Bonnie Elsey Director, Workforce Development Minnesota Department of Employment & Economic Development

2011 Skills Gap Report Deloitte and The National Association of Manufacturers –1,100 US Manufacturers responded 83% reported moderate to serious shortages in skilled production positions such as machinists and technicians. 60% reported moderate to serious shortage for Production Engineers 50% reported moderate to serious shortages for scientist and product designers. 2

The Challenge Increase the pipeline of new workers Initiate Competency Models and benchmark performance Manage the retirement bubble Outdated educational curriculum Outdated recruitment strategies Manage Performance differently

Pipeline of New Workers Career Camps Outreach to Schools Dream it do it Articulation agreements between HS and post-secondary education. Career Pathway Models

Competency Models Career One-stop National Manufacturing Association Credentials (NAMS) National Career Readiness Certificate (NCRC) Benchmarking performance

Manage the Retirement Bubble Projected 69% of Manufacturers believe shortages will increase in the next 3 to 5 years (2016) Hardest hit will be skilled production (machinists, operators, and technicians) and industrial and manufacturing engineers. Knowledge management (Talent contribution of older workers) – part-time work, mentorships, coaches, trainers.

Outdated Educational Curriculum Challenges –Constantly changing innovations - demand –Outdated and costly equipment for training –Right Skills at right time –More flexible training hours –Continuous start dates

Outdated Recruitment Strategies Old recruitment –Word of mouth –Newspapers –Job Boards – key word searches New Recruitment –Job Boards with artificial intelligence –Websites –Social Media –Partnerships

Right Skills Now for Manufacturing

Facing the Reality of 21st Century Manufacturing Workforce Demographics: We face boomer retirements coupled with a shrinking pipeline. Technological advances in modern manufacturing require more advanced skill sets. Major deficits in our education system limit production of a high quality and quantity workforce.

A Skills Mismatch Compromises U.S. Manufacturing Competitiveness and Employment Talent Acquisition Innovation Jobs Global Competitiven ess 82.5% of manufacturers report a moderate-to- serious shortage of skilled production workers, including machinists 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. This skills gap has resulted in as many as 600,000 jobs going unfilled.

Darlene Miller, President, Permac Industries, Minneapolis It’s really frustrating and continues to be a real issue for manufacturers like me when we hear the unemployment numbers but yet we cannot find people skilled to come to work for our companies. We are constantly interviewing and finding that the people we bring in do not have the math skills that are required to operate our equipment. We can buy all of the equipment we need but we cannot find the skilled labor we need to advance our companies.

Fast Track to Jobs  Providing workers and students with fast-track skills for employment Providing manufacturers just- in-time talent from the lab/classroom to the shop floor  Accelerating and expanding lifelong learning opportunities for a flexible, technical workforce

Skills for Today’s and Tomorrow’s Manufacturing Academic, Personal, and Career Skills Technical Skills Nationally portable, industry- recognized credentials

Fast Track Training 1 semester + internship Measurement, Materials and Safety Job Planning, Benchwork and Layout CNC Operator- Turning Level 1 CNC Operator- Milling Level 1

Career Ladder Manufacturing Basic Skills = Foundation Right Skills Now Manufacturing Job Machine Tool Technology Engineer AAS Degree BS Degree