Solving the Manufacturing Talent Crisis with …...2020/02/18 · 19 | 18/02/2020 | MAPI Webinar |...

1 | 18/02/2020 | MAPI Webinar | Santiago Arámbula, thyssenkrupp North America, & Greg Vigil, Microsoft – Solving the Manufacturing Talent Crisis with Industry 4.0 Technologies

Solving the Manufacturing Talent Crisis

with Industry 4.0 Technologies

Santiago Arámbula, thyssenkrupp North America | Greg Vigil, MicrosoftMAPI Webinar | 18 February 2020


engineering. tomorrow. together.

42 businesses with 26 centered in manufacturing

~ $8.5 billion and 24,000+ employees


The ability to attract and retain qualified workers remains the #1 challenge for manufacturers in the US

Source: 1. National Association of Manufacturers (NAM) Manufacturer Outlook Survey, Fourth Quarter 2019 | 2. U.S. Bureau of Labor Statistics, Job Openings: Manufacturing | 3. 2018 Deloitte and Manufacturing Institute skills gap study.

120

186

226

267 264

297317

341

395

466484

2012 2014 20182009 20162010 2011 2013 2015 2017 2019

93 days

70 days

U.S. Manufacturers: Primary Current Business Challenges1 Job Openings: Manufacturing [monthly average, in thousands]2

Average days to hire a skilled worker3

64%

55%

52%

• Concerned about the inability to attract and retain skilled workers

• Worried about ongoing global trade uncertainties

• Expecting a weaker domestic economic environment


4.6 M

2.5 M

0.5 M

Existing openings

(2019 EoY)

Est. Retiring labor

(2020 - 2028)

Est. Open positions

(2020 - 2028)

1.7 M

Est. Future labor

(2020 - 2028)

2.2 M

Positions filled(2020 - 2028)

2.4 M

Labor Gap(2028)

The labor gap is estimated to leave 2.4M open manufacturing positions by 2028

Source: 1. U.S. Bureau of Labor Statistics, Job Openings: Manufacturing | 2. OEM (Oxford Economics Model) | 3. Deloitte Consulting and Manufacturing Institute skills research initiative, 2018 | 4. thyssenkrupp NA estimation

• Average days to fill open manufacturing positions grew more than 80% in the 2015 – 2018 period

• An estimated 4.6M manufacturing jobs will need to be filled by 2028

• 53% of open positions are projected to remain vacant by the end of 2028

Estimated U.S. Manufacturing job development 2019-2028 [jobs in millions]1,2,3,4

Est. FilledExisting needs Est. Additional needs Est. GapEst. Total needs


The labor gap impact could add up to a “lost year” of manufacturing GDP in the next decade

Source: 1. U.S. Bureau of Labor Statistics, Job Openings: Manufacturing | 2. OEM (Oxford Economics Model) | 3. Deloitte Consulting and Manufacturing Institute skills research initiative, 2018 | 4. thyssenkrupp NA estimation

• Labor gap impact in manufacturing GDP estimated at $300M by 2025

• Estimated annual impact >15% of manufacturing GDP by the end of the decade

• Estimated $2.5T of accumulated GDP impact until 2028 leads to a “lost year”

Estimated U.S. Manufacturing GDP 2019-2028 [GDP in US$ billions]1,2,3,4

168137

20202018

85

2021

2,175

2019

112

20282022

399

2023

350

2024

45448

2026 2027

2,023 2,097 2,139 2,232 2,294 2,366 2,447 2,517 2,588 2,668

207 252 303

2025

US manufacturing GDP Est. GDP impact from labor gap

2,515

Σ 2018 - 28


Smart factory initiatives are expected to bolster US productivity in the next decade

Source: 1. U.S. Bureau of Labor Statistics, Labor productivity | 2. Deloitte and Manufacturers Alliance for Productivity and Innovation (MAPI) Smart Factory Survey, 2019

• In the last 5 years smart factories drove 10%+ growth across production output, capacity utilization, and labor productivity

• 86% of US manufacturers believe smart factory initiatives will drive manufacturing competitiveness in the next 5 years

• At thyssenkrupp, we have already started to see the positive effects of smart manufacturing initiatives in productivity

U.S. Manufacturing labor productivity, 1987 – 2030F [2012 index = 100]1,2

Labor productivity index Labor productivity Y-o-Y growth rate

0.8%

2.4%


There are three main issues fueling the labor gap anticipated in Manufacturing

Retiring workforce2Existing labor needs1 Future labor & skills gap3


Computing power

New technologies New business models

Tier 2 Tier 1 OEM

Low cost mobile data transfer

Low cost sensors

Additive manufacturing

Car sharing vs. owning vehicles

Energy supply vs. owning turbines

“Availability” and usage vs. product

Exponential development

Elimination of the weakest element in a value chain

From value chain to eco system

Omnipresent Connectivity+

For us, innovation is at the center of our digital transformationAn innovative mindset is one of our greatest assets in addressing the manufacturing skills crisis


Digital operations

Digital products

Digital business models

Advanced manufacturing

Industry 4.0

Secure customer data exchange

Web sales & mobile app solutions

“New reality” visualization

Additive manufacturing

Robotics/Human-machine-interaction

Machine learning/Big data analytics

Virtual reality/simulation

Augmented/mixed reality

Mechatronic products & autonomous driving

Digitally enhanced products

Customer value add

Data-enriched/software-embedded solutions

Front- & Back-end solutions

PLM/end-to-end engineering solutions

Industrial Internet of Things& cloud platforms

We have developed the ability to apply a broad range of digital tools to increase customer value add – and empower our employees


What we offerQuality metals & plastics dispatched same day.

eCommerce

Digital TWIN Virtual Reality Autonomous Driving

Predictive Analytics Predictive Analytics

Mechatronic systems

Augmented Reality Artificial Intelligence Spatial Analytics

Agile

Human-robot collaboration

Mechatronic systems

Predictive Analytics

Industrial Data Space

Augmented Reality

… as illustrated by a broad range of tangible use cases



eCommerce

Industry 4.0 Virtual Reality Autonomous Driving


Mechatronic systems Mechatronic systems Industrial Data Space

Augmented Reality

Augmented Reality

Industry 4.0

Digital TWIN

Augmented Reality

Augmented Reality


Human-robot collaborationAugmented Reality

Augmented Reality

Have you integrated new technology to maximize the value both new and experienced employees add to the organization?


Virtual Pick & Pack

Virtual Pick & Pack: Warehouse distribution solution


Accelerating new employee training and

operational efficiency while limiting

repetitive tasks

Microsoft HoloLens

• Allows us to train new employees in hours, instead of days

• Increases the efficiency and safety of all of our floor employees, with integrated optimized routing, pick scan confirmation notifications, and safety alerts

• Offers employees across the organization one source, one truth, real time facility data - via the integration of scan data with our ERP system

thyssenkrupp Bilstein uses mixed reality technology on the warehouse floor to improve efficiency, quality and safety for both our newest and most experienced pickers and packers

orth America, & Greg Vigil, Microsoft – Solving the Manufacturing Talent Crisis with Industry 4.0 Technologies


Explore the full breadth of what the latest generation of Industry 4.0 technologies offer you.Are you maximizing their capabilities to transform your workforce and your business?

Virtual Pick & Pack: Warehouse distribution solution

Virtual Pick & Pack



eCommerce

Augmented Reality Digital TWIN Virtual Reality Autonomous Driving


Mechatronic systems Industrial Data Space

Augmented Reality Artificial Intelligence Spatial Analytics

Agile


Mechatronic systems


Augmented Reality

Agile

Spatial Analytics

Have you maximized new technology to put your employees steps ahead for better planning, process improvement and more time to focus on new business?


Smart factory: Mixed reality and spatial analytics on the shop floor

Smart factory

17 | 18/02/2020 | MAPI Webinar | Santiago Arámbula, thyssenkrupp North America, & Greg Vigil, Microsoft – Solving the Manufacturing Talent Crisis with Industry 4.0 Technologies17

Maximizing efficiency and safety with a complex flow

of materials to keep production running smoothly

3d holograms in Microsoft Layout

• Allow us to make design changes in our actual factory space, as we take on new projects, before equipment or materials arrive onsite

• Letting us optimize workflows

• Ensuring safety is an integral component in how we maximize efficiency

thyssenkrupp Aerospace uses mixed reality and spatial analytics on the shop floor to give our employees the tools and information they need to make better in-context decisions quickly

| 18/02/2020 | MAPI Webinar | Santiago Arámbula, thyssenkrupp North America, & Greg Vigil, Microsoft – Solving the Manufacturing Talent Crisis with Industry 4.0 Technologies




• Allows us to track quality improvements, enabling us to balance quality with the bottom line

• Gives us the ability to translate tribal knowledge from our most experienced technicians into actionable intelligence we can scale across our facility

• Helps us with the quality assurance process


Spatial analytics on the shop floor


Integration of Teams and Cortana

19

• Allows our employees to make quick in-context decisions that speed up production

• Making fulfilling rush orders a more efficient proposition

• Keeping our employees up-to-speed regarding any factors limiting production

• Allowing our frontline employees to manage many day-to-day operational challenges, opening up more time for management to focus on business growth, strategic evaluation of new technology, …





Smart factory: Mixed reality and spatial analytics on the shop floor

Smart factory

Empower employees by leveraging the power of data collected from heterogeneous sources, offering them real-time, actionable insights.



eCommerce Industry 4.0

Industry 4.0 Digital TWIN Virtual Reality Autonomous Driving

Predictive Analytics Predictive Analytics Predictive Analytics

Mechatronic systems Mechatronic systems Agile Industrial Data Space

Artificial Intelligence


Augmented Reality

Have you leveraged Industry 4.0 technologies in your business to attract, engage and reduce the skills gap facing the next generation of manufacturing talent?


Artificial Intelligence


Collaborative Robots, 3d Printers & AIVs

Human Robot/I 4.0 Collaboration


Cobots, 3-D printers and autonomous intelligent vehicles

• Co-operative education and work+ program participants, as well as apprentices, are actively engaged with the implementation, programming and performance evaluation of Industry 4.0 technologies in our facilities

• Exposing this new talent to the leading edge of technology

• Letting them put into practice what they are learning in the classroom and addressing the skills gap head on

thyssenkrupp Bilstein of America leverages Industry 4.0 technologies to attract new employees and help close the manufacturing skills gap

Maximizing the impact the latest technologies have

on the organization by involving the next generation

of talent in their implementation



Collaborative Robots, 3d Printers & AIVs

Engage the next generation of talent with real-world experience in the operational planning, testing and implementation of Industry 4.0 technologies in your business.

Human Robot/I 4.0 Collaboration

25 | 18/02/2020 | MAPI Webinar | Santiago Arámbula, thyssenkrupp North America, & Greg Vigil, Microsoft – Solving the Manufacturing Talent Crisis with Industry 4.0 Technologies25

• Exposure to multiple areas within the business including the shop floor, operational planning, IT and back office operations

• Opportunity to work hands-on with the latest technologies brought into our plants, including Industry 4.0 solutions

• Nationally recognized certifications, partial to full tuition reimbursement, and/or program completion tool-kits applicable for future technical shop floor roles

• Instruction in soft skills

Our Apprenticeship, co-operative education, and work+ partnership programs offer high school, community college and college students tangible benefits, including:

Closing the skills gap: apprenticeships, community

college and college partnership programs



Organizational partners

• Leadership support

• Site mentors

Education partners

• School counselors/administrators

• Parents

Community partners

• Area high schools and community and 4-year colleges

• Local or state economic development groups

• State departments of labor

Support network required for

successful program implementation

& Greg Vigil, Microsoft – Solving the Manufacturing Talent Crisis with Industry 4.0 Technologies


Involving the next generation of manufacturing talent in the planning and implementation of new technologies is both a powerful way to narrow the skills gap and an attractive proposition to pique interest in the field.

To truly maximize what you can reap from Industry 4.0 technologies, look at new ways of engagement with your technology and community partners.

Empower your employees – include front line users in implementing solutions you pursue from day one.

It’s a journey – it’s not a one and done.

What we’ve learned

Industry 4.0 technologies offer new opportunities to engage, train and upskill employees.


Thank you!

Greg VigilMicrosoft ─ [email protected]

Santiago Arámbulathyssenkrupp North America ─ [email protected]

Solving the Manufacturing Talent Crisis with …...2020/02/18 · 19 | 18/02/2020 | MAPI Webinar |...

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