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Demographic “cliff” Average age of production workers is 44 in the Commercial Sector and 53 in
Defense
BLS estimates 20-30% of the engineering and production workforce will retire within five years
Increasing skill shortages/changing skill mix Inadequate number of scientists and engineers in the educational pipeline and/or
demonstrating an interest in aerospace
Inadequate number of apprentices in the pipeline and lack of incentive for individual establishment or firm to make these investments in the absence of an overall industry commitment to do so
Changing skill mix – increased importance of information and science-based technologies, communications and team-based interaction skills, and other shifts in skills needed for development/production of aerospace products/services
Reduced attractiveness of aerospace; increased competition from other industries
Reduced innovation in products, processes and services
Declining appeal of aerospace for current and next generation workforce. Less than 20% of current workforce would encourage their children to pursue careers in
aerospace
Increased attractiveness of other sectors for the “best and brightest”
Divisive & potentially immobilizing concerns over job security & instability Industry has lost over 500,000 jobs since 1990
Destabilizing shifts as a result of industry concentration, frequent shifts in government spending, rapidly changing technologies, suppliers seeking business out of aerospace, and changing corporate leadership vision and strategies
Fundamental changes in the nature of work and labor management relations Importance of stability for continuous improvement in new work systems and the
diffusion and sustainability of labor-management partnerships
Islands of innovation in work systems and labor-management relations exist, while the majority of relationships reflect a traditional arms length, command and control mode. Aerospace lags other industries in the use of knowledge-driven work systems and supporting labor-management partnerships
Aerospace lags other industries in use of knowledge-driven work systems and supporting labor-management relationships
Global competitive dynamics Projected loss of U.S. jobs and revenue due to increased global competition
Projected increase in foreign content; projected job growth in European Aerospace
Create a cross-departmental task force – spanning the Departments of Defense, Labor, Education and Commerce – to coordinate government workforce initiatives centered on attracting and retaining a 21st Century workforce with the skills and capabilities needed to support a world-class aerospace industry.
Charge this Task Force to fund or otherwise help ensure world-class apprenticeship and training programs for production and technical workers and the educational programs needed for ensuring a steady and adequate supply of engineers, scientists, and managers for the aerospace industry.
Create and fund an Aerospace Capability Network to develop public/private partnerships in which all key stakeholders—business, labor, government, and community groups—coordinate activities such as: Development of aerospace skill standards and
certification programs, Dissemination of information on occupations and job
availability, Grants for demonstration projects at local and regional
levels to foster the growth of aerospace-related industry and mitigate the impact of instability on employment and program performance and to facilitate worker mobility across firms when necessary.
Recommendation 3:Recommendation 3:Aerospace Industry Innovation Aerospace Industry Innovation
& Promotion& Promotion
Develop and implement a strategy for diffusing best practices in career development, employment relations, and life-long learning across the industry.
Mount a national campaign to attract public attention to opportunities within the aerospace industry targeted to primary schools, secondary schools, community colleges and universities coordinated through the Aerospace Capability Network and funded through public and private sources.
Recommendation 4: Skills and Recommendation 4: Skills and Employment Relations Employment Relations
Requirements Statement Requirements Statement
Defense Department procurement contracts in excess of a designated amount (such as, for example, $50 million) should include “Skills and Employment Relations Requirements Statement” which would include:
The primary skills and capabilities anticipated as essential for execution of the contract
An assessment of investment required to develop/maintain these skills and capabilities over the project or product life-cycle
An assessment of the quality of the work systems and labor-management relationships in place and plans for continuous improvements in these domains over the life of the project/contract
Workforce impact statements and plans associated with major shifts in government funding
An assessment of skills and capabilities associated with work that will be placed outside of the U.S. (with specific number of jobs involved and verification of adherence to international labor standards).
All of the above recommendations require substantial contributions from public and private sectors – not just contributions of funds, but of leadership time and attention
We call for a deep commitment to fundamental cultural change in this industry – valuing human capital as the key to future success.
Recommendation 2: Aerospace Capability NetworkWhy worry about instability?Highlights from case studies on InstabilityInstability and program performanceInstability and the loss of critical skillsMitigation of Instability – most common and least common practices
Recommendation 3: Aerospace Industry PromotionDeclining experience levelsLooking ahead to the next generation
Recommendation 4: Human Capital Impact StatementsFundamental changes in the nature of work Sales and employmentImports and employment
Background on MIT’s Labor Aerospace Research Agenda (LARA)Overview on LARASample LARA Publications
U.S. engines and parts imports as a share of total aircraft sales, 1981-2000U.S. engines and parts imports as a share of total aircraft sales, 1981-2000
Overview on the Labor Overview on the Labor Aerospace Research Agenda Aerospace Research Agenda
(LARA)(LARA)
Sponsor: USAF ManTech
Lead Partners: IAM and other Labor Organizations in Aerospace
Principal investigators and Research Team:
Tom Kochan (Co-PI), Joel Cutcher-Gershenfeld (Co-PI), Betty Barrett, Rob Scott, Takashi Inaba, Eric Partlan, Shannon O’Callighan, Kevin Long, and other team members
Links to MIT’s Lean Aerospace Initiative (LAI):
Organizations and People, Knowledge Deployment, Other Research/Product Teams, and Curriculum Development
Funding: ~$300K/yr
Focus: Impact of instability on employment
and workplace innovation in the aerospace industry
Investments in social capital and institutional infrastructure driving future success in aerospace