Posted: November 4, 2011

By Philip Newswanger

philip.newswanger@insidebiz.com

Despite the doomsayers, American manufacturing will thrive, according to a series of recent reports issued in October.

But finding the workforce with the right skills is the problem. A coalition of Peninsula groups is trying to tackle the challenge.

A survey of 14 employers on the Peninsula reveals they will need to hire more than 11,500 skilled trades and production workers from 2012 to 2016.

The survey, entitled "Skills to Succeed Inventory," was released by the Peninsula Council for Workforce Development and Thomas Nelson Community College.

The study was funded by the Ford Foundation and Virginia's community colleges.

"We don't have much of a jobs deficit, but we do have a skills deficit," said Del. Matthew James, D-Portsmouth, who is president and CEO of the Peninsula Council for Workforce Development.

"By bringing employers and training providers together, we have a better idea of maintaining and growing our manufacturing base, which will lead to higher-paying jobs in the future."

The survey was conducted over 10 months.

Firms such as Canon Virginia, Huntington Ingalls Industries and Liebherr were asked 20 questions electronically.

Personal interviews were conducted with executives and human resource professionals after the survey was completed.

The survey revealed skill-specific information on the number of upcoming manufacturing job openings, identifying 11 high-demand occupations.

Businesses and educators will meet in work sessions this month to recommend ways to modify and fund existing pathways and develop new ones to fill workforce educational gaps.

The goal is to customize education and training for different populations, including military veterans, dislocated workers, STEM - science, technology, engineering and math - high school and college students, underemployed workers, and young adults seeking technical jobs but lacking a GED and specific skills, James said.

The 14 companies employ 89.9 percent of the manufacturing workforce in the region.

Half of the firms said they will maintain their business at current levels, but half expect to expand business from 8 percent to 25 percent.

The study can be found at www.virginiacareerpathways.org.

The International Economic Development Council released its latest report, highlighting that manufacturing is a source of new high-quality jobs.

The 200-page report is entitled "Jobs in the Making: Economic Development Strategies to Grow Manufacturing."

The report highlights that workforce development - once treated as a social service concern - must be viewed as a core competency for the economic development profession.

The manufacturing jobs of today require a level of skill and training that was rare seven to 10 years ago, the report said.

The report ties directly to the Peninsula's survey of local businesses and the types of skills companies will need in the near future.

Workforce development has been a major plank of economic development over the past few years.

A report by the Boston Consulting Group shows that manufacturing will return to America - and that means having the right skills for those jobs.

Transportation goods such as vehicles and auto parts, electrical equipment including household appliances, and furniture are among seven sectors that could create 2 million to 3 million jobs as a result of manufacturing returning to the U.S., BCG said.

The trend is expected to accelerate starting in the next five years, BCG said.

BCG identified broad industry clusters that are most likely to reach a tipping point by 2015. That is

when China's shrinking cost advantage should prompt companies to rethink where they produce certain goods meant for sale in North America, the consulting group said.

In many cases, companies will shift production back from China or choose to locate new investments in the U.S.

The U.S. is also expected to become a more competitive export base in the sectors for Europe and Canada.

In addition to transportation goods, electrical equipment/appliances, and furniture, the sectors most likely to return are plastics and rubber products, machinery, fabricated metal products, and computers/electronics.

Together, the seven industry groups could add $100 billion in output to the U.S. economy and lower the U.S. non-oil trade deficit by 20 percent to 35 percent, according to BCG. nib