Washington — Trying to keep up with customer demand, Batesville Tool & Die began seeking 70 people to hire last year. It wasn’t easy. Attracting factory workers to a community of 7,300 in the Indiana countryside was a tough sell, especially having to compete with big-name manufacturers nearby like Honda and Cummins Engine. 

Job seekers were scarce. 

“You could count on one hand how many people in the town were unemployed,” said Jody Fledderman, the CEO. “It was just crazy.” 

Batesville Tool & Die managed to fill just 40 of its vacancies. 

Enter the robots. The company invested in machines that could mimic human workers and in vision systems, which helped its robots “see” what they were doing. 

The Batesville experience has been replicated countlessly across the United States the past couple of years. Worker shortages have led many companies to invest in machines. They’ve also been training the workers they do have to use advanced technology so they can produce more with less. 

The result has been an unexpected productivity boom, which helps explain a great economic mystery: How has the world’s largest economy stayed so healthy, with brisk growth and low unemployment, despite brutally high interest rates that are intended to tame inflation but that typically cause a recession? 

To economists, strong productivity growth provides an almost magical elixir. When companies roll out more efficient technology, their workers can become more productive: They increase their output per hour. A result is that companies can often boost profits and raise pay without having to jack up prices. Inflation can remain in check. 

The Fed’s aggressive streak of rate hikes — 11 of them starting in March 2022 — managed to bring inflation from a four-decade high of 9.1% to 3.1%. But, to the surprise to the economists who’d forecast a recession, the higher borrowing costs have caused little economic hardship. 

Perhaps the likeliest explanation is the greater efficiencies that companies like Batesville Tool & Die have managed to achieve. Before productivity began its resurgent growth last year, a rule of thumb was that average hourly pay could rise no more than 3.5% annually for inflation to stay within the Fed’s 2% target. That would mean that today’s roughly 4% average annual pay growth would have to shrink. Higher productivity means there’s now more leeway for wage growth to stay elevated without igniting inflation. 

The productivity boom marks a shift from the pre-pandemic years, when annual productivity growth averaged a tepid 1.5%. Everything changed as the economy rocketed out of the 2020 pandemic recession with unexpected vigor, and businesses struggled to re-hire the many workers they had shed. 

The resulting worker shortage sent wages surging. Inflation jumped, too, as factories and ports buckled under the strain of rising consumer orders. 

Desperate, many companies turned to automation. The efficiency payoff began to arrive almost a year ago. Labor productivity rose at a 3.6% annual pace from last April through June, 4.9% from July through September and 3.2% from October through December. 

At Reata Engineering & Machine Works, “efficiency was kind of forced on us,” CEO Grady Cope said. With the job market roaring, the company, based in Englewood, Colorado, couldn’t hire fast enough. Meantime, its customers were starting to balk at paying higher prices. 

So Reata installed robots and other technology. Software allowed it to automate the delivery of price quotes to customers. That process used to require two weeks. Now, it can be done in 24 hours. 

Many economists and business people say they’re hopeful that the productivity boom can continue. Artificial intelligence, they note, is only beginning to penetrate factory floors, warehouses, stores and offices and could accelerate efficiency gains. 

Automation raises fears that machines will replace human workers, killing jobs. Some workers supplanted by robots do often struggle to find new work and end up settling for lower pay. 

Yet history suggests that in the long run, technological improvements actually create more jobs than they destroy. People are needed to build, upgrade, repair and operate sophisticated machines. Some displaced workers are trained to shift into such jobs. And that transition is likely to be eased this time by the retirement of the vast baby boom generation, which is causing labor shortages. 

Some of today’s productivity gains may be coming not just from advanced technology but also from more satisfied workers. The tight labor markets of the past three years allowed Americans to change jobs and find others that pay better and make them happier and more productive. 

Justin Thompson, of Kalamazoo, Michigan, felt burned out by his job as a police officer, with its 16-hour workdays .”I was literally running myself into the ground,” he said. 

Thompson’s wife saw a job posting for operations manager at a charter airline. Even without airline experience, his wife felt he could use skills he gains as a Marine Corps infantryman — handling logistics for missions — during tours in Iraq and Afghanistan. 

She was right. Omni Air International hired him in 2019. 

Thompson, 43, loves the new job, which allows him to work from home when he’s not traveling. And his Marine experience — which included developing ways to improve efficiency — has proved invaluable. 

Other workers have switched from low-skill jobs to those that allow them to be more productive. 

At Reata Engineering, staffers were trained to use new sophisticated equipment. 

“The whole point is not to lay people off,” said Cope, the CEO of Reata Engineering. “The point is to make people do jobs that are more interesting” — and pay better, too. 
…

your ad here

TOKYO — Chip giant Taiwan Semiconductor Manufacturing Co. opened its first semiconductor plant in Japan Saturday as part of its ongoing global expansion.

“We are deeply grateful for the seamless support provided by you at every step,” TSMC Chairman Mark Liu said after thanking the Japanese government, local community and business partners, including electronic giant Sony and auto-parts maker Denso. The company’s founder, Morris Chang, was also present at the ceremony in Kikuyo.

This comes as Japan is trying to regain its presence in the chip production industry.

Japan Advanced Semiconductor Manufacturing, or JASM, is set to be up and running later this year. TSMC also announced plans for a second plant in Japan earlier this month, with production expected to start in about three years. Private sector investment totals $20 billion for both plants. Both plants are in the Kumamoto region, southwestern Japan.

Prime Minister Fumio Kishida sent a congratulatory video message, calling the plant’s opening “a giant first step.” He stressed Japan’s friendly relations with Taiwan and the importance of cutting-edge semiconductor technology.

Japan had previously promised TSMC 476 billion yen ($3 billion) in government funding to encourage the semiconductor giant to invest. Kishida confirmed a second package, raising Japan’s support to more than 1 trillion yen ($7 billion).

Although TSMC is building its second plant in the U.S. and has announced a plan for its first in Europe, Japan could prove an attractive option.

Closer to Taiwan geographically, Japan is an important U.S. ally. Neighboring China claims the self-governing island as its own territory and says it must come under Beijing’s control. The long-running divide is a flashpoint in U.S.-China relations.

The move is also important for Japan, which has recently earmarked about 5 trillion yen ($33 billion) to revive its chips industry.

Four decades ago, Japan dominated in chips, headlined by Toshiba Corp. and NEC controlling half the world’s production. That’s declined lately to under 10%, due to competition from South Korean, U.S. and European manufacturers, as well as from TSMC.

The coronavirus pandemic negatively affected the supply of electronic chips, stalling plants, including automakers, with Japan almost entirely dependent on chip imports. This pushed Japan to seek chip production in pursuit of self-sufficiency.

Sony Semiconductor Solutions Corporation, Denso Corporation and top automaker Toyota Motor Corporation are investing in TSMC’s Japan plant, with the Taiwanese giant retaining an 86.5% ownership of JASM.

Once the two plants are up and running, they’re expected to create 3,400 high-tech jobs directly, according to TSMC.

Ensuring access to an ample supply of the most advanced chips is vital with the growing popularity of electric vehicles and artificial intelligence. Some analysts note Japan still leads in crucial aspects of the industry, as seen in Tokyo Electron, which manufactures the machinery used to produce chips.

Still, it’s clear the Japanese government is intent on playing catchup. Tokyo is supporting various semiconductor projects nationwide, such as those involving Western Digital and Micron of the U.S., and Japanese companies such as Renesas Electronics, Canon and Sumitomo.
…

your ad here

WASHINGTON — Boeing said on Wednesday it was replacing the head of its troubled 737 MAX program effective immediately, the first major executive departure since the January 5 midair panel blowout of a new Alaska Airlines MAX 9. 

Ed Clark, who had been with the plane-maker for nearly 18 years, departed as Boeing has been dealing with its latest crisis and has vowed to ramp up quality efforts. 

Regulators have curbed the plane-maker’s production, and lawmakers and customers have been scrutinizing production and safety measures.  

Boeing has scrambled to explain and strengthen safety procedures after a door panel detached during flight on a new Alaska Airlines 737 MAX 9, forcing pilots to make an emergency landing while passengers were exposed to a gaping hole 16,000 feet above the ground.  

Clark’s departure came after Boeing’s board met this week and approved the changes, according to sources familiar with the matter. He oversaw the company’s production facility in Renton, Washington, where the plane involved in the accident was completed. 

Clark was previously chief mechanic and engineer for the 737 before being named head of the program in 2021. He was the fifth person in four years to run the 737 program. 

Katie Ringgold is replacing him as vice president and general manager of the 737 program, according to a memo seen by Reuters sent to staff by Boeing Commercial Airplanes CEO Stan Deal, who said the plane-maker was working to ensure “that every airplane we deliver meets or exceeds all quality and safety requirements. Our customers demand, and deserve, nothing less.” 

The latest mishap occurred as Boeing was still working to rebuild its reputation following the 20-month grounding of the 737 MAX following two fatal crashes that killed a total of 346 people. That grounding was lifted in November 2020.  

Airline industry executives have expressed frustration with Boeing’s quality control. The only other major manufacturer of commercial aircraft is France’s Airbus. 

The memo was first reported by the Seattle Times. 

The FAA grounded the MAX 9 for several weeks in January and has capped Boeing’s production of the MAX while it audits the plane-maker’s manufacturing process, which has suffered a string of quality issues in recent years. 

The door panel that flew off the MAX 9 appeared to be missing four key bolts, according to a preliminary report from the U.S. National Safety Transportation Board in early February. The panel is a plug-in placed on some 737 MAX 9s instead of an additional emergency exit.  

According to the report, the door plug in question was removed to repair rivet damage, but the NTSB has not found evidence the bolts were reinstalled. 

The disclosure has prompted anger among Boeing’s airline customers. Some, including Alaska Airlines, announced they would conduct enhanced quality oversight of planes before they leave the Boeing factory. 
…

your ad here

WASHINGTON — A company from Texas is poised to attempt a feat that until now has only been accomplished by a handful of national space agencies but could soon become commonplace for the private sector: landing on the moon.

If all goes to plan, Houston-based Intuitive Machines will guide its spaceship named Odysseus to a gentle touchdown near the lunar south pole on Thursday at 2249 GMT, then run experiments for NASA that will help pave the way for the return of astronauts later this decade.

A previous effort by another U.S. company last month ended in failure, raising the stakes to demonstrate private industry has what it takes to put an American lander on Earth’s cosmic companion for the first time since the Apollo era.

“Accepting risk was a challenge posed by the United States to the commercial business sector,” Intuitive Machines CEO Steve Altemus said ahead of launch. “Our collective aim is to return to the moon for the first time in 52 years.”

The company plans to run a live stream on its website, with flight controllers expected to confirm landing around 15 seconds after the milestone is achieved, because of the time it takes for radio signals to return.

As it approaches the surface, Odysseus will shoot out an external “EagleCam” that captures images of the lander in the final seconds of its descent.

About the size of a big golf cart, Odysseus is hexagon-shaped and stands on six legs.

It launched on Feb. 15 atop a SpaceX Falcon 9 rocket, and boasts a new type of supercooled liquid oxygen, liquid methane propulsion system that allowed it to race through space in quick time, snapping pictures of our planet along the way.

Its destination, Malapert A, is an impact crater 300 kilometers (180 miles) from the lunar south pole.

NASA hopes to eventually build a long-term presence and harvest ice there for both drinking water and rocket fuel under Artemis, its flagship Moon-to-Mars program.

The U.S. space agency paid Intuitive Machines $118 million to ship science hardware to better understand and mitigate environmental risks for astronauts, the first of whom are scheduled to land no sooner than 2026.

Instruments include cameras to investigate how the lunar surface changes as a result of the engine plume from a spaceship, and a device to analyze clouds of charged dust particles that hang over the surface at twilight as a result of solar radiation.

The rest of the cargo was paid for by Intuitive Machines’ private clients and includes 125 stainless steel mini moons by the artist Jeff Koons.

After touchdown, the experiments are expected to run for roughly seven days before lunar night sets in on the south pole, with the lack of solar power rendering Odysseus inoperable.

Dubbed IM-1, the mission is the second under a NASA initiative called Commercial Lunar Payload Services (CLPS), which it created to delegate cargo services to the private sector to achieve savings and stimulate a wider lunar economy.

Four more CLPS launches are expected this year, which would make 2024 among the busiest ever for moon landings.

The first, by Pittsburgh-based Astrobotic, launched in January, but its Peregrine spacecraft sprung a fuel leak and it was eventually brought back to burn up in Earth’s atmosphere.

Spaceships landing on the moon have to navigate treacherous boulders and craters and, absent an atmosphere to support parachutes, must rely on thrusters to control their descent. Roughly half of the more than 50 attempts have failed.

The Soviet Union was the first country to achieve a survivable landing on a celestial body when its Luna 9 spaceship touched down and transmitted pictures back from the moon in February 1966.

Next came the United States, which is still the only country to also put people on the surface.

In America’s long absence, China has landed three times since 2013. India reached the moon in 2023, and Japan was the latest, last month.
…

your ad here

Health care professionals are increasingly using artificial intelligence to better diagnose and treat serious medical conditions. However, with the use of artificial intelligence in medicine growing, there are concerns among medical ethicists about how emerging technologies should be deployed
…

your ad here

Kenyan companies, facing economic challenges, are turning to artificial intelligence to reduce production and advertising expenses. That’s causing anxiety among artists and ad agencies, who fear reduced income and job losses if AI can replace the work they’ve always done. Mohammed Yusuf reports from Nairobi.
…

your ad here