a leaner, more skilled u.s. manufacturing workforce national associations of state liaisons for...
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A Leaner, More SkilledU.S. Manufacturing Workforce
National Associations of State Liaisonsfor Workforce Development Partnerships
by Eric Mittelstadt, CEONational Council for Advanced Manufacturing (NACFAM)
August 1, 2006
Intense Collaboration forNetwork-centric Manufacturing
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Purpose Today
Discuss the state of U.S. manufacturing
Describe NACFAM & its Workforce Projects
Define “Intense Collaboration” for “Network-centric Manufacturing” and why it is essential for significantly improved U.S. competitiveness
Discuss why that requires “A Leaner, More Skilled U.S. Manufacturing Work Force” including: STEM Education (Science, Technology, Engrg. & Math) Lifelong Learning
Tee up your discussion on how states can help support manufacturing & what states are doing
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Observations about U.S. Manufacturing
Numbers are positive:
Profitability returning to that of late 90’s boom years U.S. output of manufactured goods highest ever
Jobs holding steady, albeit “churning”
Productivity increases continue
Plus Manufacturing must be important or states would not compete as hard as they do to get it!
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Observations, cont.
Productivity must continue to increase because of: Demographics – 20% smaller workforce in 12 years
Consumer pressures for higher quality, content and customization at lower prices
Increasing global competition
Inevitable fluctuations in the economy
Because we are a smaller nation, to remain a world power, we must be more innovative, creative & productive
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Observations, cont.
Inescapable trends:
Increased productivity means producing more with fewer people
Thus, an inevitable reduction in the number of manufacturing jobs
Trend similar to agriculture in the past, but not as severe
Need innovation in both product and process development
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Observations, cont.
Therefore, metrics for healthy U.S. manufacturing should be:
“National prosperity creation,” in terms of:
Ever increasing value-added manufacturing output
Unimagined new industries with new jobs from R&D, both public & private
Not just number of manufacturing jobs or % of GDP
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Observations, cont.
We want to take care of our workers, so government must:
Devise innovative ways to minimize unemployment
Creatively mitigate inevitable short-term displacements in a growing economy
Make its policies & programs for manufacturing the most competitive with other countries
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About NACFAM
Vision for U.S. Manufacturing – Sustainable & globally competitive, through increased customization & innovation in workforce, technology & supply chains
Vision for NACFAM – Nationally respected research organization, shaping public policies and programs, to make U.S. manufacturing globally competitive
Mission – Bring key stakeholders together in an objective, non-partisan, non-adversarial, collaborative environment, to identify, research, formulate, and communicate policy proposals & programs, to achieve global competitiveness of manufacturing in the U.S.
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About NACFAM, cont.
Value Proposition – Opportunity to impact the informed voice that shapes manufacturing policy and programs critical to stakeholders, by brokering the needed “intense collaboration” so all stakeholders can leverage their respective resources
Strategy Focus on a few “below-the-line” topics which require
“intense collaboration” Manufacturing issues of Workforce, Technology,
Supply Chain, Sustainability Not Manufacturer issues of Taxes, Trade, Tort,
Energy, Health Care, Pensions, Regulations Competitive advantages of:
NACFAM’s CEO & people “speak the language” of OEM’s, SMM’s, educators, government, labor, et al
Thus able to define what is really required
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About NACFAM
Members Advanced Manufacturing Firms Associations (including AMBA, AMT, ASMC, NCATC,
RIA, SME, et al) Universities Members of Congress & their Staffs Executive Agencies (incl. NASA, NIST, Federal Labs)
Workforce Projects Manufacturing Skills Standards Council (MSSC) Work Group to define ETA Advanced Manufacturing
Competency Model Career Cluster Leader for Manufacturing
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NACFAM Focus: Future Shape of Manufacturing Biggest Trend: “Network-centric Manufacturing”
OEMs becoming more and more assemblers or integrators of systems, subsystems and components manufactured & developed by their supply chain; i.e., the “Network”
Requires more capability throughout the “Network”, including over 300,000 smaller manufacturers (SMMs)
These SMMs face same challenges as OEMs, but without the resources of big companies to cope
(Note: Based on Lockheed Martin Aeronautics sponsored workshops &analysis with NACFAM.)
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Context for Today’s Discussions New “Network-centric” paradigm requires:
New forms of “intense” Collaboration & Connectivity, plus innovation among all stakeholders
Alignment of Government policies & programs with real needs of those extended enterprises, and
across agencies, to achieve competitiveness of the public sector to assure competitiveness of the U.S. economy!
Easier Access to the multiplicity of those programs
KEY POINT: REAL STRENGTH OF OUR ECONOMY IS AT SUPPLIER – SMALL MANUFACTURER – LEVEL,SO WE MUST MAKE THE ENTIRE NETWORK BETTER
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Advanced Manufacturing “Intense Collaboration”
Industry(OEM’s & Suppliers)
Federal Government
(Many Executive Agencies & Congressional Committees, Caucuses, Task Forces, etc.)
Enablers (State Governments,
Universities, Community Colleges, K-12 Systems,Associations, Non-Profits)
NACFAM
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How do we involve stakeholders in a total solutions package to support the performance
of the network?
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OEM
SMM
SMM
SMM
OEM
SMM
SMM
SMM
SMM
Network-centric Manufacturing
SMM
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OEM
OEM
DOD
Army
Navy DLA
OEM
SBIR
DARPA
Mantech
p
Indirect Effects on the rest of the supply base?
EPA
Dept of Labor
NSF
OEM
p pp
p
p
p
p
MORE IMPORTANTLY:HOW GAPS IN COLLABORATION AND CONNECTIVITY IMPACT THE ENTIRE NETWORK • NETWORK ENVIRONMENT• PUBLIC SECTOR NETWORK INTERFACE• ENABLERS
The Challenge of a Public Sector Response to Network-centric Manufacturing
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OEM
OEM
DOD (Pentagon?)
OEM
Office of TechTransition
MEP
OEM
NETWORK-CENTRIC MANUFACTURING: ENABLERS AND PILOTS
Miltech
DOD Labs
MT State
Ohio
TechsolvePD Offering
DOL
???
EPANSFStates/
UniversitiesNIST ATP
ALIGNMENT OF“PUBLIC
ENTERPRISE”
Associations
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OEM
OEM
OEM
OEM
Stakeholders in the Network-centric Manufacturing
OEMs
Congress
SMMs
Associations
Mission Agencies
States Universities
NACFAM
NACFAM’s Role – Broker“intense collaboration”where required
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Overriding Challenge
To achieve “prosperity creation” U.S. must strengthen the viability & innovation of our industrial base, within the realities of: Increasing demands on the supply chain Ever stronger global competition Shrinking workforce More demanding environmental requirements
Network-centric Manufacturing has implications on at least three levels: Industry State Workforce Development Government
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Industry Implications in Manufacturing
For OEMs & SMMs, competitiveness comes from: Innovation – workforce, new technologies, products,
processes Faster times to market with the resulting products And with the help of the entire network
This requires robust capabilities at all tiers in: A “leaner & more skilled” workforce Innovation in product & process design &
development Supply chain collaboration & connectivity Increasingly in corporate citizenship, including
sustainability, environmental concerns, etc.
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State Workforce Implications in Manufacturing
Because of demands on companies, future workers at all levels (& in all industries & businesses) must be enabled to work in a more “Network-centric” way with: Collaboration skills for teamwork, inside & outside of
their company Connectivity skills for IT for better data exchange More skills in Science, Technology, Engineering &
Math (STEM) Creativity, analytical & problem solving skills, for
greater innovation in products & processes Continuous updating of all these skills to be:
The best they can be for their current employer, & Easily mobile to other jobs in new industries
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State Workforce Implications, cont.
To respond to these needs States, Educators & Trainers must:
Collaborate intensely with companies to understand industry needs, both current & future
Collaborate intensely with the federal government to innovatively optimize the return on public dollars they spend
Both with focus on output rather than just input
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Government Implications in Manufacturing
In today’s constrained budget environment, more important than funding levels (input) is return on public dollars (output), from a robust nation-wide interagency infrastructure, for all areas, including :
Workforce Investment – for example, Economic Development along with Workforce Development, lifelong learning, STEM talent development, etc.
R&D & Innovation – Creating New Industries & Jobs from new technologies, products & processes
Supply Chains – Beyond lean to “intense” collaboration & connectivity, including impact on the first two areas above
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Government Implications, cont.
Robust nation-wide interagency infrastructure for both SMMs & OEMs, really for the “network”: Based on the realities of “Network-centric
Manufacturing”, helping the network as a whole Moving the entire “network” up the innovation
value chain
A more synergistic, collaborative approach to meeting environmental concerns & goals by: Utilizing innovation & implementation skills of
businesses, thereby Achieving more stringent environmental
objectives at lower cost
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Value Proposition, Industry
OEM’s deliver end-user value through supply chain synchronization & serving as the network hub
Suppliers, mostly SMMs, provide value to their OEM customers & end-users through innovation, know-how in manufacturing, engineering capability, etc.
Both OEM’s & suppliers are “customers” or at least partners of State Workforce Development, of Other Enablers, and even of Federal Government
In today’s “hyper-competitive” global economy, there is a much greater need for industry to “intensely collaborate” as partners with state & federal governments, especially in workforce development
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Value Proposition, Enablers
State Governments – Education & training, economic development, research
Universities – Research, education & training
Community Colleges & K-12 Systems – Education & training
Associations – Problem identification, policy solution pathways, issue management, etc.
Non-Profits – Funding, problem identification, etc.
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Value Proposition, Federal Government
Executive Agency Programs – Improve U.S. economy & global competitiveness of U.S. industry
- For example ETA, NSF, MEP, NIST, etc.
Inter-agency Working Groups – Coordinate & focus
manufacturing policies & programs, expenditure guidance, alignment with needs & resources, etc.
Manufacturing Council – Advice & counsel from industry to help accomplish the above
Congress – Legislative authorizations, mandates, & appropriations
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Value Rec’dBy Providers
Supply Chain Integration Initiative Total Solutions Package Model
SolutionWho
ProvidesWhat
ProvidedLeveragingOpportunity
Value Rec’dBy SMMs
Small and Medium-Sized ManufacturersInternal Investments Made• • •
Competitive Advantages Gained• • •
Enhance Collaboration Skill Sets
Establish Collaboration Framework and Environment
Institutional Incentives
Acquisition Reform
Enhance Connectivity Skill Sets
Improve Non-Techn. Collab. Capability
Establish Techn. Collab. Capability
Co
llab
ora
tio
nC
on
nec
tiv
ity
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Summary for Employment & Training Admin.
Who
Provides
What
Provided
Opportunities
for ETAEmployment
& Training
Administration
(ETA)
- Lead the implementation of “Mfg. in America” recommendations on Employment & Training, including leadership of the Subcommittee on Workforce & Education of the IWG on Mfg. Competitiveness
Identify the needed “intense collaboration” & by whom for:- More competitive “network-centric manufacturing” through enhanced workforce skills at OEM’s & SMM’s incl.:- Collaboration, including for purchasing agents & other supply chain professionals- Connectivity; e.g., use of IT tools for better exchange of both technical & non-technical data & information- STEM at all levels due to increasing use of IT tools at all levels- Lifelong Learning, to be best for current employer & the next ones as well
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Summary for ETA, cont.
Who
Provides
What
Provided
Opportunities
for ETA
Subcommittee
on Workforce & Education
of the IWG on Manufacturing Competitive-
ness
- More effective federal investment in education, training & retraining to educate the next generation of mfg. technologists & leaders- Develop, approve & promulgate competency models for use with HGJT & CBJT grants- Develop new initiatives to carry forward the President’s mfg. initiative
Lead understanding of need for: - Alignment w/ industry needs,- Alignment across agencies,- “Leaning out” of government programs for efficiency,- Improved access to government programs for SMM’s,
(all in the context of the several “opportunities for ETA” on the previous slide)
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NACFAM’s Possible Contribution to NGA
Define similar “Opportunities for NGA”
Develop with NGA a detailed Plan for achieving them
Articulate with your help the value of the needed “intense collaboration” to improve the entire “network-centric manufacturing” model
Broker the needed “intense collaboration” to engage Industries, Federal Agencies, Other Enablers with NGA Bringing all together in productive ways Focus on leveraging their respective resources
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Possible Entities to be Engaged
Industries Large OEM’s in Defense, Aerospace, Automotive to
begin with; others can be added Large Suppliers to above OEM’s Small & Medium Manufacturers supplying all above
Enablers Universities Community Colleges K-12 Systems Associations Non-Profits
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Possible Entities to be Engaged, cont.
Federal agencies, depending on the project Dept. of Labor, Employment & Training Admin. (ETA) Department of Education National Science Foundation (NSF) NIST, Manufacturing Extension Partnership (MEP) NIST, Manufacturing Engineering Laboratory (MEL) Dept. of Commerce, Manufacturing & Systems (MAS) Department of Defense (DoD) Dept. of Energy, Federal Labs Environmental Protection Agency (EPA) National Aeronautics & Space Agency (NASA) Interagency Working Groups (IWGs) Etc.
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Closing Observations
New “Network-centric” paradigm requires:
New forms of “intense” Collaboration & Connectivity, plus innovation among all stakeholders
Alignment of Government policies & programs with: Real needs of those extended enterprises, Across agencies, and with Focus on output rather than only input
Easier Access to the multiplicity of those programs
-- ALL TO MAKE THE ENTIRE NETWORK BETTER
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Closing Observations, cont.
Globally competitive companies are those who: Do the most things best, the most consistently,
and constantly
So too with countries
Thus, we must never stop improving, no matter what the quarterly or annual numbers say,
In both company competitiveness and in governmental policies & programs for manufacturing Especially for a leaner, more skilled workforce
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Essential: Leadership in Today’s “Flat World”
Business: Innovatively use workforce development, lean, 6-
Sigma, automation, R&D, etc., and then, beyond lean: Partner with government & enablers where needed
Workforce Development Partnerships: Prepare workers to be best they can be today, while Continuously learning to improve & be ready for new
jobs not now imagined Government at all levels:
Realize optimum return on public dollars by: Aligning programs across Interagency lines & with
the needs of manufacturers & workers, focusing on output, consistent with other public priorities
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What’s Needed from You Today
Why is it so important? You are the leadership group Discussants are experts to get us going All can give each other ideas for action
Overriding Questions: What are we missing? Are we doing it the right way? What do you believe are the real problems?
Who can help? How? Priorities? Etc.? What are your ideas for how NACFAM can help?