The Employer Labor Crisis

from MFG Utah | Workforce - Finding Tomorrow's Talent, Today.

by Utah Manufacturers Association Magazine

Workforce Training and Education Collaborations for a Post-Pandemic Economy

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 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

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 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.

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

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.