Hartford Business Journal

HARTFORDBUSINESS.COM | AUGUST 5, 2024 17 Connecticut manufacturing czar Paul Lavoie said in-state manufacturers must invest in new technology to keep up with production shortfalls caused by the labor shortage. HBJ FILE PHOTO 'Make It Here' CT manufacturing czar Lavoie seeks $100M-plus state investment to boost sector's technology, workforce development efforts By Skyler Frazer sfrazer@hartfordbusiness.com T he state Office of Manufac- turing plans to ask Gov. Ned Lamont for at least $100 million in funding over the next six years to support one of Connecti- cut's key industries with workforce training initiatives, capital equipment purchases and more. The request is part of a new plan launched earlier this year by the Office of Manufacturing, which is led by Paul Lavoie, a former industry executive. Lavoie rolled out the "Make It Here 2030" plan in April, outlining three priorities to support the state's manufacturers: talent development; removing barriers to employment such as housing, transportation and child care; and maximizing produc- tivity through the use and implemen- tation of new technology. The plan comes as the manufac- turing industry across the country faces labor challenges. A Manufac- turing Institute and Deloitte report concluded that while U.S. manufac- turers are projected to create 4 million new jobs this decade, more than half of those positions will go unfilled if the current workforce shortages continue. That would cost the U.S. economy $1 trillion in potential GDP growth, Lavoie said. In Connecticut, "lack of an available skilled workforce" is the No. 1 reason local manufacturers aren't growing to their fullest poten- tial, Lavoie said. There are about 10,000 open jobs in Connecticut's manufacturing sector, but getting that down to 6,500 open positions would be considered full employment for the industry, he said. "Make It Here 2030 is based on the premise that we're never going to hire our way out of the problem, there's never going to be enough people to do the work that needs to be done in the manufacturing sector," Lavoie said in a recent interview. "But in manufacturing, we have the opportu- nity to use technology and machines to do the work for the people we're never going to have. It's not a job-re- placement or elimination strategy, it's a survival strategy." Expanding labor pool Talent development and acqui- sition are perhaps the most widely talked about issues in manufac- turing. Make It Here 2030 aims to promote manufacturing careers with young people through advertising campaigns, career roadshows and close collaboration with the state Office of Workforce Strategy. Make It Here's goals include regis- tering up to 5,000 people interested in manufacturing in the state's Career ConneCT program, which provides free training in high-demand careers; and getting 2,500 people enrolled in industry-related training programs. The state must also take addi- tional steps to improve access to affordable housing, child care and transportation to increase the labor participation rate, Lavoie said. "Let's develop the workforce that we have, let's get kids excited about manufacturing careers, let's try to get more people into the pool as it relates to manufacturing jobs," he said. A large part of the Make It Here 2030 plan also revolves around developing an industrial automation plan aimed at driving new technology adoption across the manufacturing sector in the state. Businesses should be investing in automation and robotics to address workforce gaps and mitigate rising production and materials costs, Lavoie said, and the state has room to help. 'MIF on steroids' That's where the $100 million funding request comes into play. Lavoie said the money would replenish the Manu- facturing Innovation Fund, which was created by the legislature a decade ago to support small and midsize manufac- turers with new technology adoption and workforce development. The fund — administered by the state Department of Economic and Community Development — supports various initiatives like the Manu- facturing Voucher Program, which provides companies with matching grants of up to $100,000 to purchase new equipment. There are also programs to help pay for apprentice- ships and incumbent worker training. According to state data, $95 million in funding has been invested in the MIF across different programs since it launched in 2015. Lavoie said his pitch to the governor and DECD is still being refined, but he wants at least a $100 million commitment spread across the next six years, which would amount to $16.6 million in annual funding. "We need to put MIF on steroids," Lavoie said. "It's a great program, and no other state has such a robust program that we have, but it simply is not going to be enough to signifi- cantly move the needle as it relates to the workforce." Lavoie's funding request will come as lawmakers next session debate a new two-year budget plan. It's expected to be a challenging budget battle, with hundreds of millions of dollars in temporary funding set to expire, and various special inter- ests — such as higher education, social services and health care — demanding more support. State Sen. Joan Hartley (D-Wa- terbury) co-chairs the Commerce Committee and has been a supporter of the MIF, which she said is "a very important tool" in helping the state grow its skilled workforce. However, manufacturers can't fully hire their way out of worker shortages, and the adoption of new technology, including robotics and automation, can help fill the gap, she said. "We'll never have enough bodies — it is about technology, and then it is about upskilling. When you bring in the technology, there will be changes in the workplace, but that's where we have to be sure that people are ready to move to the next level. There's an opportunity to advance in a career and salary." Hartley said she supports Lavoie's plans to bolster the MIF, but won't commit to specific funding numbers, which will come as recommendations from Lamont's office next session. BY THE NUMBERS CT's manufacturing industry 4,548 The number of manufacturers in Connecticut as of July 2023. 158,900 Number of manufacturing jobs in the state. $34.5B Economic activity generated by the state's manufacturing sector in 2023. 12.2% Manufacturing industry's contri- bution to state Gross Domestic Product in 2023. Source: U.S. Bureau of Economic Analysis, state Dept. of Labor

• Cover