GA Manufacturing Extension Partnership (GaMEP) Georgia Tech

Own the Skills Gap: Workforce Readiness Starts with You

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Own the Skills Gap: Workforce Readiness Starts with You

Hiring and retaining talent is a continuous concern and investment for every manufacturer, large or small, rural or multinational. It is hard to find and keep people with the right skills. It’s also expensive. According to The Society for Human Resource Management, in 2016 it cost over $4,000 and took 40 days to complete each new hire. Those 40 days spent looking for the right person impact productivity—and then there’s the time it takes to train each new employee and get them up to speed.

Even as the unemployment rate has skyrocketed during the pandemic, manufacturers continue reporting difficulty filling open positions. It’s not a problem that will go away by itself. Coming out of the pandemic, U.S. manufacturing is expected to increase at 3.6% annually. Manufacturers are smart to be planning now to meet future business needs — finding and hiring the right people and upgrading training to retain top talent once they have been hired.

Recently, the Georgia Manufacturing Extension Partnership (GaMEP) at Georgia Tech, part of the MEP National Network, interviewed three of their manufacturing clients, all different-sized companies, about strategies they have found successful for hiring and retaining talent.

Workforce Solution: Hire for soft skills and the right fit

Mohawk Industries is a flooring manufacturer based in Calhoun, Georgia. Founded in 1878, the company employs 10,000 people in Georgia and 40,000 worldwide. Mohawk’s leadership values technical expertise, but they also look for soft skills, which are much harder to teach.

Leadership skills, discipline and motivation can signal great potential. This was Nathan Bennett’s skill set when he applied for a job at Mohawk with no manufacturing experience. A two-time NASKA World Martial Arts Champion, he demonstrated strong discipline and leadership skills. Although he didn’t get the job he applied for, a Mohawk hiring manager saw his potential and offered him a job in chemical compounding ­– something Bennett had never even heard of and had to look online to understand. The hiring manager told Bennett that Mohawk wanted him for his leadership skills and they could teach him the rest.

The company’s focus on finding the right fit for their team paid off. Bennett is now the safety manager of two plants, leading more than 650 people and looking for others who are adaptable, motivated, and willing to learn new skills in order to cultivate new leaders in the organization. As a leader, Bennett feels it’s all about making personal connections with employees to cultivate their inner confidence and nurture a culture of working toward a common goal. “I’m boots-on-the-ground every day and address each person as a professional,” he said. “We are one of the biggest companies in a small town in northwest Georgia, so it’s important to have our team’s loyalty.”

Bennett is one of many leaders at Mohawk who are investing in their employees. The company fosters leadership at all levels by attracting, motivating, educating, and—just as importantly—promoting employees from within. This keeps the team loyal to each other, to the processes they’ve created, and to the company.

Mohawk runs its own internal training program, putting each person through a one-week safety course every four years. The company is also invested in their employees’ well-being. Monitors located in employee gathering places at Mohawk promote monthly health and wellness topics such as stress management that are also discussed in pre-shift employee meetings, and list training opportunities and supervisory openings. The company also encourages employee advancement through a 100% tuition reimbursement program for degree programs, certifications, and other professional development related to the employee’s field.

Workforce Solution: Create talent through apprenticeship programs

Corrugated Replacements is a 140-person, family-owned manufacturer in Blairsville, Georgia, that makes replacement parts for corrugated machinery. President Jenny Chandler spent much of her childhood observing on the shop floor of her family’s business. She knew how to run the machines by age 7 and could program them by age 11. As a child, she also observed management styles and how workers responded to them, which helped shape her management approach—leading by example.

A few years ago, Chandler worried about the company’s aging workforce—the average employee age was 53—and the institutional knowledge that could be lost as they retired. The company knew they needed to get ahead of this problem and began researching recruitment strategies to attract younger employees. Corrugated Replacements determined that an apprenticeship program would create a pipeline of skilled, younger workers and improve collaboration throughout the company — resulting in knowledge transfer through a structured, systematic training approach.

Corrugated Replacements created a 36-month apprenticeship program with the local high school. The company pays student apprentices as full-time employees and assesses them throughout the program—looking for leadership traits, initiative, assertiveness, punctuality and maturity. This program’s success led the company to create a shorter, 28-month, apprenticeship program for existing and new employees. Apprentices start in the company’s shipping department and work in each area of the plant, meeting skills requirements in each department before moving onto the next.

Chandler said, “I’ve had 25 apprenticeship program graduates and each person is still with us. When they join the team, I’m looking at how they interact with people and take initiative. That way we can groom them for supervisory and leadership positions.” A special benefit of Corrugated Replacements’ high school apprenticeship program is a fully paid college education — wherever participants want to study and whatever degree they want to pursue — as long as it’s applicable to the business. Students enrolled in nearby colleges schedule work hours into their week, and those studying farther away work during breaks. In return, the company requires a three-year commitment after graduation. In addition to the apprenticeship program participants, Corrugated Replacements pays for any employee’s higher education, as long as the degree is relevant to the business.

Workforce Solution: Invest in your employees to keep them happy

Once you find skilled employees, how do you keep them? Many manufacturers are looking for creative solutions that give their company a competitive edge in recruiting and retaining employees.

A 75-person manufacturer in central Georgia combined flexibility, performance incentives and training to help retain employees.

According to the 2018 Mercer Talent Trends Study, 51% of manufacturing employees want more flexible work options, but only 9% of manufacturers in the study report offering flexibility. While many manufacturing jobs can’t be done from home, this company found a solution that provides its employees the flexibility they desire. The location runs four 10-hour shifts per week, allowing employees to pick up shifts on the fifth day each week for overtime if available or to make up for time taken off earlier in the week for personal activities—a win for employees and for the company.

The company credits their ability to retain employees not only to their flexibility, but to their transparent, competitive pay, and their investment in employees. They offer competitive pay with team-based performance incentives. Their pay structure is transparent and employees are told exactly how they can progress in the company. Sets of requirements are tracked and tied to salary as employee’s progress through steps in their pay levels. On top of base pay, all employees receive monthly bonuses, based on the facility’s previous month’s performance—an incentive offered for more than 30 years. The team-based incentive promotes teamwork and continuous improvement, and empowers team members to impact their environment and their income.

This company uses standard work instructions at every piece of equipment and within assembly so every person who is trained on a process gains knowledge from those who have done the job in the past. They encourage their employees to cross-train in numerous jobs in order to improve team flexibility and increase individual skills. The company uses visual tools and videos for safety training and assigns a trainer in each group. The company also offers 90% tuition reimbursement for continuing education and allows employees to choose undergraduate or graduate degrees, technical college degrees, or online training as options to progress. Additionally, the company plans staffing levels to support cross-training and encourages continuous improvement in safety and quality programs as well as process improvements.

They keep their employees happy, and their employees stay and grow within the company. The average tenure of employees at this location is over 15 years. This enables the company to primarily promote from within—over 90% of the current leadership team has been promoted from within. To accomplish this, the team scouts potential leadership talent within their employees and encourages team members to get their degrees so they are ready for management positions when they open.

Find a solution that works for you

While there is no one-size-fits-all solution to workforce challenges, there are many ways to proactively tackle the problem. Finding the right mix of strategies for your company and employees is key. Your efforts can result in lower turnover, higher employee morale, and a culture where employees are invested in the long-term success of your company.

This story was originally published in IndustryWeek – view it here.

By: Katie Takacs, Industry Services Marketing Manager, Georgia Manufacturing Extension Partnership

Tim Israel Named Director of Georgia Manufacturing Extension Partnership

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Tim Israel Headshot

The Enterprise Innovation Institute (EI2), Georgia Tech’s economic development arm, has named Tim Israel, director of the Georgia Manufacturing Extension Partnership (GaMEP).

Israel, who had been GaMEP’s associate director and group manager of process improvement, will be responsible for the manufacturing resources and regional staff located across Georgia.

He succeeds Karen Fite, who was named interim vice president of EI2 in July of 2019.

“Tim has done an outstanding job in leading our efforts to work with Georgia manufacturers in increasing their efficiencies and process improvements, especially in waste reduction, streamlining operations, and quality control systems implementation,” Fite said. “His experience and expertise, as well as his vast and deep relationships within Georgia Tech and with our GaMEP partners ensures continued success of our mission.”

Israel, a 30-year veteran at Georgia Tech, began his career as a project engineer in Tech’s Gainesville Regional Office. He also served as a project manager in Georgia Tech’s Georgia Productivity and Quality Center (GPQC) and the Center for International Standards and Quality (CISQ).

An expert in lean manufacturing, quality management systems, and supplier development, Israel earned his bachelor’s and master’s degrees in industrial engineering from Georgia Tech.

GaMEP Taps Wendy White to Lead Statewide Efforts in Food Safety Program

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Wendy White Headshot

Wendy White, a nationally known food safety expert, has joined the Georgia Manufacturing Extension Partnership (GaMEP) as a food safety project manager.

In that capacity, she will provide educational outreach and support to help Georgia food manufacturers improve their food safety and quality systems.

Prior to joining the GaMEP, White was director of corporate food safety and quality at Golden State Foods, a food manufacturer and distributor in the industry with more than 35 sites around the world.

“I will work to help Georgia food manufacturers comply with government regulations for food safety and to be in compliance with those rules to avoid heavy fines, delays, and shutdowns,” White said.

She also will lead GaMEP’s new Food Safety Cohort Program, helping companies achieve compliance with the Food Safety Modernization Act (FSMA,) through a series of six 1-day group training sessions and additional one-on-one coaching sessions.

“Wendy brings an incredible wealth of knowledge and expertise which will be especially critical for our small- to medium-sized food manufacturers in Georgia,” said GaMEP Associate Director Tim Israel.

Many large companies have the resources to devote strictly to their compliance activities, but our small companies, don’t always have that, he said.

“Through her efforts, Wendy will help those smaller Georgia food manufacturers develop and expand robust compliance activities so that they’re sustainable over the long term as well as, easy to understand and implement into their operations,” Israel said.

Georgia is among the nation’s leading agriculture states and the industry accounts for nearly $75 billion of the state’s economy each year.

Food manufacturing, or food processing, is a related and growing segment of the Georgia economy. This sector, which includes 69,000 jobs across Georgia, generates $11 billion to $12 billion each year in total output.

White has overseen food safety operations at multiple facilities where she implemented Hazard Analysis and Critical Control Point (HACCP) plans and related quality programs.

Her experience also includes overseeing internal audits, implementing corporate programs, ensuring regulatory compliance, elevating food safety culture, and supporting global supply chain management. She successfully implemented multiple Global Food Safety Initiative (GSFI) Certification Programs and is on the editorial board of Food Safety Magazine.

White is also a highly sought-after speaker at food safety conferences and is very involved in the International Association of Food Protection (IAFP). She’s held multiple leadership positions, and currently serves as vice chair of the Meat and Poultry PDG and sits on its Foundation Committee.  White is past president of the Georgia Association of Food Protection (GAFP) and currently is an IAFP board delegate.

She received a bachelor’s degree in biology and a master’s degree in food science from the University of Georgia.

Click Here for More Information on GaMEP’s Food Safety and Quality services.

Innovation Test Track Competition

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SAC 2018 Innovation Test Track Award Ceremony
From left, John Evans, department chair of Industrial and Systems Engineering and director of the Thomas Walter Center for Technology Management at Auburn University, the 2018 Innovation Test Track (ITT) sponsor; Mike Stonecipher, organizer and emcee of 2018 ITT and automotive industry project manager for the Georgia Manufacturing Extension Partnership (GaMEP) at Georgia Tech; Jack Sisk, 2017 ITT event lead and member of Auburn University’s Industrial and Systems Engineering team; Paul Noble, CEO of AUTIT and competition winner; and judges Jane (Karwoski) McCracken, interim director, Advanced Technology Development Center (ATDC) at Georgia Tech; Tim Yerdon, president, Plymouth Technology Advisors, LLC; Jimmy D’Emilio, procurement manager, Kia Motors Manufacturing Georgia; Rusty Kruciak, 2nd Generation Capital, Nashville, and Jianan Sun, Innovation Hub Solution Architect at Mercedes-Benz USA.

The Innovation Test Track Competition is held each year during the Southern Automotive Conference and encourages companies with innovative products or services that could benefit the automotive industry to pitch their concept to a panel of judges who have a background in innovation. This year, GaMEP project manager, Mike Stonecipher, helped organize the event and served as emcee for the awards ceremony. Stonecipher said, “Each of the finalists are technology leaders and demonstrate the passion required to make transportation and manufacturing innovative, safer, and exciting.”

The winner of the event was AUTIT (now known as Verusen), an Atlanta-based startup that uses artificial intelligence to help manufacturers accurately predict inventory needs and avoid buying excess inventory.

Read the full article in Southern Automotive Alliance Magazine.

Atlanta Business Chronicle Viewpoint: Call to Action for Georgia Manufacturers

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Originally published in the Atlanta Business Chronicle on Friday, Aug. 24, 2018. View the original here.

Georgia’s manufacturing industry is at a crossroad.

For decades, Georgia has attracted manufacturing investment dollars from across the globe thanks to a large workforce, affordable real estate and robust logistics infrastructure.

That favorable climate has attracted billions of dollars of investment from TOTO, Southwire, KIA and hundreds of other companies whose manufacturing facilities have created thousands of jobs in the Peach State.

For all that our state has to offer, too few Georgia manufacturers are making meaningful investments in digitization, workforce training and long-term, strategic innovation. This is according to the 2018 Georgia Manufacturing Survey, “Securing Georgia’s Economic Future,” sponsored by Aprio and Georgia Manufacturing Extension Partnership (GaMEP).

Given the extraordinary pace of change, Georgia manufacturers have an unprecedented opportunity to lead or get left behind.

Manufacturers Must Embrace Industry 4.0

We are in the throes of a 4th industrial revolution. As with every revolution, there will be winners and losers. No sector of manufacturing will be immune. Even manufacturers in ostensibly “low-tech” sectors will eventually find themselves on the front lines of this digital revolution.

Our survey shows that larger manufactures are making bold investments in digitization, while others are hanging back. Only 38 percent of small manufacturers in Georgia have implemented progressive digital technologies such as robots and RFID, compared with 71 percent of medium-sized and 84 percent of large manufacturers.

Digitization is the most disruptive force in manufacturing today, and it will be a determinant of long-term success or failure. From blockchain to AI to data analytics, ROI-enhancing digital tools are increasingly within reach. Manufacturing executives must strike a balance between spending for today and investing in game-changing initiatives that position them for the future. The reward for decisive action today is increased profitability, expanded opportunities, and a competitive edge tomorrow.

Request a copy of the full 2018 Georgia Manufacturing Survey results.

Take Ownership of the Skills Gap

The drive for digitization is inextricably linked to workforce development. An educated, skilled labor market is a requirement for manufacturers making the transition to Industry 4.0, but it’s also an area where Georgia manufacturers continue to struggle. Already, digitization is creating workforce shortages in areas such as data science, in addition to more traditional manufacturing skill sets.

If Georgia manufacturers are unable to fill pre-Industry 4.0 jobs, the skills gap will only widen in the coming decades. More than a third of manufacturers we surveyed cite a lack of technically skilled workers, such as those with electrical and machining expertise. Historically, Georgia manufacturers spend minimal resources on training. In fact, 25 percent had made no investments in training.

Near-record low unemployment rates of 3.9 percent and a strong economy may be lulling manufacturers into complacency. Georgia manufacturers must take control of their workforce destiny. As the need for highly-skilled workers increases, the talent war will only become more fierce.

Forward thinking organizations must take a more proactive role in creating an upwardly mobile workforce. That includes offering tuition reimbursement programs, bonuses and raises for those who seek additional training, as well as apprenticeships and cross-training opportunities. In a tight labor market, employers of choice know that a positive, supportive workplace culture is key to recruitment and retention. Job satisfaction and employee retention is about more than just money.

Only 18 percent of manufacturers in our survey offer training incentives now, whereas 40 percent pay bonuses for productivity increases. This is evidence of a shortsighted focus on today at the expense of investing in the future.

Secure Georgia’s Manufacturing Future

Revolutions only come around so often. This is an exciting time for anyone in the business of making things. Likewise, anyone holding onto “the way things have always been done” is on the wrong side of history.

Bold action starts with taking first steps. Manufacturing decision makers can begin by mapping a long-term strategy that balances today’s bottom line with the need for future investments.

Not sure where to start? A full report of findings from the 2018 Georgia Manufacturing Survey, along with key insights from industry leaders, will be available at the end of September. You can request a copy here.

More than 450 Georgia manufacturers participated in this year’s survey, which was conducted in early 2018 and was sponsored by Aprio, the Georgia Manufacturing Extension Partnership (GaMEP) at the Georgia Institute of Technology, the Georgia Department of Labor and Kennesaw State University.

The survey began nearly a quarter of a century ago and is held every two to three years to benchmark advances in manufacturing technology, practices and techniques.

Karen Fite is the director of the Georgia Manufacturing Extension Partnership (GaMEP) and other programs based at the Georgia Institute of Technology that serve manufacturers. She holds an MBA from the University of Miami and a B.S. in health systems from Georgia Tech.

Adam Beckerman is the partner in charge of Aprio’s Manufacturing & Distribution group. He earned a B.A. in accounting from State University of New York College at Plattsburgh.