NACFAM September 7 2017 Get with the Program Digitalizing Americas Advanced Manufacturing Sector MarkMuro1 Digitalization What it is why it matters A new analysis and national trends ID: 652914
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Slide1
Mark Muro
Brookings Metropolitan Policy Program
NACFAM
September 7
, 2017
Get with the ProgramDigitalizing America’s Advanced Manufacturing Sector
@
MarkMuro1Slide2
Digitalization: What it is; why it matters
A new analysis and national trends
Digitalizing advanced manufacturing
1
23Slide3
Digitalization: What it is; why it matters
A new analysis and national trends
Digitalizing advanced manufacturing
1
23Slide4
Rapidly changing business models
Relentless pace of technological change
“
Digitalization of everything”
Technological innovations are transforming our economySlide5
A whole new world beckons
Virtual
design and
simulation
Internet of Things
Manufacturing
as a
service
Big Data analytics
Manufacturing
“start-ups
”Slide6
Digitalization
is the process of
employing digital technology and data to transform business operations and create value
What we mean by “digitalization”Slide7
Opportunities include productivity gains and transformed industriesSlide8
60,000
100,000
Challenges include an IT skills gap and limited overall digital proficiency
Source: BLS Presentation, 2016
Source: OECD
1 in 6working-age Americans are unable to use email, web
search, or other basic online toolsSlide9
Digitalization: What it is; why it matters
A new analysis and national trends
Digitalizing advanced manufacturing
1
23Slide10
How we studied digitalization
545
occupations
Knowledge
of Computers and Electronics
Interaction
with
Computers
Two categories of O*NET digitalization data
Comprehensive digitization score from 1 to 100
91%
of the U.S.
labor force
Software Developers
,
94
Computer Systems Analysts
79
Lawyers
58
Construction Supervisors
55
Registered Nurses
55
Security Guards
31
Restaurant Cooks
18
Construction Laborers
17
Personal Care Aides
14Slide11
We sorted occupations by high, medium, & low digital requirements
Software Developers
Automotive Services Technicians and Mechanics
Registered Nurses
Office Clerks
Computer Systems AnalystsLawyers
Low
(digital scores below 33)
Medium
(digital scores between 33 and 60)
High
(digital scores above 60)
Financial Managers
Security Guards
Restaurant Cooks
Personal Care Aides
Construction Laborers
Market Research AnalystsSlide12
Share of U.S. employment by digital skill level
The share of jobs requiring high & medium digital skills has skyrocketed
Administrative support
39
64
Tool & die makers
3
51Slide13
Industry digitalization varies widely
Share of sector employment by digital score, 2016
Higher paying
Lower payingSlide14
Digitalization drives industry productivity growth
Annualized Productivity Growth by Sector, 2010 - 2016
Oil & Gas Extraction
Management
Information technologyWholesale trade
Mining (except Oil & Gas)Finance
Media
Retail Trade
Healthcare Services
Educational Services
Advanced ManufacturingSlide15
Digitalization: What it is; why it matters
A new analysis and national trends
Digitalizing advanced manufacturing
1
23Slide16
Digitalization is a defining trend in advanced manufacturingSlide17
Employment
in advanced manufacturing by digital skill level
The sector is rapidly digitalizing
39
Digital score, 2016
24Digital score, 2002
Advanced Manufacturing SectorSlide18
Tech-oriented occupations are increasing their share of advanced manufacturing employment at the expense of routine occupations
Advanced manufacturing occupations are changing
Occupation Name
Job Change, 2002-16
Avg. Annual Growth Rate, 2002-16
Software developers, systems software
+73,130
— *
Software developers, applications
+51,900
— *
Operations research analysts
+3,050
6.0%
Graphic designers
+6,720
5.6%
Computer systems analysts
+5,520
1.6%
Welders, cutters,
solderers
, and
brazers
-1,810
-0.1%
Painters, transportation equipment
-3,600
-1.7%
Machine feeders and offbearers
-18,550
-8.2%
Advanced Manufacturing
+190,360
0.3%
*No advanced manufacturing jobs in this occupation in 2002Slide19
Digital skill ratings for occupations in advanced manufacturing
Advanced manufacturing occupations are changingSlide20
On-ramps to middle-class careers are rapidly upskilling
Digital skill ratings for key “opportunity jobs”Slide21
1.
Commit to digital transformation
2.
Expand and widen
the digital talent pipeline
The industry should adopt two digital workforce agendasSlide22
1.
Commit to digital transformation
Expand investment
in digital-factory R&D and adoption
Embrace
new open or networked tech modelsRecognize the importance of young firms
The industry should adopt two digital workforce agendasSlide23
2
.
Expand and widen the digital talent pipeline
Invest
in upskilling incumbent workers
Expand work-based learningAlign and scale up
education and tech training
Provide
top-flight career on-ramps
The industry should adopt two digital workforce agendasSlide24
Emphasize adaptability, creativity, continuous learning, and social skills over rote information processing
Finally: Cultivate what is “uniquely human”Slide25
Mark Muro
Senior
F
ellow Metropolitan Policy Program at
Brookingsmmuro@brookings.edu@markmuro1
For more information:Slide26
Mark Muro
Brookings Metropolitan Policy Program
NACFAM
September 7, 2017
@
MarkMuro1
Get with the Program
Digitalizing America’s Advanced Manufacturing Sector