WisBusiness: Manufacturers see labor shortage for skilled positions

By Kay Nolan

For WisBusiness

MILWAUKEE — Three Wisconsin manufacturers that have grown despite the recession say finding and keeping employees will be the biggest challenge as the economy recovers.

“There aren’t a whole lot of 25-year-olds who want to work in manufacturing. A whole bunch of kids who are high school graduates, who might have been the kind of guys who would have become good welders, good process engineers, good mechanical engineers, have gone on to other careers or maybe don’t have a job right now,” said Tom Duffey, president of Germantown-based Plastic Components Inc.

“In the factory, we have a lot of skilled assemblers, a lot of machinists and a lot of welders,” said Brian Baker, vice president and chief financial officer of Oconomowoc-based Sentry Equipment Corp. “About two, three years ago, just before the recession, we added 40 or 50 people to the company, and it was very, very, very difficult to recruit 40 skilled people in that environment. When the recession hit, it kind of took all the pressure off, but long term, there’s still going to be a mismatch. Demographically, there’s going to be more demand in Wisconsin for skilled machinists, welders and assemblers than there’s going to be people to fill them. So we’re really committed to retaining our employees because in the future, the pressure will be back on as the economy picks up.”

Chad Abel, president of Northwoods Paper Converting Inc. in Beaver Dam, says that even though recent entry-level job openings have attracted hundreds of applicants, “It’s still tough to find the right people, people who care and want to be there every day.”

“We’re always looking to sell ourselves,” said Abel.

The three participated Tuesday in a panel discussion during the Manufacturing Matters conference, sponsored by the Wisconsin Manufacturing Extension Partnership, at the Midwest Airlines Center in Milwaukee. The panel was moderated by Mary Isbister, president of Mequon-based GenMet. The panelist firms were 2009 Wisconsin Manufacturer of the Year award winners.

Duffey says young workers are avoiding manufacturing because “we’ve scared the heck out of them for the past 10 or 15 years.”

“I think we have created a dangerous situation here, because for the last 10 or 15 years, we’ve been talking about how miserable manufacturing is and how dangerous the future of manufacturing is all over and especially in the state of Wisconsin,” said Duffey.

Duffey has already noticed a drop-off in job applicants as the economy starts to recover.

“Nine months ago, we were looking to hire three process engineers at PCI and within the space of about six weeks, we were able to find three of the best process engineers we’ve ever gotten because they were out there in the marketplace,” he said. “We’re now looking for another process engineer and we’ve been looking for six weeks and haven’t found anybody in the state. We’re actually bringing someone over from Michigan who appears to be a good candidate for the job.”

To compete for employees, Abel says the rapidly growing Northwoods, which has expanded seven times in 10 years, has “really tried to focus on making the jobs easier and less strenuous and safer.” Abel also offers employees monthly rewards for good safety and attendance.

“We’re from Beaver Dam and in our area, the steel industry is big. We’ve got John Deere 10 miles away, so where would somebody want to come and work? John Deere or Northwoods Paper Converting?” he said.

Baker hopes his new, climate-controlled building in the Oconomowoc Pabst Farms area will appeal to workers.

“For the office people, it’s a soothing, comfortable environment … you walk out into the factory and it’s really clean, just a comfortable place to work,” he said. In addition, because Sentry is employee-owned, Baker said workers can participate in stock and gainsharing plans and enjoy a “participative management style.”

“We’ve also invested heavily in employee training and we believe in promoting from within,” he said.

Duffey says he’s learned from experience, however, that it’s just as important to place people in the right jobs.

“Make sure you have the right people on the bus, and be sure they’re not sitting in the wrong seats,” he said. “I’ve been guilty of that – I’ve taken people who were good at one role, promoted them to another role and they’ve not performed to the same level.”