Lessons from Germany: Jan. 29 Joint Elected Boards
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Lessons from Germany: rethinking manufacturing in Chatham County, NC
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Lessons from Germany: Jan. 29 Joint Elected Boards
- 1. Lessons from Germany Dianne Reid, Chatham EDC Renee Paschal, Chatham County Dr. Pamela G. Senegal, Central Carolina Community College January 29, 2015
- 2. Global Leaders Program: Germany 2014 September 6-14, 2014
- 5. Tamara Barringer NC State Senate Larry D Hall NC House of Rep Terri Helmlinger Industrial Extension Warren Daniel NC State Senate Lisa Chapman NC Community College Yvonne Holley NC House of Rep William Collins NC Works Tim Moore NC House of Rep Shirley Randleman NC State Senate Matt Meyer NC Community College Global Leaders Program: Germany 2014 September 6-14, 2014
- 9. Chatham-Siler City Advanced Manufacturing Site (CAM Site) Good, well-paying manufacturing jobs Infrastructure Utilities Workforce development ECONOMIC DEVELOPMENT SUCCESS
- 12. 0 10 20 30 40 50 60 70 80 0 3,000 6,000 9,000 12,000 15,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Number of Businesses Average Number of Employees Per Business Manufacturing in North Carolina
- 13. $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Number of Paid Employees Average Salary Manufacturing in NC: 2000 to 2010
- 14. -20.63% -70.00% -60.00% -50.00% -40.00% -30.00% -20.00% -10.00% 0.00% 'Average Change (all class sizes) 1-49' '50-99' '100-249' '250 or more' Manufacturing in North Carolina: Change in Business Size 1998-2010 From 1990-2009, NC averaged 1,337 manufacturing startups. 85 percent have fewer than 25 employees.
- 15. Change in Manufacturing Employment from 1990-2010
- 16. Total Employees in Emerging Manufacturing Industries
- 17. MANUFACTURING United States Germany Manufacturing GDP 12.5% 20.7% Manufactured goods as exports 64.3% 82.3% Youth unemployment 14.3% 7.9% • In Germany, manufacturing is seen as a desirable profession • Almost 90% of companies have apprentices in Germany • About three years • Stipend starting at €450-1,000 • Education expenses paid by the company • 34,000 students enrolled in dual education
- 18. WHY DOES IT WORK? “The apprentices fill company needs.” “The system provides specialists not available in the labor market.” “We save lots of money on employee turnover.” “Students are perceived as learners so it’s easy to established mentor- mentee relationships with older workers.” “The students develop a strong identification with the apprenticeship company and remain loyal throughout their careers.”
- 19. BMW 10,000 employees o 250 apprentices each year from thousands of applicants BMW Junior Company o 2013: €1.5M sales (~$2M)
- 21. HOW DO WE GET THERE?
- 22. WHAT WE’RE DOING Local Leaders o Joint elected boards meeting Industry o Rapid Response o Youth Apprenticeships o Industry Meetings Students o Central Carolina Works
- 23. Teachers o Career & Technical Education teachers’ workshop o Tour local industries with non-CTE teachers o Educating CTE guidance counselors Students and Parents o CCCC Youth Enrichment Series o Manufacturing Day o Target marketing video WHAT WE’RE PLANNING
- 24. WHEN THEY COME… WILL CHATHAM BE READY?
- 25. Dianne Reid President, Chatham Economic Development Corporation 919-548-8275 dreid@chathamedc.org Renee Paschal Assistant County Manager, Chatham County 919-545-8300 renee.paschal@chathamnc.org Dr. Pamela G. Senegal Vice President of Economic & Community Development, CCCC 919-718-7254 psenegal@cccc.edu
Editor's Notes
- At the Emerging Issues Forum, we had Andrew Liveris, the author of Make it in America. He minded us why the manufacturing sector with its wealth creation Is vitally important to the economy. This is not just matter of national pride. It is a matter of necessity. Of all the sectors in our economy, only manufacturing has the capacity to create jobs on the scale we require. In fact, one job created inside a manufacturing plant creates five jobs outside of it, up and down an extensive supply chain. In a sluggish economy, one that requires us to create 125,000 jobs every month just to keep up with population growth, one that requires 14 million new jobs to achieve full recovery, the only answer is manufacturing. Manufacturing requires R&D around it and universities cluster around that. Manufacturers must embrace that they are a vital important part of the economy. * North Carolina's manufacturing output in 2012 was the fourth highest in the nation, at over $88 billion or 19.35% of the state GDP. How important is manufacturing to North Carolina? Together, the state's manufacturers employ over 400,000 people, or 13.6% of the total workforce. Most of the 8,700 manufacturing companies in North Carolina are small manufacturers; in 2011, 81% had 50 or fewer employees. Chris Anderson reminded us that modern technology can be used to create different kinds of products from a variety of materials. New technology, new networks innovate processes and products – the web is integrating operations within and across sector. The Economist magazine called this the “Third Industrial Revolution”.
- Manufacturing matters–for all of us. Manufacturing remains NC’s largest industry sector, contributing more to the state GDP than any other sector. Manufacturing offers the biggest rate of return for the economy. For every dollar of industry output, it creates $1.35-$1.43 of wealth elsewhere in the economy.
- Major results from the graphs above: in 1998, there was a high of 11,292 manufacturing firms in North Carolina and in 2010 that dropped to 8,963 – a drop of 20 percent. The average number of employees per business declined from 68 employees in 1998 to 45 employees in 2010, a drop of one third.
- No surprise then, as the number of manufacturing enterprises have declined the total number of paid workers has declined with it. However, the average salary of a worker has gone up from roughly $29,000 to about $43,000.
- However, the growth is really at the small end. From 1990-2009 North Carolina averaged 1,337 manufacturing startups each year yet nearly 85 percent of these companies have fewer than 25 employees.
- Between 1990 and 2010 the number of manufacturing establishments in the state grew by 33.8%, from 17,415 to 23,308. However, the size of these establishments declined. Between 1990-2009 North Carolina averaged 1,337 manufacturing startups each year yet nearly 85 percent of these companies have fewer than 25 employees. The net result was a 30.6% decline in manufacturing employment.
- An emerging manufacturing industry is one that a) experienced net employment growth between 1992 and 2008, b) experienced employment growth at a rate above that of the manufacturing sector as a whole (industry mix), and c) experienced employment growth at a rate above the overall rate of growth in the entire national economy (competitive component). A declining industry has negative scores for all the above components. “Emerging” defined as net employment growth at a rate above that of manufacturing as a whole from 1990-2008.