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Advanced Manufacturing Skills Gap in the Greater Berks Region

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Advanced Manufacturing Skills Gap in the Greater Berks Region ADVANCED MANUFACTURING SKILLS GAP IN THE GREATER BERKS REGION PREPARED FOR: Berks County Workforce Development Board PREPARED BY: Economic Development Company of Lancaster County and the Center for Regional Analysis JANUARY 2021 1 ADVANCED MANUFACTURING SKILLS GAP IN THE GREATER BERKS REGION PREPARED FOR: Berks County Workforce Development Board PREPARED BY: Economic Development Company of Lancaster County and the Center for Regional Analysis JANUARY 2021 2 EXECUTIVE SUMMARY...................................4 Electrical and Electronics Repairers of Commercial and Industrial Equipment ........ 37 Report Quick Statistics...................................10 Industrial Machinery Installation, Repair & Maintenance Workers ................... 37 INTRODUCTION ...........................................11 General Maintenance and Repair Workers ......................................... 38 DEFINING ADVANCED Summary of Future Demand MANUFACTURING ....................................... 15 for Occupations Supporting Advanced Manufacturing ........................... 38 A Definition of Advanced Manufacturing in the Greater Berks Region............................16 Relationship Between Advanced THE SUPPLY OF TALENT FOR Manufacturing and Labor ............................. 17 ADVANCED MANUFACTURING IN THE GREATER BERKS REGION .............. 42 Skills and Knowledge for Advanced MANUFACTURING IN THE Manufacturing Occupations .......................... 43 GREATER BERKS REGION IS STRONG – AND GROWING .......................... 19 CTCs as a Pipeline for Workers Entering Advanced Manufacturing Careers .................. 44 TABLE OF The Composition of Manufacturing in the Region – An Industry Sub-Sector Postsecondary Instituions as a Pipeline Overview .................................................... 21 for Workers Entering Advanced CONTENTS Manufacturing Careers ................................. 46 Implications of an Aging Workforce DEMAND FOR SKILLED on the Supply of Advanced OCCUPATIONS............................................. 23 Manufacturing Workers ................................ 47 Greater Berks Region Diverging from the Nation ........................................... 24 NET IMPACT OF CHANGES IN THE Forecasting Manufacturing and DEMAND AND SUPPLY FOR ADVANCED Its Labor Force ............................................. 25 MANUFACTURING OCCUPATIONS ............. 50 The Rise of Machine Operators and Tenders ................................................ 29 FINDINGS AND RECOMMENDATIONS ........ 52 Machinists and CNC Machine Programmers and Operators ...................... 29 Observations ............................................... 52 Various Machine Operators Findings ..................................................... 53 and Tenders ............................................. 33 Recommendations ....................................... 54 Demand for Skilled Labor........................... 35 Demand of Maintenance Workers ................. 35 ENDNOTES .................................................. 56 3 Manufacturing in the Greater Berks Region (defined better with fewer resources and lower cost. Advanced as Berks, Chester, Lancaster, Lebanon, Lehigh, manufacturing occupations are an indispensable part Montgomery and Schuylkill Counties) has grown to achieving this objective. in output and employment over the past decade. One driver of this growth is the shift towards Manufacturing is a strong component “advanced manufacturing,” which is characterized of the Greater Berks Region by the adoption of automation, the incorporation of technology, and the utilization of innovation in The Greater Berks Region has maintained its processes and systems. This sector-wide transition significance in US manufacturing, having periods is visible in the data, evidenced by growth in specific of contraction and expansion over the last 20 occupations requiring more technical skills and years. Significantly in the years following the Great reductions in general laborers. It also is clear from Recession of 2008-2009, the manufacturing sector interviews with regional manufacturers. reversed its historical decline and began adding jobs. For the purposes of this study, the pivotal term • By 2019, the sector added 11,600 jobs, accounting “advanced manufacturing” recognizes the unique for nearly 81% of Pennsylvania’s job growth blend of innovation and selective use of smart in manufacturing. In total, the manufacturing automation that firms in this Region have been sector in this seven-county region included 3,900 EXECUTIVE doing. The definition is a bit abstract as it also must establishments that were directly responsible SUMMARY recognize that approximately 70% of the nearly 4,000 for 174,200 employees (or 13% of the region’s manufacturing establishments found here have fewer workforce). than 50 employees. It is not an “either-or” for whether a firm is an advanced manufacturer. Instead, the • As a share of PA’s manufacturing sector, the focus is how far along the advanced manufacturing Region represents 27% of establishments and 30% trajectory it can move and at what pace. of the manufacturing workforce. Defining advanced manufacturing occupations Manufacturing in the Greater Berks recognizes the changing skills requirements of Region is anticipated to keep growing some occupations that have been embedded in the industry for well over two decades. These changes While having grown quickly over the last ten years, have been underway for some time and arguably future sector growth in the region is expected to be reached a tipping point. Across the Greater Berks more modest but still faster than the nation. Region, its highly diverse manufacturing industry shares a key characteristic: production workers • This stronger regional growth plays an important tend to have an outsized role in their labor force. role in forecasting demand for skilled occupations The region’s heavy reliance on production workers that outpaces national projections. In 2019, the elevates labor’s role in producing more, faster and Greater Berks Region had 94,400 production 4 workers representing 54% of the manufacturing Machine Operators and Tenders rise sector’s workforce. Its total employment base is among production occupations in the projected to grow between 4% and 5% by 2029. Greater Berks Region This equates to the region seeing an additional 6,460 to 8,740 jobs over the next ten years. The interviews and data show that manufacturers in the Greater Berks Region have gradually reduced Advanced manufacturers in the region their reliance on general (unskilled) labor and outline skills and labor needs increased their use of two broad classes of skills. They are workers that can operate machines that blend The advanced manufacturing transformation started mechanical and programming, and workers that have Summary Executive in the early 2000s, but its impact did not become specialized skills that are not easily transferred to apparent until after 2010. Since then, the integration automation. These two classes translate to a handful of advanced manufacturing has been more of advanced manufacturing production occupations: evolutionary rather than coming in leaps and bounds. CNC operators and programmers; machinists; machine setters, tenders, and operators; and welders. • Interviews with employers emphasized that A close look at occupations in the Greater Berks advanced manufacturing requires production Region found these jobs in the “Top 20” production workers who can operate equipment with occupations (ie, 20 occupations representing 70% of programmed controls and computer interfaces. all production workers). Additionally, that equipment, their user interfaces, and integration in a production process are CNC Operators and Programmers. Advanced all customized to the plant. Recognizing the manufacturing means increased importance of specificity, employers turned to emphasizing machines that are computer numerically controlled the importance of basic entry level skills, and (CNC). Initially concentrated in a handful of durable uniformity in the set of knowledge and training goods manufacturing sectors, CNC operators and sought out for production workers. programmers are now present in nearly every subsector of manufacturing durable and nondurable • Employers indicated less demand for general goods. While BLS forecasts falling demand nationally laborers, concurrent with increased demand for for a pool of CNC operators and programmers, the roles that require more technical skills (such as regional demand is anticipated to be modestly CNC operators, machinists and programmers). positive given the anticipated, steady growth of The increased demand for more technical skills manufacturing in the Greater Berks Region. also reflected more cross-over from production to maintenance roles, as well as increased Machinist. Closely related to CNC operators and challenges in balancing the need for deep programmers are machinists. Reflecting the increased technical skills and knowledge with general training and skills that accompany technological management aptitude. advancement, it is one of the few occupations that 5 BLS projects demand growing over the next decade. Industrial machinery mechanics are found across Historical demand in the region has been strong and manufacturing and have the largest number of anticipated to continue. workers among all the installation, maintenance and repair occupations. With spill over into duties similar Machine Operators and Tenders. These roles have
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