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Manufacturing Matters! Conference Update: The Skills Gap: Is it Real?

Michael Reader

The Manufacturing Matters! Conference was held at the Hyatt Regency in Milwaukee on Thursday, February 27, 2014.  The conference was sponsored by the Wisconsin Manufacturing Extension Partnership (WMEP), which focuses on delivering unmatched opportunities for learning, networking, and collaboration.

For 17 years, the conference has raised public awareness of the vitality, strength and contributions of the manufacturing sector, and promoted the well-being of manufacturing as essential for a healthy, vibrant economy in Wisconsin.

One of the conference’s breakout sessions was a spirited debate concerning the skills gap.  The room was packed full to hear an exchange between Professor Marc V. Levine, Founding Director of the Center of Economic Development of University of Wisconsin at Milwaukee, Mike Reader, President of Precision Plus, and Eric Isbister, CEO and co-owner of GenMet Corporation. WMEP President Buckley Brinkman moderated the panel discussion.

The subject being debated was the existence–or absence thereof–of a manufacturing skills gap in Wisconsin, and the program was headlined as “The Skills Gap: It is Real?”  The controversy stemmed from a 2013 study conducted by Levine, who proposed the manufacturing skills gap to be just a myth.

Levine’s arguments were based on statistical data of national averages in a job creation crisis scenario. Isbister and Reader contradicted Levine’s findings, by suggesting that the crisis was with skills, not job creation.

A summary of their views:

  Job Crisis

  • Creating too few
    good jobs
  • Economic numbers don’t
    support crisis
  • Well educated workforce
  • Skills just one piece
    of the puzzle
  • Employers aren’t effective “finders”
  Skills Crisis

  • Too few qualified workers
    to fill jobs
  • 82% of all manufacturers
    cite problems
  • Unskilled workforce
  • Skills are a
    critical need
  • Engaging more channels
    than ever

According to an article in BizTimes.com by Dan Shafer, “Isbister called the study itself ‘detrimental’ to the future of manufacturing,” alleging that it discourages people from pursuing high-skilled careers in this field.  Mary Baer, Director of Member Development a Waukesha County Business Alliance, said there was a “disconnect between educators like Levine and the business community.”  Both Reader and Isbister extended Levine an invitation to visit their particular facilities, and observe the skill gap first hand.

At the end of the debate, Brinkman gave Levine credit for “appearing in front of a group of passionate manufacturers who all dispute the findings.” Levine mentioned that he it was not his intent to harm the industry, and that he considers “manufacturing…the heart of innovation.”

180 High School Students Attend the First Manufacturing Career Panel Discussion at Elkhorn Area High School in Wisconsin

Michael Reader

Despite an 8” snow fall, on February 27, 2013 180 high school students from Elkhorn, Lake Geneva and William’s Bay gathered at Elkhorn Area High School’s  Wehner Auditorium to listen to a panel of manufacturing professionals discuss the vast possibilities available today in the world of hi-tech manufacturing.  The program was entitled “Elkhorn Area High School – Manufacturing Career Panel.”

This manufacturing awareness initiative began in late July of 2012, when 40 business representatives from Walworth County—most of them manufacturers—met to discuss the skills gap and the increasing demand for skilled manufacturing professionals.   The vision was clear: to strive for the collaboration of businesses, the academic world and legislators in order to validate the impact that the manufacturing sector (or its absence) has on the overall economy of the state and the country.  Additionally, the group agreed to foster initiatives aimed to bring up a new crop of world-class manufacturers through relevant education.   The mission was also clear:  to make the vision happen, and to dispel the current stigma hovering over the notion of pursuing a career in manufacturing.

“The real world of 21st Century manufacturing is totally different than its mid-century predecessor,” comments Mike Reader, President of Precision Plus   “Today, manufacturing is the engine behind every “Top-Gun” pilot’s aircraft, the tools behind every surgeon’s life or death decision, the technique behind every tractor reaping the best of the crop, and even the reality that made the Mars Rover Mission possible. “

“Today’s manufacturing industry is not looking for unskilled workers, but instead, is looking for the cream of the crop,” adds Mike Reader, “Only 3 out of 100 candidates makes the cut. The manufacturing industry needs people who will make James Bond succeed and we’re willing to train them on the job and pay them a salary comparable or even greater than any college graduate.  But they have to have the drive and the will.”

Late in 2012, Precision Plus invited twenty-four area educators to tour its facilities in Elkhorn, WI and to discuss the manufacturing possibilities available for high school graduates in the area. The exchange resulted in the implementation of a program aimed to educate high school students about the reality of a future in manufacturing.  Under the diligent leadership of EAHS’s Career and Technical Education Coordinator JoAnne Pella and the support and endorsement of Principal Tina Bosworth, a Manufacturing Career Panel was organized for February 27, 2013.

The event was formatted as a panel discussion.  The manufacturing professionals panelists were Dan Murphy,  Regional Sales Manager at Rem Sales, LLC; Darlene Miller, President and CEO of Permac Industries; John Murphy, President of Morris Midwest, LLC; Olaf Tessarzyk, Managing Partner of ZPS America, LLC, and Mike Reader, President of Precision Plus  For one and a half hours, the panelists and students engaged in a genuine discussion about the state of the industry and the possibilities manufacturing has available for young people finishing high school.

It was pointed out by the panelists, that the marked difference between a regular college education vs. a technical college education and/or on-the-the-job training was the opportunity to have real-work experience rather than strictly classroom instruction.  A person learning and experiencing the art and science of machining,  may continue on as business owner, as a program developer, design engineer, quality control engineer, management leader or sales professional, to name a few, and have the real-life experience to understand how to transform ideas into reality.  The machining industry opens the doors to limitless possibilities, offering rewarding careers to “Top Gun” candidates, both men and women.

Following the panel discussion, several tours have been scheduled for students to visit area manufacturers.  The next phase in the manufacturing awareness program is to develop internships for high school and college students, to coordinate learning opportunities with local technical colleges and to seek increased support of  local, state and national legislators.


Wisconsin Lt. Governor Rebecca Kleefisch to Tour Precision Plus on Friday, February 22, 2013

Michael Reader

February 19, 2013, Elkhorn, WI – In a continued effort to increase Wisconsin’s in-state manufacturing, particularly in the aerospace and aviation sector, Lt. Governor Rebecca Kleefisch will tour the facilities of Precision Plus of Elkhorn, Wisconsin.  She will be joined by Wisconsin Economic Development Corporation’s (WEDC)  Executive Director Reed Hall and Communications Manager Tom Thieding.

The purpose of this tour and discussion is to present Lt. Governor Kleefisch with a clear picture of Wisconsin’s manufacturing supply chain, showing how the State can benefit from developing additional manufacturing opportunities.  By engaging State agencies in promoting advanced manufacturing targeting the aerospace and aviation industries, the State of Wisconsin can also benefit from the growth potential offered through this type of business development.

“We are excited to have the Lt. Governor and WEDC Executive Director tour our manufacturing facility,” said Precision Plus President Michael Reader.  “It is critical to the State’s economy for us to work together in promoting advanced manufacturing as we offer great career opportunities and compensation packages for highly-skilled machinists and support personnel.”

Precision Plus is a high-precision machining and solution provider to numerous OEMs around the world.  With over 8 million dollars spent on state-of-the-art machining equipment over the past 5 years, and a staff of highly-skilled machinists, Precision Plus has been recognized as a leading supplier of Swiss-type and CNC-turned components.  The company was recommended to WEDC by a large aerospace group as a supplier well-positioned to help grow Wisconsin’s aerospace and aviation industries.  Mr. Reader added, “Let’s put hard working Wisconsinites back to work in rewarding careers and grow our way out of this economic slump”.

The event will take place on Friday, February 22 from 3:45pm until 5:00pm (originally scheduled from 9:30am until 10:45am ) and Precision Plus cordially invites the news media and press to partake in the tour and discussion.  Precision Plus is located at 840 Koopman Ln., Elkhorn, Wisconsin 53121.  Should this tour need to be rescheduled due to anticipated weather conditions in our area, it will be announced on our social media channels and on this blog.

Precision Plus is devoted to bringing manufacturing back the United States through awareness and education and actively promotes its vision within the State of Wisconsin and the country.

For more information on this event, please contact Michael Reader at (262) 743-1700 x105 or via electronic mail.