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Ryan Hundt hundtr1@michigan.org 517.614.1274 hundtr1@michigan.org

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2 MAT 2 Panel Discussion Panel Members 2 Mike Gidley CEO, Pontiac Coil Bernie Berrigan Director, Human Resources Brose Patrick Hillberg, PhD Solutions Architect Siemens

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The need for CHANGE 2

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4 Formation of MAT 2 Addressing Critical Issues Shortage in Skilled Labor 82% of manufacturing companies report a moderate to severe shortage in skilled labor Aging Workforce Average worker in manufacturing industry is 44.5 years old Cost of Postsecondary Education Average published charges for full-time undergraduates in 2013-14: $18,391.00 4

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5 Formation of MAT 2 Benchmarked on German Dual Education System Learning by doing Combines time spent in a classroom with real-world experiences at a company Ensures Return on Investment Students contribute work like a regular employee, require less training once they have a job, and companies dont spend as much money on recruitment, retention, and re-training of new employees Contributes to low youth unemployment rates (Germany: 8%; Spain: 56%; Italy: 38%) 5

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Industry Government Colleges K-12 Schools Michigan Advanced Technical Training What is MAT 2 ? 6

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MAT 2 Program Overview The System 7 MAT 2 Program Overview The MAT 2 System A dual education system Industry-Driven Partnership between industry and educators Major System Standards (Processes, tools, agreements) Standard Process for Development of programs (curriculum, program and learning outcomes) Can incorporate any technical profession Social responsibility combined with an industry-focused approac h 7

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MAT 2 Program Overview 8 The MAT 2 Programs Individual professions, based on MAT 2 System Content Development : Industry and Colleges 2-3 year program (depending on profession) Classes in cohort format The Programs 8

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Fall 2014 Programs Offered Mechatronics Technical Product Design Information Technology 9

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Timeline 13

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School and Work Schedule Year 1,2 and 3: Work periods: 8 Weeks School periods: 8 Weeks Full-time Work Year 4 &5

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School and Work Schedule Year 1 Work School Work School Work Year 2 Year 3 School Work

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13 Accepted Model: Mechatronics Non- Exempt Position, Employment on at-will basis Hourly rates increasing with work competences Annual Vacation & Benefits (based on federal employment law and established company policies for part-time employees) Reimbursement Tuition, certification fees, allowance (terminate for cause)

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Industry Participation 18

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MAT 2 Industry Partners Borg-WarnerEberspaecherKOSTAL Brose U.S.EMAGPontiac Coil Cadillac Products Automotive Parts Dasi Frimo FTE Jenoptik Secure 24 Van-Rob Kirchoff VW DuerrKern-Liebers ZF Detroit DieselKesslerProper Current Participating Companies 21

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16 How MAT 2 Benefits Companies 16

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MAT 2 Program Overview 17 MAT 2 Program Overview School Stipends Hourly Salary for work periods Instructor(s) Investment Salary + costs Training on in-house equipment from beginning Standardized competencies and practices Pipeline of well-trained talent as outcome Internationally accredited tests and standards Bridging today s skills gap Increasing involvement in real VA (value added) processes (projects and production) added value ( ) Benefit School and Lab 14 weeks work in Production 36 weeks work in Production 18 weeks School and Lab 28 weeks work in Production 27weeks School and Lab 21 weeks 1. Year2. Year3. Year Interview comment: human investment with great business case profitability Beneficial situation for enterprises (Business Case) Time available to assess and improve the fit between company and employee -> VA added MAT 2 Benefits 17

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Value of MAT 2 1.Known, reputable model of building a competent workforce 2.NOT a short term Certificate training strategy 3.Industry defined curriculum (DACUM) resulting in Associates Degree, and (pending) Department of Labor journeyman card, and German certificate 4. Statewide standardized curriculum minimizing educational variations between colleges 18

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Value of MAT 2 5. Competency based learning, NOT time based 6.School/Work pattern builds long term behavior and memory patterns 7.Behavioral and attitudinal components addressed 8.Grow commitment on both sides Long term loyalty and identity with company Less turnover Building work rotations add business value sooner than internship/co-op, etc. 19

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Value of MAT 2 9.Social good and business sense 10.Continued employment upon graduation assures return on investment. (3 yr. school + 2 yr. full-time employment) 9. Equal play policy negates competition between companies 10.Pro-rated pay back if student quits/fired 20

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MAT 2 Program Overview Academic Providers 21

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Participation Want to participate? 33

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Initial Meeting Select Profession (Program) Select Cohort, Community College and # of students Indicate interest to MAT 2 Administration Contact MEDC/Orbitak to schedule a meeting at your location. Finalize remaining details Agreement to participate and adhere to program and system standards Begin preparing for Company Fair, submit necessary info (instructor name, web info, schedule CEO video) Self Evaluation: Participation Readiness Check Min. Requirements ( Program/ Curriculum Standards, Resource Commitment) Attend Webinar (optional) Decision: Non-Developer OR Developer Submit Reservation Formal Committment Preparation and Development Looking Ahead: Steps for Interested Companies 23

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Contacts Ryan Hundt Michigan Economic Development Corporation 517.614.1274 hundtr1@michigan.org Valerie Jemerson Michigan Economic Development Corporation 517.373.1201 jemersonv@michigan.org Dr. Thomas Baumann Orbitak International 248.701.4625 Thomas.Baumann@ORBITAK-INTERNATIONAL.com 24

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Contacts Website: www.mitalent.org/MAT2 25

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Questions? 36

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27 MAT 2 Panel Discussion Panel Members 27 Mike Gidley CEO, Pontiac Coil Bernie Berrigan Director, Human Resources Brose Patrick Hillberg, PhD Solutions Architect Siemens