National Academy of Sciences

Transcript National Academy of Sciences

The Manufacturing Institute

Emily Stover DeRocco President

The Institute’s Agenda for Driving U.S. Manufacturing Competitiveness Education Reform & Workforce Development Innovation Support & Services Research

June 2011

U.S. Manufacturing Is Strong

35 30 65 60 45 40 55 50 Manufacturing PMI 42% Overall Economy 50% Manufacturing Economy Source: ISM 3

Innovation Drives Manufacturing Strength

U.S. Industrial R&D Outpaces Global Rivals

Source: Facts About Modern Manufacturing, 8 th Edition 4

An Educated and Skilled Workforce

Innovation Performance

 In these tough economic times, business innovation is a strategic imperative.

 A highly skilled and educated workforce is the most critical element for innovation success.

Workforce Quality

5 Source:

The Innovation Imperative in Manufacturing – How the United States Can Restore Its Edge

The Structural Cost of Manufacturing

  U.S. Manufacturers face a 20% cost burden over competitors from our largest trading partners, up from 17.6% in 2008.

35,0% 30,0% 25,0% 20,0% 15,0%

Structural Cost Burden For U.S. Manufacturers

22,4% 31,6% 17,6% 20,0% Corporate tax rates make up over half that burden.

10,0% 5,0% 0,0% 2003 2006 2008 2011

The Manufacturing Institute & MAPI – October 2011

The Public Supports Manufacturing

The Manufacturing Institute & Deloitte - September 2011

Manufacturing Jobs for Someone Else

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% 18% 15% 14% 26% 32% 40% 40% 52% 9

The Skills Gap in Manufacturing

 82% of manufacturers report a moderate-to serious skills gap in skilled production.

 74% of manufacturers report that this skills gap has negatively impacted their company’s ability to expand operations.

 69% of manufacturers expect the skills shortage in skilled production to worsen in the next 3-5 years.

 5% of all jobs in manufacturing unfilled due to lack of qualified workers.

The Shrinking Pipeline

Manufacturing Jobs Require Higher Skills

Manufacturing Employment by Skill Group, 2003 through 2010

Index 2003=100 115 High 110 105 100 95 90 85 2003 2004 2005 2006 2007 2008 Sources: Chmura Economics & Analytics and Current Population Survey.

Low 2009 Mid 2010 12

Educational Deficits

Source: Facts About Modern Manufacturing, 8 th Edition 13

National Solutions and Customized Strategies  Our Education and Workforce Development agenda focuses on implementing quality education reform for the entire pipeline: Early Childhood K-12 Post-Secondary Transitioning/ Incumbent Workers At-Risk Youth Low Income Young Adults ESL Military Working Learners  Foundational skills in English language communication, reading, applied STEM, and workplace competencies such as teamwork, work ethic, integrity, and creativity are necessary for all individuals to pursue any career in manufacturing.

A Million-Dollar Investment

“I advise each of my staff that every worker hired is a million dollar investment for this company. I’m calculating that most hires are under 45 years old; we intend to keep them for at least 20 years, and our average annual salary/benefits package is $55,000. In other words, we can’t afford to make a mistake—to hire someone without the right skills. Verifiable skills certification programs can make the difference between a good investment and a high risk.”

Dennis Rohrs, Human Resource Manager Fort Wayne Metals, Inc.

Providing competency-based, customized education and training for the manufacturing workforce…today and tomorrow 16

Advanced Manufacturing Competency Model

High Quality Middle Class Jobs Occupation-Specific Certifications Entry Level Industry Certifications Ready for Work, Ready for College

The NAM-Endorsed Manufacturing Skills Certification System

     Aligned to the Manufacturing Competency Model Nationally Portable Third-Party Validated (ISO/ANSI Preferred) Industry-Driven Data Based and Supported 19

AWS SME’S TECHNOLOGIST AND ENGINEER NIMS

A LIGNING E DUCATION , C ERTIFICATION , AND C AREER P ATHWAYS

For the Welding Industry at Lorain County Community College

4/30/2020JuJune 01

Expanding the Model

Priority Sectors Include: • Aerospace/Defense • Automation • Life Science: Biotechnology, Pharmaceutical & Medical Device • Construction • Energy • Plastics and Composites • Transportation, Distribution, and Logistics 27

Automation Pathway

 • • International Society of Automation (ISA) Certified Automation Professional Certified Control Systems Technician  • Packaging Machinery Manufacturing Institute (PMMI) Mechatronics Certificate 28

Transportation, Distribution, and Logistics Pathway

 Manufacturing Skill Standards Council • • Certified Logistics Associate Certified Logistics Technician  American Society of Transportation and Logistics • • Global Logistics Associate Professional Designation in Logistics and Supply Chain Strategy • Certified in Transportation and Logistics  APICS - The Association for Operations Management • • APICS Certified in Production and Inventory Management APICS Certified Supply Chain Professional 29

Additional Pathways Fabrication

 • Fabricators and Manufacturers Association Precision Sheet Metal Operator

Construction

 • • • National Center for Construction Education and Research Mobile Crane Operator Rigger and Signal Person Tower Crane Operator 30

What’s Next

 NAM Endorsement of Additional Certifications – Quality & Die Casting  Industry Pathway Development - Aerospace, Energy, Life Sciences  Manufacturers Endorsed Schools 31

Manufacturers Leading the Effort

 “In the competitive nature of the world, winning today requires exceptional talent. This makes the pipeline of workers a significant issue for manufacturers. Partnering with schools that provide nationally portable, industry-recognized credentials gives us confidence that we can hire people with the right skills to expand our business.” --

Don McCabe, Senior Vice President, Corning, Inc.

Manufacturing Skills Certification System

Deployment and National Scope

States with national philanthropic funding for deployment (AL, AR, CT, FL, IL, IN, IA, KS, MS, NV, NY, NC, OH, TN, TX, WA, WI) States with grassroots efforts and strategic partnerships advocating for deployment (AZ, CA, GA, ID, KY, MD, MI, MN, MO, NE, NM, OK, OR, PA, SC, VT, VA, WV)

Setting the Table for State Leadership

Government/Policy : Governors, state legislators, government officials, policy makers Education : K-12, Community and technical colleges, 4-year colleges and universities Workforce and Economic Development : WIBs, EDA Industry : employer champions, MEPs, manufacturing employer organizations

Recruiting Students Into Advanced Manufacturing Careers