Workforce and technology are the main needs for a COVID-19 recovery, according to a recent survey of Rhode Island manufacturers by Polaris MEP. Polaris MEP Director Christian Cowan spoke with Providence Business News recently about the survey results and the challenges today’s manufacturers are facing.
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COWAN: Polaris MEP has been working hand in hand with the manufacturing community since the beginning of the pandemic. We have supported companies that pivoted to making PPE [personal protective equipment], advised companies on keeping their employees safe and connected them with important programs to continue operations. This work informed our team and state officials of urgent activities.
Polaris MEP and the Rhode Island Manufacturers Association then partnered to perform a more comprehensive survey to get the broadest and deepest understanding of [the] state of the industry. We survey CEOs, presidents and owners, electronically, to gain insights and communicate to policymakers.
PBN: If state funding were to become available, which areas of investment were most important right now to Rhode Island manufacturers who participated in the survey?
COWAN: Rhode Island was one of a few states that did not close its manufacturing companies. This is a testament to the progressive and innovative approach from the employers. Even so, the global economic slump has affected everyone. All manufacturers are now looking for new ways to get their business volumes back to pre-COVID levels. We believe state and federal support are key to shortening the time for that growth. The survey confirmed that need.
- Twenty-seven percent said they would use market research to identify or crack new markets.
- Sixty percent of manufacturing leaders said they would use some support for workforce training.
- Fifty percent would apply it to purchases of advanced equipment/machinery.
- Seventeen percent would apply it to purchases of technology or software, such as CAD/CAM [computer-aided design and computer-aided manufacturing].
What stands out to us is the fact that they would be investing in people and technology. It’s not a one-and-done solution, a quick fix, a return to business as usual. They’re looking to invest in ways that would help Rhode Island manufacturing be more competitive in the long term.
PBN: Survey results show that manufacturers are still in need of workforce numbers – skilled labor to fill jobs – to recover economically from COVID-19. This was also a need before. Is it possible they need workers now in a different way?
COWAN: Factors that drove previous needs in the workforce still exist today, but now supply-chain resiliency and the increased importance of reshoring are coming into play. The reshoring concept involves shifting manufacturing sources from overseas back into the U.S. For buyers, this creates shorter lead time for products and more control over the manufacturing specifications. For U.S manufacturers, it requires more efficiencies and technology.
Rhode Island manufacturers will need to use technology for increased volumes and efficiencies, which in turn needs a higher-skilled employee. This is good news, as higher skills require more training and a higher wage. This won’t happen overnight, but the requests and trends are a good thing.
PBN: Were there any parts of the survey results that surprised those at Polaris MEP or Rhode Island manufacturing leaders?
COWAN: Polaris MEP and RIMA have been intimately involved with the manufacturing community for years and this pandemic reinforced the importance of communicating its members’ needs. The results of the survey weren’t surprising to us, but it was exciting to see the determination to invest in advanced manufacturing. This theme is important to communicate to state and federal leaders in order to ensure [the] best policy decisions.
At Polaris MEP and at our MEP sister centers across the United States, team members have been helping small- and medium-sized manufacturers see the potential of automation, cobotics [collaborative robots] and the industrial Internet of Things. These higher-tech solutions reduce costs, which makes Rhode Island products more competitive now. And they free up skilled team members to innovate for future growth.
In the past, many of the companies seemed overwhelmed by the idea of tech acceleration. Perhaps the way companies rallied in response to the pandemic may have helped them see that they can handle any challenge.
PBN: What is the outlook in terms of how long it would take for recovery, according to the survey, and your thoughts on that?
COWAN: I mentioned previously that Rhode Island is one of few states that never closed the manufacturing industry and I am proud to be part of the system that allowed those operations to continue. The future holds many unknowns for employers and state officials, but the outlook from employers was optimistic.
Thirty-seven percent of respondents said that it would take less than a month for their company to return to “business as usual,” were COVID-19 to disappear today. That was up 6 percentage points from the previous survey.
At the same time, 30% said that a global market rebound was needed for manufacturing to recover more quickly, and we believe they’re being overly optimistic about that bounce back of one month. Ripple effects are going to be felt for years, so ongoing support from federal and state entities is critical.
Susan Shalhoub is a PBN contributing writer.
