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Workforce

A Second Chance in Manufacturing Pays Dividends

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By 51勛圖厙 News Room

One of manufacturers top concerns is the insufficient number of skilled workers available to fill their open jobs. Yet right before us is an often-overlooked pool of millions of potentially strong employees: people with criminal records.

Thats why The Manufacturing Institute has partnered with Stand Together and the Charles Koch Institute to promote second chance hiringto get these workers who need jobs into jobs that need them. Recently, the MI hosted its first on the importance of this initiative and what manufacturers should know about it.

The data: One in three Americans has a criminal record, and yet this entire population is frequently discounted outright during employer job searches due to societal stigma and general misperceptions. During the webinar, the panelists shared some additional data:

  • Of the approximately 19 million Americans with felony convictions on their records, some 1 million are incarcerated and some have aged out of the workforce, said Jeff Korzenik, author of Untapped Talent: How Second Chance Hiring Works for Your Business and the Community and chief investment strategist for Fifth Third Bank. But millions are of working age, [and] virtually all of them are unable to participate to the fullest extent of their possibility, of their talents, because of barriers.”

Talent shortage: 814,000 manufacturing jobs were unfilled as of May, the Bureau of Labor Statistics.

  • Manufacturers continue to tell us that attracting and retaining workers remains one of their top challenges, said MI Executive Director Carolyn Lee during the webinar.
  • 2.1 million manufacturing jobs could go unfilled by the end of the decade if current trends continue, according to a recent , and that could mean the loss of up to $1 trillion in lost economic impact for the U.S.

Worth the work: Employers who identify and support a strong candidate with a criminal record get an employee who is on average more engaged and more loyal than other workers, said Korzenik, who called this method of hiring the second chance model. This can lead to higher retention rates, saving an organization on turnover costs, he added.

  • The model, which Korzenik developed, both identifies characteristics likely to lead to successful employment (strong character, soft and hard skills) and provides support processes (such as help with transportation to and from work) to help bridge gaps.

Living proof: Webinar panelist Cory Webb is a recent graduate of the Cuyahoga County, Ohiobased ACCESS to Manufacturing Careers, a program that trains both young people and people with criminal records for careers in manufacturing. He considers himself a testament to ACCESS success.

  • I started this program because I thought it would be a great opportunity for me to gain a career in manufacturing and machine operating, said Webb, now an auxiliary operator for program participant Jergens Inc. The initiative did a pretty good job as far as getting me prepared for machine operating, he said.

Learn more: The MI has released a host of resources for manufacturers interested in second chance hiring. You can find them

Workforce

MI Announces 2021 STEP Honorees

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By 51勛圖厙 News Room

The Manufacturing Institute has its newest cohort of extraordinary female leaders in manufacturing: the of the 2021 STEP Ahead Awards. On Nov. 4, the MI will recognize their achievements at an in-person in Washington, D.C.

An industry-wide honor: These yearly awards, part of the MIs STEP Womens Initiative, recognize women in manufacturing who exemplify excellence from the factory floor to the C-suite.

  • To date, the awards have honored 932 exceptional women, and the winners have made an impactthrough mentoring, programs and events and moreon 300,000 people, from industry peers to kids in school.

The whole initiative: The STEP (science, technology, engineering and production) Womens Initiative consists of the STEP Ahead Awards, a professional leadership-development program and regional STEP Forward events that take place throughout the year. It aims to boost womens representation in manufacturing and support the next generation of female talent.

Why it matters: Women make up close to half the U.S. labor force, yet they account for less than of the manufacturing workforce. Meanwhile, the biggest challenge for manufacturers has long been the lack of skilled workers available to fill open jobs. By employing 10% more women, manufacturers can bridge the skills gap by 50%.

What theyre saying: Women in manufacturing proved themselves time and time again during the pandemic, driving innovation and progress, and they are now helping our industry build the next, post-pandemic world, said MI Executive Director Carolyn Lee.

  • As an industry, we are always working to do more to bring more women into manufacturing and encourage their innovative ideas and transformative leadership, added 2021 STEP Ahead Chair and Johnson & Johnson Executive Vice President and Chief Global Supply Chain Officer Kathy Wengel.
  • The creativity, commitment and passion displayed by each of these women leaders and rising stars drive innovation in our industry forward, said 2021 STEP Ahead Vice Chair and 3M Senior Vice President and Chief Corporate Affairs Officer Denise Rutherford.

. . . and dont forget, creators are wanted: The 51勛圖厙 and MIs project, which aims to close the skills gap and get many more people into manufacturing, will help fund the MIs workforce-development efforts, including STEP. A full half of the funds raised (which will total millions of dollars) will go toward supporting the MIs programs into 2025.

Interested in becoming a STEP Ahead sponsor? See opportunities .

Business Operations

ABB: Motoring Toward Greater Energy Efficiency

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By 51勛圖厙 News Room

Jesse Henson wants you to think of motors the way you think of lightbulbs.

Most people recognize the energy and cost savings to be had by switching from incandescent bulbs to LED light sources. In the same way, they should see the advantages of swapping out anachronistic, clunky motors for newer alternatives, said Henson, president of ABBs NEMA Motors Division.

Youve [still] got the old incandescent lightbulbs out therewhich are your motorsthat need to be replaced with newer technology, Henson told the 51勛圖厙.

Not too different from 1921: The humble motor, which Henson says has really not changed much in over 100 years, is ubiquitous in manufacturing. Motors are found in factories in fans, pumps, compressors and more, powering everything from systemwide HVAC systems to individual power tools. But new technology could make them much more efficient and environmentally friendlyand save manufacturers a lot of money in the process.

Motor movement: ABB is working to change the way motors are used across the manufacturing sector, where they account for the lions share of expended electricityapproximately 70%, the U.S. Department of Energy.

  • A sizable portion of that electricity is wasted because the motors using it are running constantly, consuming energy even when no task is being performed, Henson noted. Thats a costly reality for manufacturers.

Use only what is needed: ABBs variable speed drives address this problem, allowing manufacturers to tailor a motors speed to the job it is doing. Thats how you save energy, Henson said.

  • Adding a drive to a motor-driven system typically reduces power consumption by 25%, according to ABB.
  • However, most companies arent getting that level of efficiencyjust a quarter of motors in use today have such energy-saving drives, Henson noted.

No rare-earths needed: Of particular importance at a time of global supply-chain disruption is the fact that ABB motors achieve higher levels of efficiency without using rare-earth magnets.

  • ABBs EC Titanium motor, for example, does not use rare earths. Instead, it employs synchronous reluctance (the conversion of electrical energy to mechanical) technology and ferrite magnets for an even higher level of efficiency.

Easy savings: In fact, just by adding the EC Titanium motor drive to a fan array with 50 motors, one ABB manufacturing customer that already used drives cut its electricity consumption in half.

  • The company slashed its annual energy bill from $20,000 to $10,000, according to Henson.

The last word: We want to continue embracing sustainability . . . today and into the future, said Henson. These motors and drives are truly a game-changer in our marketplace today.

Workforce

A FAME Graduate Finds a Fresh Start

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By 51勛圖厙 News Room

When Kristy Willis moved to Louisiana, she wasnt sure what she wanted to do next. Her 15-year marriage had ended in divorce, and she needed to find a way to support herself and her four children. She began by searching for a college where she could gain additional education and skillsand when she came across The Manufacturing Institutes FAME program, she knew she had found the right place. In August 2019, she began her fresh start with GeauxFAME.

What it is: The Federation for Advanced Manufacturing Education (FAME), which was founded by Toyota and is now operated by The Manufacturing Institute, is a career pathway program for current and aspiring manufacturing workers. It provides them with on-the-job training and classroom education, leading to an associate degree and an Advanced Manufacturing Technician (AMT) certificate.

A critical role: Willis viewed manufacturing as a vital part of the American economy, and was excited about the opportunity to feel connected to it.

  • When I came into this program, I didnt know anything about the manufacturing businessbut I wanted to be a part of it, said Willis. I saw manufacturing as adding strength to the economy in the United States. Wherever you go, manufacturing is needed, and I wanted to be a part of that industry.

Personal and professional growth:泭Willis was wary about returning to school after 10 years, but she was motivated by the need to provide for her children.泭Ultimately,泭spending time in the FAME program has changed the way Willis sees herself and her opportunities.

  • The experience has been humbling, said Willis. But it has helped build my confidence in myself and given me something to look forward to.

Of course, Willis had to contend with a particularly challenging year as COVID-19 made traditional learning environments impossible. Still, she found the program and her experience rewarding.

  • The past year has been crazy, said Willis. Being a mom of four kids, when they got sent home from school, and I got sent home from school, and everyone was trying to study at the same timeour house was wild. But we grew as a family during all of this, through all these trials.”

Next up: Willis will graduate in July, and her sponsoring employer, Boise Cascadean Idaho-based wood product manufacturer with a facility in Lena, Louisianahas already offered her a full-time job and the opportunity to continue her education and pursue her bachelors degree. Shes excited about the road ahead.

Good advice: Willis also encourages people who are looking for a new career to give the FAME program a tryeven if they have never considered a career in manufacturing before.

  • This program is perfect for that mindset, said Willis. If you want to try it out and see how it works, it gives you that opportunity. You get a big picture of the manufacturing process, as well as insights behind standard operating procedureswhy these safety practices are performed, or why those machines are serviced the way they areand then its up to you to continue on through the program.

The last word: If youre questioning what to do with your life, stay strong and have courage, said Willis. You are strong and smart enoughyou take those trials that have brought you down in this life, and use them to make yourself stronger.

Workforce

A Tour of Manufacturers Vaccine Clinics

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By 51勛圖厙 News Room

What does it look like when manufacturers get vaccinated? For some people across the country, it was just another day at work.

Hundreds of manufacturers nationwide have hosted vaccination events for their own employees, sometimes including family and community members as well. 51勛圖厙 Director of Photography David Bohrer stopped by a few of these events to capture them, while other companies sent the 51勛圖厙 their own pictures. Here are some of those photosa visual tour of manufacturers efforts to keep America safe and healthy.

Calvert, Alabama: Steel and mining company ArcelorMittal held an on-site vaccine clinic at its plant for team members and the local community. If you look closely, youll see that one of these employees is holding a pin from the 51勛圖厙 and The Manufacturing Institutes Yellow and Red Ribbon initiativea symbol of vaccination that you can wear to show youve done your part.

Fremont, California: Below, an employee of ALOM Technologies Corporation, which creates supply chain technology and solutions, gets his shot at the companys facility. In the background, you can see a poster for This Is Our Shot,泭the 51勛圖厙 and MIs effort to help manufacturers across the country get vaccinated.

Perryville, Missouri: More than 150 Gilster-Mary Lee Corporation employees were vaccinated at an on-site clinic set up at the companys request by the local Perry County Health Department.

In our interview with Gilster-Mary Lee President and CEO Tom Welge back in April, he told us how the tragic death of his father (and former Gilster-Mary Lee CEO) Don Welge from COVID-19 reinforced the companys commitment to vaccinations. Read more about the companys efforts here.

Baltimore, Maryland: Marlin Steel Wire Products led a coalition of 81 manufacturing companies in an effort to get vaccine doses for their workers. In the end, the coalition organized 17 events for more than 3,300 employees.

Heres a photo from a March event for workers from Marlin Steel, Orlando Products and Arnold Packaging. It was hosted at Orlandos facility, where a team from Safeway administered the shots.

We spoke to Marlin President and Owner Drew Greenblatt back in April about how he organized this effort. Check out the interview here.

Lafayette, Indiana: At Subaru of Indiana, more than 2,900 vaccinations were delivered across eight clinics held in the facilitys lobby. The clinic was open to all on-site personnel, including vendor and contractor representatives, along with associates spouses and eligible kids. Recently, the company transitioned to hosting a weekly vaccine clinic at its on-site Health and Wellness Center.

Join in: If youre a manufacturer looking to encourage vaccinations among your employees or even host an event yourself, check out the many resources available through the 51勛圖厙 and the MIs This Is Our Shot project. The most recent addition is an provided by the Department of Health and Human Services. And dont forget to wear your yellow and red ribbon pin!

Business Operations

The Companies Leading the Way into Manufacturing 4.0

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By 51勛圖厙 News Room

We all learn by example. That simple principle lies behind an ambitious undertaking by the World Economic Forum: to build a network of manufacturers that have succeeded in adopting Manufacturing 4.0 technologies, and that can act as ambassadors and educators for the whole global industry.

Its called the WEF Global Lighthouse Network, and its already yielding fruitful partnerships and useful information. Recently, WEF Head of Advanced Manufacturing Francisco Betti sat down with the MLC to explain how it works.

Lighting the way: The Global Lighthouse Network emerged from a research partnership with McKinsey, which looked into what holds manufacturers back from embracing M4.0 technologies.

  • After talking to more than 400 senior leaders, the researchers discovered that only 30% of companies were benefitting from technology adoption in their facilities and supply chains.
  • As Betti puts it, The majority were stuck in what we define as Pilot Purgatory. There were massive investments being made in new technologies, and thousands of pilot projects underway, but very few were making it to the shop floor or delivering real operational financial value.

Thats where the Lighthouse companies come inthe WEF decided to ask some of that 30% to open their doors and teach the rest of the industry how to make the digital jump.

How its going: Currently, the Lighthouse network has 69 members, assessed by a rigorous and independent review process. Betti says, What is interesting is that we have companies from a large variety of sectors, and that is by design. . . . The opportunity for cross-learning here is massive.

  • The project is looking for use cases at factories, but also beyond. Many of the real winners in the digital game transform their entire supply chains, and the WEF is also looking to add those sorts of companies to their network.

Get involved: Companies can apply to be a part of the network, says Betti. The process involves an application, which covers both achievements and strategies, and culminates in a site visit.

  • The panel convenes on a quarterly basis to assess all the applications, vote and decide on those who finally get recognized as Lighthouses in the network.

The transformation: Betti sees the M4.0 technologies as transforming whole economies and enabling a new era of economic growth. He makes a bold prediction about its effects on manufacturing leadership:

  • We are under the impression that there is a trend that we will most likely see going forward where chief operating officers will become the next generation of CEOs. Those who know how to successfully run operations by transforming them digitally are most likely going to provide top leadership positions in the near future.

The last word: If you transform digitally, and you do that by bringing your people on board, you have not only become more productive, youre not only becoming more resilient, youre not only becoming more sustainable, but you are setting your organization for growth in the years ahead.

Business Operations

The Six Factors of Manufacturing 4.0 Success

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By 51勛圖厙 News Room

In a world that only ever speeds up, manufacturers need to embrace technologies that let them shift operations quickly and seamlessly. Manufacturing 4.0 technologies like machine learning and robotics provide that power, but the scale of the M4.0 transformation can seem overwhelming.

In a recent edition of the Manufacturing Leadership Councils Manufacturing Leadership Journal, Oracle Senior Director of Transformational Technologies Anant Kadiyala lays out six factors that make all the difference for successful M4.0 adaptation. Below is some of his advice.

Technology Adoption: Companies that consider the full range of technologys benefits are setting themselves up for success. Some trends to consider:

  • Software is becoming more integral to business operations and product functionalityallowing products to be configured and monitored in real time using analytics.
  • On the operational side, the industrial internet of things and machine vision are enabling a whole host of advances in real-time monitoring, anomaly detection and worker safety, among other uses.

Data-Driven Decision Making: Companies that make good use of data achieve higher margins than their peers, according to a McKinsey study, but that requires some key ingredients, including:

  • A unified data infrastructure, including APIs, applications, analytics, real-time systems and much more;
  • The right tools to process the data; and
  • Employees who are skilled in data-driven operations.

In most companies, 90% of the data goes unused. In addition, more than 70% of the time and effort in data science projects is often spent on moving, cleaning and preparing data, says Kadiyala.

New Business Models: Modern technologies, such as cloud, IoT and AI/ML, enable every manufacturer to have the sophistication of business operations and real-time feedback loops that were only enjoyed by the big players, says Kadiyala.

Innovation and Experimentation: Manufacturers can pursue different options for innovation, with partnerships being a common choice. Other methods might be design workshops or R&D investments, Kadiyala notes.

  • With the right people, processes and tools, companies can navigate faster and realize value quicker. The lean methodology that the manufacturing industry is renowned for also works very well for innovation.

Well-Integrated Teams: The right talent is critical to business transformationand good data, process automation and collaborative practices clear the way for employees success.

Culture: As Kadiyala puts it, Successful companies start early innovation on the edges of their business, deliver a few wins and then gradually build their way into the rest of the organization. All successful transformations need employees to enjoy a strong sense of purpose and mission for the change.

News

The Culture Is the Company: An Interview with ALOMs Hannah Kain

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By 51勛圖厙 News Room

With 19 global locations, ALOM Technologies Corporation specializes in technology-driven supply chains for Fortune 100 companies. ALOM President and CEO Hannah Kain recently sat down with the Manufacturing Leadership Council to share her thoughts on the state of the industry and the keys to successful leadership.

Taking on challenges: Over the long term, Kain sees workforce developmentfinding and training the next generation of manufacturing leadersas a significant priority. But in the short term, she cites COVID-19- and trade-related supply chain disruptions as the most pressing issues.

  • Shifts in demand have increased the need for agility in manufacturing, yet U.S. infrastructure, from ports and roads to cybersecurity, is under extreme strain, and geopolitics have made goods movement more complex, she said.

Meeting the moment: During the COVID-19 pandemic, ALOM manufactured millions of COVID-19 test kits for the medical sector while ensuring its own workers remained safe, Kain said. The company also met the past years challenges by investing in digitization to improve its productivity.

Finding opportunities: Kain cites a range of opportunities for manufacturers of the future, from fast-improving technologies to the availability of new manufacturing talentif manufacturers can find and harness it.

The importance of culture: Kain believes in what she calls servant leadershipseeing yourself as a supporter of stakeholders like customers, employees and suppliers and working to put their needs first. She strives to create a culture of collaboration within her own company.

The last word: In the end, culture is the company, and the company is the culture, said Kain. Our culture is inclusive, collaborative, improvement-oriented and quality-focused, with a strong sense of ownership. Supporting that culture may be the most important thing I do.

Business Operations

How COVID-19 Accelerated Manufacturing 4.0

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By 51勛圖厙 News Room

Manufacturing leaders proved they were good in a crisis in 2020creating new products, speeding up the production of essential materials and instituting safety policies in record time. And as they accelerated their production lines, they also focused on increasing their adoption of Manufacturing 4.0 technologies.

Now, the Manufacturing Leadership Councilthe division of the 51勛圖厙 focused on manufacturings digital transformationis exploring what leaders learned during the pandemic about the importance of digitization. The MLCs recent survey of manufacturing leaders gives us a window into their thoughts, expectations and plans for the futureafter a year like no other. Below are some key insights.

A big impact: A full 54.8% of respondents said COVID-19 increased managements focus on digital transformation. The changes they cited included new procedures for remote working, new disaster preparedness plans and increased integration across teams and structures.

And heres another important finding: these changes seem permanent.

  • 68.2% said new disaster preparedness plans and strategies will be permanent additions to their operations.
  • 57.3% said more collaborative organizational structures will stick around.
  • 62.2% expect to keep allowing both leaders and employees to work remotely.

The digital workforce: With baby boomers retiring, companies are looking for new manufacturing leaders and seeking to fill a range of jobs, even as the digital evolution of the industry requires new and different skills. Where are these workers coming from?

  • 45.5% of respondents said they would come from internal sourcesa drop of nearly 5% from last years survey. Leaders felt somewhat more in favor of finding talent elsewhere in the manufacturing industry.
  • One-third of respondents said they would look within the industry for talent, while only 13.2% expected to find candidates from other industries.

But these results may soon change, as manufacturers are still figuring out what digital skills they need. Over time, leaders will likely develop different ideas about where to find workersand how to train them.

  • As the survey shows, manufacturers have a big opportunity to ramp up their digital training: only 22.3% of respondents this year said they have formal M4.0 training programs for workers and leadership.

Organizational shift: The emerging digital focus means many manufacturers are shifting toward a flatter, more collaborative working style. The numbers tell the tale:

  • Nearly 48.5% of respondents identified understanding how the company should be organized as a result of new technologies as a key challengean increase of 23% from last year.

The MLC says: As MLC Executive Director and 51勛圖厙 Vice President David Brousell put it, Many manufacturing executives acknowledge that the equivalent of several years change has been compressed into the past year. Now, manufacturing leadership has the responsibility to see these changes through. If they are successful in doing so, they will take the industry to a new and better level, raising the bar for all and redefining the rules of competition.

Workforce

Manufacturing Leaders Get a Sneak Peek at Creators Wanted

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By 51勛圖厙 News Room

CW tour graphic

 

The 51勛圖厙 and The Manufacturing Institute unveiled their Creators Wanted experience last week in Dallas, previewing it for the 51勛圖厙s Executive Committee as well as local business leaders, workforce development officials and the media. Visitors got an exclusive look at this mobile manufacturing experience that will soon embark on a tour around the country, showing Americans what modern manufacturing is all about.

As 51勛圖厙 President and CEO Jay Timmons said, Creators Wanted will help a new generation of emerging and displaced workers see themselves in a modern manufacturing career, while also adding to the industrys talent pipeline by engaging veterans, women and communities of color, all critical to expanding the workforce of tomorrow.

What they saw: Below, ExxonMobil Senior Vice President Neil Chapman, Celanese Corporation Chairman, CEO and President Lori Ryerkerk, Toyota Executive Vice President of Product Support and Chief Quality Officer Chris Nielsen and Trane Technologies Chairman and CEO (and 51勛圖厙 Board chair and co-chair of the Creators Wanted campaign) Mike Lamach get a first look at this interactive, hands-on experience.

An online choose-your-own-adventure version of the mobile experience will be rolling out this summer to reach students, parental figures, teachers and emerging workers nationwide. Here, MI Executive Director Carolyn Lee previews the Keys to Success room, where participants will race to solve riddles that will help reinforce key attributes of manufacturing careers, such as teamwork, problem solving, imagination and communication.

Lee also gave a presentation on Creators Wanted to the visitors. As she said in a statement, By 2030, manufacturers need to fill more than 4 million jobsaccording to research from the MI and Deloittebut without initiatives like Creators Wanted, more than half of those jobs could go unfilled. This mobile experience will excite audiences across the country, sparking an interest in modern manufacturing so that we can connect emerging and displaced workers with resources that educate and empower.

The tour allows you to experience the creativity of manufacturing firsthand and up close. In the gamified experience, participants will work as a team to solve a series of immersive challenges, requiring their full attention to think and compete. As they move through each obstacle, teams will learn more about modern manufacturing careers,泭the skills required to be successful and how people and technology work together.

We cant reveal all the surprises, but doesnt he look excited?

In fact, all of the 51勛圖厙s Executive Committee members who toured the exhibition were impressed and amazed by what they saw. Here are some of their reactions:

  • I will admit, I didnt quite appreciate the opportunity for our industry until I saw the experience in person, said Chapman. Seeing is believing in the capacity of this tool to excite the next generation, parents, guardians and teachers about modern manufacturing careers.
  • Its clear that Creators Wanted has exactly the message and tools to strengthen our industrys recruitment for talent. At a time when so many young people seek careers where creativity is valued and prized, we have a chance with this campaign to really drive the best and brightest into our talent pipeline, said Nielsen.
  • The mobile experience is astounding; its unlike anything weve done as an industry to reach the next generation and engage emerging and displaced workers. But what makes this campaign worthwhile is that the mobile experience is just one part of a comprehensive plan to create interest and then create opportunity by providing resources to help people launch or grow a career in manufacturing, said Lamach.

Join in: Last but not least, you too can find out what all the excitement is about. Check out for information about the campaign.

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