With
over 30 million people unemployed right now due to shutdowns and stay-in-place
orders in most states because of COVID-19, it may seem like odd timing for American
Machinist and IndustryWeek to release a new eBook titled,
“Closing the Skills Gap – How manufacturers are leveraging new technologies and
energizing a new generation to finally close the labor gap,” sponsored by Epicor
Software Corporation. However, now is the time to be prepared to take advantage
of the increased interest in returning manufacturing to America and strengthen
our manufacturing base as a result of the weaknesses in the domestic supply
chain revealed by the COVID-19 pandemic.
This
eBook is important because the Executive Summary states: “We are on the cusp of
a full-scale digital revolution in the manufacturing industry…[and] on the cusp
of an enormous wave of retirements as Baby Boomers exit the job market…we have
a perfect storm.” The result could be that
the “500,000 unfilled manufacturing jobs today…[could] balloon to 2.5 million
over the next decade.”
The
facts are that “a whopping 10,000 Baby Boomers retire every day” and “the
skills required for a job don’t match talent in existing worker pools. Five out
of 10 open positions for skilled workers in the U.S. manufacturing industry
remain unoccupied today. This shortage is due to the skills gap.”
The
good news is that “Over the last few years, manufacturers across the industry
have begun systematically attacking the skills gap head-on…” The eBook outlines
the application of the new tactics that manufacturers are applying across
industries.
First, the eBook mentions that Gen Z may be the generation that saves manufacturing from the “silver tsunami.” It reports that a new study, 2019 L2L Manufacturing Index, examining the American public’s perceptions of U.S. manufacturing, found that adults in Generation Z (those aged 18-22) are:
- 19% more likely to have had a counselor, teacher or mentor suggest
they look into manufacturing as a viable career option when compared to the
general population.
- One-third (32%) had manufacturing suggested to them as a career
option, as compared to only 18% of Millennials and 13% of the general
population.
- 7% more likely to consider working in the manufacturing industry
- 12% less likely to view the manufacturing industry as being in
decline, both compared against the general population.
- one-third (32%) have family members or friends working in the
manufacturing industry, compared to 19% for Millennials and 15% for the general
population.
However, there is still work to be done about the perception of
manufacturing, as “A majority (56%) of Generation Z would consider working in
the tech industry, while only 27% would consider working in the manufacturing
industry. Additionally, they are more likely to consider manufacturing jobs
boring when compared to Millennials and the general population.”
In
the chapter “5 Ways Manufacturing is Tackling the Labor Shortage,” Poornima
Apte lists creative ways manufacturing companies are attracting and recruiting
talent:
1.
Encouraging a Test Drive – hiring for short-term assignments as a way to
company and worker to test whether there is a good fit for permanent
employment.
2. Advancing and Training Internal Talent – “Promoting internal
talent can be a two-fer. It serves to retain valuable employees, and the
company invests in known entities.” Instead of traditional tuition
reimbursements for back-to-school training…manufacturing companies are forking
over the money upfront.”
3. Tapping into Unconventional Talent Pools – “Companies are looking beyond the pool of graduating students to recruit blue-collar workers… such as ex-convicts looking to reenter the workforce.
Manufacturing
companies are also partnering with organizations that cater to veterans and
minorities.”
4.
Looking beyond the resume – “By checking on skillset rather than education
alone, companies are more closely aligning specific jobs to the talent they
need…77% of employers are willing to prioritize a candidate’s skills and
potential over experience.
5.
Diving into Data Analytics – “Manufacturers can analyze demographic factors
across the country and find out which places will have the best talent…companies
can act on that intelligence proactively and recruit more aggressively in areas
they feel have more desirable candidates.
Next,
Jared Lindzon presents three ways companies can use
technology to attract younger employees in the chapter “How to Leverage Technology
to Attract a Younger Workforce:”
- Offer elearning – “As the first generation to grow up
with the Internet, younger workers like having constant access to information.
But…they’re often not interested in anything that feels too much like school. Leveraging
modern technology that millennials know and love, through eLearning, makes a
huge difference.” Millennials are eager to learn. They just want to do it using
modern, digital platforms.”
- Update Administrative Processes – …younger workers
expect the same level of efficiency, convenience and usability in their work
tools as they enjoy in their consumer products. “They bring those same
expectations to their jobs, so employers are increasingly examining processes
to provide the same quality experience and ease-of-use for employees using
technology in the workplace…”
- Avoid the ‘If it’s not broke…” Fallacy’” – “… staying
ahead of technology trends can help attract younger workers…They thrive off of
staying ahead of the tech curve to discover new methods of completing tasks and
automating processes…Younger workers want to feel like they’re working for a company on
the cutting edge. The new generation is more flexible, open to change and
willing to get hands-on to discover new techniques…”
The
eBook also offers a list of ten suggestions from consulting firm Mercer on how
to optimize an experienced workforce in the chapter, “Let’s Not Forget The Value
of Experienced Workers,” warning that “ignoring this group is risky. By 2040
the average life expectancy is predicted to be 80 years, up from 56 in
1966 and 72 in 2016. As a result, many people are working longer for a variety
of reasons, including financial necessity, purpose, and social/ intellectual
engagement.” A few important key suggestions are:
- Collect and analyze your age-profile data to explore demographic
and skills pinch points.
- Develop and implement people and careers strategies that embrace
the experienced workforce.
- Develop a lifelong learning attitude that positions people to
embrace jobs of the future.
- Implement an effective flexible-working strategy.
I
was really gratified to see that the eBook included the chapter “How Manufacturing
Day is Helping Combat the Labor Shortage,” by Tom Bidinger. Manufacturing Day (aka MFG DAY) was started in
2012 to combat the common misconceptions about manufacturing, and it has made a
difference. “MFG DAY—gives manufacturers the opportunity to open their doors
and show what it’s really like to work in manufacturing.”
I
was pleased to read that Manufacturing Day is contributing to breaking “the
cycle of misinformation when it comes to manufacturing careers. A recent survey
found that just 67% of parents would encourage their child to learn more about
job opportunities in manufacturing. That number needs to increase.” I’ve
attended events for MFG DAY in three counties, San Diego, Riverside, and Los
Angeles, since it began in 2012 and have visited dozens of companies to see
what they were manufacturing. It’s been
a pleasure to see that parents are taking the time to take their children and
teens to visit local manufacturers.
Bidinger
writes, “By working together during and after MFG DAY, manufacturers can begin
to address the skilled labor shortage, connect with future generations, change
the public image, and ensure the ongoing prosperity of the whole industry. “
In
the next chapter, “About the Skills Gap and Start Solving it,” Michael Collins
writes that “A lack of training and job security is at the root of
manufacturing’s image problem.” He adds, “the skills gap is real and a
two-pronged problem. First, manufacturing does not have the advanced training
programs needed to produce the high skilled workers they need. Second, young
people, their parents and counselors do not see manufacturing as a good career.”
He
provides a good summary of what manufacturers, especially large, multinational
corporations, have done in the past 40 years to reduce labor costs and other
costs of doing business and then discusses some of the tools that can be used
to address the skills gap.
The
final two chapters provide examples of what two companies are doing to address
the skills gap. In the chapter, “Modern
Machining & The Need for Speed,” John Hitches describes what former boxer
and machining revolutionary, Titan Gilroy, has done in “an aggressive strategy
to combat all the threats to American manufacturing, from outsourcing to the
skills gap.”
In
the final chapter, “Creating a National Workforce of Trained Welders,” IndustryWeek
Senior Editor, Adrienne Selko, describes how Lincoln Electric has partnered
with Tooling U-SME to expand its welding education program in order to close
the national skills gap in welding.
Utilizing
all of the suggestions contained in this eBook will rebuild American
manufacturing to create jobs and prosperity and protect Americans from being so
severely impacted by unexpected disasters whether natural or manmade like the
Coronavirus.
