Too often in business, we argue with employees, suppliers, and bosses and think we're negotiating. When we get to an impasse, we opt to "split the difference." The key to negotiating is gathering information. The more you know about the other person, their position, needs, and goals, the more likely you are to devise a winning solution. Win/Win is where everyone succeeds, not where we all just agree to take half.

 

Here is an illustration of how this can work in business. I once had to negotiate a $30 million contract for forged products. My boss wanted the price of the product to be 10% less than it was the year before. When I talked with my supplier, I learned that they were having a difficult time keeping their plants busy with enough work,their steel prices were up, and changeovers between product types cost them a lot of money. We were able to negotiate a one year contract that gave them the volume they needed to keep their plants working, lock in steel prices, and manage the product mix to minimize changeovers. I got the price reduction I needed by helping my supplier get what they needed. If I had taken the traditional approach, I would have tried to just beat up my supplier over price, threaten them with other suppliers, and only issue them POs 90 days out.

 

Keep this principle in mind the next time you're faced with a negotiation: the one with the most information wins.

 

The first thing companies need to do is own the problem. It doesn't matter how many sales you have booked for the next five years if you don't have people to produce the product or maintain the machinery. What are you doing with your local high schools, trade schools, and even colleges to attract students to manufacturing careers? Do you take your machinists and welders with you to recruiting fairs? When was the last time a local school or boy scout troop toured your plant?

 

Next, take a hard look at your company. Are your wages competitive or are you trying to hire welders at $7.50 an hour? Do you have a reputation for laying off employees every two years? Even take a look at your shop. Is is dark and dirty with stuff lying everywhere or is it well-lit, clean and organized? These are factors that could drive away potential employees.

 

Start volunteering. By getting your manufacturing employees involved in your community you can change the perception of your company and manufacturing careers. Sponsor a local high school team in the FIRST robotics competition. Encourage your employees to be instructors at local community colleges or trade schools. Does anyone in your company hold a seat on advisory boards or school boards? Do you know if your local high schools still offer shop classes? If so, how are you supporting the instructors?

 

Finally, join forces with other like-minded organizations. This is an issue we can not solve on our own. We need to join forces to begin changing the perceptions and misconceptions surrounding manufacturing careers. Because despite what the major news networks may say, we are a great nation because of our ability to manufacture and produce goods. Our country will no longer be a world power if it ever does becomes a service-based economy.