One of the most top-of-mind challenges facing manufacturers is workforce development and the skills gap issue. Our company, Hire Dynamics, which focuses on the manufacturing industry, is a founding partner of Next Generation Manufacturing (NGM), a Georgia-based nonprofit dedicated to the manufacturing industry. They provide a business forum for manufacturers and their resources to exchange best practices relating to innovation, people and processes to create the next generation of manufacturing. The organization accomplishes this through timely programming and events throughout the Southeast.
As part of its ongoing focus on workforce development and diminishing the skills gap, NGM recently hosted a webinar on manufacturing workforce issues and solutions. I was one of the guest speakers, along with Larry Korak and Amy Ihlen, both executives with Infor, a global enterprise software solutions company.
Some of the facts highlighted during the meeting:
- Georgia manufacturing worker demand versus supply has increased 30 percent in the last 12 months.
- There are more than 5 million manufacturing jobs going unfilled this month in the United States.
- Over the next decade, 2.7 million manufacturing jobs will be vacated due to baby boomer retirements and 700,000 jobs are likely to be created due to natural business growth.
These issues, and others, are creating a dire skills gap and the need to manage human capital. Suggested solutions include:
- Be flexible regarding job requirement expectations. Do they really need four years of experience?
- Be flexible regarding wages — 49 percent of U.S. companies anticipate wage increases this year.
- Coordinate education, k-12 thru college, to match local job demand. Update local mindset to fill jobs versus provide degrees.
- Marshal public, private, and education resources to attack specific local job demand.
- Human capital management might be one of the last in a company's to-do list, but given the priority of hiring talent in a tightening labor market, the IT focus on HR needs to be escalated.
These solutions are both short- and long term, applicable to all companies. As we work with manufacturing clients, we encourage them to make their future workforce today’s priority. A few ways to get started are outlined below and reflect the items that should be most important to manufacturers who want to stay competitive:
- Work with your team to develop and define your company's long-range employment goals and an operational plan that can be seen and measured. It is important to engage your entire team when implementing cultural changes.
- Connect with state and local resources: Georgia offers Quick Start and the technical colleges and state and local economic development agencies and chambers of commerce. These agencies have teams dedicated to assisting manufacturers and can assist with startups, expansions and training.
- Get involved in your manufacturing community. Several counties have developed manufacturing groups that work with the schools and businesses in their community and are a great local resource. Get connected to trade groups, suppliers, etc.
- Connect with the statewide manufacturing community. Georgia is home to nearly 10,000 manufacturers .
There are successful workforce development programs at companies located throughout Georgia. Groups like NGM provide unique access to these companies and their success stories. Companies like Southwire and their Twelve for Life program; Siemens (located in Forsyth County) and the program they have created with their local education system and business leaders; as well as companies that participate in the Great Promise Partnership, which works with at-risk high school youth, as well as many college and career academies.
The conversation continues and we want you to be a part of it.
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