Mar 24, 2015

“Lawmakers Hope To Designate, Fund ‘Manufacturing Universities’ “ By Andy Szal, Manufacturing.net A bipartisan group of lawmakers on Wednesday introduced legislation that would provide 25 universities with federal funding to bolster programs relating to manufacturing. The bill would establish a program within the U.S. Commerce Department to select 25 “Manufacturing Universities.” Qualifying campuses would receive $20 million over four years to meet goals related to engineering, job training, manufacturing entrepreneurship and partnering with manufacturing companies. “We need our engineers to fill the growing demand for manufacturing workers and accelerate manufacturing’s growth,” said Sen. Chris Coons, D-Delaware. “This bipartisan bill would help us meet that challenge.” “As a small business owner who worked in manufacturing for over 35 years, I understand the difficulty in training and finding qualified manufacturing workers,” added Rep. Chris Collins, R-New York. “To expand manufacturing in the United States, we need to have a workforce capable of filling these skilled jobs.” The director of the Commerce Department’s National Institute of Standards and Technology would oversee the program in coordination with the Energy and Defense departments and the National Science Foundation. Coons and Sen. Lindsay Graham, R-South Carolina, introduced similar legislation during the previous session of Congress, but the measure did not advance through the Senate’s education...

By: Peter Coy, Bloomberg Businessweek A shortage of skilled manufacturing labor is on the way, says a new study by Boston Consulting Group. But, says the firm, it hasn’t arrived yet. Many factory managers claim they’re already suffering from a skills shortage. Sixty-seven percent of respondents reported a moderate to severe shortage of available qualified workers in a survey last year by Deloitte Consulting for the Manufacturing Institute, an affiliate of the National Association of Manufacturers. BCG senior partner Harold Sirkin, co-author of the research and a Bloomberg Businessweek contributor, says manufacturers could solve most of their problems finding good people by offering higher pay and training new hires. He says there’s no reason that a skills shortage need derail the “manufacturing renaissance” BCG has been forecasting. The consulting group predicts that rising U.S. exports and “reshoring” could create 2.5 million to 5 million U.S. jobs in manufacturing and related services by decade’s end. The firm looked for places where manufacturing wages are rising rapidly as evidence that demand is exceeding supply. By that criterion, “only five of the nation’s 50 largest manufacturing centers (Baton Rouge, La., Charlotte, Miami, San Antonio, and Wichita) appear to have significant or severe skills gaps,” the study said. “Occupations in shortest supply are welders, machinists, and industrial machinery mechanics.” The U.S. does face a longer-term problem, Sirkin says, because millions of older factory workers are retiring in the next five to 10 years at the same time that production is increasing. There’s no quick fix for shortages of skilled trades such as welding, he says. The minimum training is two years. “You don’t want a welder who hasn’t been trained,” says Sirkin. “You could burn the building down.” On Oct. 15, General Electric is holding a press conference in New York at which Chairman and CEO Jeff Immelt is scheduled to announce an initiative to find jobs in manufacturing for veterans. Sirkin says he applauds the...

By: John Sprovieri, Assembly One of the ironies of the economic recovery is that, despite an unemployment rate of 8.2 percent, U.S. manufacturers are struggling to find workers. According to the Bureau of Labor Statistics, U.S. manufacturers posted 310,000 job vacancies in May. That’s three times the figure from May 2009. And yet manufacturers nationwide are finding they can’t get good help. In Indiana, for example, 5 percent to 10 percent of manufacturing jobs go unfilled because applicants lack the necessary skills. What’s alarming about that figure is that it could very well get worse. The age gap between our industrial and nonindustrial workforces is widening. The manufacturing sector is being disproportionately affected by the aging of the American workforce. Today, the median age in manufacturing is 44.1 years vs. 42.1 years for the total non-farm workforce, and the gap continues to spread. Manufacturing desperately needs young blood. Fortunately, a growing number of U.S. manufacturers are reviving a tried-and-true concept: the apprenticeship. One of them is General Electric. In February, GE launched a two-year apprenticeship program at its River Works jet engine factory in Lynn, MA. GE worked with a local community college to develop the program, and the company has already enrolled 19 people. Twelve are training as machinists, and seven are training in machine repair. Participants will be eligible for tuition reimbursement from GE after six months of employment, and those who successfully complete year one will earn a certificate in manufacturing technology. Graduates of the second year will earn an associate’s degree in manufacturing technology. Nine-hundred miles south, in Stanley, NC, Blum Inc. has been successfully running an apprenticeship program since 1995. A manufacturer of cabinet hardware, Blum created the Apprenticeship 2000 program with four other local manufacturers. The program recruits students from 36 area high schools. The four-year program pays apprentices to attend classes at a local community college. Apprentices also receive training at the sponsoring companies’ facilities. Apprentices can train as tool and die makers, electronics technicians, CNC machinists, machine technicians, molding technicians and welders. Upon completion of the program, the students earn a journeyman’s certificate and an associate’s degree. More importantly, they are guaranteed jobs paying at least...

By: Manufacturing.net According to a new report from Deloitte, America can reverse the decline in the manufacturing industry, but only if it encourages innovation, trains workers and addresses tax reform and regulations, while also investing in infrastructure and energy. The report, “Manufacturing Opportunity,” explains that while low-cost basic manufacturing is unlikely to ever recover its former importance in the economy, it does not mean further decline is inevitable. Deloitte recommends refocusing on long-term opportunities in increasingly complex and emerging technologies—and in America’s ability to lead in the innovation and research and development of such breakthroughs. “Most Americans believe manufacturing is central to improving the ailing economy and say not enough is being done to support it,” said Craig Giffi, vice chairman and U.S consumer and industrial products leader, Deloitte LLP and the report’s author. “During this election season, candidates have an opportunity to not only recognize the importance of manufacturing but also address ways to support it by fostering innovation, developing talent and making investments in infrastructure.” “Manufacturing Opportunity” states that new pathways to manufacturing growth are both available and achievable. It also outlines several recommendations compiled directly from input received during extensive interviews with leaders from the business and academic communities, as well as organized labor. They include: Invest in Research and Development: For America to regain its position as a global leader in manufacturing and revive economic prosperity, it must invest in the research and development needed to produce the advanced technologies used in the manufacturing sector. Train Tomorrow’s Workforce: Advanced training is required to meet the needs of manufacturing jobs. Today there are 600,000 jobs that cannot be filled in America because manufacturers cannot find workers with the right skills. A focus on performance-based education and fostering government-to-industry partnerships, among many other recommendations, can help better prepare new generations of workers. Reform Taxes and Regulations: Numerous tax policies create a substantial burden for American manufacturers. In 2011, the United States had the highest corporate statutory tax rate among OECD (Organization for Economic Co-operation and Development) nations. It is the only G8 member that does not employ a territorial tax policy. Policymakers in Washington should address corporate tax reform and consider a...