Talent Management in Manufacturing Industries

Friday May 25, 2012

American manufacturing has been making a quit but steady comeback since the 1980’s. While the US manufacturing base is certainly not at the levels of the 1950’s - 1960’s, it is currently enjoying a stronger recovery than the general economy. The US Federal Reserve Bank reported in April 2012, US manufacturing output expanded by over 4.8% as compared to April 2011. This expansion is partly fueled by increased productivity through the use of technology. Technology based on STEM knowledge, i.e., science, technology, engineering and math. STEM employment has the added value of paying higher than average wages and providing higher than average benefits.

One example of STEM knowledge is in the area of “additive manufacturing”, in this process, three-dimensional parts are built up from successive layers of mental powders using a machine that literal “prints out” the part. Morris Technologies in Cincinnati, Ohio, was an earlier US adopter of this technology and a world leader in additive manufacturing. A recent poll of CareerBuilder found 11 job openings at Morris with tiles and pay ranges like: 

• CAD Designer NX Unigraphics, $40k - $70k/year
• Lead Engineer (Design), $70k - $90k/year
• Lead Machinist, Pay: $25.00 - $32.00/hour
• CNC Machinists, $18.00 - $28.00/hour

So what are two issues with talent management in manufacturing, specifically as to recruitment? One,It is ithe perception of manufacturing as it was decades ago, rather than the high tech, high skilled environment that many manufacturers are today. Two, many point to the US education system as not producing high school graduates with a strong foundation in math and science. Consider the CAD Designer at Morris Technologies, this job typically requires a minimum of 2 years education and training often found at a community or technical college, several years of experience, and certification in CAD Software, yet has an above average salary.  

Jeff Schwartz, a principal with Deloitte Consulting LLP's Human Capital practice and writing for Business Finance on November 9, 2011 argues that manufacturers have taken innovative and fresh approaches to sourcing talent. He points out that branding, knowledge management, and phased retirement can all be applied to help address talent shortages when coupled with efforts that are more traditional.

Other approaches that some organizations have taken include cooperative education and training programs with local high schools, vocational, community, and even four-year colleges tied to the employer’s specific manufacturing needs. While these programs may address a manufacturer’s short-term needs, they may not address the softer skills associated with employability skills such as interpersonal communications, problem solving, and critical thinking.

What is needed for the long term is a pipeline of workers with strong technical, employability, and interpersonal skills who have the proper foundation in science, math, as well as communication skills. Traditionally, employers have relied on the US education system to produce employment ready workers. Regrettably, manufacturing may not be able to continue to rely on that system in the future. To compound manufacturers’ dilemma, most of the skills manufactures require are also in high demand by most other employers.