INDUSTRY-DRIVEN SOLUTION TO SKILLS CRISIS IN

MANUFACTURING

Remarks by Leo ReddyChairman and CEO, Manufacturing Skill Standards CouncilNACFAM AMLF ConferenceApril 9, Crystal City VA

Permanent Feature of Competitiveness Studies, conferences

Including top billing in NACFAM proposal

Just this year: Harvard Business School, NAM Top Priorities, MAPI/Aspen Institute

Skills Gap: Can We Close It?

600,000 job openings

- for which manufacturers can not find skilled employees

Source: Deloitte/NAM-MI, 2011

Bottom Line

Most Critical Workforce Shortage: Production Workers

Deloitte & NAM MI 2011

Deep disconnect between industry demand and education supply

“Education is preparing 80% of students for 20% of the jobs”

Source: Harry Moser, President, Re-shoring Initiative

ROOT CAUSE: DISCONNECT

Elements of industry-driven solution: Standards: Industry-defined, nationally validated Instructional materials aligned with standards:

courses, textbooks, e-learning, instructor training Assessments aligned with standards: Industry-

formulated test questions, delivered on-line Credentials: Industry-recognized, nationally

portable Education Reform: Courses aligned with industry

standards, students enabled to graduate with both a degree and an industry-recognized certification

SOLUTION: ALIGN EDUCATION WITH NEEDS OF INDUSRY

Bush I: Industry standards

Clinton: National Skill Standards Act: - Industry Standards and Certifications - Industry-led “Voluntary Partnerships” (e.g. MSSC for Mfg.)

Bush II: - Standards-based Competencies Models (DOL) - Standards-based Career Pathways (DoED) - Linkage of training funds to industry- recognized credentials (DOL and DoED)

BUILDING THOSE ELEMENTS THROUGH PUBLIC-PRIVATE PARTNERSHIPS: A LONG PROCESS

Obama: - Strong focus on certification, stackability- President’s June 8, 2011 goal: Credential 500,000 - Mfg. workers in 5 years under NAM System

NAM-MI: - NAM-endorsed Skills Certification System

(Founding Partners: ACT, MSSC, NIMS, AWS, SME)

- Education reform supported by leading foundations

A LONG PROCESS – CONT’D

ALL BUILDING BLOCKSOF AN INDUSTRY-DRIVEN

SOLUTIONARE NOW IN PLACE

BREAKING NEWS!

NATIONWIDE CAMPAIGN TO ACCELERATE DEPLOYMENT OF

INDUSTRY-RECOGNIZED, NATIONALLY PORTABLE

CREDENTIALS

WHAT NEXT?

INDUSTRY: Require certifications; make centerpiece of recruitment policies; communicate to state governments

EDUCATION: Help students secure industry credentials thru for-credit courses

FEDERAL: Link federal workforce training funds to industry-recognized, nationally portable certifications. Pass America Works Act.

WHO?

Regular Education System: Students, Parents, Pell Grants, GI Bill, Tuition Reimbursement

Federal Programs: DOL/ETA, DoED/ OVAE, DoD, VA, NSF/ATE

State Programs: CTE Course emphasis, dual credit HS/CC arrangements, Workforce Investment Boards, incumbent training support programs

WHO PAYS