The Talent Equation Manufacturing Matters Presented by Jennifer McNelly President The Manufacturing Institute National Robotic Welding Conference & Exhibition 2013 People Make the Difference Recipes for Robotic Arc Welding Success
Mission To research and support manufacturing excellence, innovation, and talent; and deliver solutions to keep manufacturers in America globally competitive. 2 2
3 The Manufacturing Institute is the authority on the attraction, qualification, and development of worldclass manufacturing talent. 3
Why manufacturing? Why Manufacturing?
For every $1.00 spent in manufacturing, another $1.48 is added to the economy, the highest multiplier effect of any sector
Exports Wealth Strength Jobs R&D
Productivity Growth Index (1990=100) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Manufacturing Drives Productivity Growth 170 160 150 140 130 120 110 100 90 Manufacturing Excluding Computers and Electronic Products Service Sector Source(s): U.S. Bureau of Economic Analysis and MAPI 7
Average Compensation in Dollars per Full-Time Equivalent Worker, 2011 Manufacturing Jobs Offer Greater Compensation $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Manufacturing Non-Manufacturing Source(s): U.S. Bureau of Economic Analysis and MAPI Wages and Salaries Benefits 8
A resurgence in U.S. manufacturing? 9
Challenges 10
Structural Cost of Manufacturing U.S. Manufacturers face a 20% cost burden over competitors from our largest trading partners. Corporate tax rates make up over half that burden as other countries have reduced rates. 35% 30% 25% 20% 15% 10% 5% 0% Structural Cost Burden For U.S. Manufacturers 22.4% 31.6% 17.6% 20.0% 2003 2006 2008 2011 U.S. Canada Mexico Japan China Germany U.K. Korea Taiwan France 1997 40% 44% 34% 51% 33% 57% 31% 30% 25% 36% 2010 40% 31% 30% 40% 25% 29% 28% 24% 17% 33% The Manufacturing Institute & MAPI - October 2011
2013 Global Manufacturing Competitiveness Index
Quality Life = Quality Job Supply Demand Disconnect Do we have a skills gap?
There are fewer manufacturing education programs. There are fewer students pursuing manufacturing careers.
17 17
18 18
Manufacturers Need New Workforce Strategies Top sources for new employees Word of mouth Staffing agencies Online Job Boards Newspaper Ads Company recruiting function External search firms Company Websites Tech schools Community colleges Other 6% 8% 15% 14% 18% 26% 32% 40% 40% 52% The Manufacturing Institute & Deloitte - October 2011
What s the solution? 20
Educate manufacturers about the importance of talent-driven innovation and build support for nationally portable, industry-recognized credentials as an effective means to close the manufacturing skills gap.
23
Wouldn t It Be Nice If You knew a job applicant had baseline skills in: Reading & Writing Applied Math Locating Information (like in a table or blueprint)
Wouldn t It Be Nice If You knew a job applicant had baseline skills in: Reading & Writing Applied Math Locating Information (like in a table or blueprint) National Career Readiness Certificate
Wouldn t It Be Even Better If
Call to Action Embedding industry-based certifications in education pathways provides third-party validation of skills and minimizes hiring risk for employers; Aligning education and training to nationally portable, industry-driven certifications developed by employers increases placement and wage gains for students; and Embedding industry-based certifications in education pathways increases the acceptance of credits for articulation across programs and institutions, enhancing efficiencies of the educational delivery system and promoting student completion.
Certified Workers
Quality Workforce Certified Students Certified Instructors Certified Schools 29
Values Associated with Credentialing Lower recruiting costs Lower entry-level training costs Improved employee retention Improved opportunities for advancement Improved employee engagement and input Lower relocation costs Improved workplace safety
If we build it will they come? 31
Encourage individuals to pursue manufacturing careers and reposition manufacturing in the minds of citizens students, parents, teachers, and guidance counselors. 32
The Advanced Manufacturing Workforce STEP Ahead initiative is the call for action to promote the role of women in the manufacturing industry through recognition, research, and best practices for attracting, advancing, and retaining strong female talent. 33 33
34
Over 190 Companies Strong 35
The Advanced Manufacturing Workforce 36 36 36
http://www.mfgday.com/ October 4, 2013 37
Invest in EDUCATION and TRAINING Help to promote a positive manufacturing IMAGE Stand as a POLICY LEADER Be a BUSINESS LEADER 38 38
Be the One
Contact Information Jennifer McNelly President The Manufacturing Institute E-mail: jmcnelly@nam.org www.themanufacturinginstitute.org @TheMfgInstitute @jmcnellynam