Advice on the heels of the G.M. news this week
Sticking with the status quo is never a good thing. We think it is the safe play, but then reality hits.
The news this week regarding the G.M. closure in Oshawa was a blow to the economy. I feel for the workers affected as well the workers at other companies that supported this facility. But really, we should not be that surprised about the news.
Granted. I live in a large city, so I don’t see the truck market that is still vibrant in North America, but I honestly don’t know anyone who drives a G.M. car unless it is a company car. (and I only know one). Even that is a testament to the discounts that are required to sell North American cars in this channel, and the size of this channel is also shrinking.
As a head hunter, I remember when the concept of a company car was a selling feature with a job offer. Now it is an obstacle. The most common reaction that I hear from a candidate about a proposed company car?
“Can I get a car allowance instead of a company car? I don’t want a taxable benefit for a car that I don’t even want.”
The facts:
1.
Car sales have been decreasing for years.
2.
G.M. used to employ 25,000 workers in Oshawa, they now employ 2,500. This day was coming, we just chose to look the other way.
3.
Technological advancements now make cars last much longer than in the past which means less new car purchases are being made by the average person.
4.
Auto workers are in a weird space. They want to believe that they are the working class, but their wages are not aligned to the definition of the working class in Canada or in North America. The true working class cannot relate to autoworkers which is yet another omen or disconnect from what “Blue Collar” represents. The fact that we now operate in a global economy and not in a 1950's vacuum further enhances the disconnect.
<!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-536870145 1107305727 0 0 415 0;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-536859905 -1073697537 9 0 511 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US;} @page WordSection1 {size:612.0pt 792.0pt; margin:72.0pt 72.0pt 72.0pt 72.0pt; mso-header-margin:35.4pt; mso-footer-margin:35.4pt; mso-paper-source:0;} div.WordSection1 {page:WordSection1;} -->
5.
Automation used by companies like Boeing, Tesla or Amazon warehouses has determined that a repeated process without lost momentum for shift changes, human error or human expenses is a better indicator of the future than our past. It is hard for anyone to argue when watching the grace and efficiency of an Amazon pick and pack video on YouTube.
In a long-winded answer, this day was coming whether we wanted to see that or not.
The fact that Ford will no longer be making any cars outside of the Mustang in less than 2 years, is another indicator that we have to acknowledge and that we cannot ignore. Ford!! They were the ones who invented the human assembly line for automotive manufacturing and manufacturing in general. Ford employees in Oakville I hope that you are paying attention.
Take a look at your own job and your career. Don’t let your job decide your destiny.
Read the tea leaves and make sure that you are the one that is in control of your future and not some global company that is only watching their bottom line. If you don't, there is only one person to blame and they are looking at you in the mirror.
Farewell,
Mike