Download - Bluestone
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Barry BluestoneNortheastern University
CEOs for CitiesBoston, Massachusetts
October 17, 2012
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Massachusetts Manufacturing Employment (in thousands) January 2007–December
2009
Source: U.S. Bureau of Labor Statistics
Jan-07
Feb-0
7
Mar
-07
Apr-0
7
May
-07
Jun-07
Jul-0
7
Aug-0
7
Sep-0
7
Oct
-07
Nov
-07
Dec-0
7
Jan-08
Feb-0
8
Mar
-08
Apr-0
8
May
-08
Jun-08
Jul-0
8
Aug-0
8
Sep-0
8
Oct
-08
Nov
-08
Dec-0
8
Jan-09
Feb-0
9
Mar
-09
Apr-0
9
May
-09
Jun-09
Jul-0
9
Aug-0
9
Sep-0
9
Oct
-09
Nov
-09
Dec-0
9220
230
240
250
260
270
280
290
300
310
298.2
291.6289.2
252.7
-36,500 jobs
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Massachusetts Manufacturing Employment (in thousands, seasonally adjusted)
January 2008-June 2012
Source: U.S. Bureau of Labor Statistics
Jan-08
Mar
-08
May
-08
Jul-0
8
Sep-0
8
Nov
-08
Jan-09
Mar
-09
May
-09
Jul-0
9
Sep-0
9
Nov
-09
Jan-10
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov
-10
Jan-11
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov
-11
Jan-12
Mar
-12
May
-12
220
230
240
250
260
270
280
290
300
290.8
252.7250.4
Stable employment since November 2009 … despite Great Recession
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U.S. Manufacturing Employment
• January 2010: 11,458,000• September 2012: 11,942,000
Gain +484,000 jobs
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Massachusetts Employment by Sector (in thousands) June 2012
Source: Massachusetts Executive Officer of Labor and Workforce Development, Current Employment Statistics (CES 790 Series), July 2012.
Real Estate and Rental & Leasing
Arts, Entertainment, and Recreation
Federal Government
Management of Companies and Enterprises
Transportation, Warehousing, & Utilities
Information Services
Construction
Other Services
State Government
Wholesale Trade
Education Services
Finance & Insurance
Administration & Support Services
Manufacturing
Local Government
Accommodation and Food Services
Professional, Scientific and Technical Servicess
Retail Trade
Health Care & Social Assistance
0 100 200 300 400 500 600
38.2
42.6
46.7
58.4
85.9
85.9
102.2
121.4
123.5
125.1
158.2
165.8
172.1
250.4
260.4
267.6
269.3
350.6
514.9
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Change in the Number of Massachusetts Manufacturing Establishments (2002-2011)
Source: Massachusetts Department of Labor and Workforce Development, ES-202 Employment and Wage Statistics
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-600
-500
-400
-300
-200
-100
0
100
-326
-188 -197
-524
-267
-169-150
-244
-81
43
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Manufacturing Share of Private Industry Output (% of GSP) (1997-
2011)
Source: U.S. Bureau of Economic Analysis
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%15.0%
14.5%14.1% 14.2%
12.1% 12.1% 12.2%
11.3% 11.1% 11.2% 11.1% 10.8% 10.8%
12.0% 12.2%
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Productivity in MassachusettsAll Industries vs. Manufacturing
Productivity1997-2007Annual GrowthRate
2007-2011Annual GrowthRate
GSP/Worker – Private Sector +2.3% +1.7%
GSP/Worker - Manufacturing +9.7% +8.7%
Source: U.S. Bureau of Economic Analysis (Updated June 5, 2012 with revised estimates for 1997-2010) (Gross State Product (GSP) is in $millions of chained (real) 2005 dollars)
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Average Annual Salaries for Massachusetts Industry Sectors
(2010)
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, Employment and Wages, Annual Wages, 2010, table 8 & 10, http://www.bls.gov/cew/cewbultn10.htm#Tables
Finance
Professional Technical Services
Information
MANUFACTURING
Real Estate
Government
Healthcare
Agriculture, Forestry, Fishing
Arts
Other Services
$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000
$115,403$104,257
$101,201
$104,003
$92,110
$79,268
$75,202
$62,133
$60,116$57,673
$56,277$56,263
$51,570
$41,648
$47,389
$38,466
$34,519
$27,772
$27,529
$19,338
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Share of Massachusetts Payroll (2011:3rd Quarter)
Top 4 Sectors
Employment Sector
Total Employment
Percent of Massachusetts Workforce
Percent of Massachusetts Total Payroll
Health Care 532,934 16.6% 15.3%
Retail Trade 344,751 10.8% 5.3%
Education 282,818 8.8% 8.7%
Manufacturing 254,300 8.0% 10.1%
Source: Massachusetts Office of Labor and Workforce Development, Employment and Wages http://lmi2.detma.org/lmi/lmi_es_asp#IND_LOCATION
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Massachusetts Manufacturing A Diverse Workforce
2005 2010
Source: 2010 American Community Survey
[i] Hispanic includes Hispanics that are foreign-born and native. The same with Asians and African-Americans.
EthnicityShare of Non-Manufacturing Workforce
Share of Manufacturing Workforce
Share of Non-Manufacturing Workforce
Share of Manufacturing Workforce
Foreign Born 15.9% 24.4% 18.3% 26.0%
Hispanic 5.8% 8.3% 7.3% 9.3%
Asian 4.1% 6.5% 5.0% 8.9%
African-American
4.9% 3.8% 5.8% 3.4%
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Proportion of Workforce Age 45 or Older
2000 2006 20100.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
40.5%
49.6%
53.9%
36.1%
41.4%
44.6%
Manufacturing All other industries
Source: American Community Survey, Public Use Files, 2006, 2010, Tabulations by Center for Labor Market Studies and Dukakis Center for Urban and Regional Policy, Northeastern University
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Job Openings
• Given retirements and normal employee turnover, Massachusetts manufacturers will need to find 100,000 new workers over the next ten years to replace current workforce
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Expected Production Levels of Massachusetts Manufacturing Firms over the Next Five Years (2012
- 2017)
Source: Dukakis Center Manufacturing Survey, 2012
Continued production at increased lev-
els; 65.4%
Continued produc-tion at current levels; 24.4%
Continued produc-tion but at reduced
levels; 7.7%
Cessation of production in Massachusetts; 2.5%
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5 Year Employment Projections of Massachusetts Manufacturing Firms (2012 –
2017)
Source: Dukakis Center Manufacturing Survey, 2012
Expansion of Massa-chusetts Employment
by >25%13%
Expansion of Massachu-setts Employment by 11-
25%22%
Expansion of Massachusetts Employment by 1-10%
35%
Maintenance of Current Employment Levels
23%
Reduction of Massachusetts Employment by 1-10%
4%
Reduction of Massachusetts Employment by 11-25%
1%
Reduction of Massachusetts Employment by >25%
2%
Firms increasing Employment:70%
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Recommendations for Promoting Manufacturing in Massachusetts
Source: Dukakis Center Manufacturing Survey, 2012
RecommendationVery Important
or Extremely Important
Working with School or Community College Instructors to Incorporate Industry Standards into Curriculum
30.3%
Creating a certificate in manufacturing technology 27.5%
Serving as mentors/advisors at selected vocational schools or community colleges
27.4%
Speaking to Parent Organizations/Student Groups About Careers in Manufacturing
24.7%
Contributing Machinery, Tools, or Other Materials to Schools
21.0%
Exhibiting at Education, Career, and Technology Fairs 19.7%
Instituting company-sponsored educational scholarships 14.2%
Hiring vocational/community college teachers to train your employees
11.6%
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Conclusions
• Manufacturing is alive and well in the Commonwealth and has a healthy future
• Closer cooperation between training institutions and manufacturing can fulfill the sector’s need to replace an aging workforce
• Continuing to promote the industry will help secure the Commonwealth’s prosperity for years to come
• Older Industrial Cities will benefit the most