More Than One Takeaway

March 21, 2022

Last week at our Spring Manufacturing & Policy Conference, our speakers took a hard look at Delaware's labor market, identified the challenges, and offered ideas on opportunities and solutions. I apologize in advance for this lengthy message, but there was more than one key takeaway that I believe is important to share:

The morning began with a panel titled, Where Did All the Workers Go?, and it highlighted some real issues that our manufacturers are experiencing as they compete for talent.

POPULATION: Over the next decade, by 2030 all boomers will be 65+. Immigration and birth rates are not keeping up with the exchange rate of that workforce exit. On top of this, new people entering the workforce often lack access to things like child care, transportation, and affordable housing. How do we address these challenges so that our workforce can go to work?

AUTOMATION: A study out of Canada showed that low-skill and high-end positions increased due to automation. It also reported that middle skill and management positions decreased due to automation. Traditionally, workers would join a company and move up the ladder. That is no longer with the hollowing of middle skill positions due to automation. With this knowledge, how do we appropriately bring on a workforce and skill them up?

ADULT LEARNING: You have to meet the learner where the learner is. This means consider things like e-learning and more hands-on interaction by employers. How do employers become more involved in supporting people so they not only receive education but also find a good-paying career upon completion?

FUNDING: NAWB has identified workforce training as a $80B issue over the next 10 years in order to upskill the American workforce to meet global standards. Federal funding is only about $3B, which means we need to look at alternative financing methods—like income share agreements. These issues are not just about business and a skilled labor force; how do we truly engage with communities to address the full picture?

The second panel, Playbooks for the Future, turned toward “what’s working” and how we can build upon successful workforce programs. Zip Code Wilmington is a fast-track coding school and is looking to replicate their model to train people in the construction industry. Delmarva Power connects Delaware students to energy careers with a 100% job placement rate. M. Davis & Sons created an internal training and apprenticeship program to grow their workforce from within. Aviation High School in New York City is a specialty public school that trains high school students to fill the airplane maintenance shortage with 500 students graduating with licenses each year. How can Delawareans build upon successes like these and replicate models that work to address the needs in manufacturing and other important industries?

Our keynote speaker, Dr. Kelvin Lee of NIIMBL, shared how the U.S. has long-time been a leader in R&D and manufacturing, but that our leadership in advanced manufacturing has been waning since 2000. He explained that we invent things here, but manufacture elsewhere. NIIMBL is perhaps a little-known gem here in Delaware. They are working to ensure the U.S. cements its leadership in global biomanufacturing to further economic development, enhance national security, and provide improved patient access to cutting-edge therapies—today and in the future. With jobs in this sector paying 75% more than the average U.S. position, Lee believes there is much opportunity for Delaware to capitalize on this industry, citing the foundation the state already has in place and highlighting innovative approaches like the Biomanufacturing Training and Education Center in North Carolina.

Governor John Carney also joined the conference and spoke to each of these themes, specifically stressing that in order for the state to compete, there is a critical need to have sites ready for new and growing businesses to relocate.

If the COVID-19 pandemic has taught us anything, it's the importance of domestic manufacturing and a domestic workforce.

News You Can Use

With inflation concerns and borrowing rates on the rise, Monday starts with a speech by Federal Reserve Chairman Jerome Powell, and the Chicago Fed National Activity Index for February. On Tuesday, the Cleveland, New York and San Francisco Fed president’s offer remarks about the economy. On Wednesday, Fed Chair Powell speaks on digital challenges facing the economy. New home sales figures for February are released too. Thursday brings us an early look at jobs data for the first part of March, more Fed speeches, and February durable goods orders. We wrap up on Friday with the University of Michigan consumer sentiment index and pending home sales figures from March.

Companies with earnings calls this week start off on Monday with Nike and Tencent Music Entertainment Group. Tuesday calls include Adobe, BuzzFeed, and FreightCar America. Cintas, General Mills, Steelcase, and Winnebago Industries are scheduled for calls on Wednesday. Darden Restaurants, Neogen, Titan Machinery, and POINT Biopharma Global are among the others with calls this week.