NKIP INTERVIEWS SEPTEMBER 2012

1. September 2012 NKIP INTERVIEWS SEPTEMBER 2012

2. BACKGROUND Critical input for Strategic Plan development designed to meet employment needs of Northern Kentucky manufacturers. The objectives of this research effort is twofold: Workforce Needs • Identify and project the needs of manufacturers in Northern Kentucky Pipeline Development • Understand perceptions and attitudes toward employment in the manufacturing sector

3. METHODOLOGY • An in-depth survey was developed in collaboration with project leaders • Two survey components – • Questionnaire: to assess attitudes and existing efforts toward the workforce challenge • Pre-survey packet: To identify specific workforce personnel challenges and needs • Interviewers consisted of key delegates from Tri-Ed, NKY Chamber, and AME Consortium • Timing: June 12 – September 14, 2012

4. WHO WAS SURVEYED? 33% 39 employers participated, representing one-third of the population 50% Half of the top 30 manufacturing employers in NKY 55% Represents more than half of manufacturing employees Diverse and representative sample – by company size and industry

5. NUMBER OF FULL-TIME EMPLOYEES What is the total number of full-time employees in your company in the Northern Kentucky area?

6. Workforce Needs

7. OVERVIEW & SUMMARY

8. A MAJORITY EXPECT AT LEAST SOME INCREASE IN HIRING OF PRODUCTION AND TECHNICAL POSITIONS Which of the following best represents your company’s hiring expectation for production and technical positions in 2012? 0% 0%

9. IN 3 YEARS, THE WORKFORCE IS EXPECTED TO HAVE A HIGHER SHARE OF HIGHLY SKILLED WORKERS.

10. HALF EXPECT NO CHANGE IN RECRUITING AND TRAINING BUDGETS, THOUGH MANY EXPECT INCREASES Compared to calendar year 2011, will your 2012 workforce budget increase, decrease, or remain the same?

11. VACANCIES Unfilled jobs due to lack of skilled candidates (per employer) 5.6 Unfilled jobs today due to a lack of skilled candidates 680+

12. CATEGORIES OF UNFILLED JOBS: DUE TO A LACK OF SKILLED CANDIDATES How many jobs are currently unfilled due to a lack of skilled applicants? What categories are these unfilled jobs typically in?

13. TOP FIVE DIFFICULTIES DUE TO WORKFORCE SHORTAGES(national comparisons) Has your company experienced difficulty in the following operational areas due to workforce shortages or employee skill deficiencies? National

14. OTHER DIFFICULTIES DUE TO SHORTAGES(national comparisons) Has your company experienced difficulty in the following operational areas due to workforce shortages or employee skill deficiencies?

15. APPLICANTS REQUIRING ADDITIONAL AND SIGNIFICANT AMOUNTS OF TRAINING IS A CONSTANT How frequently does your organization fill jobs with candidates that require a significant amount of additional training?

16. SKILLED PRODUCTION, PRODUCTION SUPPORT, AND LEADERSHIP ARE EXPECTED TO SEE THE GREATEST IMPACT FROM RETIREMENTS How much impact will an aging workforce and anticipated retirements have on each of the following areas?

17. TOP METHODS TO FILL OR REDUCE SKILL GAPS Has your company used any of the following methods to fill or reduce existing skill gaps in the past year?

18. HIGH CONFIDENCE IN CURRENT WORKFORCE, YET LOW CONFIDENCE IN REPLACEMENTS 88% agree Our technical workforce currently has the knowledge, skills and abilities for us to be successful. 80% disagree When we need to fill a technical position, we can quickly and easily find the individual with the technical knowledge, skills and abilities that we need

19. BASIC EMPLOYABILITY SKILLS ARE A CRITICAL DEFICIENCY How critical are the following skill deficiencies among job candidates?

20. ESTIMATED WORKFORCE NEED IN THREE YEARS  In total, over the next three years… more than 2,500 jobs

21. CRITICAL SKILLED POSITIONS THAT ARE CURRENTLY EXPERIENCING SHORTAGES • CAD - Drafter • CNC Press Brake Set-up and Operator • Metal Fabricator/Mechanic • Hydraulic / Pneumatic Technicians • Engineering Technician • Engineer - Process/Manufacturing • Engineer - Design • Applications Engineer • Manufacturing Technicians • Electronic Technicians and Repairers • Industrial Electrician • Machine Maintenance Specialist • Machine Tool Operators (CNC & Conventional) • Machinist (CNC & Conventional) • Welders (MIG - Steel and Aluminum; TIG - Steel and Aluminum) • Finisher

22. CRITICAL SKILLED POSITIONS NEEDED – 10 years In the next 10 years… 6,250 jobs in these highly technical careers will need to be filled.

23. 10 YEAR PROJECTED GROWTH

24. CORE COMPETENCIES – CRITICAL SKILLED POSITIONS

25. Pipeline

26. OVERVIEW & SUMMARY Method: Focus groups, 8-10 participants each Timing: June 4-6, 2012 Segments: • High School Students (2) • Parents (2) • Educators (1) • Displaced Workers (1)

27. OBJECTIVES • Understand perceptions and attitudes toward manufacturing • Determine why manufacturing is not a commonly pursued career • Identify messages that can create positive impressions about manufacturing careers

28. FINDINGS • Manufacturing industry is misunderstood by many • Outsourcing has damaged perceived opportunity in the industry; take caution when reversing • Using local schools to build a reciprocal relationship is key • There is interest for some to have the ability to work after high school • Displaced workers looking for opportunity, but training will be a barrier

29. Considerations

30. CONSIDERATIONS • Create the brand – • Messaging must be concise, convincing, and consistent • Use messaging that is emotional, that provides hope, and that communicates purpose • Provide information about the industry • Segment groups and prioritize efforts according to need • Give manufacturers tools too, communicate from the inside out