Filling Our Talent Pipeline A Partnership with The Manufacturing Institute

The Manufacturing Institute The leading research, education, and workforce group supporting U.S. manufacturers The 501 (c) 3 affiliate of the National Association of Manufacturers Your voice fighting for a skilled workforce for manufacturers

A Renaissance in Manufacturing? Manufacturing Jobs in U.S. (000s) Nearly 500,000 jobs added in the last two years. Major consulting firms issue reports predicting a return of manufacturing from Asia.

Manufacturing Jobs Require Higher Skills Workforce has become a major issue for manufacturers because manufacturing processes have changed dramatically in the last 10 years. The widespread application of technology and use of computers and robotics have reduced the number of workers needed to produce goods and increased the complexity of the required jobs. This chart shows how the percentage of higher skilled workers has increase in manufacturing over the last several years. And this does not even take into account the leaning during the early 2000s when many of the most unskilled positions in industries such as textiles were eliminated or offshored.

The Skills Gap in Manufacturing 82% of manufacturers report a moderate or 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. In a study released by Deloitte and The Manufacturing Institute, the skills gap has become even more apparent. Unfortunately, this rapid transformation in manufacturing to a highly skilled, advanced manufacturing sector left many companies unable to find the workers they need to fill the new jobs. In our recent skills gap report released this past fall, we found that 82% of manufacturers reported a moderate or serious shortage of qualified workers for skilled production positions. These aren’t the masters or Ph D. positions but the welders and metalworkers and technicians that actually make manufacturing companies run. This is a having a serious impact on companies and our economy as a whole as almost three quarters of firms report that this skills gap is impacting their ability to expand operations. If you think back to the slide about the multiplier effect, this means that less value is being created by manufacturers than it otherwise could be and that has an effect across the entire economy. To put this in real terms, we asked what percentage of total jobs was unfilled because companies couldn’t find qualified applicants. The median answer was 5%. That is nearly 600,000 open and available manufacturing jobs right now. If we are on the cusp of an on-shoring wave of manufacturing jobs, solutions need to be implemented immediately to solve this problem. The Manufacturing Institute & Deloitte - September 2011

Manufacturers Need New Workforce Strategies Top sources for new employees Part of the blame for the lack of skilled workers rests with manufacturers though. When we asked how companies found new workers, over half said that they rely on word-of-mouth to fill positions. After that, it was staffing agencies and on-line job boards. If you look at the bottom of the list, you find community colleges and technical schools. This is where the talent is really being created and where manufacturers should be looking to supply their workforce. The Manufacturing Institute & Deloitte - October 2011

Providing competency-based, customized education and training for the manufacturing workforce…today and tomorrow On March 4, 2009, we launched the cornerstone of our answer—the NAM-Endorsed Manufacturing Skills Certification System. By deploying this system of industry-recognized skills certifications through our educational and workforce development systems, we can produce the high performance workforce that is critical to the strength and vitality of our manufacturing economy. Our purpose in developing and deploying this system of skills certifications is to provide industry’s voice and expertise in helping this nation provide competency-based, customized education and training for the manufacturing workforce.

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.

Original Certifications Academic & Workplace Competencies (Reading & Writing, Applied Math; Locating Information) ACT - National Career Readiness Certificate Production (Safety, Quality Practices & Measurement, Manufacturing Processes & Production) Manufacturing Skills Standards Council Welding American Welding Society Machining & Metalforming – CNC National Institute for Metalworking Skills Technology & Engineering Society of Manufacturing Engineers

Transportation, Distribution, & Logistics Founding Partners Partners Expanding Certifications Automation International Society of Automation Packaging Machinery Manufacturing Association Construction National Center for Construction Education & Research Fabrication Fabricators & Manufacturers Association, International Fluid Power International Fluid Power Society Transportation, Distribution, & Logistics Manufacturing Skills Standards Council American Society of Transportation & Logistics Association for Operations Management - APICS 10

Take Action

What Will Our Association Do? Serve as a leading advocate for industry-recognized skills certifications within the manufacturing industry Encourage member companies to use industry-recognized certifications (the Skills Certification System) as a preference in recruitment and hiring Link to The Manufacturing Institute from your website

What Do We Get? Opportunity to co-brand brochures, web content, and social media Connections to colleges producing workers with industry-recognized certifications Access to returning military, community college students, and other skilled pipelines

What Does a Partnership Look Like? Press release and recognition on The Institute website Collaborate and network with a national community focused on address the challenges facing manufacturers Join efforts to get young people excited about careers in manufacturing by connecting with youth, parents, educators, and guidance counselors

What Do We Do Now? Sign a partnership agreement with The Manufacturing Institute Inform association members about the Institute, industry certifications, and the skilled workforce initiative Work with the Institute on which certifications help to meet our industry workforce challenges