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Time’s Up for Changing Kentucky. Adult Education Conference, Lexington Feb. 5, 2008. A Personal Passion for Education and Manufacturing…. Family Background Cultural Foundation Corporate Heritage Love of People. Manufacturing is Kentucky’s Economic Engine….
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Time’s Up for Changing Kentucky Adult Education Conference, Lexington Feb. 5, 2008
A Personal Passion for Education and Manufacturing… • Family Background • Cultural Foundation • Corporate Heritage • Love of People
Manufacturing is Kentucky’s Economic Engine… *U.S. Bureau of Economic Analysis
Kentucky Manufacturing • $100 Billion in Sales • Ranked 4th in U.S. • High wages across Kentucky ($45K Avg. Annual Salary) • Most jobs have excellent benefits
If Manufacturing Didn’t Exist 260,000 would be jobless or making a lot less money
There are problems… • Kentucky manufacturing is under attack from low-wage nations like China, India and Mexico… • Our workforce needs high-tech knowledge… • We are in danger of losing Kentucky manufacturers who can’t lower costs fast enough and can’t find qualified workers…
Member Survey - 2007 • Kentucky Manufacturers Speak Out About Their Greatest Concerns…
Why Can’t We Find Qualified Workers? • General Misunderstanding about Economic Impact • Old, Outdated Career Image • Declining Quality of Job Applicants
Challenge Number One: • Many of our media, leaders and citizens don’t understand or recognize manufacturing’s IMPACT ON OUR ECONOMY or HOW IMPORTANT IT IS to our future… • Myth: “Dying Industry” • Reality: Output Increased in 2006
Most Legislators Don’t Understand… • 54% of legislators believe industries OTHER THAN manufacturing contribute more to the Kentucky economy* • 58% of citizens believe industries OTHER THAN manufacturing hold the key to our future * *Independent Poll
KAM’s Strategy to Change Economic Impact Misperceptions • Broadcast Advertising - $2 million in radio and television advertising value across Kentucky in 2007 • Print Advertising – Lane Report, Business First, Business Lexington • Public Relations – 12 million message impressions a year
Challenge Number Two: • Our leaders and citizens have an OUTDATED IMAGE of manufacturing and the CAREER OPPORTUNITIES it presents
Old Image (1960s) Dirty, Hot and Sweaty Low-Skill Low Pay Monotonous Low-Tech Un-Cool New Reality (2007) Clean and Air-Conditioned For ‘Smart’ People Teamwork, Variety High-Tech Very “Cool” Image of Manufacturing…
New Poll of Kentucky Teachers…. • In Cooperation with the Kentucky Council on Economic Education • "In general, is this career likely or not likely to provide a good opportunity for your students?"
KAM’s Strategy to Change Career Image Misperceptions • Marketing Campaign • Phase One: Statewide Radio Commercials in 2008 • Phase Two: Under Development • Partnerships • Big Brothers Big Sisters
Challenge Number Three: • The QUALITY OF WORKER applying for advanced manufacturing job openings today is DECLINING
Applicant Quality Issues • No high school diploma • Can’t work in teams • Can’t solve problems • Can’t do math or read well • Poor attendance • Poor ethics (character, honesty) • Drug, alcohol issues • Poor work ethic
Future…The Looming Crisis • Beginning in five years, Baby Boomers will begin to retire, leaving Kentucky advanced manufacturing facilities by the thousands
That’s Why KAM must have an aggressive VISION… By 2012, Kentucky will be one of the world’s most desired locations for manufacturers, both new and existing.
KAM’s Eight Branded Initiatives 1. ProsperousKentuckysm Keeping manufacturers in Kentucky and attracting new manufacturers here to raise the standard of living for all Kentuckians. 2. ProductiveKentuckysm Training Kentucky manufacturing workers to out-produce low-wage countries like China, India and Mexico. 3. FreedomKentuckysm Freeing our members from high taxes, regulations, and other constraints that prevent them from winning in the global marketplace. 4. SmartKentuckysm Preparing Kentucky students and adults for well-paying jobs in manufacturing. 5. HealthyKentuckysm Reducing Kentucky’s health care costs by encouraging our workers to be safe and healthy. 6. HonestKentuckysm Encouraging honesty and integrity in the manufacturing workplace. 7. CleanKentuckysm Helping our members balance sustainable growth with the environment and their communities. 8. MarketKentuckysm Helping our members market their products in a competitive global economy.
KAM’s Strategy to Change Worker Quality Problem (SmartKentuckysm) • Students (Secondary, Post-Secondary) • Legislation • To improve career pathways; math, science and reading skills • Partnerships • Kentucky School Board Association • Big Brothers Big Sisters • Kentucky Council on Economic Education • KCTCS • UK Center for Manufacturing • Project Lead the Way • Marketing Campaign
Solutions? • New Paradigm Shift in Education, both Secondary and Post-Secondary • Pass Some Legislation • Get Business Involved with Local Schools • A 4-Year Degree is Great, But Not for Everyone • Increase high school, technical and college graduation rates • Technical Education = Good, Quality Jobs, RESPECT • Find a Way to More Easily Qualify Retiring Boomers to Teach Technical Education • Kentucky Culture: Break Some of the Old Paradigms