Nov. 7—Manufacturing is Berks County's largest economic sector, producing $4.7 billion in annual revenue, and accounting for more than 20% of the county's GDP.

To ensure the sector's health for years to come, Berks manufacturers will need to incorporate new technologies and philosophies as they face labor shortages, shifting dynamics between employees and employers, and other challenges.

That message was the focus of the Greater Reading Chamber Alliance's (GRCA) recent annual manufacturing summit, held at the Miller Center for the Arts at Reading Area Community College.

The event — open to GRCA members and nonmembers — featured local leaders in manufacturing that shared insights on how the industry is evolving in 2022.

Timothy Simpson, Paul Morrow professor of engineering design and manufacturing at Penn State University, and co-director of Penn State's CIMP-3D additive manufacturing lab kicked-off the Oct. 25 event.

Simpson's address focused on how a series of interwoven technological innovations are poised to change manufacturing, from how facilities operate and distribute products, to how employees interact and perform their duties.

He introduced the concept of a "digital twin" or digital replica of a physical object, place, or person.

The concept is already being applied by services like Google Maps, which create digital twins of surrounding areas to direct drivers, Simpson said.

He said much like Google uses GPS data to inform drivers of traffic jams, a series of internet-connected sensors positioned on machinery could pinpoint bottlenecks in product assembly and transportation on the factory floor.

Companies like Deloitte have already experimented with such concepts, he said, equipping their digital factory in Dusseldorf, Germany, with sensors that transfer data via cloud computing, creating a digital copy of the facility, updated in real time as objects move and products are made.

Deloitte's facility uses AI to check products for flaws, and that same technology is being developed for widespread implementation in factories, according to Simpson.

Digital twins of machinery could also be used to train employees in 3D-printing and other machine operations, speeding the teaching process by removing safety-related barriers to learning, Simpson said.

"You can't stick your head in the machine when the real printer is printing, but I can do that in VR," Simpson said.

Simpson said Penn State students have already been trained virtually to use 3D printers.

He noted that 3D printing, also called additive manufacturing, is becoming an increasingly cost-effective manufacturing option, with companies like Stryker Manufacturing in Ireland already receiving FDA approval to distribute 3D printed hip and knee replacements.

In addition, digital twins could be used to train robots and "co-bots," robots that act cooperatively with humans, on assembly processes.

All those technologies, combined with the data transfer capabilities of 5G — which, when fully realized, is predicted to offer 20 times faster data speeds than current mobile networks — could enable a sensor-equipped warehouse to use technologies like automated forklifts, mobile robots, and drones, and organize predictive maintenance on equipment, Simpson said.

Simpson described what a typical 3D printer-outfitted medical product facility could look like in a decade or so, when digital twins and other emergent technologies are fully adopted.

He said the facility's 3D printers could be equipped with sensors that generate images, temperature information, and other data from the machinery, which could then be analyzed by AI to determine product quality.

Sensors in trucks leaving the facility could detect overheating during the transport process, and a digital inventory of spare products could be kept and updated automatically. In addition, the entire operation could be broadcast virtually, viewable anywhere in the world by anyone with a VR headset.

Cybersecurity will likely become an even greater a risk in such an environment, Simpson noted, so companies will have to take measures to protect their proprietary information.

Simpson said companies will need to analyze their operations and infrastructure to determine unique business cases for implementing new technologies.

Talent and attraction

A panel discussion focused on how manufacturers can attract and retain employees amid worker shortages and other employment challenges.

Moderated by Alexia Pursely, human resources manager with Arkema, a material design company that operates in 55 countries, the panel featured four human resource experts employed by Reading-area manufacturers.

All companies are dealing with the struggles of a declining workforce, said Scott Smith, vice president and senior HR consultant with Herbein/Mosteller HR Consulting.

Participation in the workforce has declined from 67% in 2000 to 62.4% today, he added, and it's predicted to drop even further, to 59.4%, by 2030, equaling a loss of about 22.8 million workers over that 30-year period.

The change is largely due to baby boomers retiring, Smith said, but the rise of gig work has also had an impact on companies' ability to hire, with 36% of workers now engaging in some type of gig work.

More people than ever are starting their own businesses too, Smith said, with new business applications reaching their highest level in history last year, up 53% from 2019.

Smith said that to combat those changes, it's important for organizations to develop and attract people to do the jobs of the future.

Heather Hillman, human resources manager at Unique Snacks, said her company focuses on making hiring decisions with a focus on ethics, not necessarily profit.

She said her company decided to give a manager they were interested in hiring a week of paid time off prior to starting the position, so she could recover from being burned out at her previous job.

Dayanna Blandon, human resources manager with DAK Americas, an Alpak Polyester Business, said her company has improved turnover rates by extending hiring opportunities to traditionally underserved populations, and offering onsite English-as-a-second language training to employees who are interested.

"It really created that sense of it doesn't matter where you come from, we can make it work if you're committed," Blandon said of her employees.

Nate Swartz, head of talent acquisition at Reading Truck, said strategic workforce planning involves investing in employees early, establishing visible employee recognition initiatives, setting mutual expectations with new hires, and creating meaningful benefits that set your organization apart.

Swartz said one of the perks offered by Reading Truck is a 6-week onsite welding program.

He said the program is beneficial because it teaches employees skills that are specific to Reading Truck's operations and provides employees the emotional benefit of feeling like they've gained a valuable skill.

Steps HR managers can take involve gathering feedback during entry and exit interviews on how retention can be improved, as well as making the effort to collaborate with hiring teams, Swartz said.

Swartz also said his company is also exploring an English-as-a-second-language program.

Hillman noted that hard skill training, while valuable, isn't the only type of training that can help retain entry level employees.

She said her company pays for every employee to attend four Fred Pryor training seminars per year, which teach soft skills like conflict resolution, time management, and communication.

In addition, Hillman said Unique offers two unique growth tracks — in people leadership and process leadership — for entry level employees, and offers a two-year training program with level-based advancement.

"A lot of entry level employees these days are very video game centric, so we created a training plan that makes them feel like they are gaining that next level," Hillman said, adding that the company offers additional training opportunities to employees who say they want to advance their skills.

She gave an example of one employee who is being cross trained in mixing, after spending time working on the packaging line and expressing a desire to expand her skillset.

Smith said another important factor in employee retention is ensuring management teams understand the importance of leading with empathy, adaptability, resilience, curiosity, and other "heart skills."

Analysis of wages

That panel was followed by an analysis of local wages featuring Nic Thomas, development and consulting expert with Gage Personnel.

Thomas noted that manufacturing is competing with other sectors that employ entry level workers, like retail.

"Entry level folks come into Gage Personnel, and they tell us, I've never had a job before, but I think I'm worth $15 an hour, because I just drove down the street and (Wawa) said I could get an entry level job for $15 an hour," Thomas said.

He said that according to U.S. Bureau of Labor Statistics data, wages for entry level manufacturing workers in Berks County average $14.48 per hour.

Entry level manufacturing wages are higher in Berks than in Los Angeles, Calif., an area with an extremely high cost of living, because employers face heavy competition in finding and hiring workers, Thomas said.

He noted that the misconception that "people just don't want to work" is common among companies looking to hire.

Across the country, there were 5.5 million more job openings than there were unemployed workers in July, Thomas said.

Factors like increasing numbers of retirees, and even the impact of long-COVID-19, which Thomas said is keeping 2 to 4 million workers out of the workforce, lead to that misconception.

Thomas also conducted a survey of attendees, which found that companies are not collecting enough actionable information on wages as related to employment and retention.

He encouraged attendees to join the GRCA's NEXT GEN Industry Partnership to provide anonymous data on wages and retention.

Manufacturer's playbook

Rounding out the event were Karen Norheim, president and CEO of American Crane Equipment and Dan Fogarty, chief operating officer of the Berks County Workforce Development Board, who introduced the Playbook for Pennsylvania's Manufacturing Competitiveness.

The Playbook is by the PA Manufacturing Advisory Council, a partnership of manufacturers and industry experts formed in 2021 that aims to provide a unified, state level voice for manufacturers, according to its website.

The Advisory Council compiled the playbook after conducting 13 industry focus groups reaching more than 150 PA manufacturing companies, and surveying 400 companies across the state, Fogarty said.

From those efforts, the Council derived insights related to manufacturer's current challenges with employment, plans to incorporate automation, opinions on state economic development incentives, and more.

The playbook also offers recommendations for recapturing manufacturing's competitive advantage in the state, investing in factories of the future, and collaborating with local and state government to drive prosperity in the sector.

The playbook can be viewed free at www.pamanufacturingcouncil.com/playbook