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ToolingU-SME Report Reveals Manufacturers Are Not Addressing Skills Gap

Wednesday, December 14th, 2016

In 2011, I attended the imX Expo (interactive manufacturing eXperience) in Las Vegas when Tooling U-SME ” announced their Mission Critical: Workforce 2021 initiative and “sounded the alarm that the future success of manufacturing is at risk by the end of the decade if industry does not address the growing skills gap.” The event was sponsored by SME (formerly the Society of Manufacturing Engineers) and the American Machine Tool Distributors’ Association (AMTDA).

At that event, Tooling U-SME, “the world’s leading provider of training and workforce development solutions for manufacturing companies and educational institutions,” introduced a free one-of-a-kind “Workforce 2021 Assessment” tool for companies to use to assess and gauge their company’s performance because they had identified that there would be a critical shortage of skilled workers by 2021 that would threaten the future of manufacturing in America. “By answering a short series of questions about a company’s knowledge retention, readiness of future skill requirements, and the status of employee development programs, a company is able to assess their ability to meet current and future workforce challenges.”

In a September 5, 2016 commentary in The Hill contributor Grant Phillips wrote that the National Association of Manufacturers found there are “600,000 unfilled jobs in manufacturing primarily due to a lack of skilled labor. It is this skills mismatch that plagues the US labor market…”

On September 8, 2016, ToolingU-SME, released a report that showed the progress towards achieving the goal of the Mission Critical: Workforce 2021. Based on five years of insights from the Workforce 2021 Assessment tool, the report states, “the results are not encouraging. Responses show there has been little advancement. While it’s not too late, companies must take action now to ensure a healthier next decade.” The report quotes from report, “The Skills Gap in US Manufacturing: 2015 and Beyond” by Deloitte and The Manufacturing Institute, which states, “Over the next decade, nearly 3.5 million manufacturing jobs will likely need to be filled. The skills gap is expected to result in 2 million of those jobs remaining unfilled.”

ToolingU-SME Vice President Jeannine Kunz wrote in the cover letter, “only a very small number of worldclass organizations are prepared for the extreme talent gap predicted by the year 2021. Some of these companies started planning years ago to address the coming labor shortage. Others were forced to take reactionary steps when faced with a shrinking employee pool. Regardless, they started formal training programs, introduced apprenticeships, built relationships with educators and more…At Tooling U-SME, we are concerned that more manufacturers aren’t taking action since this has a big impact on the long-term health and competitiveness of the industry as a whole. There is a false sense of security among many manufacturers who are not recognizing these future challenges or investing in the development of their workforce today.”

The companies that responded to the survey fall into five categories:  procrastinator, strategist, role model, and visionary.

The procrastinators nearly make up the majority of the respondents because 49% said that “their company has not begun assessing their manufacturing employee’s current skills against skills they will require in the future.” In fact, only “1 out of 20 (5%) acknowledge conducting a complete assessment of all staff.” Since “nearly 9 out of 10 respondents (88%) said their company is having problems finding skilled works in manufacturing,” you would think there would be more urgency to address this problem. This problem will only get worse because “14% of respondents say they will lose a full quarter (25%) or more of their workforce to retirements in the next five years.”

The highlights of the report are:

  • “Key findings from responses to the survey from manufacturers of all sizes
  • Insights on business pains, such as hiring needs, training resources, mentoring and talent development
  • Best practices to immediately start ensuring your workforce is ready for the next decade”

The key findings are:

  • “Less than one-third (29%) of respondents would characterize their company’s talent development as good or excellent”
  • “30% say their company has no community involvement (internships, co-op, etc) to help develop the proper skills of their incoming workers.”
  • “54% don’t budget for employee development”
  • “33% say their job-related training options are minimal”
  • “88% say their company is below average when it comes to offering outside resources to upgrade the skill sets of employees”

While 74% agree that training needs in the organization impact a wide range of levels throughout the company…3 out of 4 (75%) say their company does not offer a structured training program on manufacturing skills. In addition, “less than half (45%) say their company has personnel designated to manage training and employee development.”

The report identifies issues related to the skills gap that need to be addressed immediately:

  1. Incoming employees — finding them
  2. Incoming employees — training them
  3. Incumbent workers — upgrading their skills to keep up with changing technology

With regard to finding manufacturing employees, I commented that we need a national manufacturing database of skilled workers when I gave my presentation on how to solve the skills shortage to the Cincinnati Chamber of Commerce. Many workers that have been laid off due to transferring manufacturing offshore or plant closures have no idea where to go to find a new job in manufacturing. They take lower-paying jobs outside of manufacturing because they can’t uproot their family on the chance they could find a job at a manufacturer in another city.

The ToolingU-SME report urges manufacturing to establish training programs for both incoming workers and incumbent workers to upgrade their skills. The report identifies the following six steps for companies to take to get started immediately:

  1. “Build a business case for learning with senior management. Involve the right stakeholders in discussions and tie learning to performance so you can measure the results later. It is important to set expectations, get buy in and gather support for the program early on.
  2. Define and update your job roles with the required knowledge, skills and abilities needed to build strong performance on the job. This competency-based learning approach will lead to the positive return on investment (ROI) your stakeholders expect.
  3. Build career progressive models, showing growth from entry level to more senior levels. This modeling effort will improve employee engagement and retention, and allow the alignment of skills to pay.
  4. Benchmark incumbent employee competencies through knowledge and skills-based assessments to determine gaps in performance and build a training strategy to address them.
  5. Design a custom competency-based training curriculum using blended learning that consists of online and on-the-job training as well as other performance support.
  6. Ensure performance standards are measurable and trackable. These standards will validate you ROI investment.”

What struck me is that all of these steps are integral to a company becoming a Lean Company. They are nearly identical to the requirements of “Talent Development” that are incorporated into the journey of transforming a company into a Lean company. It would appear that from this survey that the majority of manufacturers have not begun their journey to becoming even a Lean manufacturer, much less a Lean Company.

My recommendation is to start by using the free Assessment tool of ToolingU-SME. Then you can decide what steps to take next. If your workers need specific manufacturing skills certification, then check out the classes offered by ToolingU-SME, either online or on-site.

Another source for training is the Manufacturing Extension Partnership Program (MEP), which is “a national network with hundreds of specialists who understand the needs of America’s small manufacturers. The nationwide network consists of manufacturing extension partnership centers located in all 50 states and Puerto Rico. MEP provides companies with services and access to public and private resources to enhance growth, improve productivity, reduce costs, and expand capacity.” Locate your nearest MEP here. The MEPs have a variety of training programs that are available at reduced cost to manufacturers. The California Manufacturing Technology Consulting (CMTC) is the designated MEP for California, and they offer training in Lean manufacturing and many other subjects that would incorporate the above steps.

In California, companies can apply directly for a training grant from the Employment Training Panel (ETP) to help defray the cos of training or they can join an active ETP Multiple Employer Contract (MEC).

Many community college systems around the country offer training in specific manufacturing skills. California also has nine Centers for Applied Competitive Technology funded by the Chancellor’s Office of the Community College system, which provides training in specific manufacturing skills as well as Lean Manufacturing.

A number of community colleges actually use the ToolingU-SME courses instead of developing their own curriculum. I have discussed some of the training offered at community colleges in California and other states in previous articles I have written. You can peruse these articles under the Training and Workforce Development categories on my website:  www.savingusmanufacturing.com.

As more manufacturing is reshored to America, it will be even more critical to have the skilled workers we need to make American manufacturing great again. Do not procrastinate any longer on addressing this important problem.

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Wednesday, August 31st, 2016

In February 2015, the Brookings Institute released the report, “America’s Advanced Industries:  What they are, where they are, and why they matter.” The authors of the report identified 50 industries that constitute the advanced industries sector, of which 35 are related to manufacturing, 12 to services, and three to energy. The report states, “As of 2013, the nation’s 50 advanced industries…employed 12.3 million U.S. workers. That amounts to about 9 percent of total U.S. employment. And yet, even with this modest employment base, U.S. advanced industries produce $2.7 trillion in value added annually—17 percent of all U.S. gross domestic product (GDP).”

Another benefit of these advanced industries is: “In 2013, the average advanced industries worker earned $90,000 in total compensation, nearly twice as much as the average worker outside of the sector. Over time, absolute earnings in advanced industries grew by 63 percent from 1975 to 2013, after adjusting for inflation.”

Number two of the report’s recommendations for our nation’s private and public sector was:  “Recharge the skills pipeline.” While everyone agrees that filling the pipeline at an early age is essential to increasing the numbers, achieving this goal has been frustrating.

A number of organizations have been working to fill the skills pipeline by developing the next generation of manufacturing workers. For many years, the SME Education Foundation has been committed to advancing the manufacturing industry and stimulating the interest of youth in STEM education and manufacturing careers. “The Foundation invests in students through a broad array of scholarship programs and makes a direct impact on manufacturing education through their Partnership Response in Manufacturing Education (PRIME®) program. PRIME provides high school students with opportunities to pursue rewarding careers as engineers and technologists; this includes vocations involving mechatronics, welding, CNC programming, robotics, and much more.”

The National Association of Manufacturers (NAM) “Dream It. Do ItTM” program has helped to expose our youth to the modern manufacturing environment and change the image of manufacturing to one that is “cool” and full of exciting career opportunities.

These newer programs build on the work of the non-profit organization, Project Lead The Way®, which has been working since 1997 to promote STEM curriculum for middle and high school students during the school year, along with their Gateway Academy, which is a one- or two-week day camp for 6th – 8th graders that includes team-building exercises, individual and team projects, and utilizes the latest technology to solve problems.

However, none of the above programs are geared specifically to girls, and it is an even bigger challenge to attract girls and young women to technical careers. Studies have shown that when role models and mentors are provided to girls, they are more likely to follow a similar career path.

Two years ago, I wrote an article about the PLAYBOOK for Teens, created by Cari Lyn Vinci and Carleen MacKay, which is available in print and digital format at Amazon. In the PLAYBOOK, girls can meet fascinating women in STE@M (the “@” stands for “art”) and follow the “plays” of successful young women to help them create their own “Dream Career.” At the end of each story, the PLAYBOOK role models share heart-felt advice for girls to apply to their career path. Then, questions are asked of the reader to help them take the first step to writing their own PLAYBOOK. The PLAYBOOK is dedicated to the smart, talented teenage girls who will become the future business owners and leaders in STE@M industries. The PLAYBOOK can be used as a tool for organization and corporate partners to solve their future talent pool problems.

I recently reconnected with Ms. Vinci and interviewed her about why she created the PLAYBOOK for Teens and what has happened since 2014.

Why did you create the PLAYBOOK?

“When I was a teenager, I never dreamed that I would do some of the work I have done and that I would be able to be successful in several different careers. A common thread in my previous careers was that I spent more than 20 years hiring and writing training programs to help employees reach their goals. My previous business was helping adults figure out their next career, and if they wanted to be a business owner, helping them buy a franchise. This led me to wanting to help students understand that what they study in school and the education they get after high school will shape their choices as adults…in careers and lifestyle. Before I sold my last business, I realized that I wanted to focus on this goal next and collaborated with Carleen McKay to write the PLAYBOOK for Teens. We have packages available to help corporations recruit talent and market their brand. After I sold my business in 2015, I began working full time to achieve my goal.

What did you hope to accomplish?

“I wanted to help connect the dots for kids, so they could make the right choices on what to study to prepare for a career that matched their interests and talents and would provide them the opportunity to live the lifestyle they wanted to live.”

What was your original plan for the PLAYBOOK?

“I wanted to inspire and highlight that there are many paths to success and that going to college for the traditional four years is not the only choice. I wanted to show students that people who look like them are happy and successful in careers and doing wonderful things to make the world a better place.”

Why STE@M instead of STEM?

Ms. Vinci said, “The “@” in STE@M represents the addition of art to the other disciplines, as studies show art training is relevant in STEM subjects.” She emailed me a link to her YouTube video, in which she said that “art and making things are closely related.” She added, “One of my ancestors was Leonardo DaVinci, and he was an artist, sculptor, scientist, and inventor, who used technology, engineering, and mathematics.”

Why did you focus on girls?

“We did extensive research before developing the STE@M™ Mentoring Program. Our discussions with middle school girls revealed there are several roadblocks that start to show up in Middle School. Students told us:

  • STEM careers are only for boys
  • STEM subjects are too hard. My teacher says I only need “fill in the blank class” to graduate.
  • There are no girls in the science club
  • I don’t want to be viewed as the “smart one”
  • My friends aren’t interested in STEM
  • My parents don’t talk to me about or can’t afford an education for me beyond high school

Our PLAYBOOK for Teens…STE@M Mentoring Program helps girls catapult those roadblocks by discussing the elephant in the room and helping girls see the truth and the possibilities. The 8th grade girls tell us these conversations are more open and beneficial in a “girls only” environment.

By seeing the necessary building blocks and seeing women who look like them that are happy and successful in STE@M careers, students understand what is possible for them. And, most important, students form a “techie tribe” of support to keep them motivated going forward.

When the program is delivered in 8th grade, students have the opportunity to take appropriate courses in high school based on their “PLAYBOOK for Success” which includes their education goals after high school of community college, a four-year college, military or other education option.

The mentoring program is a way to set the stories in motion by bringing more young women into the lucrative STEM arena. Teens explore STE@M careers, gain insights from the role model stories, journal and research educational options.”

How has your plan evolved in the past two years?

We launched the PLAYBOOK at the Sacramento State and the AT&T non-profit group, Women of AT&T, Expanding Your Horizons event in Sacramento in October 2014 with books for 400 girls. One of the role models in the PLAYBOOK was the Keynote Speaker. Then, I participated on panels for WITI and the Global Women’s Entrepreneur Conference and gave presentations at the AeroSpace Museum for students and JSPAC for California educators. We had a team at the first ever Start Up Weekend for Women in Sacramento. I completed the Entrepreneur Showcase Accelerator program and graduated by pitching to a room full of investors, (think Shark Tank with nice people). The PLAYBOOK for Teens was written up in Huffington Post and featured on News 10.

In February 2015, we got an order for 100 books from the Livermore Expanding Your Horizons event and an order for 200 books from Diablo College. The organizers bought PLAYBOOKs for the parents and I did a presentation for the parents to be able to help their daughters’ research STEM careers using the PLAYBOOK.

When groups of students experience the PLAYBOOK together (with a mentor, teacher or parent), there is energy, commitment and excitement. We now have PLAYBOOK guides for 1-12 Mastermind sessions. The Train the Trainer curriculum is eight sessions, and we have a modified version for parents. Teen Mastermind Members share ideas, research and build confidence as they make decisions and take action towards their goals. Teens discover important success skills for life and career through the Mastermind—while they build a “professional network” of other students who have an interest in STE@M.

We developed an APP to compliment the PLAYBOOK for The Women of AT & T. We have packages available to help corporations recruit talent and market their brand.” Starting with The Women of AT&T at their “Expanding Your Horizon” event and the American Association of University Women’s (AAUW) “Tech Trek” event, educators and non-profits have asked to use the PLAYBOOK in a group environment. Educators wanted to use the information in the classroom, so I wrote the PLAYBOOK for Teens — STE@M™ Mentoring Program.

The Yolo County office of Education hosted the first PLAYBOOK Pilot that started in December 2015 and ran through March 2016 at Lee Middle School in Woodland. After a presentation about the pilot, teachers were asked to recommend 15 girls who have an interest in STE@M and who they thought would benefit from participating in the pilot. We received 54 recommendations within 24 hours, the teachers and counselors and counselors narrowed the number down to 14 participants.

I was very honored to receive the 2016 Yolo County School Board Association’s Yolo County Excellence in Education Award on May 2nd for the PLAYBOOK for Teens STE@M™ Mentoring Program, Our program encourages girls to explore the possibilities of a career in science, technology, engineering and math.”

What is your current goal for the PLAYBOOK?

“”We are working with the Community College Chancellors office and County Offices of Education to conduct “Train the Trainer” programs for teachers/counselors/parents so that educators can bring the  PLAYBOOK for Teens — STE@M™ Mentoring Program to Middle School students throughout California. Our next steps include writing a PLAYBOOK for boys and girls and collaborating with other education content providers to extend the program into High School. The Director of Careers at the County Office of Education in Yolo County would like the PLAYBOOK Program in all 11 middle schools.”

I think the comments that Michael Gangitano, counselor and career exploration teacher at Lee Middle School in Woodland, gave at the awards ceremony provides the best opinion of the importance of this program. After he received an award for bringing the innovative program to his campus, he said, “Having worked with middle and high school students for the past 35 years, I am constantly on the lookout for instructional tools that help young people see and plan for their future. PLAYBOOK for Teens is one of those resources that only comes around once in a great while that proves to be a rare gem.

The STE@M™ Mentoring Program arrives in an era when women are increasingly prominent in medicine, law, and business, but still lag behind men in STEM career choices. The program aims to disrupt that trend by providing a mentoring program in schools, in after school programs, at youth groups or at home.”

I was pleased to hear from Ms. Vinci that a modified version of the program is now available by webinar for parents and youth leaders and that invitations are being sent out this week to the Greater Sacramento Area Middle School educators and counselors to attend a Professional Development Training on the PLAYBOOK for Teens — STE@M™ Mentoring Program to be held August 10 or September 2, 2016. She said that Middle School educators and counselors are eligible for a complimentary registration and $250 stipend to attend.

In conclusion, I can’t do better than echo the final comments of Mr. Gangitano, “…let’s touch the lives of middle- and high-school aged girls by providing an inspirational life plan that knows no boundaries. Your students, daughters, their friends and our future deserve no less.”

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SME Education Foundation Works to Grow Next Generation of Manufacturing Workers

Wednesday, September 30th, 2015

The 2015 ManpowerGroup annual Talent Shortage Survey reveals that 32% or 1 in 3 of “U.S. employers report difficulties filling job vacancies due to talent shortages,” down 8% from 40% in 2014. This 10th survey shows that “skilled trades remain the hardest to fill for six consecutive years.” Among U.S. employers, 48% acknowledge that talent shortages have a medium to high impact on their business, but few are putting talent strategies in place to address the problem…despite the negative impact on their business.”

One reason for the shortage is that public misperceptions of advanced manufacturing has led young people entering the workforce to choose other career paths. In an article titled, “What the shortage in skilled manufacturing workers means to a hungry industry” of the e-newsletter Smart Business, Kika Young, human resources director at Forest City Gear Co. Inc. of Rockford, IL, said “Most people in Gen Y out of high school don’t think of manufacturing as a career or as a good option. They don’t think of it as glamorous; they think of it as dark and dingy and dirty and aren’t interested in going into that.”

If we want to attract today’s youth to manufacturing careers, we need to change their perceptions about what the manufacturing industry is like and show them what great career opportunities exist in the industry. We need to expose them to the variety of career opportunities in manufacturing and help them realize that manufacturing careers pay 25-50 percent higher than non-manufacturing jobs, so they will choose to be part of modern manufacturing. The spotlight needs to be on the high-tech environment of modern manufacturing. New technologies such as 3D printing, robotics, and advanced analytics underscore the reality that a career in manufacturing does not entail working in a dirty, dangerous place that requires no skills.

SME Education Foundation is working to change the image of manufacturing and prepare youth for careers in advanced manufacturing through its Partnership Response In Manufacturing Education (PRIME®) initiative.

PRIME® is a collaborative model that engages regional manufacturers, local schools and other community representatives to establish a tailored advanced manufacturing / STEM education that provides high school students with relevant, hands-on knowledge and skills. PRIME® gives manufacturers a voice in education, builds student awareness of manufacturing career pathways, and provides youth with 21st century manufacturing skills, which can lead to industry credentials. Students graduating from the PRIME® program are often capable of successfully transitioning to the manufacturing workforce immediately upon high school graduation.

Established in 2011, PRIME® has grown to 36 schools in 21 states, impacting more than 6,500 students annually with 70 percent of graduating PRIME® seniors pursuing a post secondary education in manufacturing or engineering. SME Education Foundation has also supported 144 PRIME® students with nearly $400,000 in scholarship awards.

In my home state of California, there are six PRIME® schools: Esperanza High School, Hawthorne High School, John Glenn High School, Petaluma High School, Rocklin High School, and San Pasqual High School.

SME Education Foundation is working to expand its network by working with corporate partners to sponsor the development of new PRIME® sites at high schools throughout the country. “PRIME® is forging a path to revitalize manufacturing education and fostering the development of a highly skilled, STEM-capable workforce,” said Brian Glowiak, director of the SME Education Foundation. “Through the support of visionary corporate partners, like Alcoa and Honda, we are helping to create the next generation of manufacturing engineers and technologists and championing one of the most critical elements for innovation success.”

SME Education Foundation and PRIME® provide a winning solution for students by offering them opportunities to:

  • Collaborate with local SME Chapters and industry partners to co-host events
  • Engage with other students and educators in the PRIME® network to share their experiences and creative lesson plans as well as participate in student competitions
  • Participate in Advanced Manufacturing/STEM camps with younger students and other extracurricular activities
  • Receive post-secondary educational scholarships
  • Engage with SME members who can share their technical knowledge and experience by mentoring PRIME students, offering internships and providing job-shadowing opportunities.
  • Attend student summits at SME’s national manufacturing events. These summits allow students, parents and educators to interact face-to-face with representatives of companies that provide revolutionary technologies and business-changing innovations.
  • Implement training materials and curriculum from Tooling U-SME, the industry leader in manufacturing learning and development.
  • Receive SME’s Advanced Manufacturing Media, which produces digital and print publications that cover relevant manufacturing news, technology and advances.

PRIME® Success Story:

In 2014, Denbigh Aviation Academy in Newport News, Virginia was selected for PRIME® designation through the SME Education Foundation.Students at the Aviation Academy, are building a full-sized, 750-pound, two-seat aircraft. At the culmination of the project, they are planning to take this student-built aircraft to the skies! The Aviation Academy is a four-year, high school program in Newport News Public Schools, located behind the Newport News-Williamsburg International Airport. Learners focus on careers in aviation, electronics, engineering and technology. “We are able to get real world experience and it ties in with aerospace manufacturing /engineering. It’s a good thing because the fields are lucrative and growing,” says Laura Prox, a junior at the Denbigh Aviation Academy.

As one of the first sites on the East Coast to partner with Eagle’s Nest Projects (an organization that donates the plane kits to schools to build these aircrafts), students can immerse themselves into the manufacturing and aviation sector. An elite team of 30 students have completed the fuselage and tail sections. These students demonstrate an authentic example of manufacturing brought to life in the classroom. Students are assigned roles from management to labor based upon their coursework and experience. They are learning and employing fastening systems and procedures that can be found at any aviation assembly facility. Using the materials, reading the blueprints and drawings, and understanding principles in assembly outline some of the talents students gain. Throughout the process, some of the “soft skills” also emerge such as teamwork, communication and problem solving.”

Manufacturing Day 2015 will occur on Friday, Oct. 2, and throughout the month of October, SME will be supporting Manufacturing Day through chapter activities and events, the SME Education Foundation’s PRIME® school network and Tooling U-SME. Here’s what PRIME® schools are doing for Manufacturing Day!

PRIME® exposes our youth to the modern manufacturing environment and changes the image of manufacturing to one that is “cool” and full of exciting career opportunities for our youth. This will enable us to recruit the next generation of manufacturing workers to fill the skilled worker positions now going unfilled.

The question is: Will you be the corporate executive who joins the PRIME® program to sponsor more schools to expand the program to hundreds of schools in all 50 states? If so, go to this link. Or, will you be the corporate executive that will have to admit to his children or grandchildren that you are partly responsible for reducing their career opportunities for good paying jobs in manufacturing because you offshored manufacturing and/or imported foreign workers to replace American workers at your U. S. plant?

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“Manufacturing in Golden State Summit Highlights Threats to Prosperity”

Tuesday, October 28th, 2014

On October 16th, about 130 business leaders met at the conference facilities of AMN Healthcare in San Diego for the third “Manufacturing in the Golden State – Making California Thrive” economic summit. The summit was hosted by State Senator Mark Wyland in partnership with the Coalition for a Prosperous America and a long list of other regional businesses and associations. The purpose of the summit was to discuss how several national and California policies are threatening the growth and prosperity of California manufacturers and what policies should be changed to help them grow and thrive.

After State Senator Wyland welcomed attendees, Michael Stumo, CEO of the Coalition for a Prosperous America, provided an overview of the schedule for the day.

I provided an update to the overview of California manufacturing that I had presented at our summit in Brea on March19th covered in a previous article. California lost 33.3% of manufacturing jobs between 2000 and 2009 compared to 29.8% nationwide and 25% of its manufacturing companies. California lags in manufacturing job growth at a .36% rate compared to the national 6.09% rate.

I highlighted that the San Diego region offers a great deal of help for inventors and start-up technology based companies through the San Diego Inventors Forum, CONNECT’s Springboard program, the Small Business Development Centers in North County and South County, CleanTech San Diego, as well as groups like the San Diego Sports Innovators. San Diego also offers more career path and workforce training programs than most other states, including those offered by three of our event sponsors: California Manufacturing Technology Consulting, the Center for Applied Competitive Technologies, and the Lean Six Sigma Institute.

The good news is that California is benefitting from the reshoring trend that is sweeping the county. According to data collected by the Reshoring Initiative, California ranks first in the number of companies (28) that have reshored and third in the number of jobs created by reshoring (6,014).

I then moderated a panel of the following local manufacturers, who gave their viewpoints of the effects of some of our national policies and the challenges of doing business in California:

  • James Hedgecock, Founder and General Manager of Bounce Composites
  • Scott Martin, President, Lyon Technologies
  • Robert Reyes, Head of Strategic Sourcing, Stone Brewing Company

Hedgecock stated that Bounce Composites is less than two years old and makes thermoset composites, starting with paddle boards and branching into small wind turbine blades this year. He bemoaned the fact that in California you have to pay $800 to incorporate a company, which is double to quintuple the cost of incorporating in other states. Also, as a LLC, you have to pay taxes on gross profits rather than net profits, which is tough on a start-up company.

Martin said that Lyon Technologies has been in business since 1915 and has changed its products several times over the years. Current products include bird and reptile incubators, poultry products, and veterinary products, which they export to about 100 countries. He stated that the Value Added Taxes (VATs) that are added to the products they export and the currency manipulation practiced by several countries make it difficult for their products to be competitive in the world marketplace.

Reyes said they are expanding out of San Diego and are building a new $25M brewery and restaurant in the Marienpark Berlin, scheduled to open by end 2015/beginning 2016. Stone exports beer to Germany and other European countries and having a brewery in Germany will ave on shipping costs for exporting. They are also planning on opening a brewery on the East Coast in Virgina.

The national expert panel included Greg Autry, Adjunct Professor of Entrepreneurship, Marshall School of Business, University of Southern California; Pat Choate, economist and author, “Saving Capitalism: Keeping America Strong”; Mike Dolan, Legislative Rep., International Brotherhood of Teamsters; and Michael Stumo, CEO of CPA.  The focus of the talks was on national security, manufacturing growth strategies, tax strategies and fixing the trade deficit.

Autry, led off the national panel with the topic of “National Security Concerns with U. S. Trade Regime.” He began by stating, “An economy that builds only F-35s is unsustainable – productive capacity is what wins real wars. Sophisticated systems require complex supply chains of supporting industries. They require experienced production engineers and experienced machinists.” He added that we cannot rely on China to produce what we need for our military and defense systems. “We should not be relying on Russia’s Mr. Putin to launch our satellites and space vehicles and provide us a seat to get to the international space station.”

He pointed out that our technical superiority in military systems will not assure our national security any more than the technical superiority of Nazi Germany’s aircraft and tanks did for them. Economic superiority is what matters. The manufacturing industry of the U. S. out produced Germany during WWII and the Soviet Union in the Cold War.

Autry stated that Wall Street’s new hero, Jack Ma, founder of Chinese company Alibaba Group Holding Ltd, is a danger to American interests by the fact that Alibaba just overtook Amazon as the world’s largest online retailer by market capitalization. It was the wealth he created at Amazon that enabled founder Jeff Bezos to now lead a new company, Blue Origin, which was just selected by the United Launch Alliance to finish development of a new engine to replace the Russian made RD-180 rocket engine used by ULA’s Atlas 5 rocket. There is considerable skepticism by many of Mr. Ma’s independence from the Chinese government. Mr. Ma’s next target appears to be PayPal, which is responsible for the wealth of Elon Musk, now CEO and CTO of SpaceX, CEO and chief product architect of Tesla Motors, and chairman of SolarCity.

Next, Michael Stumo presented “A Competitiveness Strategy for America: Balance Trade and Rebuild Domestic Supply Chains.” He said, “Our ultimate goals should be: improved standard of living, full employment, and durable, sustainable growth. America has no strategy to win. Our trade deficit cuts our growth in half. Domestic supply chains were sacrificed to global supply chains; i.e. offshored and hollowed out….We need a strategy to win.”

He pointed out that “free trade is supposed to produce balance and address foreign mercantilism, but our trade policies enable mercantilism…We must replace the goal of ‘eliminating trade barriers’ and have Congress establish a new directive via statue to balance trade.”

He said that to achieve balanced trade, we must address, reciprocity, currency manipulation, forced technology transfer [by China], foreign VAT rebates, state-owned enterprises, and government subsidies.

In conclusion, he recommended that we should:

  • Create durable comparative advantage through technical superiority, infrastructure, low energy costs, etc.
  • Balance trade and fight foreign mercantilism
  • Create our own comparative advantage
  • Maximize domestic value added
  • Identify and minimize our advantages while minimizing our disadvantages

In conclusion, he urged, “Don’t be afraid of asserting and pursing our national economic interest.”

The next speaker was Mike Dolan, Legislative Representative for the Teamsters, who has long experience working for Fair Trade (fighting expansion of the job-killing NAFTA/WTO model). He said that big corporations want Congress to pass Trade Promotion Authority in the “lame duck” session to grant the president Fast track Authority for the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) Agreements. He called the TPP “NAFTA on steroids” and said that TTIP is just as bad. He said that Fast Track was invented by President Nixon and has been used 16 times. He said that we need a new form a Trade Promotion Authority where Congress has input with regard to the countries involved in the Agreement, certifies that negotiating goals were met, and votes to approve it before it is signed. He urged attendees to contact their Congressional Representative to oppose the TPP for the following reasons:

  • “Lack of transparency during negotiations warrants more thorough consideration than a up or down vote
  • Under previous trade deals, the U. S. has hemorrhaged jobs and cannot afford more of the same
  • The TPP is too large and complex to delegate constitutional authority away from Congress”

Pat Choate (Economist; Author, Saving Capitalism: Keeping America Strong) discussed how our trading partners have used Value Added Taxes (VATs), and currency manipulation to their advantage and to the disadvantage of the U. S. VATs or border adjustable consumption taxes are used by other countries to offset income, payroll, or other employer taxes to help their manufacturers be more competitive in the global marketplace or to offset other costs like national health care or pension programs. VATs range from a low of 10% to a high of 24%, for an average of 17%.

While tariffs have been dropped since 1968 as part of many trade agreements signed since then, the effective trade barriers have remained constant because of the VATs being imposed.

These consumption taxes have been a causative factor in increasing our trade deficits with our trading partners, which was $471.5 billion in 2013, $318 billion with China alone. He supports CPA’s advocacy of making changes in U. S. trade policy to address this unfairness which tremendously distorts trade flows.

During lunch, keynote speaker Dan DiMicco, Chairman Emeritus of Nucor Steel Corporation, spoke on “Seizing the Opportunity.” He led off by shocking the audience with facts about the real state of our economy and our unemployment rate. By September 2014, we still had not reached the level of employment that we had when the recession began in December 2007 although 81 months had passed. We lost 8.7 million jobs from December 2007 to the “trough” reached in February 2010, but because our recovery has been much slower than the previous recessions of 1974, 1981, 1990, and 2001, the gap in recovery of jobs compared to these recessions is actually 12,363 jobs.

In contrast to the misleading U-3 unemployment rate of 5.9% for September 2014 that is reported in the news media, the U-6 rate was 11.8%. The government’s U-6 rate is more accurate because it counts “marginally attached workers and those working part-time for economic reasons.”However, the actual unemployment is worse because the participation in the workforce has dropped from 66.0% to 62.7%. In other words, if the December 2013 Civilian Labor Force Participation Rate was back to the December 2007 level of 66.0%, it would add 8.2 million people to the ranks of those looking for jobs.The manufacturing industry lost 20% of its jobs, and the construction industry lost 19% of its jobs.

Unemployment Data Adjusted For Decline in Civilian Labor Force Participation Rate
(Adjusted For Decline from December 2007 Level Of 66.0% to 62.8% in September 2014)

Reported Unemployed U.S. Workers 9,262,000
Involuntary Part-time workers 7,103,000
Marginally Attached To Labor Force Workers 2,226,000
Additional Unemployed Workers With 66% CLF Participation Rate 8,199,000 
Unemployed U.S. Workers In Reality 26,770,000
Adjusted Civilian Labor force 166,287,000
Unemployment Rate In Reality 16.1%

 

DiMicco said, “We got in this position from 1970 until today because of failed trade policies allowing mercantilism to win out against true FREE Trade. We bought into wrongheaded economic opinions that America could become a service-based economy to replace a manufacturing-based economy. Manufacturing supply chains are the Wealth Creation Engine of our economy and the driver for a healthy and growing middle class! The result has been that manufacturing shrank from over 30% to 9.9% of GDP causing the destruction of the middle class. It created the service/financial based Bubble Economy (Dot.com/Enron/Housing/PONZI scheme type financial instruments.)”

He added, “We have had 30 years of massive increases in inefficient and unnecessary Government regulations. These regulations, for the most part, in the past have been put in place by Congress and the Executive Branch. However, today they are increasingly being put in place by unelected officials/bureaucrats as they intentionally by-pass Congress.

American’s prosperity in the 20th century arose from producing more than it consumed, saving more than it spent, and keeping deficits to manageable and sustainable levels. Today, America’s trade and budget deficits are on track to reach record levels threatening our prosperity and our future.”

He said, “Creating jobs must be our top priority, and we need to create 26-29 million jobs over the next 4-5 years. There are four steps we can take to bring about job creation:

  • Achieve energy independence.
  • Balance our trade deficit.
  • Rebuild our infrastructure for this century.
  • Rework American’s regulatory nightmare.

In conclusion, DiMicco said, “We need to recapture American independence through investment in our country’s people, infrastructure, and energy independence, and by reversing the deficit-driven trends that currently define our nation’s economic policy. Real and lasting wealth IS, and always has been, created by innovating, making and building things — ALL 3 ? and servicing the goods producing sector NOT by a predominance of servicing services!”

As the mid-term election approaches, we need to cast our votes for candidates who address the serious issues discussed at the summit, so that we can work together as Americans to restore California to the Golden State it once was and restore America to be “a shining city upon a hill whose beacon light guides freedom-loving people everywhere,” as declared by Ronald Reagan in 1974.

Posted in Economic Development, Jobs, Manufacturing, National security, Reshoring, Taxes/Regulations, Trade Policy, Training | No Comments »

San Diego Celebrates Manufacturing Week not just Manufacturing Day

Tuesday, October 14th, 2014

To highlight the importance of manufacturing to the economy of the San Diego region, the Mayor and City Council declared the week of September 30 – October 5, 2014 to be Manufacturing Week instead of only Manufacturing Day on October 3rd.

One of the highlights of the week was an all day Workforce Conference held on October 2nd put on by the San Diego Workforce Partnership and the San Diego and Imperial Counties Community Colleges Association Regional Consortium. The conference presented a summary of a detailed research report conducted by these two organizations of each of the sectors that are vital to the regional economy. San Diego’s five priority sectors are:

  • Life Sciences
  • Health Care
  • Clean Energy
  • Information & Communication Technologies
  • Advanced Manufacturing

More than 250 businesses were surveyed for the report, and industry associations and organizations with industry expertise also contributed to the study. The results of the study can be used to help these priority sectors, which are experiencing rapid growth and projected skills shortages, conduct workforce planning and management of resources. The Conference presentations included an overview of the research findings and panel discussions with industry experts and employers.

Since my interest in these sectors is limited to manufacturing, I only attended the session on Advanced Manufacturing, presented by Dr. Mary Walshok, dean of UC San Diego Extension. Describing San Diego’s manufacturing industry, she said, “It ain’t your old assembly line manufacturing. It’s about a network of suppliers. It’s about organizations that are prototyping and doing R & D on site…I think the moniker for San Diego should be drones, phones and genomes … Let’s add to that surfboards, skateboards, and golf equipment.”

Key data presented was the fact that “The Advanced Manufacturing sector accounts for 10% of all establishments, 15% of all paid employment and 22% of all annual payrolls” in San Diego County. The fact that the “sector is dominated by small-to-medium-sized businesses with 82% of firms employing less than 20 employees” confirmed my more than 30 years experience in San Diego’s manufacturing industry.

Utilizing a broader definition of what constitutes manufacturing, the report listed the manufacturing employment at 170,800 in contrast to the California Economic Development Department total of 96,900 manufacturing jobs in San Diego in August 2014, an increase of 2,200 manufacturing jobs since August 2013. The report projects a 6% increase in manufacturing jobs by 2018 for a total of 180,700 jobs.

The Advanced Manufacturing sector is no longer dominated by any one industry like it was 20 years when aerospace/defense was the dominant industry. Now, it is comprised of diverse industries in which no industry has more than 13% (electronic equipment and components). Aerospace/defense has dropped to 11%, and the fabricated metal products industry comes in a close third at 10%. Industrial/commercial machinery and computer equipment represents 8% of the industry, and signs and advertising specialties represents 6% of the sector. I was surprised that biotechnology only represents 5%, when San Diego is ranked third in the nation as a center of the Life Science industry sector after Greater Boston and the San Francisco Bay Area.

The report states, “Most Advanced Manufacturing occupations require high school education at a minimum. Moving up the career ladder requires on-the-job experience or more academic credentials, some are provided by 2-year or 4-year colleges. Many occupations require a specific set of skills for their workers, which can be acquired with an education credential. There are certain educational credentials that can be applied to multiple occupations.”

The study revealed the four occupational clusters that are most commonly employed in Advanced Manufacturing:

  • Engineers
  • Computer/Software
  • Drafters and Technicians
  • Production

The drafter category has morphed into people with expertise in Computer Aided Design and 3D modeling skills instead of traditional hand-drawn drafting skills.

The top five occupations that have a gap in the supply of workers produced by the regions educational institutions compared with the number of available job openings are:

  • Software developers, applications and systems software
  • Assemblers and fabricators
  • Aerospace engineers
  • Computer user support specialists
  • Machinists

The report goes into specific detail about the skill sets needed for each of the above occupations. To address this gap in the supply of workers with the requisite skills, the following recommendations are made:

•” Inform the public about the skills and levels of compensation in the Advanced Manufacturing sector.

• Develop an Advanced Manufacturing talent pipeline.

• Increase employer knowledge about business assistance programs for workforce training.

• Add an internship and/or work experience requirements to education and training programs.

• Encourage critical thinking and real world application in education and training programs.

• Standardize certifications and articulation agreements.”

Dr. Trudy Gerald, Deputy Sector Navigator for Advanced Manufacturing at San Diego City College moderated a panel of that included two manufacturing representatives: Nancy Boessow, HR Manager for Johnson Matthey Medical Components and Rick Urban, COO and CFO of Quality Controlled Manufacturing, Inc., a leading precision machining manufacturer of complex components and assemblies for the aerospace, defense, and energy industries.

Joining the panel was Jo Marie Diamond, President and CEO of the East County Economic Development Council and newly appointed as the region’s representative on the Executive Board for the Advanced Manufacturing Partnership – Southern California, one of only 12 federally designated Investing in Manufacturing Community Partnership (IMCP) consortia and the only one west of the Mississippi. Ms. Diamond said that the advanced manufacturing sector has an aging workforce, so “We’re going to have to fill that pipeline [with training and education].”

There has been a shortage of skilled machinists, especially lathe operators for the past 15 years, and since I have discussed this issue with Mr. Urban personally, I am aware of what his company is doing with regard to training. The company website states, “QCMI needed to establish an Education / Training Competitive Workforce Initiative. The QCMI WEA winning initiative includes: a mentoring program for entry-level employees; promotion and training from within; partnering with high schools and colleges; and the creation of a nonprofit Academy.” The Academy training and apprenticeship program began earlier this year with a curriculum that took a year to develop.

At the conference, he stated, “We’re going to do a lot of training…The people that come in at an entry level position are allowed to stay there for six months. They have to move up or it doesn’t make sense because we have to keep that pipeline going.”

The conference was well attended by people within the five industry sectors, as well as those seeking to make career transitions or improve their skills, career counselors, trainers, and educators. The presentations and panelists provided a complete picture of what employers are looking for in the current and future labor force and set the stage for the events that followed on Manufacturing Day.

Manufacturing Day began with a breakfast at the new central library in downtown San Diego organized by the San Diego Regional Economic Development Corporation. President and CEO Mark Cafferty and Congressional Representatives Susan Davis and Scott Peters gave introductory remarks welcoming attendees, and then Jack Stewart, president of the California Manufacturers and Technology Association, moderated the following a panel of local manufacturers that represent a cross section of San Diego’s diverse industries:

Bob Cassidy, Senior Director of Operations, ViaSat – producer of satellite and other digital communication products for the commercial and government sectors

Guillermo Romero, General Manager, 3D Robotics’ plant in Tijuana – producer of miniature commercial unmanned aerial vehicles (drones)

Kevin Graney, Vice President and General Manager, General Dynamics NASSCO – shipbuilding of Naval and commercial ships and tankers

Carlos Nunez, COO, Care Fusion – producer of infusion, interventional procedures, medication and medical supply management, respiratory care and surgical products.

Dave Klimkiewicz, co-founder of Sector 9 skateboards

Mr. Stewart remarked, “Manufacturing was the industry on the outs. Service industries aren’t creating the good paying jobs…”This isn’t your father’s factory floor anymore…Now manufacturing is new, high tech, and robotic…Just as manufacturers have retooled their operations to be more efficient, more clean, more innovative, the universities, community colleges, the high schools must retool their education systems.” He added, “Advanced manufacturers in California have to be the cleanest, the best, cut costs, and improve productivity.”

Each panelist gave a brief overview of their company’s products and services, and then took turns answering questions posed by the moderator. With regard to finding qualified workers, their comments corroborated the comments of the panelists the previous day at the Workforce Partnership conference.

Cassidy said, “We have a very stable workforce with very low turnover, but it’s an aging population, especially on the electro-mechanical team…We need more with solder training and wireless technician certificates.”

Graney said that they have the largest backlog in their history and are hiring anyone who can fit or weld. “We end up training everybody that basically comes in the gate,” he said. “We’ve got eight weeks to develop a fitter or welder, before they’re out on the production run. We have had really only frankly limited success doing it any other way.” He added that they are making data available electronically to their welders at their workstations, and their painting process has reduced 90% of emissions.

All of the panelists made comments about how high schools need to get back to basics, including computer skills and technical training in wood shop, auto shop, and metal shop for those not going to go to college. Mr. Nunez said that STEM education needs to be supplemented with hands-on projects, such as ones using a “Raspberry Pi [A breadboard device for prototyping circuits].”

In answer to the moderator’s question about what are the benefits of bi-national manufacturing, Mr. Nunez said that the majority of the manufacturing for their infusion pumps and tubing takes place in Tijuana and Mexicali. Mr. Romero said that most of their SKUs are made in Tijuana, and the close proximity allows their engineers to visit the plant in the morning. He said, “It’s important to buy the right equipment and hire the right people.

The panelists touted San Diego’s collaborative effort among businesses and organizations, as well as opportunities created by the region’s proximity to Mexico. They also commented on the higher costs of doing business in California compared with other regions.

After the breakfast ended, I went on three tours out of the more than 25 tours offered in the San Diego region’s manufacturers. First, I visited D & K Engineering in Rancho Bernardo. D&K Engineering was started in 1999 by Scott Dennis and Alex Kunczynski as an engineering design and product development firm that evolved into providing contract manufacturing services for such companies as ecoATM and Retail Inkjet. D & K offered tours every half hour from 11 AM – 3 PM and 10 people were allowed on each tour. Besides business people, there were one mother and her pre-teen, home-schooled son and daughter on my tour.

Next, I visited Alphatec Spine in Carlsbad that makes implants made from PEEK and Titanium used in spinal surgery and reconstruction. My last stop was a mixer sponsored by the California Manufacturing Technology Consulting and the City of Santee at one of our many microbreweries, BNS Brewing & Distilling Company in Santee. The guest of honor at the mixer was Sid Voorakkara, a Senior Business Development Specialist from the Office Governor Brown. He provided the attendees with a brief overview of the new California Competes Tax Credit and the Manufacturing and R & D equipment sales and use tax exemption (for details go to http://www.business.ca.gov/ )

The producers of Manufacturing Day 2014 have bragged that “This year’s Manufacturing Day set another record with almost twice as many events as last year. The final count was over 1,650 events in all 50 U.S. states, three Canadian provinces, and Puerto Rico.” However, until we get more educators, parents, and students to attend these tours, we will not achieve our goal of attracting more youth to manufacturing and other STEM careers.

Posted in Economic Development, Education, Jobs, Manufacturing, Training | No Comments »

North Carolina College Recognizes STEM is Critical to Workforce Development

Tuesday, September 16th, 2014

Developing the maximum potential of persons by means of expanding knowledge and aptitude is the objective of the foundational structure of becoming a “Lean company.” It is impossible for companies to achieve this objective without a comprehensive program of workforce development (referred to as Talent Development in the language of “Lean.”)

In a recent interview, Chris Paynter, Dean of STEM at Central Piedmont Community College (CPCC) told me that part of the plan for achieving the College’s vision “to be the national leader in workforce development” was the reorganization of the college divisions of Science, Information Technology, Engineering, and Mathematics under one Dean to support the growth of these four interrelated fields as a unit.

But CPCC is not alone in recognizing the combined need for these fields in the modern, high-tech workforce. “The Committee on STEM Education (CoSTEM), comprised of 13 partner agencies—including all of the mission science agencies and the Department of Education—will facilitate a cohesive national strategy, with new and repurposed funds, to reorganize STEM education programs and increase the impact of federal investments in five areas: P-12 STEM instruction; increasing and sustaining public and youth engagement with STEM; improving the STEM experience of undergraduate students; better serving groups historically underrepresented in STEM fields; and designing graduate education for tomorrow’s STEM workforce.

Dean Paynter said that CPCC just celebrated their 50th anniversary and now has six campuses located throughout Mecklenburg County. CPCC’s mission is to be “an innovative and comprehensive college that advances the life-long educational development of students consistent with their needs, interests, and abilities while strengthening the economic, social, and cultural life of its diverse community.”

He said, “We believe that there is shared responsibility between employers, schools, and families in developing an educational infrastructure that provides a skilled STEM workforce for the greater Charlotte region.”

He explained that the College has created career pathways that have multiple entry points, such as High School graduates, military veterans, incumbent workers, and displaced workers to provide access to structured training paths for the development of highly sought after STEM career skills.

He added, “More and more employers are seeking graduates from associate degree programs because of the practical, applied, and competency-based nature of those programs. These graduates are able to quickly apply the real world job skills they leaned at school and are very productive when hired.”

CPCC is a “Learning College,” which means it places learning first and provides educational experiences for learners any way, anywhere, anytime. In support of this initiative, four core competencies have been identified as critical to the success of every CPCC graduate. The competencies are:

  • Communication: the ability to read, write, speak, listen, and use nonverbal skills effectively with different audiences.
  • Critical Thinking: the ability to think using analysis, synthesis, evaluation, problem solving, judgment, and the creative process.
  • Personal Growth and Responsibility: the ability to understand and manage self, to function effectively in social and professional environments and to make reasoned judgments based on an understanding of the diversity of the world community.
  • Information Technology and Quantitative Literacy the ability to locate, understand, evaluate, and synthesize, information and data in a technological and data driven society.

Central Piedmont Community College (CPCC) recently joined 130 other community colleges from around the country as a member of the Achieving the Dream: Community Colleges Count! Initiative designed to identify new strategies to improve student success, close achievement gaps, and increase retention and completion rates.

Workforce Training

Dean Paynter said that CPCC provides up-to-date technical skills to the Charlotte region’s workforce and employers. The CPCC Engineering Technologies Certification Center was created to assist this effort by providing proctored credentialing exams for nationally recognized third-party industry credentials, such as the Manufacturing Skills Standards Council, National Institute of Metalworking Skills, North American Board of Certified Energy Practitioners, Packaging Machinery Manufacturers Institute, Siemens Mechatronic Systems Certification Program.

He added that advisors and instructors for CPCC’s Corporate Learning Center work with companies to assess their needs and recommend a customized solution, utilizing the comprehensive training approach offered by the IST Lab. Training can be scheduled at a time/date that is convenient for the client.

Companies that have benefited from this program include: Coca Cola Bottling Co. Consolidated, Sun Chemical, Timken, and Solectron.

Apprenticeship Programs

Dean Paynter said that CPCC provides apprenticeship programs in partnership with local companies:

Apprenticeship Charlotte – Programs vary, but usually consist of an employer and student agreement and approval by an appropriate entity. In North Carolina, formal or registered apprenticeships are created in agreement with the N.C. Department of Labor (NCDOL).

Apprenticeship 2000 – The Apprenticeship 2000 program is a 4-year technical training partnership in the Charlotte, NC region designed to develop people for such a workforce. Juniors and seniors from local high schools are recruited: Some of the advantages include:

  • AAS degree in Mechatronics Engineering Technology
  • Apprenticeship Certification
  • Earn a min. of $34,000/year at completion
  • Benefits (Medical/Dental, Paid Holidays)
  • Guaranteed Job after Graduation

CPCC works closely with the approximate 200 German companies with facilities in the Charlotte region, including BMW and Siemens. These companies employ about 15,000 people.

Dean Paynter said that earlier this month, CPCC and Festo Didactic SE, headquartered in Denkendorf, Germany, signed a letter of intent to establish a North American training center, to be located on CPCC’s Central Campus. The press release stated:

“The joint venture, to be called the “Festo-CPCC Learning Center of Excellence,” will be developed in stages, with the first stage operational by early 2015. The center will advocate the growth and development of advanced manufacturing in the United States, while giving CPCC students and incumbent workers a one-of-kind opportunity to become highly skilled operators of the latest high-tech manufacturing equipment.

Festo Didactic is a world-leading equipment and solution provider for industrial education. Festo Didactic designs and implements learning laboratories, educational equipment, and programs that train workers to perform in highly dynamic and complex industrial environments. The goal of Festo Didactic is to maximize learning success in educational institutions and industrial companies around the globe.

Festo AG, the parent company of Festo Didactic, is a global supplier of solutions in pneumatic and electrical automation technology to 300,000 customers of factory and process automation in more than 200 industries and 176 countries around the world.

‘We intend for our new joint venture to become the ‘gold standard’ for technical education and training in the United States and North America,” said Dr. Daniel Boese, managing director of Festo Didactic. “Through this large-scale initiative, we will advocate and promote advanced manufacturing as a viable, attractive and lifelong career option for students and new and incumbent workers in the U.S.’

‘One goal of this joint venture is to establish a showcase for advanced manufacturing and to create a broad-based sense of excitement and passion for the advanced manufacturing sector in the United States,’ said Dr. Tony Zeiss, CPCC president.

‘We have big ambitions for this center. We’ll endeavor to provide comprehensive workforce development and training programs and solutions to address, at regional and national levels, the ongoing mid-skills training gap that hinders U.S. advanced manufacturing,,,’ Zeiss said.”

This agreement follows an initiative the college undertook with German industry when it signed a cooperative education agreement with IHK Karlsruhe, a German regional chamber of industry and commerce in April 2012. CPCC became the first U.S. community college to offer IHK-certified job-training programs.

Engineering Summer Camps

In an effort to attract youth to manufacturing and other STEM careers, Dean Paynter said that the college also offers a one-week summer camp where students can learn hands on skills and apply their creativity. Math, science and engineering converge in camp activities and projects for a deeper understanding of how to apply these in real life. Using “contextual learning” high-school aged students build, analyze, and test either their own Bio-Mechanical Hand or own 3D Printer while learning fundamentals of electrical, mechanical, and computer engineering. At the end of the camp, the student is able to keep either the Bio-Mechanical Hand or 3D printer and have the knowledge and skills to fix it.

Workforce development is another way to address the skills gap in the manufacturing industry, as well as other science, math, and engineering career paths. In addition to focusing on training existing employees, companies need to be willing to hire and train older, unemployed workers that still have plenty of real-world know-how and technical expertise to off their employer. Many “Baby Boomers” would gladly delay their retirement if they had the opportunity to learn new skills to make their jobs more interesting and challenging.

Posted in Education, Manufacturing, Training | No Comments »

How to Combat the Manufacturing Skills Gap

Monday, September 1st, 2014

“Creating a robust pipeline of workers to address the needs of U.S. manufacturers has become a national priority” according to a recently released report by ToolingU, a division of SME (formerly the Society of Manufacturing Engineers) titled, “Using Competency Models to Drive Competitiveness and Combat the Manufacturing Skills Gap.” The report discusses the results of a survey on the skills gap and current training, defines competency vs. competency models, explains different models, and explores best practices.

American’s manufacturers are increasingly challenged to find the skilled workers they need to fill good jobs. As more and more “Baby Boomers” retire, we need to address this issue if we want to keep the manufacturing engine going and growing to keep our economy strong.

Currently, 9 out of 10 manufacturers are having difficulty finding skilled workers and they say this is directly hurting the bottom line, according to a 2013 SME and Brandon Hall survey. In fact, the survey revealed:

  • 64% of manufacturers say productivity losses are a result of a skills gap.
  • 41% cited quality losses
  • 56% report the gap in skilled labor has impacted their company’s ability to grow
  • 78% cited a lack of qualified candidates as one of the top two factors that impacted
  • their ability to hire a skilled workforce
  • 78% cited a lack of qualified candidates as one of the top two factors that impacted
  • their ability to hire a skilled workforce

There are four main reasons for the skills gap:

  • Limited pipeline – Fewer people are pursuing Science, Technology, Engineering and Math (STEM) education and fewer youth are choosing manufacturing as a career.
  • Retiring workforce – Baby Boomers are retiring and about 10,000 per day will turn 65 for the next 19 years.
  • Changing pace of technology – Technical innovation is moving so quickly that it can be a challenge for workers who are unable to keep pace and are left behind.
  • Reshoring – Returning manufacturing back to the U.S. creates a bigger demand for jobs.

In January 2014, President Barrack Obama signed a memorandum to initiate a review of all the federal training programs to “develop a specific action plan…to make the workforce and training system more job-driven, integrated, and effective.”

Additionally, recent government investments in the Manufacturing Innovation Centers, as well as a new $450 million round of the Trade Adjustment Assistance Community College and Career Training (TAACCCT) Grants Program demonstrates the commitment to solving these workplace issues.

The SME survey asked if the organization had a company-wide plan in place to address its skills gaps. The responses were:

  • 54% “No, we do not have a company-wide plan in place for filling our skills gaps among skilled workers in critical roles at this time.
  • 26% Yes, we have a company-wide plan for filling our skills gaps among skilled workers in critical roles through the next 12 months.
  • 14% Yes, we have a company-wide plan filling our skills gaps among skilled workers in critical roles through the next 5 years

The survey asked if the company’s skilled workforce training programs are built on specified competencies defined in job roles ? 71% said yes, 23% said No, and 6% said they don’t know.

In answer to the question about the best description of your company’s current approach to defining “skilled worker” roles, the responses were:

  • 40% We have written job roles, competencies, experiences, and education.
  • 21% We have general written job roles only.
  • 18% We have defined workforce roles in terms of written job roles, competencies (skills and behaviors), experiences, education, cognitive abilities, motivation factors and cultural fit.
  • 10% We have competency based written job roles only.
  • 9% We have not defined our “skilled worker” roles.
  • 1% Don’t know.

In the last 20 years, the training process has become much more sophisticated. Training is no longer one size fits all. Organizations are looking at employees individually and building customized training programs specifically to fit their strengths and weaknesses.

Professional and technical certifications provide objective confirmation and assurance of skill achievement in various areas of technical expertise. Certification validates a level of expertise and provides employees with advancement opportunities that motivate them to continue learning.

Certification organizations, such as the National Institute of Metalworking Skills (NIMS), Manufacturing Skills Standards Council (MSSC), SME, and American Welding Society (AWS), require manufacturers to show that employees have applied and retained the knowledge and skills they received through training.

The report contrasts “competency” with a “Competency Model.” Competency is defined as the capability to apply a set of related knowledge, skills, and abilities (KSA) to successfully perform functions or tasks in a defined work setting. They serve as the basis for skill standards that specify the KSAs needed for success and measurement criteria for assessing competency attainment. A competency framework is used to design a plan specific to a particular manufacturing environment or organization or when there are no manufacturing certifications tied to desired job roles.

A competency model is defined as a collection of competencies that together define successful performance in a particular work setting. Competency models are the foundation for functions such as recruitment and hiring, training and development, and performance management. Competency models can be developed for specific jobs, job groups, organizations, occupations, or industries.

There are two main industry competency models for manufacturing in the marketplace:

Department of Labor (DOL) Advanced Manufacturing Competency Model – Created by the Employment and Training Administration (ETA) and other industry organizations, the Advanced Manufacturing Competency Model is a broad platform outlining critical work functions and topical areas. It includes crosscutting competencies applicable to various industry sectors.

Tooling U-SME Competency Framework or Manufacturing Excellence – Created by a cross-section of manufacturing experts and introduced in 2014, the tool features a comprehensive series of competency models in nine manufacturing functional areas and is made up of more than 60 job role competency models, each outlining knowledge and skill objectives for job roles in production, technician, lead technician/technologist and engineer levels. Designed to complement other competency models in the marketplace, the Competency Framework can be used “as is” or customized to individual work practices at a facility. The framework is mapped directly to Tooling U-SME’s extensive training resources and a specially designed system allows for seamless validation and record keeping.

Implementing an ISO quality management system to obtain certification or becoming a Lean enterprise requires a talent development program, which means training. Companies are finding that competency models provide the rigor needed to meet the ISO and Lean quality objectives, guidelines, and reporting requirements.

Competency models allow companies to combat the increasing talent shortage and achieve stronger performance from their workforce while providing clear development pathways and career growth opportunities for their employees.

Advantages for companies:

  • Ensures enterprise-wide consistency making the workforce more flexible and dynamic.
  • Streamlines the training process and cuts costs by eliminating unnecessary/redundant training to focus on true needs.
  • Helps managers easily evaluate worker performance levels defined using specific behavioral indicators, which reduces subjective assessment and increases assessment accuracy.

Advantages for employees:

  • Enhances employee satisfaction based on the rationality of the system.
  • Defines and explains to each worker what they need to do to improve their skills.

The first step to get started is for human resources to work with production and operations managers to develop job descriptions that accurately define the qualifications needed by workers, including both knowledge and skills. This analysis provides the foundation for a program that meets a company’s objectives related to budget, consistency, measurability and results.

Good training requires both knowledge and skills that may not come from informal knowledge transfer or tribal learning. It requires understanding the concepts of what and why a job is done a certain way, and then requires on-the-job training to validate that the worker can fulfill the needs of that job.

The key is commitment from top management down to individual employees. It is important to communicate to all employees that the focus is on knowledge and skill requirements of the job and align training designed to help each person perform his or her job more efficiently, while providing new growth opportunities. An effective training program will include a validation process that not only tests a new skill but provides employees with the opportunity to gain new skills, apply them on the job, and then have their new skill sets validated through assessments, testing, and certifications.

A well-designed competency model can become the foundation for performance management, talent acquisition and leadership development for manufacturing companies. To combat the current and future talent gap and build a high performance team, it is critical for companies to have a system in place to codify knowledge and skills required for specific job roles aligned with the appropriate training.

 

Posted in Education, Jobs, Manufacturing, Training | 1 Comment »

STEM Education Matters to our National Security, Innovation and World Leadership

Tuesday, July 22nd, 2014

Over the last 230 years, the United States became a global leader, in large part, through the genius and hard work of its scientists, engineers and innovators. Today, a little over 4% of the workforce is employed directly in science, engineering, and technology. Yet, this small group of workers is critical to economic innovation and productivity.

Science, technology, engineering, and mathematics (STEM) are widely regarded as critical to be competitive in the global economy. A growing shortage of science-based talent in our workplaces and universities represents a serious problem for our nation. Expanding and developing the STEM workforce is a critical issue for government, industry leaders, and educators. However, comparatively few American students are pursuing educational majors in STEM career paths.

If we want to attract today’s youth to careers in science, engineering, mathematics, and high-tech manufacturing, we need to show them the variety of career opportunities that exist in these industries. We need to change their perceptions about what the manufacturing industry is like and help them realize that manufacturing careers pay 25-50 percent higher than non-manufacturing jobs, so they will choose to be part of modern manufacturing.

As I have written in past articles, we need to reacquaint youth with the process of designing and building products from an early age and provide them with the opportunities to learn in both traditional and non-traditional ways. Experts agree that we need to restore shop classes to our high schools and establish apprenticeship programs to improve the image of manufacturing careers and portray manufacturing careers as fun and exciting.

The SME (formerly Society of Manufacturing Engineers) “Making Manufacturing Cool” program and the National Association of Manufacturers (NAM) “Dream It. Do ItTM” program are helping to expose our youth to the modern manufacturing environment and change the image of manufacturing to one that is “cool” and full of exciting career opportunities.

These new programs are building on the work of the non-profit organization, Project Lead The Way®, which has been working since 1997 to promote STEM curriculum for middle and high school students during the school year, along with the Gateway Academy, which is a one- or two-week day camp for 6th – 8th graders that includes team-building exercises, individual and team projects, and utilizes the latest technology to solve problems.

However, none of the above programs are geared specifically to girls, and it is an even bigger challenge to attract girls and young women to technical careers. Studies have shown that when role models and mentors are provided to girls, they are more likely to follow a similar career path.

Now, there is a new program in development by Invincible Enterprises, ME, Inc., an online and mobile app that provides Role Models, a Game Plan and Mentoring options to encourage teens to create a life of fulfilling rewards by enter thriving careers in STE@M industries. Helping with ME, Inc. are advisors with significant workforce, career development, empowerment, and business expertise. The program incorporates a PLAYBOOK for Teens, created by Cari Lyn Vinci & Carleen MacKay, which is available in print and digital format at Amazon.

In the PLAYBOOK, girls can meet fascinating women in STE@M (the “@” stands for “art”) and follow the “plays” of successful young women to help them create their own “Dream Career.” The PLAYBOOK is dedicated to the smart, talented teenage girls who will become the future business owners and leaders in STE@M industries. It will also provide a tool for organization and corporate partners to use to solve their future talent pool problems.

Permission was granted for me to share the following two role model stories:

Allison Goodman’s story – Allison is a young woman with a talent for stretching her limits. Allison, an electrical and computer engineer at Intel, is a pro at solving new problems by creating new, patentable ideas. She is particularly interested in increasing computer speed to help people connect and share data faster than ever before. To accelerate getting information around the world so it feels instantaneous, Allison creates products that are a combination of writing software programs and electrical components that together try to predict what we want to accomplish with our computer.

Her story began when she started to sort out and prioritize the different things that she found interesting. She tried, but couldn’t find that “one thing” that was most important to her. Allison’s father helped by telling her he would pay for ONE year of school – but only if she studied engineering. Since this was the only deal offered, she accepted it and left home for college.

Allison came to appreciate her father’s wisdom. It helped her become self-reliant. Knowing she had to pay for the balance of college, Allison applied for scholarships and soon discovered that scholarships in engineering were not as difficult to get as she had once thought. While Allison had initially struggled to find the “one thing” she wanted to do, she now realizes that the opportunity to study hands-on engineering opened her eyes to a number of options that she had never considered.

Today, Allison finds challenges and opportunities at Intel. She has been able to change roles every few years and her technical talents have led to positions in project management and customer service. Imagine. Allison has travelled to 22 countries on behalf of Intel, has met interesting and dynamic people, continues to learn about the world, and finds that new opportunities are always around the next corner. Fantastic!

Adrienne Huffman’s story – This story tells the tale of a curious young girl who found that computer engineering and electrical engineering both challenged her curiosity. What to do? She graduated from Florida A&M University with two degrees: a B.S. in Electrical Engineering and a B.S. in Computer Engineering. Then, she topped off her Bachelor’s degrees with an M.S. in Electrical Engineering from Iowa State.

In college, Adrienne was active with the National Society of Black Engineers. They provided encouragement and a venue to develop her leadership skills. Adrienne was inspired by members of Delta Sigma Theta Sorority, an organization she later joined. Adrienne identifies with the motto of Dr. Paulette Walker, the 25th National President of Delta Sigma Theta Sorority, “No one can make you feel inferior without your consent.” Powerful words of inspiration to young women who, in addition to their commitment to academic learning, must develop strong senses of self-worth in order to reach their goals.

Adrienne’s academic interests developed along the way. She, like so many people, began pursuit of a career in computer engineering but found that her interests shifted as she learned. Early influences included her parents who taught her the valuable lessons she lives by today. Notably, they taught her “in order to achieve success, you have to continue to push through hard moments.”

Today, Adrienne is a Hardware Engineer at a Fortune 100 company. Her career has rewarded her with a very comfortable lifestyle even as hard work continues to challenge her. She is very active in community focused, professional organizations, and travels frequently. She takes some time and money for herself and enjoys shopping as a self-directed reward strategy. Many wise people believe that it is this balance of learning, working hard, giving and taking that is the most powerful argument for achieving a life well lived.

At the end of each story, the Playbook Role Models share heart-felt advice for girls to apply to their career path. Then, questions are asked of the reader to help them take the first step to writing their own playbook.

In the “Afterword,” Ms. Vinci and Ms McKay wrote, “Although the young women you read about come from diverse backgrounds and were born with various talents, dreams and personalities, they share several important characteristics. First, they look at life as a year round school. They embrace the role of “student” beyond their formal education. Committed to growth, these ladies are aware and open to the possibilities the world offers. Second, they understand that success is not fast or easy. Failure at the beginning is common and they used early “unsuccessful outcomes” as part of the learning process. They said YES to opportunities and added life experiences to their playbook of skills. Third, these young women took responsibility. They understand, “IT’S UP TO ME TO CREATE THE LIFE I WANT TO LIVE.” Based on a future they dreamed of, they developed the skills necessary to take control and design the lives they want. And, existing resources didn’t determine their success. They succeeded because they believed in themselves. It was their courage, willingness and determination that led them to be exceptional rather than average.”

Utilization of the Playbook for Teens will help teenage girls see that STEM career paths offer enormous opportunities for them to create the life they want to live. Perhaps SME, NAM and Project Lead The Way® would benefit from incorporating the Playbook for Teens into their programs.

Posted in Education, Jobs, Manufacturing, Training | No Comments »

Manufacturing Thrives in San Diego’s North County Region

Tuesday, July 8th, 2014

On the morning of July 1st, the San Diego North Economic Development Council (SDNEDC) hosted a North County Manufacturing Executive Roundtable at the City of Vista Civic Center. Over 100 professionals were welcomed by County Supervisor Dave Roberts and Lee Morrison of Bank of America. Bank of America and The Eastridge Group of Staffing Companies sponsored the Roundtable.

In an interview prior to the event, KPBS Morning Edition anchor Deb Welsh spoke to Carl Morgan, CEO of the San Diego North Economic Development Council. Morgan said. “Manufacturing is alive and well in San Diego’s North County.” He said the manufacturing executive roundtable would discuss why companies chose to locate and stay in the region. Ms. Morgan asked him what North County’s six key industry clusters are, and he responded that “the sports and active lifestyle, clean technology, biotechnology and medical and informational technology “are doing very, very well” besides the craft and brew industry.

Reo Carr, executive editor of the San Diego Business Journal, moderated the panel, which also discussed such topics as reshoring of manufacturing, environmental concerns, filling the gap between education and manufacturers’ need for skilled labor, sufficient, accessible transportation, and the economic incentives that are and should be available.

The six panelists were: Clark Crawford, VP Sales and Business Development, Soitec Solar, which manufacturersconcentrated photovoltaic (“CPV”) solar modules; Christine Jensen, special programs coordinator at Mira Costa College, which offers classes in biotechnology, engineering, and machining; Jeffrey McCain, CEO, McCain, Inc, a pioneer of advanced traffic control equipmentas well as a contract manufacturer; Michele Nash-Hoff, President, ElectroFab Sales and Chair, California Chapter of the Coalition for a Prosperous America; Chris Roth, vice president, Lee & Associates, the Nation’s largest broker owned commercial real estate services firm.; and Martin Wood, CEO, Delkin Devices, the largest US memory card manufacturer.

Crawford said that when his company (Soitec Solar Industries headquarted in Grenoble, France) decided to set up another manufacturing plant in the U.S., they were wooed to come to many states, including Texas, but they chose to move to California because California’s GO-Biz worked with them to identify possible site locations around the state and to define all statewide incentives that could be available to their company. GO-Biz participated in several rounds of site selection tours that helped to qualify the final locations, out of which they chose San Diego. They were able to get the former Sony building in Rancho Bernardo before it went on the open market. When fully operational, Soitec will directly employ 450 and indirectly support 1,000 jobs.

The other reason they chose California is that it is the largest market for solar energy, and California offers good financial incentives for residents and business to convert to solar energy.

Crawford mentioned that GO-Biz also worked with the California Employment Training Panel (ETP) staff to help qualify Soitec for training funds to help their company train and prepare employees for the high-skilled jobs at their newly established factory in San Diego. During my subsequent phone interview, Mr. Crawford told me they were awarded $300,000 in training funds by the California ETP, and they provided over 15,000 training hours to their San Diego employees. They completed the training in early April 2014.

When asked why his company stays in California instead of moving to another state, McCain said, “California is currently the 8th largest economy in the world. A tremendous amount of our business, current and future, will come from this economy. Even though it is still difficult to find qualified employees, it is my experience that California is rich in qualified workforce, compared to other states.”

He added, “Our success depends greatly on the advantages of our workforce in Mexico. However, over the last 20 years, I have come to realize the culture in Mexico makes it difficult to do manufacturing that requires ingenuity and innovation. We will typically do our first articles and fixturing and any automation type manufacturing in the U.S. When it comes to labor intense, higher volume products, we can turn it over to the plant in Mexico where they can be very successful producing quality products. That allows the company to compete successfully, not only in the U.S. but also against offshore companies. The operation in Mexico, just over the last two years, has allowed us to grow our U.S. side, which has nearly 200 employees.”

In contrast, Martin Wood, stated, “We are solicited often by other States to move our manufacturing facility and jobs to NV, TX, FL, AZ and others. While it would be disruptive, in all cases, it would be like handing employees and the company a raise. Lower or zero State taxes is a big incentive to move. “

“While previous offers were less appealing, they are becoming more and more sophisticated involving real estate and grants, development and hiring help, and of course, no taxes for an extended period or permanently. Any business that is truly run for profit above all would be foolish to not at least consider these offers. We try not to let it consume us, and only entertain them on an annual basis. Right now, California edges out other states in our analysis, based on a number of support, service availability, and quality of life issues, but the gap is narrowing.”

“People in City, County and State Government should be aware this poaching is going on, and try to find a way to bring advantages to manufacturers in California and incentivize them to stay. We know we bring high paying employment wherever we go, and our customers are based worldwide. I see no reason these offers will not continue and expect them to get more and more appealing. Don’t get me wrong, I love California and my family is firmly entrenched here, but to truly own and manage a manufacturing business, you must make hard decisions and be right most of the time.”

Roth stated “the quality of life here in Southern California is a great incentive for companies to continue operating here even though [manufacturing companies] are not receiving the same type of incentives from the local and state governments.” This was one of the major points made in explaining why manufacturers tend to stay in California, despite the sometimes harsh business environment. Roth also stated that a key decision factor in contemplating company relocation is the difficulty entailed in moving employees and their families.

I commented that a company is more than a product; it is also the people who formed and comprise the existing company, and many times, employees aren’t willing to relocate to another state, and the company loses people key to its success. This is often what happens when an out-of-state company buys a San Diego regional company. Key employees don’t move with the company, and the acquisition becomes “buying a product” rather than “buying a company.” In addition, I pointed out that over 90% of California’s manufacturers are less than 100 people, and their customers are most local obtained through word of mouth and referrals. If they decide to move the company, it would be as if they started a new company from scratch.

When Reo Carr asked the question about reshoring, I explained that it started because of quality issues and expanded because of increases in wages in China over the last few years. I mentioned that China and other Asian nations don’t honor U.S. patent laws, which leads to intellectual property theft, hurting U.S. companies in the long run. The other panelists added their opinions as to why outsourcing manufacturing to China is becoming of a thing of the past (increasing wages, quality control, and logistics problems and problem-resolution) and why America is benefiting from the shift to returning manufacturing to America.

McCain confirmed that the contract manufacturing division of his business is benefitting from regional companies returning manufacturing to America.

In answer to the question about the impact of environmental and other regulations, I pointed out that we have been outsourcing our pollution to China and other Asian countries to escape the costs of regulation here. The consequences of industrialization with environmental regulations has been horrific for China and India, which I described one of the chapters in my book (Can American Manufacturing be Saved? Why we should and how we can) When asked about the environmental regulations that apply to his plant in Mexico, Mr. McCain said that Mexico is quickly catching up with the U. S.

A question from the audience about the shortage of local, trained machinists led into a discussion about two connected issues: workforce training and mass transit. Ms. Jensen shared that colleges are shifting in the programs they are now offering in an effort to meet the needs of employers. Mira Costa has both certificate and Associate degree courses in biotechnology, engineering, and manufacturing skills such as machining. She encouraged the companies to check with their local community colleges to inquire about the various programs available. I shared that there are now four high schools that provide up to two years of training to be a machinist and that for years and years, the San Diego Community College District has provided machining and welding training, as well as other manufacturing skills.

Wood said, “it is hard to find people to fill the positions they need, because most of [the blue collar laborers] live further south, in South County.” Crawford seconded that comment, saying that workers are coming from points south, as well…even from Mexico. McCain added mass transportation needs to improve to deal with the issue of where employees are traveling from to accommodate the job availability.

I pointed out that San Diego doesn’t have a “hub” center of manufacturing where everyone is going to work. The industrial business parks are scattered around the county (mainly in 13 of the 18 cities in San Diego County). Mass transit doesn’t work well for this type of region, and I don’t know how feasible it would ever be for mass transit to get workers coming from across the border to these scattered business parks.

In conclusion, the panelists shared that for the time being, the advantages of doing business in California outweighed the disadvantages. The biggest draw is still the quality of life the region offers, as well as the great weather. I shared that the successful company that stays in San Diego has a high dollar, high value, low to mid volume product, which has proprietary technology and lower labor content. When this type company does a Total Cost Analysis of doing business in San Diego/California, it pencils out positively. Crawford agreed that doing this kind of analysis is what enabled them to make the decision to locate Soitec in San Diego.

While it is hard to compete against the incentives and low or no taxes of some other states, we may have fewer companies making the decision to move out of California if more companies did this type of analysis. Of course, it would be even better if the governor and legislature actually proposed and passed legislation that would benefit manufacturers instead of adding to their costs of doing business in California.

 

Posted in Economic Development, Jobs, Manufacturing, Nearsourcing, Reshoring, Taxes/Regulations, Training | No Comments »

Del Mar Electronics & Design Show – “Innovation…Through Face-to-Face Interaction

Tuesday, April 22nd, 2014

Don’t miss the Del Mar Electronics and Design Show on April 30th and May 1st at the Del Mar Fairgrounds. The show is an annual trade show and convention for people who design, manufacture, and test products. The two-day event is free for industry professionals and will be held at the Del Mar Fair Grounds with plentiful free parking and easy highway access. Show hours are 10:00 AM – 5:00 PM Wednesday, April 30th and 10:00 AM – 3:00 PM, Thursday May 1st. For more information or to register, visit www.vts.com.

Over the last 18 years, the show has evolved from a sales rep/distributor show to become a major exhibition of local, regional, and national manufacturing companies and organizations.

Program Manager Douglas Bodenstab stated “Manufacturing in America is experiencing resurgence due to many factors, especially the new and exciting technologies that are abundant here in Southern California, and this event is riding that wave.”

New technologies will be displayed on the show floor with over 500 exhibitors. Dozens of free seminars will be provided on both show days. A few of the topics to be presented are:

How Does 3D Printing Apply to your Business?
3D Printing – Overview of Available Technologies & Commercial Applications
Computer-Aided Engineering for the Electronics  Industry
Telepresence Robots for Factory Support
Lithium Battery Technology Update
Optimizing Crowd Sourcing Funding Success Using Engineering Methodologies

I will be one of the keynote speakers at the show on the topic of American Manufacturing Trends:  “Reshoring,” Nearsourcing & Technical Training at 10:00 AM Wednesday, April 30th, Room D in the Mission Tower building, (across from the show registration).

Cost savings of outsourcing in China are eroding from higher labor rates and shipping costs. Quality problems, counterfeit parts & IP theft cause companies to rethink where to source. I will discuss the latest trends of nearsourcing and reshoring and how to calculate Total Cost of Ownership using Reshoring Initiative’s worksheet, sharing a few case stories of companies reshoring. In addition, I will describe the availability of technical training in the region to address shortage of skilled manufacturing workers.

The other keynote speaker is Daniel O’Leary, Award Winning Author & USC Marshall School of Business Professor, who will present “Social Media and the Supply Chain” at 4:00  PM on April 30th in Room B in the Mission Towers building.

This presentation will investigate capabilities of social media, such as Facebook, Twitter, Delicious, Digg. and others, for their current and potential impact on the supply chain. In particular, this talk will examine the use of social media to capture the impact on supply chain events, analyze the use of social media in the supply chain to build relationships among supply chain participants, and investigate the of use of social media to mitigate and manage the impact of supply chain disruptions.

My company, ElectroFab Sales, will be exhibiting at Booths 207 – 209 in the Bing Crosby Hall at the show. We will have sample parts on display for:

Century Rubber Company – molded and die cut rubber parts, conductive rubber keypads, ISO certified
Bolero Plastics – plastic vacuum and pressure forming, precision plastics machining, and fabrication including secondary operations such as routing stamping, painting, EFI/RFI shielding, silk screening and assembly.
Mina Product Development Company – rapid 3D & SLA prototyping, cast urethane and cast silicone, injection molding of small to medium parts in thermoplastic & elastomeric materials, assembly & special packaging
True Position Machining – CNC and manual machining, turn and mill)

Three of the companies we represent will have their own booths in the Exhibit Hall:  A&G Industries, Alva Manufacturing, and A Squared Technologies. Please drop by all of our booths.

Posted in Innovation, Manufacturing, Reshoring, Training | No Comments »

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