The U.S. manufacturing sector continues to grow, even as a skills shortage persists. With the intelligent use of technologies and automation, we will continue to need many more skilled people in the manufacturing labor force. The U.S. military veterans my just be that source of capable people to fill the skills gaps.
Despite very strong national employment numbers, there were some losers among the winners: Five states lost 30,800 manufacturing jobs in Dec. 2019, but also reported an increase in non-manufacturing jobs. In a report released by the Bureau of Labor Statistics (Jan. 24, 2020) Indiana, New York, Pennsylvania, Michigan, and Wisconsin lost 8,200, 7,500, 5,700, 5,300, and 4,200 manufacturing jobs, respectively.
The winners were three states outside the Rust Belt that brought in 36,000 manufacturing jobs. Texas, California, and Arizona added 18,200, 11,400, and 6,600 manufacturing jobs, respectively.
Looking at those numbers we can say that the job winners outnumbered the losers. And, the winning manufacturing firms were in the west/southwest where weather is warmer year-round and transportation to markets is readily accessible.
WE REALLY NEED A STRONGER MANUFACTURING SECTOR
Manufacturing jobs are a staple of the national and global economies. Manufacturing jobs create original wealth for individuals, businesses, and the Nation’s economy because they transform raw materials into revenue generating output. Two other sources of original wealth (per former Federal Reserve Chairman Alan Greenspan) are Agriculture and Mining.
TOP 10 U.S. MANUFACTURING SECTORS, IN MILLIONS OF DOLLARS (2017)
- Chemical products
- Computer and electronic products
- Food, beverage and tobacco products
- Motor vehicles and parts
- Fabricated metal products
- Machinery
- Aerospace and other transportation equipment
- Petroleum and coal products
- Miscellaneous manufacturing
- Plastics and rubber products
Why is manufacturing important? Manufactured goods totaling $1.7 trillion comprised 68% of our nation’s exports (2018). The U.S. manufacturing sector is the largest in the world, with 250,000 firms and 12.8 million employees producing over 18% of the world’s goods and $2.3 trillion in gross domestic product (2018 GDP), an increasing trend since 2009. (Small is good, though: Nearly 97% of the manufacturing exporters were small to medium sized companies producing $798 billion in exports.)
What’s particularly noteworthy is that for every dollar spent in manufacturing, nearly $1.90 in growth is generated in other business sectors. Manufacturing also provides nearly half of all corporate taxes collected by state and local governments, while funding more than 70 percent of the R&D conducted in the private sector.
BUILDING A MILITARY PIPELINE TO MANUFACTURING
Over 70% of manufacturers report the challenge of finding enough skilled workers as their top business concern. Today, this manufacturing workforce shortage is holding manufacturing in the U.S. back from reaching its full potential. There are about 500,000 open jobs in manufacturing with as many as 2.6 million that could go unfilled by 2028, unless we take the right steps today to develop the workforce of tomorrow. That’s where America’s military veterans come in.
Many in the RAM community are already very familiar with the following information: Every year, more than 200,000 U.S. service members return to civilian life. These are men and women who applied their talents in a mission larger than themselves, who are accustomed to working in teams, have an exceptional work ethic, and they also have been through a rigorous and accelerated training program leading to many different hands-on experiences. Supporting these veterans in their efforts to secure civilian employment is as good for our country as it is for our economy. The National Association of Manufacturers (NAM, nam.org) and its social-impact arm, the Manufacturing Institute, are taking steps major steps to demonstrate such support. Consider their “Heroes MAKE America” program.
“Heroes MAKE America” is the Manufacturing Institute’s initiative to build a pipeline between the military and manufacturing. According to the Manufacturing Institute, this program “arms transitioning service members, veterans, and military spouses with the skills and certifications to find (and excel) in manufacturing careers.” The program also works to educate manufacturers on how to recruit, hire, and retain talent from the military community.”
Open to service members within their last six months of military service (and, as noted above, to veterans and military spouses), “Heroes MAKE America” enrolls transitioning service members while they are still on active duty. This allows transitioning personnel to continue receiving military pay and benefits until they have separated from the service.
Accomplishments and features of the the “Heroes MAKE America” program include, among others:
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- Approved as a Department of Defense “SkillBridge” Program.
- Includes up to 15 weeks of accelerated training.
- Certifications, to date, include the following: Certified Production Technician, OSHA 10, Forklift Operation (Ft. Riley, KS; Ft. Hood, TX; Ft. Bragg, NC; Ft. Benning, GA); and Siemens Level 1 Mechatronics Systems Assistant Certification (Ft. Campbell, KY).
- Essential manufacturing credentials are issued for: safety, quality, maintenance, manufacturing processes, and production.
- Weekly modern manufacturing tours are incorporated in the training.
- Preparation includes career readiness instruction (resume writing, interview skills, LinkedIn training.
- Placement support is also included: connections and guidance during career search and interview process.
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The “Heroes MAKE America” website offers a number of resources for employers, educators, and communities, including:
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- List of Toolkits
- Employer Toolkit
- Educator – Introduction to Skills Certification
- How-To Guide for Educators
- Community Toolkit
- Close the Skills Gap [Arizona]
- Growing Your Skilled Workforce
- Webinar Series
- Building Your Workforce Interactive Guide
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To learn more about the “Heroes MAKE America” program, visit the Manufacturing Institute at the following link:
www.themanufacturinginstitute.org/Initiatives/Military-and-Veterans/Heroes-MAKE-America.aspx
ABOUT THE AUTHOR
Bob Williamson is a long-time contributor to the people-side of the world-class-maintenance and manufacturing body of knowledge across dozens of industry types. His background in maintenance, machine and tool design, and teaching has positioned his work with over 500 companies and plants, facilities, and equipment-oriented organizations. Contact him directly at 512-800-6031 or bwilliamson@theramreview.com.
Tags: workforce development, skills crisis, training, qualification, manufacturing, Creators Wanted, NAM, National Association of Manufacturers, Manufacturing institute
