GLOBAL
COMPETITIVENESS
SUMMIT
@TheMfgInstitute
@JMcNellyNAM
Jennifer
McNelly
[email protected]
DOES MANUFACTURING STILL MATTER?
THE ANSWER: YES!
Manufacturing and the linkage to economic growth:
 The advancement of manufacturing capabilities is the most
important link to increasing the economic prosperity of a
nation
 Many emerging economies are primed for rapid growth
 Competition for high value jobs will intensify
 The proverbial “bar” will continue to be set higher and higher
THE DEVELOPMENT OF
NEW MANUFACTURING
ECONOMIES
LAUNCHED
OPERATIONS
2010
GLOBAL MANUFACTURING
COMPETITIVENESS INDEX REPORT
TALENT-DRIVEN INNOVATION
GLOBAL MANUFACTURING
COMPETITIVENESS INDEX REPORT
Council on Competitiveness and Deloitte 2013
Report Talent Driven Innovation ……
Over 550 CEO Respondents Around the World!!
 Quality & availability of researchers, scientists, engineers
 Overall quality and availability of skilled labor
 Quality of primary & secondary schools to produce suf ficient
student populations proficient in science, technology and
math
 Quality of colleges & universities… and their partnerships with
business in research and innovation
 Ef fective & ef ficient immigration policies
EDUCATION AND WORKFORCE POLICY
THAT DEVELOPS SUPERIOR TALENT
“The ability to develop and attract the world’s most talented
workers was critical to every executive participating in the
discussions, regardless of geography. Executives consistently
said that their ability to drive innovation is directly linked to
their ability to access highly educated workers .”
Source: Manufacturing for Growth Strategies for Driving Growth and Employment
THE FUTURE OF MANUFACTURING
DISRUPTIVE INNOVATION IN
MANUFACTURING
SO WHAT ABOUT THE
UNITED STATES?
FACTORS DRIVING A POTENTIAL
RESURGENCE IN US MANUFACTURING
S U M M A RY O F M A N U FAC T U R I N G AT T R AC T I V E N E S S T R E N D S
PwC
Page 13
Source: A homecoming for US manufacturing?
FILLING JOBS IS NO EASY TASK
of executives surveyed agree
there is a talent shortage
in U.S. manufacturing
It takes 90+ days
to recruit highly skilled workers
and they indicate…
SIX out of TEN
open skilled production
positions
are unfilled due to
talent shortage
even when
80%
of manufacturing companies are
willing to pay more than the market rates in
workforce areas reeling under talent crisis
Source: 2015 Manufacturing Institute and Deloitte Skills Gap Study
THE SKILLS GAP IS WIDENING
2.7 Million
baby boomer retirements
700K manufacturing
jobs expected from
economic expansion
3.4
Million
manufacturing
jobs are likely to be
needed over the
next decade
3 ½ Million
Over the next decade* nearly
manufacturing jobs likely need to be filled
The skills gap is expected to result in
2 Million
Only 1.4 Million
jobs are likely to
be filled
of those jobs being unfilled
The implications are significant
leading to an expected
2 Million
manufacturing jobs
unfilled due to the
skills gap
Every job in manufacturing
creates another 2.5 new jobs in
local goods and services1
For every $1 invested in
manufacturing, another $1.32 in
additional value is created in
other sectors2
*Next decade means the time period 2015 - 2025
Sources: Bureau of Labor Statistics (BLS) and Deloitte analysis
1 Milken Institute and Economic Planning Institute.
2 The U.S. Department of Commerce, Bureau of Economic Analysis.
WHAT DOES AMERICA THINK?
90%
82%
of Americans believe
manufacturing is
very important to
economic prosperity
of Americans believe
the U.S. should further
invest in the
manufacturing
industry
Americans believe the industry has global
competitive advantages
73%
72%
69%
Technology
use and
availability
Research and
development
capabilities
Energy
availability
U.S. competitive
advantages
identified by
respondents
Americans support
manufacturing job creation
If given an opportunity to create 1,000 new jobs
in their community,
manufacturing tops the list
1
#
Manufacturing Facility
2. Technology development center
3. Energy production facility
4. Healthcare facility
5. Retail center
6. Communications hub
7. Financial institution
Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study
90 % of Executives indicate Attractiveness
of Industry impacts the talent shortage
Today’s manufacturing is not your grandfather’s
manufacturing.
PERCEPTION ISSUES
Americans are reluctant to choose careers in manufacturing
While more than half of respondents believe manufacturing jobs are interesting and rewarding,
negative perceptions toward manufacturing still exist and need to be addressed.
1/2
Of Americans believe
manufacturing jobs
to be interesting
and rewarding
1/3
Agree that
manufacturing jobs
are increasingly
available and
accessible
Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study
1/2
Believe a career in
manufacturing
provides a good income
relative to other industries
THREE out of FOUR
Believe manufacturing jobs are the
first to be moved to other countries
NATIONAL LEADERSHIP – LOCAL ACTION
PUBLIC – PRIVATE PARTNERSHIP
19
GOAL 1:
CHANGE THE
PERCEPTION OF
CAREERS IN
MANUFACTURING
Image
DREAM IT. DO IT.
365,000 students
43,000 parents
27,000 educators
In 34 states
WHAT CAN YOU DO?
Employers
 Tell your company story
 Form meaningful and long -term partnerships with schools
Educators
 Learn about modern manufacturing
 Promote manufacturing careers
Community Leaders
 Stress the impact of manufacturing on the local and regional
economy
 Join the Dream It. Do It. network and support Manufacturing
Day
PERCEPTION ISSUES
Americans indicate targeted programs would increase interest in
manufacturing careers
52% •
Tours of advanced manufacturing facilities for students
Industry familiarity increases positive perception
•
Those familiar with manufacturing are 2X
manufacturing
•
Ranked manufacturing 3rd as career choice out of 7 key industries versus 5th overall
Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study
as likely to encourage a child to pursue
GOAL 2:
RE-ESTABLISH THE U.S.
AS THE GLOBAL LEADER
OF MANUFACTURING
EDUCATION.
Quality
WHY DOES IT MATTER?
Americans indicate targeted programs would increase interest in
manufacturing careers
72%•
Internships, work study or apprenticeship
68%•
Certification or degree programs for manufacturing skills
training
61%•
On campus recruiting by manufacturing firms
Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study
CONNECTING EARNING AND LEARNING
Apprenticeship:
“Earn and learn” training model that combines work -based
learning with related classroom instruction using the highest
industry standards.
It is a means to formalize work -based learning, so workers know
exactly how to progress toward their career goals, and
companies know who is on the path toward promotion into new
positions or to replace retiring workers.
WHAT CAN EMPLOYERS DO?
What can EMPLOYERS do?
 Prefer certifications as part of the
HR screening process for hiring and
promoting workers.
 Ask your education partners to
deliver nationally certified
students.
 Provide work-based learning, co-op,
internships and apprenticeship
opportunities to give students realworld experience.
http://www.themanufacturinginstitute.org/
GOAL 3:
ADVOCATE FOR
EDUCATION AND JOB
TRAINING POLICIES
THAT STRENGTHEN THE
U.S. MANUFACTURING
WORKFORCE
Policy
WHY POLICY MATTERS?
CONTACT INFORMATION
Jennifer McNelly
President
The Manufacturing Institute
E-mail: [email protected]
www.themanufacturinginstitute.org
@TheMfgInstitute
@JMcNellyNAM