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A White PaperFrom the National Association of Manufacturers,

The Manufacturing Institute and Deloitte & Touche

Keeping AmericaCompetitiveHow a Talent Shortage ThreatensU.S. Manufacturing

This publication contains general information only and Deloitte & Touche LLP is not, by means of this publication, renderingaccounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitutefor such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business.Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.

Deloitte & Touche LLP shall not be responsible for any loss sustained by any person who relies on this publication.

© 2003 by the National Association of Manufacturers. All rights reservedPrinted in the United States of America.

The National Association of Manufacturers is the nation’s largest industrial trade association. The NAM repre-sents 14,000 members (including 10,000 small and mid-sized companies) and 350 member associations servingmanufacturers and employees in every industrial sector and all 50 states. Headquartered in Washington, D.C.,the NAM has 10 additional offices across the country.

The Manufacturing Institute is the education and research arm of the National Association of Manufacturers. Itsprograms educate our youth on career opportunities in manufacturing and inform elected officials, policy-makers,the media and the general public on manufacturing’s fundamental importance to the American economy.

Deloitte & Touche’s Manufacturing Industry Practice is a network of nearly 9,500 professionals, serving largenational and multinational companies across the globe. Our practitioners develop and deliver capabilities in thestrategy, operations, financial and information technology disciplines. The breadth and depth of our resourcesgive clients the benefit of our knowledge and best practices across the full manufacturing spectrum, includingaerospace & defense, automotive, life sciences, manufactured consumer products and process and chemicalsectors. For more information, please visit our Web site at www.deloitte.com/us/manufacturing.

contents

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Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

The Growing Talent Shortage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Why the Problem? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

The Manufacturing Reality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Manufacturing at the Crossroads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Keeping America Competitive

Preface

It is by now an overused expression to say that a particular project was a “team effort.” In this case, however, it istrue. The team initially sought to learn more about young people’s career aspirations, but we soon realized thatour research encompassed much more than this: At each stage of the study, kids, parents, educators, publicofficials, business executives and thought leaders told us about their dreams for a better life and what it takes tomaintain a strong and healthy America. As well, they shared with us their anxieties. So we stopped, we listenedand now we have put it all on paper. We hope you will find the result as stimulating to read as we did to research.

It is with gratitude that we thank the following team members:

Juliet Glassroth, Marketing Director, Global Manufacturing Practice, Deloitte & ToucheDuane Higgins, Deputy Director, Global Manufacturing Practice, Deloitte & ToucheDoug Engel, National Manufacturing Industry Director, Management Solutions, Deloitte & ToucheLinda Segervall, Principal, Icon BrandingErica Baccus, President, Baccus CommunicationsBasil Whiting, Senior Fellow, Center for Workforce Success Stacey Wagner, Director, Workforce Initiatives, Center for Workforce SuccessWade Sayer, Director, Business/Education Partnerships, Center for Workforce SuccessBill Canis, Executive Director, The Manufacturing InstituteJoan McConville, Executive Assistant, The Manufacturing InstituteIrina Stepanova, Art Director, Marketing and Creative Services, National Association of ManufacturersJeanne Sano, Assistant Vice President, Marketing and Creative Services, National Association of ManufacturersHank Cox, Assistant Vice President, Communications, National Association of ManufacturersAmy Harris, Editor, National Association of ManufacturersSusan Fridy, President, Susan Fridy Associates

I’d like to direct my special thanks to Dick Gabrys and Jerry Jasinowski for their support and leadershipand Linda Segervall for her excellent writing.

Phyllis H. EisenVice President, The Manufacturing Institute andExecutive Director, Center for Workforce Success

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Editor’s Note

The research that forms the basis of this report was initially intended to explore the possible interrelationshipbetween broadly held attitudes toward manufacturing careers and an apparent lack of qualified job applicantsin the sector. After initial exploration, however, it became clear that it was impossible to consider these issuesoutside the larger context of U.S. manufacturing’s challenges in a global economy. As a result, this report seeksboth to recount the findings of the research that began in July 2002 and to place the results into the broadercontext of the challenges facing manufacturing today.


April 21, 2003

Dear Colleagues and Friends:

It may seem contradictory, but at a time when manufacturing has lost jobs for 32 consecutive months—more than2 million positions in all—we face a looming shortage of skilled manufacturing employees. The stark reality is that thistrend presents a real and growing threat to the ability of the United States to compete in the world marketplace.

Demographic reality tells us that a seasoned manufacturing workforce will soon be passing from the scene, aprocess greatly accelerated by the current manufacturing slump. Yet a new generation of skilled workers is notat hand to replace these retiring baby boomers once the economy returns to solid growth.

So where will we find the next generation of manufacturing workers? Together with The Manufacturing Instituteand Deloitte & Touche, the National Association of Manufacturers (NAM) recently conducted two major researchstudies to address this question. We learned that manufacturing’s image is tied to an old, negative “assemblyline” stereotype. Because of this image, few students across the country are planning to pursue manufacturingas a career. And those who do are not being taught the skills they will need to operate in what is already acomplex, high-tech manufacturing environment.

The result is an alarming mix of conditions that could transform the talent shortage of the 1990s into a genuinelabor crisis. This shift could foreshadow a significant decrease in manufacturing’s competitiveness, accelerate thetransfer of American productive capacity and well-paid manufacturing jobs overseas—and deliver a decisive blowto the nation’s long-term economic prospects.

The NAM has responded by launching a Campaign for Growth and Manufacturing Renewal. One of this initiative’skey goals is “to make manufacturing careers a preferred career option by the end of this decade” through anintegrated awareness, career-planning and public education campaign focused on the skill needs of a technology-driven, global economy. Other components include providing outreach to Congress about the burden of excessiveregulation and litigation and promoting a broader legislative agenda to create an environment more conduciveto growth.

Along with these and other important contributors to a competitive manufacturing sector is a quality workforce.To that end, we commend to you this study, Keeping America Competitive: How a Talent Shortage ThreatensU.S. Manufacturing. And we urge you to join the movement to save America’s manufacturing base and restoreour position as the world’s most powerful and productive economy.

Sincerely,

Jerry Jasinowski Dick GabrysPresident Vice Chairman and Global Manufacturing LeaderNational Association of Manufacturers Deloitte & Touche

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executive summary

Manufacturers in the United States areinnovative, productive and efficient. Fordecades the manufacturing sector hasbeen the center of strength of theAmerican economy and its prospects forfuture growth. Nonetheless, manufacturingfaces several forces that have sparked aperiod of transformation:

• Global pressures are squeezing U.S.manufacturers as they face brutalcompetition from around the world. Tocontinue to succeed, U.S. manufacturersmust compete less on cost than onproduct design, productivity, flexibility,quality and responsiveness to customerneeds. These competitive mandatesput a high premium on the skills, moraleand commitment of workers.

• Relentless advances in technologyhave infused every aspect of manufactur-ing—from design and production toinventory management, delivery andservice. Today’s manufacturing jobs aretechnology jobs, and employees at alllevels must have the wide range of skillsrequired to respond to the demandsof an increasingly complex environment.

• Demographic shifts portend greatchange ahead. The “baby boom genera-tion” of skilled workers will be retiredwithin the next 15 to 20 years. Currently,the only source of new skilled workersis from immigration. The result is a pro-jected need for 10 million new skilledworkers by 2020.1

In addition, a long-term manufacturingemployment and skills crisis is developing,one with ominous implications for theeconomy and national security. The loss ofmore than 2 million manufacturing jobsduring the recent recession and anemicrecovery masks a looming shortage ofhighly skilled, technically competentemployees who can fully exploit thepotential of new technologies and supportincreased product complexity.2

A study of workforce issues in manufac-turing was conducted by the NationalAssociation of Manufacturers at the onsetof the recent recession and published in itsThe Skills Gap: Manufacturers ConfrontPersistent Skills Shortages in an UncertainEconomy 3 report. The study revealed thatmore than 80 percent of the surveyedmanufacturers reported a “moderate toserious” shortage of qualified job appli-cants—even though manufacturing wassuffering serious layoffs. In sum, whatmanufacturing is facing is not a lack ofemployees, but a shortfall of highlyqualified employees with specific edu-cational backgrounds and skills.

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American Youth Are ‘Turned Off’ byModern Manufacturing

To uncover the reasons behind the talentshortfall and identify why fewer youngpeople appear to be entering careers inthis sector, the National Association ofManufacturers, The Manufacturing Instituteand Deloitte & Touche recently conductedtwo major research studies.4 The findingsreveal a troubling picture. Among ageographically, ethnically and socio-economically diverse set of respondents—ranging from students in middle schoolthrough college, parents and teachersto policy analysts, public officials, unionleaders and manufacturing employeesand executives—the sector’s image wasfound to be heavily loaded with negativeconnotations and universally tied to an oldstereotype of the “assembly line,” as wellas perceived to be in a state of decline.

When asked to describe the images asso-ciated with a career in manufacturing,student respondents offered phrases suchas “serving a life sentence,” being “ona chain gang” or “slave to the line,” oreven being a “robot.” Even more telling,most adult respondents said that people“just have no idea” of manufacturing’scontribution to the American economy.

The research also explored what today’syoung people are looking for in their

careers, how they make career choices andhow well today’s educational programssupport successful preparation for careersin manufacturing. With near unanimity,respondents across the country saw manu-facturing opportunities to be in starkconflict with the characteristics they desirein their careers—and as a result, they donot plan to pursue careers in manufacturing.

Our Education SystemIs a Weak Link

The research also emphatically showedthat the United States’ educational systemexacerbates the negative perception ofmanufacturing, because it is largely outof step with the career opportunitiesemerging for young people in today’seconomy, including those in manufacturing.The United States sends more than two-thirds of its high-school graduates tocollege, but half of them drop out. Theeducational system fails to engage thesestudents and help them enter alternativepost-secondary programs. For thosewho do graduate, one-third fail to findemployment requiring a four-year degree.Meanwhile, many well-paid and rapidlyincreasing manufacturing jobs remainunfilled, including those requiring two- andfour-year technical degrees or short-termskill certificates.

The Good News

The reality of manufacturing is vastly differ-ent from its image. Today’s manufacturingcompany is a major source of high-techinnovation, wealth creation and exciting,varied careers. Manufacturing contributesmore than one-quarter of the nation’s totaleconomic output. It grew at an annual rateof 4.6 percent in the 1990s, compared tothe economy-wide average of 3.6 percent.5

In fact, every $1 million in manufacturingsales supports eight jobs in manufacturingand six in other, allied sectors. Manufac-turing’s varied jobs and careers averaged$54,000 in total compensation in 2000—20 percent higher than the average

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Exec

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compensation for all American workers—while 83.7 percent of manufacturingemployees receive health benefits fromtheir employers, more than any othersector except government. 6

The Challenges

To remain strong and continue to thrive ina highly competitive environment, U.S.manufacturing must surmount many chal-lenges. High on that list is a need to attracta new generation of manufacturingemployees prepared for 21st-century jobs.Our research results were clear: Manufac-turing is severely challenged by an old,negative image; an education and trainingsystem that does not understand or pro-mote careers in manufacturing; and publicpolicies that are not supportive of a robustmanufacturing sector.

Unless the industry finds a compelling wayto communicate a positive image andaddress education and training issueseffectively, manufacturing could experiencea shift from merely having a talent shortageto facing a serious labor crisis. This couldforeshadow a significant decrease in manu-facturing’s competitiveness and acceleratethe movement of American productivecapacity and well-paid manufacturing jobsoverseas. These events could deliver adecisive blow to an already fragile economyand even undermine national security.

Manufacturing industries must quicklyaddress these problems. Other industriesand sectors such as health care are organ-izing to address similar skills issues. Manu-facturing must do likewise. To this end, theNational Association of Manufacturers(NAM) has committed “to make manufac-turing careers a preferred career optionby the end of this decade” through anintegrated awareness, career-planningand public education campaign. The NAMalso will energetically advocate for educa-tion, training, taxation, regulation, tradeand monetary policies that will enablemanufacturing to maintain its position atthe core of a productive U.S. economy.

The urgent goal is to energize andfocus the sector’s many resources tosolve its common problem. To that end,the NAM has issued four challenges:

• To the President of the UnitedStates: Declare U.S. manufactur-ing a national priority.

• To the United States Congress:Establish “National ManufacturingDay” to recognize this priority.

• To manufacturers in the UnitedStates: Open your plants andfacilities to young people,teachers and parents on NationalManufacturing Day.

• To educators in the UnitedStates: Bring your studentsand guidance counselors to amodern manufacturing facility onNational Manufacturing Day.

U.S. manufacturing can emerge fromthis period of transition stronger andbetter equipped to compete on aglobal basis and maintain its corecontributions to the Americaneconomy. The NAM invites all inter-ested parties to join in this effort.

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Executive Summ

aryKeeping America Competitive

the growing talent shortage

While not always recognized as such, themanufacturing sector has long been theengine driving and maintaining much ofthe U.S. economy’s growth. Intense com-petition from the globalization of themanufacturing marketplace, changingdemographics and the relentless advance-ment of technology, however, has chal-lenged U.S manufacturing. The result hasbeen a dramatic increase in the sector’sneed for highly skilled, technically savvyemployees who can fully exploit theproductive potential of advanced tech-nologies and support increased qualityand product complexity. This need, in turn,has generated a talent shortage—fromengineers and R&D professionals to skilledproduction workers and plant managers—even in the face of a loss of more than2 million jobs in the recent recession.

One of the impacts of this issue is clearlyseen in the Center for Workforce Successresearch study The Skills Gap: Manufac-turers Confront Persistent Skills Shortagesin an Uncertain Economy. The centralfinding of this report, based on a surveyconducted at the onset of the recentrecession, is that the sector is not effectivelycompeting for highly skilled employees,with more than 80 percent of the largeand small manufacturers polled reportinga “moderate to serious” shortage of quali-fied job applicants.

The most critical shortages of employeesidentified were in production and thedirect support of production, includingengineering and skilled crafts. Manufac-turers also cited shortages in technical skills;

2.inadequate basic employability skills; andinadequate reading and writing skills amongboth job applicants and incumbent workers.

These skill deficiencies impaired manufac-turers’ ability to maintain production levelsto meet customer demand, implement newproductivity improvements or deploy qualityinitiatives. In fact, some manufacturers saidthey could not accept new orders becausethey lacked the workers to produce theirproducts. This shortage of skilled workersparticularly hampered smaller firms. Somereported that they could not scheduleneeded second or third shifts for the samereason. Others reported that they hadadvertised extensively for employees withspecific skills—such as welders or electri-

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Source: The Skills Gap 2001

Moderate shortage60.3%

No shortage19.5%

Serious shortage20.2%

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Figure 1.Availability of Qualified Job Candidates

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cians—and could not find acceptable can-didates, or they hired entry-level workerswhose skills were barely adequate.

While manufacturing’s current situation isdifficult, it may soon get worse. A researchstudy conducted by the Educational TestingService shows that the U.S. economy as awhole will face a growing shortage ofskilled workers in the coming decade. Theshortage for jobs requiring at least somedegree of post-secondary education ortraining will exceed 10 million in the seconddecade of this millennium.

This projected shortfall in the skilled-laborforce is largely due to the interaction ofdemographics and technology and thefailure of the educational system to keepup with the needs of manufacturing.Unfortunately, the sector’s need for tech-nically savvy employees comes at a timewhen experienced “baby boomer”employees will be retiring in large numbersand are being replaced with a relativelysmaller pool of U.S.-based workers whooften lack the appropriate technical skills.

This trend is increasingly garnering nationalattention, with a recent Time magazinearticle stating, “Though the average retire-ment age is creeping up…demographerssay there still will not be enough qualifiedmembers of the next generation to pick upthe slack. So with 76 million baby boomersheading toward retirement over the nexttwo decades and only 46 million ‘Gen Xers’waiting in the wings, corporate America isfacing a potentially mammoth talent crunch.Certainly, labor-saving technology andimmigration may help fill the breach. Still,by 2010, there may be a shortage of4 million to 6 million workers.” 7

These factors, when taken together, deepenthe concern that many manufacturers didnot successfully compete for talent in the1990s and even in the current recession.Competition will only intensify in the nextdecade. This means that competentmanagers, engineers, technicians, skilledcraftspeople and front-line workers will bein even greater demand.

Career Opportunities in Manufacturing

Electrical EngineerEngineers are responsible for the design and/ormaintenance of products. Most electrical engineersspecialize in an area: power generation, transmission ordistribution; communications; electrical equipmentmanufacturing; or a subdivision of these areas such asindustrial robot-control systems or aviation electronics.They work with technology to build new communi-cations systems such as broadband or new wirelesstechnology. Others look for new sources of power orways to make the sources we have more efficient.

Salary (median annual earnings): $64,910 in 2000

Number Employed: 288,000 in 2000

Job Growth: increasing by 10 to 20 percentthrough 2010

Level of Education: college degree

Product Marketing ManagerMarketing managers coordinate market research, mar-keting strategy, sales, advertising, promotion, pricing,product development and public relations activities.They develop the firm’s detailed marketing strategy.With the help of subordinates, including product-development managers and market research managers,they determine the demand for products and servicesoffered by the firm and its competitors and identifypotential markets (e.g., business firms, wholesalers,retailers, government or the general public).Theydevelop pricing strategy with an eye toward maximiz-ing the firm’s share of the market and its profits whileensuring that its customers are satisfied.They monitortrends that indicate the need for new products andservices and oversee product development.


Number employed: 190,000 jobs in 2000

Job Growth: faster than the average through 2010

Level of Education: bachelor’s degree in businessadministration with an emphasis on marketing

Source: Occupational Outlook Handbook, 2002-03 edition, Bureau ofLabor Statistics, U.S. Department of Labor

The Growing Talent Shortage


Entry-level production employees

Operators

Machinists

Craft workers

Technicians/electricians

Engineers

Plant managers

Computer programmers

IT professionals

IT technicians

Sales and marketing professionals

Human resource personnel

Accounting and finance professionals

General managers

Scientists/R&D workers

0% 20% 40% 60% 80% 100%

37.1% 46.7% 16.3%

24.7% 54.8% 20.5%

24.7% 34.1% 41.2%

23.2% 34.4% 42.5%

24.9% 41.1% 33.9%

34.8% 45.2% 20.0%

49.4% 35.6% 15.0%

45.4% 37.9% 16.7%

45.6% 36.2% 18.2%

51.0% 36.7% 12.3%

48.0% 42.8% 9.3%

63.6% 33.7% 2.7%

50.8% 38.3% 10.9%

52.4% 34.0% 13.6%

66.6% 30.1% 3.3%

No shortage Moderate shortage Serious shortage

Figure 2.Availability of Qualified Candidates by Job Category

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Source: The Skills Gap 2001

Manufacturers continue to report a lack ofqualified job applicants in several keycategories. These skill deficiencies impairmanufacturers’ ability to maintain produc-tion levels to meet increasing customerdemand, implement new productivityimprovements or begin new innovativequality initiatives.

Not surprisingly, the hardest hit regionswere the central states—a traditionalcenter of manufacturing—and the West.For all respondents, the most seriousshortages specifically identified were inproduction and direct-support fields(Figure 2): entry-level production employees(63 percent call their need “moderate orserious”); craft workers (77 percent calltheir need “moderate or serious”); opera-tors (75 percent call their need “moderateor serious”); and machinists (75 percentcall their need “moderate or serious”).In addition, 49 percent of respondents saidthey have a “moderate or serious” needfor IT technicians. Larger companies reporta greater deficiency of skills in almostall job categories (except in the three cate-gories of operators, entry-level productionemployees and sales/marketing profes-sionals) in their available workforce.

Taken together, these skill shortages placethe United States at a competitive dis-advantage in an increasingly competitiveglobal market.

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To explore the reasons behind manufactur-ing’s shortage of high-quality, productiveemployees and identify why fewer youngpeople are seeking careers in this sector,the National Association of Manufacturersand Deloitte & Touche conducted twonationwide qualitative research studies inJuly and August 2002. The primary findingof the focus groups, among a geographi-cally, ethnically and socio-economicallydiverse set of respondents—ranging fromstudents in middle school through college,to parents and teachers, to manufacturingemployees and executives—was that thesector’s image was found to be heavilyloaded with negative connotations anduniversally tied to a stereotype of the“assembly line.” As well, it was perceivedto be in a state of decline. In addition,most respondents said that people “justhave no idea” of manufacturing’s contribu-tion to the American economy.

Student Perceptions

When asked to describe the images thatthey associate with a career in manufactur-ing, student respondents quickly andconsistently offered phrases such as “pro-duction or assembly line” work in a “factory”or “plant” that is “repetitious,” “boring,”“tedious,” “dangerous,” “dark” and “dirty.”They felt that manufacturing required“hard work” and “long hours,” but providedonly “low pay,” with “no chance for pro-motion” or “benefits.” Others equated acareer in manufacturing to “serving a lifesentence” and being “on a chain gang,”“slave to the line” or even a “robot.”

Consistent with the views of respondentsacross the country, one college studentfrom New Jersey said, “If I had to just putthe products together on the assemblyline, that sounds like it would be torture.”

In equally unambiguous language, respon-dents indicated that they felt that a careerin manufacturing was “not ambitious,”“settling for less” and certainly “not some-thing you dream about.”

Parent and Teacher Perceptions

Such perceptions by students are less sur-prising when one considers the views heldby parents and teachers. A diverse mix ofeducators and parents universally echoedthe same types of images about a career inmanufacturing, suggesting that it is “darkand dirty,” “hard physical” or “manuallabor” offering “poor pay.” Others called acareer in manufacturing “outdated” andonly appropriate for the “past generation.”Many educators viewed manufacturingas “not being a growth area in the U.S.economy” and “not something yougo to college for.” They therefore did notrecommend it as a career choice.

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When asked about a career in manufactur-ing for their children, one parent in LosAngeles said, “That is one of those jobsyou don’t want your kid to have. Low pay.No respect.” Another suggested that she“… thinks of the sweat shops of the KathyLee clothing line. I wouldn’t want mydaughter to work for a company like that,even if she were an executive.”

One K-8 educator in Alabama suggested,“The manufacturing jobs I’ve seen, youdon’t need a fourth-grade education for.I wouldn’t recommend a career in manufac-turing to any of these college-bound kids.”

Across each group of respondents, it wasabundantly clear that the phrase “a careerin manufacturing” implied the function ofassembling products rather than calling tomind one of manufacturing’s many profes-sional, executive or highly skilled positionssuch as an engineer, cost accountant, productmanager, designer, research and develop-ment professional or sales representative.

Manufacturing EmployeesAnd Executives

The habit of identifying manufacturing withthe assembly function was also evidentamong those adults who work in the manu-facturing sector. In fact, manufacturing isso heavily associated with the assemblyline that even sector executives did notpersonally identify with “manufacturing,”

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Career Opportunities in Manufacturing

Robotics TechnologistRobotics technologists design, develop and manufac-ture robots for all sorts of industries. Robots are usedin a variety of industries ranging from manufacturingto space.They have become a huge part of manufac-turing life and are used in situations that could bedangerous for humans. Robotic technologists usecomputers to design robots.They spend hours assem-bling robots and testing them to make sure theyconform to the tasks at hand.




Level of Education: degree from a technical school

Industrial EngineeringTechnologistIndustrial engineering technologists are known bymany names. Depending on their responsibilities, theycan be called operations management technologists,operations research technologists or production controltechnologists.They can also be called quality assurancetechnologists or time study technologists. Industrialengineering technologists study the interactionbetween people, material and machines.They lookat how efficiently and effectively people, machines andmaterials are used in factories. Industrial engineeringtechnologists prepare layouts of machinery and equip-ment, plan the flow of work, make statistical studiesand analyze production costs.




Level of Education: college degree

Source: Occupational Outlook Handbook, 2002-03 edition, Bureau ofLabor Statistics, U.S. Department of Labor

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consider themselves to be “manufactur-ing professionals” or even view theirindustry as part of manufacturing. Rather,they identify with their discipline insidethe company, such as finance, marketingor engineering.

Influence of Popular Culture

Clearly, the perceptions of all respondentswere also informed by the broader culture.Students frequently cited TV shows suchas “Laverne & Shirley,” “I Love Lucy” (thefamous episode of the chocolate factory)and “Roseanne” as having negatively influ-enced their view of manufacturing.

Respondents also noted that there are notelevision programs or movies showingattractive examples of manufacturing pro-fessionals or settings, in contrast to manyother occupations and sectors. As one LosAngeles college student said, “Roseanne…worked in a factory. It provided for somefunny episodes, but not a good image formanufacturing as a career choice.”

In addition, respondents associated manu-facturing with frequent news reports ofaccounting scandals, layoffs, jobs movingoffshore, pollution, plant closures andlabor-management conflicts. Another com-mon perception reinforced by the mediais that manufacturing is part of the “oldeconomy,” in rapid decline and moving toThird World countries. “Things just aren’tseen as made in America anymore,” onerespondent said. Students, parents, educa-tors and manufacturing executives allwondered why one should seek a careerin manufacturing if it is “not going to bethere for long.”

Limited Positive Images

Respondents also noted that, overall, theyknew little about manufacturing. Manyindicated that manufacturing was “invisi-ble,” being physically located “out ofsight” in rural industrial parks or innercities. If anything about manufacturing wasknown, this awareness was strongly tied

to regional influence, with respondentsidentifying only those “factories” encoun-tered in their areas. San Francisco respon-dents knew about biotech, pharmaceuticaland software companies; New Jerseyrespondents were aware of steel and heavymanufacturing; Texans listed energy andoil; and Alabamans were familiar withcotton mills and chicken farms.

The “poster child” for the lack of aware-ness about manufacturing was a freshmanat the University of Michigan who plans tostudy mechanical engineering. He hopesto work for General Motors Corporation,but had not known that it is a manufacturer.

In addition, respondents suggested thatthe umbrella term of “manufacturing”is inherently vague, unlike specific sub-sectors such as electronics, automotiveand chemicals, with which people morereadily identify. Few respondents identifiedmanufacturing with high technology orinnovation. Hardly anyone saw manufac-turing as critical to maintaining a strongnational defense.

Importance of Career Planning

The second major area that the researchstudy addressed was the importance thatstudents assigned to the career-planningprocess. Somewhat surprisingly, theresearch showed that students as young

Why the Problem

?Keeping America Competitive

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as 12 years already had a sense of urgencyabout the career-planning process.

As one middle-school boy in Austin, Texas,said, “It’s important to me because a goodcareer will mean that I can have a placeto live in and a nice life,” while a Texasmiddle-school girl said planning wasimportant because “in my future, mostof my life will revolve around my career.”

Student Career Goals

The research also asked students to listand rank the relative importance of thecriteria used to choose a profession.Consistently, students said their careerchoices were based on their “interests,”a desired “quality of life” and, thirdly,“financial rewards.” A college student inNew Jersey summed it up by saying, “… Itis important for us to like what we do.We equate ‘interests and quality of life’with happiness. In choosing my career,I hope to find happiness and fulfillment.That has to do with interests and qualityof life together.” While another said, “Weall value ‘quality of life.’ You can’t reallybe happy unless you have a decent qualityof life. And that, in turn, means you mustseek ‘financial rewards,’ because you can’tbe happy if you are constantly struggling.”

Somewhat surprisingly, financial rewardstook a back seat to leading a fulfilling andhappy life. A high-school girl in Austin,

Texas, said, “If you’re gonna make a lot ofmoney, yeah, that is rewarding. But if youhate doing it, how much ‘quality of life’are you gonna have? It is a combinationof all of them.”

Interestingly, male respondents were morefocused on being happy, while girls soughtcareers that would allow them to be inde-pendent and self-supporting. “Financially,I want to be able to take care of myselfand have a good ‘quality of life’ … I don’twant to have to depend on my husband.I want my own money,” said another high-school girl in Austin, Texas.

And while “prestige” was not directlyranked as an important career-selectioncriterion, the discussions revealed thathaving a respected career was important.

As a college student in New Jersey said,“Manufacturing doesn’t sound prestigious;I guess that is a big part of it. But if youcould design the product, or have input asa mechanical engineer changing the waythat cars are made, that would be cool.”

In addition, students are motivated byhaving the “freedom to choose” andbeing flexible in their careers. They seekcareers where they think they can becreative, exert some control over their livesand still be unique. They do not want“cookie cutter” jobs. And most of all,they need to feel a connection to the endresult—to feel “emotionally rewarded”for the life they lead at work.

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