|MAPI Research and Insight
Skills shortages in China
Yingying Xu, Ph.D., economist
Management-level human resources constraints are a major challenge for multinational firms operating in China. The rapid growth of China's domestic companies with global ambitions intensifies the stiff competition for highly qualified professionals, and the increasing staff turnover rate now surpasses those of all other major countries in the region. The potential talent pool appears to be enormous, and so the talent shortage challenge seems puzzling. This report analyzes the supply- and demand-side causes of the skills shortage and discusses how the labor markets and skills pools will likely evolve. Issues in Brief
Kennametal CEO puts emphasis on R&D
Kennametal CEO and MAPI Board of Trustees Chairman Carlos Cardoso says his company has made a significant investment in research and development as part of its goal to have new products generate a minimum of 40% of annual sales. Cardoso said the company tries to get a jump on what products people will need in the coming years, instead of just making new products and then trying to sell them. A lack of skilled workers, however, is still a problem for the company and manufacturing as a whole, he added. Pittsburgh Tribune-Review/TribLive (Western Pa.)
China unlikely to lose manufacturing advantage
Manufacturing in China is certainly going through a transition, but most likely not the kind of crisis many experts describe, writes John Jullens, a Shanghai-based partner at Booz & Company. He outlines several factors that could cancel out China's loss of its labor-cost advantage, including domestic demand driven by economic development, its continuing urban-rural divide, the potential for Chinese factories to optimize operations and innovation in cutting manufacturing costs. Strategy+Business online (free registration)
4 factors that veered Toyota off the road
Despite Toyota's recent troubles, its lean Toyota Production System is a good one that other companies have copied, write Stan Gwizdak and Dennis McRae of Celerant Consulting. However, the company lost sight of some of the system's fundamentals and allowed several factors to lead it down the wrong path, becoming complacent and making corporate decisions from afar, they write. IndustryWeek
Fla. task force to address skills gap in manufacturing
Leaders in business and economic development in the Tampa Bay area have formed a task force to address the manufacturing sector's growing skills gap. The group will complete an analysis aimed at identifying current needs of manufacturers through a survey that will target in-demand skills. The analysis will help educational institutions and elected officials allocate resources to provide appropriate training opportunities American City Business Journals/Tampa, Fla.
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