Merck CEO Ken Frazier Talks Diversity in Manufacturing
Merck Chairman and CEO Ken Frazier is one of the few African American CEOs of a Fortune 100 company and a passionate advocate of manufacturing’s diversity and inclusion efforts. Recently, Manufacturing Institute Executive Director Carolyn Lee asked him a few questions by email about Merck’s approach. The condensed interview is below.
What advice do you have for CEOs looking to improve their organizations’ diversity and culture of inclusion?
Well, first things first—you must understand your own environment. What does the data tell you about the diversity of your organization? Do your employees believe they can bring their most authentic selves to work each day? What are people telling you? You should be having courageous conversations with them.
Once you figure out what your employees think, you can work on changing that environment. You should also plan on integrating your solutions into all your internal and external policies.
From there, you need to monitor progress and make sure your leadership is modeling the changes for all employees. Those leaders must be held accountable for your D&I goals.
How have you implemented such an approach at Merck?
We work hard to make our culture as inclusive as possible, so that all our workers feel empowered to fulfill our mission of saving and improving lives. We’ve made sure that our talent processes take unconscious bias into account, from hiring to reviews to succession planning. We’ve also created employee business resource groups, which not only support people at work, but have a meaningful say in our business practices.
Meanwhile, we weave D&I efforts into our day-to-day business activities. We work to get diverse patients into clinical trials, ensure our business strategies are relevant to patients all around the world and prioritize diversity among our suppliers.
Diverse employees are also a major asset for a company serving a diverse patient base around the globe. We need employees to bring their knowledge and experience to work so they can teach us how to serve our patients better.
And lastly, I strongly believe that we must learn from and be a role model to others, both in manufacturing and beyond. We have joined coalitions and organizations such as The CEO Pledge for Diversity and Inclusion, Paradigm for Parity and The Valuable 500, all of which do excellent work in the D&I sphere.
How can D&I efforts complement the industry’s work to close the “skills gap”?
We know there were around 12 million unfilled jobs in this country before the pandemic, and there are 5 million inner-city and other African American kids who want access to the economy. They want to be participants. They want to be citizens. They want to be leaders. What they lack is the education and the opportunity—and we business leaders can fix that.
Following the industry’s June “Pledge for Action,” the National Association of Manufacturers brought industry leaders together to focus on recommending bold next steps to increase equity and parity in our sector and increase opportunities for underrepresented communities in America. Click here to add your company to manufacturers’ combined efforts to make a difference—and make a Pledge for Action Commitment.
And register here for the Manufacturing Institute’s Virtual D&I Summit on December 7 and 8, where you’ll learn more about advancing diversity and inclusion in the manufacturing workforce.
“The Superhero Generation”: Microsoft and York Exponential Collaborate on Upskilling
Residents of York, Pennsylvania, will proudly tell you about the role it played in the “Arsenal of Democracy” during World War II. Today, the town is drawing on that manufacturing heritage as it adapts to the digital age. And among the leaders of the transformation is the collaborative robotics startup York Exponential, which has partnered with Microsoft’s new skills initiative to help York residents get the education they need for high-tech manufacturing jobs.
The initiative: Microsoft’s global skills initiative is designed to help 25 million people worldwide gain digital skills by the end of the year. It is intended to offer rising and mid-career professionals the skills they need to succeed in a changing economy—both during and after COVID-19. The program also includes partnerships with local companies like York Exponential that seek to upskill workers.
“If there’s maximum digital transformation in the U.S. post-COVID, we believe there is capacity in the United States for the manufacturing sector to absorb more than a million new roles in technology,” said Microsoft Philanthropies General Manager of Digital Inclusion Naria Santa Lucia.
How it works: Microsoft uses LinkedIn data to identify jobs that are in demand, projected to grow in the future and accessible to applicants without a related degree. It offers free learning content to help people develop the skills those jobs require, including soft skills like virtual collaboration. The initiative also offers certifications and job-seeking tools to connect people with applicable jobs.
In practice: York Exponential is looking to add well-rounded employees—new workers proficient in digital skills as well as experienced workers who can gain new qualifications, said CEO John McElligott. The company is combining its own community outreach—including through its training school, the Fortress Academy—with Microsoft’s tools to help students and employees gain the qualifications they need to be successful.
Why partnerships matter: Partnerships like this one offer exponential benefits by joining large-scale training efforts and resources with local talent.
- From Microsoft: “The most important consideration is locally-based entities that are trusted by the community,” said Santa Lucia. “If we’re going to change this economy and who has access to it, it’s about the networks you’re introduced to and who is going to connect you where you need to go. The content is important, but it’s really about that personal connectivity. That’s how we get to jobs.”
- From York Exponential: “Communities like us are often overlooked,” said McElligott. “People go to major metropolitan areas and big cities. So the fact that we’re having these discussions with Microsoft means a lot—an initiative of this size could have an outsized impact on a community as small as us.”
The last word: “This generation growing up today is the superhero generation,” said McElligott. “They grew up watching the Avengers, in a world where everything is robotics and superpowers. They are primed to do amazing things with technology—and to build things for their families, their communities and their country.”
October is Manufacturing Month and a perfect time to check out the exciting careers and training opportunities available from companies like Microsoft and York Exponential. There are still many events left, including an October 28 capstone event presented by Microsoft and called “Creators Wanted: Empowering a Diverse and Sustainable Manufacturing Workforce.” You can find the list of events at creatorswanted.org.
FAME Is All It’s Cracked Up to Be
Would you believe that one apprenticeship program could add $45,000 to its graduates’ salaries? It sounds incredible, but that figure is from a new study by Opportunity America and the Brookings Institution. And the program in question is Kentucky FAME, part of the wider FAME program that was originally founded by Toyota before its stewardship was transitioned to The Manufacturing Institute. FAME is now operating in 14 states.
As regular Input readers know, FAME students earn a two-year associate degree while working in their sponsor’s manufacturing facility as an Advanced Manufacturing Technician (AMT). This new study shows how much the students—and by extension their employers—get out of the deal.
Here are some highlights:
- The need for apprenticeships: “Today, two-thirds of jobs require some postsecondary education or training—not necessarily a four-year college degree, but some more specialized technical or nontechnical preparation for the world of work.”
- FAME’s effectiveness: “FAME participants were significantly more likely than non-FAME participants to complete their program of study—roughly 80 percent of FAME students graduated, compared with 29 percent of non-FAME students.”
- The results: “Five years after completion, FAME graduates were earning nearly $98,000, compared to roughly $52,783 for non-FAME participants—a difference of more than $45,000 a year.”
- The seal of approval: “Graduates’ reviews of the FAME experience were overwhelmingly positive. A total of 97 percent said they felt that enrolling in FAME was the right decision for them, and all but 3 percent said they would recommend it to a close friend or relative.”
The MI says: MI Vice President of Strategic Initiatives Gardner Carrick said of the study, “The results are amazing and confirm that FAME is a global-best program. We hope manufacturers will join us in expanding FAME to their community and offering people across the country the chance to see similar success.”
Publicity alert: Check out a story about the report in The Wall Street Journal (subscription). Meanwhile, Opportunity America hosted a webinar about the study yesterday, featuring Carrick among other speakers.
. . . and more: The MI and FAME are hosting a “FAME Live!” virtual event tomorrow, Oct. 21. Manufacturers with open skilled maintenance positions are invited to tune in here.
Manufacturing Job Openings Rise, Total Openings Fall
August saw a reduction in the number of available jobs for the first time in four months, according to the Labor Department’s Job Openings and Labor Turnover Survey, Reuters reports. However, manufacturing job openings rose that month, NAM Chief Economist Chad Moutray tells us.
Manufacturing: According to Moutray, “Manufacturing job openings in August reached 460,000, up from 430,000 in July and the best reading since July 2019 (477,000). This improvement suggests that firms are once again increasing their interest in adding new workers, even as the sector attempts to rebound from the COVID-19 pandemic and the overall labor market has changed dramatically.”
Overall economy: The picture for the overall economy isn’t as strong:
- Job openings fell to 6.49 million—a decrease of 204,000.
- The job openings rate fell to 4.4% from 4.6% in the prior month.
- The number of people leaving their jobs voluntarily was 2.79 million in August—down 139,000 from the month before.
About half of the jobs lost during the COVID-19 pandemic have not yet been recovered.
NAM Board Leadership: Manufacturers Will Continue to Lead by Example
Washington, D.C. – The Board leadership of the National Association of Manufacturers is issuing a call to all Americans to observe COVID-19 safety protocols so manufacturers can continue to work to rebuild the economy. Trane Technologies Chairman and CEO and NAM Board Chair Mike Lamach, Dow Chairman and CEO and NAM Board Vice Chair Jim Fitterling, BTE Technologies President and NAM Small and Medium Manufacturers Chair Chuck Wetherington and Protolabs President and CEO and SMM Vice Chair Vicki Holt released the following joint statement:
“As manufacturers for America’s goods and essential products, we have a strong message for our team members and the country. All Americans must do everything in our power to keep our workers, our communities and our fellow citizens safe from COVID-19.
“Our industry will continue manufacturing personal protective equipment, medical supplies and therapeutics, racing to develop a safe and effective vaccine and keeping consumer goods and the food supply plentiful. We have been able to do this throughout the pandemic and keep our workers safe because we follow the science.
“We will continue to set the right example by practicing the guidance outlined by the CDC and other medical experts. That’s why we encourage all Americans to wear a mask, social distance, avoid large gatherings, use contact tracing and quarantine for 14 days if there is direct exposure to the virus, especially when one is tested positive. We are on the front lines of rebuilding our economy, but we cannot do so until we defeat COVID-19, and we cannot defeat COVID-19 if we fail to protect each other.
“COVID-19 has already taken more than 210,000 American lives, and each week that number grows by the thousands. The economic toll has resulted in millions of jobs lost—some permanently. Among those who survive, many will endure lifelong disabilities. It doesn’t have to be this way. We know the science, and we have the tools. We all must follow best practices and look out for each other so we can keep the country open, supply the world and defeat this invisible enemy.”
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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 more than 12.1 million men and women, contributes $2.36 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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.
Virtual MFG Day Was a Success
MFG Day 2020 looked a little different from last year, as the events celebrating modern manufacturing happened online instead of in person. But even amid the pandemic, there was a widespread outpouring of support for manufacturing, including from many policymakers. Here are some highlights, and a look at what’s next.
Bipartisan celebrations: The White House issued a proclamation on Thursday night designating Oct. 2 as National Manufacturing Day, while at least 28 governors and leading members of Congress marked the occasion by proclamation or on social media.
Illinois manufacturers have a proud history of ingenuity, innovation and resilience. And, despite the extraordinary challenges presented by COVID-19, they continue to persevere by adapting operations and offering life-saving solutions to this crisis. https://t.co/5Vg9gbzpr1
— Governor JB Pritzker (@GovPritzker) October 2, 2020
On #NationalManufacturingDay, we celebrate the more than 4,000 manufacturers who call Maryland home. Their incredible innovation and creativity have been on display more than ever this year, and we are grateful for their many contributions to our state & to our nation. #MFGDay20 pic.twitter.com/m2pPhGFseE
— Governor Larry Hogan (@GovLarryHogan) October 2, 2020
On National Manufacturing Day, we celebrate one of Ohio's most important industries, and the innovation and skill of manufacturing workers everywhere. #MFGDay20 pic.twitter.com/9AJfLEmeSC
— Sherrod Brown (@SenSherrodBrown) October 2, 2020
Hoosier manufacturers lead the world in innovation and growth. On #MFGDay20 we celebrate all the workers and job creators who build high-quality, made-in-America products that drive our economy forward. @MfgDay @TheMfgInstitute @ShopFloorNAM #CreatorsWanted pic.twitter.com/ubxPiKKvVZ
— Jackie Walorski (@RepWalorski) October 2, 2020
Virtual shop floor tours: Meanwhile, hundreds of manufacturers—in 49 states—invited students to “tour” their facilities via virtual events.
Proud to join our industry today to recognize the importance of modern manufacturing and inspire the next generation of talent nationwide. https://t.co/IOQMCwnCcV #CreatorsWanted @TheMFGInstitute @ShopfloorNAM #MFGDAY20
— Caglayan Arkan (@Caglayan_Arkan) October 2, 2020
PTC is bringing #MFGDay2020 to life (and virtually, of course). Learn how we’re celebrating the next generation of #manufacturers.
[@MfgDay]
— PTC (@PTC) October 2, 2020
Modern day #manufacturing has evolved tremendously and I’m proud we were able to offer a glimpse of it to students nationwide who joined @SchneiderElec's virtual manufacturing tour and panel discussion as part of today’s @ShopFloorNAM's #MFGDAY2020 event. #creatorswanted pic.twitter.com/rpMrRKLGtA
— Annette Clayton (@AClaytonBoard) October 2, 2020
News coverage: MFG Day was also covered by traditional publications. Watch NAM President and CEO Jay Timmons on Yahoo! Finance discussing MFG Day and the need to practice safe social behaviors to combat COVID-19. And read two op-eds by Manufacturing Institute Executive Director Carolyn Lee on the importance of MFG Day, in the Indianapolis Star and Pittsburgh Tribune-Review.
Still more to come: Be sure to join us on Tuesday, Oct. 13, at 12:00 p.m. EDT for another flagship event (presented by Walmart) on how manufacturers are stepping up in response to COVID-19. You can also find more events throughout October on CreatorsWanted.org.
And don’t forget to share your own celebrations of manufacturing by using the hashtags #MFGDay20 and #CreatorsWanted on social media.
MFG Day Is Here!
Today is MFG Day 2020—the year’s largest day of action for modern manufacturing. But it doesn’t stop there: MFG Day launches a month full of manufacturing events, as companies and educational institutions show students, parents, teachers and community leaders the great careers that manufacturing has to offer.
A new look: Thanks to the pandemic, the annual tradition of manufacturing open houses has been transformed into a series of mostly virtual events. This year’s MFG Day will be like no other, offering opportunities for more connection and participation across the industry and country without the limitations of physical events and travel. Hundreds of events will be held throughout October.
A full schedule of national, local and regional events can be found at creatorswanted.org. The Manufacturing Institute is also hosting a series of flagship virtual events, including “Creators Wanted: A Program for America’s Students” today at 12:00 p.m. EDT, presented by Salesforce, PTC and Rockwell Automation, and “Creators Wanted: A Program for America’s Teachers” on Monday, Oct. 5, at 12:00 p.m. EDT, presented by PTC. Share these programs with your networks!
A word from the MI: “As we celebrate MFG Day across the country over the next month, we are reminded of the important role that modern manufacturing plays in each of our lives. From the masks and clothes we wear to the food we eat, modern manufacturing is at the heart of our country and, as the pandemic continues, will lead the way to our recovery and renewal,” said MI Executive Director Carolyn Lee. “This year’s MFG Day, more so than ever before, is a uniquely powerful opportunity to bring awareness to the high-paying, rewarding and meaningful career opportunities in our industry and to open minds to what’s possible with a career in modern manufacturing.”
And . . . Make sure to use the right hashtags to amplify the story of MFG Day: #MFGDay2020 and #CreatorsWanted.
STEP Ahead Awards Showcase Women in Manufacturing
Last night, The Manufacturing Institute hosted the 2020 STEP Ahead Awards, honoring 130 women in manufacturing for their leadership within the industry and the example they set for other women in manufacturing. Though it was a virtual event, the upbeat spirit of these women, who are helping the industry support America through the pandemic, was fully on display—with a massive crowd tuning in online.
Here are a few key quotes from the speakers:
- STEP Chair Erika Peterman, BASF senior vice president for chemical intermediates North America, said, “[In the future], women will continue to be key contributors to our economy. . . . Manufacturing in the future may not look like it does today, but it will be around, and there will be opportunities for professional growth for all workers. And lastly, STEP Ahead will continue to provide programs and forums that foster and encourage females to enter the world of manufacturing and pursue their careers.”
- Manufacturing Institute Executive Director Carolyn Lee: “The most famous symbol of manufacturing in America is a woman, Rosie the Riveter. Rosie inspired women to work in America’s arsenal of democracy during WWII. Today, manufacturers have mobilized to fight a new war, against COVID-19. . . . And that wouldn’t be possible without a dedicated, talented, innovative and diverse workforce. And that includes the women we honor here tonight, who will inspire a new generation.”
- NAM President and CEO Jay Timmons: “I couldn’t wait to raise a glass to all of you tonight. . . . I can’t think of anyone I’d rather toast than the women of manufacturing, because you are the backbone. . . . Our industry will rise to any challenge, so long as talented and driven and heroic women are leading the charge. That’s our past, that’s our present, and there is no doubt that’s our future.”
And there was more . . . The program also featured an appearance by STEP Vice Chair Kathy Wengel (Johnson & Johnson executive vice president and chief global supply chain officer), a cameo from Olympic gold medalist and WNBA MVP Lisa Leslie and a musical performance by the Boys & Girls Clubs of America. The gala’s hosts were NAM Senior Vice President of Communications and Brand Strategy Erin Streeter and PROCEPT BioRobotics Director of Manufacturing Akhila Bhiman, who was also a 2018 STEP Ahead honoree.
MFG Day Gets Celebrity Boost
The success of MFG Day every year depends on the grassroots efforts of manufacturers and manufacturing-supporting organizations across the country. While COVID-19 has changed many MFG Day plans, it hasn’t changed that core reality. But this year, those efforts will be enhanced by virtual MFG Day events organized by The Manufacturing Institute.
- First, on Friday, Oct. 2, at 12:00 p.m. EDT, there’s a program for America’s students headlined by The Space Gal, Emily Dawn Calandrelli, host and co-executive producer of Netflix’s Emily’s Wonder Lab and FOX’s Xploration Outer Space. It’s designed to get students excited about opportunities in the manufacturing industry. The program is presented by Salesforce, PTC and Rockwell Automation, and you can find more information here.
- Second, on Monday, Oct. 5, at 12:00 p.m. EDT, there’s a program to help teachers learn more about what’s possible for their students in a modern manufacturing career. The program is headlined by Allen Gannett, technology entrepreneur and author of “The Creative Curve,” and presented by PTC. You can find more information and register for the event here.
Stay tuned: The MI will be announcing more events in the coming days, including an event for parents—presented by Walmart—highlighting the impact of manufacturers during the pandemic and featuring an interview by legendary broadcaster Elvis Duran.
The strategy: “MFG Day has always been a grassroots movement led by innovative manufacturers. In the face of this year’s challenges, we’re responding by creating opportunities to reach more students, parents and educators,” said MI Executive Director Carolyn Lee. “We are really excited about our opportunity to extend MFG Day with digital programming into more homes and communities, including underrepresented communities, and improve the perception of modern manufacturing careers more broadly.”
Manufacturers Put Forward Bold Actions to Close Opportunity Gap and Transform Industry Workforce
Task Force of Industry Leaders Identify and Offer Next Steps
Washington, D.C. – Following the industry’s June “Pledge for Action,” the National Association of Manufacturers brought industry leaders together to focus on recommending bold next steps manufacturers can take to increase equity and parity for underrepresented communities in America.
The Task Force on Closing the Opportunity Gap has put forth actions that will transform the industry workforce: By 2025, 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 doing so, manufacturing will reflect the diversity of the overall U.S. workforce by 2030.
The Manufacturing Institute, the NAM’s workforce development and education partner, will collect individual commitments from companies to ensure that the goal of 50,000 actions is met by 2025 and that the industry reaches its diversity goals by 2030. NAM President and CEO Jay Timmons affirmed the commitment on behalf of the industry.
Timmons, Trane Technologies Chairman and CEO and NAM Board Chair Mike Lamach and Manufacturing Institute Executive Director Carolyn Lee made the following statements on this landmark initiative.
“Our industry plays an integral role in lifting up people and communities,” said Lamach, “and now we have a special obligation to stand with and support all people who face injustice. We must play a part in tearing down the persistent and pernicious structural barriers to opportunity in this country.”
“I am proud to make this commitment on behalf of the industry and thank Mike and the task force for their leadership. As manufacturers across America redouble our efforts to build more inclusive and equitable workplaces and communities, we will be the catalyst for even greater change,” said Timmons. “We can spark a chain reaction for equity—that makes our businesses more successful, our communities stronger and our nation one that truly guarantees ‘liberty and justice for all.’”
“Not only are manufacturers making a bold promise, but they are also committing to be held accountable,” said Lee. “The Manufacturing Institute will collect individual commitments from companies, support their efforts with key resources and track the industry’s progress in creating these opportunities and pathways over the coming years to ensure we reach our 2030 target.”
Background on the Task Force: On June 11, the NAM’s Executive Committee unanimously approved the 11-point “Pledge for Action” to advance justice, equality and opportunity for Black people and all people of color. The Task Force on Closing the Opportunity Gap’s commitment, announced today, follows through on elements of the “Pledge for Action.”
Members of the task force include the following:
- Task Force Chair: Mike Lamach, chairman and CEO, Trane Technologies and NAM Board chair
- Dev Ahuja, SVP and CFO, Novelis Inc.
- Alejandro Alvarez, SVP, chief production officer and sustainability officer, Brown-Forman Corporation
- Neil Chapman, senior vice president, Exxon Mobil Corporation
- Julie Copeland, CEO, Arbill
- Mark Cordova, president, Centennial Bolt, Inc.
- Chris Edwards, Co-CEO, Edward Marc Brands, Inc.
- Jim Fitterling, chairman and CEO, Dow Inc. and NAM Board vice chair
- Vicki Holt, president and CEO, Protolabs and NAM Small and Medium Manufacturers Group vice chair
- Frederick Humphries, corporate VP, U.S. government affairs, Microsoft Corporation
- Vimal Kapur, president and CEO, Honeywell Building Technologies
- Lawrence Kurzius, chairman, president and CEO, McCormick & Company, Inc.
- Mike McDermott, president, Pfizer global supply, Pfizer, Inc.
- Aneesa Muthana, president and CEO, Pioneer Service Inc.
- Chris Nielsen, EVP – product support and chief quality officer, Toyota Motor North America
- Quentin Roach, SVP – global supply chain and chief procurement officer, Mondelez International
- Kathy Wengel, EVP, chief global supply chain officer, Johnson & Johnson
- Chris Womack, president, external affairs, Southern Company
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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 more than 12.1 million men and women, contributes $2.36 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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