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  1. 1. Operations Management Outlook Chicago Chapter Professional Development Webinar May 14, 2009
  2. 2. The Economy
  3. 3. In the last 16 months, the U.S. economy has lost 5.7 million jobs. Employment Trend 1990 Recession 2001 Recession February 2009
  4. 4. Recent Headlines UK Manufacturers Report Pay Freezes, Deferments - Financial Times Alcoa Reaches Deal To Save Jobs, Cuts Aluminum Output - Wall Street Journal <ul><li>Caterpillar Speeds Up Layoff Plans </li></ul><ul><ul><ul><ul><ul><li>– Associated Press </li></ul></ul></ul></ul></ul>Honda North America Announces Production, Pay Cuts - Wall Street Journal
  5. 5. The Economic Outlook
  6. 6. Recent Headlines Firms Race to Regain Control over Inventories – Wall Street Journal Economy Sinks Under Weight of Inventory - Washington Post Manufacturing Crash Empties Inventories, Sets Stage for Rebound - Bloomberg Durable Goods Orders Unexpectedly Rise 3.4 Percent -Bloomberg
  7. 7. Northern New Jersey County & Statewide Unemployment Rates (3/09 Not Seasonally Adjusted) <ul><li>New Jersey Statewide Unemployment Rate ( Not Seasonally Adjusted ) = 8.7% </li></ul><ul><li>Northern New Jersey County Unemployment Rates </li></ul><ul><li>Bergen 7.2% </li></ul><ul><li>Essex 9.5% </li></ul><ul><li>Hudson 9.7% </li></ul><ul><li>Hunterdon 6.3% </li></ul><ul><li>Mercer 7.4% </li></ul><ul><li>Middlesex 8.0% </li></ul><ul><li>Morris 6.7% </li></ul><ul><li>Passaic 10.8% </li></ul><ul><li>Somerset 6.8% </li></ul><ul><li>Sussex 8.5% </li></ul><ul><li>Union 8.9% </li></ul><ul><li>Warren 8.2% </li></ul><ul><li>Lowest & Highest County Unemployment Rates </li></ul><ul><li>Lowest = Hunterdon County 6.3% </li></ul><ul><li>Highest = Cape May County 15% </li></ul><ul><li>Source: </li></ul>
  8. 8. Employment Outlook –Who Is Hardest Hit Nationally? (3/09) <ul><li>New Jersey Unemployment Rate ( Seasonally Adjusted ) 8.3% vs. National 8.5% </li></ul><ul><li>Source: </li></ul><ul><li>In March 2009, states with the highest unemployment were </li></ul><ul><ul><li>Michigan 12.6 percent.  </li></ul></ul><ul><ul><li>Oregon 12.1 percent </li></ul></ul><ul><ul><li>South Carolina 11.4 percent </li></ul></ul><ul><ul><li>California 11.2 percent * </li></ul></ul><ul><ul><li>North Carolina 10.8 percent * </li></ul></ul><ul><ul><li>Rhode Island 10.5 percent </li></ul></ul><ul><ul><li>Nevada 10.4 percent </li></ul></ul><ul><ul><li>Indiana 10.0 percent  </li></ul></ul><ul><ul><li>* Unemployment rates are the highest on record for these states (All state series began in 1976.) </li></ul></ul><ul><li>Source: </li></ul>
  9. 9. Unemployment Trend Is Improving- But Difficulties Remain <ul><li>The Conference Board Employment Trends Index (ETI) </li></ul><ul><ul><li>&quot;While we see a continued sharp fall in the ETI, the decline was not as strong as in the previous four months, suggesting that the most intense stage of job losses may be behind us…“ </li></ul></ul><ul><li>Source: </li></ul><ul><li>ISM April 2009 Report on Business Survey RESPONDENTS ARE SAYING ... </li></ul><ul><ul><li>&quot;International customers are having trouble getting cash for new orders, even though they need/want the equipment.&quot; (Computer & Electronic Products) </li></ul></ul><ul><ul><li>&quot;Starting to see some signs of increased production and demand from some automotive customers.&quot; (Fabricated Metal Products) </li></ul></ul><ul><ul><li>&quot;Business conditions continue to be soft, but agriculture-related products are still quite bullish.&quot; (Machinery) </li></ul></ul><ul><ul><li>&quot;We are optimistic that things will change for the better in 3Q.&quot; (Chemical Products) </li></ul></ul><ul><ul><li>&quot;Starting to hear of slight upticks in orders from some sectors of our business but not all.&quot; (Electrical Equipment, Appliances & Components) </li></ul></ul><ul><li>Source: </li></ul>
  10. 10. APICS Employment Index <ul><li>Preliminary results from a new industry survey show that hiring will increase in the next six months in the operations and supply chain field. </li></ul><ul><li>48% of survey respondents with hiring responsibility indicated that they anticipate hiring in the next 12 months. </li></ul><ul><li>80% of plan to hire within one or more the following operational areas </li></ul><ul><ul><li>Execution and Control of Operations </li></ul></ul><ul><ul><li>Purchasing/CRM </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Resource Planning </li></ul></ul><ul><ul><li>Supply Chain Management </li></ul></ul>
  11. 11. APICS Support
  12. 12. APICS Support <ul><li>In 2009, we added services and content to help members navigate this economy. </li></ul><ul><ul><li>Enhanced APICS magazine and Operations Management Now editorial coverage of the economy to help members anticipate issues and use the APICS BOK to solve them </li></ul></ul><ul><ul><li>Continued distribution of economy related APICS content to higher level executives to ensure they know the value of APICS-educated employees </li></ul></ul><ul><ul><li>Extended unemployment benefits to up to 18 months to help our members keep up their network and skills during a tough economy </li></ul></ul><ul><ul><li>Developed a strategy for increasing Career Center job postings to make it easier for members in transition to obtain new jobs </li></ul></ul>
  13. 13. APICS Support (continued) <ul><ul><li>Created a new e-membership option for young professionals to provide them with a head start on their careers in a competitive market </li></ul></ul><ul><ul><li>Collaborated with the Supply Chain Council to give our members access to additional information and training, including the SCORmark benchmarking tool </li></ul></ul><ul><ul><li>Launched a presence on Facebook, LinkedIn, and YouTube to extend the reach and power of the APICS community </li></ul></ul><ul><ul><li>Developed a new quarterly salary survey that will help members understand their value in the marketplace and improve their negotiating position. </li></ul></ul><ul><ul><li>Expanded the focus of APICS to industries outside manufacturing to provide members with increased career opportunities. </li></ul></ul>
  14. 14. Operations Management Now <ul><li>This new column highlights the relevance of the operations management profession and the OMBOK to economic news. </li></ul>
  15. 15. A New Formula for CEO <ul><li>According to Spencer Stuart, in 2008, operations replaced finance as the most common career background for the S&P 500 CEOs; more than 30% of these CEOs have operations experience. </li></ul><ul><li>In addition, operations management is the second most common career background for COOs, EVPS, and Senior VPs. </li></ul><ul><li>Apple’s new interim CEO, Tim Cook, is an operations professional. </li></ul>
  16. 16. Register today at Attend APICS 2009 in October 4-6, 2009 <ul><li>APICS 2009 Learning Paths </li></ul><ul><li>Global Supply Chain </li></ul><ul><li>Demand Management, Forecasting, and S&OP </li></ul><ul><li>Lean </li></ul><ul><li>Basics of Operations Management </li></ul><ul><li>Professional Advancement </li></ul><ul><li>Special-Interest Topics </li></ul>Don’t forget to renew your passport! General Session Speaker Jason Jennings Business Thought Leader and Best-Selling Author
  17. 17. Attend APICS 2009 in October 4-6, 2009 <ul><li>Toronto, Ontario is easily accessible from Northern New Jersey. </li></ul><ul><ul><li>Quick trip―only a 90-minute plane flight from New Jersey area airports </li></ul></ul><ul><ul><li>Affordable travel ― major airline flights in October 2009 are priced as low as $240 </li></ul></ul>
  18. 18. Question and Answer Thank you.