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  • 1. Workforce Skills Shortage

2. Manufacturers Say Open Jobs Require More Skills Than Available Workers Have.The website EconomyWatch.com (7/22) examined why manufacturers say that they cannotfind the right people to hire. Baiju R. Shah, head of BioEnterprise, a Cleveland nonprofit "trying to turn the region into a center for medical innovation," says, "The people that areout of work just dont match the types of jobs that are here, open and growing." Cleveland"has added 4,500 positions" since the beginning of the year, but in nontraditional areas. One company, Ben Venue, which makes drugs on contract for pharmaceutical companies, "has recruited about half its new factory hires from outside the pool of formermanufacturing workers." At Astro Manufacturing and Design, which makes parts anddevices for aerospace, medical and military industries in the Cleveland area, "an outsiderecruiter has reviewed 50 rsums in the last month and come up empty" for jobs that pay$18-23 per hour but "require considerable technical skill." 3. Factory Jobs Returning, But Employers Struggling With Skills Shortage. The New York Times (7/2, A1, Rich) reports on its front page, "Factory owners have beenadding jobs slowly but steadily since the beginning of the year, giving a lift to the fragileeconomic recovery. And because they laid off so many workers...manufacturers now have avast pool of people to choose from." However, "some of these employers complain thatthey cannot fill their openings," pointing to "a mismatch between the kind of skilled workers needed and the ranks of the unemployed." This is partly due to domesticmanufacturers having "accelerated the long-term move toward greater automation" as theyoutsourced and laid off workers. "Now they are looking to hire people who can operatesophisticated computerized machinery, follow complex blueprints and demonstrate highermath proficiency than was previously required of the typical assembly line worker." 4. British Columbia Suffers From Shortage Of Skilled Workers.The Vancouver Sun (6/26) reported, "a looming labour shortage and dwindling number of skilled workers immigrating to B.C. mean the province will be forced to" begin depending on"immigrants to fill about one in three job openings, according to the recently released British Columbia Labour Market Outlook: 2009-2019. At the same time, the number of skilled workers immigrating to the province appears to have hit a 15-year low." The Sun noted that "About15,100 skilled workers settled in the province last year, based on BC Stats numbers and provincialgovernment targets. Its the lowest total since 1994." "Immigration is the key to future economic growth in B.C.," said Moira Stilwell, the minister in charge of labour market development. "Even though the economy has slowed down, skilled labour shortages remain." Lack Of Skilled Workers Affecting South Australia. Australias Adelaidenow (6/27) reportedthe motor industry "are finding it increasingly difficult to find skilled workers," but notes that "more than half its employers will take on additional tradesmen and apprentices in the next 12months." Additionally, "The industry warns that to pay skilled workers and take on moreapprentices, the industry and the public would have to look at paying more to repair modernvehicles." The survey showed 51% of employers may take on new tradesmen and apprentices in the next 12 months a rise from 43% in 2009. 5. Whirlpool Shuts Down Factory In Evansville, Indiana.The AP (6/25) reported, "Hundreds of people worked their final shifts Friday at a Whirlpool Corp. refrigerator factory in southern Indiana that has been the site of protests over its closure." The plants production line was shutting down after 54 years, leaving 600 workers without jobs. An additional 450 employees were laid off in March when Whirlpool decided to end its second production shift. Whirlpool announced last year "that it would shut down the factory and move production to Mexico. Whirlpool will still have a presence in the city, with 300 employees at its refrigeration design center." The AP noted "months of protests over the closing plans didntchange the decision, which executives of the Benton Harbor, Mich.-based company said wasneeded to reduce costs and streamline its operations." 6. Factory Jobs Return, but Employers Find Skills Shortage Source: The New York Times - July 1, 2010Factory owners have been adding jobs slowly but steadily since the beginning of the year, giving a lift to the fragile economic recovery. Because they laid off so many workers -- more than two million since the end of 2007 -- manufacturers now have a vast pool of people to choosefrom. Yet some of these employers complain that they cannot fill their openings. Although plentyof people are applying for the jobs, the problem is a mismatch between the kind of skilled workers needed and the ranks of the unemployed. 7. Is a worker shortage on the horizon?With millions of unemployed people across the country struggling to find work, it may seem unbelievable that a worker shortage could develop within 10 years as baby boomers reach traditional retirement age. That is the predicted trend, according to a report published by the MetLife Foundation and San Francisco-based Civic Ventures, a think tank focusing on baby boomers, work and social purpose.When the nation comes out of the current jobs recession and this may take two to three years we will begin to see spot shortages in labor markets, according to the report. If the economy continues to improve, the spot shortages will become more general, and we willexperience the shortages our research projects. By analyzing government labor and population trend data, and taking into consideration thatbaby boomers are expected to retire later than previous generations, the report indicates therewould be 3.3 million to 4 million vacant jobs.Source: MarketWatch.com, March 22, 2010 8. Manufacturers Partner With University Of Phoenix To Create Manufacturing Skills Curriculum.IndustryWeek (3/18) reports, "Progress toward a manufacturing certification program gainedstrength after the NAM and the University of Phoenix said...they have partnered to developcurriculum aimed at developing manufacturing skills." The program "will be designed to alignwith the NAM-endorsed Manufacturing Skills Certification System. The University of Phoenix willoffer programs that enable manufacturing workers to advance in their careers while acquiring theskills and competencies required for certification, which was developed by NAMs education andresearch arm The Manufacturing Institute." Last year, "nearly 12 million Americans workeddirectly in manufacturing -- about 10% of the overall workforce." The Phoenix Business Journal (3/18) reports, "University of Phoenix is working with thenonprofit Manufacturing Institute to develop curriculum designed to prepare students for careersin the industry." Through the partnership, the university "will offer programs that enable workingstudents to advance in their careers with an emphasis on strategic planning and new technologies to help ensure that the manufacturing sector stays current and competitive in a global market." 9. Amid Waning Job Openings, A Shortage Of Skilled Workers.The CBS Evening News (8/11, story 12, 2:30, Hill) reported that "there are more signs theeconomy is slowing again, including this one. There were 60,000 fewer job openings in June than the month before, which means there are now five unemployed workers competing for every one job." However, "there are jobs to be had for skilled workers." CBS (Bowers) added, "By theyear 2012, its estimated this country will be three million skilled workers short. And its not justin the manufacturing sector. 22% of American businesses, according to a recent survey, said theyre ready to hire if they could find the right people." 10. Cincinnati, Northern Kentucky Manufacturers Could Face SkilledLabor Shortage. The Cincinnati (OH) Enquirer (9/6, Boyer) reported, "Nearly 38,000manufacturing jobs have been lost in Greater Cincinnati andNorthern Kentucky over the past 10 years, but this industry is farfrom dying. ... Manufacturers are producing airplane parts, vinylwindows, prefab bridges, burial caskets and movie-theater popcornmachines. Employment is starting to creep back up," and"employers are promoting high-tech positions that can pay up to$25 an hour, with excellent fringe benefits." Manufacturers notethat "their main challenge is not a loss of work, but findingsufficient new workers with specialized, high-tech skills. Unlesssignificant gains are made, the industry that helped build theMidwest faces a future labor shortage caused by the exodus ofaging employees and an outdated image of unskilled factory work." 11. Technology, Training Both Key Aspects Of Advanced Manufacturing. IndustryWeek (9/22, Katz) reports, "Manufacturers are using acombination of technologies, processes and education to promote a newera of US manufacturing that cant be easily replicated by competitors."While advanced manufacturing has "been used loosely to explain anynumber of methods that take manufacturing operations to another levelnot easily replicated by competitors," IndustryWeek points to a definitionfrom the Anderson Economic Group classifying it as operations that"create advanced products, use innovative techniques in theirmanufacturing, and are inventing new processes and technologies forfuture manufacturing." Experts note that other factors play a part. "StevenDwyer, president and CEO of advanced-manufacturing consortiumConexus Indiana, includes continuous-improvement principles such aslean manufacturing." Skilled worker shortages are also an issue, andDwyer said the consortium is "enlisting area manufacturers to helpdevelop an advanced-manufacturing curriculum for area high schools andcolleges." 12. Blue-Collar Workers May Face Bleak Future. In a 4,000-word feature article, Reuters (9/16) reports on the "long-term unemployed," particularly the middle-class, blue collar factoryand construction workers that represented a significant portion ofthe population of states like Michigan. According to many experts,the jobs of this type that were lost in the recession are unlikely tocome back when the economy picks up again. "Its competitiveforces and technology that (are) taking those jobs and reducingthem in both quantity and complexity," explained Manpower CEOJeff Joerres. As a result, the jobs that do return will likely either bepoorly paid, or require specific technical skills. The article profilessome workers who are facing long-term unemployment. It alsonotes that some companies have been critical of the governmentresponse to the crisis, arguing that job creation should have been alarger priority, and that infrastructure projects should have beenbetter funded. 13. Future Hiring Expected To Split Between Highly Skilled And ServiceIndustry Jobs. The AP (9/6, Rugaber, Liedtke) reported, "Whenever companies starthiring freely again, job-seekers with specialized skills and education willhave plenty of good opportunities. Others will face a choice: Take a jobwith low pay - or none at all." According to some economists predictions,new jobs will be created in these two categories in "roughly equalnumbers," while the outlook for jobs falling between these two categoriesis "bleaker," with "fewer moderately paid factory supervisors, postalworkers and office administrators." Those jobs projected "to grow fastest,according to economists and government projections," include those inhealthcare, information technology and "new industries," such aspredictive analytics. Experts noted that technology is a powerful butunpredictable economic driver, and that until there is more "clarity onwhat the next big thing is going to be," job seekers may "have to lowerexpectations and living standards as they enter fields with less pay andless job stability." 14. Manufacturing Faces "Schizophrenic Attitude" In The US.In his Washington Post (8/31) column, Ezra Klein wrote thatduring research for an article several years ago he foundthat manufacturing "was caught in transition between itspast glory as the provider of good, upwardly mobile, blue-collar jobs, and its future as a smaller, high-skills, high-techindustry. The problem was that the collapse of low-skillmanufacturing had scared off the talent needed for high-skill manufacturing," and the US lost manufacturing jobs onboth ends of the talent spectrum. He notes a recent blogpost by Kathleen Fasanella in which she laments Americas"schizophrenic attitude about manufacturing," at oncecelebrating factories and thinking they "are terrible places." 15. Lack Of Skilled Workers Could Slow Recovery, Manpower Survey Finds. American Public Medias Marketplace (8/25, Radke, Genzer) reported, "We got a new reporttoday from the employment agency Manpower that says skilled workers like carpenters,electricians and plumbers are in very short supply," despite the decline in home construction."Its actually a worldwide problem," and due in part to the fact that "the skilled trades havean image problem." The Manpower survey "found that a lack of skilled tradesman was thenumber one hiring challenge for the US and five other leading industrialized countries." ClarkUniversity business professor Gary Chaison "says construction firms and other businesses arealso having a hard time finding" skilled workers, and the "shortage will just get worse as theeconomy starts to recover and companies become more interested in hiring." MLive.com (8/26, Headapohl) reports that Manpowers 2010 Talent Shortage Surveynamed "the United States, Germany, France, Italy, Canada and Brazil" as some of thecountries "where employers ranked skilled trades as their number one or number two hiringchallenge." Manpower CEO Jeff Joerres said, "Inadequate training and negative stereotypesrelating to skilled trades are further fueling a dangerous shortage of skilled workers. ...Employers and governments need to bring honor back to the skilled trades." The report"recommends a strategic migration policy as a short-term solution to ensure that enoughworkers are available to complete key projects. It also recommends promoting the skilledtrades in order to plug the talent gap." Reuters (8/26, Zieminski) quotes Joerres as saying that the skilled labor shortage willbecome "a real choke-point in future economic growth." The International Business Times(8/26, Li) reports, "The skilled labor shortage is not limited to developed countries, however.The apparent shortage in large developing countries like China, India, and Brazil may impedethe progress of infrastructure projects and jeopardize national growth, said Manpower." TheMilwaukee Business Journal (8/26) also reports the story. 16. High Unemployment Attributed To Labor Supply Disconnect. RanaForoohar, writing for Newsweek (9/25), says that "even as it tookmore than a year to figure out that the recession was over, it willnow take many more...to ferret out why unemployment stillremains at historic highs even as the economy is growing oncemore. ... A new report by London-based Capital Economics says thatsupply problems -- the workers who need jobs are in the wrongstates, and the wrong fields -- could be responsible for nearly athird of Americas unemployment rate." Some "sectors of theeconomy are growing strongly -- including health and education --but they cant find enough workers, in part because wages havehistorically been too low to attract new talent. While that mismatchmay help teachers and nurses negotiate better pay packages, itwont help bring down unemployment rates among builders andmachinists." 17. Robotics Industry May Grow By $100 Billion OverNext Two Decades. According to TMCnet (9/28, Tuttle), two decades ago,"robotics was thought to be more of a hobby for technologycompanies rather than a field with any real potential. Today,the robotics space is a $6 billion industry in the US alone."Meanwhile, a number of other countries are currentlyconsidering "artificial intelligence, advanced machinery andadvanced material sciences to be major staples of theireconomy." Inside the Bay Area recently reported that "overthe next two decades, the industry is expected to grow byanother $100 billion." 18. Companies Looking For Employees With MultipleSkills. The AP (10/11) reports, "The jobs crisis has brought anunwelcome discovery for many unemployedAmericans: Job openings in their old fields exist. Yetthey no longer qualify for them." This is "a trend thattook root during the recession. Companies becamemore productive by doing more with fewer workers.Some asked staffers to take on a broader array ofduties - duties that used to be spread among multiplejobs." 19. Nashville To See Worker Shortage In A Few Years, According ToStudy. The Nashville (TN) Business Journal (10/1, Hieb) reports, "Nashvillewill experience a worker shortage starting in the middle of thisdecade, according to a report. .. The shortage will be caused byretiring baby boomers, a smaller crop of workers to replace them,and continued job growth." The study "projects that unemploymentwill return to pre-recession levels in 2015 or 2016. By 2019, thestudy projects there will be 23,688 more jobs than there will beworkers to fill them. Professional and business services, health careand financial activities are expected to experience the most growth,with manufacturing continuing to decline." The report calls on"schools and policymakers to guide more people to careers inhealth care, information technology and engineering." 20. Firm Starts Own School To Secure Trained Workforce. NPR s (11/16, Arnold) "All Things Considered" reported, "Someexperts say employers are having trouble finding qualified peoplefor too many" of the three million "job openings across thecountry." Experts "say the problem is that technology is outpacingthe countrys current approach to educating and training workers."Carl Pasciuto, president of the Custom Group, pointed out, "Peoplehave an image of a dark, smoky factory with a dirt floor with metalparts flying everywhere." But "todays advanced manufacturingfacilities like Custom Groups factory look more like well-lit, cleanairplane hangars full of super-high-tech equipment." To address theneed for a trained workforce, Custom Group has "started its owntraining school." Todd DellaPorta, the lead instructor of the school,"says the students education levels and work experience are allover the map, but most are doing well." 21. Connecticut Launches Project To Encourage Students TowardManufacturing Careers. The Manchester (CT) Journal Inquirer (12/11, French) reported,"The Connecticut Center for Advanced Technology in East Hartfordand Rep. John B. Larson, D-1st District, on Friday kicked off thestates participation in a national program to encourage students toconsider jobs in manufacturing." According to Larson, "The DreamIt, Do It program was started by the National Association ofManufacturers and is aimed at addressing the shortage of skilledmanufacturing workers. ... The initiative strives to help studentsunderstand educational paths available to obtain skills that lead togood-paying careers in manufacturing and related businesses tostrengthen our regional economy, he said." 22. Manufacturers Report Difficulties Finding Workers In Ohio. The Dayton Daily News (8/21, Gnau) reported that "state and local manufacturingindustry insiders report" difficulties "finding workers with basic work skills or evena simple desire to work hard at a time when manufacturing in Ohio is rebounding."Michael van Haaren, president and chief operating officer of Troys StillwaterTechnologies Inc, said, "To find young folks interested in the manufacturing andmachine tool trade, with skills and a good work ethic, is getting difficult." JohnGajewski, executive director of manufacturing for the Workforce and EconomicDevelopment Division of Cuyahoga Community College in Cleveland, said, "We inmanufacturing need to do a better job of communicating the opportunities thatare available in manufacturing, and we need our public partners to assist in that."The Middletown (OH) Journal (8/22, Gnau, Sedlak) reports, "Manufacturerssay they are grappling with three challenges, all being felt at about the same time:Advancing technology means companies need workers with greater skill andproblem-solving ability. Older workers, many of them baby boomers, are retiring inincreasing numbers. And during the recent recession, many manufacturers admitthey simply let too many workers go." Gajewski estimates that about "200,000replacement workers will be needed for Ohio manufacturing jobs in the next fiveyears, as older workers retire. He believes it will take a partnership of communitycolleges, universities, businesses and government to begin to fill that gap." 23. Caterpillar CEO: Not Enough Skilled Workers. Reuters (9/13) reports Caterpillar CEO DougOberhelman said that the company isstruggling to find technical, engineeringservice technicians and other workers for itsmanufacturing operations. Oberhelman saidthat the company has to retrain every personit hires 24. Manufacturing Becoming Younger, More Skilled. The St. Cloud (MN) Times (10/23) reported,"Manufacturers face an aging workforce, the tradesincreasingly require higher education and many youngpeople also have relatively weak interest inmanufacturing jobs." Also, manufacturing "battles areputation for low-paying work involving dull andrepetitive tasks. Altering that image could be the mainhurdle to US companies competing in the worldmarket." The Times noted, "According to the NationalAssociation of Manufacturers, average compensationfor a manufacturing job in Minnesota in 2009 wasabove the states average for nonfarm work." 25. Manufacturers In Texas Having Trouble Finding Workers. On its website, KXAS-TV (10/22, Ross) reported,"Manufacturing businesses say they are having troublefinding potential employees with the right skill sets.The unemployment rate in Texas hovers at about 8.5percent, but the manufacturing industry has plenty ofjob vacancies." The report noted that "according tonational survey by Deloitte LLP and the ManufacturingInstitute, 67 percent of manufacturers are seeing amoderate to severe shortage of qualified workers." 26. Workers Laid Off During The Recession Do NotPossess The Skills That Employers Need The San Antonio Express-News (12/7) reports, "During therecession, the collective US employer somehow advancedtechnologically beyond what the workforce is able to provide."Workers "who lost their jobs do not possess the skills employersnow require to remain competitive." The Express-News notes thatRey Chavez, the president and CEO of the San AntonioManufacturers Association, "said the National Association ofManufacturers is talking increasingly about the need for employersto train people on the job instead of waiting for skilled workers toapply." 27. Governor Wants Mississippians To Look At NewApproaches To Improve Education The AP (12/9) reports, "Gov. Haley Barbour said Thursday he wantsMississippians to look at new approaches to improve education,including more opportunities for job training instead of bachelorsdegrees and the involvement of churches to help prevent strugglingstudents from dropping out of high school." Emily DeRocco,president of the Manufacturing Institute, called on Mississippi "towiden opportunities for nationally recognized training certificates.She said that a survey by her group shows 600,000 factory jobs areunfilled because manufacturers now need higher-skilled workers tocompete worldwide." 28. Manufacturing Careers A Hard Sell To Texas Teenagers The Houston Chronicle reports that, "as important as itis, manufacturing is a hard sell to teens thinking aboutcareers." Patrick Jankowski, vice president of research forthe Greater Houston Partnership, "is predicting thatmanufacturing will be among the fastest-growing sectorsin Houston next year, thanks to the resurgence indomestic drilling and demand from emerging markets foroil field equipment, plastics and chemicals." KathyHousel, director of the school of continuing education atHouston Community College, said that many "studentsshy away from industrial education because of pressuresfrom home." 29. Manufacturers Facing A Shortage OfSkilled MachinistsOn its website, FOX News (12/16) reports on theshortage of machinists in the US. The reportnotes that a study conducted by the NationalAssociation of Manufacturers found that thelargest impediment to future economic growthis a skilled workforce.