1. Manufacturing Skill Standards Council (MSSC) Training, Assessment and Certification System Remarks by: James McCaslin President and COO, Harley Davidson Motor Company, and Chairman, MSSC Board of Directors Council on Workforce Development September 22, 2006 Country Springs Hotel Waukesha, WI

2. Topics to be Covered Importance of Manufacturing in U.S. and Wisconsin Need for Skilled Workers to Meet Global Challenges Skills Gap Issue MSSC Solution to Skills Gap Elements of National MSSC System Wisconsin/MSSC Program Steps by Harley-Davidson Steps Needed by Others

3. Manufacturing’s Importance to U.S. Economy Growth Innovation Competitiveness Productivity Income Jobs Sources: BLS, NAM, ISM

4. Challenges Faced by U.S.-based Manufacturers Intense global competition Emergence of strong high-skills, low-wage economies, e.g., China and India Increased costs: health care, pensions, energy, legal, environmental Shortage of qualified U.S. workers

5. Response: Increased Productivity and Innovation Accelerated productivity and innovation Next generation of innovative products and processes Workers

6. Skills Gap 80% of respondents in the NAM/DeloitteLLC Skills Gap survey 2005 reported difficulty in finding workers with the right skills Nearly 50% of respondents reported inadequate employability and problem-solving skills One third reported insufficient reading, writing and communications skills

7. Acute Shortage of Production Workers 90% of the respondents in NAM survey report a shortage of skilled production workers Employers worldwide identify production technicians and operators as 3rd and 4th ranking job categories in which there are the most serious shortages of skilled workers (Manpower Inc.,Feb.06) Example: Toyota-San Antonio

8. Solution to Production Workforce Development Challenges MSSC Approach A nationwide system training, assessment and credentials based upon industry-defined, nationally validated standards Purpose: Expanded pool of agile production workers — “the industrial athlete of the future” Scope: Uniquely applies to all manufacturing sectors and all production occupations Goal: Reach 40% of production work force in 10 years Example: Successful “ASE” (Automotive Service Excellence) certification

9. Elements of MSSC System Standards – Industry-led, federally recognized, nationally validated Assessments Credentialing and Documentation – Up-to Production Technician Certification Certification of Assessment Centers Teacher Certification Courses – Including multi-media, on-line Glencoe McGraw-Hill/MSSC Textbook and Supplements

10. WISPASS/MSSC State Network Wisconsin Performance and Assessment for Skill Standards Funded by DOL Grant – MATC lead agency Build a constituency and state network to implement MSSC Training, Assessment and Credentialing System Recruit firms, trade associations, unions, and Workforce Investment Agencies, and test centers Recruit and qualify 600 workers and students for MSSC credentials Create the Feedback Process on the Training Response, Competency, and Productivity Promote manufacturing as a career

11. WI Training & Test Centers Milwaukee Area Technical College Moraine Park (Fond du Lac) Gateway Technical College (Racine/Kenosha) Waukesha County Technical College Chippewa Valley Technical College (Eau Claire) Northeast Technical College (Green Bay) Mid-State Technical College (Stevens Point) North Central Technical College (Wausau) University Wisconsin-Stout (Menomonie)

12. Value Proposition: Industry Meets company needs for workers Increases productivity and innovation Decreases recruitment costs Provides a diagnostic tool to benchmark workers against high- performance standards Increases ROI for training Serves to attract, motivate, and retain qualified employees

13. Value Proposition: Workers Offers the only national, industry recognized foundational skill certifications for production workers Improves career advancement opportunities Improves job security Provides nationally portable credentials

14. Value Proposition: State Government Attracts advanced manufacturing company investment Broadens the variety of manufacturing industries that a state can attract Enables dislocated workers from one industry sector to acquire the credentials to shift readily to other industry sectors Thus helps reduce the effect of a downturn in one sector by preparing workers to perform well in other sectors

15. Value Proposition: Education Increases industry client base and student enrollment Increases student enrollment through on- demand e-learning solutions Provides fully developed courses for immediate implementation Offers high-quality courses with proven results Provides teacher certification Enables schools to offer certifications as well as degrees

16. Actions by Harley-Davidson For job applicants state “MSSC Certification Preferred” Assess group of incumbent Harley workers to create benchmark Investigate “fast track” MSSC Training for both contingent workers and existing employees to enhance their skills and careers Use tuition reimbursement for MSSC courses Promote MSSC e.g., September 25, NAM Press Conference at National Press Club

17. Suggested Steps by Others To use MSSC System for recruitment, benchmarking, and training Encourage educators to align their curriculum with MSSC requirements and MSSC’s full curriculum Use on-line courses Tech Colleges and Workforce Development Boards must work together with Industry to secure federal and state funding grants

18. For more information on MSSC see folders and www.msscusa.org For more information on WISPASS/MSSC see www.matc.edu/wispasswww.msscusa.org