November 2012

The Manufacturing Worker Challenge

By George N. Saliba, Managing Editor

The low-down on Garden State manufacturers' struggle to find skilled employees, and the training that prospective workers need to fill these positions.

There is an unusual paradox in New Jersey’s manufacturing arena: Overall, the sector has been losing jobs, but many of the state’s firms that do need workers often have great difficulty locating them. Given the state’s unemployment rate of 9.9 percent, a first thought might be that this does not make sense: Why can’t manufacturers find appropriate employees, even as workers are downsized from different firms?

Part of the answer begins with the well-known effects of globalization. The United States has, of course, been losing manufacturing jobs to countries such as China, where the cost of labor and conducting business overall may be lower. In conjunction with these forces, New Jersey faces competition from other states that wish to lure manufacturing companies. In broad terms, as manufacturing jobs leave the state, associated human capital may instinctively follow.

Compounding this is the fact that New Jersey’s young persons are largely not encouraged to pursue manufacturing careers. Since manufacturing jobs are “disappearing,” parents and school guidance counselors - for this and other reasons - often coax teenagers toward unrelated, college-bound pursuits.

But, the conundrum runs deeper. Statistically, children and teenagers today are less likely to spend time tinkering with automobiles or related projects in their backyards, and are instead more likely to be navigating the virtual worlds of Facebook or online gaming, for example.

If teenagers and parents today dream of information technology and financial careers, who will work on a manufacturing floor in New Jersey?

One manufacturing expert interviewed by New Jersey Business magazine stated that during a training program, there were students who had never before used hand tools. Of note, these were individuals who had explicitly expressed an interest in pursuing a manufacturing career.

When further exploring the skilled employee shortage, there appears to be a disconnect between New Jersey manufacturing jobs that are available now, and the general public’s awareness about such jobs.

Thomas Devine, Ph.D., associate dean of the school of business and technology at Trenton-based Thomas Edison State College, says, “[There are] many times I walk by plants, or deal with clients, and they are looking for workers, but they can’t find them in New Jersey. Then I go home and hear what the unemployment rate is on the news. I say to myself, ‘What is going on here?’ There’s a huge gap.”

Qualifications

Yet, before an unemployed attorney exclaims, “I am going to get a job in manufacturing!,” a look at the qualifications for such careers is in order. Experts repeatedly state that manufacturing careers require aptitude: For instance, a person who studied English at a liberal arts college and is not mechanically inclined, may not succeed on a shop floor. Other persons may be better suited, having realized this long ago when they knocked their alarm clock off their bed stands, it broke apart, and they became fascinated with properly reassembling it.

That said, it should be noted that New Jersey’s manufacturing jobs are often not “low skill.” Yes, employees must be able to turn a screwdriver, but they also must know how to use computers - and they need to understand mathematics.

Meredith Aronson, Ph.D., is director of ManufactureNJ, the Advanced Manufacturing Talent Network hosted at the New Jersey Institute of Technology (NJIT) and sponsored by the New Jersey Department of Labor and Workforce Development.

She explains, “It is now a different style of worker than a generation ago, which, back then, often was someone who was very pleased to come and do the same thing, each and every day.

“Today’s machines, with their more customized needs, are far more complex. There are IT interfaces, which require a different style of worker - a person who wants to learn.”

Character Traits

Meanwhile, manufacturing companies have a low tolerance for human error, which can not only injure employees, but also impact profits.

All told, many firms today like to hire military veterans. The military is extremely effective, and the discipline and skills it instills in its service members are often a rare find in today’s labor market. For example, employers generally know that a former Army mechanic will keep equipment running smoothly, work as part of a team, and that he or she will arrive at work at the appointed time.

Another “type” of manufacturing worker – if one is to stereotype manufacturing culture – is a person who perhaps grew up in a household where hands-on skills were valued.

The Ladder

As with any career, the path to manufacturing success is long and narrow. Aronson says, “We had a guy who lost his job in IT say, ‘I have an uncle who is in manufacturing, and it sounds like it might be an interesting career. Maybe I should just start over.’

“Well, what I think people don’t understand – and they have to come to terms with this – is that right now, in this labor market, entry-level jobs [in manufacturing] are $12 to $15 an hour. That’s entry level. And $15 an hour is a generous way of looking at that.

“You don’t get to $50,000-$80,000 a year, without evolving your skills. And evolving those skills means going back for additional education. For example, if you are cutting metal, that involves [National Institute of Metalworking Skills] certifications to establish that you are highly skilled. Or, it’s an associates’ degree in manufacturing engineering technology. But, primarily, the return will come to you for the technical skills that will allow you to increase your responsibility in the company.”

Steve Kirbos, lab coordinator at Middlesex County College and a Class A machinist, explains, “It is not your grandfather’s machine shop anymore. Take the Computer Numerical Control (CNC) machinery, for example. It is fascinating to look at the computer plug data into machines. The machines write the program for you, from a blueprint.

“You still have to learn the manual method before you grow up to the CNC method. But, again, it is not your grandfather’s machine shop anymore.”

New Jersey Business also interviewed Patricia Moran, Ph.D., director of The Institute for Management and Technical Development at Middlesex County College. At one point, her off- the-cuff comments distilled much of what this article conveys.

“I always say my son went to vocational school at home. We own a farm with farm equipment, where he learned welding and machinery, but then he went to school to be a chemical engineer. What his company loves about him is that he can do both aspects of the job. So, he just got a promotion. The problem is that they are trying to replace his old position [with a new employee].

“[The company’s] new quest is: ‘We want a kid who knows how to do all this hands-on stuff , and who has the bachelor’s degree in mechanical engineering.’”

Moran concludes, “I think someone who has a lot of hands-on training with the machines, knows how to read the blueprints, and knows how to make things - and then goes on and gets that degree – I think they will be totally invaluable.”

Of note, educators also underscore the importance of management skills in the manufacturing world.

Conclusion

Given New Jersey’s manufacturing job dynamics (jobs losses, yet unfilled positions), what are the long-term prospects for a person who leverages his or her mechanical aptitude and personal discipline by educating himself or herself about manufacturing? To what extent will New Jersey manufacturers continue to seek talented employees a decade from now?

One view is that due to the high cost of operating a business in New Jersey, the state will probably not be a bastion of basic manufacturing for, say, children’s toys or furniture. Yet, the Garden State is blessed with a highly educated workforce of scientists and engineers who are able to design and develop a range of sophisticated products.

There are many reasons why companies that develop products want to manufacture “close to home” (see accompanying article on page 40 ), and, of course, the extent to which firms wish to do so will determine the need for skilled manufacturing employees.

Above all, neither globalization nor lower-cost manufacturing locales can alter the fact that New Jersey is - as Benjamin Franklin said - a “barrel tapped at both ends,” with Philadelphia to the west, and Manhattan to the east. More specifically, New Jersey’s seaports, transportation network, access to financial markets and population density should be appealing to sophisticated manufacturers on a long-term basis – companies that will hopefully need the “skill sets” outlined above.  

Vincent Schweikert, Vice President & Publisher
973-882-5004. ext. 110
v.schweikert@njbmagazine.com

Anthony Birritteri, Editor-in-Chief
973-882-5004. ext. 104
a.birritteri@njbmagazine.com

George Saliba, Managing Editor
973-882-5004. ext. 106
g.saliba@njbmagazine.com

Lisa Fragati-Criscuolo, Advertising Manager
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l.criscuolo@njbmagazine.com

Gloria Owens, Account Executive
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g.owens@njbmagazine.com

Doug Prefach, Account Executive
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