Developing the Developing the ManufacturingManufacturing Workforce Workforce

Of the Future … Of the Future … TodayToday

West Central MinnesotaWest Central Minnesota

WHY MANUFACTURING?WHY MANUFACTURING?

Manufacturing accounts for about 13 percent 13 percent of theof the nation’s nation’s GDPGDP and 11 percent of U.S. jobs11 percent of U.S. jobs

Manufacturing was the largest contributor to economic largest contributor to economic growthgrowth during the 1990s

Manufacturing wages are 22 percent higherwages are 22 percent higher than the average of other sectors’ wages.

WHY MANUFACTURING?WHY MANUFACTURING?

Manufacturing provides its workers with more health, more health, retirement, retirement, andand other benefits other benefits than any other sector except

government.

Manufacturing contributes two-thirds two-thirds ofof U.S. exports U.S. exports

Manufacturing performs 62 percent 62 percent of allof all U.S. research and U.S. research and development / innovationdevelopment / innovation

In the last 20 years, manufacturing productivity has grown manufacturing productivity has grown twice as fasttwice as fast as overall business productivity

0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Sources: TIP Strategies; U.S. Bureau of Labor Statistics; U.S. Census Bureau

Projected Net Annual Change in the Working Age Population (18-64)

Average Annual Job Creation Since WWII

Approaching Workforce DeficitApproaching Workforce Deficit

The Workforce of the FutureThe Workforce of the Future

Shortage of Shortage of 1313 millionmillion to to 1515 millionmillion skilled workers by 2020 skilled workers by 2020

Baby-Boom Generation is Retiring Baby-Boom Generation is Retiring

Little or no growth in 18- to 26-year-old age groupLittle or no growth in 18- to 26-year-old age group

Outdated or inadequate skills for high-demand jobsOutdated or inadequate skills for high-demand jobs

60 percent 60 percent of all new jobs in the 21st century will require skills of all new jobs in the 21st century will require skills possessed by only possessed by only 20 percent 20 percent of the current workforceof the current workforce

College or Bust

0% 10% 20% 30% 40% 50% 60% 70%

Will Enter a 4-year college

Will enter anassociate degree

program oradvancedtraining

Will lack the skillsneeded for

employment ordrop out of high

school

Where the Jobs Are…

Where 9th graders areheaded

90% of respondents indicated a moderate to severe shortage of qualified skilled production workers;

83% indicated that these shortages are impacting their ability to serve customers;

65% of all respondents, and 74% of respondents with more than 500 employees, reported a moderate to severe shortage of scientists and engineers;

39% of respondents indicated a moderate to severe shortage of qualified unskilled production workers.

What Manufacturers Say About Their What Manufacturers Say About Their Current WorkforceCurrent Workforce

Given Changes in the Economy and Business Environment, Which of the Following Will Be Most Important to Your Company’s Future Business Success Over The Next Three Years? (Select Up to Three)

0% 10% 20% 30% 40% 50% 60% 70% 80%

High-Performance Workforce

New Product Innovation

Low Cost Producer Status

Increased Customer ServiceOrientation

Increased Sales Outside the U.S.

Sourcing Products in Global Markets

Supply Chain Integration withSuppliers

Minnesota Mfg Workforce Shortages• Workforce Shortages • The Southwest & Northwest were

most impacted– Overall, 8.5% of respondents

from SW indicated a serious shortage. No other region was higher than 4.2%

– NW had more respondents indicate a moderate shortage

62% 44%

53%

63% 51%

47%

Percent Indicating Moderate or Serious Workforce Shortage

Understanding the Worker Needs of Manufacturers

Minnesota Skills Gap Findings 2007

PERCEPTION PERCEPTION vs.vs. REALITY REALITY

Young adults, parents, teachers, and public-at-large know little about today’s manufacturing

Belief that all manufacturing jobs are being (or will be) lost to foreign competition

Outdated stereotypes

Little or no career information about manufacturing

A Pro-manufacturing Economic Development and Awareness

Campaign

• Show Dream It! Do It! video

• www.dreamit-doit.com/content/for/employers.php

Video is at the bottom of the page

Goals of a Dream It. Do It. campaign:Goals of a Dream It. Do It. campaign:• Promote accurate vision of today’s advanced

manufacturing – see the new reality. • Align goals of economic developers, workforce

development and education with industry.• Provide career information, guidance, and links to

training, internships and jobs.• Develop local education and training strategies for

manufacturing that fill skills gaps.

Parts of a Campaign:Parts of a Campaign:

• Skills Gap Survey– completed for MN• A media campaign and a series of activities

and events: get attention• A “catch and referral” system: communicate

directly and talk about opportunities.• Move them to training or to a job.• Repeat for a year or more.

Who does the campaign target?Who does the campaign target?

• 16 to 26 year olds.• Parents – still the most influential factor.• School professionals – teachers and counselors.• Manufacturers.• Public workforce system.• Other stakeholders.

• UNIQUE INTERACTIVE WEB SITE• BILLBOARDS• RADIO SPOTS• NEWSPAPER & MAGAZINE ADS• BROCHURES, POSTERS, ETC.• TOOL KIT WITH CAMPAIGN MANAGEMENT

AIDES

What are the awareness tools?What are the awareness tools?

What has been accomplished:What has been accomplished:

• Pilot Campaign In Kansas City Region• Formation Of Pro-manufacturing Coalition And New

Mfg Association• Leverage To Obtain $1.9m CBJT Grant• 35 Percent Increase In Enrollment In

Manufacturing Related Courses • 15M WIRED Grant in KC• Significant positive change in attitudes about

manufacturing careers

BENCHMARKING ATTITUDE CHANGEBENCHMARKING ATTITUDE CHANGE

Pre- Phase 1*

Post-Phase 1*

Manufacturing offers me a career not just a job 47% 59%

Manufacturing offers many interesting job opportunities 46% 57%

A career in manufacturing will challenge me 47% 52%

I could build a successful, rewarding career in manufacturing 38% 48%

A career in manufacturing is good for my long-term future 39% 46%

A career in manufacturing will make me feel rewarded 34% 43%

Careers in manufacturing are for creative-type people 32% 40%

Careers in manufacturing are typically low paying 29% 39%

Careers in manufacturing are typically short-term 26% 36%

Locations of CWS Workforce InitiativesLocations of CWS Workforce Initiatives

•American Society of Employers, Detroit, MI•Association of Washington Business, Olympia, WA•California Assn. of Employers, Sacramento, CA•Connecticut Business and Industry Assn., Hartford, CT•Employers Assn., Peoria, IL•Manufacturers Assn. of South Central Pennsylvania, York, PA•Mid-Atlantic Employers Assn., Philadelphia, PA•Power Transmission Distributors Assn., Cleveland, OH•Precision Metalforming Assn., Twin Cities, MN•San Diego Employers Assn., San Diego, CA•SMC Business Councils, Pittsburgh, PA•South Carolina Chamber of Commerce, Columbia, SC•South Florida Manufacturers Assn., Pompano Beach, FL•Wisconsin Manufacturers and Commerce, Madison, WI

•Dream It. Do It., Iowa•Dream It. Do It., Arizona•Dream It. Do It., Mississippi•Dream It. Do It., Virginia•Dream It. Do It., So Central Pennsylvania•Dream It. Do It., Minnesota

•Dream It. Do It., Kansas City•Dream It. Do It., Nebraska•Dream It. Do It., Northeast Ohio•Dream It. Do It., Southwest Virginia•Dream It. Do It., Seattle/Puget Sound•Dream It. Do It., North Central Texas•Dream It. Do It., Southeast Indiana•Dream It. Do It., Will County, Illinois

Workforce Projects Dream It. Do It. Campaigns

Dream It. Do It. Prospects

Dream It! Do It! in Minnesota• Follow Regional model

• One state website from Dream It! Do It! National website– The homepage links to multiple resources within state– The homepage has a map of MN and individuals click on their region– Each region has its own page/site

• Utilize MySpace.com to reach 16 to 24 year olds in Minnesota (send to Dream It! Do It! National website)

• Regional champions and leaders (preferably manufacturers)• Regional campaigns, events and media buys• Dream It! Do It! unifies the message for many regional efforts that

support manufacturing for maximum impact and results

• Show Dream It! Do It! National Website– www.dreamit-doit.com

Regional Campaign Elements• Funding commitment for regional media buys, website

development, MySpace.com advertisement• Regional Champions/Leaders (preferably

manufacturers) who commit to keeping the message and the regional efforts active – Events at schools, public service messages, op-ed

newspaper articles, etc.– Fostering relationships for catch and referral system

3 Major Elements to Campaign

• Media Campaign that gets notice• Series of Events to share the message• Catch and Referral Network to make sure interested

individuals get “caught”

West Central Media Campaign Budget• Regional website $ 5,000• MySpace Regional advertising $10,000• Billboard 6 locations $11,600

– 2 months• Print $ 5,000

– Newspaper ads, posters, brochures, etc. for a year• Promotional Giveaways (highlighters, etc.) $ 2,000• Radio (for regional launch) $10,000• Events (6 events throughout year) $ 6,000

– Food, giveaways, etc.• Total annual for Regional campaign $49,600

Series of Events

• Career events at high schools• Tours of local industry• Rotary• Economic Developer groups• Parent/Teacher Organizations• Other???Presentations, handouts, etc. provided

Share the message that manufacturing is vital to the economy of the region and that manufacturing provides family-supporting careers.

Catch and Referral NetworkCategory #1: Job Ready: These individuals have some level of skill, experience and/or motivation to enter the job market immediately and want to go to work now. They may also be interested in additional education or training while they are working, but their primary interest is getting a job.Category #2: Not Job Ready: These individuals lack the skills manufacturers want in terms ofemployable skills, such as basic math and reading skills, communication skills, or they want toupgrade their skills to qualify for a better job.

FRAMEWORK FOR THE DREAM IT. DO IT. REFERRAL SYSTEM

Simple Self-Assessment

Job ReadySeeking immediate employment

(Go directly to job search vianational and state job banks)

Not Job ReadyNeeding some sort of intervention

(Go to local education and/ortraining providers)

Links/referrals to local serviceproviders based on

individual need(GED through university)

MANUFACTURING CAREER OPPORTUNITIES/JOBS IN MANUFACTURING

Status of West Central Region- slide 1• Raise the remaining funds needed for media buys• Steering Committee formed

• Subcommittee being formed– Catch and Referral System

• Possible additional subcommittees as needed– Fundraising and Sustainability– Marketing and Publicity– Capacity Planning– Career Awareness

Status of West Central Region- slide 2• Invite others to be at the table • Establish catch and referral network

– Peggy Walton from The Manufacturing Institute will be coming in January to help us develop an effective catch and referral network

• Start planning Launch Event– Targeting early March for launch

• What we want to impact– Attitude and awareness of K-12 system– Enrollment trends in manufacturing-related education programs– Direct impact seen by manufacturers– number of applicants and length

of time to fill positions– Attitude and awareness of general public

Steering Committee MembersName Organization Represents

Vicki Lahlum BTD Manufacturers

Mike Westergard StoneL Corp. Manufacturers

Todd Peterson 3M Alexandria Manufacturers

Sandy Kashmark TSMA Manufacturers

Diane Knutson DEED Economic Development

Dan Eishens MSCTC Education

Gregg Raisanen Alexandria Technical College Education

Julie Sachs Rural MN CEP Workforce

Greg Wagner West Central Initiative Economic Development

Inger Wegener Lakes Region Co-op Education

Confirmed and Pending Funding• Tri-State Manufacturer’s Association $ 5,000• West Central Initiative $ 5,000• BTD $ 5,000• 360º $20,000• Rural MN CEP $2,000• 3M Foundation (pending) $10,000• Total confirmed $37,000 ($12,600)• Total confirmed and pending $47,000 ($2,600)

What do 360º, DEED and NAM provide?• EASY BUTTON

– $50,000 required by NAM to use Dream It! Do It!– Proven message and model to change the image of and

support for manufacturing throughout the region– Print Materials– Canned presentations– Advertising collateral– Free administration, coordination, and support

• we can get quotes etc. for media buys and we can place the media buys where you tell us

• Assistance in coordinating events, etc.

Why is involved ?• MnSCU Center of Excellence• Mission– “Building the future workforce for manufacturing in Minnesota

through innovative and collaborative education.”• 3 major initiatives

– Collaborate with industry to change the image of manufacturing (middle school through adults) we have invested over $250,000 in sharing this message through media outlets, career packets, and K-12 events

– Collaborate with industry to provide a seamless career pathway for manufacturing careers with no dead ends our 9 MnSCU institutions have articulated programs from high school pre-engineering curriculum through Masters level

– Make education flexible and accessible through on-line certificates, diplomas, and degrees in relevant skills we have an on-line B.A.S. Applied Engineering degree that builds from technical college education in true 2+2 articulation, we have identified 3 multi-institution blended delivery certificates that will begin development this fall (Production Technology, Machining Technology, Pre-automation)

• We are passionate about doing things differently to meet the needs of the industry and the individual.