Manufacturing in the United States is being transformed by new technology that has made our workers the most productive in the world. The pace of change is constant and presents significant challenges. Even in today’s struggling economy, 600,000 manufacturing  jobs  are unfilled because employers can’t find people with the right skills.

Jennifer McNelly, president of The Manufacturing Institute, was a featured speaker on how to close the skills gap and train a 21^st century workforce at the Washington Post Live’s “America’s New Manufacturing” event today sponsored by NAM member company Siemens.

McNelly joined an array of top experts who are actively engaged in the transformation of manufacturing in America including Siemens Corporation President and CEO Eric Spiegel; Former Assistant to the President for Manufacturing Policy Ron Bloom; Mayor Anthony Foxx of Charlotte, NC; Export-Import Bank Chairman and President Fred Hochberg; and Tennessee Governor Bill Haslam.

McNelly spoke about the Manufacturing Institute’s leading initiatives to help close the skills gap, including its Manufacturing Skills Certification System of industry-based, portable and stackable credentials that validates the skills of incoming workers. She also spoke about the great work the Institute is doing with GE, Boeing, Lockheed Martin, Alcoa and other partners to train returning military veterans for jobs in advanced manufacturing.

All the speakers agreed that with the right policies in place, this next era of manufacturing is an opportunity to secure America’s economic future.

There are many flaws with the President’s budget, but on a positive note is the commitment to career and technical education. Not everyone needs to attain a four-year degree to have a successful career. Obtaining a nationally-portable, industry-recognized post-secondary credential will allow for potential workers to know they are being trained in the skills that employers need today. The President’s budget specifically addresses reforming career and technical education to “better align program with the needs of employers…to ensure that graduates are poised to succeed.” This is a philosophically important point that is of utmost importance to manufacturers. Manufacturers need a strong technical workforce and we are pleased that the administration values this goal.

The budget also asks for $8 million for a Community College fund to support partnerships with business. Manufacturers are already on the ground across the country looking to align community college curriculum to industry-recognized credentials. So, while we appreciate this effort, we are also concerned that there is not more of an emphasis on making existing workforce training programs more efficient by eliminating the bureaucracy and streamlining existing programs, such as the Workforce Investment Act. Our goals are the same but in some cases our process diverges. We look forward to working with the administration on training initiatives that focus on jobs and skills in-demand today as well as training the workforce for the future.

The National Press Club in Washington, DC. - a panel on the workforce skills gap in STEM careers and education. Bud Cramer (at podium), panelists (l-r) Aric Newhouse, of the NAM, U.S. Senator Joe Donnelly, and Fred Humphries, Microsoft.

Today, NAM Senior VP for Policy and Government Relations, Aric Newhouse, took part in a panel discussion on, “Strengthening the American workforce: Addressing the skills gap,” with Senator Joe Donnelly (D-IN), and Fred Humphries, Microsoft Vice President of US Government Affairs. Hosted by Center Forward, a non-partisan organization, the event focused on the need to close the skills gap in the U.S. by enacting legislation like the America Works Act. The bill, introduced by Senator Kay Hagan (D-NC), Senator Joe Donnelly (D-IN) and Senator Dean Heller (R-NV), would modify existing federal job training programs to more effectively prepare American workers and to help manufacturers remain competitive in the global marketplace.  You can check out video of the event here.

Mr. Newhouse told the audience that “manufacturers need a skilled workforce to compete in the 21^st century economy. The ongoing skills gap that has left approximately 600,000 manufacturing jobs unfilled across the country directly undercuts America’s competitiveness. Policy solutions like the America Works Act give employers the confidence that the workers they hire will have the skills that fit today’s technologically advanced manufacturing.  The NAM is committed to continuing its partnerships with policymakers, manufacturers, and educational institutions to deliver the workforce that will help create a manufacturing resurgence in the U.S.”

The NAM-Manufacturing Institute partnership was mentioned often, particularly the Institute’s efforts on the ground with educational groups and their initiatives like “Dream it Do It.” Mr. Newhouse added that the backbone of innovation, and the backbone of growth in manufacturing comes from the employees who make up its workforce.”

Manufacturers consistently list the skills gap as one of the most pressing issues they face and the NAM is working with policymakers to solve the problem. In doing so, we will find a solution that addresses the skills shortage in the near-term and sets the U.S. up for long-term growth.

Congressman Lou Barletta (R-PA) and Congressman Brad Schneider (D-IL) introduced H.R. 497, the America Works Act this morning.  This a vital piece of bipartisan legislation that makes limited but sensible changes to the Workforce Investment Act, Perkins and the Trade Adjustment Assistance Act by focusing existing training dollars towards nationally-portable, industry recognized certifications. The NAM has endorsed a series of certifications that train to exactly the skills necessary for success in Manufacturing. By pointing these Federal programs towards training that has been recognized by employers as in-demand we are ensuring that government resources are being used more effectively and that potential employees are being trained in marketable skills. We look forward to working with the sponsors on this important piece of legislation as it moves through Congress.

Manufacturers need a skilled workforce to succeed in today’s global economy. Although we need machinists and welders, we also need to ensure that the innovators, those driving change and invention, come and stay in the US.

Many of the smartest people from around the world come to the US to be educated. That is why the NAM commends introduction of the “STEM Jobs Act of 2012” by thank Chairman Lamar Smith and we urge Congress to pass it. This bill will allow manufacturers access to talent without increasing the total number of visas.  By creating two new employment-based visa categories for Masters and PhD graduates from qualified universities in STEM fields, the bill allows for a streamlined green card process.  This is an important step towards reforming the employment-based visa system to retain talent and encourage innovation, so US manufacturing can remain a global leader. This positive step is recognized by both Democrats and Republicans as evidenced by bills authored by both Rep Lofgren and Senator Schumer that also increase employment based visas.  The NAM has long worked for a bi-partisan solution to this problem and will continue to pursue broad reforms.

The NAM looks forward to working with the co-sponsors to promote this valuable legislation.

BASF, whose U.S. headquarters is found in Florence, N.J., has been an active part of the NAM Summit today, taking the message of lower taxes, affordable energy, and a skilled workforce all over Capitol Hill.

In one meeting with Rep. Charlie Dent (R-PA), they shared the ongoing issue of the skills gap that has left 600,000 manufacturing jobs unfilled across America. They are asking Congress to pass the America Works Act in order to create a nationally portable certification system to address the problem.

BASF is doing their part to create jobs and in the near future will be adding over 100 jobs at their North Carolina facilities.

Yesterday, Representative Joe Walsh (R-IL) filed an amendment to the National Defense Authorization Act which adds industry recognized credentials to the Department of Defense Pilot Program on Receipt of Civilian Credentialing for Military Occupational Skills. One of the greatest challenges facing manufacturers today is this inability to find the skilled talent needed for today’s modern manufacturing. The skills obtained in the military are highly sought after in the private sector; however it is often difficult to align those skills with civilian job descriptions. It is our hope that this pilot program, with the inclusion of industry-recognized credentials, will begin to bridge that gap.

By using industry-recognized credentials as the basis for identifying competencies, separating military will know exactly what jobs they are qualified for and employers will have a better understanding of which candidates possess the skills required.  The NAM supports Congressman Walsh’s amendment and urges its adoption.

Across the nation, manufacturers are unified in emphasizing the need for a strong technical workforce to meet the needs of advanced manufacturing. Today the Senate Subcommittee on Competitiveness, Innovation, and Export Promotion held a hearing to highlight that need titled, “Promoting American Competitiveness: Filling Jobs Today and Training Workers for Tomorrow.”  We are pleased to see the subcommittee attempt to address this serious concern.

The President of the Manufacturing Institute, Jennifer McNelly, testified at the hearing, highlighting that the best way to train workers for job in an advanced technical economy is to ground that learning in industry-based credentials in coordination with secondary and post-secondary educational institutions. The testimony, which was well-received by the Committee, pointed out,”… we need a new strategy for our manufacturing workforce, grounded in industry standards, with new and renewed cooperation with industry, education, economic development, and the public workforce investment system.”

As Subcommittee Chair, Senator Klobucharstated in her opening statement, “…this is not your grandfather’s voc-tech.”  Growing our national technical workforce will keep manufacturers competitive and growing in the US.”

AT&T is launching a $250 million campaign, AT&T Aspire, to help bridge the skills gap that has left over 600,000 manufacturing jobs unfilled. The commitment, planned for the next five years, will assist high school students get ready for careers and college – and in doing so will help America become more competitive in the global marketplace.

According to AT&T, they will accomplish that goal by, “using technology to connect with students in new and more effective ways, such as with interactive gamification, Web-based content and social media. The company will also tap the innovation engine of the AT&T Foundry to look for fresh or atypical approaches to educational obstacles. Finally, AT&T Aspire will capitalize on the power of personal connections in the form of mentoring, internships and other voluntary efforts that involve many of AT&T’s approximately 260,000 employees.”

AT&T Aspire began in 2008 with more than $100 million invested in education across the country. Over one million students already benefitted from their programs.

Sen. Amy Klobuchar (D-MN) speaks at the launch of the Right Skills Now program.

According to a survey conducted recently by the Manufacturing Institute and Deloitte, 80 percent of manufacturers face a moderate to severe shortage of skilled workers.  In a country with 9.1 percent unemployment, jobs are going unfilled because employers can’t find worker with the right skills.

The National Association of Manufacturers and the Manufacturing Institute are trying to fix this skills-gap problem and are seeing support for their efforts in the public and private sectors.  It was just a few months ago that President Obama endorsed the Institute’s national skills certification system.

Today, in Plymouth, Minnesota (just outside of Minneapolis), the Manufacturing Institute, members of the President’s Council on Job’s and Competitiveness and representatives from local businesses and educational institutions gathered at Productivity to launch Right Skills Now, a program that will train workers for jobs in modern manufacturing.

Also attending the event were NAM President and CEO Jay Timmons, who introduced Small Business Administrator Karen Mills, and the Manufacturing Institute’s Jennifer McNelly.