nkip interviews september 2012 september 2012. background 2 critical input for strategic plan...
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NKIP INTERVIEWSSEPTEMBER 2012
September 2012
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BACKGROUND
Critical input for Strategic Plan development designed to meet employment needs of Northern Kentucky manufacturers.
The objectives of this research effort is twofold:
Workforce Needs Identify and project the needs of manufacturers in Northern Kentucky
Pipeline Development Understand perceptions and attitudes toward employment in the
manufacturing sector
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METHODOLOGY
• An in-depth survey was developed in collaboration with project leaders
• Two survey components – 1) Questionnaire: to assess attitudes and existing efforts toward the
workforce challenge2) Pre-survey packet: To identify specific workforce personnel challenges and
needs
• Interviewers consisted of key delegates from Tri-Ed, NKY Chamber, and AME Consortium
• Timing: June 12 – September 14, 2012
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WHO WAS SURVEYED?
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 NKY50%
Represents more than half of manufacturing employees55%
33%
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NUMBER OF FULL-TIME EMPLOYEES
10 or Less
10-49
50-99
100-249
250-499
500 or More
5%
14%
19%
22%
27%
14%
Size
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
Confidential & Proprietary
Workforce Needs
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OVERVIEW & SUMMARY
Manufacturers expect growth in most areas over the next 10 years. The greatest increase in hiring is expected in the next 12 months, but finding qualified candidates is 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.
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No Change; 17%
Some Increase, 64%
Large In-crease; 19%
Large ReductionSmall ReductionNo ChangeSome IncreaseLarge 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
0%0%
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IN 3 YEARS, THE WORKFORCE IS EXPECTED TO HAVE A HIGHER SHARE OF HIGHLY SKILLED WORKERS.
Current In 3 Years Change
Highly Skilled 26% 28% 2.8
Skilled 49% 47% -1.4
Unskilled 25% 21% -3.7
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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 EXPECT INCREASES
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Unfilled jobs due to lack of skilled candidates (per employer)
5.6
VACANCIES
Unfilled jobs today due to a lack of skilled candidates
680+
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CATEGORIES OF UNFILLED JOBS: DUE TO A LACK OF SKILLED CANDIDATES
Category Includes:
Maintenance Maintenance Tech, Electrical Maintenance
Engineering Process, Controls, Manufacturing, Electrical, Applications, Quality
Machine Operators Machine Operators, CNC Machine Operators
Welders Welders
Mechanics Industrial, Maintenance, Equipment
Assembly Assembly Tech, Skilled Assembly
Tool & Die Tool and Die, Rotary Die
How many jobs are currently unfilled due to a lack of skilled applicants? What categories are these unfilled jobs typically in?
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TOP FIVE DIFFICULTIES DUE TO WORKFORCE SHORTAGES(national comparisons)
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
16%
35%
32%
51%
n/a
44%
50%
56%
56%
NKY 61%
Has your company experienced difficulty in the following operational areas due to workforce shortages or employee skill deficiencies?
National
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OTHER DIFFICULTIES DUE TO SHORTAGES(national comparisons)
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
17%
11%
22%
25%
31%
NKY 42%
17%
24%
27%
13%
National 20%
Has your company experienced difficulty in the following operational areas due to workforce shortages or employee skill deficiencies?
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Very Frequently Somewhat Frequently
Not Too Frequently Not At All
47%
31%
22%
0%
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
CATEGORY
Machine Operations
Maintenance
Quality
Mechanics
Engineering
Lean Training
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33%11% 17% 8% 6%
36%
39% 31%19% 11%
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
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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
53%
61%
75%
89%
94%
94%
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
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
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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.)
8%
28%
31%
31%
31%
53%
22%
31%
17%
42%
47%
22%
A significant or major problem A moderate problem
BASIC EMPLOYABILITY SKILLS ARE A CRITICAL DEFICIENCYHow critical are the following skill deficiencies among job candidates?
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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…
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CRITICAL SKILLED POSITIONS THAT ARE CURRENTLY EXPERIENCING SHORTAGES
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
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CRITICAL SKILLED POSITIONS NEEDED – 10 years
In the next 10 years…
6,250 jobs
in these highly technical careers will need to be filled.
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DEMAND LEVEL TITLE GROWTHESTIMATE
High Demand
Manufacturing TechniciansMachine Maintenance SpecialistElectronic Technician and RepairerWeldersEngineer-Process/ManufacturingEngineer-Design
2671695532453326330
10 YEAR PROJECTED GROWTH
Some DemandMachinistsMachine Tool OperatorIndustrial Electricians
281260180
Near Stable
Applications EngineerMetal FabricatorsEngineering TechnicianCAD DraftersCNC Press Brake Set-Up and OperatorsFinishersHydraulic Pneumatic
120969453714938
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CORE COMPETENCIES – CRITICAL SKILLED POSITIONS
CAD skills
CNC Programming
Machine maintenance
Process and machine troubleshooting
Precision measurement
Use of diagnostic tools
Problem solving
Confidential & Proprietary
Pipeline
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OVERVIEW & SUMMARY
Method: Focus groups, 8-10 participants each
Timing: June 4-6, 2012
Segments:High School Students (2)Parents (2)Educators (1)Displaced Workers (1)
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OBJECTIVES
Understand perceptions and attitudes toward manufacturing
Determine why manufacturing is not a commonly pursued career
Identify messages that can create positive impressions about manufacturing careers
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FINDINGS
Manufacturing industry is misunderstood by many
Outsourcing has damaged perceived opportunity in the industry; take caution when reversing
Using local schools to build a reciprocal relationship is key
There is interest for some to have the ability to work after high school
Displaced workers looking for opportunity, but training will be a barrier
Confidential & Proprietary
Considerations
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CONSIDERATIONS
Create the brand – Messaging must be concise, convincing, and consistent
Use messaging that is emotional, that provides hope, and that communicates purpose
Provide information about the industry
Segment groups and prioritize efforts according to need
Give manufacturers tools too, communicate from the inside out
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