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MFGUTAH ISSUE 3 | WORKFORCE ISSUE | 2021

WORKFORCE-

Finding Tomorrow’s Talent, Today OFFICIAL PUBLICATION OF THE

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UTAH MANUFACTURERS ASSOCIATION 2021 BOARD OF DIRECTORS UMA CHAIRMAN

6 6

Jim Divver

ZionsASSOCIATION Bank UTAH MANUFACTURERS Brent Reddekopp Powerblanket Alex Dobsky 2021 BOARD OF DIRECTORS

1ST VICE CHAIR UMA CHAIRMAN Clint Morris Lifetime Products Brent Reddekopp Powerblanket

2ND VICE CHAIR 1ST VICE CHAIR Natalie Kaddas Kaddas Enterprises Clint Morris Lifetime Products

SECRETARY/ 2ND VICE CHAIR TREASURER Natalie Kaddas Johnny Ferry Kaddas Enterprises Honeyville, Inc.

SECRETARY/PAST IMMEDIATE TREASURER CHAIR Johnny Ferry Doug Dahl Honeyville, The BoeingInc. Company

IMMEDIATE PAST UMA PRESIDENT CHAIR Todd R. Bingham

Utah Association DougManufacturers Dahl The Boeing Company

DIRECTORS: UMA Travis PRESIDENT Aardema

Swire Coca-Cola, Todd R. BinghamUSA Utah Manufacturers Association Steve Allred Liberty Safe

DIRECTORS:

Bryan Anderson Travis Aardema Rocky Mountain Power Swire Coca-Cola, USA Erin SteveBarry Allred Merit Medical Liberty Safe Brett BryanBarton Anderson Fresenius Medical Care Rocky Mountain Power Blair Blackwell Erin Barry Chevron Merit Medical Brett Burningham Barton Hydro Engineering Fresenius Medical Care Mark Coy Blair Blackwell Setpoint Chevron LLC Doug Dilley Brett Burningham Parker Hannifin Hydro Engineering Corporation Mark Coy Setpoint LLC Doug Dilley Parker Hannifin Corporation

Mity, Inc.

Michael Gleason Jim Divver Hexcel Zions Bank Karen Griffin Jas. Easton, Inc. AlexD. Dobsky Mity, Inc. Todd Groll Orbit Michael Gleason Hexcel Mike KarenHenry Griffin Northrop Grumman Jas. D. Easton, Inc. Kirk ToddHolden Groll Autoliv Orbit Bill Johnson Mike Henry Barnes Bullets Northrop Grumman Jace Johnson Kirk Holden Key Bank Autoliv Chris Locke Bill Johnson Nucor BarnesSteel Bullets Jeff JaceLowe Johnson Inovar Key Bank Shawn Newell Chris Locke Industrial Supply Nucor Steel Frank Peczuh Jr. Jeff Lowe Peczuh Inovar Printing Eric Pope Shawn Newell U.S. Synthetic Industrial Supply Brad FrankShafer Peczuh Jr. Marathon Petroleum Company Peczuh Printing Merrill Stoddard Eric Pope L3Harris Technologies U.S. Synthetic Richard Stonely Brad Shafer BD Medical Marathon Petroleum Company Mark MerrillWalker Stoddard EnergySolutions L3Harris Technologies Andrew Walls Richard Stonely Edwards Lifesciences BD Medical Matt Mark Wardle Walker JD Machine EnergySolutions Steve Young Andrew Walls Holland Hart Edwards&Lifesciences Matt Wardle JD Machine Steve Young Holland & Hart

16 20 Table16 of Contents 20 Table of Contents: 5

A Second Chance in Manufacturing Pays Dividends NAM News Room President’s Message — Reflect and Look Forward

6 Table of Contents:

Workforce Training and Education 7 President’s Collaborations for a Post-Pandemic Economy Message — February 2021

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Todd Bingham, Rick Bouillon, SLCC UMA President/CEO Reflect and Look Forward Appointed February 2021 to NAM Board UMA Staff 2021 UMA Chairman the Board June 2021 Todd Bingham, UMAof President/CEO Brent Reddekopp, President of Powerblanket Appointed to NAM Board Utah’sPaycheck TechnicalProtection Colleges Manufacture a SBA’s 2021 UMA Chairman of the Board Skilled Workforce Program Can Help Preserve Brent Reddekopp, President of Powerblanket Jim Taggart, President, Ogden-Weber Technical College

Manufacturing Payrolls By Cece Mitchell SBA’s Paycheck Ladder Safety- Protection Program Can Help Preserve Workers Compensation Fund June 2021 Manufacturing Payrolls Non-COVID Workplace Fatalities on the Rise By Cece Mitchell

How aMarket Continuous Improvement Fair made Using Demand to Manage 17 16 a Factory’s CI Culture Go Viral! on the Rise Levels 14 Production Non-COVID Workplace Fatalities June 2021 Larsen Dr. Tulinda

Market Demand to Manage The Employer Labor Crisis 10 Ways to Make Continuous 16 Using 21 Production Levels 20 Improvement STICK! Chanel Flores, Deputy Director UAMMI Dr. Tulinda Larsen Cedro Toro

10 Ways to Make Continuous Lockton Companies Grows SLC 20 23 Improvement STICK! Operations 24 UMA Service Directory Cedro Toro Lockton Salt Lake City

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.3 million men and women, contributes $2.32 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Workforce - Finding Tomorrow’s Talent, Today. By NAM News Room, National Association of Manufacturers One of manufacturers’ top concerns is the insufficient number of skilled workers available to fill their open jobs. Yet right before us is an often-overlooked pool of millions of potentially strong employees: people with criminal records. That’s why The Manufacturing Institute has partnered with Stand Together and the Charles Koch Institute to promote “second chance” hiring—to get these workers who need jobs into jobs that need them. Recently, the MI hosted its first webinar on the importance of this initiative and what manufacturers should know about it. The data: One in three Americans has a criminal record, and yet this entire population is frequently discounted outright during employer job searches due to societal stigma and general misperceptions. During the webinar, the panelists shared some additional data: •

Of the approximately 19 million Americans with felony convictions on their records, some 1 million are incarcerated and some have aged out of the workforce, said Jeff Korzenik, author of “Untapped Talent: How Second Chance Hiring Works for Your Business and the Community” and chief investment strategist for Fifth Third Bank. “But millions are of working age, [and] virtually all of them are unable to participate to

the fullest extent of their possibility, of their talents, because of barriers.” Talent shortage: 814,000 manufacturing jobs were unfilled as of May, according to the Bureau of Labor Statistics. •

•

“Manufacturers continue to tell us that attracting and retaining workers remains one of their top challenges,” said MI Executive Director Carolyn Lee during the webinar. 2.1 million manufacturing jobs could go unfilled by the end of the decade if current trends continue, according to a recent MI and Deloitte study, and that “could mean the loss of up to $1 trillion in lost economic impact for the U.S.”

Worth the work: Employers who identify and support a strong candidate with a criminal record “get an employee who is on average more engaged and more loyal” than other workers, said Korzenik, who called this method of hiring the “second chance model.” This can lead to higher retention rates, saving an organization on turnover costs, he added. •

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The model, which Korzenik developed, both identifies characteristics likely to lead to successful employment (strong character, soft and hard skills) and provides support processes

(such as help with transportation to and from work) to help bridge gaps. Living proof: Webinar panelist Cory Webb is a recent graduate of the Cuyahoga County, Ohio–based ACCESS to Manufacturing Careers, a program that trains both young people and people with criminal records for careers in manufacturing. He considers himself a testament to ACCESS’ success. •

“I started this program because I thought it would be a great opportunity for me to gain a career in manufacturing and machine operating,” said Webb, now an auxiliary operator for program participant Jergens Inc. The initiative “did a pretty good job as far as getting me prepared … for machine operating,” he said.

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Workforce Training and Education Collaborations for a Post-Pandemic Economy Rick Bouillon, Associate Vice President, Workforce & Economic Development, SLCC Prior to the pandemic, Utah was experiencing a robust economy with significant growth and a 2.7% unemployment rate. While the impact of COVID-19 was significant on several industries, Hospitality and Tourism took the largest hit as the state’s unemployment rate peaked at 9.9%, but for only a couple of months. Utah lead the nation in rebounding from the economic hit and has now dropped to under 3.0% in the Summer of 2021. As a result, the workforce environment has changed. In the great State of Utah, highly organized collaborations have been created to address the workforce needs. The Utah State Legislature, Governor’s Office of Economic Opportunity (Go Utah), Talent Ready Utah, Utah System of Higher Education and its sixteen member institutions have come together in multiple ways to assist community members, companies and industries in recruiting and preparing for a new, more inclusive workforce. The agencies listed above have taken a parallel approach with two primary funding initiatives; Learn & Work in Utah (Round Two) to assist individuals in preparing for high wage, high demand occupations and through Utah Works in assisting the training needs of those newly hired employees within several companies in a wide array of Advanced Manufacturing environments. Salt Lake Community College has always played a significant role in workforce preparation and training delivery for generations and now more than ever, 7

supporting our community is paramount. In the Learn & Work in Utah initiative, www.slcc.edu/allin seventeen programs in seven industry sectors are now available for members of our community to participate tuition FREE. Career training for high wage, high demand occupations in Advanced Manufacturing, Public Safety, Energy, Transportation, Healthcare, Technical Training and IT are ready for students to enroll and start their career path to sucess. Companies associated with Utah Works are being assisted with funding for the new employees onboard training and education. (Albany Advanced Composites, Boeing Company, BD Medical, Merit Medical, Stadler Rail, Kaddas Enterprises) have weathered the pandemic and are now re-emerging stronger than before. Once hired by one of the partner companies, new employees will be sent to SLCC in order to receive specifically designed onboard technical training so they will be more efficient and productive once they arrive at their new career destination. All trainings have been designed by leading industry professionals in collaboration with SLCC trainers and workforce content designers. More information regarding the programs supported by Utah Works can be found at www.slcc.edu/continuinged. While Learn & Work in Utah and Utah Works have been primarily designed for adult learners, High School students have not been forgotten. In fact, an emphasis has been placed on the creation of Youth

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Apprenticeship Models. Funding from 2020 House Bill 68 was passed so that funding for new opportunities throughout the state can be made available for all Secondary students. One model that will replicate is the Apprenticeship at Stadler Rail —partnering with Salt Lake City School District and Salt Lake Community College high school seniors can participate in a three-year program culminating in an Associate Degree of Applied Science, Advanced Manufacturing at SLCC. This has proven to be an excellent way to introduce and engage our youth in Advanced Manufacturing and its associated career opportunities. This special funding allows for access and opportunity for youth and for companies to meet their workforce “Long Game” in that a new generation of Utahns will be exposed to dynamic and well paying career options. The state of Utah has and continues to prove that highly collaborative, well designed approaches provide for better, more effective solutions. The pandemic threw our world in a tailspin for over a year, but luckily our economy and community will emerge more flexible, innovative and modernized. It’s time to move forward!

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JULY 2021

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Custom Fit - It’s for your company! The Custom Fit Program Provides: • Utah companies with flexible, customized training for their employees, tailored to meet specific employer needs. • Discounted training costs by 20-50%. • Training opportunities for large and small companies across all industries including, but not limited to, manufacturing, mining, construction, service, processing, technology and healthcare. • Support of economic and workforce development, and facilitates the creation of new jobs in the state.

Contact your Custom Fit representative today to receive help with your training needs. Ogden-Weber Technical College Kristina Tolson (801) 612-4178 custom.fit@otech.edu

Cache Rich

Box Elder Weber Morgan

Davis

Daggett

Summit Salt Lake

Salt Lake Community College Diana Guetschow (801) 957-5299 diana.guetschow@slcc.edu

Wasatch

Tooele

Duchesne Utah

Juab

Uintah

Tim Chamberlain (435) 283-7372 tim.chamberlain@snow.edu

Carbon

Snow College Richfield

Sanpete Millard

Emery

Grand

Sevier

Beaver

Piute

Iron

Christine Hanks (435) 893-2252 christine.hanks@snow.edu

Southwest Technical College

Wayne

Nicole Mayerhofer (435) 865-3926 customfit@stech.edu

Garfield San Juan

Washington

Snow College Ephraim

Kane

Bridgerland Technical College Sterling Petersen (435) 750-3147 spetersen@btech.edu

Tooele Technical College Mark Walker (435) 248-1895 mwalker@tooeletech.edu

Uintah Basin Technical College Lezlee Whiting (435) 725-7109 lezlee@ubtech.edu

Davis Technical College

Utah State University Eastern Moab

Jean Fowler (801) 593-2318 custom.fit@davistech.edu

Nara Bopp (435) 248-2362 nara.bopp@usu.edu

Dixie Technical College

Utah State University Eastern Price

Dillon Hurt (435) 674-8639 dhurt@dixietech.edu

Austin Preston (435) 613-5460 austin.preston@usu.edu

Mountainland Technical College

Utah State University Blanding

Kelly Stone (801) 753-4264 kstone@mtec.edu

Meghan McFall (435) 678-8102 meghan.mcfall@usu.edu

Utah’s Technical Colleges Manufacture a Skilled Workforce By Jim Taggart, President, Ogden-Weber Technical College

Community visionaries in Weber County realized the need for a school that would teach people technical skills to help them rapidly enter the workforce. As a result, the Utah Skills Center North was “born” on April 23, 1971, serving 93 students in the old Madison Elementary School in central Ogden. Six name changes later, the Ogden-Weber Technical College now serves over 6,000 students a year on a 110-acre main campus, with a satellite campus at Business Depot Ogden. While the college name and location has changed over the past 50 years, the one constant has been the singular mission to meet the needs of Utah’s employers for a technical-skilled workforce and to promote local and statewide economic development by providing market-driven technical education. The state’s eight technical colleges and the technical education programs at Salt Lake Community College, USU-Eastern and Snow College exist to provide employer-driven programs to meet the specific workforce needs in every region of the state. As the world shifts to a skills-based economy, Utah’s technical colleges continue to innovate to meet current and future needs of Utah’s workforce. To increase access, Utah’s technical colleges have low tuition for adults. Recognizing the need to build an expanding pipeline of technically-skilled employees, high school students can attend the technical 11

colleges tuition-free. Many of these early-college students complete a college certificate prior to graduating from high school. The result is that technical college students graduate debt-free. Utah’s technical colleges pioneered the development of competency-based education for adults. This shifts the focus from the amount of time a student spends in a course or program, to the mastery of employer identified technical skills. When the student demonstrates skill mastery, they move onto the next proficiency regardless of the amount of time needed to acquire the skill. This lean process reduces time to completion by focusing on what technical skills the student needs to acquire by first recognizing the technical skills they already possess. Workforce shortages has changed the dynamic of post-secondary education. The axiom, “You go to college to get a job” is rapidly being replaced with, “You get a job and your employer sends you to college.” Utah’s technical colleges have responded by collaborating with employers to expand existing or develop new and unique apprenticeship programs. To support employers’ need to keep their current workforce competitive with the most current skills; technical colleges also administer Utah’s Custom Fit program. Custom Fit tailors training to meet the unique needs of industry and subsidizes the cost for that instruction.

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Technical education provides students, employers, and the State of Utah an excellent return on investment. Providing individuals the opportunity to gain high-tech skills that leads to immediate employment in their community builds prosperity. With the expansion of stackable credentials, a lowcost or no-cost technical certificate is not only the fastest way for a high paying job, its accelerates the time to complete relevant associate and bachelor degrees. In 2019, the Utah Data Research Center conducted an analysis of the impact of Utah’s technical colleges on workforce and economic development. Students who complete a technical certificate saw a 32 percent increase in wages. With no student loan debt, graduates have a better ability to make significant purchases like homes and vehicles, and to save for retirement. While Utah’s manufacturing companies produce and export the highest quality products, the state cannot afford to export its other premier product - its highly skilled, technically trained workforce. Technical college graduates stay in Utah. One year after completing a technical college program, 97 percent of graduates are still gainfully employed in Utah. After five years, 87 percent of technical college graduates are still working in the state.

With an influx of state and federal funds focusing on upskilling and reskilling of the workforce, tuition and fees at technical colleges will be further reduced. In some cases, adults will be able to attend high-demand programs tuition free. This next year provides a once in a generation opportunity to significantly expand Utah’s technically skilled workforce. Like our manufacturing partners, because of the pandemic, Utah’s technical colleges have adapted and developed new and better ways to meet workforce demands. Employer engagement will always be the key to success for technical education. If you are not connected with your local technical college, now is the time to reach out and find out how the college can help your organization.

Jim Taggart is the President of the Ogden-Weber Technical College and has been involved in technical education, and workforce and economic development for the past 27 years. Utah’s technical colleges are Bridgerland Technical College, Davis Technical College, Dixie Technical College, Mountainland Technical College, OgdenWeber Technical College, Southwest Technical College, Tooele Technical College, Uintah Basin Technical College, Salt Lake Community College, Snow College, and USU-Eastern.

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Top Workforce programs • composites technology • HVAC/energy

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PUBLIC SAFETY

Ladder Safety Workers Compensation Fund Most of us use ladders on occasion, but few of us take the time to review ladder safety basics before using one. The following guidelines can help those who use ladders do so properly and prevent injuries. General Guidelines • Avoid climbing unless necessary. •

Select the proper ladder (aluminum, wood, fiber glass, step, extension, straight, etc.) for the job. For instance, never use an aluminum ladder around electricity.

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Choose a ladder that fits the job. If ladders are too short, people will climb too high, which will leave them without proper handholds. Ladders that are too long are difficult to handle and tend to be erected askew, which makes them highly unstable.

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Never use a ladder for a purpose it’s not designed for.

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Inspect the ladder’s condition before use. Discard any damaged ladders.

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Wear slip-resistant footwear.

Inspection Periodically inspect ladders and document the inspections. Remember to look for and document the following: •

Any structural damage (cracks, bends, kinks, or distortions).

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Ensure all rungs are in place, secure, and free of grease or oil.

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Safety feet are functional and in good condition.

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Any missing parts.

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Working spreaders.

Placement •

A ladder should not be placed in doorways, pas sageways, or other locations where it can be disturbed.

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Make sure the ladder is set on a stable, level surface.

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A non-self-supporting ladder should be placed at an angle of approximately 75 degrees. The distance from the wall to the foot of ladder should be about one-fourth the ladder’s total length.

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Remember that the ladder is a tool to assist in getting a job done, just like a wrench or screwdriver. Focusing on the task that necessitates using a ladder while ignoring the tool, is a primary cause of ladder injuries. Climbing and descending a ladder must be a zero-mistake activity. You can’t afford an error in judgment. For more safety topics and information, visit wcf. com. If you’re interested in getting a 5% discount on your workers’ compensation insurance as a member of the Utah Manufacturers Association, talk to your agent about the benefits of WCF Insurance.

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PHONE 801-363-3885 UMA@UMAWEB.ORG WWW.UMAWEB.ORG

428 E WINCHESTER STREET, #135 MURRAY, UT 84107

•

When using a non-self-supporting ladder to access a point where you will dismount, the ladder should extend at least three feet beyond the support point. The ladder should also be lashed as close to the support point as possible.

Climbing and Descending

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Face the ladder while climbing or descending and hold on with both hands.

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Always maintain at least a three-point contact with either two hands and one foot or two feet and one hand.

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Keep centered on the ladder.

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Never lean beyond the side rails or move, shift, or extend the ladder while on it.

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On a stepladder, never climb past the second step from the top.

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Take one step at a time.

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If you need tools, use a tool belt or a bucket attached to a hand line. Only allow one person on a ladder at a time. UMAWEB.ORG

How a Continuous Improvement Fair made a Factory’s CI Culture Go Viral! When I led the Lean Six Sigma program for Plexus, a manufacturer of printed circuit boards and “high level assemblies” my goal was to create a culture of Continuous Improvement. The first 2 years we made critical improvements in material deployment and production quality solving some of the headaches that prevented us from hitting our numbers. But I was failing. The goal of creating a Continuous Improvement culture evaded me. My desire to have everyone in every department leading Kaizen events eluded me. Process improvements were being made but with enormous effort and time on my part. If I wasn’t involved, the factories continued to do business as always. Yes we could firefight and react in an emergency but we were not proactive. Problems were not being identified and solved organically. We had so much going for us. • Holding monthly Lean and Six Sigma trainings. Check • An incredible 5S program and a shop where you could eat off the floor. Check • Brilliant people throughout the company that wanted to succeed. Check • Multiple Kaizen Events (process improvement projects) with real, measurable results. Check With all this success the soul crushing truth was this, I knew if I left the company the Continuous Improvement efforts would die. So what was missing? I took my management team to Autoliv, a Shingo Prize winning manufacturing company, to find out. We learned many things during that visit but one of the biggest takeaways was the idea of holding a Continuous Improvement Fair. On a regular basis, Autoliv would get the entire company together to see short report outs (think Jr. High Science Fair) of their Continuous Improvement projects.

PDCA, 5S, or Mistake Proofing, to make a poster board summarizing their project. We put the posters on easels in the break room and shut down the plant for an extended lunch. Every employee walked through the cafeteria and learned about a process improvement from the leader of the team who did it. It was weird. Introverted engineers who never said 2 words were suddenly explaining the process changes they made and showing off new mistake proofing devices with an energy seen only on late night infomercials to people they didn’t even know! (We had over 600 employees). People were asking questions eager to learn more about the progress other departments were making. Teams were smiling at each other, and giving high fives. I think we had 7 projects for the first CI fair. The next fair it doubled. Then it doubled again. Soon we had to ask each factory to only submit their top projects in each category because there were too many Continuous Improvement projects to fit in the cafeteria.

So we tried it. We held our first Continuous Improvement fair and asked everyone who had solved a problem using a structured approach like DMAIC, 17

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Continuous Improvement started to go viral! My team wanted to make improvements. They wanted to be in the fair. They loved showing their work, the prizes, the competition, but most of all I think they loved knowing that we knew, that everyone knew, about the critically important role they played in the company. They got respect from their team, management team, the program managers, the warehouse guy, the sales gal… suddenly everyone could see the unique way they contributed to our collective success. The CI Fair made their awesomeness visible! From that point on I didn’t have to plead with the factories to work on CI projects. I didn’t have to push. The Fair created pull. I would walk down the hall and see a team in a conference room working on a 5 Whys diagram to solve a problem that I didn’t even know about. CI was viral! It was happening all around me! With all of the many pieces of the Continuous Improvement puzzle we had put in place, this was the missing piece! How to hold a Continuous Improvement Fair 1. Lay the foundation of Continuous Improvement - Get agreement with the entire leadership team on what a CI culture looks like in your organiztion and commit to supporting the effort. - Train team members to Lean and Six Sigma principles with Lean Six Sigma Yellow and Green Belt training. - Identify KPIs to improve in each department and gather data. 2. Announce that there is going to be a CI Fair in 3 months! - Schedule 2 hours in your biggest room. 3. Complete Kaizen Events (process improvement projects) using a structured approach like DMAIC or PDCA. 4. Prep for the event - Purchase candy and swag to give away - Purchase 3 panel science fair poster boards - Purchase amazing prizes for the winners - Purchase raffle tickets - Ask project leaders to fill out a science fair poster board for their project. 5. During the event - Give everyone in the company time to come, even the night shifts. We held the fair during the day and night since we operated 24/7. - Ask project leaders and other team members to stand by their poster board and present to every one who comes by.

- Give everyone in the room 3 raffle tickets which they can drop in the box to vote for their favorite 3 projects. - Play music. (We frequently used reggae music with a beach theme.) - Give out cake and food. - Give out random prizes and swag (stuff we all get like shirts and hats and mugs). Have fun! 5. At the end - Announce the winners. (We had 3 categories for our CI Fair, 5S for small projects everyone could participate in, Mistake Proofing for medium size quality improvements, and DMAIC for larger process improvements. This way everyone, even operators with little spare time or flexibility, could participate.) - Give amazing prizes. (Think dinner and movie tickets, BBQ grills, iPads, and other things that let the team know they did an exceptional job.) - Post the winner’s poster boards on the wall until the next CI Fair. (We posted 1st, 2nd, and 3rd in each of our 3 categories.) - Schedule the next event In the years since Plexus I’ve worked with dozens of companies to create a culture of Continuous Improvement and I always explain, “You can teach people the tools of Lean and Six Sigma, you can put in the systems of Continuous Improvement like standard work, 5s, and Kaizen, but if you want to make Continuous Improvement part of your culture you have to hold a quarterly Continuous Improvement Fair.” To learn more about how our team at UMA can help your company set up a CI Fair or train your team just give us a call. Cedro Toro Director UMA Center for Business cedro@umaweb.org 801.809.9430

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The Employer Labor Crisis By Chanel Flores, Deputy Director UAMMI

The accolades for Utah continue to roll in, and the state is leading the economic recovery in almost every area of growth and revival. While our economy continues to boom there’s a looming concern that is being felt across every industry in the state; they need employees and some on a very large scale. The problem isn’t just unique to Utah: according to the Labor Department’s JOLTS report, there were 9.3 million job openings across the U.S. in April alone, the highest level since the year 2000. To make matters worse, a total of 4 million people quit their jobs in the same month, another record high. This trend has been dubbed the “Great Resignation”, with the largest resignations coming from those who are deemed mid-career (between the ages of 30 to 40 years old). Additionally, a recent report from Monster.com states that an astonishing 95% of workers are considering changing jobs. So, what does this mean for Utah? The state has never shied away from addressing these types of workforce challenges and Utah’s innovative solutions have gained national recognition. These include programs like the Utah Aerospace Pathways Program that provides work-based learning experiences; Talent Ready Apprenticeship Connection (TRAC), a youth apprenticeship program based on a Swiss model; the expansion of Systems Engineering; and the new composites advanced 21

degree program for working professionals. Utah excels at fostering unprecedented collaboration among industry representatives, education leaders, and government, enabling all of them to work together. Building the talent pipeline is a long-term solution and one that will continue to be necessary, but what about the now? How do companies meet current demand with a limited workforce? One-way firms are adjusting is through increased use of automation and robotics. This is particularly true of firms that seek to compete with foreign producers, who do not face similar labor shortages and have lower wage rates than the United States. These solutions are best employed for the most repetitive tasks, allowing the valuable worker resources to focus on more difficult tasks and quality control. Nevertheless, the initial investment for such automation is a challenge and many Utah companies have consistently stressed the need for direct capital expenditure assistance. Another solution to labor shortages is return-towork bonuses. Such incentives have been employed in several other states, though not in Utah. Other inducements include raising wages and offering flexible schedules. This latter incentive is seen as particularly attractive, given that many workers saw colleagues benefit from schedule flexibility dictated

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by the COVID-19 pandemic. While manufacturing does not lend itself to the type of work-from-home options that some other positions do, the idea that certain tasks and processes can be carried out at different times of a day – and still meet the needs of customers – is intriguing. Additional workforce programs that have a proven track record of being effective could also be expanded. The Talent Ready Apprenticeship Connection (TRAC) youth apprenticeships program, mentioned above, is specifically designed to engage students starting at the high school level. Students split their time between the classroom and workplace, applying knowledge through a hands-on learning routine. As part-time employees, students earn a wage while pursuing their education which leads to a high-paying career. This has proven to be beneficial to both students and the businesses that participate. Increasing this type of workforce program can help companies in building the talent pipeline and retain employees after graduation. In addition to the Great Resignation, another phenomenon stemming from the COVID-19 pandemic is the so-called “Pink Recession”, which stems from the fact that women have had a disproportional hit to their careers compared to their male counterparts. This is characterized by the fact that, according to McKinsey and as recently as March 2021, one in four

women were considering downshifting or leaving the workforce all together to take care of family. Utah is particularly vulnerable in this area because of the continued high pay disparity between women and men, with women earning on average only 70% as much as men. To counter this, innovative programs are needed to encourage the engagement and involvement of women and girls. Currently, under Utah Advanced Materials and Manufacturing Initiative (UAMMI), the Utah Defense Manufacturing Community (UDMC) is supporting nine innovative programs that are geared specifically to women and girls in STEM and advanced manufacturing. The programs have proven to be successful and range from Tech Moms to Utah 4-H Engineer Everything. This last month, Davis Technical College held the first “Find Your Spark Welding Camp for Girls” where they had 15 girls complete the camp. So far, two of the girls have begun the enrollment process for the full welding program. Supporting and building programs that address getting women back into the workforce and continuing to create programs that introduce young girls into STEM fields, will help address the “Pink Recession” as well as companies’ worker shortage. Utah continues to be a leader but must build upon that leadership strength to meet the current workforce challenges.

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Lockton Companies grows Salt Lake City operation Offering deep risk management expertise to Utah manufacturers SINCE EXPANDING INTO UTAH IN OCTOBER OF 2019, LOCKTON, THE WORLDS LARGEST PRIVATELY HELD GLOBAL INSURANCE BROKER, HAS STEADILY GROWN ITS SALT LAKE CITY-BASED OPERATION. LOCKTON’S INCREASED PRESENCE IN THE AREA HELPS MANUFACTURING COMPANIES IN ALL SECTORS ADDRESS RISKS RELATED TO THEIR BUSINESS. FROM PROPERTY/CASUALTY TO EXECUTIVE- AND HUMAN-BASED CAPITAL RISKS, LOCKTON PROVIDES CLIENTS THE TOOLS AND RESOURCES NEEDED TO MAKE THE MOST INFORMED DECISIONS. Anthony Jensen, a 13-year insurance industry expert, leads the Salt Lake City office. Specializing in MFG, Jensen develops unique risk management strategies for all types of manufacturing clients, from food and beverage to aviation/aerospace to outdoor sports and recreation. Jeff Bryant joined the team in March of 2020. Bryant has more than 30 years of industry experience developing comprehensive risk management programs to protect his clients’ balance sheets. He specializes in real estate, manufacturing, tech, healthcare, education, and construction. “This team is proud to help our clients ensure risk resilience by understanding their business and industry issues.

We provide the tools and guidance our clients need to avoid disruption and capital losses,” says Jensen. “At Lockton, we work hard to become an extension of our clients’ risk management teams and protect their businesses and employees as if they were our own.” With Lockton, you get something you may not be used to with insurance — creative thinking and an unmatched commitment to client success. Lockton’s team brings global resources and capabilities to Utah’s strong manufacturing community. The best and brightest are drawn to Lockton because they want to make a difference. They’re voracious doers who know how to help clients respond quickly to changing markets and offer the deep industry expertise needed to navigate these complex times.

Lockton Salt Lake City 111 E. Sego Lily Dr Suite 190, Sandy, Utah 84070 anthony.jensen@lockton.com | 801.601.5366 jeff.bryant@lockton.com | 801.601.5447

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Independence changes everything.

As the world’s leading independently held insurance broker, we answer to no one but our clients. Our private ownership ensures our people are empowered to focus on doing what’s right for clients. Lockton is ready to challenge whatever risks clients face — and unlock opportunities to help them move forward.

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