BUILDING THE MANUFACTURING TALENT PIPELINE Jobs for the Future Building Public Private Partnerships Association of State Colleges and Universities Grants Resource Center Washington, DC August 18, 2015
Does Manufacturing Still Matter? The advancement of manufacturing is the most important link to increasing economic prosperity For every $1.00 spent in manufacturing, another $1.37 is added to the economy
Manufacturing Does Matter 90% of Americans believe manufacturing is very important to economic prosperity If given an opportunity to create 1,000 new jobs in their community, manufacturing tops the list # 1 Manufacturing 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
Technology is Impacting Manufacturing McKinsey
Manufacturing is Innovating
THE GAP
Ranking of Industry Preference (Mis)Perceptions Cost Us Workers Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study
Filling Jobs Is Difficult 84% of executives surveyed agree there is a talent shortage in U.S. manufacturing SIX out of TEN open skilled production positions are unfilled due to talent shortage even when 80% of manufacturers are willing to pay more than the market rates Source: 2015 Manufacturing Institute and Deloitte Skills Gap Study
And It s Going to Get More Difficult 2.7M baby boomer retirements 700K manufacturing jobs expected from economic expansion 3.4M manufacturing jobs are likely to be needed by 2025 1.4M jobs are likely to be filled 2M jobs unfilled due to the skills gap Source: 2015 Manufacturing Institute and Deloitte Skills Gap Study
Downtime Cycletime Overtime It Costs 11% of Potential Earnings Greater than 10% 5-10% Less than 5% No impact Greater than 10% 5-10% Less than 5% No impact Greater than 10% 5-10% Less than 5% No impact 12% increase in overtime + 8% increase in cycletime + 10% increase in downtime Source: 2014 Accenture Training Study
Employers Educators Community Leaders
National Leadership and Local Action
Goals 1. O rganize manufacturers to speak with one voice regarding the workforce needed to sustain and grow manufacturing 2. Engage and align key stakeholders community leaders, education institutions, local/state officials to take action and build momentum 3. Together, build a system that delivers a sustainable pipeline of manufacturing talent
CHANGE THE PERCEPTION OF CAREERS IN MANUFACTURING Image
Dream It. Do It.
Veterans Youth Women
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
What Can You Do? Start from the Top Foster Sponsorship and Mentorship
Get Skills to Work: Transitioning Veterans
What Can Employers Do? 1. Share your company story 2. Begin cultural change, starting from the top 3. Cross-walk position needs to military experience
Leading from Education Education Council Nationally-recognized education leaders representing K-12, community/technical colleges, and four year institutions. Council members and the institutions they represent are committed to delivering high-quality manufacturing education and training programs designed to meet the skill requirements of our nation's manufacturers. Council members play an active role at the local, state and/or national level in shaping and promoting policies designed to promote career and technical education, competency-based education, industry credentials, innovation and applied research. The Manufacturing Institute leverages the expertise of Council members to expand and enhance our broad network of educationbusiness partnerships across the county. Members
What Can Educators Do? Learn about modern manufacturing by visiting plants, participating in externships, etc. Promote manufacturing as a viable career choice: Emphasize advanced and emerging technologies Stress the high-wage career pathway from entry-level production through engineering; and Emphasize the growth opportunity across all career opportunities HR, finance, accounting, marketing, sales, quality, etc.
There is Hope Programs would increase interest in manufacturing 72% 52% Internships, work study or apprenticeship Tours of advanced manufacturing facilities for students Those familiar with manufacturing are 2x as likely to consider it Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study
RE-ESTABLISH THE U.S. AS THE GLOBAL LEADER OF MANUFACTURING EDUCATION Quality
Knowledge is Power http://www.costofahire.com/
Average cost of a bad hire: 1.5x base salary
Developing Quality Education
15 Endorsed Certifications
The Path Forward
Building the Pipeline More than 419,000 industry certifications Over 90% of companies that use certifications believe they make a difference
What Can Educators Do? Work with employer to develop work-based learning opportunities Align manufacturing programs with industry-based standards and certifications Support faculty development, including certifying instructors, and Invite industry into the classroom to inform design and content
What Can Employers? Analyze Prefer certifications Ask your education partners to deliver certified students Provide work-based learning
Tools and Resources
ADVOCATE FOR EDUCATION AND JOB TRAINING POLICIES THAT STRENGTHEN THE U.S. MANUFACTURING WORKFORCE Policy
Get Up. Get Involved. Get Engaged.
Contact Information Jennifer McNelly President The Manufacturing Institute E-mail: jmcnelly@nam.org www.themanufacturinginstitute.org @TheMfgInstitute @JMcNellyNAM