Read the original publication for the complete analysis and findings.
Searchable report text
Text extracted from the original PDF. Layout, tables, and reading order may differ. Check the source report before quoting.
PDF page 1
OKLAHOMA MANUFACTURING: A SNAPSHOT OCTOBER 2019
PDF page 2
Snapshot of the Economic Impact of Manufacturing in Oklahoma Oklahoma’s Top 5 Export Categories in 2018 (Total Exports Value in Millions of U.S. Dollars) Manufacturing contributes to exports in Oklahoma more than any other industry. In 2018, 92.5% of Oklahoma export dollars came from manufacturers. The top five export categories in Oklahoma are all manufacturing goods exports. Data Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online. Source: U.S. Import and Export Merchandise trade statistics. $1,086M $1,066M $894M $655M $513M Machinery, Except Electrical Transportation Equipment Computer & Electronic Products Fabricated Metal Products Chemicals
PDF page 3
Manufacturing & The Workforce One of the major reasons that employment in Oklahoma’s manufacturing industry is decreasing is the existence of a skills gap. There are many manufacturing jobs that require skills that the existing workforce doesn’t have. This problem is not inherently unique to Oklahoma. In the United States, 53 out of 100 open positions remain vacant due to a skills shortage in the U.S. manufacturing industry. In comparison to other states, Oklahoma is behind in terms of educational attainment. Oklahoma ranks 43rd in the percentage of adults age 25 and older with a bachelor’s degree or higher. While a bachelor’s degree is not necessary for all manufacturing jobs, some education credential/training beyond a high school diploma is becoming a necessity for most manufacturing jobs. Percentage of Adults Age 25 and Older with a Bachelor’s Degree or Higher (2017) | Data Source: U.S. Census Bureau
PDF page 4
How do we close the current skills gap in the manufacturing industry? According to a 2018 study by Deloitte and The Manufacturing Institute, there are many ways that we can fill the skills gap in the future manufacturing workplace. A few solutions with real-life examples are listed below: Apprenticeship Programs The Apprenticeship Carolina program in South Carolina is a comprehensive partnership model to build a multi- industry talent pipeline. The program includes partnerships with businesses, education institutions, students, and their parents. It combines high school curriculum and technology training with the essential on-the-job trainings required by businesses. As of October 2019, the program has produced over 32,000 apprentices since 2007, with 1,026 registered programs and 220 youth apprenticeship programs. Public-Private Partnerships Fluor Corporation, a multinational engineering and construction firm, has partnered with high schools and the Texas Workforce Commission to provide pre-employment training in skilled workforce areas. The 12-week training courses include 40 hours of employability skills development and are based on NCCER (The National Center for Construction Education and Research) curriculum. After going through this program, the trained graduates are in a better position to be productive for their employers. In-House Training that Leverages Digital Technology A German industrial goods company uses advanced digital technology to enhance the skills and productivity of its employees. Through an AI headset, Microsoft HoloLens, the company provides on-the-job training to its 24,000 service engineers. The technology helps them with visual cues on assembling and disassembling the latest company products in a 3D space, and with viewing equipment schematics in the field while being connected with specialists via a Skype call. The technology improved service times by a factor of four. Several other industrial manufacturers also use similar AR technologies to upskill and provide live assistance to their workers.
PDF page 5
Manufacturing & Innovation According to the National Association of Manufacturers (NAM), manufacturers nationwide are exploring a wide variety of disruptive technologies, including additive manufacturing, the cloud, drones, advanced materials, and the Internet of Things (IoT). This technology-driven disruption in the manufacturing sector is having a positive impact on businesses and products. Some of the challenges that limit investment in disruptive technologies are skills and unnecessary regulation. Oklahoma manufacturers need to invest in the same disruptive technologies to keep up with the rest of the nation. of manufacturers are making investments in disruptive technologies to drive efficiencies in production. of manufacturers are investing in disruptive technologies to differentiate products/ service offerings. of manufacturers are investing in disruptive technologies to speed up and improve development. of manufacturers say disruptive technologies are increasing their long-term outlook. of manufacturers are using disruptive technologies to enable new business models/ new revenue streams. of manufacturers have used disruptive technologies to move into completely different markets/product lines. of manufacturers cite a skills mismatch. of manufacturers cite current or proposed government regulations. MORE THAN ALMOST 67% 61% 60% 1/2 2/3 1/3 40% 30%
PDF page 6
PO Box 53217, Oklahoma City, Oklahoma 73152-3217 405.235.3669 | www.okresearchfoundation.org For more research and information on policies that impact the growth and success of Oklahoma, visit www.okresearchfoundation.org. The State Chamber Research Foundation is dedicated to public policy research that promotes Oklahoma’s growth and success. As the state’s leading source for forward- thinking policy research and analysis, we are a driving force in developing public policies that strengthen Oklahoma’s future in a competitive, global economy. The State Chamber Research Foundation has provided research for Oklahoma policymakers, businesses and citizens since 1981. An initiative of the State Chamber of Oklahoma, the Research Foundation is committed to providing high- caliber research relevant to policy decisions impacting Oklahoma’s economy, health, workforce, business climate and quality of life.