WIRE-Net: Where Manufacturing Matters

  Presentation to the Investing in Workers Conference, Columbus, Ohio, October 2006.

1. Manufacturing Skills Gaps in Ohio

2. WIRE-Net’s Approach

3. Funding for Training & Education

WIRE-Net4855 W. 130th Street, Cleveland, OH 44135 USA

Tel: (216) 588-1440 Internet: www.wire-net.orgJColm@wire-net.org

The Pain

National Studies Highlight the Challenge

1. Skill shortages are broad and deep. Over 80% of firms surveyed in NAM’s 2005 report are feeling the pain…the same as in 2001 when last surveyed. (http://www.nam.org/s_nam/sec.asp?CID=201501&DID=229883)

2. Skills needed: skilled production workers; scientists/engineers; and 39% with a shortage of unskilled production workers.

3. Successful employees will have strong basic employability and technical skills, combined with strong workplace communication and interpersonal skills.

Echoes in Ohio

1. Governor’s Workforce Policy Board: AdvanceOhio June 2005 (http://www.advanceohio.voslergroup.com/

2. Statewide survey: what’s keeping mfrs from finding the right people?

Survey Respondents: 45,500 jobs to be filled over the next 3 years. 61% entry level like machine operators, material handlers.

Statewide projections: 400,000 positions to be filled; 250,000 entry level.

Difficulty filling the positions: More than 60% anticipate difficulty filling these positions.

Work Ethic (interpersonal skills, initiative, dependability)

Experience Technical Skills

Echoes in Cuyahoga County

1. Mfg Focus Group, Aug 2006:

2. 30 mfg ERs; educators; business organizations.

• Metalworking

• Plastics

• Machinery builders

• Rocket builders (i.e., NASA)

3. Skills Needed: employability skills, computer numeric controlled machining, lean mfg, advanced welding, plastics processing, electrical-mechanical maintenance.

Opportunities to Connect

1. Integrate school based training with companies’ on-the-job training.

2. Develop new adult intern or co-op programs3. Better integrate computer based and on-the-

job training. Train the trainer so companies do better themselves.

4. Document training results and outcomes so ERs know you can deliver.

5. Create stronger incentives for companies to train.

6. Help reposition mfg so ERs can overcome image issues.

WIRE-Net Approach

Formed in 1986 when most economic development was about downtown office buildings (UDAGs).

Pioneering private, non-profit, economic development organization.

Membership based: 215 mfg and related member companies.

$1.7 million budget and 15 staff. 1/3 in adult and youth employment

Work only with manufacturing.

WIRE-Net 101

Sectoral employment focus: Precision machining (with NASA’s Glenn Research Ctr); Foundations in Mfg Skills with Tri-C Industrial Distribution (with PTDA, NAM, Tri-C). Metal Working (with Cleve/Cuy WIB, CMSD, Tri-C)

Principles Maximize existing training capacity Employer driven Connect people to training and careers now Encourage internal training to improve retention and

advancement WN serves the whole company:

People (Workforce Education); Process (Mfg Innovation and Markets); Place (Industrial Redevelopment).

Sectoral Approach

A new name for a common sense approach to workforce training.

Understand your market, starting with your final customer, the Employer.

Industry Targeted, with its occupations or cluster of occupations.

Understand the context: training institutions, industry associations, supply chain, current and emerging economic and competitive conditions.

Look for win-win solutions: Outcomes for ERs: productivity, retention, reduced

costs. Outcomes for EEs: earning power, benefits, education,

career path. Stronger, more effective system.

Sectoral Employment programs… target an industry and its occupations to improve quality of job opportunities for low income people and to support economic development..

WIRE-Net’s Approach

Get Out There: Year-round outreach to targeted employers.

Get Integrated: Link mfg with workforce development.

Get Noticed: Advocate for the needs you can’t resolve to Community Colleges, WIBS, and policy makers.

Get Relevant: HR Roundtable, HR Consulting.

Get Leverage from ER relationships: Adult and Youth.

Get Connected: to Economic Development: firms hiring often need space, equipment, financing.

Sectoral Employment programs… become valued partners to industry, and leverage that value to create win-win partnerships for industry and workers.

WIRE-Net Works

School to Career: Where Futures Matter. Life Skills, Employability and industry

specific training. Job Shadowing Paid Apprenticeship for Youth (PAY) Accelerated Introduction to

Manufacturing (AIM) Summer program

WIRE-Net WORKS

WorkSource For Job Seekers:

Pre-employment screening and referral. Career Assessment. Jobs Leads.

For Employers Professional, targeted recruitment, screening,

assessment, retention. Resource connections: for recruitment, HR

support, training dollars. IMPACT:

350 unique firms served since 1989. 239 adults placed in last 3 years. Over $5,000,000 direct annual economic impact

Ohio: In the Cross Hairs

• State in transition… including manufacturing. 2000-04: 1500+ Ohio mfg firms lost. Over 200,000 jobs and $4.4 M in wages

each year.• Companies doing more with fewer people…

and despite competitive pressure on wages, skills must be ever sharper.

• Federal response? Cuts in funding for training and education.

• Contrary to Bush Administration’s “Mfg in America” report calling for transitional programs.

Training & Education Funding (Comparing 2007 to 2006 Funding)

HOUSE BILL 5647 cuts $27 million for Ohio’s WIA, Pell Grants.

SENATE BILL 3708 cuts $23 million in Ohio’s WIA, Pell Grants.

Both leave Vocational and Adult Ed stagnant, ignoring inflation, and economic dislocation.

From 2001-2006, these programs have already been cut by $78 million in inflation adjusted dollars in Ohio alone.

HOLD THESE PROGRAMS HARMLESS.

CONTACT YOUR OHIO SENATORS:

Voinovich: (202) 224-3353 http://voinovich.senate.gov

DeWine: (202) 224-2315 http://dewine.senate.gov/

More Info: The Workforce Alliance: www.workforcealliance.org

WIRE-Net What others are saying:

www.wire-net.org

PUBLIC/PRIVATE VENTURES:www.ppv.org/index.asp

FORD FOUNDATIONwww.fordfound.org/elibrary/documents/0212/toc.cfm

Ford Foundation Corporate Involvement Initiative www.winwinpartner.com/Human%20Resources/ssKirby.html

National Association of Manufacturers (NAM)www.nam.org/s_nam/doc1.asp?CID=183&DID=236658

Charles Stewart Mott Foundationwww.mott.org/publications/pdf/Memov2n1.pdf

North Carolina Rural Economic Development Center www.ncruralcenter.org/rdwi/PromisingPractices.pdf

Center For Community Change www.communitychange.org/about/publications/?page=economicdevelopment

PolicyLinkwww.policylink.org/pdfs/CoreCities.pdf

Alliance for Regional Stewardship www.regionalstewardship.org/ARS_forums/boston/IS_monograph.pdf