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Advanced Manufacturing Labor Market Report 2018

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Advanced Manufacturing Labor Market Report 2018 ADVANCED MANUFACTURING LABOR MARKET REPORT 2018 THE COLUMBIA-WILLAMETTE WORKFORCE COLLABORATIVE Working together to support and develop regional talent. In 2016, the Columbia-Willamette Workforce Collaborative (CWWC) published its first data report about the Advanced Manufacturing industry. The 2016 report affirmed Advanced Manufacturing as a high growth industry in the Portland-Vancouver Metro Area and led the Collaborative to revise the 2014 Manufacturing Workforce Plan to establish new goals for 2016-2018. Since the 2016 report, Advanced Manufacturing has added over 3,000 jobs, reaching some of the fastest growth rates for the sector in the 21st century. The impressive growth in recent years has spurred sector employment past pre-recession levels. A broad array of occupations experience considerable demand in Advanced Manufacturing, including engineers, machinists, managers, quality assurance techs, truck drivers, and software developers. The jobs being added in the Manufacturing industry are high wage, averaging nearly $22 per hour. Demand, however, far-outpaces the current available skilled workforce in the region. Advanced Manufacturing represents one of the most demographically diverse sectors in the Portland-Vancouver Metro Area. Age, however, remains a major concern for employers— nearly one-in-four of the sector’s workforce is 55 or older and set to retire in the next decade. While job growth is expected to slow over the next decade, looming retirements and career changes mean that an estimated 94,000 job openings will exist through 2027. Utilizing the labor market information found in this data report, the CWWC held a series of convenings with industry and stakeholders to again update the Manufacturing Workforce Plan and create new goals for 2019-2021. Updating the Manufacturing Workforce Plan allowed for the identification of common industry workforce challenges, the opportunity to coalesce around shared goals and resources, and align the efforts of the public workforce system to make a greater overall impact for the Manufacturing sector in our region. Companies identified several areas of focus for revised Manufacturing Workforce Plan, indicating a strong emphasis be placed on making manufacturing a career of choice for emerging workers, connecting manufactures to the right candidates now, and strengthening the manufacturing industry throughout our region. The CWWC will work with employers and industry experts throughout the three-year plan, utilizing their skills and abilities to increase opportunities for industry exposure for youth and the individuals who influence their career decisions, identify and allocate resources for training and work readiness skills, advance workplace diversity, and strengthen the manufacturing industry through strategic partnerships. The Columbia-Willamette Workforce Collaborative is committed to supporting the needs of the industry by ensuring that a skilled labor pool is ready to fill open positions now and in the future. ii Columbia-Willamette Workforce Collaborative ABOUT THE COLUMBIA-WILLAMETTE WORKFORCE COLLABORATIVE The Columbia-Willamette Workforce Collaborative (Collaborative) is a partnership between Clackamas Workforce Partnership, Workforce Southwest Washington and Worksystems: the three Workforce Development Boards covering the Portland-Vancouver Metropolitan Area. The Collaborative delivers a unified approach to serving industry, supporting economic development, and guiding public workforce training investments to better address the needs of our combined labor shed. We know that people are willing to travel throughout the region for the best opportunities and that employers need the most qualified workers regardless of where they live. By working together, we can cultivate our regional talent pool and build the foundation for a strong economy. ABOUT THE GEOGRAPHIES Throughout this report, data is often provided Cowlitz for all nine counties found on the map above. Wahkiakum Skamania These nine counties, when combined, are Columbia referred to as the Portland-Vancouver Metro Clark Area (PVMA). The PVMA is a combination of the seven-county Portland-Vancouver-Hillsboro Washington Multnomah Metro Statistical Area (MSA) and two additional Yamhill counties served by the Collaborative—Cowlitz Clackamas and Wahkiakum counties in Southwest Washington. Columbia, Yamhill, and Skamania counties are not a part of the Collaborative’s geography, however, remain an important part of this report as they are included with the Portland MSA. In instances where data is not available for the nine-county region combined, data instead is provided for the seven-county MSA. ABOUT THIS REPORT The Collaborative is focused on aligning and investing resources to support the workforce needs of four sectors: Advanced Manufacturing, Healthcare, Technology, and Construction. Sectors are chosen based on factors such as their economic significance to the region, current number of openings and job growth projections, average wages that support self- sufficiency, and career ladder opportunities across the skill continuum. By examining labor market intelligence (such as the data contained in this report) and vetting the information with business partners, we are able to better understand industry trends, identify current and emergent workforce needs, and develop customized solutions for each sector. Sector Report: Advanced Manufacturing 1 OVERVIEW With over 96,000 jobs and a payroll of $8.4 billion, ADVANCED MANUFACTURING Advanced Manufacturing accounts for nine percent EMPLOYMENT BY COMPONENT of the Portland-Vancouver Metro Area’s private- PORTLAND-VANCOUVER METRO AREA, 2017 sector employment and 14 percent of payroll. Source: Emsi While the region’s economy is well diversified, the manufacturing sector remains a critical component. Food Processing In 2017, the Portland Metro Area ranked first 17,300; 18% nationally among the nation’s metro areas with populations greater than one million in proportion High-Tech of its Gross Domestic Product generated by Manufacturing manufacturing: 23 percent compared to 11 percent 42,000; 44% Metals, nationally. Machinery & Transportation The Advanced Manufacturing sector includes 37,000; 38% High-Tech, Metals, Machinery & Transportation Equipment, and Food Processing. ADVANCED MANUFACTURING JOBS BY COUNTY A substantial portion of Advanced Manufacturing PORTLAND-VANCOUVER METRO AREA, 2017 jobs are concentrated in Washington County, Source: Emsi specifically in the high-tech manufacturing subsector. Meanwhile, Multnomah County, despite having the second most number of manufacturing jobs, has a smaller concentration relative to the Clackamas overall size of its economy. 13,900; Multnomah 14% 25,400; 26% Clark Clackamas County has roughly 14,000 jobs (15 8,600; 9% percent share of regional employment), and Southwest Washington adds about 10,000 jobs Yamhill (11 percent). 4,700; 5% Washington Companies tend to be clustered along major road, 40,400; 42% Remainder* water, and rail transportation corridors. 3,100; 3% *Columbia, Cowlitz, Skamania, Wahkiakum counties 2 Columbia-Willamette Workforce Collaborative FIRMS BY SIZE CLASS: ADVANCED MANUFACTURING PORTLAND-VANCOUVER METRO AREA, 2017 Source: Oregon Employment Department, Washington Employment Security Department Share of Total 70% The sector has more larger firms and fewer small firms relative to 60% the overall economy. The share of firms with at least 50 employees Advanced Manufacturing 50% accounts for 15 percent of All Industries (private sector) Advanced Manufacturing 40% employment, compared to just 5 percent of the overall economy. 30% The average firm size is over 20% three times larger than the average company in the region: 10% 45 employees per company compared to 15 across all 0% industries. 1-4 5-9 10-19 20-49 50-99 100 or more Firm Size (# of employees) EMPLOYMENT BY SIZE CLASS: ADVANCED MANUFACTURING PORTLAND-VANCOUVER METRO AREA (OREGON PORTION) Source: Oregon Employment Department Share of Total 60% Over half of the region’s Advanced Advanced Manufacturing Manufacturing employment works 50% All Industries (private sector) in establishments employing more than 250 workers. 40% 30% 20% 10% 0% 1-4 5-9 10-19 20-49 50-99 100-249 250+ Firm Size (# of employees) Sector Report: Advanced Manufacturing 3 MAJOR EMPLOYERS - NUMBER OF EMPLOYEES Intel remains the largest private- MAJOR EMPLOYERS: ADVANCED MANUFACTURING sector employer in the region, Source: Equifax (EMSI), The Business Journal, The Oregonian with an estimated 20,000 employees in Washington County A-dec Leatherman Tool Group, Rockwell Collins Inc. Aerospace & Electronics, as of 2017. Other companies, Blount International Inc. LifePort, Inc. Inc. however, help diversify the Bob’s Red Mill Natural SEH America Foods Linear Technology Advanced Manufacturing sector. Siltronic Corporation Boeing Mondelez International Local employers manufacture a Steelscape, Inc. C-Tech Industries Norpac LLC broad set of goods and devices Tektronix Columbia Machine Neil Jones Food Co outside of semiconductors, Qorvo Daimler Trucks Oregon Iron Works (Vigor) ranging from machinery, food, United States Bakery Electro Scientific PDM Steel Service medical equipment, and Industries Inc. Centers TTm Technologies aerospace parts. Esco Precision Castparts/PCC WaferTech Structurals Evraz Oregon Steel Mills Waite Specialty Machine Reser’s Fine Foods Inc. Inc. Gunderson Xerox Corporation Intel Corporation LOCATION QUOTIENTS LOCATION QUOTIENTS Location quotients are used to measure a
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