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December 28, 2020 Economic Forecast

Manufacturers should focus on recovery, tech and grooming workforce in 2021

Photos | Contributed Stanley Black & Decker's downtown Hartford innovation hub.
By Colin Cooper, Chief Manufacturing Officer, State of CT

Connecticut manufacturing has overcome many challenges over the past 200-plus years, but the challenges of 2020 are unique in our lifetimes.

We started 2020 at or near a 10-year high in manufacturing employment and there were up to 10,000 open skilled-manufacturing jobs. The top concern for manufacturers in January was the availability of skilled workers.

Then the coronavirus pandemic hit and changed everything, forcing manufacturers to re-engineer their shop floors, workforces, supply chains and even product mix.

As of November, the state’s manufacturing workforce in 2020 shrank by 4% as a result of the pandemic, but recent monthly data show a slow, albeit inconsistent improvement.

While we will not fully recover economically until we have the public health situation fully under control, the age demographic of Connecticut’s manufacturing workforce will continue to drive high levels of retirement, and thus the continuing need for new entrants.

In addition, the shift in our manufacturing workforce — as older, more experienced workers retire and early career, less-skilled candidates enter the workforce — coupled with the rapid advent of new technology, underscores the need to focus on incumbent-worker training.

As we look toward 2021 and beyond, we are mindful that the pandemic has significantly stressed the state’s finances, which will likely dominate the 2021 legislative agenda. However, our focus for the manufacturing community will include certain legislative and policy objectives focused on regulatory reform, access to capital and funding the Manufacturing Innovation Fund.

We will also be working on the implementation of a number of initiatives around digital transformation of our manufacturing base, as well as support for a number of emerging new industries.

The Governor’s Workforce Council recently released its workforce strategic plan, which includes several new initiatives like launching regional sector partnerships to weave together the efforts of businesses, educators, policymakers, social-service agencies and community groups to identify and address the needs of businesses and individuals in those regions.

The plan also calls for a credential and registry system; development of a comprehensive and flexible career pathway system; initiatives in child care and transportation to ensure access to opportunities; and development of data and performance-management tools to drive accountability and measure ROI.

Specific to manufacturing, the plan calls for increasing the manufacturing slots in technical and comprehensive high schools; expanding pipeline and other short-term training programs; upskilling the workforce through incumbent-worker training and apprenticeship programs; growing community college and Goodwin University’s manufacturing programs; and retaining engineering graduates by providing internships with manufacturers.

A number of those initiatives will require some legislative support, but many are not reliant on government action or funding.

One item slated to be put before the legislature is an act to revise the Small Business Express program to move the state away from direct lending to small businesses while allowing the state to incentivize banks to ensure sustainable capital for higher-risk credit profiles frequently found in our smaller manufacturers.

Recent changes to the Connecticut Transfer Act approved by the legislature in 2020 will be further developed in 2021.

One area of significant focus next year will be the digital transformation of our manufacturing base and the associated adoption of Industry 4.0 technologies, such as additive manufacturing, model-based definition, internet of things and sensoring.

Initiatives are also underway or contemplated to support emerging new industries in Connecticut such as offshore power generation, electric vehicles and the associated infrastructure, and life sciences.

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