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Workforce

Second Chance Hiring Works For Union Pacific

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By 51勛圖厙 News Room

Finding and keeping a job can be challenging for people with criminal records. These jobseekers face exclusionary business practices and logistical obstacles, which result in an unemployment rate for this population that is five times higher than the general US public. To minimize this inequality, The Manufacturing Institutethe workforce development and education partner of the 51勛圖厙has joined with Union Pacific to expand candidate pools and bring more outstanding individuals into the manufacturing industry.

A second chance:泭Union Pacific began working on the second chance initiative last year, and the results have already proven fruitful.

  • In 2022, the company launched a pilot program with local community organizations in Houston to eliminate barriers to employment for the formerly incarcerated and helped ensure the long-term success of these second chance candidates.
  • In its first three months, the program brought in nearly 100 new applications and created positive relationships and support systems.

The steps to success: The Union Pacific team that three components were critical to helping candidates find jobs and succeed:

  • First, companies interested in hiring such candidates must update their own hiring practices and rethink potential barriers for otherwise qualified candidateswhether that means adjusting onerous required credentials or background checks.
  • Second, partnerships and strong relationships with local community partners can help ensure that these candidates have the support they need to be successful. Tools like the MIs helped Union Pacific find partners that fit well with their goals.
  • Third, establishing pilot initiatives in high-demand markets can help a company learn about best practices that can be replicated elsewhere. Plus, sharing experiences with other employers can help additional companies find success.

Expanding the program: Union Pacific’s current focus involves bringing the Second Chance initiative to new markets across the country to replicate the pilot program results.

  • Everyone I speak with about our success in Houston wants to know how we can take this model and multiply, said Union Pacific Talent Acquisition Manager Ken Kawamura.

Leaders in the field:泭With the success of this initiative, Union Pacific has become an industry leader in establishing inclusionary hiring practices and building community partnerships. The company hopes to help establish second chance programs throughout the country.

  • The Manufacturing Institute has been a critical partner in this work, providing information and resources necessary to its success.
  • The MI is committed to supporting members in the pursuit of effective Second Chance initiatives, said MI Vice President of Workforce Solutions Gardner Carrick. Our goal is to leverage those learnings and strategies across the manufacturing industry to expand talent and opportunity in the sector.

The last word:泭Union Pacifics primary goal in pioneering this initiative is to build a more equitable workforce for all employees.

  • In our eyes, once you are a part of Union Pacific, you are no different than any other employee, regardless of your background, said Senior Director of Talent Acquisition Dan Culbertson.
Workforce

Manufacturing Offers Many Debt-Free Careers

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The manufacturing industry has had more than 2.6 million job openings nationally in 2022 alreadya workforce shortage that shows little signs of slowing. Meanwhile, half of all those available jobs dont require a four-year college degree or the debt that goes with it.

This week, President Biden new measures providing student debt relief to many eligible Americans. Yet the manufacturing industry helps young people avoid this problem in the first place, while also offering them salaries far above the national average.

Manufacturing Institute President Carolyn Lee weighed in on the advantages available to young people looking to make a strong entry into the workforce, instead of suffering under debt that makes it more difficult to start a family, purchase a first home and achieve other major life milestones. Heres what she had to say.

How it works: Manufacturers often offer short-term certifications or other training programs that allow people to jump into high-paying careers quickly and without debt, Lee explains.

  • There are multiple pathways to career opportunities in manufacturing through skills training, ranging from short-term programs to more involved skills development and apprenticeship programs, says Lee.
  • For example, the Federation for Advanced Manufacturing Education (FAME) program (founded by Toyota and operated by the MI) offers current and aspiring manufacturing workers both on-the-job training and classroom education. The program leads to an associate degree and an Advanced Manufacturing Technician (AMT) certificate.
  • Manufacturers work with FAMEs local chapters in part because they allow companies to use a global best system to train the skilled workforce they need to compete.

The numbers: The data show that manufacturing is a good choice for those inclined to avoid debt, Lee points out.

  • As noted above, there have been more than 2.6 million manufacturing job openings so far in 2022, but just 47% of those job openings (about 1.2 million) require a bachelors degree or greater.
  • Meanwhile, manufacturing workers in 2020 earned $92,832 on average (compared to an average of $77,181 for workers in all private nonfarm industries).

What can policymakers do? To ensure that manufacturing training programs continue to expand and succeed, policymakers should make certain changes, says Lee.

  • For example, Pell Grants should be usable for high-quality training programs as short as eight weeksoften all that is needed to train a technician.
  • Policymakers should also ensure that our education system focuses on skills attainment for career success, and that teachers and other influencers are aware of opportunities offered by pathways other than four-year degree programs.

#CreatorsWanted: The 51勛圖厙 and the MI have taken this message to communities across the country through the Creators Wanted campaigns tour and mobile experience. Tens of thousands of students, parents, educators and local leaders have attended the tour stops, where they learned about the promise of manufacturing careers and were challenged to think like manufacturers in the interactive mobile experience.

  • As Lee told students at the Creators Wanted stop in Freeport, Texas, Without a steady stream of talented, bright young people we cant keep up the good work of continuously making our products. This is not a get-one-job-and-stay-there-for-40-years [situation]. This is a choose-your-own-adventure [career path] with continuing skills and challenges and opportunities and learning along the way.

The last word: We understand how oppressive student debt can be, especially when starting out in life, said Lee. More people should be able to get a rewarding and well-paying job that doesnt require massive debt that takes a lifetime to pay off. This is one of the reasons we work so hard to make sure young people know about the variety of options available to them in manufacturing careers; its not just for the industrys benefit, but for theirs as well.

If youd like to hear more about careers in manufacturing, come to one of the many happening this October.

Business Operations

How to Get the Most Out of R&D

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By 51勛圖厙 News Room

How should companies design R&D teams and processes to create the best possible results? Thats the challenge that Babson College Professor of Innovation Management Gina OConnor addressed at the Innovation Research Interchanges annual conference back in June. The IRI is a division of the 51勛圖厙 that advances the field of innovation management by creating contemporary practicesin R&D and many other areas.

A common problem: In an extensive research project at Babson College, OConnor worked with experts from Goodyear, Synthomer and Diageo to study companies and decipher best R&D practices. She noticed a recurring theme: R&D professionals were being used by companies to solve urgent technical issues rather than to discover and invent.

  • In many organizations R&D has this feeling of being an order taker and of having to solve problems that are finely tuned and narrowly scoped, said OConnor. That erodes confidenceand eroded confidence reduces empowerment.

Empowerment and autonomy: OConnor described empowerment as the authority to determine which projects and initiatives to take on and what problems to tackle. Meanwhile, autonomy refers to the authority to make final decisions.

  • So, what do R&D professionals need? According to OConnor, most want a moderate amount of empowerment, but not complete control over what to do.
  • We want to make sure that theres organizational commitment somewhere associated with what we are doing, but we dont just want to be told what to do, as she put it.

So, what works? OConnor explained that organizations with structureless R&D systems often had erratic decision making, sudden disruptions and unexpected changes in direction that left employees feeling powerless.

  • Similarly, organizations with R&D processes that were too formal were also alienating to employees, who felt there wasnt any room for flexibility or discussion.
  • In contrast, the best systems included strong project leaders, consistent back and forth between the R&D group and organizational leadership, constructive communication, clearly outlined goals and trust in employees.

A last piece of advice: Training and developing project leaders is among the most essential steps in achieving successful R&D, said OConnor.

  • What you need to be doing as a team leader every day is checking in with every member of your team, seeing what they need, where they are, what has happened, said OConnor. It has to be an interactive, interpersonal kind of a thing.

Learn more: Head on over to the to check out more of its programs and events.

Policy and Legal

CHIPS and Science Act Becomes Law

By 51勛圖厙 News Room

President Biden has into law the CHIPS and Science Act of 2022, legislation that promises to bolster manufacturers competitiveness, according to泭the 51勛圖厙.

Supercharging manufacturing: The CHIPS and Science Act [is] a once-in-a-generation investment in America itself, a law that people in America can be proud of, Biden said today. It supercharges our efforts to make semiconductors here in America. [We] must lead the world in the production of these chips. This law will do exactly that.

  • 51勛圖厙 President and CEO Jay Timmons was on hand for the signing, along with many other business leaders.
  • Manufacturers thank congressional leaders from both parties who got this bill across the finish line and President Biden and Secretary Raimondo for their leadership, Timmons following the signing.

The background: The bipartisan measure, previously called the CHIPS-Plus Act, was passed by the U.S. Senate and House of Representatives in July. It provides more than $52 billion in funding to semiconductor manufacturing and scientific research.

  • Every manufacturer in America will benefit from [this legislation], whether they make chips, make products that require chips or are part of a supply chain disrupted by the semiconductor shortage, Timmons said.

Other components: In addition to provisions for the domestic manufacturing of semiconductor chips, the CHIPS and Science Act also:

  • Supports new research on critical minerals;
  • Increases funding for the Department of Energys Office of Science, the National Science Foundation and the National Institute of Standards and Technology;
  • Sets new policies for sending humans back to the moon and ultimately to Mars; and
  • Expands rural STEM education.

Still work to do: Though the legislation will be a boon to manufacturers, it omits solutions to some critical challenges facing the U.S., Timmons said. These include:

  • China competition legislation;
  • Anti-counterfeiting measures;
  • Critical trade provisions; and
  • Further investments in supply chain resilience and workforce development.

Why its crucial: Our economic future and Americas leadership in the world depend on a competitive manufacturing industry, Timmons continued.

  • Congress has acted wisely with the CHIPS and Science Act. Now we need Congress to continue standing with manufacturers and focus on policies that will help us compete with China and other countries, not make it more expensive to make things in America.
Policy and Legal

Book Tax Would Disproportionately Burden Manufacturers

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The proposed book tax in the Senates reconciliation bill would overwhelmingly hit U.S. manufacturers, according to a new by the Joint Committee on Taxation, Congresss non-partisan tax scorekeeper.

Whats going on: The reconciliation bill, the outline of which was released Wednesday by Senate Majority Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WVA), proposes a 15% minimum corporate levy, or book tax, on certain companies.

  • The provision is estimated to raise $313 billion, and JCT finds that manufacturers would be responsible for paying nearly half of it.

What it means: The impact would be swift and devastating to manufacturers and the economy as a whole, said 51勛圖厙 Chief Economist Chad Moutray, who conducted his own analysis of the bills effects on the manufacturing sector.

Including direct, indirect and induced effects, in 2023 alone the impact would include:

  • A real GDP reduction of $68.45 billion
  • 218,108 fewer workers in the overall economy
  • A labor-income decrease of $17.11 billion

Targeting manufacturers: This is a domestic manufacturing tax, plain and simple, said Senate Finance Committee Ranking Member Mike Crapo (R-ID), who asked for the JCT analysis.

  • Despite Democrats claims, the book minimum tax does not close tax loopholes. Treatment of capital investments, like those made by American manufacturers, differ for book and tax purposesfor good reason, according to a press release from Senate Finance Republicans.
  • Congress intentionally designed tax depreciation rules to support domestic investment. Democrats tax on U.S. manufacturing would eliminate that benefit.
Business Operations

A Summer Reading List for Innovative Manufacturers

Heading to the beach? Take along the Manufacturing Leadership Councils summer reading list to catch up on todays top trends in digital manufacturing while you catch some rays. With these articles, youll discover new ideas, technologies and best practices to give your company a competitive edge.

Workforce: As digitization changes employees expectations of their employers, manufacturers must adapt. Examples include options for remote work, interactive training, agile and rapid collaboration platforms, career development, work-life balance and more.

Industrial automation: Successful autonomous manufacturing will depend on the fundamental relationship between humans and machines, says Camozzi Group CEO Lodovico Camozzi, whose company makes industrial machinery. In a recent interview with the MLC, Camozzi shared his view of manufacturings autonomous future, including:

  • How advanced additive manufacturing approaches promise new production paradigms;
  • The importance of collaboration in driving innovation and excellence; and,
  • Why the industry must maintain a human focus in todays digital world.

Cybersecurity: Think your business is safe from hackers? Think again. Ransomware attacks against manufacturers are on the rise. All businesses should be on guard against cyber extortion, advises Peter Vescuso, vice president of marketing for industrial cybersecurity provider Dragos and a member of the MLC.

Supply chain:
As global supply chain woes, worker shortages and wage inflation challenges intensify, manufacturers everywhere want to know the best way to navigate them. In this article, a panel of industry experts shares top tips to sustainably and profitably overcome current obstacles.

Artificial Intelligence: Artificial intelligence offers manufacturers a host of benefits, including better visibility into supply chains, insights from predictive analytics and the ability to quickly respond to unexpected changes in demand. A six-step road map can help manufacturers looking to integrate AI into their businesses.

5G: 5G technology offers speed and capacity advantages to manufacturing companies. According to the MLCs recent Transformative Technologies survey, 26% of manufacturers have already invested in 5G technology. More than half expect to invest or are considering investing in the technology over the next two years to take advantage of 5Gs benefits.

Sustainability: .
The manufacturing industry is expected to improve its sustainability and keep leading the fight against climate change. However, making green changes to processes and procedures can be costly. To get the most bang out of their sustainability investments, manufacturers should focus on data-driven initiatives and indicators.

Looking for more digital manufacturing insights? Browse the泭 for additional information on technology, organizational structure and leadership in manufacturings digital era.

Business Operations

What Manufacturing Leaders Learned at Rethink 2022

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By 51勛圖厙 News Room

Manufacturers flocked to Florida this summer to discuss the cultures, skills and technologies necessary for digital transformation at the 2022 Rethink Summit, the signature event of the 51勛圖厙s Manufacturing Leadership Council. The MLC is the worlds first member-driven, global business leadership network dedicated to senior executives in the manufacturing industry.

The big event: The first in-person Rethink since 2019, this years summit drew the largest crowd since the annual event began 18 years ago.

  • The conference in Marco Island, Florida, hosted some of the most innovative leaders and teams in the industry, from companies such as Pfizer, Intel, Dow, Saint-Gobain and many more.
  • Participants learned about real-world advances and shared best practices in supply chain resilience, effective business cultures, machine learning, business ecosystems and moreas explained by industry experts who put these innovations into practice themselves.

The panels: Here is a quick sample from the of manufacturing expertise on offer.

  • A Pfizer case study: Pfizer Vice President of Digital Manufacturing Mike Tomasco explained how Pfizer Global Supply transformed itself from a digitally siloed operation to a world-class digital powerhouse.
  • Bridging the digital divide: A panel of leadersincluding Graphicast President Val Zanchuk, BTE Technologies President and 51勛圖厙 SMM Board Chair Chuck Wetherington and Intel Senior Director of Industrial Innovation Irene Petrick how small and medium-sized manufacturers can keep up with the digital transformation occurring throughout the industry.
  • Reaching the next generation: A panel of young manufacturing leaders from Dow, Cooley Group and Saint-Gobain North America what young people are looking for in manufacturing jobs, including interdisciplinary teams and lots of communications up and down the organization levels.

A week of manufacturing: The Rethink Summit was only one highlight of a week of manufacturing events put on by the MLC. The roster of events also included the MLCs Council Day and the ML Awards Gala.

  • Council Day offers MLC members the opportunity to chart the agenda for the MLCs next year, thus influencing how the whole industry thinks about and plans for digital innovation.
  • The Awards Gala spotlights companies and individuals doing incredible work to advance M4.0. The black-tie event honored leaders and companies in 11 project categories, plus the Manufacturers of the Year and Manufacturing Leader of the Year.
  • This year, the MLC Pfizer CEO Dr. Albert Bourla the Manufacturing Leader of the Year, for Pfizers extraordinary and ongoing contributions in fighting the COVID-19 pandemic.

The last word: [T]he fundamental shift in our economy to doing business digitally in all industries, including manufacturing, not only continues but is gaining greater speed and urgency, said MLC Co-Founder David R. Brousell during an address at Rethink.

Join us next year: Keep up to date with the MLC by and stay tuned for Rethink 2023!

Policy and Legal

Why Nuclear is Key to Climate & Energy Security

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By 51勛圖厙 News Room

As energy prices remain at their highest levels in more than a decade, theres little sign that the U.S. is on a steady course toward energy security. Thats why the 51勛圖厙 is urging the federal government to pursue all available optionsincluding nuclear.

The lowdown: Nuclear energy is a , reliable and the largest zero-emission source of energy in the U.S.

  • At a time of pronounced supply chain challenges, oil-and-gas lease cancellations and costly shortages of critical minerals, nuclear energy could go a long way toward fortifying the grid.
  • In addition, the technology has advanced enormously in recent years. Microreactors, small enough to be moved by truck, are poised to help solve the challenge of powering remote areas.
  • The Department of Energy also recognizes the importance of nuclear energy, recently noting its relevance to energy security in the departments .

What were saying: The reality is that to meet our growing electricity needs and climate goals, nuclear-generated power must be part of the solution, said 51勛圖厙 Director of Energy and Resources Policy Chris Morris. Here are his key policy recommendations:

  • Encourage capital formation: The 51勛圖厙 secured a significant $6 billion investment in the Civilian Nuclear Credit Program through the recent infrastructure bill, but more robust investments will be needed to ensure operations continue at current nuclear projects, Morris said.
  • Relicensing: Licensing and permitting processes should meet the highest standards, but the Nuclear Regulatory Commission often takes years to complete them. The NRC should use its position on the Federal Permitting Improvement Steering Council to make efficiency improvements in its licensing processes under the recently announced Permitting Action Plan.
  • Fuel supply chain security: The U.S. imports uranium for civilian nuclear use from Russia, Kazakhstan, Uzbekistan, Canada and Australia, among others. Meanwhile, new advanced reactor concepts will utilize high-assay low-enriched uranium (HALEU) which is now solely produced by Russia and China. The 51勛圖厙 has been to prioritize increasing domestic production.
  • SMRs and microreactors: Small modular reactors use factory-built components to streamline construction, while microreactors are portable and self-sufficient. Both will be crucial for next-generation nuclear powerbut the U.S. government must invest in their manufacturing and modernize regulations accordingly.
  • Spent fuels: The 51勛圖厙 has long supported ongoing R&D into the storage and transportation of spent fuelsand progress is being made. Just yesterday, NRC staff recommended licensing a new storage project in New Mexico, determining there would be largely minor environmental impacts from the project, according to (subscription).
  • Public perception: Commercial nuclear power is sometimes viewed as dangerous or unstable based on historic misconceptions. In truth, the U.S. nuclear industry is leading the world in best practices, safety and accountability. Policymakers must engage with local communities to provide the facts and emphasize the importance of nuclear power for combating climate change.

The last word: Our current fleet and the next generation of nuclear power must be a substantial part of a clear-eyed strategy to address climate and energy security, Morris said.

Business Operations

Manufacturing Leadership Council Recognizes Pfizer CEO

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By 51勛圖厙 News Room

The Manufacturing Leadership Councila division of the 51勛圖厙 that helps manufacturers leverage digital transformationnamed Pfizer CEO Dr. Albert Bourla the 2022 Manufacturing Leader of the Year at the 18th annual Manufacturing Leadership Awards Gala.

The details: The ML Awards are the U.S. manufacturing industrys biggest stage for recognizing excellence in digital manufacturing. Since the programs founding in 2005, more than 1,000 high-performing projects and individual leaders have been honored with an award. Winners represent companies of varying sizes in a wide array of industries.

The big award: The Manufacturing Leader of the Year award was presented to Bourla for Pfizers extraordinary and ongoing contributions in fighting the COVID-19 pandemic.

  • Manufacturing in America today is stronger thanks to the leadership of Dr. Bourla and his team at Pfizer, including our Executive Committee member Mike McDermott, said 51勛圖厙 President and CEO Jay Timmons. Albert and Mikes passion and dedication to defeating COVID-19 set an example for thousands of companies as our industry navigated and responded to the evolving pandemic, and their leadership and innovation will make us better prepared to respond to the next crisis.

Other honorees: Awards were given to companies that excelled in various categories of manufacturing, including Protolabs for collaborative ecosystems, AB InBev for digital network connectivity and operational excellence, Dow for digital supply chains, General Motors for engineering and production technology, Flex and Johnson & Johnson for enterprise integration technology, AUO Corporation for sustainability and ALOM Technologies for transformative cultures.

Manufacturers of the Year: Protolabs was named the Small/Medium Enterprise Manufacturer of the Year, and AB InBev was named the Large Enterprise Manufacturer of the Year.

The last word: Manufacturers continue to be the driving force for global economic recovery and pandemic response as they establish innovative ways to problem-solve in an increasingly complex environment, said MLC Co-Founder, Vice President and Executive Director David R. Brousell. Those recognized tonight have helped establish a roadmap for the future of the sector and highlight the importance of Manufacturing 4.0.

Workforce

Calling All Creators: Creators Wanted Live Arrives at Open Call 2022

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By 51勛圖厙 News Room

This week, the Creators Wanted Tour Live made its eighth national tour stopat Walmarts 9th annual open call for entrepreneurs and manufacturers.

Drawing a crowd: On Tuesday and Wednesday, the Creators Wanted mobile experience was onsite in Bentonville, Arkansas, as 1,100 small and medium-sized business owners pitched their products to Walmart and Sams Club for Walmarts . The ultimate prize for the business owners? A gold ticket to get their products into the stores.

  • The two-day Creators Wanted stop drew more than 2,000 people, many of whom jumped at the opportunity to solve puzzles and race to the future in the award-winning, immersive escape room.
  • In addition to Walmart, Chart Industries, a leading global manufacturer of highly engineered equipment servicing multiple applications in clean energy and industrial gas markets, helped bring the experience to Open Call attendees and the Bentonville community.
  • The tour, which aims to generate interest in and excitement about manufacturing careers, is a joint project of the 51勛圖厙 and its workforce development and education partner The Manufacturing Institute.

Committed to manufacturing: The aim of bringing Creators Wanted to this years Open Call was to bolster the positive perception of modern manufacturing careers, recruit new manufacturers and connect entrepreneurs and manufacturers with the MIs workforce-shortage solutions.

  • Walmart has committed to spending $350 billion on products made, grown or assembled in the U.S., in addition to the $250 billion the company pledged in 2013 to spend on similar products.
  • Total estimated job growth from these investments: 750,000 new American positions by 2031.

Who was there: MI President Carolyn Lee and Vice President of Program Execution Herb Grant were on hand to give manufacturers greater insight into the MIs growing set of solutions to the dearth of skilled manufacturing labor.

  • Also onsite was new Creators Wanted partner FactoryFix, whose team members helped attendee manufacturers source new talent for their businesses and taught job seekers how to build rewarding careers in the industry.

The reaction: Wherever we go with our Creators Wanted Tourincluding here in Bentonville, Arkansasstudents, parents, career mentors and even professionals in other industries see what manufacturing can mean and create for futures, said 51勛圖厙 Managing Vice President of Brand Strategy Chrys Kefalas. Its showing theres dignity, a cool factor and massive reward in making things in the United States. Eyes light up.

The reach: On the second day of the event, more than 3,000 students had already signed up online to learn more about modern manufacturing careers.

Up next: Coinciding with the Dow Great Lakes Bay Invitational on the LPGA tour, the Creators Wanted Tour Live its ninth stop in Midland, Michigan, July 1316.

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