Manufacturing: The Minnesota Model

A group of Minneapolis manufacturers, government agencies, non-profit groups and educational institutions believe the secret of survival is a skilled, well-paid workforce.

By Laura French, Star Tribune Sales and Marketing

Last update: April 16, 2007 - 9:22 AM

If you believe what you read in the media, the best way for manufacturing companies to stay in business is to operate in places that use cheap labor. In the Twin Cities, a group of manufacturers, government agencies, non-profit groups and educational institutions is turning that theory upside down. They believe the secret of survival is a skilled, well-paid workforce.

The theory has succeeded so well in practice that employers around the country are taking notice.

Skilled Workers Cut Costs

Some manufacturers think they can cut costs by finding low-wage workers. Erick Ajax, vice-president of Fridley-based E.J. Ajax Metal Stamping, calls it "the race to the bottom." His company operates on a very different principle: Hire skilled, educated workers and offer the training they need to keep their skills up to date. Those workers help the company cut costs through improved speed-to-market and productivity, better quality and innovation.

Ajax has proven that his approach works. Since December 2006, two employees have come up with cost-reduction suggestions. One will save the customer $75,000 a year. The other will save the customer $1.5 million a year. The training they recently received at Hennepin Technical College not only helped the employees come up with innovative ideas; it also gave them the skills they needed to articulate their ideas to the customer. That keeps customers loyal, and enables E.J. Ajax to export metal stamping products to foreign countries, including China.

Years Of Collaboration

Getting those talented workers into the manufacturing workforce has taken years of collaboration between employers and educators. "A lot of national workforce development projects don't get the business involvement we've had," says Joe Fredkove, director of Customized Training Services at Hennepin Technical College. He cites companies like Morrissey, Inc., in Bloomington; Meier Tool & Engineering in Anoka; and Rotation Engineering in Brooklyn Park, as long-time supporters of workforce training and development.

"They challenge me and I challenge them," Fredkove says. Employers define the training needed to produce skilled workers and insist that the faculty have current knowledge of manufacturing methods. Fredkove in turn urges employers to provide career paths and tuition reimbursement programs that enable employees to be lifelong learners. "Employers need to set a standard that says doing the current job isn't enough," he says.

Helping Workers

Minnesota has also been fortunate in the participation of state and nonprofit agencies that support underemployed workers getting into the manufacturing workforce. HIRED, a nonprofit workforce development company, has been a "critical resource," Ajax says. "It provides soft skills and job coaching in how to interview, handling transportation issues and helping make backup plans for child care."

Ajax says that the impending retirements of the Baby Boom generation creates a "scary situation" for employers, but also a "tremendous opportunity" for prospective employees. "A two-year degree from a Minnesota technical college will put them in such a good position," he says. "We're so fortunate to be in Minnesota. We're really the envy of the rest of the country." You can learn more at:

www.M-Powered.info.

Hennepin Technical College programs, www.hennepintech.edu and click on Programs/Majors Quick Link.

E.J. Ajax and Sons, www.ejajax.com.

Laura French is principal of Words Into Action, Inc., and is a freelance writer from Roseville.

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