1. Workforce Skills Shortage

2. Manufacturers Say Open Jobs Require More Skills Than Available
Workers Have.
The website EconomyWatch.com (7/22) examined why manufacturers say that they cannot
find the right people to hire. Baiju R. Shah, head of BioEnterprise, a Cleveland nonprofit
"trying to turn the region into a center for medical innovation," says, "The people that are
out of work just don't match the types of jobs that are here, open and growing." Cleveland
"has added 4,500 positions" since the beginning of the year, but in nontraditional areas.
One company, Ben Venue, which makes drugs on contract for pharmaceutical companies,
"has recruited about half its new factory hires from outside the pool of former
manufacturing workers." At Astro Manufacturing and Design, which makes parts and
devices for aerospace, medical and military industries in the Cleveland area, "an outside
recruiter has reviewed 50 résumés in the last month and come up empty" for jobs that pay
$18-23 per hour but "require considerable technical skill."

3. Factory Jobs Returning, But Employers Struggling With Skills Shortage.
The New York Times (7/2, A1, Rich) reports on its front page, "Factory owners have been
adding jobs slowly but steadily since the beginning of the year, giving a lift to the fragile
economic recovery. And because they laid off so many workers...manufacturers now have a
vast pool of people to choose from." However, "some of these employers complain that
they cannot fill their openings," pointing to "a mismatch between the kind of skilled
workers needed and the ranks of the unemployed." This is partly due to domestic
manufacturers having "accelerated the long-term move toward greater automation" as they
outsourced and laid off workers. "Now they are looking to hire people who can operate
sophisticated computerized machinery, follow complex blueprints and demonstrate higher
math proficiency than was previously required of the typical assembly line worker."

4. British Columbia Suffers From Shortage Of Skilled Workers.
The Vancouver Sun (6/26) reported, "a looming labour shortage and dwindling number of skilled
workers immigrating to B.C. mean the province will be forced to" begin depending on
"immigrants to fill about one in three job openings, according to the recently released British
Columbia Labour Market Outlook: 2009-2019. At the same time, the number of skilled workers
immigrating to the province appears to have hit a 15-year low." The Sun noted that "About
15,100 skilled workers settled in the province last year, based on BC Stats numbers and provincial
government targets. It's the lowest total since 1994." "Immigration is the key to future economic
growth in B.C.," said Moira Stilwell, the minister in charge of labour market development. "Even
though the economy has slowed down, skilled labour shortages remain."
Lack Of Skilled Workers Affecting South Australia. Australia's Adelaidenow (6/27) reported
the motor industry "are finding it increasingly difficult to find skilled workers," but notes that
"more than half its employers will take on additional tradesmen and apprentices in the next 12
months." Additionally, "The industry warns that to pay skilled workers and take on more
apprentices, the industry and the public would have to look at paying more to repair modern
vehicles." The survey showed 51% of employers may take on new tradesmen and apprentices in
the next 12 months – a rise from 43% in 2009.

5. Whirlpool Shuts Down Factory In Evansville, Indiana.
The AP (6/25) reported, "Hundreds of people worked their final shifts Friday at a Whirlpool Corp.
refrigerator factory in southern Indiana that has been the site of protests over its closure." The
plant's production line was shutting down after 54 years, leaving 600 workers without jobs. An
additional 450 employees were laid off in March when Whirlpool decided to end its second
production shift. Whirlpool announced last year "that it would shut down the factory and move
production to Mexico. Whirlpool will still have a presence in the city, with 300 employees at its
refrigeration design center." The AP noted "months of protests over the closing plans didn't
change the decision, which executives of the Benton Harbor, Mich.-based company said was
needed to reduce costs and streamline its operations."

6. Factory Jobs Return, but Employers Find Skills Shortage
Source: The New York Times - July 1, 2010
Factory owners have been adding jobs slowly but steadily since the beginning of the year, giving a
lift to the fragile economic recovery. Because they laid off so many workers -- more than two
million since the end of 2007 -- manufacturers now have a vast pool of people to choose
from. Yet some of these employers complain that they cannot fill their openings. Although plenty
of people are applying for the jobs, the problem is a mismatch between the kind of skilled
workers needed and the ranks of the unemployed.

7. Is a worker shortage on the horizon?
With millions of unemployed people across the country struggling to find work, it may seem
unbelievable that a worker shortage could develop within 10 years as baby boomers reach
traditional retirement age. That is the predicted trend, according to a report published by the
MetLife Foundation and San Francisco-based Civic Ventures, a think tank focusing on baby
boomers, work and social purpose.
“When the nation comes out of the current jobs recession — and this may take two to three
years — we will begin to see spot shortages in labor markets,” according to the report. “If the
economy continues to improve, the spot shortages will become more general, and we will
experience the shortages our research projects.”
By analyzing government labor and population trend data, and taking into consideration that
baby boomers are expected to retire later than previous generations, the report indicates there
would be 3.3 million to 4 million vacant jobs.
Source: MarketWatch.com, March 22, 2010

8. Manufacturers Partner With University Of Phoenix To Create Manufacturing
Skills Curriculum.
IndustryWeek (3/18) reports, "Progress toward a manufacturing certification program gained
strength after the NAM and the University of Phoenix said...they have partnered to develop
curriculum aimed at developing manufacturing skills." The program "will be designed to align
with the NAM-endorsed Manufacturing Skills Certification System. The University of Phoenix will
offer programs that enable manufacturing workers to advance in their careers while acquiring the
skills and competencies required for certification, which was developed by NAM's education and
research arm The Manufacturing Institute." Last year, "nearly 12 million Americans worked
directly in manufacturing -- about 10% of the overall workforce."
The Phoenix Business Journal (3/18) reports, "University of Phoenix is working with the
nonprofit Manufacturing Institute to develop curriculum designed to prepare students for careers
in the industry." Through the partnership, the university "will offer programs that enable working
students to advance in their careers with an emphasis on strategic planning and new
technologies to help ensure that the manufacturing sector stays current and competitive in a
global market."

9. Amid Waning Job Openings, A Shortage Of Skilled Workers.
The CBS Evening News (8/11, story 12, 2:30, Hill) reported that "there are more signs the
economy is slowing again, including this one. There were 60,000 fewer job openings in June than
the month before, which means there are now five unemployed workers competing for every
one job." However, "there are jobs to be had for skilled workers." CBS (Bowers) added, "By the
year 2012, it's estimated this country will be three million skilled workers short. And it's not just
in the manufacturing sector. 22% of American businesses, according to a recent survey, said
they're ready to hire if they could find the right people."

10. • Cincinnati, Northern Kentucky Manufacturers Could Face Skilled
Labor Shortage.
• The Cincinnati (OH) Enquirer (9/6, Boyer) reported, "Nearly 38,000
manufacturing jobs have been lost in Greater Cincinnati and
Northern Kentucky over the past 10 years, but this industry is far
from dying. ... Manufacturers are producing airplane parts, vinyl
windows, prefab bridges, burial caskets and movie-theater popcorn
machines. Employment is starting to creep back up," and
"employers are promoting high-tech positions that can pay up to
$25 an hour, with excellent fringe benefits." Manufacturers note
that "their main challenge is not a loss of work, but finding
sufficient new workers with specialized, high-tech skills. Unless
significant gains are made, the industry that helped build the
Midwest faces a future labor shortage caused by the exodus of
aging employees and an outdated image of unskilled factory work."

11. • Technology, Training Both Key Aspects Of Advanced Manufacturing.
• IndustryWeek (9/22, Katz) reports, "Manufacturers are using a
combination of technologies, processes and education to promote a new
era of US manufacturing that can't be easily replicated by competitors."
While advanced manufacturing has "been used loosely to explain any
number of methods that take manufacturing operations to another level
not easily replicated by competitors," IndustryWeek points to a definition
from the Anderson Economic Group classifying it as operations that
"create advanced products, use innovative techniques in their
manufacturing, and are inventing new processes and technologies for
future manufacturing." Experts note that other factors play a part. "Steven
Dwyer, president and CEO of advanced-manufacturing consortium
Conexus Indiana, includes continuous-improvement principles such as
lean manufacturing." Skilled worker shortages are also an issue, and
Dwyer said the consortium is "enlisting area manufacturers to help
develop an advanced-manufacturing curriculum for area high schools and
colleges."

12. • Blue-Collar Workers May Face Bleak Future.
• In a 4,000-word feature article, Reuters (9/16) reports on the "long-
term unemployed," particularly the middle-class, blue collar factory
and construction workers that represented a significant portion of
the population of states like Michigan. According to many experts,
the jobs of this type that were lost in the recession are unlikely to
come back when the economy picks up again. "It's competitive
forces and technology that (are) taking those jobs and reducing
them in both quantity and complexity," explained Manpower CEO
Jeff Joerres. As a result, the jobs that do return will likely either be
poorly paid, or require specific technical skills. The article profiles
some workers who are facing long-term unemployment. It also
notes that some companies have been critical of the government
response to the crisis, arguing that job creation should have been a
larger priority, and that infrastructure projects should have been
better funded.

13. • Future Hiring Expected To Split Between Highly Skilled And Service
Industry Jobs.
• The AP (9/6, Rugaber, Liedtke) reported, "Whenever companies start
hiring freely again, job-seekers with specialized skills and education will
have plenty of good opportunities. Others will face a choice: Take a job
with low pay - or none at all." According to some economists' predictions,
new jobs will be created in these two categories in "roughly equal
numbers," while the outlook for jobs falling between these two categories
is "bleaker," with "fewer moderately paid factory supervisors, postal
workers and office administrators." Those jobs projected "to grow fastest,
according to economists and government projections," include those in
healthcare, information technology and "new industries," such as
predictive analytics. Experts noted that technology is a powerful but
unpredictable economic driver, and that until there is more "clarity on
what the next big thing is going to be," job seekers may "have to lower
expectations and living standards as they enter fields with less pay and
less job stability."

14. • Manufacturing Faces "Schizophrenic Attitude" In The US.
In his Washington Post (8/31) column, Ezra Klein wrote that
during research for an article several years ago he found
that manufacturing "was caught in transition between its
past glory as the provider of good, upwardly mobile, blue-
collar jobs, and its future as a smaller, high-skills, high-tech
industry. The problem was that the collapse of low-skill
manufacturing had scared off the talent needed for high-
skill manufacturing," and the US lost manufacturing jobs on
both ends of the talent spectrum. He notes a recent blog
post by Kathleen Fasanella in which she laments America's
"schizophrenic attitude about manufacturing," at once
celebrating factories and thinking they "are terrible places."

15. • Lack Of Skilled Workers Could Slow Recovery, Manpower Survey Finds.
• American Public Media's Marketplace (8/25, Radke, Genzer) reported, "We got a new report
today from the employment agency Manpower that says skilled workers like carpenters,
electricians and plumbers are in very short supply," despite the decline in home construction.
"It's actually a worldwide problem," and due in part to the fact that "the skilled trades have
an image problem." The Manpower survey "found that a lack of skilled tradesman was the
number one hiring challenge for the US and five other leading industrialized countries." Clark
University business professor Gary Chaison "says construction firms and other businesses are
also having a hard time finding" skilled workers, and the "shortage will just get worse as the
economy starts to recover and companies become more interested in hiring."
• MLive.com (8/26, Headapohl) reports that Manpower's 2010 Talent Shortage Survey
named "the United States, Germany, France, Italy, Canada and Brazil" as some of the
countries "where employers ranked skilled trades as their number one or number two hiring
challenge." Manpower CEO Jeff Joerres said, "Inadequate training and negative stereotypes
relating to skilled trades are further fueling a dangerous shortage of skilled workers. ...
Employers and governments need to bring honor back to the skilled trades." The report
"recommends a 'strategic migration' policy as a short-term solution to ensure that enough
workers are available to complete key projects. It also recommends promoting the skilled
trades in order to 'plug the talent gap.'"
• Reuters (8/26, Zieminski) quotes Joerres as saying that the skilled labor shortage will
become "a real choke-point in future economic growth." The International Business Times
(8/26, Li) reports, "The skilled labor shortage is not limited to developed countries, however.
The apparent shortage in large developing countries like China, India, and Brazil may 'impede
the progress of infrastructure projects and jeopardize national growth,' said Manpower." The
Milwaukee Business Journal (8/26) also reports the story.

16. • High Unemployment Attributed To Labor Supply Disconnect. Rana
Foroohar, writing for Newsweek (9/25), says that "even as it took
more than a year to figure out that the recession was over, it will
now take many more...to ferret out why unemployment still
remains at historic highs even as the economy is growing once
more. ... A new report by London-based Capital Economics says that
supply problems -- the workers who need jobs are in the wrong
states, and the wrong fields -- could be responsible for nearly a
third of America's unemployment rate." Some "sectors of the
economy are growing strongly -- including health and education --
but they can't find enough workers, in part because wages have
historically been too low to attract new talent. While that mismatch
may help teachers and nurses negotiate better pay packages, it
won't help bring down unemployment rates among builders and
machinists."

17. • Robotics Industry May Grow By $100 Billion Over
Next Two Decades.
• According to TMCnet (9/28, Tuttle), two decades ago,
"robotics was thought to be more of a hobby for technology
companies rather than a field with any real potential. Today,
the robotics space is a $6 billion industry in the US alone."
Meanwhile, a number of other countries are currently
considering "artificial intelligence, advanced machinery and
advanced material sciences to be major staples of their
economy." Inside the Bay Area recently reported that "over
the next two decades, the industry is expected to grow by
another $100 billion."

18. • Companies Looking For Employees With Multiple
Skills.
• The AP (10/11) reports, "The jobs crisis has brought an
unwelcome discovery for many unemployed
Americans: Job openings in their old fields exist. Yet
they no longer qualify for them." This is "a trend that
took root during the recession. Companies became
more productive by doing more with fewer workers.
Some asked staffers to take on a broader array of
duties - duties that used to be spread among multiple
jobs."

19. • Nashville To See Worker Shortage In A Few Years, According To
Study.
• The Nashville (TN) Business Journal (10/1, Hieb) reports, "Nashville
will experience a worker shortage starting in the middle of this
decade, according to a report. .. The shortage will be caused by
retiring baby boomers, a smaller crop of workers to replace them,
and continued job growth." The study "projects that unemployment
will return to pre-recession levels in 2015 or 2016. By 2019, the
study projects there will be 23,688 more jobs than there will be
workers to fill them. Professional and business services, health care
and financial activities are expected to experience the most growth,
with manufacturing continuing to decline." The report calls on
"schools and policymakers to guide more people to careers in
health care, information technology and engineering."

20. • Firm Starts Own School To Secure Trained Workforce.
• NPR 's (11/16, Arnold) "All Things Considered" reported, "Some
experts say employers are having trouble finding qualified people
for too many" of the three million "job openings across the
country." Experts "say the problem is that technology is outpacing
the country's current approach to educating and training workers."
Carl Pasciuto, president of the Custom Group, pointed out, "People
have an image of a dark, smoky factory with a dirt floor with metal
parts flying everywhere." But "today's advanced manufacturing
facilities like Custom Group's factory look more like well-lit, clean
airplane hangars full of super-high-tech equipment." To address the
need for a trained workforce, Custom Group has "started its own
training school." Todd DellaPorta, the lead instructor of the school,
"says the students' education levels and work experience are all
over the map, but most are doing well."

21. • Connecticut Launches Project To Encourage Students Toward
Manufacturing Careers.
• The Manchester (CT) Journal Inquirer (12/11, French) reported,
"The Connecticut Center for Advanced Technology in East Hartford
and Rep. John B. Larson, D-1st District, on Friday kicked off the
state's participation in a national program to encourage students to
consider jobs in manufacturing." According to Larson, "The 'Dream
It, Do It' program was started by the National Association of
Manufacturers and is aimed at addressing the shortage of skilled
manufacturing workers. ... The initiative 'strives to help students
understand educational paths available to obtain skills that lead to
good-paying careers in manufacturing and related businesses to
strengthen our regional economy,' he said."

22. • Manufacturers Report Difficulties Finding Workers In Ohio.
• The Dayton Daily News (8/21, Gnau) reported that "state and local manufacturing
industry insiders report" difficulties "finding workers with basic work skills or even
a simple desire to work hard at a time when manufacturing in Ohio is rebounding."
Michael van Haaren, president and chief operating officer of Troy's Stillwater
Technologies Inc, said, "To find young folks interested in the manufacturing and
machine tool trade, with skills and a good work ethic, is getting difficult." John
Gajewski, executive director of manufacturing for the Workforce and Economic
Development Division of Cuyahoga Community College in Cleveland, said, "We in
manufacturing need to do a better job of communicating the opportunities that
are available in manufacturing, and we need our public partners to assist in that."
• The Middletown (OH) Journal (8/22, Gnau, Sedlak) reports, "Manufacturers
say they are grappling with three challenges, all being felt at about the same time:
Advancing technology means companies need workers with greater skill and
problem-solving ability. Older workers, many of them baby boomers, are retiring in
increasing numbers. And during the recent recession, many manufacturers admit
they simply let too many workers go." Gajewski estimates that about "200,000
'replacement workers' will be needed for Ohio manufacturing jobs in the next five
years, as older workers retire. He believes it will take a partnership of community
colleges, universities, businesses and government to begin to fill that gap."

23. • Caterpillar CEO: Not Enough Skilled Workers.
• Reuters (9/13) reports Caterpillar CEO Doug
Oberhelman said that the company is
struggling to find technical, engineering
service technicians and other workers for its
manufacturing operations. Oberhelman said
that the company has to retrain every person
it hires

24. Manufacturing Becoming Younger, More Skilled.
• The St. Cloud (MN) Times (10/23) reported,
"Manufacturers face an aging workforce, the trades
increasingly require higher education and many young
people also have relatively weak interest in
manufacturing jobs." Also, manufacturing "battles a
reputation for low-paying work involving dull and
repetitive tasks. Altering that image could be the main
hurdle to US companies competing in the world
market." The Times noted, "According to the National
Association of Manufacturers, average compensation
for a manufacturing job in Minnesota in 2009 was
above the state's average for nonfarm work."

25. Manufacturers In Texas Having Trouble Finding Workers.
• On its website, KXAS-TV (10/22, Ross) reported,
"Manufacturing businesses say they are having trouble
finding potential employees with the right skill sets.
The unemployment rate in Texas hovers at about 8.5
percent, but the manufacturing industry has plenty of
job vacancies." The report noted that "according to
national survey by Deloitte LLP and the Manufacturing
Institute, 67 percent of manufacturers are seeing a
moderate to severe shortage of qualified workers."

26. • Workers Laid Off During The Recession Do Not
Possess The Skills That Employers Need
• The San Antonio Express-News (12/7) reports, "During the
recession, the collective US employer somehow advanced
technologically beyond what the workforce is able to provide."
Workers "who lost their jobs do not possess the skills employers
now require to remain competitive." The Express-News notes that
Rey Chavez, the president and CEO of the San Antonio
Manufacturers Association, "said the National Association of
Manufacturers is talking increasingly about the need for employers
to train people on the job instead of waiting for skilled workers to
apply."

27. Governor Wants Mississippians To Look At New
Approaches To Improve Education
• The AP (12/9) reports, "Gov. Haley Barbour said Thursday he wants
Mississippians to look at new approaches to improve education,
including more opportunities for job training instead of bachelor's
degrees and the involvement of churches to help prevent struggling
students from dropping out of high school." Emily DeRocco,
president of the Manufacturing Institute, called on Mississippi "to
widen opportunities for nationally recognized training certificates.
She said that a survey by her group shows 600,000 factory jobs are
unfilled because manufacturers now need higher-skilled workers to
compete worldwide."

28. Manufacturing Careers A Hard Sell To Texas Teenagers
• The Houston Chronicle reports that, "as important as it
is, manufacturing is a hard sell to teens thinking about
careers." Patrick Jankowski, vice president of research for
the Greater Houston Partnership, "is predicting that
manufacturing will be among the fastest-growing sectors
in Houston next year, thanks to the resurgence in
domestic drilling and demand from emerging markets for
oil field equipment, plastics and chemicals." Kathy
Housel, director of the school of continuing education at
Houston Community College, said that many "students
shy away from industrial education because of pressures
from home."

29. Manufacturers Facing A Shortage Of
Skilled Machinists
On its website, FOX News (12/16) reports on the
shortage of machinists in the US. The report
notes that a study conducted by the National
Association of Manufacturers found that the
largest impediment to future economic growth
is a skilled workforce.