Page 35 - MetalForming May 2012

Pioneer Metalformers
Invest in Workforce Development
Case Study:
Oberg Industries
Ahome-grown apprenticeship program serves as the lynch- pin of Oberg Industries’ world- class training efforts. The metal- former, die designer and die builder is based in Freeport, PA, and regis- tered $105 million in sales in 2011, 30 percent higher than 2009, when Oberg, along with the rest of the stamping industry, faced tough times. Since 2009, the company also has invested in people and technology, raising employment by 11 percent. In sum, Oberg adeptly juggles its dif- fering machinery and diverse cus- tomer base via a highly trained, high- ly motivated workforce—precisely why the company is a Hitachi Foun- dation Pioneer Award winner.
“It started with the founder of the company, Donald E. Oberg” explains Bob Wagner, Oberg Industries presi- dent and chief executive officer, reflecting on the origins of the com- pany’s workforce-development efforts. “He saw the need to have a trained workforce and intelligent employees, and created a world-class appren- ticeship program that we inherited and continue to nurture.”
Oberg operates two U.S. plants that employ a total of 545 full-time associates, the majority of whom rose through company ranks thanks to the Oberg apprenticeship program, the first such U.S. program to be
state-certified. A typical career path at Oberg may include apprentice, jour- neyworker, lead, department super- visor and manufacturing manager, which then can lead to senior-level executive positions. Apprenticeships provide career paths all across the company’s production spectrum. Pro- duction personnel include machin- ists and technicians, who comprise 69 percent of production employees, with stamping-press operators com- prising 15 percent. Engineers, pro- grammers, inspectors and project managers provide the balance.
Oberg’s formal apprenticeships reflect the firm’s significant training commitment, which also includes numerous internal training programs. These consist of on-the-job, classroom, computer-based and video-based training. In 2011, Oberg dedicated 2.87 percent of its company payroll to fund training, with an average training expenditure of $1620/employee and the average training time approaching 93 hr./employee. By comparison, the 2011 American Society for Training and Development State of the Indus- try report shows that the average per- centage of payroll spent on employee training was 2.7, with average annual training expenditures amounting to $1228/employee and training time totaling 32 hr./employee.
Overall, Oberg typically dedicates
“Most of our employees are problem solvers and very good with their hands,” says Oberg Industries president and CEO Bob Wagner. “They don’t like to be closeted in one particular area—they want to carry a broad brush and reach across boundaries.”
one percent of annual sales to fund training, with training budgets deter- mined by company need.
Driven by Competency, Not Longevity
Oberg’s apprenticeship program began in the 1950s and switched from time-based to competency- based in 2001. It provides increased rates of pay as skills are obtained. Pay rates typically rise by nearly 50 percent—in increments—by com- pletion of the apprenticeship.
“We changed to competency- based to get a better handle on what employees were proficient at and
Freeport, PA
BY LOU KREN, CONTRIBUTING EDITOR
www.metalformingmagazine.com MetalForming/May 2012