Welcome to the Industrial Executive!

I’m super glad you’re here.

Let’s get to it!

GE Aerospace Strike Update: 600+ Workers Walk Out in Ohio and Kentucky

Over 600 UAW Local 647 workers began striking at GE Aerospace facilities in Evendale, Ohio, and Erlanger, Kentucky, after contract negotiations failed to reach agreement before the Wednesday night deadline.

The strike affects GE's aeroderivative engine assembly operations in Ohio and parts distribution in Kentucky. Workers cited concerns over job security, healthcare costs, pay, and time off. GE's final offer included a 12% wage increase over three years, plus additional vacation days and sick leave. However, the proposal also included an 18% increase in employee healthcare contributions.

This marks the third UAW negotiation for GE Aerospace this summer - the only unsuccessful one. Two other unions at GE facilities ratified contracts in July and August. The aerospace sector has seen multiple strikes recently, including 3,200+ Boeing workers in Illinois and Missouri who walked out in early August.

No date has been set for resumed negotiations. Both parties remain at the table while operations continue under contingency protocols.

The following is a paid ad:

This edition is brought to you by Axiom Manufacturing Systems. Digital transformation and process improvement shouldn't take years or cost millions… it should solve real problems starting next month.

Axiom Manufacturing Systems brings smart manufacturing to small and mid-market companies who need results, not PowerPoints.

Book your free call today: https://calendly.com/axiomsystemsio/30min

Most operations teams track everything and understand nothing. They've got dashboards that would make NASA jealous, but they can't tell you why efficiency dropped 3% last Tuesday.

Here's 10 that will actually move the needle if you track and actually use them to drive action.

1. Gross Margin by Product Line Not just overall margin. Break it down. That "profitable" product line might be bleeding you dry when you factor in true costs. I've seen operations kill their most profitable lines because they were looking at averages instead of specifics.

2. Cash Conversion Cycle How fast you turn inventory into cash. If this number is trending up, you've got problems coming. Period. It's the canary in the coal mine for operational inefficiency.

3. Overall Equipment Effectiveness (OEE) - But Do It Right Track by shift, by line, by operator. Averages hide problems. When Line 3's second shift consistently runs 15% lower OEE, you've found your training gap.

4. First Pass Yield Percentage of products that meet spec without rework. This is where your profit lives or dies. Every reject is money walking out the door with your company's name on it.

5. Schedule Attainment Did you make what you said you'd make? When you said you'd make it? Sounds basic, but most plants can't answer this accurately for last week, let alone predict next week.

6. Employee Turnover Rate (Skilled Positions) Especially in skilled positions. Losing a seasoned operator costs you 6-12 months of productivity. Track this monthly, not annually. By the time your annual number looks bad, the damage is done.

7. Safety Incident Rate Leading indicator of operational discipline. Sloppy safety equals sloppy everything else. Plants with strong safety cultures consistently outperform on all other metrics.

8. On-Time Delivery (Customer Promise Date) Not "we shipped it," but "customer received it when promised." This is what separates reliable suppliers from the rest. One major complaint can cost you the account.

9. Customer Complaint Rate Track severity, not just volume. One major complaint can cost you the account. Pattern recognition here prevents catastrophic quality failures.

10. Operating Expense as % of Revenue Are you growing more efficient as you grow, or just throwing money at problems? This separates scalable operations from expensive ones.

The Real Talk:

Your Monday morning leadership meeting shouldn't be 20 slides of green arrows and red arrows. It should be: "OEE dropped 4% on Line 3 yesterday. Here's why, here's what we're doing about it, and here's how we prevent it next time."

Most operations teams collect data like they're running a museum instead of a business. These 10 KPIs will tell you more about your operation's health than 50 vanity metrics ever will.

Track what matters. Ignore what doesn't. And for the love of all that's holy, stop celebrating metrics that don't drive business results.

What KPIs are you tracking that actually change how you run your operation?

And that’s all folks!

Till next week,

The Industrial Executive