6 minute read
Stronger, eager to grow
BY JOHN A. LAHTINEN | Contributing Writer
ASSEMBLY LINE: Machine operator Yahalra Santiago, left, helps Hache Diaz pack soap at Bradford Soap Works Inc. in West Warwick. Bradford CEO and President Stuart Benton says the company has had difficulty filling available positions due to a lack of skilled labor in the state.
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PBN PHOTO/MICHAEL SALERNO
THE FLEXIBILITY REQUIRED of Rhode Island manufacturers to stay open throughout the COVID-19 pandemic has made many of them stronger, says Kathie Mahoney, center director at Polaris MEP, the state’s manufacturing extension partnership.
Whether it was pivoting to produce much-needed personal protective equipment or offering flexibility to their employees to work from home or take advantage of more-flexible shifts, manufacturers have adapted to meet the needs of both their customers and their employees.
Mahoney says several companies have also pointed to relationships they have with their vendors and customers that have never been stronger.
Business at Cranston-based Amerisewn, a division of Desmark Industries Inc., has been steady ‘The availability have much of a pipeline to offer us. We are trying to work with [the Community College of Rhode Island] throughout the pandemic. In fact, the cut-and-sew contract manufacturer has even managed to add a few of labor is a and others to source people.” Beyond finding the employees, Benton says some new customers. “This experience has forced us to really look hard challenge in questionable government decisions have hurt Rhode Island manufacturers. at our capacity allocation, supply chain timelines, the state.’ “The new governor [Daniel J. McKee] pushed a taxcosting and workforce expenses,” said Layne Mayer, STUART BENTON, ation in R.I. of [Paycheck Protection Program] money director of growth. “We have improved and tightened Bradford Soap Works Inc. companies got, which at a minimum is a double taxall stages of projects. Operationally, we have really focused more on how we cost a job and have been firm CEO and president ation, as most manufacturers used this money to pay wages,” Benton said. “This PPP tax affects less than 5% with the pricing that keeps us in a strong position. of the companies and raises significant tax dollars. … It We have hired and trained more people into project management roles so is like a money grab on the backs of a small number of businesses.” that we have a much tighter understanding of efficiencies and costing and Many have looked to the state’s job training and apprenticeship prothe strengths of every member of our team.” grams as paths toward bolstering the workforce.
The company, he said, also “understands our customers better. … It is The R.I. Department of Labor & Training says there had been 2,184 more of a two-way relationship. We have learned how important and criti- total participants enrolled in manufacturing industry training programs cal we are to their business, and we can now better address their challenges.” through the DLT initiatives Real Jobs RI and Back to Work RI since July FINDING WORKERS However, as business ramps up again, one concern many companies face is finding enough qualified candidates to fill open positions. A recent study by Deloitte and The Manufacturing Institute suggested the skills gap in the U.S. could result in more than 2 million unfilled jobs by 2030, with the cost of those missing jobs potentially reaching $1 trillion in 2030 alone. Edward M. Mazze, distinguished university professor of business administration at the University of Rhode Island, expects significant growth over the next few years in manufacturing parts and products in several areas. Possible growth areas, Mazze said, include medical and pharmaceutical, chemical, computer and electronic products, food and beverage, textile, electric equipment and appliances, general purpose machinery and fabricated metal products. But Mazze also foresees trouble 1, 2020. Of these, 1,372 were incumbent workers seeking additional skills and 774 were new people entering into training programs. “Rhode Island made Real Jobs a permanent part of our state budget,” said David M. Chenevert, executive director of the Rhode Island Manufacturers Association. “We need more career tech schools such as the William M. Davies Jr. Career & Technical High School. Davies’ advanced manufacturing school cannot produce enough machinists to fill the jobs of an aging workforce. CCRI and rhw New England Institute of Technology offer classes but that is barely meeting the minimum needs. Career technical education is a critical component for Rhode Island’s economy. If we cannot fill jobs, why would anyone move their company” to Rhode Island. Chenevert says financial support for Real Jobs is critical as a step toward solving the training shortage. for companies filling open spots.
“The sign most often seen in front of a Rhode Island business today is ‘Help Wanted,’ ” Mazze said. “One of the results of the pandemic has been the lack of qualified employees for manufacturing jobs. Many people are rethinking about how, where and why they want to work. Some are dropping out of the workforce; many are relying on federal and state government programs to provide financial assistance. Some will stay home to take care of children. It is expected that this shortage of skilled labor will continue to be a major issue for [hundreds of] manufacturing companies in Rhode Island.”
Mazze says manufacturers have had to not only revise their business models to satisfy customers and stay competitive, but also reexamine compensation and benefit programs to attract and retain workers.
Rhode Island, through public and private organizations, offers financial incentives and training programs to encourage people to return to work. But, Mazze says these initiatives continue to face two major challenges – the continuing fear of the pandemic and a lack of trust in the government’s ability to implement the programs fairly.
Stuart Benton, CEO and president of West Warwick-based specialty personal care products manufacturer Bradford Soap Works Inc., faces many of the same staffing issues. He had about 25 spots available in Rhode Island at the end of August.
“The availability of labor is a challenge in the state,” Benton said. “Even with Honeywell closing some operations, it is still challenging to find people to work. I was speaking with a business owner who employs over 2,000 people in the state and they were short almost 200 people. We have reemphasized our employee referral program, participated in work fairs and are looking at nontraditional sources of workers, but it is a struggle to fill all of our positions. The historical sources of people in the state don’t Continues on page 10
2020 Q1 877 Q2 578 Q3 804 Q4 593
JOBS TO FILL
Manufacturing-related job postings on the state’s online job board, EmployRI, remained relatively consistent from the start of the pandemic in March 2020, before jumping to more than 1,000 in the second quarter of 2021. 2019 2021
Q1 468 Q1 727
Q2 651 Q2 1,034
Q3 521
Q4 509 SOURCE: R.I. DEPARTMENT OF LABOR & TRAINING
“We talk about a five-year plan for our state’s economy,” Chenevert said. “RIMA is working to develop a transportation solution for many unemployed people. … We are working with the [R.I. Public Transit Authority] on a program called ‘Have Jobs Will Travel.’ We are focusing on Woonsocket, Central Falls, Providence and Pawtucket to get unemployed people the ability to get to industrial parks that are hiring and offering good-paying manufacturing jobs.”
SUPPLY CHAIN
Supply chain issues have jumped front and center for many companies during the pandemic. Finding materials, as well as the increased costs of those materials, has affected their bottom lines.
“The federal government is now recognizing that certain aspects of
