decline in metal-cutting output
over the longer period of 1967-79 is the tardiness of
customer industries in buying new tools. The aging of the
machines in the U.S. economy has been a long-term
problem. The percentage of metal-cutting machines that
are less than 10 years old has been declining steadily since
the end of World War II; an estimate of 31 percent for
1976-78 approaches the rate at the end of the depression
in 1940. Moreover, when all U.S. metal-cutting and
metal-forming tools are combined and compared with
tools in six other major industrial nations, the United
States had the smallest percentage of machines less than
10 years old and the highest percentage of machines over
20 years old.1
0
Foreign trade. Traditionally, the United States has
enjoyed a comfortable advantage in the export of metal
cutting machines. In 1958-65, the value of exports was at
least three times as large as the value of imports. Although
a trade advantage was maintained in the years 1966-76, it
was no longer as large as in earlier years, and in only 2
years (1970 and 1971) was the trade advantage as high as 2
to 1.
In 1977, imports of metal-cutting machines exceeded
exports for the first time. Although exports of cutting
machines continued to average more in the 1970’s than in
the 1960’s (83.5 percent higher), the rise in imports was
considerably more rapid (4.2 times as high in the 1970’s).
In 1978, the continued deterioration in the trade position
of metal-cutting machines- offset the favorable trade
balance of the metal-forming sector for the first time, and
the trade imbalance rose even higher in 1979.
U.S. machine tool manufacturers have not been
competing successfully with foreign producers in
domestic markets, as is evident by the increase in the
import penetration ratio, that is, imports as a percent of
apparent consumption (imports plus domestic production,
excluding exports). This ratio more than doubled
between 1972 and 1979, rising from 9 percent to 22
percent, with the biggest jump in 1978. It rose again in
1980. U.S. manufacturers may be unable to recapture a
large portion of the imports of conventional machine
tools from Japan and Taiwan. As a result, U.S. firms will
have to become more competitive with Japan and also
West Germany in the production and sale of NC
machines, machining centers, and specialized machines.
In addition to the very rapid expansion in imports, the
unfavorable balance of trade in metal cutting was also
affected by the way in which foreign trading relationships
’Output data for the metal-cutting (sic 3541) and metal-forming
sectors (sic 3542) are weighted output measures developed by bls for
1958 to 1980. The data for all other sectors, as well as the entire industry
(sic 354), are deflated Census value of shipments data; latest year, 1978.
l0“The 12th American Machinist Inventory of Metalworking
Equipment 1976-78,” American Machinist, op. cit., pp. 133, 135,
and 137. The data for the six foreign industrial nations are based
on the most recent studies in each country, ranging from 1973 to
1978.
26
in these machines are established. During several
prosperous years in the 1960’s, machine tool builders did
not have much incentive to expand their exports to new
customers. Yet, machine exports depend upon the
establishment of a long-term relationship. Machine
buyers often rely upon the machine makers to service and
ultimately even rebuild their machines after several years
of usage. In the absence of more commercial ties abroad,
U.S. machine tool firms could not take advantage of their
excess capacity during the recessions of the 1970’s to
increase their exports. More recently, the sizable upswing
in domestic orders has again been reducing interest in
exports, as numerous firms are operating at or near
capacity levels, and skilled workers are in short supply.
Prospective exporters are also handicapped because their
lead times for delivery of new machines are relatively
longer than in some other countries.
Productivity
Although a reliable measure of productivity is unavail
able for the metalworking machinery industry as a whole,
trends can be estimated from available output and
employee-hours data. Deflated value of shipments, used
as a crude measure of output, increased by about 2 per
cent annually in 1960-78, while the rate of change in
employee hours was less than 1 percent for the same
period (chart 6). These data suggest that the productivity
growth rate averaged only 1-2 percent annually in the
1960-78 period. While productivity (estimated as above)
grew moderately from 1960-67, it rose more slowly in
1967-73 and then edged down in 1973-78.
In the metal-cutting sector, for which a BLS weighted
measure is available, productivity growth averaged only
1.2 percent in the 1960-80 period, approximately the rate
of growth for the whole industry. While productivity grew
at an average of 4.1 percent annually from 1960 to 1967, it
only edged up at less than 1 percent from 1967 to
1973, when output dropped about 9 percent. In the
succeeding 7 years, 1973-80, productivity showed no
growth. While growth was relatively strong after 1976, it
just offset the recession declines.
Traditionally in capital goods manufacturing, which is
highly cyclical, there is a lag in the adjustment of hours to
output changes. In this industry, there is often consider
able reliance on changes in the overtime component of
employee hours in order to adapt to the wide shifts in
output. This is especially evident in the metal-cutting
sector. Metal-cutting production has characteristics that
are not present to the same degree in other industries,
particularly labor intensity, high skill needs, and the
considerable time and cost to train workers. Moreover,
there is a shortage of skilled workers. Consequently,
during an upturn, overtime hours are increased; in a
downturn, firms keep as many of their employees on the
payroll for as long a period as they regard practicable, but
reduce overtime.
In contrast, the products of the accessory sector, which
include perishable tools and various attachments and
accessories for machine tools and other metalworking
machinery, enable these manufacturers to benefit from a
production process of typically shorter time frames and
larger batches than in machine tools. The accessories
firms stock numerous standardized products to accom
modate anticipated industry demand. Moreover, while
the accessory sector needs skilled instrumentmakers to
produce measuring devices, the bulk of its output requires
a relatively less skilled work force than does metal cutting.
Therefore a downturn in the accessory sector output is
more likely to be matched by a comparable decrease in
employment than in the metal-cutting sector.
The machine tool builders have less flexibility in the
adjustment of employment. This can be attributed to the
length of time required to complete orders for metal
cutting machinery and the limited standardization that is
possible in its production. Such machinery is usually only
manufactured when purchase orders are in hand and
requires several months to make. The special machines
that are manufactured in this sector are necessarily made
in small production runs. Even many of the so-called
universal machines are in some way modified to meet
individual buyer specifications, thereby ruling out some
of the economies associated with longer production runs.
The industry has made some attempt to overcome the
obstacle of small batch production to improve
productivity in the machine tool sectors. For instance,
construction standards have been developed over a 20year period by NC committees of the Electronic Industries
Association to enable greater output of standard
components and interchangeable subassemblies. In
addition, standards have been revised to accommodate
advances in technology, such as the capability of
computer NC systems to handle manual data input.
Aging machinery is a factor which limits productivity
growth in firms throughout the metalworking machinery
industry. It has been stated that many of the rather old
manually operated tools in use actually cut metal for
much less than 10 percent of the time a workpiece is in a
batch production shop. Considerable time is involved in
setting up to make a part, or parts are being loaded or
unloaded, or tools are being changed. As noted in the next
section, an upswing in investment in new plant and
equipment was underway in the metal-cutting sector.
Future data may better reflect the installation of newer,
more productive machines, because, in general, optimiza
tion of new plant and equipment can be a lengthy process.
investment
Capital (SHpemdifluir©®
Real capital expenditures1 by the metalworking ma
1
chinery industry in 1978 were less than 80 percent of peak
levels in 1966, although in current dollars they rose by
nearly two-thirds. The cyclical volatility of capital outlays
"Deflated
chinery.
by implicit
price deflator for metalworking ma
in this industry is pronounced. Expenditures (in constant
dollars) rose almost steadily to their highest level in 1966,
moved down rapidly in 1970, and plummeted in 1971 to
reach the lowest level since 1963. After rising to near peak
levels in 1974, expenditures fell sharply again in 1975.
Although they recovered in succeeding years, the peak
outlays of 1966 were not surpassed.
Approximately the same pattern is reflected in the three
major sectors of the metalworking machinery industry. In
metal-cutting machinery, peak expenditures (real) oc
curred in 1967. In 1978, over a decade later, real expendi
tures were less than 65 percent of the peak. Machine tool
accessories and measuring devices attained their summit
in real capital expenditures in 1966-67; by 1978 they were
only about 85 percent of the level for those 2 years.
The third major sector—special dies and tools, die sets,
jigs and fixtures, and industrial molds—which typically
accounts for well over one-third of capital expenditures in
metalworking machinery, surpassed its 1966 peak in
expenditures in 1974. More pronounced, however, than
in the other sectors, was the decline in outlays in 1975,
to half of those of the previous year. By 1978, real outlays
were about 80 percent of the peak.
No more recent Census data are available, but,
according to industry reports, outlays by the machine tool
builders were rising sharply in response to increasing
demand, noted earlier, by the automobile, aircraft, and
defense industries. Capacity of this sector may be greatly
enlarged in the early 1980’s. The more productive,
automated machinery being installed may improve the
industry’s competitive position vis-a-vis foreign imports.
Research and development
A few of the relatively large machine tool builders have
undertaken research as well as development. However, in
general, most of these firms are in development only. For
example, large machine tool makers are involved in the
development of improved computer controls for machine
tools. To some extent, large companies outside the
industry have undertaken R&D at least in part to improve
machining standards in their own work. For instance, a
firm pioneered in the recent development of a cutting tool
with polycrystalline diamond material.
Some joint interindustry development has taken place,
including the pooling of development costs by several
machine tool builders and an automobile manufacturer in
order to increase the speed of lathes. However, there is
currently relatively little in the way of joint efforts by
government, industry, and labor compared with those in
some countries, notably Japan.1
2
1
Comptroller General of the United States, Manufacturing
Technology—A Changing Challenge to Im proved Productivity,
June 3,1976, pp. 74, 88-89.
28
Considerable R&D effort has been directed toward
standardization. Whereas once there were more than 30
adapters in use by machine tool builders, the industry is
moving toward more universal use of an adapter
developed by a large machinery manufacturer. The
adapter makes possible substantial reduction in cuttingtool inventories and is considered particularly useful for
small firms with NC machines.
The National Bureau of Standards is also advancing
the pace of innovation within the industry. The Bureau
has research underway to improve the ability of NC and
industrial robots to work together. The Bureau is also
trying to improve the adaptability of robots. According to
a Bureau research analyst, the largest share of robot
applications during the 1980’s will be in loading and
unloading machine tools.
Employment and Ooeupational Trends
imptoyrntmt
The industry’s employment increased at an average
annual rate of 1.4 percent in 1960-80, about the same as
for all durable goods manufacturing industries. While
employment growth averaged 5.1 percent in 1960-67, it
declined 3.0 percent annually during 1967-73, but rose
again at 2.3 percent annually in 1973-80. For the period
1980-90, three employment projections by the Bureau of
Labor Statistics, based on alternative versions of
economic growth, fall in the range of 0.8 percent annually
(only about half the 1960-80 rate) to 3.8 percent (2 xi times
/
the 1960-80 rate).1 The low-trend estimate for
3
metalworking machinery is only half the growth rate
expected for all durable goods by 1990, while the hightrend estimate (Level B on chart 7) exceeds the projected
growth rate for durable goods manufacturing.
At 371,500 persons, employment in 1980 was exceeded
only during 2 World War II years. After dropping to a
postwar trough in 1949, employment rose steadily to
314,000 in 1953, and was not surpassed until the second
half of the 1960’s. Over the years 1960-80, there were
three periods of sharp cyclical fluctuations affecting every
major sector of the metalworking industry. Employment
hit a low in 1961 and then exhibited strong continuous1
1
Projections for industry employment in 1990 are based on three
alternative versions of economic growth for the overall economy
developed by bls. The low-trend version is based on a view of the
economy marked by a decline in the rate of expansion of the labor force,
continued high inflation, moderate productivity gains, and modest
increases in real output and employment. In the high-trend version I, the
economy is buoyed by higher labor force growth, much lower
unemployment rates, higher production, and greater improvements in
prices and productivity. The high-trend version II is characterized by the
high gnp growth of high-trend I, but assumes the same labor force as the
low trend. Productivity gains are quite substantial in this alternative. On
chart 7, Level A is the low-trend, Level B is high-trend I, and Level C is
high-trend II. Greater detail on assumptions is available in the August
1981 issue of the M onthly Labor Review.
29
growth through 1967 when peak levels were attained.
Subsequently, the industry reflected the economy’s
recessions with deep employment declines in 1971 and
again, but not as steeply, in 1975 and 1976. Since then,
employment has moved up sharply.
As mentioned earlier, overtime hours play an impor
tant role in this industry. By expanding and contracting
overtime hours of production workers in response to
changes in output, employers tend to moderate short
term hirings and layoffs. While this is true for the entire
metalworking machinery industry, it is more marked in
the metal-cutting sector. Overtime hours in metal cutting
during the sector’s cyclical peaks and troughs of 1960-61,
1969-70, and 1973-75 ranged, respectively, from 5.5 to
1.9 hours, 6.5 to 1.8 hours, and 7.8 to 1.8 hours (average
weekly data). The proportion of production workers to
all employees in the industry has not changed significant
ly in the last two decades. Production workers accounted
for 75 percent of all employees in 1960 and 73 percent in
1980. The comparable figures for all durable goods manu
facturing industries were 74 percent and 69 percent.
The three largest industrial sectors in metalworking
machinery—namely, tool and die, metal cutting, and
machine tool accessories—accounted for slightly over
three-fourths of the industry’s total employment in the
years 1960 through 1980, but the metal-cutting sector
declined in relative importance. They all exhibited growth
from 1960 to 1967, but the tool and die and machine tool
accessory sectors grew at faster average annual rates than
did metal cutting. In spite of its recent sharp rise, employ
ment in metal cutting has not recovered fully from its low
levels of 1971 and 1972, while the other two sectors re
covered more rapidly and attained their peaks in 1979 and
1980 (chart 7). Tool and die and machine tool accessories
firms increased their share of employment within the
metalworking industry from 50 percent in 1960 to 55
percent in 1980. The share of metal-cutting employment
declined from 27 percent in 1960 to 21.5 percent in 1980.
Occupations
B l s projects an employment increase from 1978 to 1990
for all but the smallest occupational group (sales workers)
in the metalworking machinery industry. Craft workers
and operatives, the two largest of the blue-collar groups,
each constituted nearly one-third of all employees in
metalworking in 1978. While operatives are expected to
grow 36 percent by 1990, the increase for craft workers is
expected to be about half that rate (chart 8). By 1990,
operatives will account for a somewhat larger percent of
total employment than in 1978, while the proportion of
craft workers is expected to decline slightly.
A major influence on occupational skills and
responsibilities in the past decade has been the use of
numerically controlled machines. For example, the more
rapid growth in employment of operatives is at least
partly attributable to the recent expansion of NC
Chart 7. Employment in metalworking machinery and selected
industry sectors, 1960-80, and projections for 1980=90
Employees (thousands)
560
520
Level B
Average annual percent change1
All employees
/
480
440
Metalworking Metal Tool
Machine tool
machinery
cutting and die accessories
1.9
1960-80 ............ 1 .4 ...
0 .1 ... 1 .8 ...
1 9 6 0 -6 7 .... 5 .1 ...
3 .5 ... 5 .6 ... . . . . 7.1
1 9 6 7 - 7 3 ....- 3 .0 ... -5 .6 ... - 1 .6 ... . . . . - 4 . 2
1973-80 . . . . 2 .3 .. .
2 .6 ... 1 .9 ... . . . . 3.5
Level C _
_
n.a. - not available.
400
1980-90
(projections). 0.8 to 3.8 . n.a........ n .a ... . . . . . n.a.
Level A
360
Total metalworking machinery
320
280
240
160
120
Metal cutting
Machine too! accessories
1960
1965
1970
1975
Least squares trend method for historical data; compound interest method for projections.
Note: See text footnote 13 for explanation of alternative projections.
Source: Bureau of Labor Statistics.
30
1980
1985
1990
Chart 8. Projected changes in employment in metalworking
machinery by occupational group, 1978-90
Occupational
group
Percent of
industry
employment
in 1978
Professional and
technical workers
20
30
40
8.4
Sales workers
10
9.0
Managers, officials,
and proprietors
Percent change
1.9
Clerical workers
12.1
Craft workers
32.3
Operatives
32.5
Service workers
1.8
Laborers
2.0
Source: Bureau of Labor Statistics.
machines and various intermediate technologies. A
shortage of skilled workers is a major reason certain firms
have turned to NC. Over 800 member firms of the National
Tooling and Machining Association indicated that they
needed on average a 26-percent increase in skilled
toolmakers and machinists.1 Similarly, the great
4
majority of nonelectrical machinery manufacturing
plants responding to an Industry Week survey reported
shortages of skilled workers; the most pressing needs were
for machine operators, mechanics, electricians, and tooland-die makers.1
5
A study which compared the skills of machinists on NC
with those on manually operated machine tools revealed
that NC machines are associated with a decline in demand
for motor skills and decisionmaking abilities.1 According
6
to a BLS study, NC operators need less knowledge because
tapes are programmed to control speed, feed, and width
'“
•National Tooling and Machining Association, Record, Vol. 2,
No. 5, May 1979, p. 4.
l5Daniel D. Cook and John S. McClenahen, “Skilled Worker
Nears Extinction,” Industry Week, Aug. 29, 1977, p. 46; also see
Michael Marley, “If They Could Clone Skilled Workers,” Iron Age,
Vol. 221, No. 37, Sept. 11, 1978, pp. 36-38.
I6R J. Hazlehurst, R.J. Bradbury, and E.N. Corlett, “A Comparison
of the Skills of Machinists on Numerically Controlled and
Conventional Machines,” Occupational Psychology, Vol. 43, Nos. 3
and 4, 1969, p. 177.
31
and depth of cut.1 At the same time, the study referred to
7
the need for greater conceptual skills on NC machines.
There will, however, be continued need for highly
skilled machine operators on the most advanced NC
machines. Moreover, the costliness of NC machines and
the intricacy of their control systems increase the need for
preventive maintenance mechanics trained in electronics
with practical knowledge of hydraulics and pneumatics.
Bls projects that employment of mechanics, repairers,
and installers, a subdivision of the craft worker group,
will expand five times as fast as all craft employment.
While employment of professional and technical
workers is projected to grow by 22 percent from 1978 to
1990, the projected increase for managers, officials, and
proprietors will be only at one-fourth that rate. The
former’s share of total industry employment will be
virtually unchanged by 1990, while the latter’s share will
decline. Changed skills and responsibilities, also largely
related to NC equipment, are occurring for these
occupational groups. The competitive structure of the
industry and complexity of NC equipment and other
technologies require not only knowledge of the new
machines but also the capability to organize a shop’s
production so that the machines are utilized optimally.
17Technological Change and Manpower Trends in Five Indus
tries, Bulletin 1856 (Bureau of Labor Statistics, 1975), p. 42.
Engineers will remain the dominant occupation for the
professional and technical worker group in 1990, with
about half the engineers still in the mechanical field.
Drafters will remain, by far, the largest single occupation
in the technician group. While computer specialists are
expected to increase at only half the rate for total industry
employment, the number of numerical tool programmers
will more than double by 1990, but will still account for
less than one-half of 1 percent of the industry’s employees.
The programmer position on advanced NC tools requires
mathematics, the ability to visualize objects and motions
in dimensions, and an understanding of cutting and
tooling principles.
Adjustment ®f workers to teeSunologiesii change
Programs to protect the worker from the adverse affects
of changes in machinery and methods may be incorpora
ted into union contracts or they may be informal arrange
ments between workers and management. In general,
such programs are more prevalent and detailed in formal
contracts. Both formal and informal labor-management
arrangements are influenced by the state of the economy
and the availability of labor.
Training may be the major factor in the adjustment of
workers to technological change in this industry. Officers
of leading machine tool manufacturing firms refer to
shortages of trained machinists and other technical and
skilled workers as a principal obstacle to maintaining
high levels of production or increasing them.
Provision for an adequate level of training is
complicated by demographic factors. An aging work
force is making it steadily harder to maintain a nucleus of
skilled workers as many, including tool-and-die makers,
continue to retire. To cover the skill shortages, NC tool
builders have provided short, intensive training programs
in the fundamentals of maintenance to electricians and
other skilled workers. Machinists and even experienced
machine operators are being trained in programming.
The extent of training provided by employers is not
precisely known. In some cases, small firms have taken a
multiemployer approach to apprenticeship and other
qualifying training. While some form of training is
provided by most employers, local union bargaining
agreements typically do not refer specifically to training.
A BLS survey of structured training in the nonelectrical
machinery industries disclosed that only 18 percent of the
surveyed establishments provided training in one or more
skilled occupations; and only about one-third of the
training was for skill improvement, while two-thirds was
training to qualify for the job. The survey excluded the
most common forms of training, namely, learning
through experience and informal training. The survey
included metalworking machinery establishments but
data for them were not available separately.
Since 1966, the U.S. Department of Labor ( d o l ) has
provided training funds which have been distributed by
32
the National Machine Tool Builders Association. As of
fiscal year 1979, trainees hired by the machine tool
manufacturers for the DOL program have to be
economically disadvantaged persons. The training
(including classroom instruction) is conducted on the job
site. Typically, the training is in such fields as machine
operation, assembly, and machine repair, and the
programs run 13 to 16 weeks. More than 14,000 graduates
have proven a good screening source for apprentices who
can later qualify for more skilled, higher paying jobs
requiring further training.
The National Tooling and Machining Association has
enrolled over 15,000 persons in their preemployment
training program funded by the DOL. The program, which
previously consisted of 16 weeks of institutional training
followed by 36 weeks of on-the-job training, now is a 12week program of institutional training only for
economically disadvantaged persons. An industry
spokesman believes that this program alone is not
providing a sufficient number of persons who are
qualified for further training in more highly skilled
occupations.
Since skilled workers are in short supply, some firms
have sought foreign workers. However, the firms do this
reluctantly because of the time involved in completing
paperwork and securing approval for immigration. A
survey in Milwaukee disclosed that the careers of
machinist or machine operator ranked rather low with
high school students, even though the city is a major
machine tool producer.1 However, some metalworking
8
firms are making greater efforts to attract young people to
the industry by enrolling high school students in
cooperative programs (involving morning school attend
ance and afternoon work), much as they have done
successfully with engineering personnel.
The International Association of Machinists and
Aerospace Workers ( i a m ) is the major union in this
industry. The United Automobile Workers (u AW) and the
United Steelworkers of America (U SA ) are the other two
leading unions. Overall, these unions plus several others
have organized about one-third of the workers in the
industry.
Contract provisions for nine metalworking firms
studied by BLS which each employ at least 1,000 workers
appear to be representative of the bargaining agreements
negotiated by the three leading unions. In general, the
prevalence of seniority provisions acts as a measure of job
security when technological change takes place. Agree
ments provide for seniority rights in the event of layoff
and for purposes of rehiring. Interplant transfers are quite
uncommon. A provision requiring advance notice of
layoff is present in a majority of the agreements studied,
lsJ.G. Udell and others, Skilled Labor in the Milwaukee Area: The
Supply, Education, Problems and Opportunities, Wisconsin Economy
Study No. 15 (Madison, University of Wisconsin, Graduate School of
Business, July 1977).
problem is complicated by the cyclical nature of the
industry. A Connecticut machine tool builder visited by
BLS made the following arrangement: During a 9-month
slack period, the firm employed its work force for 3-week
periods, and unemployment insurance (ui) payments
were secured for the fourth week of each month. (In
Connecticut, no waiting period is required for ui
payments.)
but such notices are generally unrelated to technological
change. Nevertheless, some agreements specifically refer
to “new equipment” and most UAW agreements deal with
“new jobs.” Companies in these instances are normally
required to consult with the union regarding changes in
job description or occupational assignment of the job,
and provisions exist for resolving grievances.
Considerable effort by management to improve job
security is related to the shortage of skilled workers. The
SELECTED REFERENCES
Ashburn, Anderson. “The 1980 Machine-Tool Standings,” American
Machinist, February 1981, p. 93.
National Center for Productivity and Quality of Working Life. New
Technologies and Training in Metalworking, Washington, U.S. Gov
ernment Printing Office, 1978.
Ashburn, Anderson, and others. “The Machine Tool Task Force Re
ports on Metalcutting-Machine-Tool Technology,” American Ma
chinist, October 1980.
National Machine Tool Builders’ Association. 1980-1981 EconomicHandbook o f the Machine Toot Industry. McLean, Virginia, 1980.
Bellows, Guy. Nontraditional Machining Guide—26 Newcomers fo r
Production. Cincinnati, Metcut Research Associates, Inc., 1976.
Putnam, George P. “Why More NC Isn’t Being Used,” Machine and
Tool Blue Book, September 1978, pp. 98-107.
Beman, Lewis, and Steven E. Prokesch, “Foreign Competition Stirs
U.S. Toolmakers,” Business Week, Sept. 1, 1980, pp. 68-70.
Schaffer, George. “Digital Readout Systems,” American Machinist,
May 1979, pp. SR-2-4.
Comptroller General of the United States. Manufacturing Technolo
gy—A Changing Challenge to Im proved Productivity, Report to the
Congress, lcd-75-436, June 3, 1976.
Smith, Donald N., and Lary Evans. Management Standards for Com
puter and Numerical Controls. Ann Arbor, University of Michigan,
1977.
Cook, Daniel D., and John S. McClenahen. “Skilled Worker Nears
Extinction,” Industry Week, Aug. 29, 1977, pp. 38-48.
The 12th American Machinist Inventory of Metalworking Equipment
1976-78,” American Machinist, December 1978, pp. 133-48.
Dallas, Daniel B. “Machining Outlook for 1978,” Manufacturing Engi
neering. January 1978, pp. 46-50.
Gettelman, Ken. “Numerical Control’s Tech Explosion,” Modern
Machine Shop, July 1979, pp. 79-88.
Udell, J.G.,and others. Skilled Labor in the Milwaukee Area: The Sup
ply, Education, Problems and Opportunities. Wisconsin Economy
Study No. 15, Madison, University of Wisconsin, July 1977.
Golembe, Stanley, “Application, Justification and Selection of Digital
Readouts,” Modern Machine Shop, May 1977, pp. 88-96.
U.S. Department of Labor, Bureau of Labor Statistics. Outlook for
Numerical Control o f Machine Tools, by John Macut. Bulletin 1437,
March 1965.
Hatschek, R.L. “Manual-Data-lnput Controls,” American Machinist,
May 1978, pp. SR-18-SR-19.
Macut, John. “New Technology in Metalworking,” Occupational Out
look Quarterly, February 1965.
U.S. Department of Labor, Bureau of Labor Statistics and Employ
ment and Training Administration. Occupational Training in Se
lected Metalworking Industries, 1974. B ls Bulletin 1976, ETA R&D
Monograph 53, 1977.
Mansfield, Edwin, and others. Research and Innovation in the Modern
Corporation. New York, Norton and Company, Inc., 1971, pp. 186—
205.
33
Ohapter 4„
Electriisal and ileetroimi© Equipment
Summary
industries were most rapid during the earlier portion of
the 1960-79 period.
Expenditures for plant and equipment have been in
creasing, with capital outlays highest for electronic com
ponents and communication equipment. Capital spend
ing is expected to increase as those parts of the industry
experiencing rapid technological development continue
spending for new plant and equipment.
Employment rose at a relatively low annual rate of 1.6
percent between 1960 and 1980; the growth rate was
highest in the early half of the period. Employment is
projected to increase at an average annual rate of 1.7 to
2.5 percent between 1980 and 1990.
The pace of technological change has been uneven in
the diverse group of industries that make up the electrical
and electronic equipment group. The electronic compo
nents sector, for example, is a leader in technological
innovation and has experienced strong growth in produc
tion, employment, and capital investment. The electrical
machinery industries, however, are experiencing less rapid
technological change. Production and employment
growth also has been slower in these industries.
A number of occupations will be affected by technolog
ical change. Improvements in assembly procedures,
primarily in the use of automatic equipment, including
robots, are changing skill requirements and increasing
productivity for several kinds of operatives. In the largest
occupation—assemblers—work is shifting from manual
assembly toward machine monitoring, loading, and
maintenance tasks. The need for welders and painters
may decline, while more mechanics and repairers may be
needed. Engineers and technicians will make greater use
of video terminals and computer techniques in designing
machines and electronic circuits—which should improve
their productivity and reduce the need for drafting em
ployees. Solid-state controls, which are manufactured in
this industry, will also be used in appliances and other
products manufactured in this industry. They will in
creasingly replace mechanical controls (switches, timers,
etc.) and bundles of electrical wires, which will increase
the need for scientists, engineers, and technicians, while
reducing the amount of manual assembly and soldering
work required.
Production in the electrical and electronic equipment
industry has grown steadily during the 1960-80 period.
The electronic component sector has grown most rapidly,
due to strong demand for integrated circuits and other
semiconductors. Production has also increased in each of
the other industries within this sector.
There is no BLS index of output per employee hour
(productivity) for the broad industry group, but indexes
are available for several individual industries. Produc
tivity has increased, at varying rates, in each of the
industries for which data are available. The household
appliance industry experienced the highest rate of
productivity growth. Productivity gains in these
Tecta® 0
®gy m the U S D
S C ’s
Technological changes are taking place in most sectors
of the electrical and electronic equipment industry (SIC
36). To varying degrees, these changes will affect
employment levels and occupational structures. Improve
ments in assembly operations include more automatic
equipment to assemble printed circuit boards, and
production lines with automatic stations to manufacture
household appliances and television receivers. The trend
toward more automated operations may lower unit labor
requirements somewhat and shift job skills more toward
machine monitoring and maintenance. Computer
techniques are being developed to assist engineers in
designing solid-state (semiconductor) electronic comp
onents and integrated circuits. Solid-state controls and
switches, and printed circuits, important products of this
industry, are replacing mechanical controls and electrical
wires in household appliances, television and radio
receivers, communication equipment, and other products
made by this industry. Designing and installing solidstate controls generally require more engineers and
technicians, and fewer assemblers, solderers, and
machine operators than the older processes. Numerically
controlled machine tools are achieving labor and other
savings in turning out communication equipment and
other industry products. Electrodeposition painting
technology is being used in household appliances,
resulting in reduced labor requirements and materials
costs. Table 3 provides a brief overview of the major
34
Table 3.
Major technology changes in electrical and electronic equipment
D e s c r ip t i o n
T e c h n o lo g y
E q u ip m e n t t o d e s ig n a n d f a b r i
L a b o r i m p l ic a t i o n s
C o m p u t e r s a n d v i d e o d i s p l a y t e r m in a ls c a n
b e u s e d to
D iffu s io n
D e s i g n in g a n d f a b r ic a t in g s e m i
C o m p u te r -a s s iste d
a u to m a tic p a c k a g in g e q u ip m e n t
d e s ig n
and
re
d e s ig n a n d la y o u t c o m p l e x in t e g r a t e d c ir c u i t s in le s s tim e
co n d u cto rs
la te d d e v i c e s , i n c lu d i n g m ic r o
t h a n is n e c e s s a r y f o r o l d e r m e t h o d s . T h is is e s p e c i a l l y a p p li
m o r e s c ie n t is t s , t e c h n ic i a n s , a n d
a r e in l im it e d
p ro cesso rs
c a b le t o m ic r o p r o c e s s o r s , w h ic h a r e a m o n g th e m o s t c o m
e n g i n e e r s — a n d f e w e r a s s e m b le r s
h ig h
p le x s e m i c o n d u c t o r d e v i c e s .
and
m a c h in e
f a b r ic a t io n e q u i p m e n t is s t a n d
th e
m a n u fa ctu re
c a te s e m i c o n d u c t o r s a n d
r e q u ir e
r e la t iv e l y
o p e r a t o r s — th a n
of
e le c t r o n
F a b r i c a t i o n o f s e m i c o n d u c t o r s is h i g h ly a u t o m a t e d . P a c k
c o n tr o ls
e it h e r v e r y l a b o r i n t e n s i v e o r v e r y a u t o m a t e d , b u t t h e la tte r
C o m p u t e r -a s s is t e d d e s ig n
r e q u ir e s s u b s t a n t i a l c a p i t a l i n v e s t m e n t .
H ig h l y
a u to m a te d
ard.
tu b e s o r m e c h a n ic a l s w itc h e s a n d
a g i n g t h e s e m i c o n d u c t o r s a f te r t h e f a b r ic a t io n s te p c a n b e
c o st.
u s e d u e t o t h e ir
o f s e m ic o n d u c to r s c o u ld r ed u ce
w h ic h
th ey
r e p la c e .
(C A D )
th e d e m a n d f o r d r a f t i n g e m p l o y
ees,
b ecau se
e n g in e e r s
u s in g
CAD c a n d o m o r e o f th e d e s ig n
a n d l a y o u t w o r k t h e m s e lv e s , i n
s te a d o f d e l e g a t i n g th is w o r k to
d r a f te r s . I f a u t o m a t e d p a c k a g in g
te c h n o lo g y b e c o m e s m o re w id e
ly u s e d , it c o u l d r e d u c e t h e d e
m a n d f o r w o r k e r s i n v o lv e d w it h
m a n u a l p a c k a g in g o p e r a tio n s .
C o m p u t e r c o n t r o l l e d a u t o m a t i c s e q u e n c in g a n d in s e r t in g
N e w a s s e m b ly t e c h n o lo g y g e n e r
a l ly
l o w e r s u n it l a b o r r e q u ir e
U .S . i n s t a l la t io n o f a t e c h n o l o g y
m e n ts a n d m o d if i e s j o b d u t i e s .
e x p e c t e d t o b e u s e d m o r e w id e ly
in s e r t in g c o m p o n e n t s m a n u a l ly , a r e b e i n g p u t i n t o u s e to
N e w te c h n o lo g y fo r a s s e m b ly o f
in th e U n it e d S t a t e s a n d a lr e a d y
m a n u fa ctu re
b ly -lin e o p e r a t i o n s
e q u i p m e n t fo r e le c t r o n ic c o m p o n e n t s , a l o n g w it h a n e w
a s s e m b l y lin e w h e r e o p e r a t o r s c o n t r o l t h e lin e s p e e d w h ile
I n c r e a s e d a u t o m a t i o n in a s s e m
of
a p p l ia n c e s , fo r e x a m p le , r e q u ir e s
in g e n e r a l u s e in J a p a n . M o s t o f
t e l e v is i o n
r e c e iv e r s .
In
th e
p r o d u c t io n
T h is T V a s s e m b l y lin e is th e fir st
h o u s e h o l d a p p l ia n c e s , la r g e r c a p a c it y p r e s s e s a n d a r a n g e o f
m e n t u s e d in a p p l ia n c e m a n u f a c
c h i n e f e e d i n g a n d l o a d in g , a n d
t u r in g h a s b e e n in tr o d u c e d in th e
m e n t f o r s o m e w e l d i n g , f a s t e n i n g , m a te r ia l h a n d li n g , a n d
m a in t e n a n c e . M a n u a l t a s k s a r e
la st 5 y e a r s . R o b o t s a r e lik e ly to
p r o d u c t io n o p e r a t i o n s .
t o o ls
th e a u t o m a t e d a s s e m b l y e q u i p
f o r e q u i p m e n t m o n it o r in g , m a
i n g lim it e d a p p l ic a t io n s o f r o b o t s ; a n d a u t o m a t i c e q u i p
N u m e r ic a l ly c o n t r o l l e d m a c h in e
a h ig h e r p r o p o r t io n o f w o r k t i m e
a u t o m a t i c a s s e m b l y p r o c e s s e s a r e b e in g in t r o d u c e d , i n c lu d
reduced.
in c r e a s e in u se .
N u m e r ic a lly c o n t r o l l e d
m a c h in e t o o l s a r e b e i n g u s e d to
tu r n o u t a w id e r a n g e o f p r o d u c t s w h ic h a r e p r o d u c e d in
s m a ll v o l u m e .
In a d v a n c e d
sy ste m s, c u ttin g
seq u en ces,
U n it l a b o r r e q u ir e m e n ts in m a
N e a r ly
c h i n in g
t r o lle d m a c h in e t o o ls w e r e in u s e
o p e r a t i o n s a r e l o w e r in
5 ,0 0 0
n u m e r ic a l ly c o n
n u m e r ic a l c o n t r o l , a n d s k ill re
in th e in d u s t r y in 1 9 7 8 , w it h in
m a c h in e s p e e d , a n d o t h e r o p e r a t i o n s a r e c o n t r o l l e d b y a
q u ir e m e n ts
crea sed
c o m p u te r .
m o d if i e d . O p e r a t o r s m o n it o r th e
T h e c o m m u n ic a tio n e q u ip m e n t
m a c h in e
a n d e le c t r i c a l in d u s t r ia l a p p a r a
fo r
to o l
m a c h in i s t s
o p e r a tio n
are
r a th e r
d iffu s io n
a n t ic i p a t e d .
th a n d i r e c t ly m a n ip u la t e e q u i p
tu s s e c t o r s o f th e i n d u s t r y le a d in
m e n t,
a p p l ic a t io n o f n u m e r ic a l c o n t r o l .
w it h
p rogram m er
and
m a in t e n a n c e w o r k e r s s k ille d in
e le c t r o n ic s r e q u ir e d in n u m e r ic a l
c o n t r o l in s t a l la t io n s .
A d v a n c e d e q u i p m e n t is b e in g u s e d to tu r n o u t s e v e r a l k e y
A d v a n c e d p r o d u c t io n t e c h n o l o
E l e c tr o s ta t ic a n d e le c t r o c o a t i n g
g y g e n e r a ll y r e d u c e s u n it la b o r
p r o c e s s e s a r e in u s e in a n u m b e r
r e q u ir e m e n ts . N e w e le c t r o s t a t ic
o f p la n t s .
r e s u lt in g in in c r e a s e d p r o d u c t iv i t y . In t h e m a n u f a c t u r e o f
p a i n t in g lin e s , fo r e x a m p le , f e a
a u t o m o b i l e h e a d l ig h t s , f il a m e n t s a r e p o s i t i o n e d m o r e a c c u
tu r e m o d e r n c o n v e y o r lin e s a n d
r a te ly a n d t e s t in g t im e r e d u c e d b y u s e o f n e w e q u i p m e n t .
little
H o u s e h o ld a p p l ia n c e s c a n b e p a in t e d o n a u t o m a t i c lin e s ,
L abor
w ith th e u s e o f e le c t r o s t a t ic p a i n t in g t e c h n o l o g y . T h e e le c
e q u ip m e n t
p r o d u c t s o f th e i n d u s t r y . F o r e x a m p l e , s o m e p o r t io n s o f
e le c t r i c m o t o r s a r e n o w p r o d u c e d o n a u t o m a t i c e q u i p m e n t ,
A d v a n c e d p r o d u c t io n
w ith d r y p o w d e r p a in t t h a n w ith
or
no
m anual
r e q u ir e m e n ts
p a in t in g .
are
lo w e r
t r o s t a t ic s p r a y p r o c e s s u s e s e it h e r liq u id o r d r y p o w d e r
liq u id p a in t . L a b o r r e q u ir e m e n ts
p a in t . A n e le c t r o c o a t i n g p r o c e s s , in w h ic h m e t a l p a r ts are
are a ls o
d ip p e d i n t o p a i n t , is a l s o u s e d f o r h i g h - v o lu m e fin is h in g
w o r k o n h o u s e h o l d a p p l ia n c e s .
o p e r a tio n s .
labor requirements considerably. Semiconductor devices
perform most functions of electron tubes (except cathode
ray tubes), but are smaller, more reliable, and generally
less expensive. As a result, semiconductor devices have
replaced most electron tubes. The switch from
manufacturing electron tubes to semiconductor devices
requires more engineers, scientists, and technicians; and
fewer assemblers and operators since many manufactur
ing operations are automated. The impact of this
technology is marked. Employment in the part of the
industry manufacturing electron tubes has declined
steadily, while employment in the rest of the industry—
including semiconductors—has risen sharply.
The first steps in fabricating a semiconductor device—
circuit design and mask making—are complex and re
quire high-level technology. Many months are needed to
technological changes taking place in this industry, their
labor implications, and their expected diffusion.
Prodyetioni of electronic components
Manufacturing electronic components (SIC 367) has
traditionally been labor intensive, involving assemblers,
machine operators, inspectors, and related occupations.1
This industry’s development of semiconductors since the
mid-1960’s has changed its production methods and
'Electronic components (sic 367) consists of two major product
groups. One group comprises all types of electron tubes: Television
cathode ray picture tubes (sic 3672), all other radio and television tubes
(sic 3671), and transmitting, industrial, and other special-purpose
electron tubes (sic 3673). The second group contains several products;
the most important from the standpoint of technological and
occupational changes are semiconductors and related devices (sic 3674).
l o w f o r e le c t r o c o a t i n g
35
design a complex integrated circuit and to make photo
masks from which the circuits will be produced. Design
and layout involve determining which electronic compo
nents (transistors, resistors, etc.) are required to make the
circuit perform as desired; then deciding how to arrange
the circuit components in the circuit base material.
Conventional methods of circuit design and layout—
drawing circuits by hand on graph paper and assembling
“bread board” circuits for testing—are slow and require
skilled scientists and technicians. Computer-assisted
design ( c a d ) is faster, more accurate, and allows the
designer flexibility in circuit design and layout.
Developing a CAD system requires complex programming
to store information in the computer and to display and
position the simulated circuits on a cathode ray tube
terminal. CAD is used by only a few manufacturers, since
equipment and software costs are high and the system
must be used intensively to be cost effective. But where it
can be used, results can be dram atic: In some applications
for thick-film integrated circuits, computer-aided design
reduced costs by 300 percent.2
As CAD technology is diffused more widely, several
occupations will be affected. Computer specialists will be
needed for initial program set-up, but this could be a one
time operation for each CAD system. Drafters might be
largely bypassed as engineers use video terminals for
design and layout. Computer control may also be
extended to photographic and mask-making operations,
similar to automatic printing plate technology used in the
graphic arts industry. This could reduce employment of
technicians who presently do the photographic work in
mask making.
Integrated circuit fabrication is a highly automated,
batch-type process that can produce hundreds of sepa
rate, complete circuits in each production run. Silicon
cylinders several feet long by several inches in diameter
are sliced into thin wafers, loaded onto special trays, and
put through production steps as a group. During produc
tion, many tiny circuits are fabricated, side by side, across
the surface of each wafer.
Labor costs in integrated circuit fabrication are rela
tively low because of extensive automation. Most labor
requirements are associated with loading and unloading
the trays of wafers, and with operating fabricating and
testing equipment.
After the wafer is cut into individual circuits, the tiny
circuits are encased in protective packages. The packages
are larger and stronger than the circuit dies, and contain
the electrical connections needed for electronic appli
ances. In general, the packaging process involves bonding
individual circuit dies onto metal stampings, then attach
ing very fine wires to make the electrical connections
between the dies and the electrodes on the stampings.
Plastic covers are then molded around the dies, sealing
them inside the now-complete packages. Finally, each
circuit is tested to insure proper operation.
Circuits are most commonly packaged manually,
which is quite labor intensive. An alternative has been to
use automated handling equipment, although high equip
ment costs have limited this option. However, since labor
costs are rising and packaging technology is improving,
use of automated equipment may increase.
2
“Hybrid-circuit Technology Keeps Rolling Along,” Electronics, July
22, 1976, p. 104.
3Donald L. Owens, “Microelectronics: A New Horizon for Appli
ances,” Appliance, July 1979, pp. 28-31.
Microelectronic technology
Microprocessors are a fairly recent development of
semiconductor technology, and are of importance to the
electronics industry both as a product sold to others and
as a technology that can be applied to the industry’s own
design and production operations. A microprocessor
contains a complete miniature processing unit on a single
silicon chip. It can be combined with other chips contain
ing memory, timer, and input-output functions to build a
complete microcomputer system on a single circuit board.
Designing and fabricating microprocessor chips is a very
complex undertaking, but the range of applications is
already substantial and is growing rapidly. The largest
volume of microprocessors in use are low-powered 4-bit
devices that provide relatively simple control functions.
More powerful 8-bit devices, however, account for most
of the revenue from sales related to microprocessors.
Microprocessor-based systems are expected to dra
matically change the function and capabilities of house
hold appliances during the 1980’s. Estimates vary on the
rate of diffusion of microelectronics in the appliance
industry through the mid-1980’s, but one industry source
estimates that 50 percent of all major appliances will be
controlled by microelectronic devices.3
One of the most popular applications of microcomput
ers will continue to be microwave ovens, where sophisti
cated controls allow a wide range of cooking sequences
and temperatures (including ovens that can be pro
grammed by the user). Microcomputers also are being
used in cooking ranges, dishwashers, clothes washers and
dryers, and other household appliances.
The growing application of microelectronics to indus
trial and household appliance controls has brought about
changes in design and production operations. Mechanical
engineers and industrial designers work more closely with
electrical engineers to develop electronic controls as
substitutes for mechanical and electromechanical con
trols. Assembly operations and labor requirements
change when solid-state controls are used. It is no longer
necessary, for instance, to route and solder large numbers
of individual wires into place; thus fewer solderers are
needed. Also, flat electrical cables and flexible printed
circuits with plug-in connectors are replacing bundles of
separate wires. There may be a secondary impact in that
fewer components and less equipment are needed to
produce electronic controls. This could reduce the labor
36
Automated] ©quSpmsmfl to tost TV picture tubes
needed for stock control, material handling, warehous
ing, and transportation.
S prove mentis in assembly technology
m
Many types of assembly operations take place in the
diverse group of industries that make up the electrical and
electronic equipment industry. Technological innovations
in assembly include increased automation and improved
manual assembly lines for TV receiver producers and, in
appliance manufacturing plants, automated assembly
operations for household appliances and in-house
assembly of printed circuit boards.
A major domestic TV manufacturer has begun oper
ating a new assembly line that has increased productivity
and product quality. This is the first such TV receiver
assembly line in operation in the United States, although
this type of assembly line has been used for several years
in Japan with considerable success. The new line features
both computer-controlled automatic sequencing and
component inserting equipment, as well as new tech
nology for inserting parts manually, and is achieving
productivity gains. On the new line, solid-state compo
nents come packaged in reels from vendors. Only one type
of component is included in each reel, and each reel may
contain several hundred components. A number of these
one-of-a-kind reels are mounted on a component se
quencing machine which—under computer control—
37
automatically removes individual components and de
posits them on a conveyor in the sequence required for the
automatic inserting machine. The conveyor transports
each component through an automatic testing station to
insure that it functions properly and is in the correct
sequence. Finally, the components are automatically
taped onto a new reel for use in the inserting machine,
which automatically inserts components onto the circuit
boards and then cuts and crimps the wire leads on each
component to secure them to the board. Completed
circuit boards are transported through an automated
wave soldering machine that solders all electrical connec
tions in one operation.
Most operators on the new line originally held assem
bly jobs involving manual insertion of components into
circuit boards or manual assembly of parts onto the
television chassis. When the automated equipment was
brought into the plant, this group was retrained to load
and operate the machines. The machine operator posi
tions involve higher skill and pay levels.
Productivity is increased with the automatic sequenc
ing and inserting equipment in that operators can insert
more components per hour than is possible with the same
number of people manually inserting components into
circuit boards. Additionally, quality is improved since
every component in the automatic line is tested before
being inserted into the boards. A major feature of the new
line is the specially designed assembly equipment for
manually inserting components that cannot be handled
on the automatic equipment.
In the manufacture of appliances, improved tech
nology is being installed in major production tasks.
Sheet-metal components are being fabricated by larger
capacity presses fed directly from coils of sheet metal.
These components are produced at high speeds with a
minimum of manual handling.
New technology for high-volume assembly also is being
introduced. Assembly tasks are labor intensive. When
assembly lines become automated, unit labor requirements
are lowered and job skills frequently shift to machine
monitoring, machine feeding and unloading, and machine
maintenance.
One manufacturer is using automatic assembly tech
niques to insert a retaining pin into the spout cap of a tea
kettle, in place of a manually fastened screw-and-nut
assembly. The automatic equipment has increased the
assembly rate by 84 percent, lowered unit labor require
ments, and decreased fastener costs.
Another appliance manufacturer has installed an
automatic line to assemble washing machine cabinets that
has a maximum output of 350 cabinets an hour. Sheetmetal blanks pass through presses that shape them into
cabinets, which then move past automatic welding
stations where gussets and brackets are attached. The
cabinets next are transported by conveyor through a
manned inspection station and then to the finishing area.
The entire line is staffed by three operators and one
inspector, who checks*cabinets as they come off the line.
In a less mechanized, conventional system with the same
volume of output, labor requirements would be higher. A
solid-state control system with a cathode ray tube (CRT)
display terminal provides data on malfunctions and
defects which facilitate repairs. The automatic assembly
line has increased output by 40 percent, raised cabinet
quality, and improved operator safety.4
Robots are being used in several assembly applications
by one large manufacturer of appliances to cut costs and
improve productivity. In one application, two robots are
used to load and unload a press that trims plastic liners
used in refrigerators. In another application elsewhere on
the assembly line, two more robots spray the interiors of
the refrigerator cabinets with an adhesive that holds a
layer of foam insulation; each robot takes the place of two
workers and there is a 10-percent reduction in the amount
of adhesive material used.5
One manufacturer recently built a highly mechanized
assembly line for energy-saving refrigerators that speeds
production and testing procedures, and reduces labor
requirements for machine operators, welders, and mate
rial handlers. The cabinets are produced on a semiauto
matic line that includes an automatic destacker (which
transfers metal cabinet blanks onto the production line)
and an automatic electric resistance welding station.
Serpentines—the metal tubes that carry freon inside
refrigerators—are made in an off-line operation. Coils of
metal tubing are fed into a machine that automatically
straightens the tubing, then cuts and bends it into the
proper dimensions for installation in refrigerators. Solidstate controls give flexibility in programming the equip
ment to make serpentines of varied sizes.
Foam insulation is injected into the cabinets on a 6station automatic foaming installation that utilizes solidstate controls. Only one person is needed to operate this
equipment. Cabinets are brought by conveyor belt, where
a system of photo cells and magnetic tape readers routes
the cabinets—via a turntable and runout conveyors—to
the proper foaming station. The cabinets are automatical
ly positioned on the foaming fixtures, filled with insula
tion, and lowered onto another conveyor to leave the
foaming operation.6
Appliance manufacturers have begun to assemble their
own printed circuit boards instead of purchasing them
from electronic component suppliers. Thus, technology
and labor are “transferred” from one sector of the
electrical and electronic equipment industry to another.
The assembly of printed circuit (P C ) boards involves
inserting resistors, capacitors, integrated circuit (IC)
chips, and other components onto the boards, soldering
all connections, then cleaning and inspecting the
completed boards. Assembly methods range from largely
manual tasks—the predominant method at this time—to
semiautomatic and fully automatic processes. There are
several “aided manual” systems that allow relatively
unskilled operators to assemble complete PC boards. One
of these systems, for example, positions the PC board in a
machine which guides the operator through a sequence of
production steps by illuminating the appropriate holes in
the PC board into which each succeeding component is to
be inserted. At the same time, a tray of parts is positioned
so that only the proper component is accessible to the
operator. If the more automatic processes become more
prominent, the employment of assemblers will be
affected.
W er6<D
ym
S)IS]/ ©©onfiroiled machine tools
Numerically controlled machine tools are being used
increasingly in the electrical and electronic equipment
industry. They are used most extensively in the
communication equipment and electrical industrial
apparatus sectors of the industry to turn out a wide range
of products which are produced in small volume. More
than 1,000 numerically controlled machine tools are
being used in each of these two major sectors.7 In
advanced numerical control systems, cutting sequences,
6Gene Morgan, “A Sophisticated System Speeds Production,”/!/?/?/;ance, September 1977, pp. 50-52.
7“The 12th American Machinist Inventory of Metalworking Equip
ment 1976-78,” American Machinist, December 1978.
4James Stevens, “A New Cabinet Line Pays off for Maytag,”
Appliance, February 1976, pp. 34-35.
5“Robots Join the Labor Force,” Business Week, June 9, 1980, p. 68.
38
machine speed, and other operations are controlled by a
computer with significant savings in unit labor
requirements, tooling costs, and lead time. The function
of the machine operator has changed from direct manual
manipulation of equipment to monitoring the operation
of the machine tool and loading and unloading parts. A
programmer—a new position—develops the sequence of
operations, tools to be used, and feed and speeds of the
machine tool. Maintenance workers with a knowledge of
electronics are needed to service numerical control
systems. The outlook is for further advances in numerical
control technology including its use for inspection of
parts.
Adwam
tstid] production equipment
Other production processes where new technology is
being used include the manufacture of portions of elec
tric motors, testing of automobile headlamps, and paint
ing of household appliances.
Automated stator production. Automated equipment is
being used to manufacture stators for electric motors.
Automatic presses stamp out selected parts, insulation is
inserted automatically into the stator core, and coils are
wound and inserted automatically. The new equipment
has considerably increased line speed, increasing the
output without increasing the work force.
nated and manual touch-up is reduced. Other factors
favorable to further diffusion include easier paint han
dling and clean-up operations. Energy requirements also
are lower. One firm which replaced a wet system with a
porcelain enamel powder system reported labor costs
were lower by 33 percent, rejects and materials were re
duced by 50 percent, and quality was improved.8 A dis
advantage is the inability of dry painting systems to
handle frequent color changes. In 1976, nearly ^ e le c tro
static thin-film powder spraying systems for appliances
were in use. Additional installations are forecast for the
1980’s.9
Another form of electrodeposition—electrocoating—
involves immersing a metal part into a tank of coating
material. The metal and the liquid in the tank carry oppo
site electrical charges, which form the bond, providing a
continuous, evenly deposited film on the metal part. This
process was introduced for high-volume finishing opera
tions in the m id-1960’s, and has since gained wide accept
ance, especially for applying primer coats on appliances.
The process is less labor intensive than conventional
painting processes, gives a uniform coating even on intri
cately shaped objects that have hidden or recessed areas,
minimizes material costs because there is almost no
wasted paint, and causes much less air and water pollu
tion.1
0
©utpuft m d Fr©dy(gtswifiy ©utl@®lk
Automobile headlamp testing. Photometric equipment
that evaluates and records headlamp performance auto
matically is helping manufacturers test headlamps to
ensure they meet specifications set by the Federal Govern
ment. The time required to test headlamps has declined
from 20 minutes to less than 5 minutes, with sophisticated
optical equipment available to position headlamp fila
ments to close tolerance, thus increasing worker output
and productivity.
Advanced painting technology. New technology for the
electrical depositing of paint onto household appliances is
being introduced more widely. In electrostatic painting,
paint particles are electrically charged and sprayed onto
surfaces carrying an opposite electric charge to form a
strong bond. The painted surface is then baked to a hard
finish. The electrostatic process can be used with liquid or
“wet” paint or the increasingly popular dry powder paint.
Labor requirements in the new electrostatic systems are
lowered since material handling and painting tasks are
largely automatic; robots are used in some installations.
At one plant manufacturing household appliances, an
operator manning a control console on a newly installed
wet painting electrostatic line can change paint colors in
60 seconds. Quality of painting is improved and main
tenance costs are lowered.
Dry powder paint, used in the electrostatic process, is
expected to be employed more widely during the 1980’s.
Dry powder painting systems require fewer operators
than liquid or “wet” systems since paint mixing is elimi
©ySpyt!
The electrical and electronic equipment industry turns
out a variety of products for government, industry, and
consumer use. This product diversity is shown in table 4,
which presents output growth in major industry sectors.
Output in the industry as a whole has increased at a
relatively high annual rate. According to the Federal
Reserve Board production index for this industry, output
grew steadily from 1960 through 1980, averaging a
growth rate of 5.9 percent a year. As shown in table 4, the
rate of growth in output was substantially higher during
1960-67 than in 1967-80. There was a slight dip in output
during 1970 and 1971, after which output climbed to a
peak in 1974, dropped rather abruptly in 1975, and then
rose sharply in 1976 through 1980.
Output in the electronic components industry (electron
tubes, semiconductors, integrated circuits, etc.) has
grown more rapidly than in any other industry in the
group, increasing at an average annual rate of 12.5
percent during 1960-80, more than double the annual
growth rate for total electrical and electronic equipment
over the same period. Most of this expansion in output
has been in integrated circuits—which include micro8“Plant Experiences with Porcelain Enamel Powders,” Appliance,
November 1978, pp. 49, 67.
9Gene Morgan, “Focus: Powder Coating,” Appliance, September
1976, pp. 45-49.
10Gene Morgan, “Electrocoating,” Appliance, November 1978, pp.
39-41.
economy in a growing number of products from games to
industrial robots), will require further expansion of
production facilities. In electrical equipment, demand for
electric transformers and switchgear depends heavily
upon residential, commercial, and industrial construc
tion. In major household appliances, population growth,
family starts, and housing construction influence final
demand.
Table 4. O utput growth in electrical and electronic equipm ent,
1960-80
SIC
Industry sector
Average annual percent change1
1960-80
36
361,2
363
365
366
367
369
Total electrical and elec
tronic equipment2 ...........
Electrical equipment
and parts .......................
Household appliances ..
Radio and TV receiving
equipment ....................
Communication
equipment ....................
Electronic com
ponents .........................
Miscellaneous electrical
equipment ....................
1960-67
1967-80
5.9
10.5
4.2
4.2
4.6
8.1
8.7
2.8
2.5
3.3
13.8
.6
3.8
7.0
2.7
12.5
22.0
8.8
5.5
7.2
5.0
Productivity
Although a productivity measure for total electrical
and electronic equipment is not published by the b l s , the
measures available for several of the individual industries
indicate that productivity change varies significantly by
industry, and that growth rates have slowed over the past
decade.1
1
The rate of increase in output per employee hour in the
industries for which BLS publishes measures ranged
during 1960-79 from an annual rate of 1.8 percent in
electric lamps to an annual rate of 4.4 percent in major
household appliances (table 5). In household appliances,
output grew more rapidly than employee hours during
1960-68; output continued to grow slowly and employee
hours declined during 1969-79. In all five of the industries
included in table 5, the rate of increase in output per
employee hour was lower from 1967 to 1979 than from
1960 to 1967. The sharpest decline in productivity was in
motors and generators.
The extent to which technology affected the movement
of productivity cannot be measured precisely. In all five of
these industries, and in others for which BLS measures are
not available, new technology has reduced unit labor
requirements in selected production operations. The
anticipated higher levels of spending for new plant and
equipment could contribute to further productivity gains
in key production tasks.
1Least squares trend method.
2Includes data for SIC 364, electric lighting and wiring equipment, not
available separately.
SOURCE: Board of Governors of the Federal Reserve System.
processors, introduced in the mid-1970’s and gaining
widespread acceptance. Passive components (such as
capacitors, resistors, and connectors) and discrete
semiconductors have made lesser contributions.
Output of electron tubes was fairly stable during the
1970’s; the decline in production of receiving tubes (as
solid-state components became more widely used) was
offset by slight gains in TV picture and specific-purpose
tubes.
Output growth was slowest in radio and TV and
communication equipment. Consumer discretionary
income and imports affect the level and growth of output
in the radio and TV industry—which includes a number
of consumer electronic components in addition to radio
and TV receivers. In communication equipment,
telephone and telegraph products account for almost onethird of the value of industry shipments. The remaining
two-thirds consist of electronic systems and equipment
for which the U.S. Government is the major purchaser—
especially the Departments of Defense and Transporta
tion, and the National Aeronautics and Space Adminis
tration. Output growth, therefore, depends heavily upon
the demand from new households, business communica
tion needs, and Federal Government procurement
policies.
Table 5. OuftpuS per em ployee hour in selected electrical and
electronic equipm ent industries, 1SS0-79
Output per employee hour
SIC
Average annual percent change
1960-79
1960-67
1967-79
1.2
3621
The expansion of output in the major sectors of the
electrical and electronic equipment industry will continue
to depend on several factors. In electronic components,
for example, the growing commercial diffusion of a
relatively new product, microprocessors (a complex
integrated circuit finding application throughout the1
1 Productivity measures are published by the bls for the following
1
five industries: Motors and generators (sic 3621); major household
appliances (sic 3631, 32, 33, and 39); radio and TV receiving sets (sic
3651); electric lamps (sic 3641); and lighting fixtures (sic 3645,46,47,
48). See Productivity Measures for Selected Industries, 1954-79,
Bulletin 2093 (1981).
Industry
Motors and generators
2.1
5.6
3631,32,
33,39
Major household
appliances ..................
4.4
6.1
3.9
3641
Electric lamps ...............
1.8
2.8
2.1
3645,46,
47,48
Lighting fixtures ...........
'2.6
22.9
3
2.6
3651
Radio and TV receiving
sets ...............................
3.9
6.0
3.4
11961-78.
21961-67.
31967-78.
SOURCE: Bureau of Labor Statistics.
40
Invest m®mt
major industry groups for which the National Science
Foundation provides data.
Capital expenditures
The electrical and electronic equipment industry has
invested substantial funds for capital improvements,
including the latest production technologies discussed in
this report. In 1976, expenditures for new plant and
equipment totaled $1.7 billion (constant 1972 dollars),
more than twice the $800 million invested in I960.1
2
Capital expenditures per production worker averaged
$1,385 in 1976, well above the average of $803 in 1960.
The pace of capital spending has been uneven. Over the
longer term 1960-76 period, expenditures for plant and
equipment rose at an annual rate of 5.3 percent. Capital
spending during 1960-67 increased at a substantially
higher annual rate of 14.0 percent. In the 1967-76 period,
however, during which expenditures fluctuated markedly,
outlays (in constant dollars) declined by an average
annual rate of 0.2 percent. Between 1973 and 1976, the
decline averaged 7.8 percent a year.
Capital spending also varied significantly among the
individual industries which make up the total electrical
and electronic equipment industry. The electronic
components industry led all industries in the group with
$478 million spent for new plant and equipment in 1976.
Expenditures in communication equipment were the
second highest, $399 million in 1976. Combined, these
two industries were the source of more than one-half of
capital spending.
Employment amid OecypatSonal Trends
Employment
The industry employed slightly over 2.1 million
workers in 1980 compared to 1.4 million in 1960—a 1.6percent annual growth rate (chart 9). More than one-half
of the industry work force in 1980 was engaged in
manufacturing communication equipment and electronic
components.
The trend in employment, as in other measures for this
group of industries, varied among the major industry
sectors (table 6). Employment in electronic components
increased at the greatest annual rate (3.4 percent) during
1960-80, a period of generally strong demand for these
products, particularly integrated circuits (which include
microprocessors). The average annual employment
growth rate has been slowest in electric transmission and
distribution equipment and radio and TV receiving
equipment. Employment in these industries increased
during the 1960’s, then declined during the 1970’s, so that
by 1980 the level was about the same as in 1960.
Employment growth in the electrical and electronic
equipment industry was highest during 1960-67,
compared to the more recent 1967-80 period. As
indicated in chart 9, employment increased at an annual
rate of 4.1 percent during 1960-67, compared to an
Resegirelh) smd development
The electrical and electronic equipment industry is a
leader in research and development ( r & d ) spending.
According to the National Science Foundation, R&D
expenditures by the electrical and electronic equipment
industry totaled $7.6 billion in 1979, up from the $2.9
billion allocated in 1963.1 In 1979, this industry ranked
3
second only to aircraft and missiles in total funds
allocated to R&D. Federal Government R&D funds
accounted for 42 percent of the $7.6 billion spent in 1979,
and company funds, 58 percent. Since 1973, company
funds for R&D in electrical machinery and communica
tions have exceeded Federal Government R&D funds.
The electrical and electronic equipment and communi
cation industries employed 94,700 R&D scientists and
engineers (full-time equivalent) in 1980, leading all other
Table 6. Average annual rates of change in employment, electri
cal and electronic equipment, 1960-80
SIC
Average annual percent change1
(all employees)
1960-80
1960-67
1967-80
Total electrical
and electronic equip
ment .................................
1.6
4.1
0.6
Electrical transmission and
distribution equipment . . . .
.1
2.3
-1.6
Electrical industrial
apparatus.............................
1.7
3.0
1.1
363
Household appliances .........
.8
2.5
-.3
364
Electrical lighting and
wiring equipment ..............
2.2
6.3
.6
Radio and TV receiving
equipment ...........................
.0
6.8
-2.6
Communication equip
ment ....................................
.7
3.0
-.5
367
Electronic components .......
3.4
7.8
2.4
369
Miscellaneous electrical
equipment ...........................
2.9
1.0
3.3
36
361
362
1 Capital expenditures data are from unpublished, deflated total
2
annual investment series developed in the bls Office of Economic
Growth and Employment Projections. See Capital Stock Estimates fo r
Input-Output Industries: Methods and Data, Bulletin 2034 (1979).
Expenditures for 1976 are the latest available.
365
366
1 These are current-dollar data; the increase in real terms is not as
1
great. Before 1978, the National Science Foundation published R&D
expenditure data for both electrical and electronic equipment (sic 36)
and communications (sic 48) as one combined figure. Very little R&D
work is done in sic 48. It is largely a service industry that uses equipment
developed and manufactured insic 36. Beginning in 1978, R&D data for
the two industries are published separately.
Industry sector
' Based on least squares trend method.
SOURCE : Bureau of Labor Statistics.
41
Chari 9. Employment in electrical and electronic equipment,
1960-80, and projections for 1980-90
Employees (thousands)
3,000
0
I960
1965
1970
1975
' Least squares trend method for historical data; compound interest method
for projections.
Note: See text footnote 14 for explanation of alternative projections.
Source: Bureau of Labor Statistics.
42
1980
1985
1990
annual rate of 0.6 percent during 1967-80. Employment
dropped sharply (by about 14 percent) between 1974 and
1975 as demand slackened. This pattern of employment
growth—a higher rate during the earlier of the two
periods discussed in this report, followed by a lower
growth rate or a decline in employment during the latter
portion—was experienced in all industry sectors except
miscellaneous electrical supplies.
The outlook is for employment in this group of
industries to increase at an average annual rate of 1.7 to
2.5 percent between 1980 and 1990, according to BLS
projections based on three versions of economic growth.1
4
©<s<£ypati©8!s
The structure of occupations is expected to undergo
change. As shown in chart 10, all the major occupational
groups except sales workers are expected to increase
between 1978 and 1990.
Operatives, the largest occupational group in the
industry, accounting for about 45 percent of total
employment in 1978, are projected to increase by more
than one-fourth between 1978 and 1990. They will
continue to be by far the largest occupational group (47
percent of total employment in 1990). Assemblers make
up more than one-third of the operatives; they are.
expected to increase in number at a slightly higher rate
than the average for all occupations in the industry.
Although new technologies applicable to assembly
operations will be diffused more widely, assembly of
household appliances and other products is expected to
continue to involve a high degree of manual tasks. In
some assembly operations, however, manual tasks are
expected to decline and job skills increasingly will involve
more equipment monitoring, machine feeding and
unloading, and equipment maintenance. In contrast to
assemblers, employment of solderers is expected to
decline by 30 percent and welders and flamecutters by 8
percent between 1978 and 1990 as automated equipment
is diffused more widely. In craft occupations, employ
ment of mechanics, repairers, and installers is expected to
increase sharply as mechanization of production
operations continues in the 1980’s.
The rate of employment change in the major
occupational categories presented in chart 10 is expected
to vary among the industry sectors. Thus it is useful to
1 Projections for industry employment in 1990 are based on three
4
alternative versions of economic growth for the overall economy,
developed by bls. The low-trend version is based on a view of the
economy marked by a decline in the rate of expansion of the labor force,
continued high inflation, moderate productivity gains, and modest
increases in real output and employment. In the high-trend version I, the
economy is buoyed by higher labor force growth, much lower
unemployment rates, higher production, and greater improvements in
prices and productivity. The high-trend version II is characterized by the
highGNP growth of high-trend I, but assumes the same labor force as the
low trend. Productivity gains are quite substantial in this alternative. On
chart 9, level A is the low trend, level B is high-trend I, and level C is
high-trend II. Greater detail on assumptions is available in the August
1981 issue of the Monthly Labor Review.
examine BLS occupational projections for three industry
groups: Household appliances (SIC 363); radio and TV
and communication equipment (sic 365,6); and a
miscellaneous group that covers SIC 361, 2, 4, 7, and 9.
Less change in the composition of occupations is
expected in the radio, TV, and communication
equipment group than in the others. Employment of
operatives, who account for more than one-third of the
employees in this industry group, is expected to increase
by about 12 percent between 1978 and 1990. However,
fewer solderers will be needed. Professional and technical
workers are expected to increase at a greater rate, while
sales workers, service workers, and clerical workers are
projected to decline.
Strong employment growth is expected in household
appliances—numerically the smallest of the three
industry groups. Sales workers is the only major
occupational group in which a decline is expected.
Professional and technical workers should increase,
although at a lower rate than the other occupational
groups.
Employment in all occupations except sales workers is
expected to grow in the miscellaneous group. Large
increases are expected for managers, clerical workers,
craft workers, operatives, and laborers. Professional and
technical workers and service workers should experience
smaller employment increases.
Adjustment of workers to technological change
Although new technology is not expected to result in
major displacement, some collective bargaining contracts
in the electrical and electronic equipment industry
contain specific provisions concerning technological
change. One such agreement requires that the company
provide the union (the International Brotherhood of
Electrical Workers) with at least 4 weeks’advance notice
before installing numerical-control or computer-control
equipment that will displace employees. The contract also
requires that, where reasonable and practicable, the
company will retrain displaced employees in order of
seniority. The Communications Workers of America
(CWA) and the International Brotherhood of Electrical
Workers both have contracts with one large firm that
contain a clause providing early retirement, under certain
conditions, for workers displaced by technological
change. A CWA contract recently negotiated with a large
employer contains provisions for a joint labormanagement Technological Change Committee to
establish methods to avoid adverse impacts of techno
logical change on the work force. The CWA contract also
provides protection for employees downgraded because
of technological change.
Where no specific provision relating to technological
change is included in the contract, general provisions
pertaining to seniority, retirement, training, supplemen
tal unemployment benefits, and related topics can
facilitate adjustment of employees to the requirements of
new technology. About two-thirds of the industry’s
Chart 10. Projected changes in empioyment m eSectrscai and
electronic equipment by occupational group, 1978=90
Occupational
group
Percent of
industry
employment
in 1978
Professional and
technical workers
Percent change
-30
-20
-10
17.4
Managers, officials,
and proprietors
6.2
Sales workers
0.9
Clerical workers
13.8
Craft workers
12.8
Operatives
44.8
Service workers
1.7
Laborers
2.4
Source: Bureau of Labor Statistics.
Union of Electrical, Radio and Machine Workers; and
the Communications Workers of America.
production workers are estimated to be unionized. The
major unions, all AFL-CIO affiliates, are the International
Brotherhood of Electrical Workers; the International
SELECTED REFERENCES
Carnes, Richard B. “Productivity and Technology in the Electric Lamp
Industry,” Monthly Labor Review, August 1978, pp. 15-19.
Fixtures Industry,” M onthly Labor Review, September 1978,
pp. 31-37.
Hunter, Karl. “What Microelectronics Is Doingfor Your Competitor,”
Appliance, May 1978, pp. 65-68.
Owens, Donald L. “Microelectronics: A New Horizon for Appliances,”
Appliance, July 1979, pp. 28-31.
“Hybrid-circuit Technology Keeps Rolling Along,” Electronics, July
22, 1976, pp. 91-109.
Phillips, Donald C., and Steve Wiseman. “Trends in Microelectronics
for Appliances,” Appliance, May 1978, pp. lb-19.
Morgan, Gene. “Electrocoating,” Appliance, November 1978, pp.
3 9 -4 1.
“Robots Join the Labor Force,” Business Week, June 9, 1980, pp. 62-65,
68, 73, 76.
Morgan, Gene. “Focus: Powder Coating,” Appliance, September 1976,
pp. 45-49.
Stevens, James. “A New Cabinet Line Pays Off for W[&yta.g," Appliance,
February 1976, pp. 34-35.
Morgan, Gene. “A Sophisticated System Speeds
Appliance, September 1977, pp. 50-52.
“The Microprocessor: A Revolution for Growth,” Business Week,
Production,”
Mar. 19, 1979, pp. 42B-42X.
Oldham, William G. “The Fabrication of Microelectronic Circuits,”
Scientific American, September 1977, pp. 111-128.
Otto, Phyllis Flohr. “The Pattern of Productivity in the Lighting
44
York, James, and Horst Brand. “Productivity and Technology in the
Electric Motor Industry,” Monthly Labor Review, August 1978,
pp. 20-25.
(S®ini®irafi References
Board of Governors of the Federal Reserve System. In
dustrial Production: 1976 Revision, and annual in
dexes of industrial production.
Productivity Measures fo r Selected Industries, 195479, Bulletin 2093, 1981.
U.S. Department of Labor, Bureau of Labor Statistics.
Characteristics o f Major Collective Bargaining Agree
ments, Janurary 1, 1978, Bulletin 2065, April 1980.
National Science Foundation. Funds fo r Research and
Development. Annual.
U.S. Department of Labor, Bureau of Labor Statistics.
Employment and Earnings, United States, 1909-78,
Bulletin 1312-11, 1979, and Supplements to Employ
ment and Earnings, 1979 and 1980.
U.S. Department of Commerce, Industry and Trade Ad
ministration. U.S. Industrial Outlook, January 1980
and January 1981.
U.S. Department of Commerce, Bureau of the Census.
1978 Annual Survey o f Manufactures, 1981.
U.S. Department of Labor, Bureau of Labor Statistics.
National Industry-Occupational Matrix, 1970, 1978,
and Projected 1990, Bulletin 2086 (Volume I and Vol
ume II), 1981.
U.S. Department of Commerce, Bureau of the Census.
1977 Census o f Manufactures, individual industry
series.
U.S. Department of Labor, Bureau of Labor Statistics.
Occupational Outlook Handbook, 1980-81 Edition,
Bulletin 2075, 1980.
U.S. Department of Labor, Bureau of Labor Statistics.
45
©ffiueir ! L S Publications ©m
Technological Change
missiles, and wholesale trade and discusses their present
and potential impact on productivity and occupations.
Bulletins still in print may be purchased from the
Superintendent of Documents, Washington, D.C. 20402,
or from regional offices of the Bureau of Labor Statistics
at the addresses shown on the inside back cover. Out-ofprint publications are available at many public and
school libraries and at Government depository libraries.
Publications marked with an asterisk (*) also are
available on microfiche and in paper copy from the
National Technical Information Service, U.S. Depart
ment of Commerce, 5285 Port Royal Road, Springfield,
Va. 22151.
Computer Manpower Outlook* (Bulletin 1826, 1974), 60
pp. Price, $1.20.
Describes current employment, education, and training
characteristics for computer occupations, explores the
impact of advancing technology on labor supply and
education for computer occupations, and projects oc
cupational requirements and implications for training.
Technological Change and Manpower Trends in Six
Industries* (Bulletin 1817, 1974), 66 pp. Out of print.
Appraises major technological changes emerging in
textile mill products, lumber and wood products, tires
and tubes, aluminum, banking, and health services and
discusses their present and potential impact on
productivity and occupations.
Technology, Productivity, and Labor in the Bituminous
Coal Industry, 1950-79 (Bulletin 2072, 1981), 69 pp.
Price, $4.
Appraises some of the major structural and technolog
ical changes in the bituminous coal industry and their
impact on the industry.
Outlook fo r Technology and Manpower in Printing and
Publishing* (Bulletin 1774, 1973), 44 pp. Out of print.
Describes new printing technology and discusses its
impact on productivity, employment, occupational
requirements, and labor-management adjustments.
Technology and Labor in Five Industries (Bulletin 2033,
1979), 50 pp. Price, $2.50.
Appraises major technological changes emerging in
bakery products, concrete, air transportation, telephone
communication, and insurance, and discusses their
present and potential impact on productivity and
occupations.
Railroad Technology and Manpower in the 1970’
s
(Bulletin 1717, 1972), 90 pp. Out of print.
Describes changes in technology in the railroad
industry and projects their impact on productivity,
employment, occupations, and methods of adjustment.
Technological Change and Its Labor Impact in Five
Energy Industries (Bulletin 2005, 1979), 64 pp. Price,
$2.40.
Appraises major technological changes emerging in
coal mining, oil and gas extraction, petroleum refining,
petroleum pipeline transportation, and electric and gas
utilities, and discusses their present and potential impact
on productivity and occupations.
Outlook fo r Computer Process Control* (Bulletin 1658,
1970), 70 pp. Out of print.
Describes the impact of computer process control on
employment, occupations, skills, training, production
and productivity, and labor-management relations.
Technology and Manpower in the Textile Industry o f the
1970’ * (Bulletin 1578, 1968), 79 pp. Out of print.
s
Describes changes in technology and their impact on
productivity, employment, occupational requirements,
and labor-management relations.
Technological Change and Its Labor Impact in Five
Industries (Bulletin 1961, 1977), 56 pp. Price, $2.20.
Appraises major technological changes emerging in
apparel, footwear, motor vehicles, railroads, and retail
trade and discusses their present and potential impact on
productivity and occupations.
Outlook fo r Numerical Control o f Machine Tools*
(Bulletin 1437, 1965), 63 pp. Out of print.
Outlook for this key technological innovation in the
metalworking industry and implications for productivity,
occupational requirements, training programs, employ
ment, and industrial relations.
Technological Change and Manpower Trends in Five
Industries* (Bulletin 1856, 1975, 58 pp. Out of print.
Appraises major technological changes emerging in
pulp and paper, hydraulic cement, steel, aircraft and
46
* U .S .G .P .O . 365-300/1302-447
Byreau ©ff Labor Statistics
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