The Rise of High-Skill, High-Wage Production Jobs Is Manufacturing Dead? The Rise of High-Skill, High-Wage Production Jobs Yustina Saleh SVP Analytics Rob Sentz CINO

Should We Start a Data Science Program? Skills and industry based analysis Explore how employer needs are manifesting at the local level Look at the relationship between regional industry drivers and skills

Overview of domestic manufacturing Outline Overview of domestic manufacturing In-demand skills Compensation and transferability Summary and call to action

Why? Aligned Economic Ecosystems REGIONAL ECONOMY People Supply Demand Higher Ed Businesses

Methodology Demand - Used industry and occupation data to analyze overall performance Skill Clusters - Evaluated 400K postings for 2017 to determine the skills employers need Wages - Analyzed compensation data collected from traditional sources, job postings, and resumes/online profiles to determine whether these skills lead to increased wages Transition - Used postings and profiles to trace how the skills manifest

Industry Performance, 2001-2009

Industry Performance, 2010-2017

Job Openings

Unemployment

Job Postings

(Half of all workers are above 45) Demographics (Half of all workers are above 45)

Summary Re-emergence since 2010 800,000+ new jobs Decline over 30 years+ Re-emergence since 2010 800,000+ new jobs 350% increase in openings 2.6% unemployment Postings rivaling IT and health care Lack of supply NAM and American Welding Society predicting massive shortages

What do the jobs look like today? Getting beyond current taxonomy What are the skills? What is the compensation? Employers willing to pay? Are these skills transferable? Not dead end jobs…

Top Companies Posting

National Cluster Traditional production skills Welding, machining, etc Computer-Automated Tech (CAT) Tech that aids production Six Sigma (or Lean) Process improvement Good Manufacturing Practices (GMP) Quality control

Observations Two - classic production Two - engineering-oriented Six Sigma is very close to the core Workers must possess tried- and-true skills Continuous process improvement had the overlap

Demand - Baseline How do regions compare? Michigan California Tennessee Will they look the same / different? Will we see the same skill clusters or new ones? Training happens at the local level Finding the appropriate niche is key

Common (Soft) Skills

Top Employers, Michigan

Michigan Vehicles and Industrial Design Two classic production sets Two engineering-oriented sets Traditional and vehicles overlap Industrial design and Six Sigma overlap

Industrial Design and Six Sigma

California Vehicles is the dominant cluster Other three – industrial design, Six Sigma, and GMP are engineering oriented Corrective and preventative actions (CAPA) shows up in three lanes

Tennessee Smaller but diverse More oriented to production Vehicles CAT Traditional Six Sigma is important everywhere

Skills Summary Employers look for blend of classic production skills and engineering- oriented skills Engineering technologists Emerging skill sets – hybrids or fusions of two different areas Six Sigma showed up everywhere Balance between on-the-ground know-how and process improvement/quality control High-tech

Compensation – Production Workers

Compensation by Skill

Compensation by Skill

Pathways Workers that start in the production categories gain engineering skill sets As they add more knowledge and skills they can be promoted or get more schooling to advance Employers are willing to pay for education and training to increase skill sets As they gain more engineering skills – they work more on the business side of the house. Other areas of the company use these skill sets. Other industries use the skill sets too

Six Sigma

Concluding Thoughts Employers – the landscape for talent is competitive Communicate / beat the drum Collaborate with colleges and local agencies to get help Invest and pay Educators – change perception Partner Combine data w/ real world intel Communicate with students (outcomes, compensation, transferability) Work experience / continuous learning

Concluding Thoughts Students and parents – opportunity abounds Get informed – lack of knowledge plagues ed and career choice Start convo early – career exploration and experience can start early Mix of tools-of-the-trade + engineering skills/knowledge

What to do next… Emsi is working to incorporate new skills methodology and compensation to our tools Stay tuned… If you need help with analysis or want to use our tools to dig into skills, let us know. Contact us if you have questions or need help with other sectors. Please – always feel free to contact us if you need help getting more value out of the data.

Up next? Liberal arts outcomes The importance of your first job Cybersecurity And more… If there is something you’d like us to take a closer look at, give a yell…

Thank you for coming… Questions Rob Sentz rob@econicmodeling.com