South Florida Manufacturers Association

Addressing the Manufacturing Skills GapJennifer McNellyPresidentThe Manufacturing InstituteJune 28, 2012Key Point Introduction

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Its a pleasure to be here today among so many manufacturers.

Thank you for asking for The Manufacturing Institute to be a part of todays meeting.For those of you who are not familiar with my organization, The Manufacturing Institute is the research and solutions affiliate of the National Association of Manufacturers. The Institute conducts research on a host of issues facing U.S. manufacturers and designs and implements solutions focused on building an educated and skilled workforce and accelerating innovation in manufacturing.Over the past few months, manufacturing has enjoyed something of a national spotlight. Organizations all across Washington, from the White House and Congress to major think tanks and government agencies, have been discussing the manufacturing industry and what America must do to maintain and grow its manufacturing base. 1A Renaissance in Manufacturing?Nearly 500,000 jobs added in the last two years.

Major consulting firms issue reports predicting a return of manufacturing from Asia. Manufacturing Jobs in U.S. (000s)Key Point There appears to be a renaissance in manufacturing. In the past two years, manufacturing has added 500,000 jobs and we expect to see a lot of jobs reshored from other countries.

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In the two years, there has been a notably increase in manufacturing jobs in the U.S. And actually, as of Friday, we are now over 500,000 jobs in the last two years. 500,000 jobs does not erase the fact that over 7 million jobs have been lost in the last 10 years, but two consecutive years of job growth in the industry is unprecedented in recent memory. Some of this can be explained as an increase in production after a severe decline in 2008 and 2009, but there is also something else going on. Many of the firms that moved their operations overseas are now discovering that the cost savings arent as large as expected. Accenture recently did a study with the Institute that looked at the cost factors that firms considered when moving overseas. What they found was that most companies did not price in the cost of flexibility, speed, quality, and other difficult to quantify issues. But those things were, in fact, adding costs to their production both directly and through damage to brand and speed to market. The total cost of production overseas therefore was nearly comparable to the U.S. Then last year, Boston Consulting Group issued a report that showed manufacturers were on the cusp on moving many of their operations back to the U.S. There have been a growing number of press reports of companies moving back to the U.S. for all those reasons and there is a real opportunity in the next year or two to make significant gains in manufacturing.

2Structural Cost of ManufacturingU.S. Manufacturers face a 20% cost burden over competitors from our largest trading partners.Corporate tax rates make up over half that burden as other countries have reduced rates.U.S.CanadaMexicoJapanChinaGermanyU.K.KoreaTaiwanFrance199740%44%34%51%33%57%31%30%25%36%201040%31%30%40%25%29%28%24%17%33%The Manufacturing Institute & MAPI - October 2011Key Point Manufacturers in the United States face a serious competitive disadvantage compared to other nations. In fact, they face a 20% cost burden compared to our nine largest trading partners.

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With all this great news, we still need to face the reality of a global economy. U.S. manufacturers face a 20% cost burden compared to companies operating in those countries. Youll notice that this reverses what was a downward trend in the data

In our on-going report series, we compare these structural costs to those in our 9 largest trading partners.

This factors out direct costs like labor, raw materials, and transportation and instead looks at corporate tax rates, employee benefits, torts, energy, and environmental regulations. One of the biggest contributors to this increase was the lowering of corporate tax rates in places like Canada, Germany, Taiwan, and Korea. In fact, every major trading partner has lowered their corporate tax rate in the last 15 years except for the U.S.What they all realize is that the global economy is really a global competition for jobs and manufacturing jobs are the most valuable because of that multiplier effect that I showed earlier. Countries are doing whatever they can to attract manufacturing jobs to their shores and we better take action if we expect to stay in the game.The good news is that many of these structural costs are easily fixable.

The calls for major tax reform are growing in Washington and, regardless of the outcome of the Presidential election, we may see some real action next year.

The energy plays in places like Pennsylvania and North Dakota give the hope of lower energy costs, and even the EPA has backed off some of the regulations that would have greatly impacted manufacturing.

While 20% is a significant burden, we can reduce or eliminate this gap in short order.It is the second major obstacle to a renaissance in manufacturing that is more troublesome. While all the positive stories about manufacturing in the last year or two have been gratifying, it does not undo 3 decades of negativity. The constant steam of manufacturing is dying stories and reports caused real and lasting damage to the image of our industry.Nowhere have the effects of that damage been greater than on the manufacturing workforce. American society used to greatly value and respect men who built things with their hands. At the turn of the last century, the greatest names in our country were either industrialists like Henry Ford and Andrew Carnegie or inventors like Thomas Edison and the Wright Brothers. These were the men parents aspired their children to be.This continued through the 20th century as high school graduates sought work at the local factory and college graduates dreamed of becoming rocket scientists. That began to change in the 70s and 80s though as parents instead began to dream of their children as doctors or lawyers or Wall Street bankers, and guidance counselors pushed students away from manufacturing careers and towards college-appropriate careers.In most of our states, school systems responded to this shift in societal priorities and values by reducing or eliminating the once ubiquitous vocational programs available to high school students. Fewer and fewer students were learning the skills needed to enter manufacturing careers or experiencing the excitement and sense of accomplishment that comes from building and making things.

3Manufacturings Multiplier EffectSource: U.S. Bureau of Economic Analysis, 2007 Annual Input-Output TablesKey Point Manufacturing is vital to our nations economic security as no other industry creates more value or has a higher multiplier effect.

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Manufacturing is certainly deserving of the recognition it is now receiving because it is an industry that is truly vital to our economic security. No other industry creates more value or has a higher multiplier effect, and this results in a 53 percent compensation premium for manufacturing workers nationwide.Manufacturing is also the leader in generating wealth from overseas, contributing 57 percent of the total value of U.S. exports. Of course, manufacturing also plays a vital role in our national security, building the equipment, machines, and armor that equip and protect our servicemen and women.

4Unwavering Commitment - Unfortunate Disconnect 86 % believe Americas manufacturing base is important or very important to their standard of living;If they could create 1,000 new jobs in their community with any new facility, they ranked manufacturing at the top of the list;79 % say a strong manufacturing base should be a national priority; But1/3 of parents would encourage their child to go into manufacturing

The lack of qualified workers is impacting growth and recovery..

Key Point 86% of Americans believe that manufacturing is important or very important to their standard of living. However, only one-third of American parents would encourage their child to pursue a career in manufacturing.

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The American public understands how important manufacturing is to our country. Not only do they believe that manufacturing is critical to our economic and national security, but when given a choice of selecting any industry to create 1,000 jobs in their backyard, the number one choice is manufacturing. The attention to manufacturing from policymakers and the support from the American public could not be happening at a better time because we may be on the cusp of a renaissance in manufacturing in the United States.

Unfortunately, this too is reflected in our public perception survey. Less than 20% of Americans said that their parents or their school system encouraged them to pursue a career in manufacturing. And when asked what industry they would choose if they could start their careers today, manufacturing was near the bottom. Perhaps it is just a coincidence that as manufacturing disappeared from schools, a general malaise settled over public education in the U.S. High school drop out rates soared to over 30% of students.

Graduates lacked the basic reading, writing, and mathematics skills needed in society. Enrollment in remediation courses at higher education increased, burdening higher education with a sort of under preparation tax.

And employers noted a decline in the basic workplace requirements like punctuality and work ethic.The cumulative effect of these shifts was to dramatically reduce the size and quality of the pipeline of workers entering manufacturing. Unfortunately, this could not have happened at a worse time for U.S. manufacturers.This at a time when the manufacturing sector has transformed. Computer controlled robots and machines now produced and moved goods. Clean suits are as common as hard hats. And workers were now responsible for the programming and maintenance of the machines. What had traditionally been a low-skill, routinized workplace was now a highly skilled, customized and integrated workplace.

582%Key Point In our national skills gap report, over 80% of manufacturers reported a moderate or serious shortage in skilled production workers. Compounding this, the skills gap has led to a situation where 5% of all jobs in manufacturing meaning there are 600,000 open jobs in manufacturing.

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In our national skills gap report over 80% of manufacturers reported a moderate or serious shortage in skilled production workers. 80%.

Nearly 75% of manufacturers say that this shortage has negatively impacted their ability to expand, costing us an incredible number of jobs at a time when jobs are desperately needed. This has led to a situation where 5% of all jobs in manufacturing are unfilled because companies cannot find workers with the right skills. In real terms, that is 600,000 open jobs today in manufacturing.Those are some frightening results and make clear the threat that a lack of a skilled workforce poses to manufacturers.

6The Skills Gap in Manufacturing82% of manufacturers report a moderate or serious skills gap in skilled production.74% of manufacturers report that this skills gap has negatively impacted their companys ability to expand operations.69% of manufacturers expect the skills shortage in skilled production to worsen in the next 3-5 years.5% of all jobs in manufacturing unfilled due to lack of qualified workers.The Manufacturing Institute & Deloitte - September 2011Key Point In our national skills gap report, over 80% of manufacturers reported a moderate or serious shortage in skilled production workers. Compounding this, the skills gap has led to a situation where 5% of all jobs in manufacturing meaning there are 600,000 open jobs in manufacturing.

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In our national skills gap report over 80% of manufacturers reported a moderate or serious shortage in skilled production workers. 80%.

Nearly 75% of manufacturers say that this shortage has negatively impacted their ability to expand, costing us an incredible number of jobs at a time when jobs are desperately needed. This has led to a situation where 5% of all jobs in manufacturing are unfilled because companies cannot find workers with the right skills. In real terms, that is 600,000 open jobs today in manufacturing.Those are some frightening results and make clear the threat that a lack of a skilled workforce poses to manufacturers.

7Manufacturing Jobs Require Higher Skills

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The manufacturing sector has been steadily up-skilling in the last two decades. More manufacturing employees are higher educated and higher skilled than in the past. Since 2007, more than half of all manufacturing workers have completed some college classes, and the proportion continues to increase.

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Workforce has become a major issue for manufacturers because manufacturing processes have changed dramatically in the last 10 years. The widespread application of technology and use of computers and robotics have reduced the number of workers needed to produce goods and increased the complexity of the required jobs.This chart shows how the percentage of higher skilled workers has increase in manufacturing over the last several years. And this does not even take into account the leaning during the early 2000s when many of the most unskilled positions in industries such as textiles were eliminated or offshored.

8Manufacturers Need New Workforce StrategiesTop sources for new employees

The Manufacturing Institute & Deloitte - October 2011Key Point There is also a serious disconnect in workforce strategies used by manufacturers. The number one talent recruitment strategy used by manufacturers is word of mouth, not through education

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Part of the blame for the lack of skilled workers rests with manufacturers though.When we asked how companies found new workers, over half said that they rely on word-of-mouth to fill positions. After that, it was staffing agencies and on-line job boards. If you look at the bottom of the list, you find community colleges and technical schools. This is where the talent is really being created and where manufacturers should be looking to supply their workforce.

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Now, to be fair, manufacturers were as much responsible for this situation as students, parents, and schools.

During the leaning process, many companies cut their training budgets to a minimum, eliminating the traditional, months-long training programs that new hires would enter. Few manufacturers had a choice in this regard though, because the cost of such programs was now prohibitive in the global economy.

When we asked how companies found new workers, over half said that they rely on word-of-mouth to fill positions. After that, it was staffing agencies and on-line job boards.

If you look at the bottom of the list, you find community colleges and technical schools. This is where the talent is really being created and where manufacturers should be looking to supply their workforce.

9A Million-Dollar InvestmentI advise each of my staff that every worker hired is a million-dollar investment for this company. Im calculating that most hires are under 45 years old; we intend to keep them for at least 20 years, and our average annual salary/benefits package is $55,000. In other words, we cant afford to make a mistaketo hire someone without the right skills. Verifiable skills certification programs can make the difference between a good investment and a high-risk.Dennis Rohrs,Human Resource ManagerFort Wayne Metals, Inc.10Key Point Manufacturers look at their workforce as a business investment. One executive has testified to this bottom line, stating that every employee he hires is a million-dollar investment. Having the ability to verify the skills of each applicant through industry-recognized credentials could make a difference.

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Manufacturers look at their workforce as a business investment: the more mobile, adaptable, technology-savvy, and creative an employee, the more secure the investment.

One executive has testified to this bottom line, articulating that every employee he hires is a million-dollar investment. If he can verifythrough industry-validated certificationsthat each incoming worker has the right skills, it could mean the difference between a good investment and a high risk.

Another colleague reports that he keeps two balance sheetsone financial, and the other human capitalrecognizing that his workforce is a business asset to be developed and carefully managed.

The response to industrys call lies in an immediate renaissance of manufacturing education, including:

Competency-based curriculum that skillfully integrates academic and technical learning paths; A heightened focus on Science, Technology, Engineering and Math skills;

More available alternatives for learning, with more on and off ramps to higher education and lifelong learning systems to acquire new skills as technology advances; and,

The integration of nationally portable, industry-recognized credentials with educational pathways, leading to postsecondary credentials with real value in the workplace.

Providing competency-based, customized education and training for the manufacturing workforcetoday and tomorrow11

11Key Point There is a serious crisis facing our nation. The Manufacturing Institute developed and is currently implementing solutions to help us close the skills gap and fill our talent pipeline. The overarching solution is the NAM-Endorsed Skills Certification System.

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In response to this crisis, The Manufacturing Institute has developed and is implementing solutions that will position the U.S. to grow our own talent.

For four years now, the Manufacturing Institute has been working on a solution to the skills gap.

Our solution is based on the idea that manufacturers have incredibly strict standards for nearly every material and machine used in the industry except one our human capital.

Therefore, lets apply a set of standards to our workforce that ensures a level of skills and competence needed in todays manufacturing sector.

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Founding Partners

Partners12Key Point In the fall of 2011, the Institute expanded the Skills Certification System to include certifications in other areas like Automation and TD&L. These sector-specific certifications will open up manufacturing education programs beyond welding and machining to provide students and potential employees with the skills for a fuller range of jobs in manufacturing.

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We have expanded to include certifications in areas like Automation, Construction, Fabrication, Fluid Power, and TD&L with more on the way.

These sector and process-specific pathways open up manufacturing education programs beyond welding and machining and give students a fuller range of the jobs available in manufacturing along with the credentials to prove they have the skills to succeed in those jobs. And along with the certifications from SME, begin to introduce skill certification into the higher level positions.

Certifications alone are not going to solve the workforce crisis that we face and they dont address the continuing lack of Masters and PhD level engineers, but I do believe that embedding them into education programs an expanding their availability will help to alleviate this serious skills gap. But were going to need the help of manufacturers.

Companies need to start using skill certifications in their hiring process. This means recognizing and preferring credentials in your job postings and telling your high schools and community colleges that you want graduates who have industry certifications. The NeedA highly educated and skilled workforce for U.S. manufacturing

Increased graduation rates, post-secondary enrollment and completion, and advanced- education attainment

Excitement about STEM and awareness of high-paying, high-quality manufacturing careersThe SolutionTechnology-infused, more life-relevant education

Increased access to post-secondary degrees and industry-recognized credentials

Clear career pathways aligned to competency-based education and certification programs

Excitement about STEM and awareness of high-paying, high-quality manufacturing careersPaths to Manufacturing Through EducationKey Point The Skills Certification System aligns to educational pathways, allowing a worker to pursue stackable credentials and providing both employees and employers with a clear career pathway.

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The Skills Certification System, and the career pathways in manufacturing that it supports, also align to education pathways in secondary and postsecondary education. Integrating the skills certifications into those education pathways implies that they should become part of degree programs of study, so that a worker can progressively pursue stackable credentials and bank credits, toward multiple degrees.

This upwardly mobile ladder directly demonstrates how learning is a continuum throughout a workers life as more competencies are acquired and documented with a recognized credential. Credentials gained through the Skills Certification System will strengthen an individuals ability to be mobile in the workforce, compete for higher-level jobs, and move to in-demand careers by:

Providing skills and competencies recognized industry-wide; and Providing career pathways clearly mapped to educational pathways tied to credentials preferred by employers in multiple sectors.

This system gives each individual a path to succeed, the skills to compete, and the opportunity to win.

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Advanced Manufacturing Competency ModelCareer Paths Life Long LearningReady for Work, Ready for CollegeEntry Level Industry CertificationsOccupation-Specific CertificationsHigh Quality Middle Class Jobs14The evolution to the Skills Certification System began with a 2-year development of the Advanced Manufacturing Competency Model, announced in May 2006.

This model, built by manufacturers, for manufacturers, is essentially a roadmap of the skills needed by workers entering and then advancing in careers across the manufacturing economy.Our first focus has been on the core or basic skills that cut across all sectors in manufacturing.

These core or basic skills are:

Personal Effectiveness Skills for example, will prospective employees show up on time, ready for workBasic Academic Requirements for example, will prospective employees have the basic math and reading skills neededGeneral Workplace Competencies for example, can the prospective employees work in teamsIndustry-wide Technical Competencies for example, will prospective employees understand the basics of manufacturingThe NAM-Endorsed Manufacturing Skills Certification SystemAligned to the Manufacturing Competency ModelNationally PortableThird-Party Validated (ISO/ANSI Preferred)Industry-DrivenData Based and SupportedTo increase speed to market, the Institute evaluated over 450 certificates and certifications focusing first on credentials that are

Nationally portable;Third-party validated; and Industry driven.

The Manufacturing Institute worked with key certification partners who are the world market leaders in skills certification programs that align with these four tiers of skill requirements.

This collaborative effort resulted in an organization of the certification programs, and the credentials they offer, into a system of stackable credentials that can be awarded in secondary and post-secondary education.

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NIMSAWS

SMES TECHNOLOGIST AND ENGINEER16The foundational competencies in the first 3 tiers are grounded in ACTs National Career Readiness Certificate.

The credentials aligned to manufacturing-wide technical skill requirements are AWSs Certified Welder, MSSCs Certified Production Technician, and NIMS Machining and Metalforming certifications.

Finally, SMEs Engineering Technologist certification caps our entry-level skills system.

These are the postsecondary credentials that have real value in the manufacturing workplace:

For workers who need to improve their skills;For workers whose jobs may be at risk, or workers who have lost a job and need to return to the workforce;For individuals coming out of the military; and,For people moving out of welfare and into work.

1717The Skills Certification System, and the career pathways in manufacturing that it supports, also align to education pathways in secondary and postsecondary education. Integrating the skills certifications into those education pathways implies that they should become part of degree programs of study, so that a worker can progressively pursue stackable credentials and bank credits, engaging in a lifetime of learning.

This upwardly mobile ladder directly demonstrates how learning is a continuum throughout a workers life as more competencies are acquired and documented with a recognized credential. Credentials gained through the Skills Certification System will strengthen an individuals ability to be mobile in the workforce, compete for higher-level jobs, and move to in-demand careers by:

Providing skills and competencies recognized industry-wide; and Providing career pathways clearly mapped to educational pathways tied to credentials preferred by employers in multiple sectors.

This system gives each individual a path to succeed, the skills to compete, and the opportunity to win.ModelsHigh school to community college ABE/bridge programs to credit certificate/diploma/degreeContinuing education to for-creditCommunity college integration into current for-credit programs of studyPre-apprenticeship to apprenticeshipCommunity college to four-year institutionsIf you look at how community colleges are organized developmental education sits in one silo while non-credit workforce training sits in another silo. To achieve real solutions, we have to be much more integrated in how we deploy these assets.Roderick Nunn,Vice Chancellor, St. Louis Community College18Action Across the County

Aligning Education, Certification and Career PathwaysFor the Mechanical and Engineering Fields at Forsyth Technical Community College, Winston Salem, NC

20SuperCIPLead CIP CollegeEnergyEnvironmental SciencesEngineering and Applied TechTransportationBuilding Sciences2122

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FLATE Center23

This slide highlights the foundational skills imbedded in the Competency Model and needed by all manufacturing workers to be productive and contributing member of a production team. Possessing cross-cutting technical skills allows workers to easily acquire the more specialized skills required for success in a high performance manufacturing workplace.Maximizing FlexibilityFoundational Skills + Cross-Cutting Technical Skills(and the industry-based credentials that support them) Motor Vehicle Parts ManufacturingPlastic Products ManufacturingMedical Equipment & Supplies ManufacturingAdvanced ManufacturingMotor Vehicle Body and Trailer ManufacturingPharmaceutical and Medicine ManufacturingThis slide shows the advanced manufacturing that are projected to grow in our sample state.

Program models that emphasize critical foundational and cross-cutting technical skills also provide ultimate flexibility and agility, in that they position institutions to serve all potential emerging industries.

Foundational skills - and the industry-based credentials that support them - are an asset on which to build future opportunity. They position colleges to be able to respond to what is needed and what various industries want. Specialty training as needed can be built on top of the foundation.

A strong foundational curriculum across all colleges helps build a talent pool that can survive the turbulence of the economic winds, and positions the region to maintain a competitive position in terms of talent development.Maximizing FlexibilityFoundational Skills + Cross-Cutting Technical Skills(and the industry-based credentials that support them) Computer Systems Design and Related ServicesArchitectural, Engineering and Related Services Pharmaceutical & Medical ManufacturingHigh-Tech ManufacturingProfessional And Commercial Equipment and Supplies National Security and International Affairs

Management of Companies and Other ServicesManagement, Scientific, and Technical Consulting ServicesThis slide shows the high-tech manufacturing sectors that are projected to grow in our sample state. Program models that emphasize critical foundational and cross-cutting technical skills provide ultimate flexibility and agility, in that they position institutions to serve all potential emerging industries.

Foundational skills - and the industry-based credentials that support them - are an asset on which to build future opportunity. They position colleges to be able to respond to what is needed and what various industries want. Specialty training as needed can be built on top of the foundation.

A strong foundational curriculum across all colleges helps build a talent pool that can survive the turbulence of the economic winds, and positions the region to maintain a competitive position in terms of talent development.Comprehensive Talent Strategy Dream It. Do It. Models in ActionTaking Action with U.S. Manufacturing Pipeline30Step 1: Garnering Support from the MilitaryCurrent Activities:Pentagon encourage Guard and Reserve to use this job platformTalent recruitment efforts on multiple bases

The Pentagon has encouraged all Guard and Reserves to use this job platform for their career search. This encompasses all industries not just manufacturing. There is also an active duty component. This has been pushed to men and women nearing their transition on three bases across the United States (NC, TX, WA), providing early access to those individuals whose MOS codes are most closely aligned with manufacturing skills and experience.31Step 2: Certifications in the MilitaryCurrent Certification EffortsDevelopment of New Certification Efforts

Current Efforts

In North Carolina, at Fort Bragg - Pipeline, the Institute and ACT worked together to offer NCRC testing to transitioning military personnel to help connect them to jobsNIMS currently has a contract with the Army in their machining programs to issue certifications to those men and women who complete the training. The military is trying to incorporate a welding certification

New Efforts

The Secretary of Defense and the White House want to move the machining/welding certification program into other branches of the military The White House, MSSC and Pentagon are looking into the possibility of delivering a CPT and CLT to those approaching transitionNext week, the White House is hosting an event to promote the certification of military personnel an exact alignment to our current efforts.

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Key Point To support the connection to qualified talent, the Institute launched US Manufacturing Pipeline. Pipeline is an easy online talent platform to connect manufacturers to skilled workers.

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To support the connection to qualified talent, the Institute launched the US Manufacturing Pipeline. While in its early stages

The U.S. Manufacturing Talent Pipeline will become the connection between employer demand and the supply of highly skilled and educated workers that come from every access point.

The online solution spans from engagement to employment.

It is the one-stop-shop for manufacturing career awareness and navigation; skills assessment and connection to education and training pathways; and the match to manufacturing jobs in our economy.

The career exploration elements of the U.S. Manufacturing Talent Pipeline meet every individual where they are in the process, whether they know the manufacturing job they want or have never considered a manufacturing career.

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35Key Point There are four tiers of skills and competencies needed for entry-level workers across all sectors in manufacturing. Once a worker has attained these skills, they are prepared for entry-level work in careers that cut across manufacturing, ranging from aerospace to metal fabrication.

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These are the 4 tiers of skills and competencies needed for entry-level workers across all sectors in manufacturing.

In other words, a worker who has achieved these skills is prepared for entry-level work in careers ranging from aerospace to computers, metal fabrication to food processing, pharmaceutical to transportation and logistics.

From an education and workforce development perspective, it is important to note that the first 3 tiers are needed across all sectors of our economy.

2011 Distribution of Manufacturing Industry Certifications by State

Key Points:

Our efforts are currently active in 32 states across the nation through grants and grassroots efforts. We have strong relationships with most of the state level manufacturing organizations and they recognize the opportunity for manufacturing right now and have been working to put the right programs and support in place to complement a growing manufacturing sector.

Additionally, as part of our event with President Obama last year, we committed to credential half a million manufacturing workers in the next five years. Its a big number, but our certification system is expanding and were confident that well exceed our goal.

In addition, 22 states and regions have launched Dream It. Do It., the Institutes talent recruitment strategy to engage, educate, and employ individuals in manufacturing. The program can be adapted and customized to meet regional and local needs and the program continues to expand across the nation.

36Shoreline Community CollegeDr. Susan Hoyne, Dean of Science, Mathematics, Automotive, Manufacturing, Engineering, and Energy

Shoreline Community CollegeShoreline is one of 34 community colleges in Washington State

Shoreline serves more than 9,000 students per quarter in more than 100 transfer and professional technical programs

Shoreline is the 10th largest college in the state by FTEs

More than 27 countries are represented in the student population

Career PathwaysShoreline was one of the original four pilot sites for NAM certification initiativeManufacturing/CNC Machinist Program was targeted Includes specialties in CAM, CNC Programming and Rapid PrototypingFocus on NIMS machining certificationFirst college in Washington to earn NIMS accreditation

Program OptionsThree program options:Day Program:Developed with a grant from the stateTwo quarter programCreated meeting Boeing needs for entry-level machinists and internsEvening program:Regular for-credit program of studyOne year/three quartersOpen-entry/open exitWeekend program:Friday evening through Sunday Targeted hard-to-serve students (e.g., homeless, single mothers, etc.)ResultsCNC Program accredited by NIMSOpen entry/open exit programGraduate approximately 40 students this year100% of students finish the first quarter and receive a Certificate of Basic Manufacturing91% complete the 3 quarter program and receive a Certificate of Proficiency in Manufacturing90% of graduates are working in manufacturing to date42% enter the 2 year degree program as of Fall 201119 students received 34 NIMS certification as of 2011Average wage $15-18.25/hour

Career Navigator

2 interns before Career Navigator14 interns in 2010 when Navigator on board21 interns in 2011These are paid full-time internshipsWaitlist for classes usually 15-20 studentsChallengesWorking with industry to promote the value of industry certifications for priority employmentMoney for updated equipmentFunding for advanced courses and faculty professional developmentConvening faculty from across the state for Train the Trainer sessionsSuccessesStudents getting good paying jobsWorking closely with some manufacturers as supporting partnersNew curriculum which meets industry needsCollaborating with other colleges rather than competingIdentifying some manufacturers that would give a bump in pay for earned certificationsSupport for Regional ConsortiumHeld several meetings to discuss common curriculumFinally have a common program for the 2 quarter certificateWorking on a common final project to demonstrate learningContinued discussion and meetings with support of the Manufacturing Center of Excellence

Community & Technical Colleges Consortium

Shoreline is providing technical assistance related to NIMS accreditation and stackable credentials.Regional Consortium in Support of Aerospace IndustryAligning Education, Certification and Career PathwaysFor the Manufacturing Industry at Shoreline

Right Skills Now in Washington

11 participating colleges

Help address skills gap facing aerospace and aviation

In 2011 the Institute launched Right Skills Now and it is a direct result of the work of GE Chair Jeff Immelt and the Presidents Jobs Council.

Under the Right Skills Now mode. smaller manufacturers were in particularly desperate for CNC operators and machinists and were in danger of losing contracts or going out of business if they could not fill those jobs.

So we worked with two colleges in Minnesota to design a fast-track machining education program that, in 15 weeks, delivered a handful of certifications from ACT and NIMS reflecting both academic and technical skills and then paired them with internships at local manufacturers where students would both receive college credit and complete their education while on the job.

This model has proved so popular that the schools are struggling to find additional instructors to meet the course demand and other states are now replicating the program.

The design engages employers with internships that can lead them to meeting immediate workforce needs.

In 15 weeks, employers, in partnership with education, Right Skills Now:Meets specific, immediate demand;Grounds training in national certification to meet immediate need (basic skills and production);Supports dislocated workers and transitioning military; andLinks to education to build the pathway for life-long learning.

For students, deploying a flexible models allows individuals to gain postsecondary credentials with immediate value in the workplace.

It ensures students can choose to move to employment and continue their studies and their accumulation of industry-recognized credentials and credit on the road to a degree.

Giving employers the opportunity to emphasize the importance of workers continuing to achieve their educational goals while they are working to help them advance within their career pathway.

50Championing National LegislationAmerica Works

To require that certain Federal job training and career education programs give a priority to programs that provide an industry recognized and nationally portable credential.

Congressmen Mr. DONNELLY of Indiana (for himself, Mr. PLATTS, and Mr. BOREN) introduced a bill which would give priority consideration for investment of public education and workforce training resources to programs that result in NATIONALLY PORTABLE, INDUSTRY-RECOGNIZED CREDENTIALS.

We expect a introduction in the Senate shortly.

This would be in direct support of funding for secondary and postsecondary programs of study aligned to the NAM-Endorsed Manufacturing Skills Certification System.51

Key Point In the end, the Skills Certification System is a win-win scenario for all stakeholders. We are working to making a difference not only in the manufacturing sector, but for the nations economy.

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In the end, we will achieve a win-win scenario for workers, educators, and industry.

For workers, the Skills Certification System will make high-quality jobs more attainable by making applicable educational and career pathways more accessible.

For educators, the System will help to lower the dropout rates, and increase the number of students who are ready for work upon completion of their experience in a post-secondary institution.

For employers, the Certifications will validate that an incoming worker has acquired the right skills to perform to standards.

For regional development organizations like workforce investment boards, the System will institute the critical linkage between a communitys education system and its employment opportunities to develop and source local talent that directly enhances regional economies.

52Contact InformationJennifer McNellyPresidentThe Manufacturing Institute733 10th Street, NWSuite 700Washington, DC 20001jmcnelly@nam.org53