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Michigan Manufacturing Insight : July/August 2002

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Feature Articles

Michigan Economic, Workforce Forecasts Accent Need for Trained Workers

By Brad Ritter

Michigan is ahead of the national average in quality of life, globalization of its economy and education level, but high business costs and a lagging infrastructure — as well as a shortage of new workers entering the manufacturing workforce — could hamper sustained economic growth for the state.

That’s the picture painted by three recently released studies on Michigan’s economic competitiveness, career guidance and decision-making of American youth and skills shortages in the national economy. “Benchmarks for the Next Michigan,” compiled for the Michigan Economic Development Corporation by SRI International, compared seven foundational measurements for Michigan’s economy against those of “peer” and regional states. The study examined Michigan’s position in human investment, financial resources, innovation resources, infrastructure, business costs, globalization and quality of life.

Michigan scored ninth overall in the national ranking, with high scores for quality of life (fourth), globalization and vitality (seventh) and innovation resources (seventh). The state ranked lowest in business costs (42nd) and infrastructure (22nd).

The “Decisions Without Direction” study was conducted for Ferris State University’s Career Institute for Education and Workforce Development in partnership with the National Association of Manufacturers (NAM), the Precision Metalforming Association Educational Foundation and the Associated Equipment Distributors Foundation.

Conducted by the Lansing polling and research firm EPIC-MRA, the study interviewed 809 high school juniors and seniors nationwide using the same basic framework of a poll done in spring and fall 2000 with Michigan high school students.

The national results closely paralleled those of Michigan students, showing that the greater percentage of students (68.3 of females and 67.2 of males) planned to attend a four-year college or university, while 28.2 percent of females and 23.5 percent of males planned to attend a two-year college.

Overall, 72 percent of students surveyed said they’d already chosen their desired career, with the highest percentage (21 percent) indicating an interest in a career in healthcare. Only 3.2 percent indicated an interest in engineering as a career and 2.7 indicated they’d pursue an automotive-related career. Most students chose a personal interest field over practicality in indicating their career choice; 35 percent of those responding saying they’d prefer doing “something I like” and only four percent chose careers because of “good money.”

Along with the high degree of interest in healthcare careers, 51.1 percent of respondents perceived healthcare as a field with the greatest opportunities. In a striking contrast, 6.8 percent of students planned to pursue a computer-related career, but 47.6 percent perceived high opportunity in the field. While 3.2 percent planned to pursue an engineering career, 8.7 percent perceived opportunity in the field.

Finally, NAM, its Center for Workforce Success and Andersen released “The Skills Gap: 2001,” the latest in a periodic survey of future trends in manufacturing skills development and retention. The report’s major findings indicated a widening shortage in skilled hourly employees; a serious deficiency in both current hourly workers and applicants in basic employability skills such as attendance, timeliness and work ethic; and a growing reliance on technical colleges, community colleges and business associations, such as MMA, as top sources for outside skills and workforce training.

“More than half of respondents believe the government’s role in the effort to attract and retain a highly effective workforce should be in the form of tax relief for companies offering training,” the report said. “One-third said the government should provide direct funding to companies for employee training.” The report found that 80 percent of respondents said that voluntary turnover is highest among hourly production workers. The most common reason employees voluntarily leave was for higher wages. “Respondents said that monetary incentives are the most effective recruitment and retention practices.”

Brad Ritter is communications specialist for the Michigan Manufacturers Association. He may be reached at 800-253-9039 ext. 542 or 517-487-8542.

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