1. Trends in the Manufacturing Sector in Massachusetts Sharing Skills ~ Building Connection Conference, March 12, 2008 Rebekah Lashman Jonathan Latner Navjeet Singh Commonwealth Corporation 617-727-8158

2. March 12, 2008 Page 2 Agenda 1.Who is in the Audience? 2.Massachusetts Employment Trends 3.Massachusetts Manufacturing Employment Trends 4.How to Engage Local Employers? 5.Sources of Information 6.Evaluation forms

3. March 12, 2008 Page 3 Purpose of Workshop Introduction 1.How many are already working with a manufacturing organization? 2.What kind of work are you doing? (training, for which occupations or jobs) 3.Purpose 4.What should a workforce professional know about the manufacturing sector?

4. March 12, 2008 Page 4 Massachusetts Employment Trends Source: Bureau of Labor Statistics CES Data, Seasonally Adjusted Data January, 2001 – December, 2007 Employment is recovering from recession, but has not equaled its Peak: Feb, 2001

5. March 12, 2008 Page 5 Decline (2001-4) Recovery (2004-6)Proj. Growth (2006-11) Educ. & Health Hotels & Food Other Services ConstructionFinanceGovernment Trade, Trans Information Prof. & Bus. Svcs. Manfg Source: CommCorp Analysis of New England Economic Partnership Data, November, 2007. All Numbers in Thousands of Employees Structural Shifts in the Economy There is a shift in employment – towards Healthcare & Education and Professional and Business Services

6. March 12, 2008 Page 6 Massachusetts Growth projected, 2006-2011 (‘000) Massachusetts Projected Employment Growth and Current Job Openings Source: CommCorp Analysis of New England Economic Partnership Data Source: Department of Workforce Development = Net New Jobs in Future Includes Replacement Jobs and New Jobs = Current Hiring Needs Massachusetts Job Vacancies, Q4, 2006 (‘000) Educ. & Health Hotels & Food Other Services ConstructionFinanceGovernment Trade, Trans Information Prof. & Bus. Svcs. Manfg

7. March 12, 2008 Page 7 Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages Annualized 2006 data Where do people work in Massachusetts? Manufacturing is one of the Largest Sectors in Massachusetts 2006 Employment

8. March 12, 2008 Page 8 How has Massachusetts Manufacturing Employment Changed since 1990? Source: Bureau of Labor Statistics Current Employment Statistics Seasonally Adjusted 1990 – 2007

9. March 12, 2008 Page 9 Share of Total Employment in Manufacturing in Massachusetts and United States, 1990 - 2006 Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages Annualized 1990, 1995, 2000, & 2006 data

10. March 12, 2008 Page 10 Manufacturing Revenues have been Increasing, 1997 - 2006 Source: Bureau of Economic Analysis, Regional Economic Accounts, GDP by State 1997 – 2006 $ billion Manufacturing revenues Mass. State Product (All Sectors)

11. March 12, 2008 Page 11 What is the Employment in Different Sub- sectors in Manufacturing (2006)? Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages 2006 data

12. March 12, 2008 Page 12 What are Employment Trends 2000-2004 in Manufacturing Sub-sectors? Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages 2000 & 2004 data Change in employment 2000-2004

13. March 12, 2008 Page 13 What are Employment Trends since 2004 in Manufacturing Sub-sectors? Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages 2004 & 2006 data Change in employment 2004-2006

14. March 12, 2008 Page 14 What are Average Annual Total Wages for Different Sectors in Massachusetts, 2006 Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages 2006 data Red line indicates the Massachusetts state average Total Wages in 2006

15. March 12, 2008 Page 15 How is Manufacturing Employment Distributed in different Workforce Areas in Massachusetts? Source: Executive Office of Labor and Workforce Development, Division of Career Services Quarterly Census of Employment & Wages Annualized 2006 data

16. March 12, 2008 Page 16 What is the local share of Manufacturing Employment Different Workforce Areas?

17. March 12, 2008 Page 17 What are the Major Manufacturing Sub-sectors in Different Workforce Areas of the State?

18. March 12, 2008 Page 18 What are “Sectors” and “Occupations?” Where people work? –Sectors, Sub-sectors, Industries –Examples: Manufacturing, Computer & Electronic Products, Audio & Visual Equipment What people do? –Occupational Groups, Occupations, –Examples: Production Workers, Machinists, Engineers, Home Health Aides

19. March 12, 2008 Page 19 Where do Production Occupations work, 2005? Source: Executive Office of Labor and Workforce Development, Division of Career Services Occupational Employment by Industry, May, 2005 Sector ProductionAdministrationArchitecture &EngineeringManagementTransportationBusiness &FinancialComputer & MathSalesInstallation Manufacturing74%12%9%8%6%4%5%4%3% Administrative 5% Retail 4% Other Services 4% Wholesale 4% Prof. Svcs. 2% Healthcare 1% Other 6% Share (%) of Employees from Major Occupations Working in Manufacturing

20. March 12, 2008 Page 20 What are Different Jobs in the Manufacturing Sector in Massachusetts and US, 2005? MA Source: Executive Office of Labor and Workforce Development Industry Staffing Patterns, May, 2005 US Source: Bureau of Labor Statistics National Industry Specific Occupational Employment & Wage Estimates, May, 2005

21. March 12, 2008 Page 21 What is the Share of Production Workers Among Manufacturing Employees in Different Areas

22. March 12, 2008 Page 22 What are Major Production Occupations in Massachusetts, 2006? Source: Bureau of Labor Statistics Occupational Employment Statistics, 2006 2006 Employment

23. March 12, 2008 Page 23 What do Production Workers earn? Source: Bureau of Labor Statistics Occupational Employment Statistics, 2006 2006 Average Salary Red line indicates the Massachusetts state average salary in 2006

24. March 12, 2008 Page 24 How much do Production Workers earn by Workforce Investment Area, 2005 Red line indicates the Median Total Wages of Production Workers in Massachusetts Source: Executive Office of Labor and Workforce Development Division of Career Services Occupational Employment and Wage Industry Staffing Patterns May, 2005

25. March 12, 2008 Page 25 What is the Share of Production Workers Among Manufacturing Employees in Different Areas

26. March 12, 2008 Page 26 Change in Educational Attainment of Workers in the Manufacturing Industry in Massachusetts, 2000 - 2006 2000 Census PUMS Data, 5% sample 2006 ACS PUMS Data Population aged 25 or older

27. March 12, 2008 Page 27 Change in Educational Attainment of Workers in Production Occupations in Massachusetts, 2000 - 2006 2000 Census PUMS Data, 5% sample 2006 ACS PUMS Data Population aged 25 or older

28. March 12, 2008 Page 28 Age Distribution of Workers in the Manufacturing Industry in Massachusetts, 2000 - 2006 2000 Census PUMS Data, 5% sample 2006 ACS PUMS Data Population aged 25 or older

29. March 12, 2008 Page 29 Massachusetts Vacancies in the Manufacturing Sector, 2006 (4 th Quarter) Q4, 2006 Job Vacancy SurveyNumber of Vacancies Vacancy Rate Percent Requiring an Associate's Degree or Higher Percent Requiring Related Experience Total, All Sectors 92,6393.2%38%54% Retail Trade18,7955.7%2%13% Healthcare & Social Assistance71,6214.0%54%68% Professional & Technical Services10,1325.0%87%80% Accommodation & Food Services7,5323.3%25%71% Manufacturing5,4641.9%57%82% Source: Department Workforce Development, Division of Career Services, Job Vacancy Survey (JVS), Q4, 2006

30. March 12, 2008 Page 30 Vacancies in the Massachusetts Manufacturing Sector by Occupational Group, 2006 (4 th Quarter) Source: Executive Office of Labor and Workforce Development, Division of Career Services, Job Vacancy Survey, Q4, 2006 Occupational Categories# of Vacancies in the Manufacturing Industry % of Vacancies in the Manufacturing Industry Manufacturing Industry5,464100% Production Occupations1,39026% Architecture and Engineering91017% Management61711% Computer and Mathematical5129% Office and Administrative Support4799% Business and Financial4518% Transportation and Material Moving2865% Life, Physical, and Social Science2845% Other53510%

31. March 12, 2008 Page 31 What are the Largest Occupations in the Manufacturing Sector? Which occupations have the most employees? What have been recent employment trends? What do they get paid? What are their education or training requirements? How many vacancies did they have? Which of these are ‘critical’ vacancies? What are projections for new jobs and replacement jobs?

32. March 12, 2008 Page 32 Engaging your Local Employers 1.Using the chartbook with you local employers 2.General questions to ask local employers

33. March 12, 2008 Page 33 Selected Sources of Information Critical Vacancies http://www.commcorp.org/researchandevaluation/vacancy-critical.html Industry-Staffing Patterns http://lmi2.detma.org/Lmi/FPlmiforms1.asp Occupational Employment by Industry Job Vacancy Survey http://lmi2.detma.org/Lmi/LMIjobvacancy.asp Educational Attainment http://www.bls.gov/emp/empeted1.htm Industry Employment and Wages http://www.bls.gov/cew/ Occupational Employment and Wages http://www.bls.gov/oes/