1. Emily Stover DeRocco President
Investing in our Nation’s Youngest Citizens:
The case for manufacturing
Emily Stover DeRocco President
4/14/2011
Prepared For: United Way Success By 6 Greater Carlisle Area Chamber of Commerce

2. The Institute’s Agenda for Driving U.S. Manufacturing Competitiveness
Education Reform
& Workforce Development
Innovation Support
& Services
Research
The Manufacturing Institute is a non-profit, non-partisan organization focused on delivering leading-edge solutions, information and services to the nation’s manufacturers
Our focus in on Education Reform and Workforce Development; Innovation Support and Services – and Research
The Institute is the 501(c)(3) affiliate of the National Association of Manufacturers, the largest multi-industrial trade association, with 11,000 companies of all sizes as members;
The Manufacturers represents 12 million manufacturing employees; Includes 350 trade associations in its membership; Member companies are responsible for 85 percent of U.S. manufacturing output; represents every industrial sector; and is composed of members from all 50 states.
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3. Manufacturing Creates the Most Economic Value
Manufacturing has the greatest multiplier effect of any industry in our economy.
In simpler terms, manufacturing creates the most wealth.
That’s way other countries are aggressively pursuing the manufacturing industry and why the U.S. needs a strong manufacturing sector as the foundation of our economy.
In Pennsylvania, manufacturers employ over 560,000 people. That is still over 10% of the state’s workforce. And in the Harrisburg – Carlisle region, nearly 20,000 people work in manufacturing.
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4. Manufacturing Pays Premium Compensation
$70,801 in manufacturing vs. $58,750 in non- manufacturing
Because manufacturing creates the most value of any industry, it can afford to pay its workforce greater compensation.
Between wages and benefits, workers in the manufacturing sector earn over $70,000. That’s more than $12,000 more than other industries and provides for a solid, middle or upper-middle class living for those workers.
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5. Manufacturing Jobs Require Higher Skills
Today’s manufacturing jobs require higher skills’ competencies. As shown in the chart, high-skilled jobs in the manufacturing sector grew by 12 percent from 2003 through 2010 while mid-skilled jobs decreased by 3 percent and low-skilled jobs fell 9 percent over the same period. This trend toward a more skilled workforce is important according to a recent survey of U.S. executives: “a skilled, educated work force is the single most critical element of innovation success—and the hardest to acquire.”
High, mid, and low-skilled jobs were defined based on a combination of the occupation’s average educational attainment and average wages. Using this method, the three skill levels contained approximately the same number of jobs in 2003.
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6. Workforce Challenges 6
Demographics—The Graying of the Workforce and the Shrinking Pipeline
Technological Advances in Modern Manufacturing Require More Skills
Deficits in Our Education System
Contributing to our workforce challenges are:
Demographics: We face a graying workforce coupled with a shrinking pipeline.
Technological advances in modern manufacturing require more advanced skill sets.
Major deficits in our education system hamper U.S. competitiveness on the world stage: our global competitors continue to surpass our educational system in producing a high-volume, high-quality technical workforce.
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7. High School Graduation Rates Must Improve….
This sounds like a harsh criticism, but the numbers speak for themselves.
This slide is from the US Chamber of Commerce’s Institute for a Competitive Workforce. It shows the available labor pool.
For every 100 9th graders:
68 graduate on time;
Of those 68, 40 enroll directly in college (associates, bachelors, trade school);
Of those 40, 27 are still enrolled the following year;
Of those 27, only 18 earn an associate's degree within 3 years or a BA in 6 years.
The 82 that don’t make it will not be able to compete in an economy that requires a skilled labor force.
As manufacturers, if 82% of our products did not make it off the shelf, we would go out of business.
Pennsylvania is a little better than the national average with a graduation rate of 79.5%.
Carlisle is even better with an 88% graduation rate.
Source: U.S. Chamber Institute for a Competitive Workforce

8. Talent Options for Business
Import the talent
Export the job
Grow the talent here
As business people, we know that there are very limited choices in terms of work force capabilities:
We either import the talent, export the job, or grow the talent here.
I think we would all agree that investing in and developing our future workforce, the children of this nation, is the option that, in the long run, benefits not only our companies but our families, our communities, our state, and the nation.
That we should focus our efforts on growing our talent.
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9. Roadmap to Education Reform for Manufacturing
Manufacturers support policies at every level of education to improve the talent pipeline.
In December of last year, we invited a group of manufacturers executives, education officials, and thought leaders to Washington, DC to help us frame a roadmap for education reform for manufacturing.
Each of you should of have a copy of the Roadmap. In it, we describe the key areas that we believe should and will impact education at all levels over the course of the next several years.
We also list a set a set of policies and practices that manufacturers believe should be a part of any education reform efforts.
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10. National Solutions and Customized Local Strategies10 10
Our Education and Workforce Development agenda focuses on implementing quality education reform for the entire continuum:
Early Childhood
K-12
Post-Secondary
Transitioning/ Incumbent Workers
We designed the Roadmap to represent each of the steps along the education pathway for individuals. We did so because The Manufacturing Institute is engaged in activities to support the development of skilled workforce at every step along that education continuum.
The cornerstone of our efforts cuts across the K-12, Postsecondary, and transitioning workers spectrum and is called the NAM-Endorsed Manufacturing Skills Certification System.
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11. Advanced Manufacturing Competency Model
High Quality Middle Class Jobs
Occupation-Specific Certifications
Career Paths – Life Long Learning
Entry Level Industry Certifications
The evolution to the Skills Certification System began with a 2-year development of the Advanced Manufacturing Competency Model, announced in May 2006.
This model, built by manufacturers, for manufacturers, is essentially a roadmap of the skills needed by workers entering and then advancing in careers across the manufacturing economy.
Our first focus has been on the core or basic skills that cut across all sectors in manufacturing.
These core or basic skills are:
Personal Effectiveness Skills – for example, will prospective employees show up on time, ready for work
Basic Academic Requirements – for example, will prospective employees have the basic math and reading skills needed
General Workplace Competencies – for example, can the prospective employees work in teams
Industry-wide Technical Competencies – for example, will prospective employees understand the basics of manufacturing
Ready for Work, Ready for College
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12. The Skills Certification System, and the career pathways in manufacturing that it supports, also align to education pathways in secondary and postsecondary education. Integrating the skills certifications into those education pathways implies that they should become part of degree programs of study, so that a worker can progressively pursue stackable credentials and “bank” credits, engaging in a lifetime of learning.
This upwardly mobile ladder directly demonstrates how learning is a continuum throughout a worker’s life as more competencies are acquired and documented with a recognized credential. Credentials gained through the Skills Certification System will strengthen an individual’s ability to be mobile in the workforce, compete for higher-level jobs, and move to in-demand careers by:
Providing skills and competencies recognized industry-wide; and
Providing career pathways clearly mapped to educational pathways tied to credentials preferred by employers in multiple sectors.
This system gives each individual a path to succeed, the skills to compete, and the opportunity to win.
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13. Postsecondary Assets
Dozens of World-Class Colleges and Universities including:
Land Grant University with an economic development mission
Leading force behind a national organization to drive university-based economic development
Harrisburg University
Unique industry-driven, STEM-focused institution
14 community colleges
Pennsylvania has an incredible array of higher education assets. There are dozens of colleges and universities all across the Commonwealth including major engineering schools like Carnegie Mellon and Lehigh.
But the biggest of the Commonwealth’s schools is the Penn State University system. As a land grant college, it was founded specifically with an economic development mission.
Today, it is the driving force behind a national organization to lead university-based economic development in the innovation economy.
Another incredibly unique institution in also the Commonwealth’s youngest university. Opened in 2006, Harrisburg University is an industry-driven, STEM and Manufacturing focused institution.
It’s results are amazing with 97% placement of graduates into their fields of study.
Finally, there are 14 community colleges across the commonwealth that have a wealth of experience partnering with local employers.
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14. Secondary School Assets
Extensive network of career, technology, and technical education centers
One group of assets that is relatively unique to Pennsylvania is the amazing array of secondary school career, technology, and technical education centers found in most of the counties.
These centers are part of school systems and act as a natural feeder for talent into the manufacturing sector.
Given the hand-on training that students receive at these schools, there is a great opportunity to implement the skills certification system into the curriculum. It will provide students will industry-recognized skill certifications for those that need to enter employment immediately. And through integration with the community colleges and institutions like Harrisburg University, provide clear career pathways into more advanced careers in manufacturing.
I cannot overstate what an asset these centers provide students and the manufacturing sector at a time when a skilled workforce is the most valuable commodity a manufacturer can possess.
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15. Early Childhood is the Foundation
Success in secondary and postsecondary education requires a base of knowledge and an ability and desire to learn that is first developed in early childhood.
It is in early childhood that the foundation for a successful career in manufacturing, or any industry, is established.
But of course, the reason we’ve here today is promote education in early childhood.
The success that students achieve at these secondary and postsecondary schools is made possible by the foundation of knowledge and ability to learn that is developed in early childhood.
It may seem strange that a manufacturing group is engaged in this arena, but as I said, talent is our most valuable commodity and we can going to ensure the next and future generations of talent enter the manufacturing sector with the skills to succeed in our industry and drive the world’s industrial leader, we need to start when it matters most.
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16. Early Investment Results in Greater Return On Investment (ROI)
If we treated the problem in education as a problem in manufacturing, we would fix the problem at its earliest source – early childhood education.
With early intervention, America’s potential for innovation and productivity can be exponentially more optimistic.
The key is a strong educational foundation. Research shows access to high-quality early childhood education is integral to helping today’s children prepare for school readiness and success.
Early investment in high-quality early education results in a high return on investment.
Like any time-valued investment, the earlier you make the investment, the greater the return.
By making early investments in high-quality early education, long-term costs for educating an individual for career readiness decrease substantially.
NEXT SLIDE
SOURCE: Heckman, James J. Schools, skills and synapses. Economic Inquiry. July 2008.
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17. The Economic Case Benefits of quality early learning:
Promotes positive brain development
Strengthens families
Promotes school readiness
Saves tax dollars
Contributes to long-term economic growth
Prepares today’s children for tomorrow’s competitive workforce
If we invest now, we will save later: it takes fewer dollars early on to change the trajectory of a child than it does an adult. Children who participate in early childhood education programs:
Attain higher high school graduation rates, higher lifetime salary, and higher education levels;
Pay more in taxes and have a reduced need for remediation and welfare; and,
Show less criminal activity.
This amounts to substantial money saved in incarceration costs, welfare, and other corrective initiatives.
In summary…..the economic case to industry can be made from this data – invest now or remediate for a lifetime.
READ FROM SLIDE:
NEXT SLIDE
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18. Call to Action
Engage the Commonwealth’s postsecondary assets to influence and direct the programs;
Integrate nationally portable, industry- recognized credentials into secondary school career and technical education programs;
Support investments and policies in quality early childhood education
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19. The Manufacturing Institute
Thank You!
The Manufacturing Institute
Institute.nam.org