Our Workforce- Where to from here? The Role of Academia

1. Our Workforce- Where to from here? The Role of Academia PE “Pat” Patterson Texas Tech University Mile High Industrial and Automation Conference

2. From the NAE… in 1985 “The manufacturing world of the future is evolving piecemeal—on the factory floor, in robotics research laboratories, in computer and information systems development groups, and among manufacturing systems task groups in industry. At stake is the future industrial competitiveness of this nation. Our competitiveness will depend on increasing the productivity of manufacturing systems in all industries and on our ability to transform multifaceted manufacturing functions into cohesive, flexible systems using the new technologies spawned by the electronics and materials revolution. Competitiveness will also depend on achieving product quality and lowering production costs. Fortunately, the new technologies put these goals within grasp. The changes taking place in industry as manufacturing adopts and adapts to new processes aimed at increased productivity are paralleled by new views of the educational system and of the training received by engineers and other Specialists who will plan, implement, and operate the new automated Manufacturing systems. The ferment occurring in the world of manufacturing is matched by that found in engineering school as new curricula and new approaches to engineering education are pioneered.” Mile High Industrial and Automation Conference

3. So where are we today? Mile High Industrial and Automation Conference

4. The Importance • Accounts for 14 percent of U.S. Gross Domestic Product and 11 percent of total U.S. employment - more than 14 million workers!! • $1 in final demand for mfg goods drives an additional $0.67 in other mfg products and $0.76 in non-mfg products and services • $1M in final sales of mfg products leads to 8 jobs in mfg sector and 6 jobs in non-mfg • Funds 60 percent of the $193 billion that the U.S. private sector invests annually in research and development • Contributes two-thirds of U.S. exports • Accounts for 33% of corporate taxes collected Mile High Industrial and Automation Conference

5. The Playing Field • Demographics • Shifting, with the percentage of skilled laborers decreasing. • Baby boomers are retiring, taking their experience and skills from the workforce. • Business Cycles • Manufacturing is a cyclical industry, typically experiencing recession earlier and recovering later than other sectors. • Rising costs • Increasing costs of regulation, litigation, health care, energy, and raw materials. • Corporate tax rates are higher in the U.S. than elsewhere. (State corporate taxes are increasing even faster than other forms of taxation!!!) • Globalization • As global competition increases, our profit margins decrease. • Cost of producing goods in the U.S. is increasing, but global competitors are keeping their prices low. • Technology • Businesses must purchase expensive equipment to keep from falling behind the competition in technology development and use. Mile High Industrial and Automation Conference

6. Academe: Strengths and Weaknesses Strengths Weaknesses Not enough trained faculty Time (academe does not move quickly!!) Lack of state-of-the-art equipment Little access to the “real world” Inadequate motivation for the raw material • Raw materials • Training expertise • Academic courses • Workshops and short courses • Research Capability Mile High Industrial and Automation Conference

7. Industry: Strengths and Weaknesses Strengths Weaknesses Training expertise Lack of raw material • Source of $$$ (??) in exchange for value • Can provide “Real world” opportunities • Can provide state-of-the-art equipment (??) Mile High Industrial and Automation Conference

8. Government: Strengths and Weaknesses Strengths Weaknesses Source of $$$ (??) Can provide program support and development Can provide partnership support and development March 31st and April 1st, 2009 Regulation Potential to be overly Prescriptive Political Mile High Industrial and Automation Conference

9. Workforce Challenges Mile High Industrial and Automation Conference

10. Skill Challenges • Skill gaps exist when an existing employee lacks the skills, experience, or qualifications to be fully proficient at their job (training issue) • Skill shortages exist when employersencounter difficulties finding employees with the appropriate skills, experience, or qualifications to fill vacancies (initial education issue) Mile High Industrial and Automation Conference

11. Other Challenges • Finding, hiring, and keeping employees with adequate foundational skills and competencies • Industry does not have accepted standards for industry-wide skills and competencies. • Businesses face the dilemma that once trained, the worker will leave. • Small and medium-sized manufacturers may not have human resource departments nor enough experience in organizing training programs. • Matching training providers to business needs • Difficult to find training providers that align with employer needs. For example: coordinating work and training schedules, transporting workers, and finding programs that meet specific technology or process needs. • Industry needs vary so training emphasis will vary. • Low numbers are a barrier as numbers may be needed to get specific training. • Need access to latest technology and equipment (on-site training v. video, etc.). Mile High Industrial and Automation Conference

12. So what do we need? Mile High Industrial and Automation Conference

13. We Need Solutions for… • Improving a negative public image • Manufacturing has a negative public image, basically characterized by “moving offshore,” “declining,” “dirty,” “low pay,” etc. • Capacity-Building • Ensure that an infrastructure of training and education programs exists to provide an adequate supply of workers for advanced manufacturing. • Develop programs to help the K-12 system better teach the skills needed and to educate students about manufacturing career opportunities. • Pipeline Development • Maintain practices and processes that ensure an ongoing supply of new and existing workers are recruited, and prepared, to meet the needs of industry • Training for Innovation: Our competitive edge?? • Ensure that training and education programs are aligned with the needs of employers, and that the resulting trainees can provide innovative and creative solutions in the workplace Mile High Industrial and Automation Conference

14. Needs • Support Systems • Integration of Academic Programs • Grant Opportunities • Potential Support Systems • Outreach Projects • Business &Industry • Legislation • Integration of Academic Programs • Academic Outreach • Programs • Pure academic • Programs • Other Education • Programs (workshops, • etc.) • Grant Opportunities • Government • Local Workforce Board • State Workforce Board • Department of Labor • Private Sector • Major Corporations

15. National Level • Promote intellectual property and start-ups • Support start-ups • critical for promoting employment, entrepreneurship, and innovation in the manufacturing domain; • Develop a common framework for intellectual property rights. • Develop centers and networks of excellence for manufacturing as structure for region-level quality and quantity. • Ladder approach (academia, industry, and government) • Workshops, short courses, lending/trading • A visible advertising campaign highlighting the positive impacts of manufacturing • Shift media focus off layoffs, corporate misconduct, etc., • Stress community efforts, • Affordable new (and interesting!!!) technologies, • New businesses/industries/jobs • Industry itself needs to be sold on marketing its image!!! Mile High Industrial and Automation Conference

16. State and Regional Level • Increase, simplify, and coordinate funding schemes within and between state and regional authorities • Obstacles (legislative??) can limit the realization of new start-up companies in manufacturing- identify and investigate these limitations. • Improve coordination between universities and industry. • University-driven projects (those conducted within the university with some input from industry) • Industry-university collaboration (projects conducted at the university, having strong interaction with industry) • Industry driven projects (internship/coop type training) • Potentially resulting in raw materials, research, real world experience, motivation!! • Integrate the manufacturing qualifications/standards of individual states into regional/national curricula. • Reorganize educational programs around new fields having high potential to impact our manufacturing competitiveness. Mile High Industrial and Automation Conference

17. Stakeholder Level • Establish joint post graduate industrial training, industrial real-life driven courses, as well as manufacturing departments supported by industry. • Provide other training options: Workshops, short courses, lending workers between companies to acquire skills/experience on new equipment/techniques, etc. • Joint ventures to identify strategic directions for innovation and to support business risk. • Successful manufacturing stories should be integrated early in education curricula. • The manufacturing industry needs to be marketed to students; e.g. booklet on career paths, forums in schools on careers in industry, etc. • As work is being done earlier in schools, perhaps we need younger people in our promotions?? • Many people who would be a success don’t even start. • Instructors need to be constantly updated on equipment and skills. • Developing cross-skills, as well as specialized skills, is important (a training focus??). • Recognize the need for on-the-job training. Mile High Industrial and Automation Conference

18. A Ladder Structure Approach Innovative Secondary Education Associate Degree Community College State (testing) Bachelor’s Degree University Business & Industry Masters Degree Business & Industry Infrastructure needs to include local economic development corporation !!! Source: South Plains Region

19. Two Examples Mile High Industrial and Automation Conference

20. Oregon Manufacturing Approach Mile High Industrial and Automation Conference

21. Industrial Manufacturing Track Industrial Engineering Manufacturing Degree TMAC Partnership at all levels Texas Tech University South Plains College Advanced Certifications/ Associates Degree Workforce Manufacturing or Other Industry (i.e. Wind, Energy, Advanced Technologies, etc.) Specialized Advanced Certifications/ SPC Dual Credit VTS/ SPC Secondary Education LISD/Frenship CTE (Region 17) Basic Certification Coop Applications Driven by a National Industry Certification Source: South Plains Region

22. Steps

23. Some Necessary Steps • Adapt existing educational organizations, making them more flexible and better able to cope with the constantly changing conditions of the labor market. Cooperation, Coordination!!! • Ensure a supply of teachers in general educational and vocational schools, plus professors at universities, who are sufficiently qualified and have the ability to teach the required subjects • A major concern is the aging population of teachers; more than 60% are over 40 years old !! • Develop and adapt curricula to reflect the needs of manufacturing industry, now and in the future. Innovation of approach!!! • Support both formal and informal education, together with life-long learning, as a means of keeping up with the pace of change. Mile High Industrial and Automation Conference

24. Some Necessary Steps • Enhance the prestige of manufacturing as a profession and as an intellectual challenge. Image isn’t everything, but… !!! • Share information on what can be and is being accomplished (publicity and focused conferences). • Provide economic incentives from federal, state, and local governments. • Increase the interaction between industry and universities in both manufacturing education and research. • Learn by doing (projects, real projects, even real international projects) • Joint development of co-op programs and targeted research programs in manufacturing; • Seek out innovations/innovators in manufacturing education • Provide industrial financial support for manufacturing initiatives at universities including grants, equipment (and related maintenance support), and scholarships; • Use industry personnel as adjunct faculty; • Use faculty as industrial consultants, and • Provide faculty sabbaticals having manufacturing assignments. Mile High Industrial and Automation Conference

25. In a nutshell… Motivate, Cooperate, Coordinate Mile High Industrial and Automation Conference

26. Thank you !!!