Conclusions

In this report we have presented findings from the VMA Skilled Trades Study. This study was conducted in two phases. Phase 1 involved using existing labor and education databases to provide a preliminary analysis of the scope and magnitude of the problems associated with meeting the demand for skilled trades workers in Virginia. Phase 2 involved surveying Virginia manufacturers to obtain primary data on skilled trades employment, evaluate potential refinements in the occupational categories used to define skilled trades, and compile information on various hiring and training issues.

The adequacy of the skilled trades pipeline has become an issue of increasing importance to manufacturers because a general slowdown in the growth of the U.S. labor force, coupled with a large pending wave of retirements and the increasingly high-tech nature of manufacturing, are making it increasingly difficult to find adequate numbers of skilled trades workers. Absent proactive policy solutions, this combination of events is very likely to create crippling bottlenecks that have the potential to forestall economic growth.

What this study has shown is that job growth in skilled trades is expected to far outstrip employment growth in most other occupations. Moreover, when we compare the estimated number of annual openings in skilled trades with the estimated number of workers graduating from associated training programs, we find that the cumulative shortfall in trained workers between 2007 and 2012 may be as high 11,751 workers. In addition, these training gaps are in some instances further exacerbated by apparent regional imbalances between the demand for trained skilled trades workers and the location of existing training programs.

This study has also demonstrated that the current system used by the Bureau of Labor Statistics for classifying occupations may not accurately reflect the realities of modern manufacturing employment. This is particularly true with respect to the traditional classification Machine Operator. In a modern manufacturing facility, production machinery often means sophisticated multi-million dollar equipment involving the use of robotics and complex numerical controls, as opposed to the comparatively simple mechanical devices of the past. To account for this change, a new occupation classification was put forward in this study – Manufacturing Technician – that refers to individuals who’s job skills must exceed those of a traditional Machine Operator, but are still below those required of a Programmer or Engineer. Results from this study indicate that inclusion of this new occupation classification is overwhelmingly supported by Virginia manufacturers.

This study found that entry-level workers in manufacturing often lack critical skills, including soft skills, measurable skills, and knowledge of basic manufacturing principles. To reduce the problems associated with identifying and addressing these deficits, manufacturers strongly support additional requirements for career and technical education in Virginia’s K-12 education system, and the creation of a statewide credentialing program for manufacturing. Another finding was that the public image of manufacturing occupations significantly contributes to the problems employers experience in recruiting skilled workers.

In closing, the health of the manufacturing industry and its supply chain substantially impacts the economic performance of the Commonwealth. Occupations in the manufacturing industry pay significantly higher wages in many regions of the Commonwealth. These occupations also require substantial skills and the current pipeline of skilled worker training, education and certification is not keeping pace with employer demand. Further, survey responses from Virginia manufacturers indicate that the cumulative gap in trained skilled trades workers for 2007-2012 may be almost five times greater than was previously estimated using available Bureau of Labor Statistics data. According to these survey data, as many as 70,506 additional trained skilled trades workers may be needed by 2012.