trends in the manufacturing sector in massachusetts sharing skills ~ building connection conference,...

Trends in the Manufacturing Sector

in Massachusetts

Sharing Skills ~ Building Connection Conference, March 12, 2008

Rebekah Lashman

Jonathan Latner

Navjeet Singh

Commonwealth Corporation

617-727-8158

March 12, 2008

Agenda

1. Who is in the Audience?

2. Massachusetts Employment Trends

3. Massachusetts Manufacturing Employment Trends

4. How to Engage Local Employers?

5. Sources of Information

6. Evaluation forms

March 12, 2008

Purpose of Workshop

• Introduction

1. How many are already working with a manufacturing organization?

2. What kind of work are you doing? (training, for which occupations or jobs)

3. Purpose

4. What should a workforce professional know about the manufacturing sector?

March 12, 2008

Massachusetts Employment Trends

Source: Bureau of Labor StatisticsCES Data, Seasonally Adjusted Data

January, 2001 – December, 2007Employment is recovering from recession, but has not equaled its Peak: Feb, 2001

February, 20013,372,900

December, 20033,167,100

December, 2007 3,282,100

3,000,000

3,100,000

3,200,000

3,300,000

3,400,000

3,500,000

2001 2002 2003 2004 2005 2006 2007

March 12, 2008

Decline (2001-4)Decline (2001-4) Recovery (2004-6) Recovery (2004-6) Proj. Growth (2006-11)Proj. Growth (2006-11)

Educ. & HealthEduc. & Health

Hotels & FoodHotels & Food

Other ServicesOther Services

ConstructionConstruction

FinanceFinance

GovernmentGovernment

Trade, TransTrade, Trans

InformationInformation

Prof. & Bus. Svcs.Prof. & Bus. Svcs.

ManfgManfg

Source: CommCorp Analysis of New England Economic Partnership Data, November, 2007.

All Numbers in Thousands of Employees

Structural Shifts in the Economy

-76

-34

-24

-20

-19

-11

-1

1

11

27

-14

21

0

-2

8

4

3

2

4

24

-9

33

6

7

1

2

-3

3

19

62

There is a shift in employment – towards Healthcare & Education and Professional and Business Services

March 12, 2008

5

17

2

24

3

5

2

2

9

22

-9

33

6

7

1

2

-3

3

19

62

MassachusettsGrowth projected, 2006-2011 (‘000)

Massachusetts Projected Employment Growth and Current Job Openings

Source: CommCorp Analysis of New England Economic Partnership Data

Source: Department of Workforce Development

= Net New Jobs in Future

Includes Replacement Jobs and New Jobs = Current Hiring Needs

MassachusettsJob Vacancies, Q4, 2006 (‘000)

Educ. & HealthEduc. & Health

Hotels & FoodHotels & Food

Other ServicesOther Services

ConstructionConstruction

FinanceFinance

GovernmentGovernment

Trade, TransTrade, Trans

InformationInformation

Prof. & Bus. Svcs.Prof. & Bus. Svcs.

ManfgManfg

March 12, 2008

Source: Bureau of Labor StatisticsQuarterly Census of Employment & WagesAnnualized 2006 data

Where do people work in Massachusetts?

1,7246,633

12,988

44,592

47,356

62,123

92,511

93,164

122,703

132,954

136,663

152,246

168,727

179,735

244,032

249,397

299,477

309,680

351,156470,466

Mining

Agri, Forestry & Fishing

Utilities

Real Estate

Arts, Entert.

Mgt. of Cos.

Trans./Warehous.

Information

Other Services

Public Admin.

Wholesale

Construction

Admin./Waste Svcs.

Finance-Insurance

Prof./ Tech. Svcs.

Hotels, Food Services

Manufacturing

Education

Retail

Health Care

Manufacturing is one of the Largest Sectors in Massachusetts

2006 Employment

March 12, 2008

How has Massachusetts Manufacturing Employment Changed since 1990?

Source: Bureau of Labor StatisticsCurrent Employment StatisticsSeasonally Adjusted1990 – 2007

January, 1990 494,800

November, 2007 294,900

-

100,000

200,000

300,000

400,000

500,000

600,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

March 12, 2008

Share of Total Employment in Manufacturing in Massachusetts and United States, 1990 - 2006

16.6%

14.4%

12.5%

9.4%

16.2%

14.7%

13.1%

10.4%

0%

6%

12%

18%

1990 1995 2000 2006

Massachusetts

United States

Source: Bureau of Labor StatisticsQuarterly Census of Employment & WagesAnnualized 1990, 1995, 2000, & 2006 data

March 12, 2008

Manufacturing Revenues have been Increasing, 1997 - 2006

Source: Bureau of Economic Analysis,Regional Economic Accounts, GDP by State1997 – 2006

$222

$338

$30 $33

$-

$50

$100

$150

$200

$250

$300

$350

$400

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

$ billion

Manufacturing revenues

Mass. State Product (All Sectors)

March 12, 2008

What is the Employment in Different Sub-sectors in Manufacturing (2006)?

1,2462,5642,5922,6713,3783,6565,0435,4976,3836,789

11,27712,311

14,46615,65416,05317,112

19,99722,83523,608

35,16871,178

Petroleum and Coal Leather and Allied

Beverage and Tobacco Textile Product Mills

Wood Apparel

Primary Metal Furniture and Related

Textile MillsNonmetallic Mineral

Electrical Equipment, Appliance, and Component Paper

Transportation Equipment Plastics and Rubber

Printing and Related ActivitiesChemical

Machinery Food

Miscellaneous Fabricated Metal

Computer and Electronic

Source: Bureau of Labor StatisticsQuarterly Census of Employment & Wages2006 data

March 12, 2008

What are Employment Trends 2000-2004 in Manufacturing Sub-sectors?

71-751-523

-1,044172

-3,375-2,108

-1,266-3,659

-2,010-5,268-4,546

-3,394-5,947

-4,323-2,073

-10,708-652

-5,467-9,644

-28,664



Wood Apparel





Printing and Related Support ActivitiesChemical

Machinery Food



Source: Bureau of Labor StatisticsQuarterly Census of Employment & Wages2000 & 2004 data

Change in employment 2000-2004

March 12, 2008

What are Employment Trends since 2004 in Manufacturing Sub-sectors?

7477

-119-140

-43-516-633-195

-2,41720514

-1,813286

-1,107-304

726-1,902

336-2,650

-1,146-2,941



Wood Apparel





Printing and Related Support ActivitiesChemical

Machinery Food



Source: Bureau of Labor StatisticsQuarterly Census of Employment & Wages2004 & 2006 data

Change in employment 2004-2006

March 12, 2008

What are Average Annual Total Wages for Different Sectors in Massachusetts, 2006

Source: Bureau of Labor StatisticsQuarterly Census of Employment & Wages2006 data

$53,689

$43,075

$80,369

$54,402

$31,086

$88,469

$43,430

$77,517

$26,773

$53,973

$72,813

$54,938

$35,680

$103,834

$87,920

$18,215

$65,333

$46,555

$27,312

$45,647

$0 $52,396 $104,792

Mining

AFF

Utilities

Real Estate

Arts

Mgmt. Of Co.

Transp. & Warehousing

Information

Other Svcs.

Government

Wholesale Trade

Construction

Admin. Svcs.

Finance

Prof. Tech. Svcs.

Hotels & Food Svcs.

Manufacturing

Education

Retail

Health Care

Red line indicates the Massachusetts state average Total Wages in 2006

March 12, 2008

How is Manufacturing Employment Distributed in different Workforce Areas in Massachusetts?

Source: Executive Office of Labor and Workforce Development, Division of Career ServicesQuarterly Census of Employment & WagesAnnualized 2006 data

2,424

6,142

8,461

8,665

10,974

11,227

11,868

15,480

19,032

20,116

21,481

24,098

25,163

27,678

27,740

58,799

Cape.Cod

Berkshire

Brockton

Franklin.Hampshire

Boston

So.Coastal

New.Bedford

No.Worcester

No.Middlesex

So.Essex

Bristol

Hampden

Lower.Merrimack.Valley

So.Worcester

Metro.North

Metro.South.West

March 12, 2008

What is the local share of Manufacturing Employment Different Workforce Areas?

March 12, 2008

What are the Major Manufacturing Sub-sectors in Different Workforce Areas of the State?

March 12, 2008

What are “Sectors” and “Occupations?”

• Where people work? – Sectors, Sub-sectors, Industries– Examples: Manufacturing, Computer & Electronic

Products, Audio & Visual Equipment

• What people do? – Occupational Groups, Occupations, – Examples: Production Workers, Machinists,

Engineers, Home Health Aides

March 12, 2008

Where do Production Occupations work, 2005?

Source: Executive Office of Labor and Workforce Development, Division of Career ServicesOccupational Employment by Industry, May, 2005

Sector

Pro

du

ction

Ad

min

istratio

n

Arch

itectu

re &

E

ng

ine

erin

g

Ma

na

ge

me

nt

Tra

nsp

orta

tion

Bu

sine

ss & F

ina

ncia

l

Co

mp

ute

r & M

ath

Sa

les

Insta

llatio

n

Manufacturing 74% 12% 9% 8% 6% 4% 5% 4% 3%

Administrative 5%

Retail 4%

Other Services 4%

Wholesale 4%

Prof. Svcs. 2%

Healthcare 1%

Other 6%

Share (%) of Employees from Major Occupations Working in Manufacturing

March 12, 2008

What are Different Jobs in the Manufacturing Sector in Massachusetts and US, 2005?

MA Source: Executive Office of Labor and Workforce DevelopmentIndustry Staffing Patterns, May, 2005US Source: Bureau of Labor StatisticsNational Industry Specific Occupational Employment & Wage Estimates, May, 2005

4%

1%

5%

3%

3%

2%

9%

5%

6%

10%

52%

4%

2%

3%

4%

4%

5%

6%

8%

9%

12%

43%

0% 10% 20% 30% 40% 50% 60%

Other

Sciences

Installation & Repair

Financial

Sales

Comp. & Math

Transportation

Management

Engineering

Administrative

Production

MassachusettsUnited States

March 12, 2008

What is the Share of Production Workers Among Manufacturing Employees in Different Areas

March 12, 2008

47,070

3,240

3,640

9,690

10,550

13,410

15,130

33,900

38,080

Other Production Occupations

Woodworkers

Plant and System Operators

Printing Workers

Food Processing Workers

Supervisors

Textile Workers

Assemblers and Fabricators

Metal and Plastic Workers

What are Major Production Occupations in Massachusetts, 2006?

Source: Bureau of Labor StatisticsOccupational Employment Statistics, 2006

2006 Employment

March 12, 2008

What do Production Workers earn?

Source: Bureau of Labor StatisticsOccupational Employment Statistics, 2006

$34,214

$44,745

$34,990

$28,584

$54,370

$23,397

$29,213

$35,907

$30,858

$0 $47,340

Woodworkers

Plant and System Operators

Printing Workers

Food Processing Workers

Supervisors

Textile Workers

Assemblers and Fabricators

Metal and Plastic Workers

Other Production Occupations

2006 Average Salary

Red line indicates the Massachusetts state average salary in 2006

March 12, 2008

How much do Production Workers earn by Workforce Investment Area, 2005

$32,578$36,253

$33,439$30,776

$33,059$28,346

$36,814$33,674

$44,588$39,567$39,595

$37,295$45,379

$46,596$36,265

$50,202

$0 $38,794

HampdenBerkshireBrockton

BristolFranklin/Hampshire

New BedfordSouthern WorcesterNorthern Worcester

South EssexLower Merrimack

BostonSouth Coastal

Metro NorthNorthern Middlesex

Cape Cod and IslandsMetro South/West

Red line indicates the Median Total Wages of Production Workers in Massachusetts

Source: Executive Office of Labor and Workforce DevelopmentDivision of Career ServicesOccupational Employment and Wage Industry Staffing PatternsMay, 2005

March 12, 2008

What is the Share of Production Workers Among Manufacturing Employees in Different Areas

March 12, 2008

Change in Educational Attainment of Workers in the Manufacturing Industry in Massachusetts,

2000 - 2006

2000 Census PUMS Data, 5% sample2006 ACS PUMS DataPopulation aged 25 or older

12%

22%

8%

16%

30%

12%

10%

19%

7%

19%

30%

15%

Masters or more

Bachelors degree

Associates degree

Some College

Highschool diploma

Less than highschool

20002006

March 12, 2008

Change in Educational Attainment of Workers in Production Occupations in Massachusetts, 2000 -

2006


0%

6%

5%

16%

43%

28%

0%

7%

7%

15%

47%

21%

Masters and Above

Bachelors

Associates

Some college

High school diploma

Less than highschool

20002006

March 12, 2008

Age Distribution of Workers in the Manufacturing Industry in Massachusetts, 2000 - 2006


8%

21%

31%

25%

13%

3%

13%

23%

26%

22%

11%

4%

6%

18%

27%

30%

16%

3%

13%

20%

24% 24%

14%

4%

15-24 25 - 34 35 - 44 45 - 54 55 - 64 65+ 15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+

Manufacturing All Industries

2000 2006

March 12, 2008

Massachusetts Vacancies in the Manufacturing Sector, 2006 (4th Quarter)

Q4, 2006 Job Vacancy Survey Number of

Vacancies

Vacancy

Rate

Percent Requiring an

Associate's Degree or Higher

Percent Requiring

Related Experience

Total,

All Sectors92,639 3.2% 38% 54%

Retail Trade 18,795 5.7% 2% 13%

Healthcare & Social Assistance 71,621 4.0% 54% 68%

Professional & Technical Services

10,132 5.0% 87% 80%

Accommodation & Food Services 7,532 3.3% 25% 71%

Manufacturing 5,464 1.9% 57% 82%

Source: Department Workforce Development,Division of Career Services, Job Vacancy Survey (JVS), Q4, 2006

March 12, 2008

Vacancies in the Massachusetts Manufacturing Sector by Occupational

Group, 2006 (4th Quarter)

Source: Executive Office of Labor and Workforce Development,Division of Career Services, Job Vacancy Survey, Q4, 2006

Occupational Categories # of Vacancies in the Manufacturing Industry

% of Vacancies in the Manufacturing Industry

Manufacturing Industry 5,464 100%

Production Occupations 1,390 26%

Architecture and Engineering 910 17%

Management 617 11%

Computer and Mathematical 512 9%

Office and Administrative Support 479 9%

Business and Financial 451 8%

Transportation and Material Moving

286 5%

Life, Physical, and Social Science 284 5%

Other 535 10%

March 12, 2008

What are the Largest Occupations in the Manufacturing Sector?

• Which occupations have the most employees?• What have been recent employment trends?• What do they get paid? • What are their education or training

requirements?• How many vacancies did they have?• Which of these are ‘critical’ vacancies?• What are projections for new jobs and

replacement jobs?

March 12, 2008

Engaging your Local Employers

1. Using the chartbook with you local employers

2. General questions to ask local employers

March 12, 2008

Selected Sources of Information

Critical Vacancieshttp://www.commcorp.org/researchandevaluation/vacancy-critical.html

Industry-Staffing Patterns

http://lmi2.detma.org/Lmi/FPlmiforms1.aspOccupational Employment by Industry

Job Vacancy Surveyhttp://lmi2.detma.org/Lmi/LMIjobvacancy.asp

Educational Attainmenthttp://www.bls.gov/emp/empeted1.htm

Industry Employment and Wageshttp://www.bls.gov/cew/

Occupational Employment and Wageshttp://www.bls.gov/oes/

http://www.commcorp.org/researchandevaluation/vacancy-critical.html

http://lmi2.detma.org/Lmi/FPlmiforms1.asp

http://lmi2.detma.org/Lmi/LMIjobvacancy.asp

http://www.bls.gov/emp/empeted1.htm

http://www.bls.gov/cew/

http://www.bls.gov/oes/

trends in the manufacturing sector in massachusetts sharing skills ~ building connection conference,...

Documents

employment slide

data slide

massachusetts growth

manfg slide

manufacturing sector

manufacturing revenues

manfg source

share of total employment