GLOBAL COMPETITIVENESS SUMMIT

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1 GLOBAL COMPETITIVENESS SUMMIT Jennifer McNelly j m c n e l l n a m. o

2 DOES MANUFACTURING STILL MATTER? THE ANSWER: YES! Manufacturing and the linkage to economic growth: The advancement of manufacturing capabilities is the most important link to increasing the economic prosperity of a nation Many emerging economies are primed for rapid growth Competition for high value jobs will intensify The proverbial bar will continue to be set higher and higher

3 THE DEVELOPMENT OF NEW MANUFACTURING ECONOMIES

4 LAUNCHED OPERATIONS 2010

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6 GLOBAL MANUFACTURING COMPETITIVENESS INDEX REPORT

7 TALENT-DRIVEN INNOVATION

8 GLOBAL MANUFACTURING COMPETITIVENESS INDEX REPORT Council on Competitiveness and Deloitte 2013 Report Talent Driven Innovation Over 550 CEO Respondents Around the World!! Quality & availability of researchers, scientists, engineers Overall quality and availability of skilled labor Quality of primary & secondary schools to produce sufficient student populations proficient in science, technology and math Quality of colleges & universities and their partnerships with business in research and innovation Ef fective & ef ficient immigration policies

9 EDUCATION AND WORKFORCE POLICY THAT DEVELOPS SUPERIOR TALENT The ability to develop and attract the world s most talented workers was critical to every executive participating in the discussions, regardless of geography. Executives consistently said that their ability to drive innovation is directly linked to their ability to access highly educated workers. Source: Manufacturing for Growth Strategies for Driving Growth and Employment

10 THE FUTURE OF MANUFACTURING

11 DISRUPTIVE INNOVATION IN MANUFACTURING

12 SO WHAT ABOUT THE UNITED STATES?

13 FACTORS DRIVING A POTENTIAL RESURGENCE IN US MANUFACTURING SUMMARY OF MANUFACTURING ATTRACTIVENESS TRENDS PwC Page 13 Source: A homecoming for US manufacturing?

14 FILLING JOBS IS NO EASY TASK of executives surveyed agree there is a talent shortage in U.S. manufacturing and they indicate It takes 90+ days to recruit highly skilled workers SIX out of TEN open skilled production positions are unfilled due to talent shortage even when 80% of manufacturing companies are willing to pay more than the market rates in workforce areas reeling under talent crisis Source: 2015 Manufacturing Institute and Deloitte Skills Gap Study

15 THE SKILLS GAP IS WIDENING 2.7 Million baby boomer retirements 700K manufacturing jobs expected from economic expansion 3.4 Million manufacturing jobs are likely to be needed over the next decade Sources: Bureau of Labor Statistics (BLS) and Deloitte analysis 1 Milken Institute and Economic Planning Institute. 2 The U.S. Department of Commerce, Bureau of Economic Analysis. Over the next decade* nearly 3 ½ Million manufacturing jobs likely need to be filled The skills gap is expected to result in Only 1.4 Million jobs are likely to be filled leading to an expected 2 Million manufacturing jobs unfilled due to the skills gap 2 Million of those jobs being unfilled The implications are significant Every job in manufacturing creates another 2.5 new jobs in local goods and services 1 For every $1 invested in manufacturing, another $1.32 in additional value is created in other sectors 2 *Next decade means the time period

16 WHAT DOES AMERICA THINK? 90% 82% of Americans believe manufacturing is very important to economic prosperity of Americans believe the U.S. should further invest in the manufacturing industry Americans believe the industry has global competitive advantages 73% Technology use and availability 72% Research and development capabilities 69% Energy availability U.S. competitive advantages identified by respondents # Americans support manufacturing job creation If given an opportunity to create 1,000 new jobs in their community, manufacturing tops the list 1Manufacturing Facility 2. Technology development center 3. Energy production facility 4. Healthcare facility 5. Retail center 6. Communications hub 7. Financial institution Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study

17 90 % of Executives indicate Attractiveness of Industry impacts the talent shortage Today s manufacturing is not your grandfather s manufacturing.

18 PERCEPTION ISSUES Americans are reluctant to choose careers in manufacturing While more than half of respondents believe manufacturing jobs are interesting and rewarding, negative perceptions toward manufacturing still exist and need to be addressed. 1/2 Of Americans believe manufacturing jobs to be interesting and rewarding 1/2 Believe a career in manufacturing provides a good income relative to other industries 1/3 Agree that manufacturing jobs are increasingly available and accessible THREE out of FOUR Believe manufacturing jobs are the first to be moved to other countries Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study

19 NATIONAL LEADERSHIP LOCAL ACTION PUBLIC PRIVATE PARTNERSHIP 19

20 GOAL 1: CHANGE THE PERCEPTION OF Image CAREERS IN MANUFACTURING

21 DREAM IT. DO IT. 365,000 students 43,000 parents 27,000 educators In 34 states

22 WHAT CAN YOU DO? Employers Tell your company story Form meaningful and long-term partnerships with schools Educators Learn about modern manufacturing Promote manufacturing careers Community Leaders Stress the impact of manufacturing on the local and regional economy Join the Dream It. Do It. network and support Manufacturing Day

23 PERCEPTION ISSUES Americans indicate targeted programs would increase interest in manufacturing careers 52% Tours of advanced manufacturing facilities for students Industry familiarity increases positive perception Those familiar with manufacturing are 2X as likely to encourage a child to pursue manufacturing Ranked manufacturing 3 rd as career choice out of 7 key industries versus 5th overall Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study

24 GOAL 2: RE-ESTABLISH THE U.S. AS THE GLOBAL LEADER Quality OF MANUFACTURING EDUCATION.

25 WHY DOES IT MATTER? Americans indicate targeted programs would increase interest in manufacturing careers 72% 68% 61% Internships, work study or apprenticeship Certification or degree programs for manufacturing skills training On campus recruiting by manufacturing firms Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study

26 CONNECTING EARNING AND LEARNING Apprenticeship: Earn and learn training model that combines work -based learning with related classroom instruction using the highest industry standards. It is a means to formalize work-based learning, so workers know exactly how to progress toward their career goals, and companies know who is on the path toward promotion into new positions or to replace retiring workers.

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29 WHAT CAN EMPLOYERS DO? What can EMPLOYERS do? Prefer certifications as part of the HR screening process for hiring and promoting workers. Ask your education partners to deliver nationally certified students. Provide work-based learning, co-op, internships and apprenticeship opportunities to give students realworld experience.

30 GOAL 3: ADVOCATE FOR EDUCATION AND JOB TRAINING POLICIES Policy THAT STRENGTHEN THE U.S. MANUFACTURING WORKFORCE

31 WHY POLICY MATTERS?

32 CONTACT INFORMATION Jennifer McNelly President The Manufacturing Institute

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