New Directions in Manufacturing Report of a Workshop (2004) / Chapter Skim
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Part V Presented Papers: The Human Element in Manufacturing
Part V Presented Papers: The Human Element in Manufacturing
13 Keeping America Competitive
Pages 73-81
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Part V Presented Papers: The Human Element in Manufacturing 73
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at the onset of the recent recession and published in its report The Skills Gap 2001: Manufacturers Confront Persistent Skills Shortages in an Uncertain Economy.3 The study revealed that more than 80 percent of the surveyed manufacturers reported a "moderate to serious" shortage of qualified job applicants -- even though manufacturing was suffering serious layoffs. In sum, what manufacturing is facing is not a lack of employees, but a shortfall of highly qualified employees with specific educational backgrounds and skills.
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Among a geographically, ethnically, and socio-economically diverse set of respondents -- ranging from students in middle-school through college, parents, and teachers to policy analysts, public officials, union leaders and manufacturing employees and executives-the sector's image was found to be heavily loaded with negative connotations and universally tied to an old stereotype of the "assembly line," as well as perceived to be in a state of decline. When asked to describe the images associated with a career in manufacturing, student respondents offered phrases of the kind listed in Table 13-1, such as "serving a life sentence," being "on a chain gang" or "slave to the line," or even being a "robot." Even more telling, most adult respondents said that people "just have no idea" of manufacturing's contribution to the American economy.
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Much More Than Assembly Lines Employing professionals and skilled and semiskilled workers in nearly every imaginable specialty -- from graphic designers, sales executives, and physicians to scientists, lawyers and marketing managers -- manufacturing companies offer one of the broadest ranges of possible career paths. These employees are also well compensated, with the average manufacturing worker earning $46,000 per year in wages and an average total compensation package of $54,000 in 2000.
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This means that every $1 million in final sales from manufactured products supports eight jobs in the manufacturing sector and an additional six jobs in other sectors, such as services, construction, and agriculture. In total, manufacturing jobs support 9 million jobs in other sectors.8 It is also true that the manufacturing sector as a whole is not in decline.
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For every $1.00 of a manufacturing product sold to a final user, an additional $1.26 of intermediate economic output is generated. Manufacturing's multiplier effect is greater than the general multiplier effect of 98 cents for all industries and far greater than that of the service sector, which generates only 74 cents of intermediate activity per $1.00 of final sales-40 percent less than the additional intermediate output generated by $1.00 of manufacturing final sales.10 In addition, it is important to remember that the United States is the world's largest exporter of goods and services.
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This projected pattern of future development is reinforced by a study performed by the National Research Council.11 It concluded that by 2020 manufacturing will remain one of the principal means by which wealth is created and that it is critical that the United States be prepared to implement advanced manufacturing methods in a timely way. This study also proposed that the evolving competitive climate will require agile, rapid responses by manufacturers to market forces, because sophisticated customers around the world will increasingly demand customized products.
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By pulling together as so many other industries have done, a number of highly effective programs could be launched, including national advertising and public relations campaigns, career-planning development efforts, localized school outreach, plant tours and educational programs. In addition, if manufacturers want a greater share of the talent pool, then they must compete more effectively by marketing jobs that offer respected and fulfilling career paths.
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The National Association of Manufacturers will implement the following targeted activities at the community level: Advocating public policies that will maintain and strengthen the manufacturing sector; Launching an awareness campaign to promote the desirability of manufacturing careers in modern manufacturing firms; Filling the career-information void with copious data for counselors, teachers, parents, and students; and Working to make education and training in both the private and public sectors more relevant to manufacturing's needs. The urgent goal is to energize and focus the sector's many resources to solve its common problem.
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