Industry and Education A Great Combination STEM Initiative

Industry and EducationIndustry and EducationA Great CombinationA Great Combination

STEM InitiativeSTEM Initiative

CONFIDENTIAL INFORMATION

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Manufacturing Impact – Oconee CountyManufacturing Impact – Oconee County

Locally $230 million dollars of payroll $60 million dollars in benefits 1 out of every 5 jobs direct – 6000 jobs Thousands of indirect jobs generated Second Highest per capita income Support to Charities Tax base impact (eight of top ten contributors are

manufacturing organizations)


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FactsFacts

Nationally US remains the worlds largest manufacturing

economy – producing 21% of global manufactured products

Today – manufacturing makes up 12% of GDP Roughly 12 million manufacturing jobs 52% of jobs actually produce the product 48% is in support services Avg. manufacturing employee annual income: $72K

vs. $58K for non-manufacturing (fully fringed)

Source: National Association of Manufacturers


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The Power of US ManufacturingThe Power of US Manufacturing

US Manufacturing alone would rank as worlds 8th largest economy


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R&D Spending as a PCT of SalesR&D Spending as a PCT of Sales

U.S. Industrial R&D Outpaces Global Rivals


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GlobalizationGlobalization

“When I was growing up, my parentsused to say to me, ‘Tom, finish your

dinner. People in China and India arestarving.’ Today I tell my girls, ‘Finishyour homework. People in China and

India are starving for your jobs.”

—Thomas Friedman, Author

The World is Flat: A Brief History of the Twenty-first Century


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The ChallengesThe Challenges

• Even at the height of the global recession, 32% of surveyed companies reported moderate to serious skills shortages in the hiring pool.

• Contributing to our workforce challenges are:o Demographics: We face a graying workforce

coupled with a shrinking pipeline. o Technological advances in modern

manufacturing require more advanced skill sets.

o Major deficits in our education system hamper U.S. competitiveness on the world stage: our global competitors continue to surpass our educational system in producing a high-volume, high-quality technical workforce.

Source: People and Profitability—A Time for Change


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An Educated and Skilled WorkforceAn Educated and Skilled Workforce

In these tough economic times, business innovation is a strategic imperative.

A highly skilled and educated workforce is the most critical element for innovation success.

Workforce Quality

Innovation Performance

Source: The Innovation Imperative in Manufacturing – How the United States Can Restore Its Edge


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The Shrinking PipelineThe Shrinking Pipeline


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5th Grade

High School & Higher-Ed.

8th Grade

75% = Lost STEM Pipeline

Supply Chain Model of the STEM PipelineSupply Chain Model of the STEM Pipeline


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Educational DeficitsEducational Deficits

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Source: Facts About Modern Manufacturing, 8th Edition


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Paths to Manufacturing Through EducationPaths to Manufacturing Through Education

A highly educated and skilled workforce for U.S. manufacturing

Increased graduation rates, post-secondary enrollment and completion, and advanced- education attainment

Excitement about STEM and awareness of high-paying, high-quality manufacturing careers

Prepared for the University of Phoenix Foundation

The Need The Solution

Technology-infused, more “life-relevant” education

Increased access to post-secondary degrees and industry-recognized credentials

Clear career pathways aligned to competency-based education and certification programs

Excitement about STEM and awareness of high-paying, high-quality manufacturing careers


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Perception is RealityPerception is Reality

71%

30%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Average American's feel manufacturing isimportant to economic stability/grow th

Parents encourage their children to go intomanufacturing

Students choose manufacturing in top 2career choices


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Global Compensation - Automotive – Hourly - Global Compensation - Automotive – Hourly - 20072007

Hourly Hourly HourlyCompensation Benefits Costs

per per perHour Worked Hour Worked Hour Worked

Germany 34.00 11.94 45.94 Canada 25.79 10.77 33.33 UK 25.50 10.75 33.05 Japan 23.90 7.97 31.91 USA 22.58 7.56 29.63 France 20.28 6.12 28.99 Italy 18.86 5.09 28.25 Korea 14.68 4.43 17.46 Taiwan 13.61 2.78 14.53 Brazil 7.15 2.65 11.58 Hungary 6.93 1.12 9.59 Mexico 3.77 0.92 4.89 China 1.75 0.79 2.54 India 0.66 0.10 0.76 WORLD 24.91 10.38 35.29


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Global Compensation - Automotive – Global Compensation - Automotive – Salary - 2007Salary - 2007

Salaried Salaried SalariedCompensation Benefits Costs

per per perEmployee Employee Employee

Germany 89,681 30,313 111,539 USA 78,967 26,491 101,617 UK 66,728 23,854 90,582 Japan 62,888 22,780 79,816 Canada 57,218 22,650 78,536 France 55,756 21,858 77,003 Taiwan 54,843 16,928 72,607 Korea 54,813 15,758 71,350 Italy 46,690 15,389 64,553 Brazil 44,859 13,221 56,672 Hungary 28,372 9,740 43,505 China 27,747 7,417 41,593 Mexico 22,318 4,046 29,735 India 9,598 1,830 13,645 WORLD 76,575 21,725 98,299


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Changing MixChanging Mix


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The Changing NatureThe Changing Nature


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The Changing TermsThe Changing Terms


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The Importance of Enhanced SkillsThe Importance of Enhanced Skills


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The Workforce GapThe Workforce Gap

*1998-1999 State Department of Education Special Survey **Source: D’Amico,C. Workforce 2020


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Business Operations over next 2 YearsBusiness Operations over next 2 Years

97% maintain or expand


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Workforce Size over the next 2 YearsWorkforce Size over the next 2 Years

88% or 45 out 51 will maintain or grow


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Factors impacting CompetitivenessFactors impacting Competitiveness

59.7% or 40 out of 67


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ImpactImpact

State and Local Level


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In 2001, according to five national surveys, South Carolina had a high school graduation rate somewhere between 48 percent and 62 percent. All surveys ranked South Carolina 49th or 50th in the nation in graduation rate1

53% of high school students graduate in four years — the nation’s lowest “on time” graduation rate in 20032

73% of high school students graduate in four years in Oconee County in 2010

33% of 8th graders scored below the basic reading level in 20053

1Higher Education Information Service 2003, United Health Foundation 2004, Urban Institute 2004, National Board on Educational Testing and Policy 2004 8th, Manhattan Institute 2003

2Education Week publisher research.3Annie E. Casey Foundation, 2005 Kids Count report.

The State of Education and Workforce Development The State of Education and Workforce Development in South Carolinain South Carolina


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Workforce DevelopmentWorkforce Development

Recognize we (manufacturing) are part of the problem

It’s just not the school system – we own an equal level of responsibility. It was time to get involved with our local school administrators – play a supporting role.


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Workforce PreparednessWorkforce Preparedness

Establish a partnership with the local school system

Propose a meeting with the School Board, Superintendent, Principals and Counselors to introduce manufacturing to them.

Invite them into a manufacturer to learn about manufacturing Job Opportunities Income Benefits Environment Capital Investment / Technology Our Needs

Prepare a presentation that acknowledges the need to work together. Do your homework. (Example of Package going around room).


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November 2007 Oconee County Superintendent Mike Lucas,

administrators, principals, counselors, school board members meet at BorgWarner for a full day of information sharing.

After lunch, every guest was sent to the manufacturing floor to run production equipment, witness the environment, technology, and the skill base of the employees.


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What Students Really Need to SucceedWhat Students Really Need to Succeed

Employer Expectations Fundamental academic

knowledge Excellent technical skills Workplace habits that

maximize employability Flexibility to update or change skills Organizational skills

Top Five Most Important Skills Professionalism Teamwork Oral Communication Ethics and Social Responsibility Reading Comprehension

Describe our expectations as employers

42% of Employers report the overall preparation of high 42% of Employers report the overall preparation of high

school graduates as deficientschool graduates as deficient


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School Administration AwarenessSchool Administration Awareness

Is there a specific bias to 4 Year College versus 2 Year or Trades Certification amongst school counselors?

Do local school administrator’s clearly understand manufacturing's environment and needs?

Do local school administrator’s clearly understand the compensation levels of manufacturing workers?


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The Workforce GapThe Workforce Gap

•Advanced technical training / certification, 2 year and 4 year degrees will lead to higher earning careers.

The Reality: 85 Percent of Jobs Require 85 Percent of Jobs Require Education / Training Beyond Education / Training Beyond High SchoolHigh School


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2007/8 Initiative

Identify a Vehicle to utilize to get involved: The Education and Economic Development Act (EEDA) of

2005

Personal Pathways to Success…………..


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Personal Pathways to Success: Personal Pathways to Success: A New Vision for EducationA New Vision for Education

The Education and Economic Development Act (EEDA) of 2005 establishes a new vision for education based on the idea of “Personal Pathways to Success” for all students

This system integrates academic and career-tech education into a unified system that offers more and better ways for all students to succeed


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Elements of the Education and Economic Elements of the Education and Economic Development ActDevelopment Act

Help students connect education to careers of their choice

Increase the number of guidance and career counselors to achieve a 300 students to one counselor ratio

Establish clusters of study and Individual Graduation Plans (IGPs) for students

Provide for parental review and approval of IGP with student and counselor

Identify at-risk students and provide programs to increase graduation rate


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Elements of the Education and Economic Elements of the Education and Economic Development ActDevelopment Act

Align requirements for high school graduation with college entrance

Establish articulation agreements making K-16 education seamless

Create dual-enrollment agreements for high school and college coursework

Create Regional Centers to connect students, educators, employers, and the community

Create a Coordinating Council to oversee implementation of EEDA


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Clusters of study provide focus and direction as Clusters of study provide focus and direction as students plan their courseworkstudents plan their coursework

There are 16 clusters of study as established by the U.S. Department of Education

School districts will offer courses organized around these clusters of study

Each school district will offer a minimum of three clusters

Students can transfer to a different school within their district if that school offers a cluster of study unavailable at the student’s assigned school


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Clusters of StudyClusters of Study

A/V Technology and Communications

Agriculture, Food and Natural Resources

Architecture and Construction

Business, Management and Administration

Education and Training

Finance

Government and Public Administration

Health Science

Hospitality and Tourism

Human Services

Information Technology

Manufacturing

Marketing, Sales and Service

Public Safety and Security

Science, Technology, Engineering and Mathematics

Transportation, Distribution and Logistics


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Individual Graduation PlanIndividual Graduation Plan

An IGP also: Includes general graduation requirements as well as

coursework and out-of-classroom learning opportunities related to the student’s cluster of study

Encourages students to begin planning for their futures now, making them more aware of what it takes to achieve their goals

Is flexible and can change based on a student’s aspirations, abilities and interests

An Individual Graduation Plan (IGP) is a road map that guides students toward their education, career or employment goals


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Number of Students by Cluster 2009-10

22603931

1047413268 14781

44335

30369

5270 5226 64058142

22672

2426

6431

1203314088

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Series1

South Carolina Total Students by ClusterSouth Carolina Total Students by Cluster

Manufacturing Ranks 14 out of 16


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Show them the MoneyShow them the Money

Manufacturing #2 employment sector ~ second only to retail The average manufacturing wage of $46,192 is more than 27% above the

statewide average. SC Manufacturing jobs in demand:

Design Engineers Process/Production/Manufacturing Engineers Quality Managers with expertise in Kaizen, LEAN, Six Sigma, + Cont. Improvement CAD Modelers and Programmers Operations and Production Managers Facility Managers (Energy Use Specialists) Field Service Technicians IT Programmers IT Project Managers Environmental, Health, and Safety Specialists Manufacturing Process Technicians Maintenance Mechanics Machining Specialists Plastics Molding

Sources: The Economic Impact of Manufacturing in SC, Dec. 09, Bureau of Labor Statistics, Quarterly Census of Employment and Wages and various others


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Personal Pathways to SuccessPersonal Pathways to Success

Personal Pathways means New motivation for student achievement Increased parental involvement in shaping our children’s

futures Increased academic rigor and relevance in our high schools Increased efficiency in higher education as students sharpen

their focus on their goals A more competitive SC economy

A new framework for success—but we must all work together to make it a reality


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Sharing the message Utilizing the “steps to success plan”, it was

determined that an introduction to manufacturing to the 8th grade teachers of Oconee County was the next logical step. This would be done in conjunction with a product showcase, for students, teachers and parents. 8th grade is the first year students will be exposed and

expected to select a career path. Teachers needed to be educated about manufacturing.


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2008 Oconee Product Showcase Got buy in from school system to support product showcase

by making students available during class hours (Over 1500 students participated in product showcase).

22 local manufacturers participated Made displays as interactive as possible Opened Product Showcase up to non-OCIG members Showcases were manned by knowledgeable employees Set aside private showing for educators (night of dinner) Showcase open to students, parents, general public


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2008 Oconee County Product Showcase2008 Oconee County Product Showcase


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2008 Oconee Product Showcase2008 Oconee Product Showcase


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2010 Business and Industry Showcase 2010 Business and Industry Showcase

1st Annual Tri-County Business and Industry Showcase – “An Educational Initiative” To provide a “one stop” venue for students to learn about the

various clusters of study available to them Expanded to all three counties: Anderson, Oconee and Pickens

counties Expanded business representation to include representatives

from all 16 clusters Over 50 local manufacturers and businesses participated Video created for school system to show to students prior to

showcase event Significant press coverage in support of the initiative in all three

counties Outcome

Approximately 6000 students, numerous teachers and administrators and parents attended event


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2010 Business and Industry Showcase – An Educational Initiative


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STEM InstituteSTEM Institute

3rd Annual STEM Institute Three day professional development event. Science, Technology, Engineering and Math. 75 elementary, middle school, and high school

teachers, coordinators, and administrators. All seven school districts of Anderson, Oconee and

Pickens Counties. Held a BorgWarner’s manufacturing plant in

Seneca, South Carolina. AdvanceSC provided funding for the event.


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STEM InstituteSTEM Institute

STEM continued STEM Center for Teaching and Learning, International

Technology and Engineering Educators Association (ITEEA) facilitated the event.

They program focused on ITEEA standards for technological literacy.

For the promotion of improved STEM education for all students.



STEM InstituteBorgWarner

August 2-3, 2011

Documents

Industry and Education A Great Combination STEM Initiative