O'Sullivan Films, Winchester

O'Sullivan Films, Winchester

When Continental Corp. announced its decision to invest an additional $10.3 million in its Winchester manufacturing facility in November 2018, its goal was to expand operations to speed production of its O’Sullivan brand surface products to market. But the quicker turnaround of these sheet products for automotive end-use applications would not be possible without the availability of the manufacturing industry’s most in-demand resource: a skilled workforce.

With national unemployment at 3.8% per the Bureau of Labor Statistics’ March 2019 numbers, many manufacturers can’t get enough talent onboard to complete increasingly digitalized tasks.
 
In fact, a 2018 report from Deloitte and The Manufacturing Institute noted that manufacturing job openings have grown at double-digit rates since mid-2017 and are approaching the historical peak demand seen in 2001. The same study predicts an increase in the total of unfilled jobs in the U.S. manufacturing industry in the next 10 years from 2 million to 2.4 million.

Yet across the Commonwealth, and its diverse array of manufacturing operations, companies are celebrating the availability of and state support for this invaluable human resource.

Continental is a case in point. “As the Virginia location was already a sound base, with connections to all major customers, it started as a sound location for expansion,” said R. Scott Krueger, CEO, president, and plant manager for Benecke-Hornschuch Surface Group, the Continental subsidiary behind the O’Sullivan brand. “However, I would say the biggest advantage the Winchester site has is the workforce. The company location has a sound and secure workforce, with a history of tenure.”

Krueger explained that the state and region provided incentives to create 61 additional jobs and initiatives to train its 450 employees, incentives that encouraged the German company’s expansion in Virginia. But more than that, Krueger cites the variety of local colleges and a K-12 program that supports traditional higher education as well as career and technical education initiatives as a boon for manufacturers.

Manufacturing Is a Major Driver of Virginia's Economy

Manufacturers in Virginia accounted for over 243,000 employees in 2017, or 6.4% of the state’s workforce. Manufacturers account for 8.7% of the state’s GSP, according to the National Association of Manufacturers (NAM).

Data published by the Virginia Manufacturers Association’s (VMA) Vision for a More Competitive Manufacturing Future report ranks Virginia as the fourth-most competitive state for manufacturing, and workforce plays a significant role in this strength. “Our data shows the $43-billion economic impact of manufacturing is broadly distributed across the state, but there are clear concentrations in Richmond, Hampton Roads, and the Shenandoah Valley,” said Brett Vassey, VMA president and CEO.

The state supports industry by connecting manufacturers to trained workers in highly technical fields and supporting training that sets a clear career path for employee development.

As diverse as the geographical makeup of the Commonwealth’s manufacturing base is the wide range of products created here. While there are some clear leaders, goods produced range dramatically from food and beverage products to aerospace components.

The Hershey Co. is among those diverse manufacturers. The sweets-maker’s Stuarts Draft facility occupies more than 600,000 square feet and employs about 1,000 employees in producing Reese’s, Hershey’s and Peter Paul (Mounds and Almond Joy) brand products. “Within these brands, we have continued to add innovative new products over the past year,” explained Jeff Beckman, corporate communications director for The Hershey Co. “In 2018, we also added new production lines that have been installed and are now operating.”

Running these lines are an additional 199 people all hired in 2018, making up approximately 20% of the plant’s workforce. Beckman noted that the hiring frenzy came through support from the Commonwealth of Virginia through its Virginia Jobs Investment Program (VJIP), Augusta County, and the Shenandoah Valley Workforce Development Board.

“Their efforts and ongoing support have enabled us to expand our workforce through VJIP’s Virginia New Jobs Program, develop forward-thinking apprenticeship programs with the Valley 2 Valley grant funding, and retrain our existing workforce, which allows us to continue to expand our operations,” Beckman said.

Developing New Technical Skill Sets

While food production has its own level of demands, the state’s leading engineering universities and technical programs also make Virginia an attractive location for more technical production.

In May 2018, Rolls-Royce Crosspointe in Prince George County celebrated a milestone: the production of its 10,000th rotative disc. It’s one of many precision-engineered engine components that the company manufactures in Virginia for some of the world’s most advanced aircraft manufacturers, from Boeing to Airbus to Bombardier.

Don Campbell, director of communications for Rolls-Royce North America, calls a reliable workforce pipeline “a key enabler for growth” at the Crosspointe location. “Rolls-Royce also maintains a meaningful public-private partnership with research-based universities and technical schools in the area,” Campbell elaborated. “We have strong university relationships with both the University of Virginia and Virginia Tech, where we develop new technologies through joint research programs and cultivate recruiting pipelines of future talent.” The company also has established a state-accredited apprenticeship program and has developed new learning programs with local schools, including John Tyler Community College

John Tyler Community College

John Tyler Community College, Chester

But it was the lure of dedicated manufacturing research that truly helped the company commit to a presence in Virginia. In 2007, the Commonwealth, the University of Virginia, and Virginia Tech launched a project to develop an applied research center that helped secure Rolls-Royce’s initial investment in the state. The Commonwealth Center for Advanced Manufacturing is adjacent to Rolls-Royce’s campus and serves as a place to collaboratively explore the latest technical research.

Academia, government, and industry partner at CCAM to pursue directed research on state-of-the-art industry-scale equipment. Projects today are working to explore automated machinery that adapts to environmental input, new applications for additive manufacturing, new machining technologies, and strengthened surface engineering.

Despite concentrations in certain regions, manufacturers have found benefits in siting locations across the state. For example, mining and construction safety equipment manufacturer PBE Group is growing its export business from North Tazewell in Southwest Virginia. The company is able to recruit from local colleges, including Bluefield State College, Southwest Virginia Community College, and Virginia Tech. Chief Operations Officer Christa Glassburn noted that the relatively low cost of living allows manufacturers to more affordably pay a competitive wage. The result?

“We can get skilled workers who stay — they’re high tenured — and we can have realistic wages that help us compete with international wages so we don’t get pushed toward outsourcing everything,” Glassburn said. (For more on PBE Group, see "PBE Group Expands its International Presence.")

Pursuing a Digital Transformation

Because digitalization is today’s new normal, some manufacturers are evolving to transform their processes, and enhance the skills of their workforces, to succeed in this new environment and increase the levels of complex machining they’re able to demand.

Old Dominion University is developing curricula for engineers, IT professionals, and trades workers to ensure they're prepared to incorporate new technologies in shipbuilding and that they'll be able to constantly innovate and change as the industry is disrupted.

Rob Hogan Vice President of Manufacturing, Newport News Shipbuilding
Newport News Shipbuilding, Newport News

Newport News Shipbuilding, Newport News

While Huntington Ingalls Industries’ Newport News Shipbuilding division has been innovating in its field for the last 132 years, the company stands today at the precipice of a new era. The state’s largest industrial employer, with more than 22,000 employees, is focusing on enhancing its digital infrastructure. In June 2018, the company announced in plans to invest nearly $1 billion in its facilities and technology infrastructure, as well as employee training necessary to lead a digital upgrade in shipbuilding processes.

The integrated Digital Shipbuilding project aims to empower the company’s workforce through improved ease of access to secure information, with new tools that include 3D work instructions as well as the augmented reality, modeling, simulation, and laser-scanning technologies that are being proven in other market segments to help speed even the most complex designs more quickly and accurately into production.

Training and hiring necessary to support this transformation is being supported by a unique partnership with the Governor’s office and assistance from state agencies. The plan is not only to create a more digitally sophisticated workforce, but also to amp up manpower across its 550 acres to fulfill its contract to build components for new Columbia-class submarines. Newport News Shipbuilding intends to hire nearly 7,000 people, with creation of 2,000 new jobs, over the next five years.

The state has provided funding for the organization’s robust maritime prehire program that is operated through local community colleges.

In addition to this program, the shipbuilder stands to benefit from a Growth and Opportunity for Virginia (GO Virginia) grant and state funding to Old Dominion University, which will develop a curriculum centered on the skills needed to succeed in digital shipbuilding.

“Old Dominion University is developing curricula for engineers, IT professionals and trades workers to ensure they’re prepared to incorporate new technologies in shipbuilding and that they’ll be able to constantly innovate and change as the industry is disrupted,” Rob Hogan, vice president of manufacturing for Newport News Shipbuilding, explained.

Huntington Ingalls Industries, Newport News

Huntington Ingalls Industries, Newport News

Maintaining Infrastructure That Connects Businesses

While Virginia’s workforce stands out to manufacturers, there’s another reason the Commonwealth attracts manufacturers in so many fields. As Beckman put it, facilities are “conveniently located near major interstates, which makes it easy to move raw materials and finished products into and out of the facility.”

VMA’s Vision document highlights infrastructure as an important component in driving manufacturing growth. While the workforce development available through Virginia’s expansive network of four-year and community colleges and technical training programs may serve as the heart of a diverse range of manufacturing operations, consider the state infrastructure the venous system connecting manufacturers to raw materials and products to end-users around the world.

When it’s time to send products out to market, the state’s international gateways, including The Port of Virginia and Washington Dulles International Airport, simplify the process of getting products not only across the country but around the world. These gateways provide the necessary logistical access to ship Virginia products to international markets, and with that access comes the international service industry to facilitate exports, such as freight forwarders, custom house brokers, attorneys, bankers, etc.

However, Hogan pointed out that one of the reasons the state is an ideal location for manufacturers isn’t just the ease of getting products out, but the ease of bringing in materials. “There are lots of options to bring in materials through transportation networks, including rail, water, and road,” he said.

Small Business Success

While easy proximity to international markets noticeably attracts large manufacturers, part of the Commonwealth’s strength in manufacturing lies in its diversity. VMA notes that 74% of the state’s manufacturers have fewer than 25 employees.

Small companies not only supply components, research, and technology that their larger counterparts can put to use — with the right support, they can drive the innovation that will make them tomorrow’s large employers.

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