Skills and Training for Reshoring Success
The Common Compliant about Worker Skills
The growing movement for reshoring is focused on bringing manufacturing back to the United States from offshore countries (particularly Asian nations) that were sent abroad over the last four decades in the name of cost savings. It could be made much cheaper in China, thanks to a 25:1 labor cost advantage, massive government investments, and practically zero regulatory or worker rights issues to deal with. Regular daily readers of 30 Days of HermitCrab already know this, but it is worth repeating as we set up the topic of Day 16: Skills and Training.
Despite the obvious reasons to bring our manufacturing sector back to life via reshoring and Foreign Direct Investment, there seems to be no shortage of hand-wringing worriers in the think tank business that complain that the United States isn’t ready for bringing jobs back. The most common cause of worry – the lack of skilled workers. The same consultant class who advised companies to focus on their core competencies (aka – anything but manufacturing) now tells us that the US does not have the core competency of skilled workers to fill future reshored factories.
They ignore the fact that a case study already exists, and represents the most successful economic transformation in history. Give credit where it is due – China proves labor skill shortages is not a barrier to success. Nevermind how they did it – they succeeded in the largest workforce transformation in history – let’s spend a minute on that.
China Didn’t “Train Their Way” to the Top
China’s ascendence didn’t happen overnight, but it was intentional and deliberate. In the 1980s, China was known for producing junk knock-off products. By the 1990s, they were gobbling up entire sectors of manufacturing, from furniture to apparel to footwear. Then, in 2001, the United States committed the greatest self-inflicted peacetime policy disaster decision ever - we let China into the World Trade Organization (WTO).
Ten years later, in 2011, China officially became the world’s largest manufacturing nation. It ended the U.S.’s 110-year run as the number one country in factory production. In 2009, the U.S. created 19.9% of the world’s manufacturing output, compared to China’s 18.6%. Today, recent figures from the International Monetary Fund (IMF) show that China is in the position of contributing more to global GDP growth than any other economy, including the combined economies of the Group of Seven, in the next five years.(1)
China has the world’s largest manufacturing workforce with over 112 million workers.(2)
How did China end up with 112 million workers in manufacturing? Did they train them all before they were sent into the factories? Of course not. The reality of the Chinese Manufacturing Story is the workers were rounded up, put into factories, and told to “figure it out”. They did, and they did it quickly.
If You Build It, They Will Come
Yes, the Field of Dreams reference makes sense here. The United States is a sleeping giant, with more than enough workers looking to do something bigger than flipping burgers or pouring lattes. Right now, there are not enough options that allow them to make something that lasts and give them a community to manufacture products they can then see on store shelves.
We need to reshore manufacturing, open the shuttered factories, and make an environment that allows workers to return to a career of production. When we build it, they will come. When they come, we will train them.
The Evolution of Worker Training
There are at least seven levels of training progression, starting from straightforward classroom training to the latest virtual reality training methods:
1. Classroom Training: Classroom training remains a cornerstone of effective learning by creating an environment where learners can engage with instructors and peers actively. This method is crucial for topics requiring comprehensive explanations and demonstrations, as it allows for immediate clarification of doubts. Through interactive discussions, collaborative problem-solving, and direct feedback, participants can gain a deeper understanding of complex concepts.
2. Online Training: In an increasingly digital world, online training offers unparalleled flexibility and accessibility. It allows workers to learn on their own schedule, which can be particularly beneficial for balancing work and personal commitments. Online platforms can provide a rich variety of multimedia resources, quizzes, and interactive modules that cater to different learning styles. This training is cost-effective and can be updated with new material, making it an ideal solution for rapidly changing industries or compliance training.
3. On The Job Training: This hands-on method places workers directly in the work environment, providing immediate application of skills and knowledge. On-the-job training is invaluable for understanding the practical realities and nuances of specific roles. It accelerates learning by combining theory with real-world experience, encouraging problem-solving and adaptability. Trainees receive direct mentorship and feedback from experienced colleagues, which helps to quickly build competence and confidence.
4. Apprenticeship: Apprenticeships are a structured, long-term training model that combines practical work with theoretical learning. This approach imparts essential trade skills and also a deeper understanding of industry practices. By working under the guidance of skilled mentors, apprentices develop expertise and professional attributes like discipline and precision. This method not only creates highly skilled personnel but also fosters loyalty and a sense of company culture, often leading to long-term employment relationships.
5. On-Site Training by Equipment Suppliers: Training conducted directly by equipment suppliers or manufacturers ensures that workers receive the most accurate and up-to-date information on handling machinery. This specialized instruction focuses on correct usage, maintenance, troubleshooting, and safety protocols, directly from the experts who know the equipment best. It minimizes operational errors, reduces downtime, and enhances productivity by ensuring that employees are proficient with the specific technologies in use.
6. Virtual Reality (Metaverse) Training: Virtual reality training offers an immersive learning experience by simulating real-world environments and scenarios. This innovative approach allows workers to practice tasks in a risk-free setting, enhancing skills and knowledge retention through experiential learning. It proves particularly beneficial for dangerous or complex operations, enabling trainees to repeatedly practice procedures without the consequences of real-world errors.
7. Virtual Reality with Manufacturing Rep Coach: This advanced training method combines the immersive aspects of virtual reality with the personal guidance of a live manufacturing representative or coach, who can oversee the training remotely. Trainees benefit from real-time feedback and personalized coaching within the VR environment, allowing them to address specific questions and challenges as they arise. The presence of a coach in the virtual environment bridges the gap between theoretical learning and practical application, effectively preparing workers for real-world tasks.
Multiple Approaches to Worker Certification and Workforce Development
All three HermitCrab states have abundant training programs to rapidly develop the required skills needed for entry level manufacturing roles (such as Certified Production Technician, or CPT).
Program: State-Provided Manufacturing Certification Programs and Manufacturing Extension Partnership (MEP) Workforce Development
All three states offer a Manufacturing Certification Program, which includes up to 168 hours of training across Safety, Quality Assurance, Manufacturing Processes & Production, and Maintenance Awareness. The program also includes a Nationally Recognized Certification from MSSC with the successful completion of the 4 modules. Once completed, attendees receive Career Counseling, Resume and Interview Preparation, and Face-to-Face Job Interviews.(3) All three states also offer a Workforce Development Program through each state’s Manufacturing Extension Program (MEP). Specific programs include Customized Industry Training, Instructional Design, and (author favorite) University Student Projects, where smaller manufacturers benefit through the work of university students. In addition to providing successful projects, students get important experience in industry, which better prepares them for careers as manufacturing professionals.(4)
Program: Public-Private Partnerships, such as ManufacturingUSA
The ManufacturingUSA network has 17 manufacturing innovation institutes. These institutes are public-private partnerships that each have a distinct technology focus but work toward a common goal: to secure the future of U.S. manufacturing through innovation, education, and collaboration. They offer extensive Manufacturing USA has developed a national education and workforce development roadmap to help ensure the sector has the support it needs to keep growing.(5) Other great public-private partnerships exist as well, including Manufacturing Skills Institute (https://manufacturingskillsinstitute.org/industry), Scientific Management Techniques (https://www.scientific-management.com/skills-training-programs/), and ApprenticeshipUSA (https://www.apprenticeship.gov/).
Program: Industry-Specific Trade Groups Training Programs
Every significant manufacturing sector in the United States has at least one Trade Group focused on maintaining worker skills and industry expertise. There are too many to name, but some industry examples include:
Ceramics: Ceramic Tech. Academy (https://ceramictechnologyacademy.com/)
Steel: Steel Market Update (https://www.steelmarketupdate.com/)
Textiles: Global Textile Academy (https://www.globaltextileacademy.com/)
Wood: APA – The Engineered Wood Association (https://www.apawood.org)
Program: Process-Specific Trade Groups Training Programs
If the industry trade groups teach the “vertical” information about a specific industry, then the process specific Trade Groups emphasize the “horizontal” aspects of essential business processes and best practices for each, such as:
Supply Chain: ASCM (https://www.ascm.org). Note, the ASCM provides training for each link in the Supply Chain, from Planning to Execution to Warehousing to Transportation Management.
Manufacturing Execution: MESA (https://mesa.org)
Industry 4.0: MIT (https://professionalprograms.mit.edu/professional-certificate-program-in-industry/)
Conclusion: Hopefully, by now, the reader understands that workforce readiness is not an issue for reshoring manufacturing. Technology Providers, Professional Societies, Public-Private Partnerships, Universities and Trade Schools, and even equipment manufacturers have deep training for any manufacturing need available immediately on-line or delivered in-person on short notice. We are drowning in training options. Let’s ignore the pundits, and focus on standing up the factories where the training can be rapidly deployed, and products produced, in the USA.
Thank you for Reading! Come back tomorrow for Day 17: Reshoring Strategies: How to effectively plan and implement reshoring. This is the beginning of the actual application of reshoring strategies. It’s going to be a great read!
Thanks for reading,
The HermitCrab Team
Footnotes:
(2) https://www.china-mike.com/facts-about-china/manufacturing-chinese-workforce/#google_vignette
(3) https://www.mitchellcc.edu/ncmi/
(4) https://ncmep.org/workforce-development/#student-top
(5) https://www.manufacturingusa.com/key-initiatives/manufacturing-workforce-development
