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MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT September 2012

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Page 1: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

September 2012

Page 2: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

BACKGROUND - OVERALL

2

The Northern Kentucky Industrial Park Association (NKIP) is leading the development of a strategic plan to meet the employment needs of Northern Kentucky manufacturers. At a time when manufacturing jobs are coming back to the U.S., Northern Kentucky and other manufacturers across the nation face the critical issue of a workforce that has a declining interest in pursuing manufacturing careers There are two critical objectives of this research that will be used in the development of a strategic plan, and, ultimately, to build support for overcoming this critical challenge.

1. Workforce Needs: Identify and project the needs of manufacturers in Northern Kentucky

2. Pipeline Development: Understand perceptions and attitudes toward

employment in the manufacturing sector Two unique studies were developed to answer these objectives, and results are presented on the following pages.

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EXECUTIVE SUMMARY

SEC

TIO

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EXECUTIVE SUMMARY: OVERVIEW The manufacturing industry has an important place in U.S. history, the economy, and the future. The same is true, although the impact may be greater, as you zoom into the Northern Kentucky region where a host of companies have established and invested in significant manufacturing operations. For the public, it’s an industry that goes unnoticed, even as droves of people in the tri-state continue to look for jobs. For the manufacturing employers in Northern Kentucky, it’s a struggle to explain why there are approximately 680 manufacturing job openings today let alone fill them. This gap has slowly worsened over the years, especially now with many positions facing significant workforce loses due to retirements. This research report identifies and describes just how extreme the existing gap is between the workforce need and the future employee pipeline, how it could worsen without immediate attention, as well as a number of considerations for strategic planning. First, to summarize the findings from this research, we look at the two diverging paths between workforce need and the pipeline.

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5

EXECUTIVE SUMMARY: WORKFORCE Manufacturers expect growth in most areas over the next 10 years. The greatest increase in hiring is

expected in the next 12 months with nearly 1200 expected openings; but finding qualified candidates remains a problem and concern.

Across all functional areas, nearly three-fifths of anticipated job openings are a result of attrition and retirement, with the remaining percentage attributed to growth.

The greatest number of job openings is expected for Manufacturing Technicians, an area that currently employs the largest number of workers. Other high demand skilled positions include machine maintenance specialists, electronic technicians, welders, and both process and design engineers.

With 680 jobs currently available today, employer estimates of workforce need demonstrates an impressive growth curve over the next one, three, five, and ten years – see chart to the right.

Employers are clearly experiencing the difficulties that come with this challenge, and they are ready to find a solution. With nearly 9 in 10 new applicants needing additional training, and planned increases in training (47%) and recruiting budgets (36%) by many employers, they are showing their willingness to be a part of the solution.

0

1000

2000

3000

4000

5000

6000

7000

Today 1yr 3yr 5yr 10yr

Workforce Need

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6

EXECUTIVE SUMMARY: PIPELINE For all targeted audiences – including high school students, parents, teachers, and displaced workers –

today’s manufacturing is commonly misunderstood. This is mostly due to two key perceptual barriers: 1) all manufacturing jobs are considered to be boring “assembly line” jobs, stemming from old perceptions of the industry, and; 2) an increased attention toward outsourcing has created beliefs that the industry is dying and that it only consist of low-paying, monotonous jobs.

The problem goes beyond misperception, however. All audiences largely ignore manufacturing careers and opportunities. This problem exists because of the misperception, the lack of information being provided to them about the industry, and, for students and parents especially, there is a cultural shift toward higher education as an expected/desired path.

When talking with the potential employees for manufacturing’s future, there were common characteristics about what they wanted in their careers. Nearly all spoke of security and pay as critical factors, but another important yet softer level emerged. This level included factors such as making a difference, contributing to the world, working with successful teams, and other people-centered ideals.

Schools are considered a hub for career information and guidance. However, teachers and counselors alike feel strained with existing responsibilities; and, they receive significant contact from higher education institutes asking them to drive students toward their organization.

Displaced workers feel unfulfilled and frustrated with their situation. While they’re open to new opportunities and change, their sense of hope seems empty and they are holding onto securities in existing jobs. Most are not likely to pursue additional training or certification for manufacturing jobs without a promised job from an employer and/or tuition reimbursement. Many were accepting of a train-while-working concept.

Page 7: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

EXECUTIVE SUMMARY: CONSIDERATIONS Using the findings from both of the research studies and numerous discussions with the client/project team, a clear definition of the problem is visible and boils down to this: A significant number of jobs – both from attrition, retirement, and growth – are available now (and in the future), and the pipeline of interested and qualified candidates must be filled at a faster rate to meet the needs of Northern Kentucky manufacturing employers.

The first part of this equation must deal with building interest. The infrastructure of educational programming and the willingness of employers to train new hires already exist. While improvements in training and coordination between educational institutes and corporations must continue to be a focus, both entities (plus government) need to take stake in generating more interest in the field.

A significant part of strategy development should include clear and concise messaging to be distributed to and easily referenced by all stakeholders in building interest and consideration for

careers in the manufacturing industry. This may include key information/visuals on PowerPoint slides, brochures, and an annual meeting to communicate the key messages and how they came to be. Empower stakeholder groups to communicate these key points by placing the information in their hands and making it as easy as possible.

Communications efforts must address the various groups and influencers involved (media, employers, educators), and key messages should aim to be consistent across all platforms – new and traditional media, classroom visits, site visits, etc. In other words, messaging to employers, educators, parents, and students, while they may be unique in style, should clearly deliver no more than three key positions for the manufacturing industry.

Grab attention and earn interest

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8

EXECUTIVE SUMMARY: CONSIDERATIONS A messaging strategy will address these topics:

- The change/advancement of the industry from being dirty assembly lines to that of cleaner, more advanced technological operations

- The stability of the industry and the promise that it’s a legitimate career choice for the long-term

- An emotional and aspirational message that communicates purpose for the individual seeking a career. Provide the “why” of what makes manufacturing an important part of today’s society, and how it adds meaning

- Minimize conversations about outsourced jobs coming back to the U.S. This is poorly perceived by pipeline candidates and only further contributes to bad perceptions about manufacturing.

- Provide standard information about the industry – average pay, types of jobs, daily activities, etc.

In order to fill immediate job openings, consider leveraging the knowledge and numbers of existing workforce for outreach. This includes management talking to targeted groups (i.e. student groups or job search groups), but more importantly, it means engaging all levels of employees and asking them to help address the challenge by talking with their friends, family, and neighbors about careers in manufacturing. This effort will require significant and careful planning, as with any other communications plan; the difference being that the audience is available, ready to listen, and already a knowledgeable advocate (theoretically) for the industry. Incentive and referral programs may also be a part of this approach.

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WORKFORCE SURVEY

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METHODOLOGY

10

• An in-depth survey was developed in collaboration with NKIP project leaders.

• There were two components to the survey –

1. Questionnaire: To assess attitudes and existing efforts toward the workforce challenge. This survey was administered face-to-face.

2. Pre-survey packet: To identify specific workforce personnel challenges and needs. This portion of the survey was sent in advance of the scheduled face-to-face meeting for the employer to carefully prepare workforce estimates and to consult with their team.

• Participants were recruited from a define universe of qualified manufacturers. The universe consisted of 123 companies representing 17, 200 employees. The most senior HR person was targeted and recruited for participation.

• Interviewers consisted of key delegates from Tri-Ed, NKY Chamber, and AME Consortium.

• Recruiting and interviewing were conducted between June 12 and September 14, 2012.

Page 11: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

WHO WAS SURVEYED?

11

Diverse and representative sample – by company size and industry

39 employers participated, representing one-third of the population

Half of the top 30 manufacturing employers in NKY 50%

Represents more than half of manufacturing employees 55%

33%

Page 12: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

NUMBER OF FULL-TIME EMPLOYEES

5%

14%

19%

22%

27%

14%

10 or Less

10-49

50-99

100-249

250-499

500 or More

Size

12

What is the total number of full-time employees in your company in the Northern Kentucky area?

Subsectors

Machinery Manufacturing

Automotive Parts

Fabricated Metal Products

Printing and Related Support Activities

Food Manufacturing

Plastic and Rubber Products

Chemical Manufacturing

Electrical Equipment, Appliance and Component Manufacturing

Primary Metal Manufacturing

Page 13: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

Confidential & Proprietary

FINDINGS: Workforce Needs

Page 14: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

14

OVERVIEW & SUMMARY

Manufacturers expect employee growth in most areas over the next 10 years. The greatest increase in hiring is expected within the next 12 months, but finding qualified candidates is a problem.

Across all functional areas, nearly three-fifths of anticipated job openings are a result of attrition and retirement, with the remaining percentage attributed to growth.

The greatest number of job openings is expected for Manufacturing Technicians, an area that currently employs the largest number of workers.

Page 15: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

No Change, 17%

Some Increase,

64%

Large Increase, 19%

Large Reduction

Small Reduction

No Change

Some Increase

Large Increase

Which of the following best represents your company’s hiring expectation for production and technical positions in 2012?

A MAJORITY EXPECT AT LEAST SOME INCREASE IN HIRING OF PRODUCTION AND TECHNICAL POSITIONS

15

0%

Page 16: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

IN 3 YEARS, THE WORKFORCE IS EXPECTED TO HAVE A HIGHER SHARE OF HIGHLY SKILLED WORKERS.

16

Current In 3 Years Change

Highly Skilled 26% 28% 2.8

Skilled 49% 47% -1.4

Unskilled 25% 21% -3.7

Page 17: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

47%

3%

50%

Training

Increase Decrease Stay the Same

36%

14%

50%

Recruiting

Increase Decrease Stay the Same

Compared to calendar year 2011, will your 2012 workforce budget increase, decrease, or remain the same?

HALF EXPECT NO CHANGE IN RECRUITING AND TRAINING BUDGETS, THOUGH MANY DO EXPECT INCREASES

17

Page 18: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

Unfilled jobs due to lack of skilled candidates (per employer)

5.6

18

TODAY’S VACANCIES

Unfilled jobs today due to a lack of skilled candidates

680+

Page 19: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

TOP FIVE ORGANIZATIONAL DIFFICULTIES DUE TO WORKFORCE SHORTAGES (national comparisons included)

16%

35%

32%

51%

n/a

44%

50%

56%

56%

NKY 61%

Achieving or maintaining target levels of customer service and satisfaction

Maintaining quality levels consistent with customer requirements

Achieving productivity targets

Maintaining production levels consistent with customer demand

Expanding current production capacity

Has your company experienced difficulty in the following operational areas due to workforce shortages or employee skill deficiencies?

19

National

National comparisons to “The Skills Gap in Manufacturing.” Conducted by Deloitte and The Manufacturing. September 2011

Page 20: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

OTHER ORGANIZATIONAL DIFFICULTIES DUE TO SHORTAGES (national comparisons included)

17%

24%

27%

13%

National 20%

17%

11%

22%

25%

31%

NKY 42%

New product production lines

Effective sales and marketing

Implementing new technology

New product development and innovation

Effective supply chain planning and management

Implementing quality improvement processes

Has your company experienced difficulty in the following operational areas due to workforce shortages or employee skill deficiencies?

20 National comparisons to “The Skills Gap in Manufacturing.” Conducted by Deloitte and The Manufacturing. September 2011

Page 21: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

47%

31%

22%

0%

Very Frequently Somewhat Frequently

Not Too Frequently

Not At All

How frequently does your organization fill jobs with candidates that require a significant amount of additional training?

APPLICANTS REQUIRING ADDITIONAL AND SIGNIFICANT AMOUNTS OF TRAINING IS A CONSTANT ISSUE

21

CATEGORIES

Machine Operations

Maintenance

Quality

Mechanics

Engineering

Lean Training

On average 87% of applicants typically require additional training

What percent of applicants typically require additional training?

Page 22: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

33%

11% 17% 8% 6%

36%

39% 31%

19% 11%

Skilled production (machinists,

operators, craft workers,

technicians)

Production support (industrial

engineers, manufacturing

engineers, planners, etc.)

Supervision or team leadership

Scientists and design engineers

Unskilled production

Some A Lot

69%

17% 27%

50% 48%

How much impact will an aging workforce and anticipated retirements have on each of the following areas?

SKILLED PRODUCTION, PRODUCTION SUPPORT AND LEADERSHIP ARE EXPECTED TO SEE THE GREATEST IMPACT FROM RETIREMENTS

22

Page 23: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

53%

61%

75%

89%

94%

94%

Outsourcing of some functions

Focused recruiting on particular workforce segments

External training and certification programs

Use of contingent labor, such as staffing agencies

Use of overtime

Internal employee training and development programs

Has your company used any of the following methods to fill or reduce existing skill gaps in the past year?

TOP METHODS TO FILL OR REDUCE SKILL GAPS

23

Page 24: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

THERE IS HIGH CONFIDENCE IN CURRENT WORKFORCE, YET LOW CONFIDENCE IN REPLACEMENTS

Our technical workforce currently has the knowledge, skills and abilities for us to be successful.

When we need to fill a technical position, we can quickly and easily find the individual with the

technical knowledge, skills and abilities that we need

88% agree

80% disagree

How much do you agree or disagree with the following statement…?

Strongly agree, 19%; Somewhat agree, 69%; Somewhat disagree, 8%; Strongly disagree, 3%

Strongly agree, 44%; Somewhat agree, 36%; Somewhat disagree, 8%; Strongly disagree, 11%

Page 25: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

8%

28%

31%

31%

31%

53%

22%

31%

17%

42%

47%

22%

Inadequate computer skills

Inadequate reading, writing, communication skills

Inadequate math skills

Inadequate problem-solving skills

Lack of basic technical training (degree, industry certification or vocational training)

Inadequate basic employability skills (attendance timeliness, work ethic, etc.)

A significant or major problem A moderate problem

BASIC EMPLOYABILITY SKILLS ARE A CRITICAL DEFICIENCY

25

How critical are the following skill deficiencies among job candidates?

Page 26: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

67%

69%

72%

72%

78%

86%

Apprenticeships

Job shadowing

Professional development or externships to high school teachers

Internships

Visit high school classrooms

Facility tours

26

Would you be willing to help with any of the following activities to attract students to careers in advanced manufacturing?

WILLINGNESS TO PARTICIPATE IN RECRUITING EFFORTS IS HIGH

Other mentions: Presenting to various groups, college co-ops, apprenticeships to current employees, professional development for guidance counselors

Page 27: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

27

ESTIMATED WORKFORCE NEED IN THREE YEARS

more than

2,500 jobs

Replacements 6%

Workforce Growth 9%

TOTAL WORKFORCE EXPANSION

15%

In total, over the next three years…

In total, about how many people in your manufacturing workforce will need to be replaced over the next five years due to retirements?

In total, about how many new positions due to growth or expansion (not replacements or retirements) will need to be filled in your manufacturing workforce over the next five years?

Page 28: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

28

CRITICAL SKILLED POSITIONS NEEDED – 10 years

In the next 10 years…

6,250 jobs

in these highly technical careers will need to be

filled.

Manufacturing Technicians

Electronic Technicians and Repairers

Industrial Electrician

Machine Maintenance Specialist

Machine Tool Operators (CNC & Conventional)

Machinist (CNC & Conventional)

Welders (MIG - Steel and Aluminum; TIG - Steel and Aluminum)

Finisher

CAD - Drafter

CNC Press Brake Set-up and Operator

Metal Fabricator/Mechanic

Hydraulic / Pneumatic Technicians

Engineering Technician

Engineer - Process/Manufacturing

Engineer - Design

Applications Engineer

Page 29: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

DEMAND LEVEL TITLE GROWTH ESTIMATE

High Demand

Manufacturing Technicians Machine Maintenance Specialist Electronic Technician and Repairer Welders Engineer-Process/Manufacturing Engineer-Design

2671 695 532 453 326 330

10 YEAR PROJECTED GROWTH BY POSITION

29

Some Demand

Machinists Machine Tool Operator Industrial Electricians Applications Engineer

281 260 180 120

Near Stable

Metal Fabricators Engineering Technician CNC Press Brake Set-Up and Operators CAD Drafters Finishers Hydraulic Pneumatic

96 94 71 53 49 38

Note: There is no statistical significance between the demand breaks. Breaks were assigned to show priority.

Page 30: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

CORE COMPETENCIES NEEDED ACROSS ALL CRITICAL SKILLED POSITIONS

30

66%

13%

13%

25%

32%

35%

36%

40%

Other

CAD skills

CNC Programming

Machine maintenance

Process and machine troubleshooting

Precision measurement

Use of diagnostic tools

Problem solving

Page 31: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

Confidential & Proprietary

Analysis by Position

Page 32: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

MANUFACTURING TECHNICIANS

32

Job Description: Operate precision machinery, systems, and processes. The Manufacturing Technician generally describes someone who has enough broad-based knowledge about multi-step process to successfully trouble-shoot and cure problems beyond the scope of typical “machine operators”. These positions may describe someone charged with developing/refining prototype fabrication method for new products.

Sample of Job Titles: Operators, Production Operator, Production Technician, Technician, Chemical Equipment Operator, Chemical Operator, Fixers, CNC Technician, Manufacturing Technician, and Production Manufacturing Specialists

NOTE: This is a newly defined position intended to be applicable to those jobs where a more general skill set is required than with other specifically identified conventional skilled trades. These are multi-craft and multi-skilled positions that reflect the transformation of the less skilled “operator” jobs of yesterday. The intent is for this description to capture jobs that do not meet the generally accepted traditional definition of “skilled trades” (and associated transferable apprenticeship), but are equally valuable to the enterprise, require education and training beyond the high school level, at least six (6) months of training. These are NOT basic operator positions charged with “leading” a production line, machine or process”.

516

1045

1718

2671

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

9%

23%

60%

80%

69%

51%

60%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 13%

A & R 9%

Growth 4%

3 Years

% Increase - TOTAL 13%

A & R 9%

Growth 4%

5 Years

% Increase - TOTAL 17%

A & R 11%

Growth 5%

10 Years

% Increase - TOTAL 24%

A & R 14%

Growth 9%

Page 33: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

MACHINE MAINTENANCE SPECIALISTS

33

Job Description: Repair, install, adjust, lubricate and maintain Industrial production and processing machinery or refinery and pipeline distribution systems. Diagnose machine performance problems. Sample of Job Titles: Building Maintenance Mechanic, Engineering Technician, Equipment Engineering Technician, Industrial Electrician, Industrial Machinery Mechanic, Industrial Maintenance Millwright, Machine Repairer, Maintenance Mechanic, Maintenance Technician, Master Mechanic, and Over-hauler.

174

297

462

695

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

0%

23%

66%

83%

83%

86%

74%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 16%

A & R 9%

Growth 7%

3 Years

% Increase - TOTAL 11%

A & R 8%

Growth 3%

5 Years

% Increase - TOTAL 15%

A & R 10%

Growth 5%

10 Years

% Increase - TOTAL 21%

A & R 16%

Growth 5%

Page 34: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

ELECTRONIC TECHNICIANS AND REPAIRERS

34

Job Description: Troubleshoot, diagnose and repair electronic machine control equipment. Tests and modify electrical machinery, electrical-controlled equipment, and circuitry in industrial plants and laboratories. Repair, test, adjust, and install electronic equipment, such as industrial controls, transmitters, and antennas.

Sample of Job Titles: Control Technician, Electrical Design Technician, Electronics Technician, Electronics Maintenance, Electronics Mechanic, Electronics Assistant, Engineering Technician, Equipment Engineering Technician, Industrial Electrician, Instrument and Electrical Technician, Machine Control Technician, and Test Technician.

63

176

331

532

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

3%

17%

43%

66%

57%

51%

66%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 15%

A & R 7%

Growth 8%

3 Years

% Increase - TOTAL 27%

A & R 14%

Growth 12%

5 Years

% Increase - TOTAL 37%

A & R 17%

Growth 20%

10 Years

% Increase - TOTAL 48%

A & R 26%

Growth 21%

Page 35: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

WELDERS – MIG & TIG (Steel/Aluminum)

35

Job Description: Use programmed automatic hand-held or flame equipment to weld or join metal components or to fill holes, indentions, or seams of fabricated metal products. Set-up, operates, or tend welding, flame-cutting, plasma cutting, or brazing machines or robots. Braze components to assemble fabricated metal parts. Welding consists of MIG, STIC, TIG both steel and aluminum. Sample of Job Titles: Brazer, Connector, Fabricator, Maintenance Welder, MIG Welder, TIG Welder, Sheet Metal Mechanic, Sub Arc Operator, Welder, and Welder-Filler.

% Increase in Current Workforce

1 Year

% Increase – TOTAL

A & R

Growth

3 Years

% Increase – TOTAL

A & R

Growth

5 Years

% Increase – TOTAL

A & R

Growth

10 Years

% Increase – TOTAL

A & R

Growth

19%

19%

0%

19%

19%

0%

19%

19%

0%

69%

69%

0%

32%

16%

16%

37%

16%

21%

32%

16%

16%

79%

68%

11%

17%

8%

8%

29%

13%

17%

46%

17%

29%

46%

21%

25%

33%

12%

21%

47%

25%

21%

31%

18%

13%

42%

24%

18%

MIG-Steel MIG-Alum. TIG-Steel TIG-Alum.

3%

0%

29%

23%

14%

17%

17%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

Page 36: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

WELDERS – MIG & TIG (Steel/Aluminum)

36

63

154 214

295

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

11

24 34

62

1yr 3yr 5yr 10yr

5 11

16

36

1yr 3yr 5yr 10yr

7

20

40

60

1yr 3yr 5yr 10yr

MIG-Steel MIG-Alum.

TIG-Steel TIG-Alum.

No anticipated growth

Page 37: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

ENGINEERS – PROCESS/MANUFACTURING

37

Job Description: They may be involved in process manufacturing, or discrete manufacturing. Manufacturing engineers plan, design, set up and optimize a manufacturing process, whatever the industry. They are responsible for designing efficiency, cost-effectiveness, environmental and safety controls into a process. Lean manufacturing principles, for example, would be a discipline of a process/manufacturing engineer. The engineer may also design equipment, install control systems, upgrade the processes and factor in environmental and health protection. Sample of Job Titles: Manufacturing Engineer, Manufacturing Director, Manufacturing Engineering Manager, Process Engineer, Facility Engineer, Plant Engineer, Manufacturing Production Manager

47

114

199

326

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

34%

20%

66%

71%

57%

29%

60%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 15%

A & R 7%

Growth 8%

3 Years

% Increase - TOTAL 21%

A & R 13%

Growth 9%

5 Years

% Increase - TOTAL 27%

A & R 17%

Growth 10%

10 Years

% Increase - TOTAL 40%

A & R 29%

Growth 11%

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ENGINEERS – DESIGN

38

Job Description: Research and develop ideas for product revisions along with new products and production systems, as well as improves the performance and efficiency of existing products. Typical duties include research, design, testing, design modifications, project management, reporting, and environmental assessments. Sample of Job Titles: Design Engineer, Mechanical Design Engineer, Electrical Design Engineer

47

127

205

330

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

46%

11%

46%

54%

34%

14%

46%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 14%

A & R 7%

Growth 8%

3 Years

% Increase - TOTAL 24%

A & R 12%

Growth 12%

5 Years

% Increase - TOTAL 24%

A & R 12%

Growth 12%

10 Years

% Increase - TOTAL 38%

A & R 24%

Growth 14%

Page 39: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

(CNC & CONVENTIONAL) MACHINISTS

39

Job Description: In addition to the work performed by “Machine Tool Operators” (repair, install, adjust, lubricate, and maintain industrial production and processing machinery or refinery and pipeline distribution systems & diagnose machine performance problems). Machinists in this classification setup and/or operate a variety of machine tools to produce precision parts. Edit CNC programs to optimize performance; change and adjust parameters and tooling as needed to meet dimensional and output requirements. Problem-solving machining issues when performance is not satisfactory. Sample of Job Titles: CNC Machinist, Machinist, Machinist – Tool and Die, CNC Technician, and Setup Machinist.

47

118

192

281

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

6%

37%

40%

34%

34%

34%

34%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 10%

A & R 3%

Growth 7%

3 Years

% Increase - TOTAL 14%

A & R 6%

Growth 9%

5 Years

% Increase - TOTAL 15%

A & R 9%

Growth 6%

10 Years

% Increase - TOTAL 18%

A & R 10%

Growth 8%

Page 40: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

(CNC & CONVENTIONAL) MACHINE TOOL OPERATORS

40

Job Description: After machines are programmed or set-up by others, operate, or tend machines to cut, drill, bore, grind, mill, plane, polish, ream, saw, sharpen, thread, or turn, metal or plastic. Operate computer-controlled machine tools or robots. Perform quality checks to insure conformance to specifications. Sample of Job Titles: Bore Mill Operator, Cell Operator, Cell Technicians, Centerless Grinder Operator, Die Maintenance Technician, Die Repairman, Drill Operator, Drill Press Operator, Drill Set-up Operator, Grinder, Grinder Operator, Lathe Operator, Machine Technician, Radial Drill Operator, Saw Operator, Screw Machine Operator, CNC Drilling Operator, CNC Lathe Operator, CNC Machine Operator, CNC Machinist, CNC Mill Operator, Machine Operator, and Production Machinist.

81

141

186

259

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirment

Growth

3%

20%

34%

26%

20%

17%

17%

66%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

Other

% Increase in Current Workforce

1 Year

% Increase - TOTAL 17%

A & R 12%

Growth 4%

3 Years

% Increase - TOTAL 12%

A & R 6%

Growth 6%

5 Years

% Increase - TOTAL 9%

A & R 4%

Growth 5%

10 Years

% Increase - TOTAL 15%

A & R 6%

Growth 9%

NOTE: the “Other” category was most commonly mentioned and needs additional exploration to define core competencies

Page 41: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

INDUSTRIAL ELECTRICIANS

41

Job Description: Install, maintain, and repair electrical wiring, equipment, and fixtures in a manufacturing plan. Ensure work is in accordance with relevant codes. May install electrical control systems. Sample of Job Titles: Electricians, Industrial Electricians, Journeyman Electrician, and Maintenance Electrician.

31

76

116

179

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

0%

6%

29%

37%

34%

37%

77%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 18%

A & R 13%

Growth 5%

3 Years

% Increase - TOTAL 26%

A & R 15%

Growth 11%

5 Years

% Increase - TOTAL 23%

A & R 19%

Growth 4%

10 Years

% Increase - TOTAL 36%

A & R 25%

Growth 11%

Page 42: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

APPLICATIONS ENGINEERS

42

Job Description: Involved in planning, designing, and coordinating the integration of machinery and equipment into the manufacturing process. Engineering analysis and design of machinery, in addition to the original design, implementation, project coordination, and complex engineering analysis on subsystems. Develops and writes equipment specification and performance requirements, as well as coordinate all aspects of a job including tool design, fixture design, numerical control part programming, machine delivery, prove-out, and runoff of a customer's part. Sample of Job Titles: Applications Engineer, Applications Engineering Manager

16

45

74

119

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

34%

20%

34%

37%

26%

14%

37%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 15%

A & R 5%

Growth 10%

3 Years

% Increase - TOTAL 27%

A & R 7%

Growth 20%

5 Years

% Increase - TOTAL 27%

A & R 12%

Growth 15%

10 Years

% Increase - TOTAL 42%

A & R 19%

Growth 24%

Page 43: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

METAL FABRICATORS/SHEET METAL MECHANICS

43

Job Description: A metal fabricator/mechanic is capable of laying out and producing a top quality sheet metal fabrication with only dimensioned concept drawings (including expectations of the finished product). They use hand tools and various welding equipment required for the task. Is versed in all types of measuring instruments including but not limited to calipers, veneers, compasses, dividers, squares, levels, and protractors, they have a working knowledge of trigonometry, as well as welding, and various machine operations, shearing, press brakes, punching machines, plasma cutters, and cutting torches, as well as additional sheet metal fabrication tools . Sample of Job Titles: Sheet Metal Fabricator; Sheet Metal Fabricator; Metal Fabricator

14

42

63

96

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

0%

6%

20%

14%

14%

9%

11%

86%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

Other

% Increase in Current Workforce

1 Year

% Increase - TOTAL 27%

A & R 13%

Growth 13%

3 Years

% Increase - TOTAL 50%

A & R 13%

Growth 37%

5 Years

% Increase - TOTAL 40%

A & R 17%

Growth 23%

10 Years

% Increase - TOTAL 60%

A & R 43%

Growth 17%

NOTE: the “Other” category was most commonly mentioned and needs additional exploration to define core competencies

Page 44: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

ENGINEERING TECHNICIANS

44

Job Description: An engineering technician is responsible for solving technical application oriented problems. In other words, the technician makes sure things, such as circuits or transportation systems work. To qualify for an engineering technician job, individuals need an associate degree or engineering technology training at a postsecondary institution. Sample of Job Titles: Engineering Technician, Mechanical Designer, Research and Development Technician, Engineering Lab Technician, Equipment Engineer, Process Technician, Lab Technician, Engineering Technical Analyst

11

31

67

94

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

17%

14%

34%

40%

31%

11%

29%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 16%

A & R 8%

Growth 8%

3 Years

% Increase - TOTAL 30%

A & R 16%

Growth 14%

5 Years

% Increase - TOTAL 54%

A & R 14%

Growth 41%

10 Years

% Increase - TOTAL 41%

A & R 11%

Growth 30%

Page 45: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

CNC PRESS BRAKE SET-UP & OPERATORS

45

Job Description: This position requires the employee to be able to select the correct tooling to produce the product requirement for specific part configuration, having an understanding of angles, dimensions, blue print reading, math skills, and troubleshooting as it relates to a particular part. Have an understanding of the reaction of material to bending and the principals involved with metal forming. Sample of Job Titles: Press Brake Operator; Machine Operator; CNC Operator; CNC Machinist

18

34

53

71

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

0%

3%

14%

11%

11%

3%

11%

91%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

Other

% Increase in Current Workforce

1 Year

% Increase - TOTAL 42%

A & R 13%

Growth 29%

3 Years

% Increase - TOTAL 38%

A & R 17%

Growth 21%

5 Years

% Increase - TOTAL 42%

A & R 17%

Growth 25%

10 Years

% Increase - TOTAL 42%

A & R 25%

Growth 17%

NOTE: the “Other” category was most commonly mentioned and needs additional exploration to define core competencies

Page 46: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

CAD – DRAFTERS

46

Job Description: Uses software to create design plans for buildings and machinery. May work in 2D design, which is known as surface modeling, or 3D design, solid modeling. Sample of Job Titles: CAD Drafter, Computer Aided Design Drafter, Mechanical Drafter, Architectural Drafter, Drafter

9

22

33

53

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

45%

11%

29%

43%

14%

57%

20%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

% Increase in Current Workforce

1 Year

% Increase - TOTAL 12%

A & R 7%

Growth 5%

3 Years

% Increase - TOTAL 16%

A & R 9%

Growth 7%

5 Years

% Increase - TOTAL 14%

A & R 7%

Growth 7%

10 Years

% Increase - TOTAL 26%

A & R 14%

Growth 12%

Page 47: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

FINISHERS

47

Job Description: Finishes steel and aluminum by grinding and polishing the weld joint. This is accomplished by various grinding materials. These tasks are to be completed using hand held finishing tools. Sample of Job Titles: Grinder, Finisher, Polisher, Welder/Finisher

11

24

34

49

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

0%

0%

11%

11%

3%

3%

6%

91%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

Other

% Increase in Current Workforce

1 Year

% Increase - TOTAL 15%

A & R 0%

Growth 15%

3 Years

% Increase - TOTAL 18%

A & R 3%

Growth 15%

5 Years

% Increase - TOTAL 15%

A & R 3%

Growth 13%

10 Years

% Increase - TOTAL 21%

A & R 10%

Growth 10%

NOTE: the “Other” category was most commonly mentioned and needs additional exploration to define core competencies

Page 48: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

HYDRAULIC /PNEUMATIC TECHNICIANS

48

Job Description: Hydraulic and pneumatic technicians maintain and repair equipment and machines that use pressurized fluids to carry power from one place to another. Hydraulic and pneumatic systems are two types of fluid power systems. Hydraulic systems use “wet” fluids, such as oil and water. Pneumatic systems use “dry” fluids, such as pressurized air or other gases. Hydraulic and pneumatic technicians work in factories, laboratories, and offices. Technicians might help engineers to design, test, and install a fluid power system for a one of a kind machine that is used to bolt fenders on automobiles. Others may work on fluid power equipment used in such products as trucks, airplanes, and automatic doors. Sample of Job Titles: Hydraulic Technician, Pneumatic Technician, Fluid Power Engineering Technician, Fluid Power Certified Specialist

5

14

25

38

1yr 3yr 5yr 10yr

Jobs

Attrition & Retirement

Growth

3%

0%

11%

11%

9%

11%

9%

91%

CAD Skills

CNC Programming

Precision measurment

Problem Solving

Process and machine …

Machine Maintenance

Use of diagnostic tools

Other

% Increase in Current Workforce

1 Year

% Increase - TOTAL 10%

A & R 7%

Growth 3%

3 Years

% Increase - TOTAL 17%

A & R 10%

Growth 7%

5 Years

% Increase - TOTAL 20%

A & R 13%

Growth 7%

10 Years

% Increase - TOTAL 23%

A & R 20%

Growth 3%

NOTE: the “Other” category was most commonly mentioned and needs additional exploration to define core competencies

Page 49: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

Confidential & Proprietary

Hiring Practices

Page 50: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

SOURCES FOR FINDING CANDIDATES FOR PRODUCTION/ TECHNICAL JOBS

Sources Total Primary Source Other Sources

Web Sites (Monster, Career Builder, etc.) 26 8 18

Temporary Agencies 18 11 7

Employee Referrals 18 3 15

Newspaper/Classified Ads 13 2 11

Job Fairs 8 0 8

Ky. Employment Services/One Stop 8 1 7

Community College/ Technical/Vocational Schools

7 1 6

Word of Mouth 6 1 5

Recruiters/Headhunters 5 1 4

Other sources receiving multiple mentions include: Walk-Ins, Internal Candidates, Other Company’s Employees, Trade Publications, Company Web Site, Veterans and Co-op Programs

50

What is your primary source for finding candidates for production/technical jobs?

Page 51: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

TECHNICAL / SALARY PERSONNEL PRODUCTION PERSONNEL

Yes 84% 86%

No 16% 14%

Do you have a tuition reimbursement program for…?

A LARGE MAJORITY OF EMPLOYERS ALREADY PROVIDE SOME FORM OF TUITION REIMBURSEMENT PROGRAMS FOR EMPLOYEES

51

Page 52: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

TOPIC MEAN PERCENTAGE

What percentage of the employees that you hire is fully qualified in the position for which they are hired?

46%

Of the employees that you hire, what percentage do you train internally with specialized technical training to prepare them for the position in which they were hired?

78%

ONLY HALF OF NEW HIRES ARE FULLY QUALIFIED, AND NEARLY 8 IN 10 NEW HIRES REQUIRE ADDITIONAL INTERNAL TRAINING

52

Page 53: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

AREA OF CONCERN # OF TIMES MENTIONED

Finding skilled candidates 23

Work Ethic 6

Problem-solving skills 5

Teamwork skills 4

Mechanical skills/aptitude 3

Employee retention 3

Math skills 2

Engineers 2

Other (single mentions): Aging workforce, Interpersonal skills, Communication skills, Drug issues, Reliable employees, Lack of Co-ops, Willingness to work 2nd and 3rd shifts, Other specific skills (tool and die, computer, maintenance, safety, press operators, lean skills)

What are your greatest areas of concern about your future hiring needs?

EMPLOYER HIRING CONCERNS

53

Page 54: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

Confidential & Proprietary

Workforce Organization and Management

Page 55: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

NUMBER OF PART-TIME EMPLOYEES

97%

3% 0%

10 or Less 10-49 50 or more

55

What is the total number of part-time employees in your company in the Northern Kentucky area?

Page 56: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

NUMBER OF TEMPORARY/CONTRACT EMPLOYEES

58%

19%

11%

6% 3% 3%

10 or Less 10-49 50-99 100-249 250-499 500 or More

56

What is the total number of temporary or contracted employees in your company in the Northern Kentucky area?

Page 57: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

NUMBER OF EXPATRIATE EMPLOYEES

63%

24%

6% 6%

0 10 or Less 10-49 50 or More

57

What is the total number of expatriate employees in your company in the Northern Kentucky area?

What is an expatriate? In its broadest sense, an expatriate is any person living in a different country from where he or she is a citizen. In common usage, the term is often used in the context of professionals /employees sent abroad by their companies, as opposed to locally hired staff.

Page 58: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

11%

89%

Yes

No

Are any of your employees a part of the union?

THE MAJORITY OF EMPLOYEES ARE NON-UNION

58

Page 59: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

50%

3%

47% No Foreign Ownership

Part Foreign-Owned

Fully Foreign-Owned

How much of your company, if any, is foreign owned?

HALF OF THE COMPANIES INTERVIEWED WERE FULLY OR PARTIALLY FOREIGN-OWNED

59

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PIPELINE ASSESSMENT

SEC

TIO

N 3

Page 61: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

BACKGROUND & RESEARCH OBJECTIVES • A series of focus groups were commissioned in order to better understand the

pipeline challenge.

• A total of six groups were conducted during the first week of June 2012 over a three day period.

• The objectives of this research effort were to:

Understand current perceptions and attitudes toward manufacturing among targeted audiences so efforts can be made to fill the gaps between available jobs and employees.

Understand why manufacturing is not a commonly pursued career.

Identify messages that can create positive impressions about manufacturing careers.

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METHODOLOGY

62

Six focus groups were conducted with targeted respondents representing four different audiences (high school students, parents of high school students, educators, and displaced workers). Group 1 & 2 June 4, 2012 High School Students 6:00/8:00 p.m. Group 3 & 4 June 5, 2012 Parents 6:00/8:00 p.m. Group 5 June 6, 2012 Educators 6:00 p.m. Group 6 June 6, 2012 Displaced Workers 8:00 p.m. Megan Popp, Qualitative Research Director, and Rex Repass, CEO, of Repass & Partners, Inc., facilitated the groups. Focus groups are a form of qualitative research where a group of individuals are brought together to discuss a particular topic. Focus groups are used to go beyond numbers – such as how many and how often. They deliver in-depth insights into how individuals and groups perceive, feel about, and act upon various matters. Findings should be considered directional versus conclusive.

Page 63: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

Confidential & Proprietary

Interpretations and Recommendations

Page 64: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

INTERPRETATIONS AND RECOMMENDATIONS Manufacturing industry is misunderstood by many. Across the board, many respondents don’t really have a firm understanding on what is entailed in the manufacturing industry. There is a bad perception of the industry with negative associations that have stuck – for example, mundane (“assembly line”), dirty, low pay, and dying industry (because of outsourcing). There is an educational need here to change this perception. Outsourcing has damaged perceived opportunity in the industry; take caution when reversing this perception. The trend toward outsourcing is commonly understood by many. Most believe manufacturing in China and other countries is cheap and that it’s almost impossible for America to compete. This has lead to the perception that manufacturing jobs are in decline and that they pay poorly. While it’s important to reverse this perception, take caution when saying that “jobs are returning.” This type of messaging tested poorly and makes people feel that they are returning for an unfavorable reason such as a poor economy. More effective messaging will discuss the future of manufacturing and the recruits’ role in shaping that future. Using local schools to build a reciprocal relationship is key. Students and parents look to the schools often when it comes to career guidance. Forging a meaningful relationship with local schools and educators is critical and they want to hear from the industry. While their time is strained with a multitude of responsibilities, educators recognize their role in the community and are willing to help. Get their attention by offering useful data and statistic that communicate the need of the Northern Kentucky community. Additionally, provide educators with the necessary tools and stories about the industry so they can transfer knowledge to students and parents. There is interest for some to have the ability to work after high school. For some, the concept of being able to earn money right out of high school in avoidance of college debt is attractive. However, the opportunity for future advancement and education opportunities are vital to this consideration. While this won’t appeal to everyone, it could be particularly useful with recruiting those who are not able to pursue a four-year degree.

64

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INTERPRETATIONS AND RECOMMENDATIONS Messaging must be concise, convincing, and consistent. Everyone feels pressure for their time. Communications efforts should aim to be a part of people’s regular routine, yet it will need to be concise and convincing in order to stick. Further, given the various groups and influencers involved, messaging should aim to be consistent across all platforms – new and traditional media, classroom visits, site visits, etc. In other words, messaging to employers, educators, parents, and students, while they may be unique, should clearly deliver no more than three key positions for the manufacturing industry. The three recommended messages will include points on:

1) The change/advancement of the industry from being dirty assembly lines to that of cleaner, more advanced technological operations

2) The stability of the industry and the promise that it’s a legitimate career choice 3) An emotional and aspirational message that communicates purpose for the individual seeking a

career Use messaging that is emotional, that provides hope, and that communicates purpose. Enjoyment, fulfillment, and purpose were all common considerations when reviewing career choices. Factors such as pay and job security were also important, but people, particularly students, want to do something that they will enjoy and feel that they can make a difference. Further, messages that communicated purpose beyond the individual (i.e. “America/Kentucky needs you”) resonated well, particularly with students and displaced workers. Provide information about the industry, as much as possible. Students are eager for information on their career choice. They want to know the day-to-day responsibilities and activities, required training, potential salary, and much more. This type of information is typically found by candidates through the internet, but one-to-one personal communications can also be very convincing and memorable. Develop a hub for information like this to be accessible by all segments.

65

Page 66: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

INTERPRETATIONS AND RECOMMENDATIONS Segment groups and prioritize efforts according to need. Certain messages resonate with each of the unique groups. Parents and students are most similar, but their information needs may differ. Educators will require a higher degree of information and making them feel a part of the solution will invigorate action. Displaced workers have a different perspective and, while core messages will be equally effective with them, the delivery and information will vary (i.e. training). Assess and prioritize the urgency of the need and then select the segment that can best satisfy the requirement. Displaced workers, for example, may be better suited for more immediate machinist or mechanic positions. An HVAC specialist who has considered switching careers could be encouraged by opportunity in manufacturing and skills/knowledge may transfer more easily. Give manufacturers tools too, communicate from the inside out. One of the most important catalyst for changing the perception of manufacturing is likely to be the employers and the employees themselves. Because word-of-mouth and one-to-one communications are so important, special messaging should be developed and delivered to those already in the industry. Empower them with the approval, the tools, and the resources to share information about their industry with friends and family. This should help with retention as well as recruiting.

66

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Confidential & Proprietary

DETAILED FINDINGS: General, All Segments

Page 68: MANUFACTURING WORKFORCE NEEDS AND PIPELINE ASSESSMENT

MANUFACTURING INDUSTRY IS UNDEFINED, NOT ON RADAR

For most people, manufacturing is not something that is given a lot of consideration. This appeared to be true for the majority of respondents in all targeted demographics, with the exception of educators who were a bit more aware of the growing opportunity in this industry. The primary reason for this is twofold. First off, the definition of “manufacturing” is far too broad for people to understand exactly what it refers to, and its lack of definition appears to constrict people’s perceptions of the industry. Second, perceptions of the industry are that it offers only boring and mundane jobs. Many people’s first association with manufacturing is an assembly line. There is a great deal of confusion as to what this industry entails; people don’t really know what career options there are within the manufacturing industry. As more information was shared about the industry, consideration and interest increased.

When I think of engineering, I don’t really associate that with manufacturing. I never have thought about that industry before. I don’t even know what the jobs are in the manufacturing industry, but I don’t want to work in a factory.

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PERCEPTION OF MANUFACTURING IS POOR, OUTDATED

Many respondents shared that their perception of the manufacturing industry is poor. They perceive the industry to be boring and mundane without the opportunity for much growth or change. There is also a perception that most manufacturing jobs take place on an assembly line or in a warehouse; and, because of this, there is an association with being dirty and uncomfortable. There is also a perception that manufacturing will not provide job security because many jobs are believed to be outsourced to other countries. Very few people in all segments recognized that jobs were coming back to the U.S., and most everyone felt that manufacturing was still being outsourced to countries such as China and India to reduce costs. This, along with the perception of jobs being predominantly that of working on an assembly line doing manual labor, has the view that a manufacturing career equals low pay.

When I think of manufacturing, I think of dirty and hard work and you don’t make a lot of money. I think of factory workers and assembly lines. It’s not something that I am interested in. When I think of manufacturing, I think of something that would just be so boring. I don’t want to do the same thing over and over and never be able to move up.

69

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CAREER PLANNING IS TAKEN SERIOUSLY

Those thinking about their future or their children’s future are very considerate about what factors matter most. A resounding factor that emerged in all groups was that of finding a career that had the most potential of providing a good “fit” for the individual. They are interested in finding something that will bring great fulfillment and purpose, as well as a job that is enjoyable. Other factors, of course, play an integral part of selecting and investing in a career. Careers that are perceived to have good job security and availability are particularly attractive. Financial considerations are also top of mind and of great importance. This includes finances related to college and educational expenses, as well as how much will be made once out of college. Other considered factors are coursework/training – what types of schooling and how much.

I don’t want to think about a career if I don’t know what goes into it. All that stuff matters when I am thinking about what I want to do one day. My kids were very proactive when thinking about what they wanted to study in school. They were interested in how long it would take to be ready, how much money it would cost, and would that job be around for them one day. College is really expensive, you have to pick something that there will be a good chance getting a job.

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POST-SECONDARY EDUCATION IS IMPORTANT, VIEWED AS A REQUIREMENT TO A GOOD CAREER While many students/parents claim to understand and agree that college isn’t for everyone, nearly all plan to pursue a four-year college. Very few expressed interest in attending a trade school or receiving less than a four-year degree, nor did they admit that they might be unsure if college was for them/their child. There is a negative connotation with choosing a route other than a four-year college program. This is appears to be influenced by peer groups and parents/educators stressing the importance of education or trying to provide opportunities that parents may not have had. College has also become a rite of passage, meaning people belief it is a necessary stage after high school in order to get to reach their career. They have heard the stories from their siblings and classmates before them who all went on to college, and now they expect to experience that period of their life.

My parents said I’m going to college no matter what I say. I think that in today’s world, you have to have a four year degree at a minimum– often times then grad school or even more. You pretty much have to college these days.

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CAREER RESEARCH PROCESS VARIES, THOUGH MANY RELY ON KEY SOURCES

The degree of effort for career research varies. Initial considerations for students are formed primarily through parental/family advice and class experiences. After options are formed, for some, it doesn’t go further than the internet, which is primarily used to investigate considered careers rather than find new career choices. For others, parents and educators encourage one-to-one learning experiences, finding family or friends in the industry that their child/student can interview or job shadow. By and large, students view parents as a critical advisor in their search, and parents see educators as the conduit for information, support, and guidance. Educators admittedly express the difficulty and strain from other responsibilities that prohibit them from spending the necessary time on these efforts. There is an interest among students, parents, and educators to learn about opportunities in other industries. Many encourage and are open to site visits in order to learn more about possible careers. This includes class visits or trips, job shadowing, or an interview with someone in the field. These engagements are influential and have the biggest impact on students.

I feel like job shadowing provides the best place to learn about a career and really understand what each day is like. I wouldn’t find out more about manufacturing from the internet because I would never search that. With this economy, it’s important that kids really know what opportunities they may or may not have one day. They need to do as much research as possible.

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DETAILS ARE IMPORTANT TO STUDENTS Students are giving a great deal of thought to potential careers and industries of interest. They want to know as much as possible before they commit their time and money to one particular field. It is important to them to know what type of jobs are available, as well as understand what the day-to-day tasks would be. They are interested in the longevity and the state of the industry – they want to know if this career is sustainable. In addition, they want to make sure that there will be advancement opportunities in their future and that they can make an impact. It is also important that they know what the pay opportunities might be and what type of training will be required.

I don’t want to be doing the same thing over and over every day. I feel like that would be my only option if I went into manufacturing. I don’t know anything about manufacturing. I really don’t even know what kind of jobs were talking about. I think about factory workers, but is there more than that? I need to know what kind of jobs, what kind of pay, are there jobs around here? There is such a huge spectrum in this particular industry and I don’t know that the kids think of that.

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EMOTIONAL MESSAGING CAN BE EFFECTIVE

Messaging that appears to resonate the most has an emotional appeal or connection. This includes call-to-actions such as “America needs you” and “Your future awaits you..take control of it today.” Similarly, messaging that addresses Kentucky or that has a localized appeal also has merit. These appeals resonate especially well with parents and students. Messaging that addresses financial and advancement opportunities grab attention and inform. Respondents reacted well to messaging that addressed avoidance of college debt, however they must include an element of growth, advancement and employer reimbursement. Using the term advanced manufacturing seems to create a different and more favorable reaction or association with the industry (more technical, advanced, skilled, etc.).

I like the message that challenges you, it feels like it’s talking right to you. This message makes you feel like you are a part of something or like you can make a difference. I like the message that tells you about the opportunities and advancements, plus it tells you that you can start earning money right away.

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ENGAGEMENT IS CRITICAL FOR MESSAGE DELIVERY AND RESONANCE According to most students and parents, experiences that have allowed personal contact (job shadowing, interviewing someone, etc.) have had the biggest impact and influence on choice. One-on-one communication is the most effective– it is personal and allows students the opportunity to ask questions. Bringing in representative from well-known manufacturing corporations is something students said they would be interested in. All groups expressed that they expect to receive information directly from someone in the industry because they are the most trusted. Students seem somewhat skeptical of social media marketing and say they may not pay that much attention to something that was career oriented, however, they do pay attention to what their “friends” are saying. Traditional media will aid in supporting the communications efforts and creating consideration.

Have someone from the job come talk to me at school because I would have to listen. If someone came from a company that I knew was doing well, I would pay attention to that. If I am going to pay any attention in needs to be someone coming to talk to me about how manufacturing as been a great industry to work in. I need to understand their experience.

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Confidential & Proprietary

Key Segment Findings

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KEY LEARNINGS FROM STUDENT PERSPECTIVE

• Making information readily available so that the planning process is easy and accessible is very important to students. – Students want the opportunity to access as much knowledge as possible

(coursework, school/training requirements, potential for internships, co-ops, etc.).

– Students seem less concerned than parents about paying for college, but there still is some concern.

– Students need access to learn as much as possible about the industry in order to maximize interest.

• Influence, parents and educators

– Parents are big influencers, more so than educators. Parents can also be negative influencers of “old” perceptions of manufacturing jobs.

– Counselors seem to be bigger influencers than teachers when discussing careers.

– Students seem to be influenced by family and friends that have had positive or negative experiences with certain industries.

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KEY LEARNINGS FROM PARENT PERSPECTIVE

• Planning, though for slightly different reasons, is very important to parents. – Parents are very aware of the financial burden that post-secondary education

can cause. Any effort made to make this process easier to navigate through or provide more financial aid opportunities is looked upon favorably.

– Parents indicated that though they want their children to choose a career that will be sustainable, they are most concerned about their children choosing a career that they will enjoy and be interested in.

• Parents believe that personal interactions with their children have the biggest

influence. – Parents view counselors as a conduit for career information, but they feel

they’re not receiving the right information from them. – The internet is a common source for exploring careers, though it appears to a

destination to learn more about an industry where there is already moderate interest.

– People (educators, friends, etc.) will have the biggest influence on making manufacturing a considered career path.

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KEY LEARNINGS ON EDUCATOR PERSPECTIVE

• Career indicator tests are something to “check off the list” rather than being used as a tool. – Educators say that the career indicator tests that students are required to

complete have really become part of a checklist, instead of a useful tool. Because of this, it seems that neither students or educators take them seriously.

– Educators are aware of the financial strain post-secondary education brings to many families and tries to find additional assistance opportunities for students.

• They expect to receive necessary information from the industry.

– Educators expect to receive information direct from the industry rather than through their peers, educator networks, or through colleges. If there is something they need to be aware of, they’re willing to listen.

– Colleges seek out educators regularly – particularly counselors. They feel overwhelmed with these communications, and information directly from employers/industry could be impactful for that reason.

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KEY LEARNINGS FROM DISPLACED WORKERS PERSPECTIVE

• Many displaced workers feel stuck in their current trade/industry. – Most indicated that they wish they had the chance for further education or training so that

they have some more freedom, but they feel stuck. – Freedom was a critical career aspiration that many were seeking. This was also attached to

their ability to advance in a job/career. – If they feel as though they aren’t being treated fairly, that could motivate the switch.

• Many regularly use the internet to search for opportunities.

– Most displaced workers reported that they regular use online sources to search for career opportunities.

– Family and friends are also a critical source of influence.

• Training

– Most are willing to consider training, but with minimal risk. For example, they want employers to commit to them before they commit to the industry. And, because of the perceived risk in switching careers, they have a lot of questions that will need to be answered: Can they have a job out of school? Will the employer help pay for training? How much will I make during/after schooling?

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Confidential & Proprietary

APPENDIX 1: Picture/Projective Exercise

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PICTURE EXERCISE: METHODOLOGY

Respondents were asked to find images that best depicted their feelings about their ideal career (or child’s career/students career) and then an image that depicted what comes to mind when they think about the manufacturing industry. This is a common projective activity to force participants to think about how they feel about something in a creative way. Key insight and learning can be derived from this activity.

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PICTURE EXERCISE: IMAGES OF IDEAL CAREER

Many participants chose this image to depict what they hoped their career would look like one day– team work, a sense of camaraderie, and obvious success.

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This is what I would like to have one day. It looks like they worked hard and it paid off. I like the team work aspect and it also seems like they enjoyed it.

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This was a popular image; participants felt that the rocket or missile was symbolic of a career that soared or that embodied “reach for the stars” mentality.

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This makes me think that my career will take me higher. I hope my child can find something that will take them far, like this rocket.

PICTURE EXERCISE: IMAGES OF IDEAL CAREER

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Finding something that will be successful enough to allow for vacation and relaxation opportunities is very appealing to many. It says success and enjoyment.

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I want to do whatever it is that I can do this one day. This looks like someone who has figured out to be successful and enjoy life.

PICTURE EXERCISE: IMAGES OF IDEAL CAREER

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It seems that finding a career that provides an opportunity to help others is important to many. For many there is a need or desire to help others (education, medical field, etc.).

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I chose this one because of the adult hand holding the small hand. I want to help children. I think my daughter either wants to be a nurse or a teacher and this picture made me think of that.

PICTURE EXERCISE: IMAGES OF IDEAL CAREER

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PICTURE EXERCISE: IMAGES OF MANUFACTURING

The image of crushed cans seemed to make several participants think of manufacturing. Most explanations were because of associations with mass production or monotony of creating the same thing.

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I don’t know much about manufacturing, but seeing all these cans makes me think of P&G and all that they produce. I picked this image because I think of recycling and doing the same thing over and over.

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Participants said that this image was indicative of the manufacturing industry because of the image of the gears. This represented all the intricacies of making things work in the manufacturing industry.

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I think this picture makes me think of manufacturing because of all the small pieces working together. I don’t really know what manufacturing means, but this image makes me think that things have to work together in a certain way.

PICTURE EXERCISE: IMAGES OF MANUFACTURING

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Because there are some negative perceptions of the manufacturing industry, images that represented this were chosen. This image seemed to be suitable for those that thought the manufacturing industry wasn’t going anywhere.

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Now a lot of the manufacturing jobs are gone. I picked this picture because I would be bored to death if I went into that field.

PICTURE EXERCISE: IMAGES OF MANUFACTURING

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Many participants expressed that manufacturing is monotonous and boring. There also seems to be an association with assembly lines and factory jobs. This image represented those sentiments for many.

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I think of the same thing over and over, every day. This picture makes me think of manufacturing because I think of this bread being produced somewhere on an assembly line.

PICTURE EXERCISE: IMAGES OF MANUFACTURING

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Confidential & Proprietary

APPENDIX 2: NKIP & Deloitte Comparisons

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NKIP % YES DELOITTE % YES

Achieving productivity targets 56% 32%

Expanding current production capacity 61% N/A

Maintaining production levels consistent with customer demand

56% 51%

Achieving or maintaining target levels of customer service and satisfaction

44% 16%

Maintaining quality levels consistent with customer requirements

50% 35%

Implementing quality improvement processes 42% 20%

Effective supply chain planning and management 31% 13%

New product development and innovation 25% 27%

Implementing new technology 22% 24%

Effective sales and marketing 11% 17%

New product production lines 17% N/A

Has your company experienced difficulty in the following operational areas due to workforce shortages or employee skill deficiencies?

OPERATIONAL CHALLENGES DUE TO WORKFORCE SHORTAGE

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NKIP % “A LOT” OR “SOME”

DELOITTE % YES

Skilled production (machinists, operators, craft workers, technicians)

69% 75%

Supervision or team leadership 48% N/A

Production support (industrial engineers, manufacturing engineers, planners, etc.)

50% 40%

Scientists and design engineers 27% 22%

Unskilled production 19% 15%

How much impact will an aging workforce and anticipated retirements have on each of the following areas?

IMPACT OF AN AGING WORKFORCE

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METHOD NKIP % YES

DELOITTE % YES

Internal employee training and development programs 94% 83%

Use of overtime 94% 67%

Use of contingent labor, such as staffing agencies 89% 49%

External training and certification programs 75% 48%

Focused recruiting on particular workforce segments 61% 20%

Outsourcing of some functions 53% 42%

Has your company used any of the following methods to fill or reduce existing skill gaps in the past year?

METHODS TO REDUCE SKILL GAPS

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SKILL DEFICIENCIES AMONG JOB CANDIDATES

METHOD NKIP % A SIGNIFICANT

PROBLEM

DELOITTE % YES

Inadequate basic employability skills (attendance timeliness, work ethic, etc.)

53% 40%

Inadequate math skills 31% 30%

Lack of basic technical training (degree, industry certification or vocational training)

31% 43%

Inadequate reading, writing, communication skills 28% 29%

Inadequate problem-solving skills 31% 52%

Inadequate computer skills 8% 36%

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How critical are the following skill deficiencies among job candidates? For each, tell me if they are a significant problem, a moderate problem, a slight problem, or no problem at all.

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