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Attracting, Developing & Retaining
Automotive Talent in Michigan
Kristin Dziczek
Director, Industry & Labor Group
CAR Industry Briefing
23 June 2015
The Research
• Attracting & retaining world-class talent is one of the three main pillars of the MEDC Automotive Strategic Plan
• CAR examined automotive industry talent needs for:
– Engineers
– Technicians
– Designers
– Software Developers
– Skilled Trades
– Production
• The needs were related to five areas of technological change:
– Connected & automated vehicles
– Lightweight & multi-material vehicles
– Powertrain & propulsion
– Advanced manufacturing systems
– Supply chain & logistics
• We looked two, five & ten years out at:
– Anticipated hiring & attrition
– Organizational hiring & training practices
– Required knowledge & skills
– Desired education & training
Methodology
• One-on-one structured interviews and data collection:
– Five automakers, representing 63% of U.S. sales (including the four largest in North America)
– Eight automotive suppliers, representing over $36 Billion in North American OE sales
– Four emerging technology companies
– Engineering hiring managers, HR executives, technical leads
• Literature review
• Data
– Proprietary CAR databases
– Proprietary company data
– State & Federal government data
– Commercially-available data
U.S. Vehicle Production & Automotive Employment
Forecasts: 2015-2018
2013 2014 2015 2016 2017 2018
Vehicle Production 11,100,000 11,600,000 12,000,000 12,300,000 12,100,000 12,100,000
Automotive Employment 686,100 736,000 760,000 780,000 760,000 760,000
500,000
600,000
700,000
800,000
10,000,000
10,500,000
11,000,000
11,500,000
12,000,000
Emp
loym
en
t
Pro
du
ctio
n
Source: Automotive News; Center for Automotive Research; BLS
Michigan Vehicle Production & Automotive
Employment Forecasts: 2013 – 2018
2013 2014 2015 2016 2017 2018
Vehicle Production 2,439,819 2,356,510 2,446,588 2,483,121 2,558,863 2,611,947
Automotive Employment 154,100 158,700 165,000 167,000 172,000 175,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
2,200,000
2,250,000
2,300,000
2,350,000
2,400,000
2,450,000
2,500,000
2,550,000
2,600,000
2,650,000
Emp
loym
en
t
Pro
du
ctio
n
Source: LMC-Automotive; BLS; Center for Automotive Research
FCA, Ford & GM Total U.S. Employment
2001 – 2018
304
287 279
261 250
213
176
140
114 115 114 120 135
142 147 147 145 145
105 100 98 95 90 85 74
62 56 59 62 67 77 81 85 85 83 84
25.8% 26.7%
28.6%
30.6%
33.8%
35.8% 36.5% 36.5% 36.5%
0
50
100
150
200
250
300
3502
00
1
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
Emp
loye
es (
Tho
usa
nd
s)
Hourly Salaried Salaried Share of Employment
Source: Center for Automotive Research
FCA, Ford & GM Total Michigan Employment
2001 – 2018
137
129 125
117 111
97
81
65
57 54 54 56
64 61 63 64 66 67
77 72 71 70 68 65
58
49 45 46 49
53 60 62 63 64 63 64
35.9% 37.4%
40.3%
43.2%
46.1% 48.4%
50.5% 50.0% 49.0%
0
20
40
60
80
100
120
140
16020
01
2002
200
3
2004
2005
2006
2007
2008
2009
2010
2011
201
2
2013
2014
2015
2016
2017
2018
Emp
loye
es (
Tho
usa
nd
s)
MI Hourly MI Salaried Salaried Share
Source: Center for Automotive Research
Students Graduating from Michigan Schools
2002-2020
0
50,000
100,000
150,000
200,000
250,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Nu
mb
er o
f G
rad
uat
es
High School Associate Bachelor
Source: National Center for Education Statistics (NCES) and Center for Automotive Research estimates 2015
Automotive Related Degree Completions per
100,000 (2011-2012)
0
5
10
15
20
25
30
35
40
45
Nu
mb
er
of
De
gre
es
pe
r 1
00
,00
0
National Michigan Region
Design Computer/ Electrical Engineering Technologies
Math & Statistics
Physical Sciences
Computer/ Electrical Engineering
Engineering Technology & Related Fields
Engineering Other
Mechanic/ Repair Technologies
Computer & Information Sciences
Source: National Center for Education Statistics
Includes Bachelor’s Degrees and Above
Automotive Related Degree Completions in
Michigan by Category, 2011-2012
Computer and Information Sciences
24%
Mechanic and Repair Technologies/Technicians
13%
Engineering Technologies and Engineering-related
Fields 12%
Computer/Electrical Engineering
11%
Engineering, Mechanical 9%
Engineering Other 6%
Mathematics and Statistics 5%
Computer/ Electrical Engineering Technologies
5%
Physical Sciences 5%
Engineering, Civil 3%
Engineering, Industrial 3%
Engineering, Chemical 3%
Design 1%
Includes Bachelor’s Degrees and Above
Source: National Center for Education Statistics (NCES) and Center for Automotive Research estimates 2015
Top States with CAV Related Degree Completions
(Bachelor or Higher) in 2011-2012
17,479
11,999
9,551 8,794
7,425 6,435
5,424 5,313 4,903 4,822 4,808 4,102 4,010 3,865
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
CA NY TX PA IL FL VA MA MI MD OH AZ NC GA
Nu
mb
er
of
De
gre
e C
om
ple
tio
ns
Source: National Center for Education Statistics
The Challenge to Find Talent
• Plenty of applicants; but applicants with the desired skills are hard to find
• Difficulty filling positions
– Only 40% of positions filled in the last 12 months
– 80 day average per position—about 20-35 days “too long”
• 80% of respondents have difficulty finding talent in the region
– 50% say talent is hard to find anywhere
– So, moving the job to another location is not always a solution
• Suppliers are competing with their customers for talent
Source: Center for Automotive Research interviews with automakers & supplier executives
Recent Auto Industry Hiring by State/Region
• Over 30,000 job postings in 15 months
• Nearly half of all jobs posted are located in Michigan (in line with historical trends)
• Job postings are not 1-to-1 related to positions hired
Source: Labor/Insight Jobs
MI 14,056
46%
OH 1,824
6%
IL 958 3%
IN 900 3%
TX 2,029
7%
NC 894 3%
TN 757 3%
KY 725 2%
CA 1,057
4%
WA 1,043
3%
17,738 58%
4,405 15%
2,100 7%
6,086 20%
South
Other States
Midwest West
Top Employers in the United States and Michigan Auto and Parts Manufacturing Jobs (by postings): January 1, 2014 – 2015 YTD
6,185
4,903
2,199
1,788
1,557
1,404
1,366
899
759
723
4,261
4,633
322
1,040
825
-
52
597
569
466
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
GM
Ford
Chevrolet
TRW
Federal Mogul
Honda
Mitsubishi
FCA
Continental
Daimler
Job Postings
United States
Michigan
Source: Labor/Insight Jobs
n = 30,329
Source: Labor/Insight Jobs
Top Job Titles Auto and Parts Manufacturing Jobs (by postings) in the United States: 2014
and 2015 YTD
546 509
363 211
202 199
190 284
225 191
281 234
191 174
96 103
54 43
35 82
39 126
53 39 42 38
150 44
Manufacturing
Systems
Quality
Process
Electrical
Software Development
Mechanical
Auto Technician
Production Supervisor
Maintenance Supervisor
Buyer
Business Analyst
Sales Representative
Sales Manager
Engi
nee
rSk
illed
Trad
esP
rofe
ssio
nal
0 100 200 300 400 500 600
Job Postings w/ Employee Title
2014
2015 YTD
Skills Demand in Auto and Parts Manufacturing Business and Common Skills: 2014 and Q1 2015
14,644
11,698
10,714
7,008
6,837
3,147
2,114
3,344
2,555
2,420
1,555
1,334
755
486
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
Communication andCoordination
Problem Solving
BusinessEnvironment
Project andProcess Flow Skills
Finance andAccounting
Sales & Marketing
Training andStaffing
Co
mm
on
Bu
sin
ess
Job Postings Seeking or Requiring Each Skill
2014 ( n = 24,669)
2015 YTD (n = 5,660)
Source: Labor/Insight Jobs
Skills Demand in Auto and Parts Manufacturing Engineering and Sciences: 2014 and 2015 YTD
3,135
2,453
2,248
2,065
679
1,440
395
311
221
761
655
571
558
150
276
127
80
63
0 500 1,000 1,500 2,000 2,500 3,000 3,500
General
Electrical & Electronic
Design & Dev.
Mechanical
Energy Efficiency
Quantitative Research
Physics
Materials
Chemistry
Engi
nee
rin
gSc
ien
ces
Job Postings Seeking or Requiring Each Skill
2014 (n = 24,669)
2015 YTD (n = 5,660)
Source: Labor/Insight Jobs
Skills Demand in Auto and Parts Manufacturing IT, Manufacturing, and Skilled Trades: 2014 and 2015 YTD
3,918
2,988
996
2,664
1,639
1,852
2,230
504
577
898
732
275
633
409
419
609
137
136
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Supply Chain and Logistics
Dev. and Engineering
Testing and QA
Advanced
General
Construction
Repair
Production (General)
Production (Welding)
ITM
fg.
Skill
ed T
rad
es
Job Postings Seeking or Requiring Each Skill
2014 (n = 24,669)
2015 YTD (n = 5,660)
Source: Labor/Insight Jobs
Skills in Demand in the CAV Space
• Electrical Engineering • Computer Science/Software Engineering • Mathematics—geometry, algorithms • Mechanical Engineering • Hardware testing/calibration • Supply Chain Management/Logistics
• Software Skills: – Embedded automotive software
(including RTOS such as ThreadX and QNX)
– Agile development – Linux—becoming the basis for
infotainment and instrument cluster – Network protocols
• Hardware Skills: – Higher-level VHDL (VHSIC Hardware
Description Language) – VLSI (Very Large Scale Integration) – SPGA (Staggered Pin Grid Array)
Source: Center for Automotive Research interviews with automakers & supplier executives
Engineering Fields Dominate the Job Titles,
but the Most Sought-After Skills are Non-Technical
The overwhelming demand is for technical skills PLUS:
• Communication
• Coordination
• Problem Solving
• Project & Process Flow
• Language Skills & Cross-Cultural Communication
Source: Center for Automotive Research interviews with automakers & supplier executives
Where do Employees Learn These “Soft Skills”?
1. Co-ops and Internships
2. Extracurricular teams
3. Experiential learning
4. Academic coursework
5. On the job
Source: Center for Automotive Research interviews with automakers & supplier executives
Not All Auto Suppliers Have Formal
Co-op/Internship Programs.
• 88% of auto supplier have a co-op/ internship program
• Mostly hire undergraduates and advanced degree students, but some work with high school juniors & seniors
• Only 57% of auto suppliers surveyed have a formal program
Source: American Society of Employers
Private & Public Spending on Job Training is Not
Growing; Hours of Training/Year Remain Flat
0
5
10
15
20
25
30
35
40
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Lear
nin
g H
ou
rs U
sed
Trai
nin
g Ex
pe
nd
itu
res
(20
12
Do
llars
)
Annual Learning Hours Used per Employee
Direct Training Expenditures per Employee
$0
$1
$2
$3
$4
$5
20
06
20
07
20
08
20
09
AR
RA
20
10
20
11
20
12
20
13
Fed
era
l Sp
en
din
g, B
illio
ns
U.S
. $
Sources: ASTD 2014 State of the Industry Report; Budget of the United States, Table 9.1
Direct Corporate Spending on Training per Employee and Hours Spent in Training per year, 2006-2013
U.S. Federal Spending on Training & Employment Services, 2006-2013
Number of Apprentice Programs has been Falling;
The Number of Active Apprentices Grew in 2014
83
65
53 58
62 67 69
204
192
175
162 153 150
160
37 29 29 30 29 26 22
0
25
50
75
100
125
150
175
200
225
2008 2009 2010 2011 2012 2013 2014
Ap
pre
nti
ces
Tho
usa
nd
s New Apprentices
Active Apprentices
Program Completers
1,145 1,072 940 801 898 590 612
12,146 11,915 11,404
10,223 10,166 9,539
8,828
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2008 2009 2010 2011 2012 2013 2014
Ap
pre
nti
cesh
ip P
rogr
ams
New Programs
Active Programs
Source: U.S. Department of Labor, Bureau of Labor Statistics
U.S. Apprenticeship Programs, 2008-2014 U.S. Apprentices, 2008-2014
Experienced Hires are in High Demand.
519
126
1,048
200
874
426
4,405
1,215
488
311
4,569
1,408
233
137
1,628
677
0% 20% 40% 60% 80% 100%
High School
Certificate /Associate
Bachelor
Graduate /Professional
Desired Experience by Educational Level
< 2 years 2 to 5 years5 to 8 years > 8 years
Source: Labor/Insight Jobs
75%
88%
91%
94%
37%
The Industry Didn’t Hire That Many People Between 2007-2010
Employers Report Very Little Pressure to Raise Wages
for Engineering/Technical Hires
• Despite a “shortage” of candidates, a vast majority of employers we interviewed report little or no upward wage pressure…with a few notable exceptions:
– Embedded systems
– Software/hardware integration
– HMI design
– Candidates with experience (acquired through employment and/or experiential learning)
• Competition is not all in Michigan, United States, or North America, so salaries must be in-line with employees in other countries
Source: Center for Automotive Research interviews with automakers & supplier executives
Wage Comparisons Charts, Selected Occupations in U.S.
Motor Vehicle & Parts Manufacturing, 2010 and 2014
61.5
89.7
121.9
57.5
84.4
121.6
$0
$40
$80
$120
$160
10th 50th 90th
Avg
. An
nu
al W
age
s 2010 (Adjusted) 2014
53.2
79.1
112.0
50.4
73.9
106.6
10th 50th 90th
54.0
80.5
113.9
49.9
76.7
111.8
10th 50th 90th
46.1
77.2
101.6
49.8
73.1
106.0
10th 50th 90th
22.2 31.9
46.4
21.2 29.9
44.0
$0
$25
$50
$75
$100
10th 50th 90th
Avg
. An
nu
al W
age
s
35.9
51.6
78.6
34.2
48.1
71.4
10th 50th 90th
24.9
36.9
49.6
22.2
33.4
48.4
10th 50th 90th
38.1
57.9
81.0
35.5
53.9
74.1
10th 50th 90th
Mechanical Engineers Materials Engineers Electrical Engineers Industrial Engineers
Team Assemblers Industrial Machinery Mechanics CNC Programmers Tool & Die Workers
Source: U.S. Department of Labor, BLS and U.S. Department of Commerce, Bureau of the Census, Current Population Survey
Employers Report a Shortage of Qualified Candidates, but
Little to No Upward Wage Pressure. Something has got to give.
Grow Your Own
Realign Expectations
Raise Pay Find
Substitutes
Look Where Others Are
Not Looking
Source: Center for Automotive Research
Kristin Dziczek [email protected]