LETTER FROM THE PUBLISHER

Most See Manufacturing as Vital to the Nation’s Economic Health

By: CHARLOTTE WEBER
Issue: Fall 2009

In the view of most Americans, manufacturing is the key industry necessary to achieving and maintaining America’s economic prosperity, overshadowing the technology, energy, health care, financial services, retailing and communications industries.

That’s the crux of a recent survey conducted for Deloitte LLP and The Manufacturing Institute. At the same time, the study shows a wide perception gap between the respondents’ positive views of manufacturing’s contributions to the nation’s economic success and their negative views of career opportunities in manufacturing.

The survey, Public Viewpoint on Manufacturing, which examined a wide range of issues related to manufacturing, shows the majority of the respondents – 71 percent – see manufacturing as a national priority. And 59 percent agree that the U.S. manufacturing industry effectively competes on a global scale.

“The public’s ranking of manufacturing as the top industry of importance to our economy, as well as its belief that U.S. manufacturers can compete globally, is very telling,” said Craig Giffi, Deloitte LLP vice chairman. “Americans clearly still believe that manufacturing remains the backbone of the economy.”

Closer to the heart of the matter, most of the respondents – 81 percent— agreed that America’s manufacturing industries have a significant impact on their standard of living. Sixty-eight percent found those industries to have a strong bearing on national security. Asked what industry they would most want to have creating 1,000 jobs in the community, the respondents listed manufacturing as their top choice, followed by technology, energy, health care, retailing, communications and financial institutions.

And yet, even though Americans see manufacturing as the most important industry for a strong national defense, the study indicates they’re not pursuing manufacturing careers. Just 17 percent listed manufacturing as among their top two industry choices in which to start a career – and only 30 percent of parents said they would encourage their children to pursue jobs in manufacturing.

“These are jobs Americans want for their friends and neighbors – but not for themselves or their family members,” Giffi said. “America’s belief that manufacturing jobs are not clean, safe or interesting may have been accurate at one time, but it’s no longer the case.”

“This survey sheds light on a massive disconnect we are facing in manufacturing,” said Emily DeRocco, president of The Manufacturing Institute. “People have an outdated image of manufacturing and the career opportunities available. Cutting-edge technology has transformed manufacturing in ways that are hard to imagine if you haven’t visited a factory lately. Jobs now require post-secondary education, skills certification and credentials across a broad range of high-quality, middle class career paths. The reality is that manufacturers offer high-paying jobs and rewarding careeers for American working men and women. Our job is to close the gap between perception and reality, which will help fuel the industry’s growth and prosperity.”

Those responding to the survey agreed. Seventy-seven percent believe that the United States needs a more strategic approach to develop its manufacturing base and 74 percent said the United States should invest more in manufacturing industries.

Many of those surveyed believe manufacturing in this country is disadvantaged in the areas of corporate tax policies (46 percent), trade policies (45 percent) and general government business policies (45 percent). And they are certain about what gives the United States the upper hand. The public sees technology use and availability (77 percent), skilled workers (74 percent) and energy availability (72 percent) as resources that give America its competitive edge.

Here at the Robert C. Byrd Institute for Advanced Flexible Manufacturing (RCBI), we found particularly interesting the responses from the 18-24 age group. While 71 percent indicated they believed manufacturing important to our economic prosperity, they trailed older respondents significantly in that belief. In answer to the question of whether the United States should invest further in the manufacturing industry, only 57 percent in the 18-24 age group responded affirmatively, trailing older age groups by a wide margin.

And younger Americans are less likely to consider the manufacturing industry as high-tech – 59 percent – again well behind the numbers posted by their elders. On the other hand, “Baby Boomers” and retirees (66 percent and 74 percent, respectively) are most likely to think manufacturing requires educated, highly skilled workers, far more than the younger groups surveyed.

Are manufacturing jobs clean and safe? Only 33 percent of all respondents answered affirmatively, underlining one of manufacturing’s major perception problems. Only 20 percent of the 18-24 age group believed it so. And only three out of 10 Americans say they want their children to pursue a career in manufacturing. Only 17 percent believe their school systems encourage students to pursue manufacturing careers.

Granted, these are a lot of figures to be tossing around, but they’re of great importance to RCBI and the work we’re doing in West Virginia and across the region. One of our major roles is to emphasize the importance of manufacturing to our region and the vast array of opportunities it offers. Another is to prepare people, particularly in that critical 18-24 age group, for careers in manufacturing.

We’re gratified by the success we’ve had with our many education and training programs.

RCBI has graduated more than 250 individuals from the nationally recognized and nationally certified Machinist Technology Program. In the course of their studies each also has earned certifications by the National Institute for Metalworking Skills (NIMS) and many have earned Associate degrees from community and technical colleges with which we are affiliated. RCBI’s job placement rate exceeds 90 percent.

Entrepreneurs have left RCBI training centers and opened new businesses in the region with investments totaling nearly $22 million. Last year alone, the private manufacturing sector acquired 16 new pieces of computer-controlled production equipment valued in excess of more than $1.8 million.

Operating out of Advanced Manufacturing Technology Centers in Huntington, Charleston, Bridgeport and Rocket Center, along with our Composites Technology & Training Center in Bridgeport, our educational and training programs span West Virginia, Virginia, Kentucky, Ohio, Pennsylvania and Maryland. Moreover, we have provided training programs to manufacturers in 17 states, including some as distant as California and Florida.

We offer advanced training in CNC (computernumerical-control) machining to both groups and individuals, in addition to providing one-on-one training on specific pieces of advanced high-tech equipment.

That equipment, much of it quite expensive, is made available to our region’s manufacturers on a leased- time basis, and we train their employees how to use it. In many instances, manufacturers have “tried out” the equipment with us, then have decided to purchase similar machinery of their own.

Our educational mission goes far beyond training classes, however. We need to make the residents of this region aware that there are jobs – good, well-paying jobs – available in manufacturing.

There’s lots of economic news around these days, some of it bad, some good. Do you feel like you’re on a rollercoaster? If so, you’ve got plenty of company.

This issue of Capacity attempts to look behind the headlines and the hype to offer an honest assessment of the current economic situation. We examine what’s being done in Washington and in Charleston to assist embattled business and industry. We explore some timely questions: What more does the business community believe we should be doing? How does the current recession compare to the Great Depression and other recent recessions? And, finally, are there perhaps promising opportunities to be found amid the current gloom and doom?

As always we welcome your comments and suggestions. You may e-mail us at Capacity@rcbi.org.

Director of the Robert C. Byrd Institute for Advanced Flexible Manufacturing

Other Article By This Author