Workforce and Education

The Center for Manufacturing Research at the MI recently released a study in partnership with Rockwell Automation and PTC forecasting the skills needs of the manufacturing sector over the next 5 to 10 years.

Here’s what the study found:

• There are 3 major skills needs for the future: data analytics, an agile mindset paired with problem-solving and critical thinking, and interpersonal skills.
• Manufacturers are interested in preparing for upcoming skills needs by connecting with the workforce of the future. (See how the MI is building this workforce with our groundbreaking initiative, Creators Wanted.)
• Manufacturers are intentionally recruiting and promoting segments of the population that have historically been excluded from manufacturing roles or leadership. (Learn how the MI is leading conversations about D&I here.)
• Focusing on corporate culture is a key component of building and maintaining a strong workforce.
• Nearly every company surveyed reported the importance of continuous training for their current worker, i.e. “upskilling”.

Read the full report here. 

The Manufacturing Institute with support from Colonial Life released a new paper that explores what manufacturers are doing to help close the gender gap, incorporating survey responses and interviews with various company executives that identify key insights and practical advice for other manufacturers. To address the workforce shortage, manufacturers need to expand their talent pools, bringing in more diverse and underrepresented candidates.

Women represent a sizable talent pool that manufacturers cannot ignore, especially as the sector becomes more advanced. Earlier this year, the MI launched our 35×30 campaign, which aims to do just that—increase the percentage of women among manufacturers from 29%, where we hover now, to 35% by 2030 by changing perceptions among women and girls about manufacturing as a career, attracting and retaining more female employees.

Read the full report here.

At a time when attracting and retaining talented employees is more important than ever, offering a retirement plan can make a critical difference. But for manufacturers like Winton Machine Company, a tube and coax fabrication manufacturer based in Suwanee, Georgia, the cost of a plan can create a real challenge.

• “It’s really difficult as a small manufacturer, because you’re competing against benefit packages that are given by large companies,” said Winton Machine CEO and co-owner Lisa Winton.

That’s why, when the company came across the NAM’s Manufacturers Retirement & Savings plan, they knew they were onto something good.

A tailored plan: The Manufacturers Retirement & Savings Plan, offered in partnership with Principal Financial Group^® and HUB International LLC, is a multiple employer plan that is available to all NAM members and designed to cover all 14,000 member companies. Companies of all sizes can participate, which creates new financial opportunities for and offers more security to the millions of men and women who make things in America.

A trusted approach: Winton appreciates that the program offers a product she can trust—and that her employees can rely on. Because the plan comes vetted and designed by the NAM, she can feel confident that she and her employees are invested in a high-quality offering.

• “I have a hard enough time understanding what funds to put my 401(k) in,” said Winton. “I depend on a financial advisor who’s an expert in that area. So my employees, a lot of them are in the same position as I am.”

Useful resources: The NAM’s plan also comes with a range of exclusive tools designed to help manufacturers understand their investments so that they can make the most of the opportunities available to them.

• “There’s great online resources, and we’re also able to share those videos on the premises with our people,” said Winton. “We’ve had one-on-ones, we’ve had group trainings. We’re looking forward to . . . having a financial advisor come and meet with our employees and talk to them, encourage them to put more money in their 401(k), but also help educate them on what’s happening with their money and how to invest it better.”

Accessible support: Winton Machine emphasized the value of the plan’s support system, which answers questions from employees and company leaders.

• “It’s been very, very easy,” said Winton. “I have one point of contact, which is really important. I don’t have to go and call a 1-800 number if I’ve got an issue.”

The bottom line: “The [NAM retirement] plans are new, they haven’t been around that long, and they offer a lot of opportunities for us to share costs and also really understand your funds and understand what you’re paying for,” said Winton. “I think I have a much better overall product now at the same price or less.”

Automation isn’t just changing the manufacturing industry; it’s enabling human-centric progress in tackling the industry’s workforce crisis.

In action: As part of the Automation Fair in Chicago last week, more than 15,000 attendees got to see how manufacturers—and companies like Rockwell Automation—are providing solutions to the shortage, which could reach 2.1 million unfilled jobs by 2030, according to research from the Manufacturing Institute (the workforce development and education partner of the NAM) and Deloitte.

• Rockwell Automation brought the Creators Wanted Tour, a project of the NAM and the MI, to its Automation Fair, giving students, parents, educators and manufacturers the chance to see firsthand how digital transformation and new technologies are supporting careers and opportunities in modern manufacturing.
• The tour’s much-heralded immersive experience, along with displays and programs featuring experts from the MI and the Manufacturing Leadership Council (the digital transformation division of the NAM), gave attendees insight into the pathways and support available in the industry.
• FactoryFix, the official recruiting partner of Creators Wanted, was also on hand to showcase its manufacturing talent platform for job seekers—and manufacturers searching for a one-stop recruiting solution.

Changing perceptions: Creators Wanted aims to shrink the workforce gap by dispelling myths about automation and attracting the next generation to manufacturing jobs. It’s seeing impressive success, MI President Carolyn Lee said during a session at the event.

• “Today 40% of parents have a positive perception of manufacturing,” Lee said, citing a recent joint Deloitte–MI study. “And what we’re finding is that parents see these are durable careers with great possibility and opportunity, and they’re encouraging their children to consider them.”

Digital help: “Digital is going to help manufacturers deal with their workforce issues because it’s going to not only help change the perception of the industry, but create new jobs going forward, particularly in math-intensive areas like data analytics and artificial intelligence,” said MLC Vice President and Executive Director David Brousell.

• Brousell cited the MLC’s “Manufacturing in 2030 Project,” saying, “We have to think about digital transformation as human-centric digital transformation—because we’ve got to bring the technology and the people together simultaneously to have an effective transformation.”

Impressive results: Since it began just more than a year ago, the Creators Wanted Tour has seen more than 8,000 students pass through its immersive mobile experience, where more than 75% of attendees leave with a significantly improved view of manufacturing.

• More than 510,000 students and career mentors have also signed up to learn more about modern manufacturing careers.
• Creators Wanted has recruited successfully both mentors and mentees for the mentorship program of Women MAKE America, an MI initiative that aims to close the gender gap in manufacturing.
• The Automation Fair offered more than 150 interactive sessions on the newest industrial solutions and best practices, and more than 200 companies exhibited across 200,000 square feet at Chicago’s McCormick Place.

Media mentions: The fair and Creators Wanted’s presence drew a slew of media coverage, including from “Morning in America” with Adrienne Bankert, “The John Howell Show” on WLS-AM, Univision Chicago and suburban Chicago’s Daily Herald.

• In addition, the Daily Line published an op-ed on the future of manufacturing by NAM President and CEO Jay Timmons and Rockwell Automation Chairman and CEO and NAM Executive Committee member Blake Moret.

The last word: “As the world’s largest company dedicated to industrial automation and digital transformation, Rockwell is always looking toward the future of manufacturing,” Moret said. “Campaigns like Creators Wanted are critical to recruiting the best future talent to create a thriving workforce.” 

When it comes to diversity and inclusion, Smithfield Foods puts its commitments into action.

The world’s largest pork processor has committed to measurable increases—of 35% and 30%, respectively—in the hiring and promotion of women and individuals in underrepresented groups. And it’s pledged to do it all by 2030.

Bridging a gap: In September 2020, the Virginia-headquartered manufacturer launched its Operations Leadership Program, created to develop a strong pipeline of diverse talent to fill future management roles.

• “We lead with data. And our data shows there’s a gap in diverse representation between production and management,” said Smithfield Foods Manager of Diversity, Equity & Inclusion Jessica Jones. “The OLP provided us an opportunity to track data on team members, their promotion opportunities, how they’re elevating within the company with a commitment to monitor year-over-year data three years after program completion for each cohort.”
• In just over two years, the program, which garners participants through applications, has seen 132 graduates and nearly 50 promotions.

Providing encouragement: Ironically, many of the same employees the OLP was designed to help were initially reluctant to apply, Jones said.

• “We did focus groups and what we realized is, those who weren’t applying were women and people of color,” she said. “They shared, ‘I don’t think it’s for me,’ and when we heard that, we realized it meant, ‘I never saw myself going higher than my current opportunity.’”
• Smithfield’s leadership began to strategically target their communications to specifically focus on these employees and encourage them to consider the program. “That’s when we started to see the uptick in more women and people of color applying,” Jones said.

Other D&I initiatives: To reach its lofty 2030 diversity and inclusion goals, Smithfield has deployed other programs, too, including the following:

• Smithfield’s Farmer Diversity Program, which aims to increase the number of Black and minority hog farmers in the company’s supply chain;
• A Future Leaders Program that gives scholarships and career opportunities to rising high school seniors through summer internships to increase diversity in leadership;
• An expansion of the Smithfield Foods Scholarship Program for eligible dependents of Smithfield employees so that it includes historically Black colleges and universities; and,
• A supply-chain initiative in which the company has committed to increasing its production-facility spend with minority-owned businesses by 14% by 2025.

The company has also signed NAM’s Pledge for Action, in which manufacturers commit to 50,000 specific actions to increase diversity and inclusion. 

The last word: “I have seen this company change and evolve in such a wonderful way,” Jones said. “We now have opportunities to elevate and expose our employee base to Smithfield’s leadership—making sure they have a touch point, a way to connect. Our leadership wants to know how they are doing, prevalent challenges and support needed. The change has been so encouraging.”

To Carol Enneking, creating a diverse and inclusive workplace is less of a race to a finish line than an ongoing expedition that never really ends.

A journey: “Realizing a workplace culture where DE&I is not just prioritized but celebrated was a critical aspiration,” said Enneking, Cornerstone Building Brands’ vice president of talent management, learning and diversity. “It’s a journey to get there, but not a destination where you will ever arrive to stay. You expect your workplace to evolve as highly diverse and inclusive, but you can always do more,” she said.

Taking action: Cornerstone Building Brands, a leading manufacturer of exterior commercial and residential building products, has been taking decisive actions to increase diversity and inclusion since the company’s inception in 2018. Extra focus has been given to its DE&I strategy since 2020, shortly after the murder of George Floyd, when the company began activating its DE&I commitment with employees.

• “I spent a great deal of time on this in 2020,” Enneking said. “We had a group of executives that mobilized to provide a [company] response. It was a bit of a new frontier for us, especially as a new company, deciding to speak up and send a message about this. We worked hard to set the right tone.”
• It also became clear that a more focused DE&I approach would help the company in these situations and in the day-to-day creation of an inclusive culture.
• Now, the business has a DE&I team at the ready to drive their strategy forward: its DE&I Council, which meets monthly and focuses on strategic alignment; communications; coaching and training; and metrics and governance.

More diversity in management: Cornerstone Building Brands aspires to build a more diverse and inclusive organization that reflects the diversity of the communities where it operates. It is also focused on increasing the number of diverse employees in Cornerstone Building Brands’ management teams.

• “We have a very diverse frontline population,” Enneking said. “It’s close to 50% frontline employees of color and about 28% women, but we see those numbers decrease in management. The challenge is to bring that same representation into the management.”
• To engage employees in creating an inclusive culture, the DE&I Council disseminated a survey that led to the creation of four distinct employee resource groups: Women!, Patriots, Pride and Unity. All meet regularly to learn together, plan events, address specific employee concerns and foster mentoring opportunities.
• Another way forward has been the company’s 2021 signing of the NAM’s Pledge for Action, in which “manufacturers commit to taking 50,000 tangible actions to increase equity and parity for underrepresented communities, creating 300,000 pathways to job opportunities for Black people and all people of color.” In the first year after signing this pledge, Cornerstone Building Brands took 44 tangible actions toward achieving its commitment to the pledge and its broader DE&I goals.

How far they’ve come: All of Cornerstone Building Brands job descriptions now contain a DE&I statement that highlights its commitment, and the company recently published its first environmental, social and governance report, which included DE&I initiative details.

• Cornerstone Building Brands has worked to ensure that its “recruitment processes are bringing in diverse candidates” and that there is pay-scale parity, particularly in direct manufacturing roles, Enneking said.
• The company also has a reporting mechanism in place for all employees to make leadership aware of potential inclusivity violations or other issues.
• In addition, the manufacturer has instituted manager and employee DE&I learning modules, which comprise unconscious bias and inclusive leadership training led by professional facilitators, as well as accountability measures.

Making an impact: The work has started to pay off, said Enneking, who added that “there has been an increase” in diverse representation among Cornerstone Building Brands’ management. President and CEO Rose Lee, the first Korean American woman to head a Fortune 1000 company, was recently named a Pinnacle Award recipient by the Asian American Business Development Center. The company also recently hired two new female business unit presidents.

• The company has also broadened its search parameters in recruiting, Enneking said. “Diversity has many facets, many of which are not visible. We value diversity of thought and perspectives and are more willing to bring in people who may not have been in [our industry] all their lives but who can learn quickly and have transferable skills. In fact, those hires usually bring us a lot of ideas that we didn’t have. Sometimes you need to look outside to get those.”

Manufacturers continue to face an alarming workforce shortage—which could result in 2.1 million unfilled jobs by 2030, according to a study by The Manufacturing Institute and Deloitte.

The MI—the workforce development and education partner of the NAM—is working hard to fill that gap. MI President Carolyn Lee spoke at the Made in Connecticut: 2022 Manufacturing Summit last week about how manufacturers are taking on this critical issue and what lies ahead.

The challenge: “One of the biggest long-term issues our industry is confronting is the perception problem,” said Lee. “Many Americans—usually parents—cling to the belief that the manufacturing industry is not a place where people can find satisfying, well-paying lifelong careers. … Our industry needs to overcome this perception and grow the supply of young workers.”

Making progress: “That brings me back to good news: perceptions are changing,” said Lee. “Thanks to movements like MFG Day, and campaigns like the National Association of Manufacturers and The Manufacturing Institute’s ‘Creators Wanted’ campaign, which is touring the country right now, we are moving the needle.”

• “We’re showcasing modern manufacturing as we know it to be: exciting, rewarding, clean and high-tech,” said Lee. “Thanks to these efforts, the positive perception of manufacturing among adults in the past few years has grown from 27% to 40%.”

Promoting programs: Lee spoke about a range of programs offered by the MI that are designed to help build an expansive and inclusive manufacturing workforce. These programs include:

• Women MAKE America, formerly known as the STEP Ahead program, which supports women in manufacturing;
• Heroes MAKE America, which eases the transition to civilian careers for veterans and other members of the military community; and
• FAME, which was originally founded by Toyota before transitioning over to the MI in 2019, and which offers an “earn and learn” apprenticeship experience.

Pushing policy: Lee noted the importance of ensuring that government policy is aligned with the needs and realities of the manufacturing industry. She also highlighted elements of “Competing to Win”—the NAM’s policy blueprint for bolstering manufacturers’ competitiveness. Proposed policies include:

• Reorienting the education system and its funding around a skills and employer-involved model;
• Updating federal tax policy to encourage and reward companies that invest in upskilling their employees; and
• More federal investments in apprenticeship models.

The last word: “Our industry’s strength and competitiveness will be determined by the strength of our workforce,” said Lee. “After all, they are the creators who pioneer and produce lifechanging electronics or lifesaving medicines. They are innovating and building the machines that transform human mobility, improve quality of life or bolster our national defense.”

Learn more: Find out more about the MI’s vital work here.

Last year, The Manufacturing Institute—the workforce development and education partner of the NAM—came to a realization: There were manufacturing conferences and there were workforce conferences, but neither addressed manufacturing-workforce challenges from a broad, national perspective. The MI wanted to change that.

And it did, just this month—with the inaugural, now-annual, MI Workforce Summit.

What it is: The summit, held this month in Cincinnati, Ohio, is a first-of-its-kind, multiday event that brought manufacturers, educators, community partners, association leaders and more together to network, attend workshops and hear talks from manufacturing and workforce leaders. All of them had the same goal: to build the manufacturing workforce of today and tomorrow to ensure the industry’s competitiveness.

• Made possible by sponsors including the Arconic Foundation, WestRock, FactoryFix, the Manufacturing Skill Standards Council and EY, and supported by the Ohio Manufacturers’ Association, the summit drew more than 300 participants.
• Half the attendees were manufacturing employers and half were from the MI’s leading partners.
• “Forging partnerships isn’t a theme, it’s an action item,” said Arconic Foundation President and Treasurer Ryan Kish. “Come up with concrete actions for your organization on how you’re going to go into the community and forge partnerships to tackle the manufacturing workforce challenge.”

What happened: The summit, with its theme of forging partnerships, resulted in the creation of more than 920 new connections among workforce stakeholders. It focused on three “areas of importance”: attracting, training and retaining quality employees and how partnerships enable success across all three. Specific events at the summit included:

• A plenary fire-side session on how partnerships helped Toyota and the entire manufacturing sector grow in northern Alabama;
• Breakout sessions focused on a range of key issues, including how parents and teachers help manufacturers attract talent, how the workforce can prepare for automation and how economic developers are now assisting in workforce development;
• Newly released research from the MI on adaptive skills and future skills needs;
• A plenary on the impact of culture on employee retention;
• Interactive Q&As on recruiting, training and retaining employees; and
• A session on how corporate and foundation grants can improve the manufacturing workforce ecosystem.  

“Hidden” talent: A frequently untapped pool of potential workers—individuals with previous involvement in the criminal justice system—was another topic of discussion at the summit.

• One in four adults in the U.S. has a criminal record, according to the National Employment Law Project. Many companies have had success in hiring people with criminal records, which has led more manufacturers to begin recruiting “second chance” hires.
• A leader in these hiring practices is JBM Packaging, whose director of human capital and culture, Valerie Plis, spoke at the summit.

Hiring veterans: Military veterans are another group of promising potential hires, as speakers advised the attendees.

• More than 200,000 men and women transition out of the U.S. military and into civilian life every year, according to the Labor Department.
• The MI’s Heroes MAKE America program seeks to attract many of them to the manufacturing industry, by building connections between the military and veteran communities and companies seeking top talent.

Growing talent: The summit dove into another successful workforce solution model: the Federation for Advanced Manufacturing Education (FAME), created by Toyota in 2010 and transitioned to the MI in 2019.

• FAME, which recently wrapped up its own annual national conference, combines strong technical training and professional skills development with hands-on manufacturing work experience to create global best-in-class entry-level technicians. In just three years, it has spread across the U.S. and now has more than 400 manufacturer partners.
• From 2021 to 2022, the program saw an 18% increase in the number of participants, according to MI President Carolyn Lee.

The last word: In her remarks, Lee encapsulated the central idea behind the new summit: “When we pioneer solutions together, we’re stronger than when we work alone.”

While participants were having fun at this week’s Creators Wanted stop in Decatur, Illinois, the nationwide tour and its mobile experience were doing something, too: moving the needle on people’s perceptions of modern manufacturing.

What went on: Over the course of three days, more than 800 students from 13 area middle schools, high schools and community colleges poured into Richland Community College to learn about manufacturing careers. Also present were many educators and parents.

• Attendees “raced to the future” in the Creators Wanted mobile experience, solving various manufacturing-related challenges as they wound through the escape room.
• They heard panel talks from manufacturing leaders and team members and learned about some of the industry’s many perks, including great wages, flexible schedules, upward mobility, chances to earn and learn and more.
• Interactive activities, set up and run by manufacturers and the campaign’s recruiting partner, FactoryFix, were designed to garner interest—and display some of the real work done every day in modern manufacturing.
• This included virtual-reality paint and assembly training from Creators Wanted host sponsor Caterpillar, as well as a hazard-awareness simulator, a drink-making station and a laser-system exhibit from host sponsor ADM. Richland Community College took students on a tour through its state-of-the-art lab.

Generation inspired: Manufacturing leaders at ADM, Caterpillar and the Illinois Manufacturers’ Association, which together brought the tour to Decatur, got the chance to galvanize crowds.

• Said IMA President and CEO Mark Denzler: “Manufacturing makes the world a better place to live every day. Some of you are going to find the next cure for a disease. You’re going to build the next robot.”
• “For anyone who really is looking for a career that you can get into that is good-paying, that will provide you an opportunity to progress, consider manufacturing,” Caterpillar Group President of Resource Industries (and NAM Executive Committee member) Denise Johnson told the crowd.
• Following the event, students were indeed inspired. “It kind of changed my mind on what I want to do in the future,” one student
• “It was amazing,” said another. “I’d think about doing this for a career.”

Shoring up the shortage: The lack of skilled workers has been a pain point for manufacturers for several years now—and it’s a problem Creators Wanted aims to fix.

• “Programs like Creators Wanted are crucial in narrowing the workforce shortage in manufacturing and also showcasing the many opportunities within the manufacturing industry,” said ADM Senior Vice President of Global Operations and NAM board member Veronica Braker. 

The impact: The tour stop made a splash in regional media, garnering overwhelmingly positive broadcast coverage and print mentions and placements (see here and here).

Meeting people where they are: “How do you get more young people interested in the field [of manufacturing]?” 25 News WEEK-TV anchor Erin Brown asked in a segment for the Peoria, Illinois, news station. “The answer could be more hands-on experiences with businesses like Caterpillar and ADM.”

Two of manufacturing’s top executives took centerstage yesterday as a part of the industry’s largest perception campaign to build the workforce of the future—by helping educators, parents and other career mentors coach students on their career journeys.

• Caterpillar Group President of Resource Industries (and NAM Executive Committee member) Denise Johnson and ADM Senior Vice President of Global Operations (and NAM board member) Veronica Braker joined NAM President and CEO Jay Timmons, Manufacturing Institute President Carolyn Lee, Illinois Manufacturers’ Association President and CEO Mark Denzler and other notable state, community and education leaders to kick off the Decatur, Illinois, stop of the Creators Wanted Tour at Richland Community College.
• More than 120 students from American Dreamer STEM Academy attended the kickoff event. (More than 800 students are expected over the tour stop’s three days.) There they heard manufacturing leaders’ perspectives before exploring the various exhibits and activations showcasing the many opportunities in modern manufacturing.

Power of visibility: “Not everyone has a perspective or has heard from someone who looks like me or is from the same place,” said Braker, who is also on the global nutrition company’s Executive Council. “But together, we can change one event at a time.”

• “While pursuing my degree in chemical engineering, I interned with several manufacturing companies. … For me, manufacturing was always an attractive choice due to the fast pace, the energy, as well as the opportunity to solve problems while working as a part of a team, making a real impact on people’s lives,” emphasized Braker.
• On the rewards of her own manufacturing career, spanning more than a quarter of a century in operations leadership, Braker pointed out, “I’ve made lifelong friends. I’ve been exposed to innovative technologies that will change the way that people and generations live forever.”

Teamwork and growth drove Johnson’s path into manufacturing—and an ascent to the upper echelons of the world’s leading manufacturer of construction and mining equipment.

• “I was working in the design and engineering arena, and I was really wanting to move into manufacturing because I thought it would give me an opportunity to learn some new skills and be able to … work with teams and people to a larger degree.”
• In a panel conversation, Johnson, along with Tara Tolly, operations director of ADM’s Decatur manufacturing complex, highlighted more of the advantages of manufacturing careers, including great pay, diverse career paths and roles, upward mobility, variability of days, earn-and-learn options and chances to lead and develop transferable skills.

Answering the call: “It’s events like Creators Wanted where we need to be present and active for our students and encouraging them to start early and get engaged with opportunities that offer rich and fulfilling experiences for them,” said Braker.

• Braker and Johnson were instrumental in arranging the Creators Wanted Tour appearance in Decatur, in partnership with the Illinois Manufacturers’ Association, mobilizing not just financial backing but also team and community support to help excite the next generation of creators.

Why it matters: “Fifty percent of Macon County’s economy [where Decatur is located] comes from manufacturing … the single highest share of any county in Illinois,” said Denzler. “Programs like Creators Wanted are crucial for making significant progress in narrowing the workforce shortage … in manufacturing,” added Braker.

Beyond the campus: WAND-TV, the local NBC affiliate, covered the kickoff, and Timmons and Denzler joined Decatur’s top morning radio talk show, “Byers & Co.,” to amplify the Creators Wanted message. More than 500,000 students and career mentors have signed up to date through the Creators Wanted Tour to learn more about modern manufacturing careers.