Continual Workforce Development:

The Key to Ohio’s Future Manufacturing Success “Years of outsourcing and offshoring have so damaged U.S.

manufacturing, the argument goes, that its once-abundant pool of welders, engineers, and machine operators have shifted to other occupations. And the U.S education system is failing to train enough new skilled workers to replace those who retire.” 1 —The Boston Consulting Group

It’s no secret that there is a skills gap in American manufacturing. Although unemployment lines remain full, manufacturers are struggling to find qualified workers.

The problem is real and, if not addressed, one that will only get worse. The U.S. Bureau of Labor Statistics and Boston Consulting Group suggests that “the retirement of aging workers, as well as heightened demand for workers, could cause serious skilled-labor shortages in the U.S. By 2020, the nation could face a shortfall of around 875,000 machinists, welders, industrial-machinery operators, and other highly skilled manufacturing professionals.”2

The question is what can we in the manufacturing community do about it? The skills gap must be first understood and then addressed through the joint efforts of educational centers and manufacturers.

I N T H E N E W S :

“Employers across North-east Ohio say they have job openings. Many pay $50,000 a year—or more. And they can’t fill them. Talent gap, skills gap. Whatever you call it, it’s real, according to those on the front lines of manu-facturing in Northeast Ohio. Hundreds of high-quality, highly skilled factory jobs are going unclaimed, much to the consternation of com-panies and those charged with providing them with an educated workforce.” 3

- Peter Krause,

Cleveland.com

Only 30 percent of parents are encouraging their children to enter manufacturing.

While 77 percent of people in the U.S. fear the loss of domestic manufacturing jobs to other countries...

Only 17 percent of people see manufacturing as a top career choice.

More than 70 percent of Americans view manufacturing as the most important industry for a strong economy but...

Understanding the skills gapThere is more than one reason for the current gap not the least of which is that older workers are retiring and young people aren’t stepping in to take their place. This is primarily due to a lack of training fueled by limited educational opportunities and lack of interest. Consider these statistics from the National Association of Manufacturers 2011 Skills Gap Report, taken from a recent Huffington Post article4:

70% 30% 77% 17%

To compound the problem, because today’s manufacturing fi rm requires employees with an ad-vanced set of skills that often require some level of post-high school technical education, it is diffi cult to go from the unemployment line to the production line without formal training.

A lot of hard work is required to develop a workforce that will fuel the success of our industry in the coming years. As our industry progresses into next generation manufacturing, the skills needed for the manufacturing workforce are changing. Even incumbent workers need training to help the man-ufacturing industry apply new technologies that will help increase productivity. The usual on-the-job training still used by many companies is rarely enough to teach the latest skills.

It is not that training is non-existent by any means, but opportunities are often limited. Potential sources of training include

To meet the demands for trained workers, there must be an increase in the availability of training opportunities. On the other hand, manufacturers must provide a steady stream of students to be trained in order for the training providers to economically off er the courses. Ties between manufacturers, educational centers, and other entities must be forged to provide these vital links between workers and our industry.

Without these connections, it is unlikely that a solid workforce development plan will come together. Decisive actions must be taken to narrow the skills gap trend. PolymerOhio and its subsidiary OH!Manufacturing play the valuable role of matchmaker—using their extensive industry knowledge and connections to bring together as many suitable entities as possible, strengthening Ohio manufacturing as a whole.

n Courses, certifi cates, and degrees off ered by two-year colleges and career centers

n Public courses off ered by training groups

n On-the-job training

PolymerOhio and its subsidiary OH!Manufacturing play the valuable role of matchmaker—using their extensive industry knowledge and connections to bring together as many suitable entities as possible, strengthening Ohio manufacturing as a whole.

Attacking the gap through collaboration and educationThe skills gap affecting manufacturers must be targeted and narrowed. By doing so, Ohio manufacturers can improve their odds of success in both the short and long term. To make big ideas turn into a prosperous reality, there has to be a strong workforce to fuel its growth.

A carefully designed plan is needed to fill the skills gap.

pipelines that will offer workers the ability to earn family-sustaining wages in challenging jobs that encourage continuous skills development for advancement. OH!Manufacturing and the Ohio MEP play integral roles as an interface between individual manufacturers and the career tech community to promote the formation and long-term success of training-based partnerships.

n Find or create a training program that works for you—Courses, certificates, and degrees offered by two-year colleges and career centers are available in all fifty states by organizations and technical education centers with the specific objective of helping workers improve their skills and knowledge to foster their careers by helping their employers grow. Get to know the opportunities in your area and, if they are lacking, seek a new way to partner and enhance workforce training for your workers.

n Partner with your local career center— Many organizations are partnering with educational centers to develop training and awareness programs that will result in more students working towards a career in manufacturing. You too can take part by working with partners to improve Ohio’s manufacturing future. Learn more about how partnerships promote both soft

n Recognize that manufacturers must act now—Forming a new partnership or program is a complex endeavor. Manufacturers must take the responsibility now to collaborate with training providers to define goals, devise content and implement training that is relevant to today’s manufacturing workplace. Now is the time to form these alliances.

n Positively change young people’s perception of manufacturing—Invite students to take part in career fairs, site visits, or whatever form of interaction is necessary to reach them. Show them what manufacturing today entails. Outreach events via mobile laboratories make it possible for manufacturers to showcase our industry at educational centers as well.

n Partner with other manufacturers— Manufacturers need to collaborate with other manufacturers in addition to non-profit organizations. This can help you overcome the problem of not being big enough to warrant a special program.

n Actively recruit and train—Target anyone who is still in school, underemployed, or unemployed as potential future employees. Many of those who fit this demographic do not know of the interesting jobs, family-sustaining wages and advancement potential in the manufacturing industry. It is important that this group is made fully aware of the opportunities within the manufacturing community and is adequately trained to take advantage of them.

n Enlist the help of nonprofit organizations—You don’t have to go it alone. Nonprofit organizations like OH!Manufacturing and the Ohio MEP are working towards creating training

To learn more about career tech schools

in Central Ohio with a strong commitment

to Ohio manufacturing, please contact

OH!Manufacturing at (614) 776-5265.

and hard skills development, which are both beneficial to any company’s workforce.

n Work closely with your partners—To maximize the effectiveness of training partnerships, understand that you will most likely need to work with the institution to develop the appropriate curriculum. You’ll also need to be willing to

work with the educational center to train the students. This can take shape in many forms:

"Training"Mentoring"Internships"Participation in special projects"Career fairs"Student recruitment"Hiring of graduates

These endeavors can take place separately or in conjunction with one another. These efforts result in today’s manufacturers putting skills into the toolboxes of the workers they’ll rely on in the future to help them dream bigger and accomplish more than competitors outside of Ohio.

Workforce development in action: Spotlight on C-TECA good example of the collaborative efforts described above is the partnership between OH!Manufacturing, central Ohio manufacturers and the Career and Education Technology Centers of Licking County (C-TEC).

C-TEC is one of about 50 similar centers in Ohio, many of which have a strong commitment to manufacturing in the Buckeye State. However, C-TEC is the one of the leaders in establishing manufacturing training programs. This is largely because C-TEC has been working directly with manufacturers in Licking County for many years, understanding both the job classifications and skill sets they require in employees.

C-TEC’s emergence as a manufacturing training ground provides a great example of what the creative minds in the partnership of Ohio’s manufacturers with their local training partner have come up with to prepare for future success and growth. The Center has even developed C-TEC EDGE, a seven-week manufacturing certification program that provides the entry-level skills and national certification needed to obtain manufacturing employment in Licking County. The program requires manufacturers to work with the educational institution to develop an appropriate curriculum and then commit to hire students with the certificate. 

Programs like C-TEC EDGE connect graduates with potential employers, creating an effective pipeline from educational centers directly into the work force. Major supporting manufacturers of C-TEC EDGE such as those listed in the sidebar on the right are investing in their own community while reaping valuable benefits.  Participating companies gain access to a consistent, steady stream of pre-trained, pre-qualified, validated candidates for their workforce.

The benefits of arrangements like this are obvious, yet they do not take place unless manufacturers have connections with educational centers where young workers seek training. With these partnerships in place, manufacturers can effectively and regularly bring new talent to their organization’s roster.

These Licking County manufacturers are supporters of C-TEC EDGE and utilize the program as a source of recruitment when jobs are available

AnomaticArboris, LLCArmorSource, LLCBayer Materials ScienceConstarDow Chemical CompanyHarry & DavidHendricksonKaiser AluminumFabricated Products, LLCMeritorMomentive PerformanceOhio Metal TechnologiesOwens CorningPackaging Corp of AmericaPolymeraSamuel Strapping SystemsState Industrial ProductsThe Boeing CompanyTHK Manufacturing of AmericaUTC Aerospace Systems

About OH!Manufacturing

OH!Manufacturing helps small- and medium-size manufacturers in Central Ohio address their growth and profi tability challenges. We do this by working with manufacturers in two broad areas: enhancing product development and commercialization and improving manufacturing effi ciency and eff ectiveness. Our experience in modeling and simulation software puts the manufacturers we work with at the forefront of Ohio’s manufacturing renaissance.

From research and development to innovation management, OH!Manufacturing has experience that can be levied to help manufacturers fi nd and enter partnerships that will be extremely benefi cial to them.

For more information, or to fi nd out how we can help your organization reach its growth potential, please visit the OH! Manufacturing website at www.excellenceinmanufacturing.org or give us a call at 614-776-5265.

Some of the other ways OH!Manufacturing provides assistance includen Growing revenues,n Reducing costs,n Improving quality,n Improving customer satisfaction,n Improving speed (in all areas),

RESOURCES: [1] Sirkin, Harold L., Michael Zinser, and Justin R. August. “The US Skills Gap- Could it threaten a manufacturing renaissance?” Boston Consulting Group.[2] Sirkin, Harold L., Michael Zinser, and Justin R. August.[3] Krouse, Peter. “Help wanted: Local manufacturers have jobs they can’t fi ll because of skills gap.” cleveland.com. http://www.cleveland.com/metro/index.ssf/2013/09/skills_gap.html.[4] Path, Bill R. “Changing Perceptions, Celebrating Skills on Manufacturing Day.” Huffi ngton Post 7 Oct. 2013. Web. 17 Apr. 2014. <http://www.huffi ngtonpost.com/dr-bill-r-path/changing-perceptions-cele_b_4045104.html>.

155 Commerce Park Drive, Suite 8 Westerville, OH 43082www.excellenceinmanufacturing.org

For more information, or to fi nd out how we can help your organization

reach its growth potential, please visit the OH!Manufacturing website at

www.excellenceinmanufacturing.org or give us a call at 614-776-5265.

SummaryTop-notch companies need top-notch employees, and our state’s up and coming workforce must possess complex skill sets. The measures that PolymerOhio, OH!Manufacturing, and the companies and educational centers are enacting will empower the growth of Ohio’s manufacturing industry.

Forging relationships with training institutions to off er training that best prepares your future employees will help assure a continuing development of skilled workers. These carefully overseen partnerships will bridge the skills gap that endangers Ohio’s manufacturing prosperity and ensure that the sky remains the limit for what our industry can accomplish now and in years to come.

n Maintaining margins,n Dealing with higher costs (such as health

care), taxes, and regulations,n Increasing the pace of innovation, andn Ensuring a properly trained workforce.