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
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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
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Manufacturing Jobs for Someone Else
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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.
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The Shrinking Pipeline
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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.
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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.
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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
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A LIGNING E DUCATION , C ERTIFICATION , AND C AREER P ATHWAYS
For the Welding Industry at Lorain County Community College
4/30/2020JuJune 01
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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.
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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
June 2011
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A “Win-Win” Scenario
Educators Workers High-Quality Jobs Employers Regional Developmen t