LIFT Report: Lightweighting-Related Job Demand in 5-State Region Surges, Encourages Advanced Manufacturing Training and Education

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1 FOR IMMEDIATE RELEASE: Nov. 23, 2015 Contact: Lucy Houchin LIFT Report: Lightweighting-Related Job Demand in 5-State Region Surges, Encourages Advanced Manufacturing Training and Education Michigan lightweighting employer demand up 50 percent over beginning of 2015 DETROIT, Mich. Demand for lightweighting-related occupations reached new levels in July and August 2015 levels representing an increase of more than 50 percent since year-end This, according to a new market report from LIFT (Lightweight Innovations for Tomorrow) and WIN (Workforce Intelligence Network) the former a public-private partnership that is developing and deploying advanced lightweight materials, manufacturing technologies and training programs over a 5-state region including Michigan. The positive, upward trend of lightweighting-related job postings means we need to strengthen and accelerate our collaborative efforts to build a skilled workforce, ready to use new technologies, materials and processes said Emily Stover DeRocco, education and workforce director of LIFT. Advanced knowledge and skills remain key for our region s success as an innovation and manufacturing hub. According to the new market report, Michigan lightweighting-related job postings increased from 20,038 in May and June to 22,721 in July/August 2015, and were up by more than 50 percent from the beginning of Of the 22,721 job postings by Michigan employers in July/August 2015, 37 percent advertised a salary of more than $50,000, and nearly 60 percent required a bachelor s degree. Maintenance and repair workers have topped the list of most in-demand jobs in Michigan for the last six months. Additionally, demand for mechanical, electrical and industrial engineers remained strong in Michigan, with a combined total of more than 1,000 job postings in July/August As the increase of lightweighting-related job ads in Michigan confirms that employer demand is growing, it is important that we prepare our workforce via proper training and education to fill these rewarding positions, said Joe Petrosky, Dean of Engineering & Advanced Technology at Macomb Community College and member of the Michigan LIFT State Team.

2 The most in-demand lightweighting-related occupations in Michigan included: Electrical and Mechanical Engineering (6,150 postings) Assembly and Operation (3,929 postings) Skilled Materials Workers (3,341 postings) Logistics Workers (2,765 postings) Process Engineering and Testing (1,511 postings) The full Michigan report can be viewed at: ABOUT LIFT Lightweight Innovations For Tomorrow (LIFT) is a public-private partnership that will develop and deploy advanced lightweight materials manufacturing technologies and programs to prepare the workforce. The LIFT region includes 5 states: Michigan, Ohio, Indiana, Kentucky and Tennessee. LIFT is operated by the American Lightweight Materials Manufacturing Innovation Institute (ALMMII) and was selected through a competitive process led by the U.S. Department of Defense under the Lightweight and Modern Metals Manufacturing Innovation (LM3I) solicitation issued by the U.S. Navy's Office of Naval Research. LIFT is one of the founding institutes in the National Network for Manufacturing Innovation, a federal initiative to create regional hubs to accelerate the development and adoption of cutting-edge manufacturing technologies.

3 LIGHTWEIGHT INNOVATIONS FOR TOMORROW Michigan Job Demand* Bi-Monthly Update July and August 2015 Custom Analysis by

4 Postings over time Online job ads for advanced manufacturing positions related to lightweighting in Michigan rose from 20,038 in May and June to 22,721 in July and August, a 13.4% increase. Employer demand has increased by 50% since the beginning of 2015 and 121% since the end of Growth in postings during 2015 is a strong indicator that employers in Michigan are in need of manufacturing talent that may require skills related to lightweight metals. 121% Increase in lightweighting job posts in 2015 Top Jobs Of the over 22,000 jobs possibly requiring lightweighting knowledge posted by Michigan employers in July and August 2015, 37% advertised salary over $50,000 while 59% required at least a Bachelor s degree. Maintenance and repair workers has topped the list of most in-demand jobs in Michigan over the last six months; in July and August this occupation had 2,176 online ads. Demand for mechanical, electrical and industrial engineers is also strong in Michigan; all three occupations fell in the top five and had over 1,000 postings in July and August % job postings with wages >$50k 59 2

5 What counts as lightweighting? Over 140 individual ocupations are related to lightweighting and can be organized into 3 main occupational groups and 10 subgroups. (1) Skilled trades jobs include machinists, assembly and operations workers, and skilled materials workers. (2) Administration jobs include procurement and purchasing workers, human safety workers, and logistics workers. (3) Engineering & design jobs include electrical and mechanical engineers, chemical engineers & metallurgy workers, designers and drafters, and process engineers and testers. Occupation Sub-Groups Postings and Employment Once again, job postings in Michigan were dominated by demand for Electrical and Mechanical Engineers; this occupation sub-group represented 27% of total lightweighting-related postings in the state during July and August. On the other hand, these occupations only account for 11% of total LIFT-related employment in Michigan. The disparity between demand and employment indicates that this occupation sub-group is in very high demand and will likely see employment growth in the near future. In contrast, workers in the Machinists sub-group constitute 17% of advanced manufacturing employment in Michigan but only 6% of postings in July and August. This difference suggests that employer demand is not as strong as expected or that employers are not using online job ads in recruiting for these positions. Comparing job postings to employment levels provides context for both how many jobs are open relative to current employment and how readily employers utilize online job ads for certain occupations. 3

6 Lightweighting Employment in Michigan Lightweighting-related employment in Michigan fell slightly between 2014 and Early 2014 estimates predicted that employment was near 665,000, however, final 2014 numbers show employment closer to 660,000. The most recent 2015 estimates show total lightweighting employment at 647,760, a modest 1.9% drop from 2014 s 660,081 jobs. 48 Administration Occupations Essential administration jobs related to lightweighting include purchasing materials, ensuring worker safety around machines and with materials, and coordinating and analyzing material and goods movement. While these jobs are primarily focused on administration, all of the workers in this occupation category must have detailed knowledge of materials, goods movement, and worker safety to help ensure smooth and seamless production. During July and August 2015 employers posted 4,243 online ads for jobs in Logistics, Procurement and Purchasing and Human Safety, representing 19% of total job postings related to lightweighting in Michigan. This was a slight increase over the 3,852 ads posted during May and June. The top postings were for Logistics workers with 2,765 job ads. Logistics postings were once again dominated by laborers and material movers which represented over one in every three ads for Administration occupations in Michigan. 4

7 Skilled Trades Skilled trades workers are the builders and makers of America. They work directly with advanced materials, assemble complicated products, and are experts in welding and machinery. They ensure that designs and plans are carried out to every detail and specification. These workers do everything from welding, to setting and managing computer-numerically-controlled machines, to overseeing manufacturing floors. These skilled workers are essential to lightweighting manufacturing. The 71 individual occupations within this cluster can be split into three distinct occupation sub-groups; machinists, assembly & operations workers, and skilled materials workers. In July and August 2015, there were 8,694 online job postings for Skilled Trades positions representing 38% of all LIFT-related job postings in Michigan. Maintenance and repair workers, the most in-demand job possibly requiring skills related to lightweighting metals had 2,176 postings. Postings for production workers and machinists also led their respective occupational sub-groups, consistent with employer posting behavior throughout *Data Note: Demand is defined as online job postings by employers in the state specific for the report. 5

8 Engineering & Design Engineers and industrial designers create the blueprints for all things manufacturing. These workers not only envision the products of the future but also ensure that the products are functional, safe, reliable, and durable. Over 300,000 workers in the LIFT region are employed in engineering and design occupations, representing just over 12% of total lightweighting occupational employment. The 52 individual occupations within this cluster can be split into four distinct occupation sub-groups: electrical & mechanical engineering, chemical engineering & metallurgy, industrial designers & drafters, and process engineering & testing. Employer demand is largest in Michigan for occupations in the Engineering & Design cluster; the 9,784 job ads in this cluster account for 43% of LIFT-related postings during July and August. Top jobs in this cluster included mechanical engineers (2,080 ads), electrical engineers (1,705 ads), industrial engineers (1,098 ads) and commercial & industrial designers (1,002 ads). Combined, these four occupations accounted for 60% of online postings for the Engineering & Design cluster in Michigan through July and August. 6

9 Lightweight Innovations for Tomorrow (LIFT) is a public-private partnership that will develop and deploy advanced lightweight materials manufacturing technologies and implement education and training programs to prepare the workforce. Lightweight materials are increasingly important to the competitiveness of transportation manufacturing sectors, including suppliers in the automobile, aircraft, heavy truck, ship, rail, and defense manufacturing industries. Lighter vehicles for the military, industry, and consumers alike, have better performance and use less fuel. LIGHTWEIGHT INNOVATIONS FOR TOMORROW The LIFT region includes 5 states: Michigan, Ohio, Indiana, Kentucky, and Tennessee. Integrative education, training, and workforce development is a core, sustained aspect of the Institute's mission. An educated and skilled workforce is critical to the future of manufacturing. Under the direction of Emily Stover DeRocco, LIFT's Education & Workforce Director, the LIFT Workforce & Education Working Group will design and implement a cohesive strategy to deliver the talent necessary to the long-term health of the U.S. and defense industrial bases.