America's tool and die companies find themselves in an odd place. On the one hand, according to a Congressional report, one-third of all tool, die and mold businesses have gone under since 1998, according to a report done for the U.S. Congress by the Congressional Research Service. On the other hand, there's a shortage of experienced machinists.
All of this appeared on my radar Thursday as a I researched two stories printed in Friday's Inquirer -- one was a story about a tool and die company cited by OSHA and the other was a report on trade imbalances with China and how they affected jobs.
The jobs statistics in the report on the tool and die industry, are shocking, particularly in Pennsylvania. In 2001, according to the April report, 11,811 people were employed in tool, die and mold businesses. By 2010, employment declined by 30 percent to 6,476. Nationally, employment fell 45 percent, to 89,661 in 2010 from 162,032 in 1998. Obviously, the time periods don't match, but the trends are telling.
The recession was a huge factor, the report said. U.S. durable goods orders fell by 21 percent, pulling tool and die business down with it. U.S. auto production declined by 31 percent between 2006 and 2010, and auto production accounts for a huge percentage of the tool and die business. The national figures show the relationship between manufacturing and tooling companies. In the years between 1998 and 2010, manufacturing employed declined by 35 percent, while tooling employment dropped by 45 percent. The number of manufacturing businesses dropped by 17 percent -- the loss in tooling businesses was double that, at 36 percent.