Hartford Business Journal

10 Hartford Business Journal • October 8, 2018 • www.HartfordBusiness.com EXPERTS CORNER Four tactics to attract and retain manufacturing talent By Joe Gianni and Eric Bauer A ttracting and retaining top talent for the manufacturing industry is more challenging than ever. Employment is up, U.S. unemploy- ment is at a 10-year low (falling to 4.4 percent this year) and Baby Boomers are reaching retirement age and exit- ing the workforce. The global supply of high-skill work- ers is not keeping up with demand, and, according to the McKinsey Global Institute, there may be a potential shortage of more than 40 million high-skill workers by 2020. HR depart- ments have shifted focus from salaried employees to filling hourly positions, which increasingly require problem- solving skills and technical expertise. Unfortunately, the manufacturing industry is suffering from a perception problem; eligible recruits fear layoffs, associate the industry with a "lower status stigma" and foresee superior career growth in other occupations. To mitigate these issues, companies must be creative in their appeals to the next generation of manufacturing pro- fessionals. Here are some methods to help improve recruiting and retention: Differentiate — During recruit- ment, reinforce the fact that manufac- turing jobs often pay better than other unskilled or semi-skilled labor positions. According to IndustryWeek, fast-food workers stand to make $10 to $15 an hour, while a new manufactur- ing employee could make $15 to $25 an hour. Even if the position isn't some- thing the worker wants long term, an entry-level role will expose them to other areas of the business. If he or she commits to further training within the company, the individual has a chance to make even more. Make sure to express the potential growth opportuni- ties in the interview process and rein- force the value of the hourly employee. Another area for differentiation is workplace culture. Articulate the improved safety standards, col- laborative envi- ronment and use of state-of-the-art technology in job descriptions. Also, reinforce that your company will provide ongoing education, including access to more in-depth training. Partner with local schools Some companies are beginning to conduct focused outreach at local high schools, community colleges and technical schools. By working with in-school counsel- ors, manufacturers can identify stu- dents with the skill set and desire to learn more about technical pursuits. Presenting at job fairs or "Career Day" can also help dispel myths regarding the nature of the work and build rap- port with a younger audience. Another route is to offer sponsor- ships, internships and/or apprentice- ships. Programs such as these provide a hands-on experience without the full commitment of employment. Candi- dates will have a better idea of on-the- job responsibilities, and employers can vet aptitude accordingly. Reevaluate benefits By 2020, Millennials are expected to comprise 50 percent of the global workforce, so they will have significant influence in the work experience. According to Ernst & Young, Mil- lennials are the generation most likely FOCUS: Manufacturing By Natalie Missakian Special to the Hartford Business Journal T om Lyon was eyeing a new piece of equipment for his Manchester company, Lyco Inc. The $60,000 price tag was out of his budget, but he knew he needed the upgrade to keep up with larger competitors. So Lyon, whose family owned compa- ny recycles and re-manufactures office furniture and cubicle systems, applied and qualified for a $33,000 match- ing grant through the Connecticut Manufacturing Innovation Fund, which covered half the cost, plus associated electrical upgrades and training. The machine, called an edgebander, can strip and re-edge countertops faster and with better results than doing it by hand, Lyon said, allow- ing Lyco to step up production and become more competitive. He said the equipment helped boost sales to big office furniture dealers like WB Mason. "The economy hasn't been great the last 10 years, so these are investments we probably would never have made on our own, just because our margins are that tight," said Lyon, who recently secured another $7,500 matching grant for new software and other improve- ments. "For a small business, it's like getting a 50-percent-off coupon. It makes it a little easier to take that risk." Lyco is one of 1,130 companies state- wide — roughly a quarter of all Connect- icut manufacturers — that have benefit- ed from the fund, which is managed by the state Department of Economic and Community Development (DECD). The state Bond Commission replen- ished the fund in August with $5 million in new bonding. As of July, the state has spent $58 mil- lion under the program. Created in 2014, the fund is aimed at supporting growth and innovation in Connecticut's manufacturing sector, which employs more than 159,000 people at 4,300 companies statewide. A key part of Gov. Dannel P. Malloy's economic-development strategy has been providing loans and grants to businesses that promise to invest in their plants, technology or workforce. It's a strategy that's come under criti- cism by some, including several guber- natorial candidates, who say the state has been spending too much taxpayer money on private enterprises. Connecticut's top business lobby, how- ever, said the Manufacturing Innovation Fund has been a smart investment. DECD Commissioner Catherine Smith said the fund began in part to help aerospace and defense supply-chain companies meet increasing demand from original equipment manufacturers (OEMs) — industry giants like Pratt & Whitney, Sikorsky and Electric Boat. "The problem for the small guys was there was a rapid increase in the number of parts they were going to be expected to produce over a short period of time (as aerospace companies ramped up production). Plus, the OEMs were saying, 'You've got to cut costs. Oh, and by the way, we want to test this new-fangled technology,' " said Smith, who chairs the fund's advisory board. "While they were being asked to do all these things, the revenue to support that doesn't come until after the order is received by the manufacturer." Program menu Through the Manufacturing In- novation Fund's voucher program, companies can get 50-50 matching grants of up to $50,000 to help pay for specialized equipment, training, research, software, marketing or other upgrades. Between 2014 and 2017, the state spent nearly $16 million to help Eric Bauer Joe Gianni Growth Support Producers say CT's Manufacturing Innovation Fund helping sector's ramp up Lyco Inc. employee Larry Wallace operates an edgebander machine, which strips and re-edges countertops, that was purchased with the help of a matching grant through the Connecticut Manufacturing Innovation Fund. PHOTO | CONTRIBUTED

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