Building Manufacturing Success in the Finger Lakes

Manufacturing Forum

May 16, 2006

Agenda

Welcome and Introduction A Look at Manufacturing in the Finger Lakes Regional Skills Alliance Next Steps

Introductions

CSW Finger Lakes Workforce

Investment Board Regional Manufacturing

Employers

About the Finger Lakes WIB

Made up of members from both the private and public sector of Ontario, Seneca, Wayne and Yates counties

Provides services to both employers and job seekers

Can help with recruitment, retention, training challenges and more!

Board Areas of Focus

Finger Lakes Industry Focus:– Health Care– Advanced Manufacturing– Information Technology– New Science– Skilled Trades– Tourism

Tell us about your neighborhood!

What do we need to know about the Finger Lakes to understand what’s happening here?– People– Economy– Environment– Education

What’s the “story” of Finger Lakes?

Manufacturing in the US

Have lost 5 million manufacturing jobs in the last 30 years

Job loss from increased competitiveness and off-shoring, but also from increased productivity and “lean” manufacturing

Increase in high-skill manufacturing occupations

Skill gaps projected – challenge re. perception of manufacturing industry

Manufacturing in New York

Critically important industry for the state Half of all private-sector jobs in upstate NY

are in manufacturing Wages significantly higher than non-

manufacturing private sector jobs State has lost over 17,000 manufacturing

jobs in last year

NY Manufacturing Employer Challenges

Assembly Republican Manufacturing Task Force held regional meetings with employers and identified challenges around:– Economic Development programs– Taxes– Small Business– Energy– Workforce Development– Investment/ Access to Capital– Worker’s Compensation

Manufacturing in the Finger Lakes

Manufacturing jobs are about 14% of all employment in Finger Lakes – only Retail Trade and Government are higher

Employment declined by 17% between 2000 and 2005 – most of that before 2003

Small declines projected to continue Wide variety of manufacturing going on, a

few key clusters

Employment by Industry

NAICS Industry Finger Lakes New York USA LQ 2004-2010110000 Agriculture, forestry, fishing and hunting 4.9% 0.7% 2.4% 2.06 -6%210000 Mining 0.2% 0.1% 0.5% 0.34 -5%220000 Utilities 0.3% 0.4% 0.3% 0.77 24%230000 Construction 6.0% 4.4% 6.0% 1.00 7%310000 Manufacturing 13.9% 5.9% 8.7% 1.59 -4%420000 Wholesale trade 2.6% 3.7% 3.6% 0.72 12%440000 Retail trade 15.2% 9.9% 11.0% 1.38 12%480000 Transportation and warehousing 2.1% 3.5% 3.6% 0.58 25%510000 Information 1.1% 2.9% 2.1% 0.51 -9%520000 Finance and insurance 2.5% 6.5% 4.7% 0.53 22%530000 Real estate and rental and leasing 2.0% 3.7% 3.7% 0.54 22%540000 Professional and technical services 4.1% 7.6% 6.3% 0.65 13%550000 Management of companies and enterprises 0.7% 1.2% 1.0% 0.67 13%560000 Administrative and waste services 3.0% 5.0% 6.1% 0.50 21%610000 Educational services 2.0% 3.6% 2.0% 0.99 21%620000 Health care and social assistance 10.8% 13.4% 9.9% 1.09 21%710000 Arts, entertainment, and recreation 2.2% 2.7% 2.0% 1.07 8%720000 Accommodation and food services 6.1% 5.6% 6.7% 0.90 13%810000 Other services, except public administration 5.2% 5.6% 5.7% 0.92 15%900000 Government 15.1% 13.6% 13.4% 1.12 15%

Manufacturing Subsectors

NAICS Industry Employment

% of Total Emp LQ

% Change 2000-2005

Projected Growth

2004-2010 Firms Weekly

Wage

311000 Food 2,024 11.9% 1.15 -38% -4% 32 $797

312000 Beverage and tobacco product 1,040 6.1% 4.49 35% 21% 24 $1,097

321000 Wood product 194 1.1% 0.28 10% 9% 19 $550

322000 Paper 455 2.7% 0.80 -43% -11% 14 $774

323000 Printing and related support activities 330 1.9% 0.40 -15% 10% 22 $559

325000 Chemical 653 3.8% 0.63 -45% -31% 13 $791

326000 Plastics and rubber products 2,341 13.8% 2.48 -17% 1% 21 $752

327000 Nonmetallic mineral product 768 4.5% 1.31 -6% 8% 19 $855

332000 Fabricated metal product 1,582 9.3% 0.91 4% 3% 80 $737

333000 Machinery 2,621 15.4% 1.92 -9% -23% 57 $878

334000 Computer and electronic product 1,493 8.8% 0.99 -24% 6% 25 $857

335000 Electrical equipment and appliance 718 4.2% 1.38 13% 8% $965 336000 Transportation equipment 539 3.2% 0.27 13% -67% 9 $647 337000 Furniture and related product 431 2.5% 0.63 -12% 15% 18 $621 339000 Miscellaneous 1,494 8.8% 1.72 -15% 1% 20 $811

Manufacturing Subsectors

Six subsectors “pop” out– Food– Beverage Products– Plastics Products– Fabricated Metal Products– Machinery– Computer & Electronic Products

Criteria: High employment in region, location quotients on par or above national, good wages

Together, these six subsectors represent over 65% of all manufacturing employment in the region

Subsector Employment by County

Food Beverage Plastics Fab Metal Machinery ComputerOntario 23.6% 56.9% 62.0% 41.4% 21.9% 62.8%Seneca 4.8% 15.9% 3.0% 37.5%Wayne 67.7% 31.9% 54.7% 39.6% 35.2%Yates 4.0% 27.0% 6.2% 0.9% 1.0% 2.0%

Firm Sizes

% of Firms % of Employment % of Firms % of EmploymentFood 75% 21% 25% 79%Beverage 83% 21% 17% 79%Plastics 62% 10% 38% 90%Fabricated Metal 86% 43% 14% 57%Machinery 77% 17% 23% 83%Computer & Electronic 60% 17% 40% 83%

Under 50 employees Over 50 employees

Occupational Wage & Education Profiles of Manufacturing Subsectors

See handout Paints a picture of the industries based on

the wage and education levels of the workers in those industries

Can help identify career ladders within and between subsectors

Note: Beverage manufacturing wages are higher than they appear here – limitation of data due to unusual nature the industry in this area

Occupations/ Staffing Patterns

Fifteen occupations with most employment across the six sectors in combination

Occupation Emp

% Growth (04-09)

% Rep (04-09)

Education & Training Needed

Educational Attainment of Workers

Team assemblers 1008 -3% 13% Moderate-term on-the-job HS/SCPackaging and filling machine operators and tenders 402 -5% 10% Short-term on-the-job HSFirst-line supervisors/managers of production and operating workers 376 1% 11% Work experience in related HS/SCInspectors, testers, sorters, samplers, and weighers 344 -3% 13% Moderate-term on-the-job HS/SCMachinists 330 -1% 12% Long-term on-the-job HS/SCLaborers and freight, stock, and material movers, hand 253 6% 16% Short-term on-the-job HS/SCHelpers--Production workers 251 0% 14% Short-term on-the-job HSMaintenance and repair workers, general 226 9% 10% Moderate-term on-the-job HS/SCSales representatives, wholesale and manufacturing, except technical and scientific products 221 7% 13% Moderate-term on-the-job HS/SC/CIndustrial truck and tractor operators 210 1% 10% Short-term on-the-job HSPackers and packagers, hand 209 5% 9% Short-term on-the-job HSMechanical engineers 205 0% 14% Bachelor's degree CElectrical and electronic equipment assemblers 201 0% 15% Short-term on-the-job HS/SCMolding, coremaking, and casting machine setters, operators, and tenders, metal and plastic 176 -5% 17% Moderate-term on-the-job HS/SCIndustrial engineers 168 4% 12% Bachelor's degree SC/C

Skills Most Important for Top Occupations

1. Reading Comprehension

2. Active Listening3. Equipment Selection4. Mathematics5. Quality Control

Analysis6. Operation and Control7. Speaking

8. Coordination9. Time Management10. Operation Monitoring11. Active Learning12. Critical Thinking13. Equipment

Maintenance14. Writing15. Monitoring

Location of Workers

% of County Jobs Occupied by Workers Who Live in the County (all industries)

64.3%

64.1%

74.4%

81.9%

0% 20% 40% 60% 80% 100%

Ontario

Seneca

Wayne

Yates

Source: U.S. Census Bureau

Workers - Education

84% of Finger Lakes population 25 and older have at least a high school diploma (NY state = 79%)

20% have a Bachelor’s degree (NY state = 27%)

Workers - Age

% of the population of working age was 57.9% in 2000 (NY state = 59.6%)

Projected to grow slower than state through 2010, then start to decline

By 2030, down to roughly 50% of population (NY state = 60%)

Workers - Supply

Unemployment rate for 4-county region ranges from 5.4 (Yates) to 6.0 (Wayne) (NY state = 5.2, data for February 2006)

A Labor Availability study was conducted for the nine-county Finger Lakes region– Indicates a pool of 30,900 “underemployed”

workers– Would changes jobs for better pay – median

desired rate of $20.25/hr

Workers - Commuting

50-60% of workers work in the same county where they live, many commute to other counties in the region

37,999 workers leave the 4-county region for work (31.1% of workers who live here)

There is some in-commuting to balance, but the region is a net exporter of workers (-19,850)

Fact-Checking

Does this data look right to you? What does it confirm about manufacturing in

the Finger Lakes? What doesn’t it tell us that we need to know?

The Other Side of the Story

Quantitative vs. Qualitative - data only takes us so far

Need to get a local “on-the-ground” perspective – focus groups

What challenges are you facing? What are your big issues/concerns? What changes are coming?

Focus Group Topics

Focus groups coming in June Topics might include:

– Skill level of workers (production/skilled trades)– Critical and hard-to-fill occupations– Challenges with the pipeline of workers– Relationships with schools, workforce system,

each other– Career ladders

Anything else?

Regional Skills Alliance – A Possible Solution to Challenges?

This meeting, and the focus groups, are to help the board as it investigates forming a Regional Skills Alliance (RSA)

RSAs help employers, educators and the workforce system to collaborate for their mutual benefit

Goals of an RSA

To create a business-driven, business- focused partnership to address workforce needs in specific region, industry

To address worker shortages, skill shortages, training mismatches, and help with possible process improvements

To impact regional policy and economic development planning

Principles

Regional Flexible Collaborative Industry-led Data driven Innovative Network

Roles

Champions Convener Other Important Players

RSA Life Cycle

LAUNCH

CONTINUOUSIMPROVEMENT

IMPLEMENTATION

DESIGN

OUTCOMES

Launch

Needs Assessment Feasibility Study Skills Shortage Mapping Target Sector ID and Selection Initial Convening and Planning

Design

Engagement Strategy Marketing Communication Strategy Sustainability Strategy Futuring/Trend

Analysis Strategy Metrics Evaluation Strategy

Implementation

Key Strategies Development of Tools and Techniques:

– Image Design– Career Ladders / Lattices– Courses and Curriculum– Learning Networks

Continuous Improvement

Evaluation Lessons Learned Case Studies

Outcomes

Employers: Increased pool of skilled labor, higher work quality, reduced turnover

Communities: Leadership and ownership from local industries, new and strengthened partnerships, alignment and leveraging or resources and strategies, short and long-term focus, sustain and replicate initiative

Labor Force: More opportunities to enter and advance within and across employers, higher wages, lower turnover

Outcomes

Leadership /Ownership by Local Industries Building (strengthening) Community Partnerships Long range planning Leveraging of resources New, improved training Building sustainability Career ladder/lattices opportunities Replicability

Focus

Where will it be?– Pipeline: Emerging or Future Workforce– Incumbent Workers– Displaced Workers

Low Income? What will it include?

– Curriculum and Courses– Career Ladders– Policy Innovations– Image ‘making’

Long term/short term?

Next Steps

June – Focus Groups – manufacturing employers, education and training providers, workers (especially skilled trades)

August – November – formation of an advisory committee to lead the launch of the RSA

The Ultimate Goal

Improved situation for manufacturers in the Finger Lakes that produces:– Economic growth– Sought after jobs– Highly skilled workers– Sustainable wages– A positive image for the

industry