BUILDING THE MANUFACTURING TALENT PIPELINE FRA NATIONAL SUPPLY CHAIN COMMITTEE

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1 BUILDING THE MANUFACTURING TALENT PIPELINE FRA NATIONAL SUPPLY CHAIN COMMITTEE October 9, 2015 Jennifer McNelly Executive Director The

2 Every day, we try to combat the misperceptions. Today s manufacturing is not your grandfather s manufacturing.

3 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

4 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 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 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. *Next decade means the time period

5 Perception issues 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

6 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

7 Costing Us 11% of Potential Earnings 12% increase in overtime + 8% increase in cycletime + 10% increase in downtime

8 National Leadership Local Action Public Private Partnership 8

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

10 Over 2,400 Events

11 Dream It. Do It.

12 Changing the public perception of Manufacturing through the voice of Manufacturing employees Early career, well spoken employees who play a front-facing role to their community representing the manufacturing industry Ambassadors are representatives of the industry and the characteristics that describe them. (ie: women, early career, occupation/skill sets) Link here

13 STEP Ahead: Women in manufacturing 1. Honor leadership 2. Celebrate careers 3. Develop a more diverse workforce 4. Ensure new opportunities 5. Inspire the next-generation

14 Essays: 1. Please share a noteworthy contribution and/or technical accomplishment your nominee has achieved and how they were critical or key to your business division or company overall? 2. List specific examples of how this individual has demonstrated leadership within the company. 3. Give an example of how your nominee has mentored others. 4. How has your nominee made a community impact?

15 GET SKILLS TO WORK: TRANSITIONING VETERANS

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

17 We are developing quality education through

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20 Tools and Resources

21 ADVOCATE FOR EDUCATION AND JOB TRAINING POLICIES THAT STRENGTHEN THE U.S. MANUFACTURING WORKFORCE Policy

22 MAKE YOUR VOICE HEARD

23 Lessons Learned The most successful efforts were galvanized and led by business associations, engaging employers. The effort changed the conversation about the importance and value of industry-recognized credentials. State-level leadership convening activities result in unprecedented partnerships and collaboration.

24 Get Up. Get Involved. Get Engaged.

25 What Can You Do? Analyze and understand Tell your story Leverage industry standards Engage with your partners Provide work-based learning

26 How do Associations Engage? Leverage national resources and tools Customize tools to reflect member voice Organize resources for member action Measure member impact

27 Why? Americans indicate targeted programs would increase interest in manufacturing careers 72% 68% 61% 52% Internships, work study or apprenticeship Certification or degree programs for manufacturing skills training On campus recruiting by manufacturing firms 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

28 What Influences Careers? Source: Attracting the Next Generation Workforce, 2015

29 Contact Information Jennifer McNelly Executive Director The Manufacturing Institute