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Private Sector: Manufacturing in the cross hairs
This is no time for work-force development cuts
Tuesday, June 26, 2007

Southwestern Pennsylvanians know all too well the manufacturing sector's struggle to stay competitive in today's global market.

Far too many manufacturing plants have closed and moved overseas. Nationally, we've lost 3 million manufacturing jobs since 2000.

As chairman and chief executive officer of Hamill Manufacturing Co. in Penn Township, Westmoreland County -- and as the current chairman of the National Tooling and Machine Association -- I can attest that manufacturing is still very much alive and well. It is thriving in the small- to medium-size companies about which few people know anything. We need the help of our state Legislature to help us to continue to thrive.

The Legislature is in the midst of a budget battle in Harrisburg, and Pennsylvania's successful work-force development programs are caught in the cross hairs.

Like many other manufacturing firms, Hamill requires highly trained, high-skill workers -- a rare commodity in today's economy. The demographic reality of the baby boom generation makes developing a skilled manufacturing work force from the younger generations critically important. That's why I chose as the NTMA theme this year: "Filling the Pipeline -- Building a skilled, dedicated and loyal work force for the future."

It's ironic that, while industry is doing all it can to improve worker training and education, the Legislature is considering cutting work-force development funding.

These programs are highly competitive grant programs -- and they are essential to helping companies build and maintain the skilled work force they need to compete globally.

Pennsylvania has been at the forefront of some of the nation's most progressive work- force development programs, including Industry Partnerships and other training initiatives.

At Hamill, we have used Pennsylvania's work-force training programs to help implement lean manufacturing techniques to help make our workers more productive and efficient. We also are using a state grant, which we have matched dollar-for-dollar, to train and certify all of our employees in a new quality standard for aerospace manufacturing. We also have used state work-force dollars for safety training, basic computer training and advanced manufacturing training.

Perhaps state legislators haven't heard enough of these kinds of success stories, because employers and workers have focused on getting the job done, rather than seeking recognition. I believe the commonwealth receives a positive return on its investment from work-force development spending -- much higher than its investment on stadia and arenas!

It's time to get the message out: Pennsylvania's work-force development system is working, focusing on industry-led, demand-driven strategies.

In 2004, Gov. Ed Rendell initiated an approach to Pennsylvania's work-force development system -- focusing on the future, creating a skilled work force and insisting that all work-force training programs provide Pennsylvanians with the skills that employers need to be successful in today's global economy.

This strategy has been successful. Consider this:

More than 5,700 businesses are involved in 90 Industry Partnerships. Through those partnerships, more than 24,000 workers have been trained.

Workers who received training through these programs have seen an average wage increase of nearly 13 percent.

A recent survey of businesses involved in Industry Partnerships found that 75 percent of those businesses reported increased productivity as a direct result of the high-skills training provided through the Industry Partnership Training Program.

Or look no further than right here in southwestern Pennsylvania . Fifteen percent of the jobs here are in manufacturing. These are competitive, high-paying jobs, and we need more workers to fill them.

Without the state's work-force programs, many smaller firms are going to have difficulty in becoming or staying competitive. Eventually, they'll lose the battle in this global marketplace, where every advantage counts. That's what's at stake.

We're not looking for a handout. We are businesses, but we also are taxpayers. The taxes on manufacturing companies make up a significant portion of the commonwealth's revenues. All we ask in return is that our tax dollars be used productively and efficiently.

There is no better investment of our tax dollars than in work-force development. A skilled work force is the key to Pennsylvania's success in our current and future economy.

First published on June 25, 2007 at 7:01 pm
Jeff Kelly is chairman and chief executive officer of Hamill Manufacturing Co. and 2007 chairman of the National Tooling and Machine Association.
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