Time’s Up for Changing Kentucky

Adult Education Conference, Lexington Feb. 5, 2008

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A Personal Passion for Education and Manufacturing…

Family BackgroundCultural FoundationCorporate HeritageLove of People

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Manufacturing is Kentucky’s Economic Engine…

Industry Sectors 2004

GSP Percent

Manufacturing $27 20Government $21 15

Real Estate $12 9

Health Care, Social Assistance $11 8

Retail Trade $10 7

Wholesale $9 6

Finance $7 5

Mining $3 2

Agriculture $2 2

*U.S. Bureau of Economic Analysis

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Kentucky Manufacturing

$100 Billion in Sales Ranked 4th in U.S. High wages across Kentucky ($45K Avg.

Annual Salary) Most jobs have excellent benefits

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If Manufacturing Didn’t Exist

260,000 would be jobless or making a lot less money

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If Manufacturing Didn’t Exist . . .

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There are problems…

Kentucky manufacturing is under attack from low-wage nations like China, India and Mexico…

Our workforce needs high-tech knowledge…

We are in danger of losing Kentucky manufacturers who can’t lower costs fast enough and can’t find qualified workers…

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Member Survey - 2007

Kentucky Manufacturers Speak Out About Their Greatest Concerns…

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Workforce Development & Retention

Lowering Taxes

Fewer Regulations

Controlling Costs

Staying Competitive

Controlling Wages & Benefits

Global Competition

Growing the Business

Environmental Compliance

Energy Costs

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Why Can’t We Find Qualified Workers?

1. General Misunderstanding about Economic Impact

2. Old, Outdated Career Image

3. Declining Quality of Job Applicants

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Challenge Number One:

Many of our media, leaders and citizens don’t understand or recognize manufacturing’s IMPACT ON OUR ECONOMY or HOW IMPORTANT IT IS to our future…– Myth: “Dying Industry” – Reality: Output Increased in 2006

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Most Legislators Don’t Understand…

54% of legislators believe industries OTHER THAN manufacturing contribute more to the Kentucky economy*

58% of citizens believe industries OTHER THAN manufacturing hold the key to our future *

*Independent Poll

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KAM’s Strategy to Change Economic Impact Misperceptions

Broadcast Advertising - $2 million in radio and television advertising value across Kentucky in 2007

Print Advertising – Lane Report, Business First, Business Lexington

Public Relations – 12 million message impressions a year

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Challenge Number Two:

Our leaders and citizens have an OUTDATED IMAGE of manufacturing and the CAREER OPPORTUNITIES it presents

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Image of Manufacturing…

Old Image (1960s)– Dirty, Hot and

Sweaty– Low-Skill– Low Pay– Monotonous– Low-Tech– Un-Cool

New Reality (2007)– Clean and Air-

Conditioned– For ‘Smart’ People– Teamwork, Variety– High-Tech– Very “Cool”

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New Poll of Kentucky Teachers….

In Cooperation with the Kentucky Council on Economic Education

– "In general, is this career likely or not likely to provide a good opportunity for your students?"

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KAM’s Strategy to Change Career Image Misperceptions

Marketing Campaign– Phase One: Statewide Radio

Commercials in 2008– Phase Two: Under Development

Partnerships– Big Brothers Big Sisters

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Challenge Number Three:

The QUALITY OF WORKER applying for advanced manufacturing job openings today is DECLINING

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Applicant Quality Issues

No high school diploma Can’t work in teams Can’t solve problems Can’t do math or read well Poor attendance Poor ethics (character, honesty) Drug, alcohol issues Poor work ethic

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Future…The Looming Crisis

Beginning in five years, Baby Boomers will begin to retire, leaving Kentucky advanced manufacturing facilities by the thousands

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That’s Why KAM must have an aggressive VISION…

By 2012, Kentucky will be one of the world’s most desired locations for manufacturers, both new and existing.

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KAM’s Eight Branded Initiatives

1. ProsperousKentuckysm

Keeping manufacturers in Kentucky and attracting new manufacturers here to raise the standard of living for all Kentuckians.

2. ProductiveKentuckysm

Training Kentucky manufacturing workers to out-produce low-wage countries like China, India and Mexico.3. FreedomKentuckysm

Freeing our members from high taxes, regulations, and other constraints that prevent them from winning in the global marketplace.

4. SmartKentucky4. SmartKentuckysmsm

Preparing Kentucky students and adults for well-paying Preparing Kentucky students and adults for well-paying jobs in manufacturing.jobs in manufacturing.

5. HealthyKentuckysm

Reducing Kentucky’s health care costs by encouraging our workers to be safe and healthy.6. HonestKentuckysm

Encouraging honesty and integrity in the manufacturing workplace. 7. CleanKentuckysm

Helping our members balance sustainable growth with the environment and their communities.8. MarketKentuckysm

Helping our members market their products in a competitive global economy.

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KAM’s Strategy to Change Worker Quality Problem (SmartKentuckysm)

Students (Secondary, Post-Secondary)– Legislation

To improve career pathways; math, science and reading skills

– Partnerships Kentucky School Board Association Big Brothers Big Sisters Kentucky Council on Economic Education KCTCS UK Center for Manufacturing Project Lead the Way

– Marketing Campaign

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Solutions?

New Paradigm Shift in Education, both Secondary and Post-Secondary

Pass Some Legislation Get Business Involved with Local Schools A 4-Year Degree is Great, But Not for Everyone Increase high school, technical and college graduation

rates Technical Education = Good, Quality Jobs, RESPECT Find a Way to More Easily Qualify Retiring Boomers to

Teach Technical Education Kentucky Culture: Break Some of the Old Paradigms

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