Staying Power II: A Report Card on Manufacturing in MA 2012

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Barry Bluestone, Director, Dukakis Center for Urban and Regional Policy

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  • Staying Power II: A Report Card on Manufacturing in MA 2012

    1. 1. Barry Bluestone Director Dukakis Center for Urban and Regional Policy Massachusetts Association of Planning Directors UMass Lowell June 6, 2013
    2. 2. Staying Power II A New Assessment • In the Spring of this year … five years after the research began for our original manufacturing report, we began a follow-up study supported by the Massachusetts Technology Collaborative, the Greater Boston Manufacturing Partnership, RBS Citizens, and The Boston Foundation • It would involve a careful consideration of what had happened in Massachusetts manufacturing since 2007 – Review of existing data on employment, output, and productivity – A new survey of nearly 700 manufacturers in the Commonwealth – Face-to-face interviews with nearly 60 manufacturing CEOs and owner- managers
    3. 3. Here is What We Found
    4. 4. Massachusetts Manufacturing Employment (in thousands) January 2007–December 2009 Source: U.S. Bureau of Labor Statistics 298.2 291.6 289.2 252.7 220 230 240 250 260 270 280 290 300 310 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 -36,500 jobs
    5. 5. Massachusetts Manufacturing Employment (in thousands, seasonally adjusted) January 2008-June 2012 Source: U.S. Bureau of Labor Statistics 290.8 252.7 250.4 220 230 240 250 260 270 280 290 300 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Stable employment since November 2009 … despite Great Recession December 2012: 249.3 April 2013: 250.0
    6. 6. Projected Massachusetts Manufacturing Employment (in thousands) (1996-2018) Source: Calculations based on Massachusetts Department of Labor 0 50 100 150 200 250 300 350 400 450 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 5-Year Projected Change -12,000 jobs 2,400 per year 1996-2012 -160,000 jobs: 10,000 per year
    7. 7. Massachusetts Employment by Sector (in thousands) June 2012 Source: Massachusetts Executive Officer of Labor and Workforce Development, Current Employment Statistics (CES 790 Series), July 2012. 38.2 42.6 46.7 58.4 85.9 85.9 102.2 121.4 123.5 125.1 158.2 165.8 172.1 250.4 260.4 267.6 269.3 350.6 514.9 0 100 200 300 400 500 600 Real Estate and Rental & Leasing Arts, Entertainment, and Recreation Federal Government Management of Companies and Enterprises Transportation, Warehousing, & Utilities Information Services Construction Other Services State Government Wholesale Trade Education Services Finance & Insurance Administration & Support Services Manufacturing Local Government Accommodation and Food Services Professional, Scientific and Technical Servicess Retail Trade Health Care & Social Assistance 6th Largest Employer in the Commonwealth
    8. 8. Change in the Number of Massachusetts Manufacturing Establishments (2002-2011) Source: Massachusetts Department of Labor and Workforce Development, ES-202 Employment and Wage Statistics -326 -188 -197 -524 -267 -169 -150 -244 -81 43 -600 -500 -400 -300 -200 -100 0 100 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
    9. 9. Top Ten Manufacturing Industries in Massachusetts (2010) 4-Digit Industry (2010) Employees Navigation, measuring, medical, and control instruments 26,139 Semiconductor and other electronic components 17,022 Printing and related support activities 12.532 Computer and peripheral equipment 12,253 Aerospace product and parts 11,978 Plastics products 11,309 Medical equipment and supplies 10,759 Machine shops, turned product and screw, nut & bolt 9,957 Bakeries and tortilla 9,356 Pharmaceutical and medicine 9,136 Source: Massachusetts Department of Labor and Workforce Development, ES-202 Employment and Wage Statistics
    10. 10. Manufacturing Share of Private Industry Output (% of GSP) (1997-2011) Source: U.S. Bureau of Economic Analysis 15.0% 14.5% 14.1% 14.2% 12.1% 12.1% 12.2% 11.3% 11.1% 11.2% 11.1% 10.8% 10.8% 12.0% 12.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
    11. 11. Productivity in Massachusetts All Industries vs. Manufacturing Source: U.S. Bureau of Economic Analysis (Updated June 5, 2012 with revised estimates for 1997-2010) (Gross State Product (GSP) is in $millions of chained (real) 2005 dollars) $83,839 $86,058 $94,096 $104,936 $107,025 $114,568 $48,666 $53,042 $72,589 $101,141 $127,739 $178,625 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 1997 1998 2000 2004 2007 2011 GSP/Worker – Private Sector GSP/Worker - Manufacturing
    12. 12. Productivity in Massachusetts All Industries vs. Manufacturing Productivity 1997-2007 Annual Growth Rate 2007-2011 Annual Growth Rate GSP/Worker – Private Sector +2.3% +1.7% GSP/Worker - Manufacturing +9.7% +8.7% Source: U.S. Bureau of Economic Analysis (Updated June 5, 2012 with revised estimates for 1997-2010) (Gross State Product (GSP) is in $millions of chained (real) 2005 dollars)
    13. 13. Educational Attainment Manufacturing Full-Year Workers Massachusetts vs. U.S. (2010) 2.4% 0.9% 11.3% 24.0% 6.9% 15.9% 30.0% 8.5% 1.0% 0.5% 6.6% 18.2% 8.0% 21.1% 33.2% 11.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% PhD Professional Degree Masters BA Assoc Degree Some College, No degree HS Grad Less Than HS 2010 MA 2010 U.S. Source: American Community Survey 61.3% Require Less Than College B.A.
    14. 14. Share of Massachusetts Payroll (2011:3rd Quarter) Top 4 Sectors Employment Sector Total Employment Percent of Massachusetts Workforce Percent of Massachusetts Total Payroll Health Care 532,934 16.6% 15.3% Retail Trade 344,751 10.8% 5.3% Education 282,818 8.8% 8.7% Manufacturing 254,300 8.0% 10.1% Source: Massachusetts Office of Labor and Workforce Development, Employment and Wages http://lmi2.detma.org/lmi/lmi_es_asp#IND_LOCATION
    15. 15. Massachusetts Manufacturing A Diverse Workforce 2005 2010 Source: 2010 American Community Survey [i] Hispanic includes Hispanics that are foreign-born and native. The same with Asians and African-Americans. Ethnicity Share of Non- Manufacturing Workforce Share of Manufacturing Workforce Share of Non- Manufacturing Workforce Share of Manufacturing Workforce Foreign Born 15.9% 24.4% 18.3% 26.0% Hispanic 5.8% 8.3% 7.3% 9.3% Asian 4.1% 6.5% 5.0% 8.9% African-American 4.9% 3.8% 5.8% 3.4%
    16. 16. Proportion of Workforce Age 45 or Older 40.5% 49.6% 53.9% 36.1% 41.4% 44.6% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 2000 2006 2010 Manufacturing All other industries Source: American Community Survey, Public Use Files, 2006, 2010, Tabulations by Center for Labor Market Studies and Dukakis Center for Urban and Regional Policy, Northeastern University
    17. 17. The 2012 Staying Power Massachusetts Manufacturing Survey
    18. 18. The Continuing Evolution of Massachusetts Manufacturing • Structure of Manufacturing in Massachusetts • Manufacturing Labor Force • Source of Capital • Changes in Economic Environment for Massachusetts Manufacturers
    19. 19. Manufacturing Firms by Size of Employment (2011) Source: Info USA Database; Dukakis Center Manufacturing Survey, 2011 Size of Firm (Employees) Share of Manufacturing Firms Share of Total Manufacturing Workforce 1-4 36.1% 2.7% 5-19 35.7% 10.3% 20-99 21.4% 25.6% 100-499 6.1% 34.3% 500+ 0.9% 27.1% More than 70% employ fewer than 20 workers
    20. 20. Ownership Structure of Massachusetts Manufacturers (2012) Source: Dukakis Center Manufacturing Survey, 2012 72.2% 14.1% 6.2% 7.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Private Family Owner-Operated Private Investor-owned Publicly Owned Stock Corporation Other
    21. 21. Real Wage Increases for Production Workers in Massachusetts Manufacturing Firms (2007 – 2012) Source: Dukakis Center Manufacturing Surveys, 2007 and 2012 Real Wages adjusted for U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers 1st Half 2007 (205.7) vs. 1st Half 2012 (228.85) (1982-1984 = 100.0) Employee Level Real Wages (2012$) Difference % Difference 2007 2012 Unskilled Production Workers $13.51 $13.95 $0.44 3.3% Skilled Production Workers $22.05 $25.83 $3.78 17.1%
    22. 22. Sources of Capital Source: Dukakis Center Manufacturing Survey, 2012 83.3% 77.8% 49.5% 37.1% 26.6% 15.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Commercial Banks Personal Funds Leasing Companies to obtain equipment Small Business Loan (SBA) Private Investment/Equity Issuers of Mezzanine/Subordinated Debt
    23. 23. “Very Important” or “Extremely Important” Sources of Capital Source: Dukakis Center Manufacturing Survey, 2012 Source All 1-19 20-100 101+ Commercial Banks 59.7% 50.7% 73.1% 63.3% Personal Funds 46.6% 55.2% 42.0% 15.9% Leasing Companies to obtain equipment 17.7% 19.2% 18.6% 10.5% Small Business Loan (SBA) 12.3% 14.7% 13.0% 0.0% Private Investment/Equity 10.1% 7.7% 9.6% 18.2% Issuers of Mezzanine/Subordinated Debt 3.6% 2.7% 3.0% 7.5%
    24. 24. Likelihood of Changes in Primary Suppliers, Customers, and Competitors Field Not Likely Very + Extremely Likely Suppliers More MA Suppliers 39.7% 11.5% More US Suppliers 20.8% 23.5% More Global Suppliers 46.3% 16.9% Customers More MA Customers 30.0% 22.3% More US Customers 15.0% 36.4% More Global Customers 42.1% 27.8% Competitors More MA Competitors 50.0% 9.2% More US Competitors 23.2% 20.7% More Global Competitors 28.5% 37.2% Source: Dukakis Center Manufacturing Survey, 2012
    25. 25. “Large Extent” or “Great Extent” Expectations about Customer Demands, Technology, and Workforce Deployment by Firm Size Source: Dukakis Center Manufacturing Survey, 2012 Large or Great Extent 1-19 20-100 101+ Increased customer demand for lower prices 38.3% 48.3% 70.5% Increased customer demand for improved service delivery 34.2% 44.0% 59.0% Increased customer demand for better product quality 26.2% 40.6% 61.5% Substantial increase in the use of new technology 21.1% 26.0% 51.3% Substantial increase in productivity due to improved technology 19.1% 26.3% 42.3% Shift from local markets to national markets 15.5% 23.8% 28.2% Shift from national markets to global markets 14.8% 25.7% 42.3% Shortage of critical materials 8.6% 9.7% 12.9% Substitution of skilled labor for less skilled labor 5.6% 5.6% 3.8% Substitution of less skilled labor for skilled labor 4.2% 6.1% 12.8% Reduction of employment due to improved technology 2.9% 6.6% 6.4% Increased off-shoring of internal operations 2.6% 4.2% 5.2% Increased outsourcing of previous internal operations to other MA firms 2.3% 3.3% 1.3% Increased outsourcing of previous internal operations to firms in other states 1.9% 1.8% 3.9%
    26. 26. Manufacturing’s Survival in Massachusetts • Why Massachusetts Manufacturers are staying in the Commonwealth • Why they might relocate • Innovation Activity • Use of State Assistance • Capital Access in the Future
    27. 27. Reasons for “Staying” in Massachusetts Reason Very or Extremely Important Work Ethic of workforce 55.0% Inertia (too hard to relocate) 44.0% Future availability of appropriately skilled labor 43.2% Current availability of appropriately skilled labor 42.4% Current proximity to customers 42.0% Future proximity to customers 37.4% Quality of life (e.g. public schools, recreation, and cultural institutions) 33.3% Access to transportation for shipping/commuting 31.7% Monetary or in-kind incentives from state or local governments 30.9% Opportunity for physical expansion 28.1% Availability of reasonably priced land for expansion 27.9% Current proximity to key suppliers 24.9% Future proximity to key suppliers 24.1% Strategic partnerships with community colleges and vocational education programs 16.8% Proximity to universities and colleges 12.6% Massachusetts weather and climate 11.8% Critical mass of similar firms in region 11.3% Proximity to European markets 2.6% Source: Dukakis Center Manufacturing Survey, 2012
    28. 28. Reasons for Possibly “Leaving” Massachusetts Reason Very or Extremely Important Health care costs 84.2% Cost of worker's compensation 75.5% Taxes and Fees 74.6% Cost of unemployment insurance 73.1% Future energy costs 72.0% Environmental regulations 68.9% Current energy costs 68.8% Labor costs 68.1% Trade Unions 67.7% Time to obtain permits and licenses 60.9% Future availability of appropriately skilled labor 57.8% Current availability of appropriately skilled labor 54.2% Cost-of-living 54.2% Cost of construction 47.1% Availability of reasonably priced land for expansion 46.1% Opportunity for physical expansion 43.4% Future proximity to key suppliers 38.7% Future proximity to customers 37.5% Current proximity to key suppliers 33.3% Massachusetts weather and climate 28.0% Source: Dukakis Center Manufacturing Survey, 2012
    29. 29. Innovative Activity of Massachusetts Manufacturers and “Innovation Score” Initiative Innovation Points Invested in new manufacturing equipment 10 Expanded total workforce 5 Invested more in product research and development 10 Expanded sales and marketing workforce 5 Opened sales office abroad 5 Invested in education and training 10 Secured at least one new patent 10 Entered into a formal partnership 10 Hired consultant 5 Implemented performance improvement program 5 Source: Dukakis Manufacturing Study Staff
    30. 30. Distribution of Innovation Scores Across Massachusetts Manufacturing Firms Source: Dukakis Center Manufacturing Survey, 2012 Very Low 22% Low 17% Average 27% High 21% Very High 13%
    31. 31. Distribution of Innovation Scores across Massachusetts Manufacturing by Firm Size 34.9% 21.1% 25.5% 12.8% 5.7% 8.8% 14.6% 32.2% 29.3% 15.1% 2.9% 4.3% 20.0% 32.9% 40.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Very Low Low Average High Very High 1-19 20-100 101+ Source: Dukakis Center Manufacturing Survey, 2012 The largest firms are the Major Innovators
    32. 32. Innovation and Expected Future Production Levels Innovation Level Production at increased levels Production at current levels Production at reduced levels Cessation of production in MA Very Low 29.1% 48.9% 17.0% 5.0% Low 65.1% 28.4% 5.5% 0.9% Average 69.8% 21.3% 7.1% 1.8% High 88.0% 6.8% 3.8% 1.5% Very High 85.0% 10.0% 2.5% 2.5% Source: Dukakis Center Manufacturing Survey, 2012
    33. 33. Expected Massachusetts Employment Growth by Innovation Score Innovation Level Expansion of Massachusetts Employment by No Change Reduction of Massachusetts Employment by >25% 11-25% 1-10% 1-10% 11-25% >25% Very Low 2.2% 8.6% 25.9% 51.8% 5.8% 0.7% 5.0% Low 8.3% 15.6% 44.0% 26.6% 3.7% 0.0% 1.8% Average 11.8% 26.0% 37.9% 15.4% 4.1% 3.6% 1.2% High 18.8% 33.1% 36.8% 4.5% 4.5% 0.0% 2.3% Very High 30.0% 31.3% 26.3% 11.3% 1.3% 0.0% 0.0% Source: Dukakis Center Manufacturing Survey, 2012
    34. 34. State Incentive and Grant Programs used by Massachusetts Manufacturers Source: Dukakis Center Manufacturing Survey, 2012 25.3% 25.2% 12.5% 9.5% 6.3% 5.1% 2.0% 1.3% 25.7% 26.7% 18.1% 13.3% 7.7% 6.1% 2.4% 1.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Workforce Training Grants Investment Tax Credits R&D Tax Credits Low Interest Loans Tax Increment Financing Loan Guarantees Equity Financing Site Finder Assistance 2007 2012
    35. 35. State Incentive and Grant Programs used by Massachusetts Manufacturers by Firm Size Source: Dukakis Center Manufacturing Survey, 2012 Program 1-19 20-100 101+ Workforce Training Grants 10.2%` 37.7% 66.7% Investment Tax Credits 14.6% 36.5% 53.1% R&D Tax Credits 7.0% 26.9% 51.6% Low Interest Loans 12.2% 15.8% 11.5% Tax Increment Financing 3.3% 11.2% 22.2% Loan Guarantees 3.3% 11.0% 3.3% Equity Financing 1.3% 4.6% 1.7% Site Finder Assistance 0.7% 0.5% 1.6%
    36. 36. Access to Capital Over the last five years, to what extent has access to capital ever been an impediment to growth? Not at All To Some Extent To a Fair Extent To a Large Extent To a Great Extent 50.1% 20.0% 12.4% 9.4% 8.1% Access to Capital has been an Impediment to Growth to a Large or Great Extent All Firms 1-19 20-100 101+ 17.5% 21.0% 13.5% 11.7% Source: Dukakis Center Manufacturing Survey, 2012
    37. 37. Access to Capital by Region within Massachusetts Over the last five years, to what extent has access to capital ever been an impediment to growth? Extent Inside 495 Central MA Northeastern MA Southeastern MA Western MA Not at All 46.9% 56.0% 63.0% 51.1% 49.5% To Some Extent 20.7% 21.0% 18.5% 18.2% 19.6% To a Fair Extent 13.6% 7.0% 7.4% 14.8% 14.0% To a Large Extent 10.2% 6.0% 11.1% 10.2% 9.3% To a Great Extent 8.6% 10.0% 0.0% 5.7% 7.5% Source: Dukakis Center Manufacturing Survey, 2012
    38. 38. Ability to Finance Future Growth To what extent are you concerned about your company's ability to finance future growth? Not Concerned Somewhat Concerned Fairly Concerned Very Concerned Extremely concerned 32.7% 29.2% 15.7% 12.2% 10.2% Source: Dukakis Center Manufacturing Survey, 2012
    39. 39. A Manufacturing Workforce for the Future • Difficulty in Recruiting Labor • Recruiting Methods • Training Institutions
    40. 40. Difficulty in Recruiting Labor for Massachusetts Manufacturers (2012) Source: Dukakis Center Manufacturing Survey, 2012 Employment Type Not Difficult Very or Extremely Difficult Skilled craftsmen 18.4% 43.1% R & D Staff 36.7% 24.1% Executive management 40.9% 15.6% Middle management 40.3% 11.0% Entry level employees 49.9% 8.0%
    41. 41. Sources Used for Recruiting and Hiring Shop Floor Employees Source Used Very or Extremely Successful Employee Referrals 83.2% 32.6% Temporary Employment Agencies 55.3% 12.4% Vocational High Schools/High Schools 50.2% 10.2% Internet Advertisements 49.6% 9.1% Internet Job Search Sites (e.g. Monster.com) 46.0% 7.1% Newspaper Advertisements 59.2% 7.1% Private Employment or Recruiting Agencies 36.8% 6.9% Industry Networking Events 24.4% 3.2% One Stop Career Centers 15.9% 1.8% Career and Technology Fairs 16.6% 1.4% Community Colleges 21.1% 1.2% Source: Dukakis Center Manufacturing Survey, 2012
    42. 42. Importance of Institutions in Preparing the Manufacturing Job Floor Workforce Source: Dukakis Center Manufacturing Survey, 2012 Institution Not Important Very or Extremely Important Vocational/Technical High Schools 24.5% 38.1% Comprehensive High Schools 35.5% 21.7% Four Year Colleges/Universities 52.1% 17.5% Community Colleges 46.5% 13.4% Private Training Companies 70.8% 5.7% The Military 70.2% 5.6% Workforce Investment Board 87.2% 3.1%
    43. 43. The Future of Manufacturing in Massachusetts • Investments in Manufacturing • Projected Production Levels • Projected Employment Levels • Mergers & Acquisitions • Geographic Expansion • Exports & Export Potential
    44. 44. Initiatives Pursued over Past 5 Years to Grow Manufacturing Operations in Massachusetts Source: Dukakis Center Manufacturing Survey, 2012 Initiative All Firms 1-19 20-100 101+ Invested in new manufacturing equipment and/or manufacturing process software 82.6% 73.7% 91.2% 98.6% Invested in education and training for manufacturing workforce 49.5% 34.5% 60.5% 87.1% Expanded manufacturing sales and marketing workforce 47.2% 31.5% 65.0% 70.0% Invested more in product research and development than in the previous five years 45.1% 34.0% 55.1% 72.9% Implemented or strengthened a performance improvement program 41.6% 25.7% 57.6% 69.6% Expand overall square footage of existing manufacturing floor space 36.7% 27.3% 43.3% 59.4% Developed a succession plan for ownership 29.4% 22.0% 43.2% 21.7% Developed a succession plan for senior executives 25.4% 14.6% 36.4% 52.2% Hired consultants to help grow business 24.8% 17.6% 29.6% 38.6% Entered into a formal partnership and/or joint venture with another manufacturing firm 17.8% 13.2% 21.8% 30.0% Secured at least one new patent for a new product 16.6% 10.8% 16.6% 47.1% Opened a new manufacturing location in Massachusetts 8.8% 6.7% 9.5% 20.0% Opened a sales office abroad 8.6% 2.7% 10.9% 31.4%
    45. 45. Expected Production Levels of Massachusetts Manufacturing Firms over the Next Five Years (2012 - 2017) Source: Dukakis Center Manufacturing Survey, 2012 Continued production at increased levels, 65.4% Continued production at current levels, 24.4% Continued production but at reduced levels, 7.7% Cessation of production in Massachusetts, 2.5%
    46. 46. 5 Year Employment Projections of Massachusetts Manufacturing Firms (2012 – 2017) Source: Dukakis Center Manufacturing Survey, 2012 Expansion of Massachusetts Employment by >25% 13% Expansion of Massachusetts Employment by 11-25% 22% Expansion of Massachusetts Employment by 1-10% 35% Maintenance of Current Employment Levels 23% Reduction of Massachusetts Employment by 1-10% 4% Reduction of Massachusetts Employment by 11-25% 1% Reduction of Massachusetts Employment by >25% 2% 70% of manufacturers expect to increase employment over the next 5 years
    47. 47. Business Expansion Plans of Massachusetts Manufacturers by Firm Size (2012 – 2017) Source: Dukakis Center Manufacturing Survey, 2012 Expansion Location All 1-19 20-100 101+ Massachusetts 66.7% 67.7% 67.6% 55.6% New England (Excluding MA) 26.5% 23.6% 28.6% 23.4% Other states in the U.S. 31.3% 22.5% 38.2% 51.0% Outside the U.S. 17.3% 5.7% 20.2% 49.0% No expansion plans 47.9% 55.4% 38.5% 35.6%
    48. 48. What Could Help Manufacturing’s Success? • Reducing Barriers to Growth • Closer Cooperation with Vocational Schools and Community Colleges • Promotion of Manufacturing
    49. 49. Recommendations for Promoting Manufacturing in Massachusetts Source: Dukakis Center Manufacturing Survey, 2012 Recommendation Very Important or Extremely Important Working with School or Community College Instructors to Incorporate Industry Standards into Curriculum 30.3% Creating a certificate in manufacturing technology 27.5% Serving as mentors/advisors at selected vocational schools or community colleges 27.4% Speaking to Parent Organizations/Student Groups About Careers in Manufacturing 24.7% Contributing Machinery, Tools, or Other Materials to Schools 21.0% Exhibiting at Education, Career, and Technology Fairs 19.7% Instituting company-sponsored educational scholarships 14.2% Hiring vocational/community college teachers to train your employees 11.6%
    50. 50. Company Assessment of Broad-Based Initiatives to Strengthen Manufacturing in Massachusetts Source: Dukakis Center Manufacturing Survey, 2012 Initiative Very or Extremely Important Continued alignment of the vocational and community college curricula with industry needs 42.8% Programs to increase school, student, and parent awareness of careers in manufacturing 40.5% State-wide marketing campaign to promote manufacturing industry 33.9% Expand professional development/continuous improvement programs for existing employees 29.6% Create an employee applicant referral system 22.5%
    51. 51. Conclusions • Manufacturing is alive and well in the Commonwealth and has a healthy future • Closer cooperation between training institutions and manufacturing can fulfill the sector’s need to replace an aging workforce • Continuing to promote the industry will help secure the Commonwealth’s prosperity for years to come

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