Our Workforce- Where to from here? The Role of Academia PE “Pat” Patterson Texas Tech University March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference 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.” March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference So where are we today? March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference 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 March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference 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. March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Academe: Strengths and Weaknesses Raw materials Training expertise Academic courses Workshops and short courses Research Capability 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 March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Industry: Strengths and Weaknesses Source of $$$ (??) in exchange for value Can provide “Real world” opportunities Can provide state-of-the-art equipment (??) Training expertise Lack of raw material March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

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

Mile High Industrial and Automation Conference Workforce Challenges March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference 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 employers encounter difficulties finding employees with the appropriate skills, experience, or qualifications to fill vacancies (initial education issue) March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference 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.). March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference So what do we need? March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference 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 March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Potential Support Systems Integration of Academic Programs 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 Other Education Programs (workshops, etc.) Grant Opportunities Government Local Workforce Board State Workforce Board Department of Labor Private Sector Major Corporations

Mile High Industrial and Automation Conference 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!!! March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

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. March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference 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. March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

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

Mile High Industrial and Automation Conference Two Examples March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Oregon Manufacturing Approach March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

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

Steps

Mile High Industrial and Automation Conference 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. March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Mile High Industrial and Automation Conference 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. March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Motivate, Cooperate, Coordinate In a nutshell… Motivate, Cooperate, Coordinate March 31st and April 1st, 2009 Mile High Industrial and Automation Conference

Thank you !!!