OVERCOMING THE MANUFACTURING SKILLS GAP A GUIDE FOR BUILDING A WORKFORCE-READY TALENT PIPELINE IN YOUR COMMUNITY Developed by the NAM Task Force on Competitiveness & the Workforce / Summer 2014
Overcoming the Manufacturing Skills Gap: A Guide for Building a Workforce-Ready Talent Pipeline in Your Community Goals: n Organize manufacturers to speak with one voice regarding the workforce needed to sustain and grow manufacturing n Engage and align key stakeholders—community leaders, education institutions, local/state officials—to take action and build momentum n Together, build a system that delivers a sustainable pipeline of strong, mid- skilled manufacturing talent Four Steps to Build a Manufacturing Talent Pipeline: 1. Assess and Connect 2. Align/Collaborate with Other Manufacturers 3. Engage Educational Institutions, Other Training Providers 4. Create a System to Build and Sustain a Talent Pipeline
Assess and Connect 1. Determine your organization’s hiring needs. Before you align with other manufacturers, you’ll need to understand your own company’s skills gaps and short- and long-term hiring needs. Some elements of this effort can be resource-intensive. Every company is different, but consider who will act as representatives of your company during the initial stages of the process—often the business leader, plant manager, HR manager, etc.—and who will staff the effort once a system has been established. Note that if you instigate this effort with other area manufacturers, you will likely need to continue to play the role of convener until the effort has momentum and the group can collectively agree upon long-term roles, responsibilities, processes and operating rules. 2. Assess available training programs and determine needs for other options. Inventory programs being used by your company/other local manufacturers: A variety of manufacturing skill-building programs already exist. Before you add a new program, or seek to modify others, you will want to have a firm understanding of the programs that exist and how effectively they deliver the volume of skilled workers needed to match your needs and those of other manufacturers. Your Business’s Program “Owner” Key Elements What’s Working? Not Working/Gaps? Existing Programs Program #1 Other Programs Available Program “Owner” Key Elements What’s Working? Not Working/Gaps? in the Community Approach #1 (e.g., Apprentice Program with Local High School)
Assess and Connect 3. Connect with stakeholders outside the company who may be working on this issue to gather information and build relationships. When starting your initiative, it’s important to know and determine which of the non-manufacturing individuals and organizations working on the topic you want to engage in your community. By understanding their initiatives and goals— and informing them of the leadership role the manufacturing industry is taking—you can a) reduce the risk of negativity and opposition and b) gain their support and assistance to create systemic change. When generating your list of stakeholders, think about who is already working on initiatives related to the manufacturing skills gap. Who would we want to be aware of this effort…to collaborate and support with money/time/resources? Consider: Local Chamber Area School Districts Economic Development Office Community College System Government and Proprietary Training Partners State Manufacturers’ Association Mayor’s Office Other? Stakeholder List Organization Name Organization Contact Contact Info Program(s) Who Will Make Contact? Name/Title
Assess and Connect 4. Look elsewhere in your state and in others to gather ideas for solutions to your area’s needs. Possible Data Sources n State cabinets for education and training/workforce development n Regional workforce investment boards http://www.servicelocator.org/WorkforceContacts.asp n State associations of manufacturers n National Association of Manufacturers http://www.nam.org n Manufacturing Institute http://www.themanufacturinginstitute.org n Local economic development organizations n Community college systems http://www.aacc.nche.edu/Pages/CCFinder.aspx n http://www.ntma.org/initiatives/workforce-development
Align/Collaborate with Other Manufacturers Brainstorm a list of potential partners, if a local manufacturing group does not already exist. Potential sources: local chamber; state manufacturing association; local “Book of Lists,” often published by local business newspaper; local economic development agencies; Google; etc. Invite them to a meeting (teleconference, face-to-face, webex) to discuss your initiative, assess interest and plan next steps. Working on Co./Industry Number of Contact Name Contact Info Type of Mfg.* Pipeline Dev.? Group Name Employees* Y/N* *If known
Align/Collaborate with Other Manufacturers It’s important to get a baseline among your manufacturing alliance members regarding their current employee skill development programs: what’s working, improvements needed and how a multi-employer training approach could help serve their needs. Consider gathering this information in a group meeting with your manufacturing partners. This will give gathered members a visual look at the common areas of concern/possible collaboration. Current Feedback on Approach for Not Working/ Critical Skills to Company Name What’s Working? Multi-Employer Employee Skill Gaps? Be Developed Training Model Development
Align/Collaborate with Other Manufacturers Have a quantitative understanding of the problem you are trying to solve by assessing the hiring needs, training efforts, workforce development programs and current and anticipated skills gaps of the individual manufacturers. Consider conducting a brief, baseline survey if this combined data do not currently exist. Sample Survey:
Align/Collaborate with Other Manufacturers Sample Survey (Continued):
Align/Collaborate with Other Manufacturers Sample Survey (Continued):
Align/Collaborate with Other Manufacturers Sample Survey (Continued):
Align/Collaborate with Other Manufacturers Once you’ve gained consensus among member companies regarding the actions your group wants to take to build a system that delivers a sustainable pipeline of strong, mid-skilled manufacturing talent, it’s important to prepare a Call to Action. This document becomes the roadmap your group will follow and sets the agenda for a community-wide response. After your Call to Action is complete, plan how you will promote it among key stakeholders to gain their engagement and support. A Blueprint In June 2014, a group of manufacturers in Louisville, for Bridging the Industrial Kentucky, published “A Blueprint for Bridging the Industrial Skills Gap Skills Gap: Urgent Call to Action from Greater Louisville Urgent Call to Action from Greater Louisville Manufacturers Manufacturers.” The group is using the Blueprint to increase awareness, engagement and support in the community. For a copy, contact Debbie Wexler at deborah.wexler@ge.com .
Align/Collaborate with Other Manufacturers Another example of a Call to Action is the one below from the Arizona Manufacturing Partnership (AMP). AMP is an industry-led group that identified three key goals, which needed focus and action from state stakeholders in order to support manufacturing needs. To learn more about the AMP, visit http://prezi.com/pavtgopij7y5/arizona-manufacturing-partnership-presentation/
Engage Educational Institutions, Other Training Providers Once your manufacturing alliance has defined a solution that would serve identified, common needs, you need to evaluate and engage area training providers. If the alliance has doubts about an institution’s ability to meet its needs, demand reforms or keep looking. Competition for a partnership will generate better outcomes. Picking Your Provider: n n Update/expand the program list you generated in Describe the competencies needed for successful the Assess and Connect phase. program completion; the process for obtaining additional information; respond-by date; and n If you haven’t already done so, consult the decision-making timeline. Manufacturing Institute’s list of high schools, n community colleges, technical colleges and Other issues to consider: universities that teach manufacturing skills n Can the RFP be issued in the name of per industry standards and offer certifications the alliance, or do legal or administrative endorsed by the NAM (the M-List). support needs argue in favor of having an n Be prepared to work with an institution across city existing entity (e.g., the state manufacturing or state lines if still within your metropolitan area. association) do so on behalf of the alliance? n n Where more than one potential provider is viable, Determine the criteria against which the consider issuing a request for proposal (RFP) to proposals will be evaluated. area training providers.
Engage Educational Institutions, Other Training Providers An example of an RFP for education institutions.
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