Transcript How We Can Tap The Tight Talent Pool Panel Moderator

Presentation for Idaho
Timber Workforce Summit
May 2008
Summary Comments on the H.R. Conference held in
conjunction with February 2008 Panel & Engineered
Lumber Conference & Expo; Atlanta, GA
Carl Jansen
Search North America, Inc.
www.searchna.com
THE U.S. RETIREMENT TSUNAMI IS COMING!
How We Can Tap The Tight Talent Pool

Panel Moderator:
Carl Jansen
Search North America, Inc.
Panelists:

Niall Mulkeen, Huber Engineered Woods

Jon McAmis, Roseburg Forest Products

Eric Brinson, U.S. Lumber Group

Rian Sigvaldsen, Search North America, Inc.
U.S. Demographics
General Trends
 Working
age population(18-24) will
shrink 47% between 2000 – 2050.
 Shortage of 15M skilled workers in
the U.S. by 2020.
 Workforce growth must come from
immigrant populations.

(Source: U.S. Bureau of Labor Statistics and Social Security
Administration)
The Growing Workforce Gap
% of Population
Year
65+
2008
2011
2014
2017
36
38
45
50
18-24
26
27
29
26
(Source: U.S. Bureau of Labor Statistics and Social Security Administration)
Employment Productivity Trends in
General Manufacturing




Manufacturing is the largest single contributor to the U.S.
economy – $1.4 trillion (12% GDP) annually.
Every 100 manufacturing jobs creates as many as 700 new
jobs in other economic sectors.
Manufacturing is responsible for nearly 2/3 of the private
sector R&D in the U.S. and nearly 80% of all new patents
filed originate from the manufacturing sector.
Manufacturing exports over 2/3 of the nation’s exports of
goods and services.
National Association of
Manufacturers Observations
 Less
than 10% of the U.S. workforce
is in manufacturing.
 Manufacturing workforce dropped
from 17.5M in 2000 to 14M in 2007.
 50% plus of manufacturing
workforce is set to retire in 10 years.
Survey Results from National
Association of Manufacturers
What manufacturers say about the U.S. workforce
in 2006:

90%
Stated moderate to severe shortage of qualified
skilled production workers

83%
Stated it is impacting their ability to serve customers

65%
Stated moderate to severe shortage of engineers
and scientists

39%
Stated a moderate to severe shortage of qualified
unskilled production workers
Manufacturing Institute
Survey Results
Given changes in the economy and your business, which of
the following will be the most important to your company’s
business success over the next 3 years?

75%
Focus on high performance workforce

50%
Focus on new product innovation

45%
Low cost producer status

33%
Increased customer service focus
In the Future,
The Manufacturing Institute
Predicts:

65% of manufacturing jobs will require an A.A. degree or
advanced technical training.

20% of jobs will require a 4-year college degree.
Both the Manufacturing Institute and the National Association of
Manufacturers agree:
There is a need for pro-manufacturing economic development
and awareness campaign that joins regional stakeholders
together.
The public needs to be better informed.
Manufacturing Productivity Trends
in the U.S.
Output per
Year
Labor
Output
Manhour
1992 Index
100
100
100
2005
171
168
98
178
97
+78%
-3%
2007
184
% Change 92-07
+84%
Costs per Unit
(Source: U.S. Department of Labor)
Wood Products Industry
Regional Production Per Manyear
Location
Lumber (Finland):
2000
2007
?
2,000 MBF+
Lumber (U.S. West):
900 MBF
1,200 MBF
Lumber (U.S. Southeast):
775 MBF
950 MBF
2.4MM 3/8’s
3 MM 3/8’s
OSB (U.S.):
(Source: Beck Group’s benchmark studies & other sources.)
Definition of Industrial Automation

Robotics or industrial automation or numerical control is the
use of control systems such as computers to control
industrial machinery and processes, replacing human
operators. It is a step beyond mechanization. Whereas,
mechanization provided human operators with machinery
to assist them with the physical requirements of work,
automation greatly reduces the need for human sensory
and mental requirements as well. Robotics is an advanced
form of automation.
Mechanization  Automation  Robotics
increases production per manyear
Wood Processing
Mechanization & Automation
Examples
Logging & Sorting Operations:
 Feller Bunchers, Automated Log Yard sorting/processing
systems (some can handle up to 24,000 logs per day)
Primary Mill Operations:
 Mill Infeeds, High-Speed Veneer Lathe, Size Control, Grade
Scanners, Stackers, Bar Coding Systems, Lay Up Lines
Automated, Material Handling Automated, Press Sizes
increased, LVL / I-Joist Lines Automated, Unit Packaging
Automated, Robots now in filing rooms, veneer patching
stations. Monitoring and Moisture Systems and
Maintenance Systems.
 Higher
production levels per
manyear through mechanization and
automation results in significant cost
benefits due to reduced labor force
at plant site, lower unit product
costs, lower recorded injury rates,
lower worker’s comp costs and
reduced retirement benefits.


Skilled workforce shortage in all
manufacturing sectors will force increased
use of improved mechanization,
automation and use of robots.
Manufacturing firms need to focus on
added technical training for operators and
maintenance teams including additional
technical support from OEM suppliers.
Conclusions Reached by
Panel Members
And
Conference Attendees
Move the V.P., Director or
Manager of Human
Resources directly
reporting to President or
General Manager on the
same level as the CFO or
Controller.
Develop a succession plan
for key personnel
- at least 2 candidates
trained for each key
position.
The advent of an aging
workforce requires:
Increased lighting
Larger signage
Improved safety
procedures.
Your Website is now
the lobby for your company!
Website access needs to be:
Easy
Up-to-date
Listing
services/products and
employment opportunities
Teenagers and Young Adults use
the internet to access
information making the web
more important than ads via
radio, magazines or TV spots.
These people are your future
employees.
Companies need to partner
with proactive trade
associations using major
website portals such as
MSN.com and Yahoo.
Questions??
 How
does your firm plan to cope with
the tight talent pool?
 How
can we as an industry; partner
up with our suppliers, educators,
public and private sectors to resolve
this issue?