This story is part of an ongoing series exploring north central Ohio's workforce trends and how different organizations, including businesses and schools, are adapting to current challenges. Thanks to our presenting sponsor, Gorman-Rupp Company for its ongoing support of trusted independent local journalism.
FREDERICKTOWN — Ohio’s manufacturing sector has seen its ups and downs.
Despite entry-level wage growth of more than 15% in the last two years, 10% of those positions in northeast Ohio are still unfilled, according to a 2023 manufacturing survey results from MAGNET — northeast Ohio’s partner in the state’s manufacturing extension partnership.
Manufacturing and building trades are averaging about a 2% annual quit rate, higher than during the COVID-19 pandemic.
According to a 2023 RAND Corporation study, fewer than 50% of adults who earned a manufacturing-related credential in Ohio from 2006 to 2019 worked in manufacturing in the state one year after graduation.
How can local employers reverse this trend?
Upskilling and growing a diverse workforce pipeline are two potential solutions to the worker shortage, according to research from Lumina Foundation.
In Knox County, Brett Burgett — president and co-CEO of Kokosing Inc — said his company’s leadership development and extensive training programs have helped to lower turnover rates and improve the company’s culture.
“It shows that you’re investing back in your team members which is going to help with retention,” he said.
“That word will get out and help with attracting folks. People want to come into a company that will invest in them. And it shows your mindset is long-term, people want job security and a company that cares about the development of their team.”
Up Next
Richland Source talked with multiple manufacturing companies and larger industries for this Tomorrow’s Talent story investigating how large employment sectors advance talent retention and workforce development. The Gorman-Rupp Company discussed similar ideas in an earlier story on bringing job awareness to students. We also discussed the future of the north central Ohio economy in the first story of the series.
Kokosing leadership programs
Kokosing, the largest construction company in Ohio, has four different leadership development programs:
- Operate with Leadership (OWL) is a two-day program for all of Kokosing’s supervisors.
- A 12-month Accelerated Development Program (ADP) for 50 high performers annually to learn more details of Kokosing’s different companies, leadership development and to build connections with other supervisors.
- A three-year Advanced Leadership Program averages around 25 enrollees. Burgett said ALP aims to develop high performers for senior leadership positions.
- Finally, Women’s Ideas and Strategies Exchange (WISE) is a 12-month development program for women working at Kokosing. Each person in the program is matched with a mentor and a working group to come up with ideas on how to continuously improve the company. WISE averages between 30 and 40 participants annually.
“We take pride in recruiting individuals from the high school and college level and investing in their career growth,” Burgett said. “Approximately 70% of our salaried leadership started in an entry-level or co-op position.”
“People want to come into a company that will invest in them. People want job security and a company that cares about the development of their team.”
— Brett Burgett, President and co-CEO of Kokosing, Inc.
Burgett said he would recommend developing leadership programs for companies of any size.
“If you don’t have the internal resources to put on all the programming yourself, start small and use a third party to help you get started,” he said. “We started with eight to 10 people in ADP and now we have two groups of 25 each year, it’s grown as we’ve grown.”
As a result, Burgett said Kokosing’s annual turnover rate is about 8.6% — significantly lower than the construction industry average of about 68 percent, according to 2021 Bureau of Labor Statistics data.
“The whole reason that we’ve been successful and continue to be successful in the construction industry is our team members,” Burgett said.
“This is why we invest in the development of our team members. That’s always been a focus of who we are and who we will continue to be.”
Did You Know?
According to a survey of more than 200 regional employers, more than 2,000 people of color have entered the manufacturing workforce in the past two years and MAGNET has helped more than 750 women and people of color start manufacturing careers since 2021.
Burgett said manufacturing and many building trade firms must prepare to invest in technology and education across the coming years to advance efficiency.
“We have a demographic challenge,” he said. “The Boomers, a large generation, are retiring, and the next generations are smaller in size. It’s going to be a multi-prong solution to this.
“Technology is going to play a part, the education community will play a part, and then companies have to take the time and have the long-term vision to invest and develop people.”
Nurturing leadership potential
Angela Phillips, CEO of Phillips Tube Group, started a Women’s Leadership Development Program last year.
“A company that I’m on the board for had asked about doing a program for women who were new to management and leadership roles,” she said. “I put together this program that is designed to be collaborative and to leverage development and learning.
“We talk about things that affect any leader, but having a network of support for women in a male-dominated field I think is really important.”
Phillips said PTG’s associates study a leadership book between each session and have time to discuss different strategies and tactics.
“I noticed that many of them were reaching out organically to each other and supporting team members who had specific concerns that they had managed before,” Phillips said.
“Anytime there’s pockets of learning happening for a group of people, I think the whole organization becomes better when those are implemented.”
— Angela Phillips, CEO of Phillips Tube Group
Phillips said PTG’s women’s leadership development program will meet three times annually for female managers of the company’s Ohio and Indiana offices.
“We wanted it to be for anyone in leadership or who has leadership potential,” she said. “Some individuals are saying ‘I’m capable of taking on more than I’m doing today,’ so their initiative has been really helpful for the company.
“Anytime there’s pockets of learning happening for a group of people, I think the whole organization becomes better when those are implemented.”
‘Cutting edge of equipment’ keeps the job fresh
Morgan Speelman, employee engagement specialist at Lloyd Rebar Company, said their employee retention has increased in the past few years, in part to workers feeling they have a stake in the company’s growth.
“Rebar fabrication in general is a physically strenuous job, so we’re always looking to stay on the cutting edge of equipment for both efficiency and to minimize the most strenuous tasks for our team,” Speelman said.
“New and innovative equipment appeals to an up-and-coming workforce as well.”
Speelman said most employees don’t have any knowledge of the rebar industry when they start, but Lloyd Rebar trains them on the skills they need.
“With the increase in construction and demand for different products and resources in our area, I imagine that’s something a lot of employers are going to run into,” she said.
“The fact is that we need more people, so how do we train them in a way that’s effective and encourages people to stay.”
In addition, Lloyd Rebar recently added an online application to its new website, which Speelman said has been an effective tool for attracting new applicants.
She said a drawback is missing out on a natural conversation with a job candidate before scheduling a formal interview, like when someone drops off an application in-person.
“We just added the online application this year,” she said. “We recognize the younger generation prefers online accessibility, but some applicants still prefer to download the application, print it and drop it off in person.
“The online feature may also be more convenient for applicants who are currently working during business hours or have transportation issues. This allows those people the opportunity to still be considered.”
Learn more about the manufacturing industry’s investment in younger talent in a story to publish Aug. 21.
Thanks to Gorman-Rupp Company, Spherion, North Central State College, Ashland County Community Foundation and The Ohio State University Mansfield for their generous support of trusted independent local journalism.
