Business Impact and the Skills Gap Leslie Parady Project Manager

NIST Manufacturing Extension Partnerships Business Impact and the Skills Gap National program with at least one center in every state Market driven program that responds to the needs of private sector manufacturers Federal/State, public-private partnership Leverage partnering expertise as strategic advantage

MassMEP Workforce Development Goals Business Impact and the Skills Gap “accelerating the development of industry-led skills strategies that result in a productive workforce for employers and in high quality jobs for workers” ▪ Skills development ▪ Industry-recognized credentials ▪ Employer engagement ▪ Work-based learning ▪ Connected education and training strategies ▪ Clear and demonstrable outcomes

NIST Business Impact Survey Business Impact and the Skills Gap ▪ Sales New and Retained ▪ Jobs Created and Retained ▪ Cost Savings ▪ Investments Increased or Avoided ▪ Scale of 1 to 10 – Rate MEP

▪ Recruiting competent job applicants ▪ Knowledge transfer from experienced employees to less experienced employees Manufacturing Talent Recruitment Challenges The Sloan Center on Aging & Work ▪ Low skill levels of new employees

Talent & Business Goals and Performance Business Impact and the Skills Gap

Strategic Talent Management vs. Tactical HR Business Impact and the Skills Gap

Extracting Insight from Data Business Impact and the Skills Gap "Most people use statistics the way a drunkard uses a lamp post, more for support than illumination." - Mark Twain 3-4 Key Performance Indicators Understandable, meaningful and measurable Something that will track behavior changes AND can be quantified ($$$)

Training ROI Business Impact and the Skills Gap

Confidential / © Siemens AG All rights reserved Worcester, MA  Manufacture Proprietary Equipment in Worcester  Specialize in close tolerance, high accuracy, high speed equipment  Be the lead factory in core competency  Help grow the rest of our colleagues in the Metal Technologies division

Confidential / © Siemens AG All rights reserved Business Challenge: Preparing for the Future Manufacturing in US is resurgent but:  Not enough qualified people to meet the need  Existing training programs are insufficient

Confidential / © Siemens AG All rights reserved Business Challenge: Preparing for the Future There are three key issues we are mindful of:  Demographics  Training/qualification gaps  In our people  In current training programs/approaches  Increasing need for people capability and flexibility

Confidential / © Siemens AG All rights reserved Business Challenge: Preparing for the Future We believe:  Businesses have a role to play in development of resources and filling the gaps  This aligns with our specific business need and our responsibility to the community and the country in which we live and work.

Confidential / © Siemens AG All rights reserved Worcester: Typical demographics Average age understates challenge  Bell curve shifted to the right Next 10 years critical  Exodus of developed talent Focus areas:  Work with current experienced talent, engage as trainers  Develop flexible work schedules to extend service  Document work instructions and standards – capture the know how

Confidential / © Siemens AG All rights reserved Worcester: Training/Qualification Approach Six step Approach:  Identify specific needs  Detailed job description development  Baseline assessments (MEP)  Evaluate gaps  Current and future

Confidential / © Siemens AG All rights reserved Worcester: Training/Qualification Approach  Design programs for:  Cross training current employees, co-ops and apprentices  Must define credentials required  Utilize partners/external resources  Provide tools, specific training materials, base lining, assisting with Grants etc. (MEP, LearnCNC™, technical/trade schools, colleges, universities and other NGO’s)

Confidential / © Siemens AG All rights reserved Worcester: Training/Qualification Approach  Create Roadmap  Defines steps and tools to be used  Roadmap must address both our near term needs and our long term objectives: talented work force with knowledge, key skills and flexibility that allows us to compete and grow in fast changing and challenging markets  Execute roadmap and monitor

Siemens Engagement with MassMEP Business Impact and the Skills Gap ▪ New Hire Recruiting and Training – late 2011 Placed 10 people CNC Machine Operators ▪ Founding member of Manufacturing Advancement Center Workforce Innovation Collaborative (MACWIC) – 2012 ▪ Incumbent worker training – 2014 ▪ Skills assessment – 2014

Applied Manufacturing Technology Pathway Certification Business Impact and the Skills Gap

Siemens Skills Gaps Tested 96 shop floor employees in each module comprising Levels 1 & 2

NIST Business Impact Survey Business Impact and the Skills Gap ▪ Sales New and Retained ▪ Jobs Created and Retained ▪ Cost Savings ▪ Investments Increased or Avoided ▪ Scale of 1 to 10 – Rate MEP

MassMEP Business Impact 104 companies surveyed in 2013 Created 522 jobs that otherwise would not have existed Retained 1,565 jobs that otherwise would have been lost Increased and retained $149.1 million in sales Spent $49.3 million on new investment Experienced $12.4 million in cost savings and avoided costs Net Promoter Score On average, an industry’s NPS leader outgrew its competitors by a factor greater than two times.

MassMEP Federal & State ROI IMPLAN Pro V3.0 Creating or retaining 5,109 jobs that paid a total of $340.6M in employee wages and benefits Increasing or retaining economic output worth $1.22B Contributing or retaining $709.2M of gross state product Generating or retaining $137.2M in additional tax and non-tax revenues at the federal, state and local government levels ($51.7M at the state, and local level)

Further Information Business Impact and the Skills Gap Leslie Parady

Applied Manufacturing Technology Pathway Certification Business Impact and the Skills Gap