Workforce and Education

A new final overtime rule from the U.S. Department of Labor will reduce flexibility for employees and could force manufacturers to make difficult choices about their workforces, the NAM said Tuesday.

What’s going on: The new regulation “changes the salary threshold used to determine whether a worker is exempt from overtime pay” so that, beginning Jan. 1, 2025, most employees earning less than $58,656 will be owed time-and-a-half wages for hours worked over 40 in a single workweek (Bloomberg Law, subscription).

• The current salary threshold is $35,568.
• The new rule will go into effect July 1, following publication in the Federal Register.

Why it’s problematic: The change promises to present significant challenges to employers and employees alike.

• “Quarter after quarter, manufacturers cite workforce issues, such as attracting and retaining skilled employees, as their biggest business challenge,” said NAM Managing Vice President of Policy Chris Netram. The “rule places new constraints on employers, reduces flexibility for the workers who will be reclassified and may force companies to make painful choices that limit both job creation and growth opportunities available to employees.”

What’s next: The NAM is weighing all actions to protect manufacturers across the country.
​​​​​​​

Washington, D.C. – Following the release of the Department of Labor’s Wage and Hour Division rule concerning updates to the overtime regulations, National Association of Manufacturers Managing Vice President of Policy Chris Netram released the following statement:

“Quarter after quarter, manufacturers cite workforce issues, such as attracting and retaining skilled employees, as their biggest business challenge. Yet today’s rule places new constraints on employers, reduces flexibility for the workers who will be reclassified and may force companies to make painful choices that limit both job creation and growth opportunities available to employees. In addition, this latest regulatory hurdle will complicate manufacturers’ efforts to fill the millions of jobs our industry is projected to create within a decade.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Stephanie Thompson may not have always intended to go into manufacturing, but she’s very glad she did.

The path taken: “You don’t necessarily plan your journey, but sometimes you can look back and see how those paths presented themselves,” and you’re thankful they did, said the engineering manager at General Motors’ facility just outside St. Catharines, Ontario, Canada.

• “My career in manufacturing started in internships in university. I worked for a food manufacturer, for a company that made above-ground swimming pools … It was a great chance to try out different businesses, and I [realized that I] love the buzz and excitement that manufacturing has.”

Award nominee: Thompson is a 2024 Honoree of the Women MAKE Awards, honors given annually to 130 women making a difference in manufacturing by the Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate.

• Thompson—who started working for GM full time right after university and has held multiple positions in her 23 years there—was the first woman to become an engineering manager in her time at her site.

• Women MAKE Award winners will be celebrated April 18 at the 2024 Women MAKE Awards Gala in Washington, D.C.

Always improving: An Ottawa native and graduate of the University of Waterloo, Thompson sums up her very complex job as “a manufacturing assembly specialist [who] makes sure people can do their jobs safely—and do it over and over again.”

• She oversees the assembly of whole powertrain lines. For one particular engine, “I was there for the first one made, and I was here for the last—we made over 5 million,” she said of a recently retired line.
• “We are always looking to make improvements, to make things more cost effective, to make things simpler,” she said. “The problem-solver part of me really enjoys making those incremental differences every day. [In manufacturing,] you get that sense of satisfaction from making stuff and ultimately giving a customer what they want.”

Women in STEM: Thompson, who has been recognized several times in her native Can

ada for her commitment to women’s education in science, technology, engineering and math, somehow found the time a few years ago to launch STEMbySteph.com, a STEM-focused website that includes a workshop series for women in the fields.

• She is also a mentor for FIRST Canada, which aims to interest kids in science and technology, and a regular speaker on related topics.
• “There are so many great women coming up through the ranks” in manufacturing today, she told us. “I want them to know there isn’t a limit to what they can do. I want to put myself out there as a technical role model, so women who apply [for manufacturing and STEM jobs] see themselves on the interview panel. They should know there’s a space for them in manufacturing.”

Work in progress: And while she’s had “nothing but great experiences with the men in manufacturing,” Thompson said the industry as a whole could benefit from “having some conversations” to make sure women feel welcome.

• “I don’t think it’s malicious,” she said, of the relatively low number of women in manufacturing (they make up about 30% of the
  manufacturing workforce). “But one of the things you have to do as a leader is create intentionality and create environments where conflict is positive, where you can all create ideas to [fix] the problem and where individuals feel safe being themselves.”

The U.S. manufacturing industry could require some 3.8 million jobs to be filled within the next decade, according to a new joint study from the Manufacturing Institute, the NAM’s 501c3 workforce development and education affiliate, and Deloitte.

What’s going on: “Taking charge: Manufacturers support growth with active workforce strategies” found that manufacturing in the U.S. has emerged from the global pandemic on strong footing and is likely to continue to grow in the next few years.

• That growth will call for even more skilled workers—particularly statisticians, data scientists, logisticians, engineers, computer and information systems managers, software developers and industrial maintenance technicians—spotlighting the need to build the national talent pipeline.
• “Pandemic-driven shifts have already created hundreds of thousands of new jobs, and now we are seeing increased demand for digital skills that need to be met or risk further widening of the talent gap,” said Manufacturing Institute President and Executive Director Carolyn Lee.

Key findings: Top takeaways from the report include:

• If workforce challenges are not addressed, more than 1.9 million of the up to 3.8 million jobs likely to be needed between this year and 2033 could go unfilled.
• Some 65% of manufacturers polled said attracting and retaining talent is their primary business challenge.
• About 90% said they are forming at least one partnership to better attract and retain employees, and on average they have at least four such partnerships.
• Approximately 47% indicated that apprenticeships, work study programs or internships at manufacturing companies would be the most effective way of increasing interest in the industry.
• Some 47% also said flexible work arrangements—such as flex shifts, shift swapping and split shifts—have been their top retention tool.

The bottom line: Manufacturers continue to face a talent shortage—and the MI has the initiatives and resources ready today to help manufacturers address these challenges.

• From the recent flexibility white paper—which explains how manufacturers can build and deploy flexibility options for the 49% of workers that are on the production teams—to the high school internship toolkit that allows manufacturers to start a recruiting pipeline in high schools, to the FAME USA apprenticeship program training global best multi-skilled maintenance technicians and more, the MI has solutions to the hurdles highlighted in this study. Learn more at themanufacturinginstitute.org.

More young people are choosing skilled trade jobs after high school, The Wall Street Journal (subscription) reports.

What’s going on: “Enrollment in vocational training programs is surging as overall enrollment in community colleges and four-year institutions has fallen. The number of students enrolled in vocational-focused community colleges rose 16% last year to its highest level since the National Student Clearinghouse began tracking such data in 2018. The ranks of students studying construction trades rose 23% during that time, while those in programs covering HVAC and vehicle maintenance and repair increased 7%.”

Why it’s important: The trades, including manufacturing, have experienced a worker shortage in recent years as the older generation of employees retires.

• Finding and retaining quality talent is consistently a top business challenge among manufacturers, according to the NAM’s Manufacturers’ Outlook Survey, a quarterly polling of the industry.
• But now, trade-apprenticeship demand is surging, perhaps a signal that positions will start to fill.

Perception change: For many years the vocational education wing of one high school in Sheboygan, Wisconsin, was called “greaser hall,” but lately that’s started to change, a counselor there told the Journal.

• “[B]usinesses have raised funds and donated new equipment, including robotic arms … [and] those classrooms now sit at the building’s main entrance. ‘There’s still a presumption that four-year college is the gold standard, but it doesn’t take as much work to get people to buy into the viability of other options,’ [he said].”

The last word: Indeed, the Manufacturing Institute, the NAM’s 501(c)3 nonprofit workforce development and education affiliate, is seeing significant growth in its FAME initiative, an earn-while-you-learn training program with more than 40 chapters in 16 states—and more forming all the time. FAME, which was founded by Toyota and is now led by the MI, is truly the American model of skills training, according to MI President and Executive Director Carolyn Lee.

• “FAME is training thousands of global best technicians nationwide and the number of program participants is on the rise,” she said. “This is good news for manufacturing, which sorely needs talent to continue to make the many, many things people use every day.”

For Alexandra Bryant-Boose, being a mentor matters—because she’s seen firsthand what good mentorship can accomplish.

From a mentor at a homeless shelter where she and her mother lived for a time, to an eighth-grade science teacher who pointed her toward a scholarship at an engineering summer program, she is grateful for all the people who helped guide her in the right direction.

• “There were so many experiences where someone gave me an opportunity,” Bryant-Boose said.

Today, as an automation specialist at Merck Manufacturing Division, part of Merck in Durham, North Carolina, Bryant-Boose is paying that opportunity forward, making sure that others are able to find their passion and achieve their dreams.

Discovering manufacturing: Bryant-Boose graduated from North Carolina State University with a degree in chemical engineering, a concentration in biomolecular engineering and a double minor in microbiology and biotechnology.

• When the COVID-19 pandemic hit, she began looking at careers at Merck, and in her words, just stumbled onto automation. After doing some research, she was hooked.
• “Automation is like playing investigative journalism or being a detective,” said Bryant-Boose. “Sometimes there’s a problem and no one will know what the issue is—and automation is about looking into the nitty-gritty, getting a little dirty and opening up a system to find what the issue is. That way of thinking and working is what makes me enjoy what I do.”

Educating young people: In 2022, Bryant-Boose launched a project designed to spread opportunities in science, technology, engineering and math to young people who might not otherwise be able to learn about those subjects.

• She started small in 2022, with a program at a local middle school. Last summer, in collaboration between the Society of Women Engineers and Durham Parks & Recreation, the project grew into a STEM summer camp with about 30 Merck volunteers.
• “We hosted 90 kids in three locations who all got that face-to-face interaction with Merck employees,” she said. “It was a lot of work to organize, but it was good to pay it forward. I’m giving kids someone to look up to and helping them figure out where they might go.”

Promoting support: Bryant-Boose is also a talent acquisition lead for the League of Employees of African Descent at Merck. The internal group, which offers both mentoring and reverse mentoring—in which younger employees provide advice and knowledge to executive team members—gives her a chance to both advise and be advised.

• “I like being able to give people advice that I wish I had,” said Bryant-Boose. “At the end of the day, it’s good to be around people who can relate to things you’re going through. And I find that LEAD allows me to do that at Merck.”

Gaining recognition: Recently, Bryant-Boose was named an Emerging Leader in manufacturing by the 2024 Women MAKE Awards, a distinction for a select few women under the age of 30 who have achieved unique accomplishments at the start of their careers in manufacturing.

Offering advice: Some of Bryant-Boose’s best advice is to encourage people— especially women—to find their own mentors.

• “I know coming into what’s historically been a male-dominated field can be intimidating,” said Bryant-Boose. “If you’re a woman considering manufacturing, or actively getting into it, find that person who can be your mentor. Claim them. Go to them when you need someone to talk to.”

Go deeper: To see the full list of 2024 Women MAKE Award Honorees and Emerging Leaders, click here. To learn more about the Women MAKE Awards, click here, and to learn more about the MI’s free Women MAKE Mentorship Program, click here or contact the team at [email protected].

What’s the state of manufacturing in the U.S.? Strong and resilient—but under threat.

That was the message delivered by NAM President and CEO Jay Timmons and other speakers at the NAM’s 2024 State of Manufacturing Address at RCO Engineering in Roseville, Michigan, on Thursday.

• Attending the address were nearly 100 RCO Engineering team members—some of whom are second- or even third-generation manufacturing workers—as well as local education leaders, including Macomb Community College President James O. Sawyer IV and Macomb Intermediate School District Superintendent Michael R. DeVault.
• The address was the keystone event of this week’s launch of the 2024 Competing to Win Tour, an opportunity to visit local manufacturers and report on where the industry stands at the start of 2024. 

A place of strength: “The state of the manufacturing industry depends on the people in it,” Timmons said in remarks covered by POLITICO Influence (subscription). “And we are now 13 million strong—the largest in more than 15 years. If we can continue on this trajectory, this resurgence, imagine what the state of manufacturing might look like in 2030.”

• Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and NAM Board Chair Kathy Wengel echoed that sentiment in her opening remarks. “Manufacturers are improving the quality of life for everyone. … Together, we can lead the way.”
• And Michigan Manufacturers Association President and CEO John Walsh told the audience at RCO Engineering, “You are making parts here that are going everywhere. It’s a phenomenal story for us in Michigan. It not only helps you as employees here, but it helps your families, it helps your communities. It builds our state. It builds our nation.”
• “Manufacturing … is an industry that is vital to our economic competitiveness,” said Macomb County Executive Mark Hackel. “In Macomb County, we’re not just witnessing the growth of manufacturing; we’re actively contributing to it. What we are doing here is creating an environment where innovation thrives and where manufacturers can grow as well as compete.”
• RCO Engineering General Manager Jeff Simek agreed. “The manufacturing brand is coming back, and it’s coming back alive—and you guys are a big, huge piece of that,” he said to loud applause. 

Fork in the road: But continued manufacturing strength isn’t guaranteed, Timmons said. Rather, it’s in large part contingent on sound policy decisions by U.S. leaders.

• “We will head in the wrong direction if Congress lets taxes go up on small businesses when rates expire next year,” Timmons said. “Or if they hit you with even more regulations—regulations even harsher than ones they have in Europe. Or if they fail to solve the immigration crisis because they put politics over good policy. Or choose trade barriers rather than trade agreements, or … abandon our allies overseas and put our national security at risk.”
• The recent regulatory onslaught by federal agencies—which Timmons discussed with Fox Business earlier this week—must stop and be replaced with sensible rulemaking done in cooperation with manufacturers, he said.
• He cited the Environmental Protection Agency’s recently finalized, overly stringent standard for particulate matter and the Biden administration’s decision to freeze liquefied natural gas export permits. This “forc[es] our allies, like Europe and Japan, to buy dirtier energy from countries we can’t trust, potentially enriching the likes of Russia … undercut[ting] our most basic national security objectives,” Timmons said.

No new taxes: The NAM’s message to Congress on taxes is simple: “No new taxes on manufacturers in America,” Timmons said. 

• “And while we’re at it, Congress should bring back some of the tax policies that made it easier for manufacturers to invest in the future.”

On immigration: The U.S. needs a common-sense solution to immigration, and it needs it now, Timmons said.

• While manufacturers may not like every piece of the bipartisan border deal that was recently killed in the Senate, “here was my test: Does it make us more secure than we are today? Yes. Does it make our workforce stronger than it is today? Yes. And does it help our allies overseas? Yes,” said Timmons.

Come what may: No matter what the November elections bring, manufacturers will continue to do the jobs so many people depend on them to do, Timmons concluded.

• “Our commitment is to work with anyone, and I truly mean anyone, who will put policy—policy that supports people—ahead of politics, personality or process. We will stand with you if you stand with us in advancing the values that have made America exceptional and keep manufacturing strong.” 

Manufacturing operations are meticulously scheduled and dependent on consistent in-person labor—so how can employers in the sector give workers the flexibility that many want?

With competition for workers remaining fierce, it’s a question that the Manufacturing Institute (the NAM’s workforce development and education affiliate) has started to tackle. Now, manufacturers looking into providing flexible options can consult a new MI whitepaper that draws on real companies’ experiences and decision-making processes. 

The new reality: Flexibility is a high priority for workers nowadays, as the MI’s own research shows.

• “Nearly 50% of manufacturing employees cite flexibility as a reason they stay with their employer, with 63.5% reporting that they would look for more flexibility in their next role if they were to leave their current company.”

Figuring it out: So how are manufacturers adjusting? According to a working group of 17 companies convened by the MI, many manufacturers have started by surveying their workers and talking through options with them.

• While feedback from current employees is often a prime motivator for companies considering flexible work arrangements, some manufacturers also pursue them to attract a wider pool of prospective workers—including parents of young children, who may put a premium on flexibility.

What’s on offer: As feedback from the working group showed, manufacturers are considering a wide range of creative options. The whitepaper cites several intriguing examples, which should give other manufacturers ideas for their own operations.

• One manufacturer in the group was trying out different shift options, remarking that they’re “exploring 4–9s and 4–10s primarily as well as adding a Sunday second shift and having folks on rotating shifts.”
• Other companies organized teams of “floaters.” At one firm, these employees work limited hours on different shifts and acquire a large variety of skills. While not full-time, such positions offer a viable option for workers in search of considerable flexibility.
• Shift swapping was another option under discussion, with one company allowing workers to swap up to a week at a time, so long as a supervisor approved.

How to get started: Check out the full whitepaper for more useful tips, including a toolkit to help companies start making these complex decisions on their own.

• Here is the recommended first step: “Identify the objectives that your company hopes to achieve in providing workplace flexibility by focusing on the challenges that you would like to solve, whether it’s increasing the number of applicants or reducing turnover and absenteeism. Establish your baseline by evaluating your company’s status on these metrics.”
• Manufacturing employers can learn more about effective approaches to flexibility for production employees at the MI’s upcoming workshop March 19–20 in Washington, D.C. Check out more details from the MI here. 

The last word: As one working group participant said, “At our company, we’ve seen what workplace flexibility means for our production workers. The change in company culture is so valuable.” 

For Pioneer Service President and Co-Owner Aneesa Muthana, having an engaged team is the key to solving the workforce retention puzzle. The Addison, Illinois–based, woman-owned company is among the many manufacturers that find retention, along with recruitment, to be top business challenges, as the NAM’s Manufacturers’ Outlook Survey shows. So how has Muthana gone about building such a team?

Where it all starts: For Muthana, meeting this challenge begins with upholding the company’s core values: integrity, diversity, leadership, outreach, stewardship, quality and learning.

• These words appear on the shop floor, and every job candidate who comes in for an interview receives a handout outlining their importance. “These are more than just pretty words on a wall,” said Muthana. “We chose these values as a team because they pinpoint our path to success, both financially and ethically.”
• “I give them a copy because I want them to understand the importance from the beginning,” said Muthana. “We want to plant the seed before they’re on our payroll that these are the expectations. Then it becomes fair to hold people accountable to them.”

Providing training opportunities: In keeping with its core values of stewardship and learning, Pioneer Service offers internal training opportunities for employees who express an interest.

• “We offer training to anyone who raises their hand, whether it be in safety or leadership,” said Muthana. “It can also be very technical training on the shop floor. We also provide GD&T training, including for our sales team.”
• GD&T, or geometric dimensioning and tolerancing, determines how parts fit together into an assembly to form a product.
• The benefit of having a salesperson learn about GD&T? “A salesperson would be able to look at a customer print confidently and feel comfortable talking to the customer without needing to have an engineer in the room,” Muthana pointed out.

Offering support: Pioneer Service established a chaplaincy program, which connects employees and their families undergoing hardships—such as caring for an elderly parent, grieving the loss of a loved one or dealing with a personal struggle—with a chaplain who can provide counseling and offer spiritual and emotional support. Muthana says that the chaplaincy program is open to any employee, regardless of religious background or preference.

• “The chaplain service is part of our team,” said Muthana. “We have one chaplain come in every week—one week a male and then the following week a female—who is available to meet with staff if needed.”
• Muthana says she used the service a few years ago when her son, who is in the military, came back from Afghanistan. Many of his friends did not.​​​​​​​
• “As a parent, you feel grateful that your child survived, but also guilty for feeling that way because a lot of his friends didn’t come home. The chaplain service provided me someone to talk to because I couldn’t talk to my family, and I couldn’t talk to my staff,” she recalls. “I developed a strong relationship with the chaplain that I feel never would have happened if I didn’t look out for my staff and implemented the service.”

Job shadowing: When Muthana goes to a speaking event or conference, she sometimes takes one or two of her staff with her so they’re able to benefit from attending. It’s also a way for her to get to know her staff on a more personal level, outside of the formal workplace setting.

The last word: Muthana shared some advice for companies struggling with workforce retention:

• “Having an engaged team and workers only happens with a people-first mentality,” said Muthana. “When you take care of them, you become successful because you have an engaged team that has your back.”
• “It’s harder to make a profit than ever. The only way that we’re going to be successful is by having an engaged team.”

Go deeper: The Manufacturing Institute (the NAM’s workforce development and education affiliate) has many resources to help employers retain and develop their teams.

• Start with this study to learn how to build positive company culture and engage employees, explore strategies in boosting retention and employee engagement, delve into tips on attracting and retaining talent in rural vs. urban settings and check out the MI’s recent white paper on flexibility approaches for manufacturing production workers, a key tool to improving the employee experience.
• Pioneer Service’s approach to workplace needs exemplifies the benefits of focusing on the holistic frontline employee experience, which include higher retention, less absenteeism and greater engagement, according to a study conducted by the MI and PwC.
• Learn more about Women MAKE America and the 35×30 campaign, the MI’s initiatives to increase the number of women in manufacturing, tapping into this population to address persistent workforce shortages. Military-affiliated talent and second chance populations are great sources, too.​​​​​​​

For three sisters in Kentucky, manufacturing is a family affair.

Emily Bastin, Heather Craven and Hannah Geneve are all working in maintenance roles supporting various shops at Toyota Motor Manufacturing Kentucky. Growing up, they had disparate interests—while Emily had taken robotics classes in middle school and Heather had always enjoyed working with her hands, Hannah switched to manufacturing only after working in customer service. Today, all three of them are building careers in manufacturing together.

How they got here: Emily, Heather and Hannah found their way into manufacturing through FAME—an initiative for current and aspiring manufacturing workers that was founded by Toyota in 2010 and is operated today by the Manufacturing Institute, the NAM’s workforce development and education affiliate.

• The FAME Advanced Manufacturing Technician program offers on-the-job training and classroom education that combine technical training with professional practices and lean learnings to create world-class technicians. The two-year AMT program leads to an associate degree and the FAME certificate.
• “They came to my school—the AMT program—and I was like, you know, let’s give this a shot,” said Emily. “I didn’t realize I would have that kind of potential. This was cool stuff.”

The family business: Emily was the first of the three sisters to graduate from FAME, and she has been helping her sisters as they work their way through the program. Both Hannah and Heather are enrolled in FAME while working at Toyota, and they expect to graduate in May 2025.

• “We’re all working in the same plant, and if they need anything from me, I’m there to be supportive,” said Emily.
• “With schoolwork, I try to help Heather, and she tries to help me,” said Hannah. “We all help where we can.”
• “It’s nice to have that sister love to lean on,” said Heather. “They understand the frustration of school and work, and it’s been a pleasure to work with them.”

Opportunities abound: The sisters advise others who might not have considered manufacturing as a career—especially women—to give the industry a second look, emphasizing the sheer diversity of jobs on offer.

• “Working in manufacturing doesn’t necessarily mean you’re working on a factory floor,” said Hannah. “There’s an administrative side, an HR side—there’s a lot more to manufacturing than people expect.”
• “I do see us being examples for women who might not normally see themselves in the field,” said Heather. “You want to see women come in and say, hey, I did it, and you can, too. It’s nice to see yourself reflected back.”

The community: It’s not just their family ties that keep the sisters in manufacturing. All three sisters have high praise for their fellow students and colleagues, and for the supportive culture they’ve encountered at Toyota.

• “The mentorship I got helped me gain my confidence while I was learning,” said Emily. “And even now, the teamwork that goes into everything, every day—it’s been a nice surprise.”
• “Everyone has been super nice, super helpful and super welcoming,” said Hannah. “When you start out, it can seem intimidating, but everyone’s willing to help you out. They really want you to succeed.”

The last word: “It’s nice to feel like you’re a part of that network—that family,” said Heather.

The MI’s 35×30 campaign aims to increase the share of women in manufacturing to 35% by 2030 and spotlights outstanding women in the industry like these sisters. To learn more about Women MAKE America and explore its many opportunities, including its new mentorship program, go here.

The Federation for Advanced Manufacturing Education provides global-best workforce development through strong technical training, integration of manufacturing core competencies, intensive professional practices and intentional hands-on experience to build the future of the modern manufacturing industry. Learn more here.