Our Workforce- Where to from here? The Role of Academia

March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Our Workforce- Where to from here? The Role of Academia

PE “Pat” Patterson

Texas Tech University

From the NAE… in 1985

“The manufacturing world of the future is evolving piecemeal—on the factory floor, in robotics research laboratories, in computer and information systems development groups, and among manufacturing systems task groups in industry. At stake is the future industrial competitiveness of this nation. Our competitiveness will depend on increasing the productivity of manufacturing systems in all industries and on our ability to transform multifaceted manufacturing functions into cohesive, flexible systems using the new technologies spawned by the electronics and materials revolution. Competitiveness will also depend on achieving product quality and lowering production costs. Fortunately, the new technologies put these goals within grasp.

The changes taking place in industry as manufacturing adopts and adapts to new processes aimed at increased productivity are paralleled by new views of the educational system and of the training received by engineers and other Specialists who will plan, implement, and operate the new automated Manufacturing systems. The ferment occurring in the world of manufacturing is matched by that found in engineering school as new curricula and new approaches to engineering education are pioneered.”


So where are we today?


The Importance

Accounts for 14 percent of U.S. Gross Domestic Product and 11 percent of total U.S. employment - more than 14 million workers!!

$1 in final demand for mfg goods drives an additional $0.67 in other mfg products and $0.76 in non-mfg products and services

$1M in final sales of mfg products leads to 8 jobs in mfg sector and 6 jobs in non-mfg

Funds 60 percent of the $193 billion that the U.S. private sector invests annually in research and development

Contributes two-thirds of U.S. exports Accounts for 33% of corporate taxes collected


The Playing Field Demographics

Shifting, with the percentage of skilled laborers decreasing. Baby boomers are retiring, taking their experience and skills from the workforce.

Business Cycles Manufacturing is a cyclical industry, typically experiencing recession earlier and recovering

later than other sectors.

Rising costs Increasing costs of regulation, litigation, health care, energy, and raw materials. Corporate tax rates are higher in the U.S. than elsewhere. (State corporate taxes are

increasing even faster than other forms of taxation!!!)

Globalization As global competition increases, our profit margins decrease. Cost of producing goods in the U.S. is increasing, but global competitors are keeping their

prices low.

Technology Businesses must purchase expensive equipment to keep from falling behind the competition in

technology development and use.


Academe: Strengths and Weaknesses

StrengthsRaw materialsTraining expertise

Academic courses Workshops and short

courses

Research Capability

WeaknessesNot enough trained facultyTime (academe does not

move quickly!!)Lack of state-of-the-art

equipmentLittle access to the “real

world” Inadequate motivation for

the raw material


Industry: Strengths and Weaknesses

StrengthsSource of $$$ (??) in

exchange for valueCan provide “Real world”

opportunitiesCan provide state-of-the-

art equipment (??)

WeaknessesTraining expertiseLack of raw material


Government: Strengths and Weaknesses

StrengthsSource of $$$ (??)Can provide program

support and developmentCan provide partnership

support and development

WeaknessesRegulationPotential to be overly

PrescriptivePolitical


Workforce Challenges


Skill Challenges

Skill gaps exist when an existing employee lacks the skills, experience, or qualifications to be fully proficient at their job (training issue)

Skill shortages exist when employers encounter difficulties finding employees with the appropriate skills, experience, or qualifications to fill vacancies (initial education issue)


Other Challenges Finding, hiring, and keeping employees with adequate foundational

skills and competencies Industry does not have accepted standards for industry-wide skills and

competencies. Businesses face the dilemma that once trained, the worker will leave.

Small and medium-sized manufacturers may not have human resource departments nor enough experience in organizing training programs.

Matching training providers to business needs Difficult to find training providers that align with employer needs. For example:

coordinating work and training schedules, transporting workers, and finding programs that meet specific technology or process needs.

Industry needs vary so training emphasis will vary. Low numbers are a barrier as numbers may be needed to get specific training. Need access to latest technology and equipment (on-site training v. video, etc.).


So what do we need?


We Need Solutions for…

Improving a negative public image Manufacturing has a negative public image, basically characterized by “moving

offshore,” “declining,” “dirty,” “low pay,” etc.

Capacity-Building Ensure that an infrastructure of training and education programs exists to provide an

adequate supply of workers for advanced manufacturing. Develop programs to help the K-12 system better teach the skills needed and to

educate students about manufacturing career opportunities.

Pipeline Development Maintain practices and processes that ensure an ongoing supply of new and existing

workers are recruited, and prepared, to meet the needs of industry

Training for Innovation: Our competitive edge?? Ensure that training and education programs are aligned with the needs of employers,

and that the resulting trainees can provide innovative and creative solutions in the workplace


Needs

•Support Systems•Integration of Academic Programs

•Grant Opportunities

Potential Support Systems

•Outreach Projects•Business &Industry•Legislation

Integration of Academic Programs

•Academic Outreach Programs•Pure academic Programs•Other Education Programs (workshops, etc.)

Grant Opportunities

• GovernmentLocal Workforce BoardState Workforce BoardDepartment of Labor

•Private Sector•Major Corporations

National Level Promote intellectual property and start-ups

Support start-ups critical for promoting employment, entrepreneurship, and innovation in the manufacturing

domain; Develop a common framework for intellectual property rights.

Develop centers and networks of excellence for manufacturing as structure for region-level quality and quantity. Ladder approach (academia, industry, and government) Workshops, short courses, lending/trading

A visible advertising campaign highlighting the positive impacts of manufacturing Shift media focus off layoffs, corporate misconduct, etc., Stress community efforts, Affordable new (and interesting!!!) technologies, New businesses/industries/jobs Industry itself needs to be sold on marketing its image!!!


State and Regional Level

Increase, simplify, and coordinate funding schemes within and between state and regional authorities

Obstacles (legislative??) can limit the realization of new start-up companies in manufacturing- identify and investigate these limitations.

Improve coordination between universities and industry. University-driven projects (those conducted within the university with some input

from industry) Industry-university collaboration (projects conducted at the university, having

strong interaction with industry) Industry driven projects (internship/coop type training) Potentially resulting in raw materials, research, real world experience, motivation!!

Integrate the manufacturing qualifications/standards of individual states into regional/national curricula.

Reorganize educational programs around new fields having high potential to impact our manufacturing competitiveness.


Stakeholder Level Establish joint post graduate industrial training, industrial real-life driven courses,

as well as manufacturing departments supported by industry. Provide other training options: Workshops, short courses, lending workers between companies to

acquire skills/experience on new equipment/techniques, etc.

Joint ventures to identify strategic directions for innovation and to support business risk.

Successful manufacturing stories should be integrated early in education curricula.

The manufacturing industry needs to be marketed to students; e.g. booklet on career paths, forums in schools on careers in industry, etc.

As work is being done earlier in schools, perhaps we need younger people in our promotions??

Many people who would be a success don’t even start.

Instructors need to be constantly updated on equipment and skills. Developing cross-skills, as well as specialized skills, is important (a training

focus??). Recognize the need for on-the-job training.


A Ladder Structure Approach

Source: South Plains Region

Secondary Education

Community College

University

Masters Degree

Bachelor’s Degree

AssociateDegree

Business & Industry

State(testing)

Innovative

Business & Industry

Infrastructure needs to include local economic development corporation !!!

Two Examples


Oregon Manufacturing Approach


Secondary EducationLISD/Frenship CTE

(Region 17)Basic Certification

South PlainsCollege

Texas TechUniversity

Wor

kfor

ce M

anuf

actu

ring

or O

ther

Indu

stry

(i.e.

Win

d, E

nerg

y, A

dvan

ced

Tech

nolo

gies

, etc

.)

Industrial Engineering

Manufacturing Degree

Advanced Certifications/

Associates Degree

SpecializedAdvanced

Certifications/ SPC Dual Credit

CoopApplications

TM

AC

Par

tner

ship

at a

ll le

vels

VTS/ SPC

Driven by a National Industry Certification

Industrial Manufacturing Track

Source: South Plains Region

Steps

Some Necessary Steps

Adapt existing educational organizations, making them more flexible and better able to cope with the constantly changing conditions of the labor market. Cooperation, Coordination!!!

Ensure a supply of teachers in general educational and vocational schools, plus professors at universities, who are sufficiently qualified and have the ability to teach the required subjects A major concern is the aging population of teachers; more than 60% are

over 40 years old !!

Develop and adapt curricula to reflect the needs of manufacturing industry, now and in the future. Innovation of approach!!! Support both formal and informal education, together with life-long

learning, as a means of keeping up with the pace of change.


Some Necessary Steps Enhance the prestige of manufacturing as a profession and as an intellectual

challenge. Image isn’t everything, but… !!! Share information on what can be and is being accomplished (publicity and

focused conferences). Provide economic incentives from federal, state, and local governments. Increase the interaction between industry and universities in both manufacturing

education and research. Learn by doing (projects, real projects, even real international projects) Joint development of co-op programs and targeted research programs in manufacturing;

Seek out innovations/innovators in manufacturing education Provide industrial financial support for manufacturing initiatives at universities

including grants, equipment (and related maintenance support), and scholarships;

Use industry personnel as adjunct faculty; Use faculty as industrial consultants, and Provide faculty sabbaticals having manufacturing assignments.


In a nutshell…

Motivate, Cooperate, Coordinate


Thank you !!!

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Our Workforce- Where to from here? The Role of Academia

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