SynergyTech hosts H.O.T. Day to raise awareness about manufacturing

An event to showcase and celebrate Northwest Arkansas manufacturing also gave local manufacturers the opportunity to honor a non-profit organization that helps the companies bridge their workforce shortage gaps.

SynergyTech is a non-profit organization in Springdale that describes itself as "a member-driven network of Northwest Arkansas business and industry partners cooperating to develop a highly trained workforce." The 25 member businesses can send employees to SynergyTech for training in industry-specific skills and advanced technologies.

The organization on Oct. 23 hosted a “H.O.T. Day” (Hands On Training) to celebrate National Manufacturing Day. Springdale city officials, – including the fire and police departments who manned the grill – member companies and anyone interested in learning more about manufacturing and SynergyTech were invited to attend.

“We want people to be aware of what’s in Northwest Arkansas,” said Marty Cloud, senior industrial skills coordinator for SynergyTech. “We have high-tech companies in Northwest Arkansas where people can make a good living in industry.”

Northwest Arkansas manufacturing sector employment has declined in recent years. The sector employed an estimated 26,100 in September, down from 26,200 in August, and down from the 26,500 during September 2013, according to the U.S. Bureau of Labor Statistics. Sector employment is down 21.6% from more than a decade ago when September 2004 manufacturing employment in the metro area stood at 33,300.

CAREER OPTIONS
Cloud said the age-old adage of “you have to go to college or you’ll work in a factory” creates a negative connotation for students deciding their next steps after high school or during college.

“(Students) can go to work in factories and make a good living without going to college,” he said.

The organization works with existing employees of the member companies who can send their employees for hands-on training that is more skill-based rather than specific to a given process. For example, the students learn the functions of electronics or machinery that is common in various manufacturing processes.

SynergyTech officials hope to open up the programs to other individuals. Cloud said the state earmarked up to $15 million for workforce development programs but the process for applying for that money is still under development.

Jonathan King, TPM manager for Pinnacle Food Groups in Fayetteville, and Mark Clarke, director of manufacturing for Rockline Industries in Springdale, are on the SynergyTech board and were on hand for the event Thursday. Both said their companies previously had a large in-house training department but with the services at SynergyTech, they are able to send employees there for training. Their employees learn trade and skill-specific lessons instead of focusing on individual pieces of equipment. This allows the employees to transfer their skills to new processes as companies change and grow, or if the employee gets another manufacturing job elsewhere.

Companies want to keep their newly trained employees, so they incentivize the training by paying for it, Clarke and King agree. King said Pinnacle goes a step further and offers increases in pay for taking courses.

Edward Haddock, senior area manager-Northwest Arkansas for the U.S. Small Business Administration Arkansas District Office, also attended the event. He said small businesses are facing similar struggles to the larger manufacturing companies when it comes to finding and keeping qualified, trained employees. The SBA works with businesses to make sure they know what resources are available to them for training and other needs, be it soft or hard skills.

“We want to get more people in jobs and get the small businesses the resources they need so we can grow the economy,” Haddock said.

RESHORING, YOUNGER WORKERS
Two major components are affecting manufacturing in America, including Northwest Arkansas: Increasing reshoring efforts and a workforce that is aging out.

Area companies like Rockline are reaching out to high school students to educate them on the training and career options. Organizations such as local chambers of commerce and SynergyTech also are working to help companies recruit and retain a trained, younger workforce as the existing employees are starting to retire.

Cloud said SynergyTech has not necessarily been directly affected by reshoring efforts because their member companies are already located in Northwest Arkansas. Economic Development officials from the Fayetteville Area Chamber of Commerce and the Rogers-Lowell Area Chamber of Commerce both spoke with The City Wire about manufacturing growth in Northwest Arkansas and some of the issues manufacturers face.

Chung Tan, Director of Economic Development for the Fayetteville Chamber, said the city continues to see existing manufacturers expand by either hiring or building new buildings. Two examples are Bright Technology and Packaging Specialties, she said.

Challenges they face are:
• Hiring of mid-level staff with 3-5 experience;
• Misalignment of skill sets and/or expectations; and
• Lack of interest to work in the manufacturing sector by the workforce.

“These issues have been ongoing across the country,” Tan said. “Fayetteville is working to change that through the emerging workforce, from K-20. K-20 refers to ‘from Kindergarten till the child becomes 20 years old.’”

NORTHWEST ARKANSAS JOB RECRUITMENT
Steve Cox, vice president of Economic Development with the Rogers-Lowell chamber also said reshoring is changing the dynamic in Northwest Arkansas.

“The recent onshoring initiatives have had an impact in NWA,” Cox said. “Companies are not only looking at our area as a place to operate a new business which will create new jobs and help improve the local economy, but it also has in impact in existing businesses by creating more demand for local sourcing like raw materials, plastic molds, or shipping and logistics.”

Cox said the biggest issues companies face right now include “push back” from other nations that stand to lose jobs and business. He said there are already lawsuits in play regarding this issue.

“The Rogers-Lowell Area Chamber of Commerce and the rest of Northwest Arkansas is doing everything we can to get these jobs in our area and the groundwork is being done to continue to take advantage of any opportunities that come our way,” he said, adding that Northwest Arkansas has a lot to offer manufacturing companies.

“NWA has a proven history of successful business ventures and being in the middle of the country it is an ideal place for shipping finished products,” Cox continued. “I have spoken with one company who said that by shipping out of (Northwest Arkansas) versus the west coast they save over 2 million miles a year on their trucks.”