Solving workforce challenges. in additive manufacturing. Joseph W. Lampinen, M.S., CMfgE Senior Director, Global Engineering Practice, KellyOCG
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1 Solving workforce challenges in additive manufacturing Joseph W. Lampinen, M.S., CMfgE Senior Director, Global Engineering Practice, KellyOCG
2 /02 INTRODUCTION Thanks to an ongoing wave of technological advancements including 3-D printing, metal additive manufacturing, and other rapid technologies, additive manufacturing (AM) is on the rise around the globe. According to the Wohlers Report 2016, in 2015, the AM sector grew by 25.9 percent to a total of $5.165 billion worldwide. While this is 7.9 percent lower than the sector s compound annual growth rate (CAGR) for the previous three years, it s still impressive and indicates the growing demand for AM as a part of many industries, including automotive manufacturing and aerospace. However, just like in other segments of the manufacturing sector, AM manufacturers are finding it challenging to attract and retain qualified talent. This skills shortage not only compromises current operations, but will continue to hinder manufacturing potential in the coming years. So, what can employers do to ready their workforce for AM?
3 /03 Between 2015 and 2025, a projected 3.5 million manufacturing jobs will be added yet experts predict that 2 million positions will go unfilled.
4 /04 Lack of AM talent leads to diminished ROI A 2015 study by Deloitte titled, The Skills Gap in U.S. Manufacturing: 2015 and Beyond highlighted just how large the skills gap in the manufacturing sector is. Between 2015 and 2025, a projected 3.5 million manufacturing jobs will be added yet experts predict that 2 million positions will go unfilled. It s not surprising, therefore, that 82 percent of manufacturing executives agree the skills gap will affect their ability to meet demand; 78 percent believe it will impede their ability to utilize the latest technologies and increase productivity; and 62 percent state it will adversely impact their capacity to drive innovation and create new products. While these statistics pertain to manufacturing in general, the truth is that because AM is a highly specialized sector, finding skilled talent is even more challenging. AM is capable of fabricating unique part designs that cannot be produced with conventional subtractive methods, which is what s driving the growing interest in the sector. It s also what validates the high sticker price of the equipment typically upwards of $500,000 to $1 million or more per machine because when properly implemented, AM production processes save resources and reduce time to market.
5 /05 Lack of AM talent leads to diminished ROI (continued) It follows that companies that want to maximize their ROI need engineers and production talent who possess AM-specific skills and are also trained in the use of the exact machine(s) they re using. It s not enough for workers to complete a crash course in operating the machine. They also need to be proficient in designing for AM (DfAM) technologies and in understanding the capabilities and potential applications of the technology. In addition, they need to know what materials are available and what the unique properties of those materials are. It s important to understand that conventional subtractive manufacturing skills and AM skills are not necessarily interchangeable. Workers who don t understand the unique attributes of AM can waste the potential benefits of the technology and that means their employers won t achieve the ROI they ve counted on. In other words, until manufacturers can attract and retain both the engineering and the production talent they need for the entire AM design and production process, they ll fail to achieve the returns and establish the competitive advantage they envisioned.
6 /06 Factors contributing to the AM skills gap Since manufacturers are willing to make considerable financial investments in AM equipment, it s logical that they re motivated to acquire the right talent for their AM design and production processes. However, as noted previously, the manufacturing sector is experiencing a significant skills gap and as a specialized subsector, AM is dealing with an even greater lack of talent. In order to expand the AM workforce, it s critical to be aware of the following factors that contribute to the lack of skilled talent in this sector: Generational shifts affecting the workforce: Baby boomers are retiring including mature workers with knowledge of AM. In addition, relatively few new workers are entering the manufacturing sector. This is in large part still fallout from the Great Recession, when numerous manufacturing workers lost their jobs, resulting in fewer parents encouraging their children to choose manufacturing as a career. A lack of employer investment in workforce development: Michele Nash-Hoff s IndustryWeek article titled, ToolingU-SME Report Reveals Manufacturers Are Not Addressing Skills Gap highlights some concerning trends revealed in a comprehensive report of the manufacturing space. More than half of all manufacturers do not allocate funds for employee development, and one-third agree their company provides only minimal job-related training opportunities.
7 /07 More than half of all manufacturers do not allocate funds for employee development, and one-third agree their company provides only minimal job-related training opportunities.
8 /08 Factors contributing to the AM skills gap (continued) A lack of opportunities for hands-on AM equipment training: Because the equipment used in AM is so expensive, very few educational institutions have access to it. Community colleges and vocational schools where the majority of new manufacturing production talent train can t even begin to budget for it. It s even an impossibility for most colleges with engineering programs. As a result, there are only a few training centers where new talent or existing workers who are upskilling can get hands-on experience with AM machines. Inconsistent opportunities to use AM skills: Even when workers possess the right skills, they must use them on a regular basis in order to remain proficient. Many contingent workers who don t consistently work in AM therefore don t acquire the experience they need to achieve true proficiency. The incompatibility of AM equipment-specific training: There are many AM processes, and all are constantly developing due to technological advancements and new materials. Consequently, there are fundamental differences between the various available machines. That s why it s impossible to train generalists to have a high-level understanding of AM that can be applied to the various versions of the equipment and processes. Instead, both engineering and production talent need to be specialized to a certain extent.
9 /09 Simply knowing how to operate a machine isn t enough to establish a lean AM production process that yields the desired ROI. Workers also need to understand how to design for the AM processes associated with these specific machines, plus they need to understand what materials can be used and how to use them.
10 /10 Current solutions and their limitations Manufacturers are nothing if not resourceful so it s not surprising that many have come up with temporary solutions to the AM skills gap. Yet, however well thought-out these solutions are, they each have their own limitations: AM plants funded by multiple companies: Small- to mid-sized manufacturers may not have the financial resources to purchase AM equipment. That s why in some areas, manufacturers are pooling their resources to establish time share AM plants in industrial parks. While this method provides them with access to equipment they otherwise wouldn t have, it has considerable limitations. Participants don t have the ability to establish continuous AM production cycles, since they can only use the plant during their allocated time. It s also impossible to be flexible due to the rigid time constraints, so all production cycles must be ready to go on day one and cannot run longer than planned. Furthermore, the manufacturers don t have a rapid response capability to take advantage of sudden spikes in demand or market developments. AM manufacturer equipment training: Many companies are looking to the manufacturers of AM equipment to provide training for their employees. However, as mentioned earlier, simply knowing how to operate a machine isn t enough to establish a lean AM production process that yields the desired ROI. Workers also need to understand how to design for the AM processes associated with these specific machines, plus they need to understand what materials can be used and how to use them. Without this knowledge, it s impossible to create streamlined, innovative AM production processes. Employer-funded training: Though the 2016 ToolingU-SME report indicates that the majority of manufacturers aren t funding workforce development, there are of course employers who do invest in upskilling their employees. This is an expensive process and unfortunately, it s one that often backfires in the long term. With manufacturers competing for the top talent in the field, it s only a matter of time before an upskilled employee gets an offer from the competition and all too often, he or she winds up getting poached. As a result, many manufacturers are reluctant to invest in large-scale upskilling of their workforce.
11 /11 With the rise of the gig economy, a growing number of engineers prefer to be independent contractors and work on a project-by-project basis.
12 /12 How a workforce partner can help manufacturers fill their AM skills gap While the previously mentioned solutions provide a stopgap solution to the AM skills shortage, manufacturers are clearly in need of both more effective short-term solutions and more continuous long-term solutions. That s where a workforce partner like Kelly with proven expertise in AM recruiting can provide employers with the support they need to meet their AM talent needs, utilizing one or more of the following solutions to establish a steady influx of qualified workers: Recruiting trained and experienced contingent and direct-hire AM talent: Recruiting the right talent begins with knowing where these workers are. A workforce partner will look in niche talent communities and tap into other existing talent pools to source workers with whom it already has a relationship. Because it already knows these workers and their backgrounds, it will be able to make more effective talent matches and provide manufacturers with the exact type of skilled workers they need. Establishing contingent teams of independent contractors: With the rise of the gig economy, a growing number of engineers prefer to be independent contractors and work on a project-by-project basis. While this might be frustrating for employers looking for permanent talent, it also gives them the flexibility to only employ this type of expensive workers when they need them. A workforce partner can play an invaluable role in bringing together teams of independent contractors and if necessary, adding regular employees to the mix for the life of a specific project. This offers the advantage of being able to source niche talent for very specific projects without the burden of full-time employment contracts. Establishing long-term talent pipelines: A workforce partner can help an employer develop new talent pipelines, for example by recruiting at educational institutions with AM programs. Providing training: As one of the most invested workforce partners in the AM space, Kelly can provide training for manufacturers that want to upskill their workforces. This training can be both online for theoretical training and on-site for hands-on instruction from certified field trainers.
13 /13 Providing in-house, on-the-job training and good career guidance are factors that will attract young, motivated talent who want to grow with the company.
14 /14 Beyond the skills gap While ensuring a steady flow of skilled workers is critical, it s equally important for employers to know how to maximize their ROI and reduce the risk associated with investing in AM workforce readiness. This is in large part directly related to employee engagement and retention. A lack of worker engagement will likely adversely impact performance and productivity. In addition, it also increases the odds of a competitor poaching trained talent. Clearly, manufacturers need more than just a skilled workforce; they also need that workforce to be high-performing and motivated to stay with the company. A workforce partner like Kelly, which conducts ongoing research into worker experience and motivation, can advise employers on how to enhance engagement and retention. It can provide insights into what aspects of a job are important to the different generations so employers can tweak their offerings accordingly. For example, Gen Z workers are less likely to pursue higher education than previous generations but they do want to learn. Providing in-house, on-the-job training and good career guidance are therefore factors that will attract young, motivated talent who want to grow with the company. At the same time, a workforce partner can help employers enhance engagement by assessing what factors need to be addressed for example, career development, work-life balance, or access to interesting opportunities.
15 /15 CONCLUSION LOOKING TO THE FUTURE With all the promise that AM holds not only for the manufacturing sector, but also by extension for the entire U.S. economy, every investment in AM a company makes is likely to yield a high ROI in the long run so long as all the necessary parts are in place. Granted, establishing and maintaining a skilled AM workforce will take time, resources, and effort on the part of manufacturers and their workforce partners. But as process speeds improve and the cost of technology decreases, AM will become more widespread. Soon, more educational institutes will be able to afford the equipment needed for practical training, and eventually, AM skills will become more commonplace. That s why forward-thinking manufacturers that want to stay ahead of the curve and secure their competitive position have to proactively design strategies and put workforce processes in place that support their AM capabilities. Because the more they invest in AM workforce readiness now, the better they ll be able to take advantage of AM to achieve their business objectives in the future.
16 JOE LAMPINEN M.S., CMfgE, LEED AP, PMP Senior Director, Global Engineering Practice, KellyOCG Joe is a leading engineering workforce strategist and solutionist, engaged with industrial clients to solve problems in engineering outsourcing and recruitment, shaping strategic guidance to improve organizational abilities to meet current and anticipated engineering workforce demands. He holds a Master of Science degree in technology from Purdue University, as well as a graduate certificate in engineering law and management from the University of Illinois at Chicago, and an interdisciplinary bachelor s degree in technology and operations from Western Illinois University. Joe is credentialed as a Certified Manufacturing Engineer, Project Management Professional, and is a Leadership in Energy and Environmental Design Accredited Professional. He joined Kelly in 1998 and has worked in the engineering practice throughout his career in operational and strategic leadership roles. Joe frequently speaks and presents at industry and professional conferences and is an active member of a number of engineering professional societies and associations. ABOUT KELLYOCG KellyOCG, the Outsourcing and Consulting Group of workforce solutions provider Kelly Services, is the leading global advisor of talent supply chain strategies that enable companies to achieve their business goals by aligning talent strategy to business strategy. We recognize each client s goals are unique to their business drivers and priorities whether speed, quality, compliance, or cost. We apply supply chain management principles to help companies leverage talent across all internal and external worker categories: full-time employees, temporary employees, freelancers, independent contractors, and service providers, as well as alternate sources of workers like retirees, alumni, and online talent communities. In 2017, KellyOCG was named for the sixth consecutive year to the International Association of Outsourcing Professionals Global Outsourcing 100 list, an annual ranking of the world s best outsourcing service providers and advisors. SOURCES: This information may not be published, broadcast, sold, or otherwise distributed without prior written permission from the authorized party. kellyocg.com All trademarks are property of their respective owners 2017 Kelly Services, Inc EXIT
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