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Harry C. Moser President Agie Charmilles Corp. AMTDA April 2007

Harry C. Moser President Agie Charmilles Corp. AMTDA April 2007. 76,000 JOB OPENINGS. -OPENINGS, % OF WORKFORCE 10.1%* -AVERAGE STARTING WAGE $16.82/HOUR -AVERAGE ANNUAL INCOME (to start, including Overtime) $42,000/year U.S. PROJECTION:

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Harry C. Moser President Agie Charmilles Corp. AMTDA April 2007

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  1. Harry C. Moser President Agie Charmilles Corp. AMTDA April 2007

  2. 76,000 JOB OPENINGS -OPENINGS, % OF WORKFORCE 10.1%* -AVERAGE STARTING WAGE $16.82/HOUR -AVERAGE ANNUAL INCOME (to start, including Overtime) $42,000/year U.S. PROJECTION: -JOBS, ALL MACHINISTS 76,000 -TOTAL SALES $10 BILLION/YR -IMPACT ON GDP @2.4 MULTIPLIER $24 BILLION/YR -IMPACT ON U.S. BUDGET DEFICIT $6 BILLION/YR SOURCE: NTMA/CHARMILLES MARCH 2006 SURVEY OF NTMA MEMBER SHOPS: 167 RESPONSES = 10% *VS. 2.5% IN THE ENTIRE US WORKFORCE, ALL JOB CATEGORIES

  3. A Recruiting Best Practice! • Who: NWPA NTMA Chapter • Where: Meadville, PA • What: -Weekly career story in • local paper • -Paper sells ads around • the story • -Employer and employee • get recognition • Result: Attracts recruits. Tech • Tool hired 9

  4. Industry & Community College Recruiting Together Join the Resurgence in Wisconsin Manufacturing Demand for skilled graduates in the machine trades is again soaring. We have received requests for more than 100 graduates in Tool and Die and Machine Tool in the past 8 to 10 months. Graduates in the machine trades are accepting jobs paying $17 to $18 an hour with excellent fringe benefits. Many third semester students are accepting jobs even as they complete coursework. The opportunities are excellent. Classes start every eight weeks. Contact Manufacturing Technology Campus at 715-874-4604. “CVTC has always played an important role in providing us with qualified candidates. Right now we have openings for toolmakers starting at $20.00 an hour and machinists starting over $14.00, and we can’t find them fast enough. I see this as a great career opportunity now and into the future.” Peggy Schlagenhaufer, HR Generalist, Hutchinson Technology www.htch.com Eau Claire Leader Telegram IDEA: JOINT HELP WANTED ADS IN THE LOCAL PAPER -1 AD -1 OR MORE COMPANIES: -PRAISE THE COLLEGE -LIST CURRENT JOB OPENINGS (“THE OPPORTUNITIES”) -COLLEGE: -DESCRIBES ITS PROGRAM THAT FIT THE JOB OPENING (“THE MEANS”) SOURCE: CHIPPEWA VALLEY TECHNICAL COLLEGE, EAU CLAIRE, WI

  5. Manufacturing Career Paths

  6. Pennsylvania Case Study: 1995 COMPANY: ELECTRONICS CONNECTOR MANUFACTURER LOCATION: RURAL PA PROJECT: NEW PLANT # TOOLMAKERS, SHORTFALL: 26 IMPACT OF SHORTFALL ON COUNTY: -$20 MM/YEAR ($769,000/YEAR/TOOLMAKER) SOURCE: “COMMUNITY COSTS OF TECHNICAL SKILLS DEFICITS…” JAMES WALL ET AL, PENN STATE

  7. Occupation More Important than Degree Level “80% OF ASSOCIATES DEGREE HOLDERS EARN MORE THAN THE BACHELOR’S MEDIAN INCOME.” “OCCUPATION, NOT DEGREE LEVEL, DETERMINES SALARY.” SOURCE: AP CARNEVALE (2000) (ED439743)

  8. Median Annual Salary of Bachelor’s Graduates by Field of Major and Age, 1993 Source: 1993 National Survey of College Graduates, NSF/SRS, NTMA, PMA/TMA. (Data will next be released in 2003-2004)

  9. Tool & Die or English Major?A Million $ Decision TOOL & DIE CUMULATIVE WEALTH ADVANTAGE Assumptions: 1. Zero wage inflation 2. Savings = 50% of difference in income 3. Investment return of 7% per year on savings

  10. ROI on Skilled Workforce Training Source: May 2005 Modern Machine Shop Article Author: Harry Moser

  11. Background Vs. How Obtained Ownership BACKGROUND FOUNDED PURCHASED INHERITED UNSPECIFIED TOTAL OWNERS APPRENTICE GRADUATE 50% 35% 10% 40% 35% MACHINING TRAINING BUT NOT APPRENTICE 24% 20% 39% 20% 28% MANUFACTURING MANAGEMENT 11% 12% 11% 20% 11% BUSINESS MANAGEMENT BUT NOT MANUFACTURING 4% 24% 19% 20% 12% OTHER 11% 8% 21% 13% TOTALS 100% 99% 100% 100% 99% % of Total 50% 19% 24% 6% 99% CONCLUSION: APPRENTICES & MACHINISTS FOUND COMPANIES SOURCE: NTMA/CHARMILLES OWNER/MANAGER SURVEY. SURVEY DATE: 2001

  12. Articulation: Manufacturing/AS Degrees 48 CREDIT HOURS FOR NIMS CERTIFICATES 18 CREDIT HOURS EARNED ON LINE 66 CREDIT HOURS = ASSOCIATES DEGREE Source: Marshall Community & Technical College, Huntington, WV

  13. Manufacturing is Less Vulnerable than Software or Services! Source: Mold cost structure from limited survey of U.S. Mold Shops

  14. Training Support Provided By Agie Charmilles • Live Presentations • Presentation CD • NTMA Apprentice Contest Grand Prize • When to EDM™ CD • Career Opportunities Charts • ROI on Training Article • Machines for Schools Programs

  15. It’s Tough Everywhere! • JUNE 2005 ISTMA BUSINESS CONDITIONS REPORT: HUNGARY -LACK OF UNDERSTANDING OF OUR INDUSTRY. CONCERNED ABOUT: TAX, REGULATIONS, ENERGY COSTS, ETC. -CURRENTLY HEALTHY BUT EXPECTING SLOWDOWN DUE TO STAGNATION IN GERMANY, ESP. IN THE AUTO INDUSTRY. -COST GOING UP AND INCREASINGLY TOUGH COMPETITION FROM CHINA -COMPANIES THAT ARE BUSY ARE TYPICALLY SPECIALISTS/EXPERTS IN THE FIELD. -SEVERE REDUCTION IN THE NUMBER OF APPRENTICES -LOSS OF SKILLED WORKERS DUE TO RETIREMENT. -NEED GOVERNMENT INCENTIVES TO INVEST AND TRAIN SOURCE: ISTMA 6/05 BOARD MTG., MELBOURNE, AUSTRALIA

  16. Here’s What You and AMTDA Can Do! • Welcome students to AMTDA and other trade shows. • Invite classes to your showrooms during Open Houses. • Join community college/vocational school advisory boards. • Offer yourself or an engineer to teach a session. • Write to local newspapers refuting manufacturing’s negative image. • Use Agie Charmilles’ workforce career material.

  17. Harry C. Moser President Agie Charmilles Corp. AMTDA April 2007

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