Developing the Next Generation of Manufacturers

BY JOHN GOODEN AND RUSTYN STOOPS

LAST YEAR was an exciting year for the Delaware Manufacturing Association (DMA), an affiliate of the State Chamber of Commerce and National Association of Manufacturers (NAM).

The year was highlighted by the State Chamber’s Spring Manufacturing and Policy Conference. The half-day, virtual conference featured keynote remarks from Governor John Carney and Kelvin Lee, director of the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL), two panel discussions, and the chance to network.

The first panel addressed the labor shortage here in Delaware and across the country. Scott Malfitano, chair of the Delaware Workforce Development Board, moderated a conversation with some employers and the National Association of Workforce Board’s (NAWB) CEO Ron Painter. The discussion highlighted several factors that are impacting the labor market: aging population, automation, adult learning, and the need for funding.

By 2030, all baby boomers will be 65 or older. With low birth rates and immigration, the exchange rate of people entering the workforce is not keeping up with the exit. In addition to the knowledge and skill gaps that manufacturers are experiencing, it is becoming increasingly more difficult for nighttime/weekend shifts to be filled with workers because child care isn’t offered during those hours.

Automation was also discussed. Painter referenced a study out of Canada, which found that low-skill and high-end positions increased due to automation, while middle skill roles and management decreased. He stressed that with this sort of knowledge, manufacturers need to rethink how they onboard and upskill their workforce when the traditional method of “moving up the ranks” is no longer an option with technology replacing those middle level roles. NAWB estimates that it will cost $80 billion to upskill the American workforce to meet global needs and standards.

So, what’s the solution? The panelists stressed that businesses need to lead on identifying alternative funding and training solutions that work for their people. Investing in your own talent is a sure way to grow your workforce.

The second panel turned toward “what’s working” and how we can build upon successful workforce programs like Zip Code Wilmington, Delaware Pathways, Intern Delaware, and Elevate Delaware. Michael Fleming, president of the Delaware BioScience Association, moderated the conversation with the leaders of these programs to understand how we can build upon successes like these and replicate models that work to address manufacturer’s needs.

Despite challenges and misconceptions, the manufacturing industry in Delaware is strong and growing. According to the Delaware Department of Labor, as of October 2022, the manufacturing industry employs around 26,000 workers in Delaware, and the average annual compensation nationally was $83,882 per NAM’s data. Manufacturers offer individuals great paying careers and opportunities.

In 2023, with the DMA’s support and guidance, the State Chamber will continue to support and advocate for manufacturers’ interests in Dover. Although they didn’t pass, several pieces of legislation were introduced in 2022 that could have had negative impacts on the manufacturing industry including legalization of recreational marijuana and a proposal known as the Community Workforce Agreement. If you’re a manufacturer in Delaware and want to help support and develop the next generation of manufacturers, join the DMA by contacting Tyler Micik at tmicik@dscc.com.