The Demand for Skills-What does the skills shortage mean?

What will it take to address it?

Mary AndringaPresident and CEO

Vermeer

Vermeer

Started Operations in 1948Gary Vermeer

Vermeer Facts

• 2,007 employees strong representing 86 different towns in Iowa, 23 different counties

• Vermeer processes approximately 150 tons of steel each day.

• In 2006, we used 30,953 miles of weld wire, approximately 129 miles per day

Segments• Hay Harvesting• Environment• Infrastructure

Situation

Demand for Skills at Vermeer…• 14% of our employee population is eligible for retirement• More difficult to recruit CNC Machinists, Skilled Engineers,

and Welders• Current open positions

– Design engineering positions – currently 48 employed– Machine specialists positions – currently 138 employed– Machine technician positions – currently 91 employed– Welding positions – currently 249 employed

• Positions open from 12 to 59 calendar days

Demand for Skills at Vermeer…

• Current open positions - continued– Kaizen Production Office Managers including

• Supply Chain• MDI• Engineering• Parts Distribution Center• Positions open from 27-55 calendar days

• How long does it take to fill a Continuous Improvement position?– Kaizen Production Office Manager Positions: 75 days – Kaizen Production Office Tech Positions: 18 days

Demand for Skills at Vermeer…• Assembly Training Lab• Weld Training Lab

Solutions

What we are doing to make a difference• Internships for students

– 2005 – 25 internships– 2006 – 35 internships– 2007 – 37 internships

• Scholarships– 1983-2007: 567 scholarships to 305 different

students– Representing 26 different high schools going to 61

different colleges – In 2000, started giving scholarships to both

technical and 4-year colleges

What we are doing to make a difference• Teacher Internships

– 3 week experience where high school teachers and guidance counselors participate in continuous improvement training, job shadowing, and certain work applications to better understand the skills and experience needed to be successful in a manufacturing environment

– Compensation of $20/hour, 2 AEA Credits, and Drake University Credit

• Foundation gifts to schools– Over $7.5 million given to 17 different schools in grants,

scholarships, and equipment including SL5 Mori Seiki Lathe, Kawasaki engines, cylinders, and engineering programs.

What we are doing to make a difference• Twin Cedars

– Industrial Arts Shop Safety and 5-S Project

• Community College partnership– 71 hires in the past five years – Representing over 13 different community colleges

including:• Indian Hills Community College, Ottumwa, Iowa• Marshalltown Community College, Marshalltown, Iowa• Kirkwood Community College, Cedar Rapids, Iowa

Opportunity

Policy questions for state legislators from Business Champions• Are you acknowledging the role of community

colleges?• Strengthening community colleges with policies

that address:• Workforce Competitiveness? Meeting employers’

needs for skilled workers in key industries that pay good wages.

– Building incentives for colleges to address new career areas and provide flexible training?

– Supporting Career and Technical Education?

Policy questions for state legislators from Business Champions• Strengthening community colleges with policies that

address (con’t.):• Individual Opportunity? Expanding opportunities for youth

and adults to access flexible education and training pathways leading to good jobs and opportunities for ongoing education.

– Building more effective partnerships between K-12 and ccs?– Investing in needs based aid?– Insisting on transfer agreements from community colleges to four

years?• Appropriate Accountability? Measuring the progress of

community colleges in closing the skills gap and rewarding their success in preparing students for high skill jobs?

Thank You!

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