Risk Insider: Dan Holden

Manufacturing’s Talent Gap

By: | April 19, 2017 • 2 min read
Dan Holden is Manager of Corporate Risk & Insurance for Daimler Trucks North America (formerly “Freightliner”). He manages the risk management program in the U.S., Canada and Mexico. He can be reached at [email protected]

Twenty five years ago labor experts warned employers about an impending shortage in the skilled manufacturing workforce caused by the soon-to-be-departing baby boomers. Almost no one listened.

Those few employers who did realized preparation meant investing in training. Investment = money so many employers put it off, especially during the Great Recession of 2008 – 2010.

So here we are America … needing to fill 3.5 million manufacturing jobs in the next 10 years, according to the Deloitte publication, The Skills Gap in U.S. Manufacturing 2015 & Beyond.”

Deloitte opines that we’ll be lucky to fill 1.5 million of those openings, leaving a gap of 2 million jobs. This potential shortfall didn’t go unnoticed by Daimler Trucks North America (DTNA), a manufacturer of class 5-8 commercial vehicles, school buses, and heavy-duty to mid-range diesel engines. The company saw this bullet coming years ago.

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To those in the know, the skilled workforce shortage conundrum isn’t new. As far back as 1990, the National Center on Education and the Economy identified this job shortfall in its report, “The American Workforce – America’s Choice: High Skills or Low Wages,” stating large investments in training were needed to prepare for the slow workforce growth.

If you look at the burgeoning skills gap, coupled with vanishing high school vocational programs, how, as an employer, do you recruit potential candidates?

To not address the millennials’ employer predilections is to miss an opportunity to tap into a vast resource of potential talent.

DTNA addresses the issue by reaching out to high schools throughout the U.S. via the Daimler Educational Outreach Program, which focuses on giving to qualified organizations that support public high school educational programs in STEM (science, technology, engineering and math), CTE (career technical education), and skilled trades’ career development.

Daimler also works in concert with school districts to conduct week-long technology schools in one of the manufacturing facilities, all in an effort to encourage students to consider manufacturing (either skilled or technical) as a vocation.

Like all forward-looking companies, Daimler must address the needs of the millennials who – among a number of their desires – want to make the world a better place. Jamie Gutfreund, chief strategy officer for the Intelligence Group notes that 86 million millennials will be in the workplace by 2020 — representing 40 percent of the total working population.

To not address the millennials’ employer predilections is to miss an opportunity to tap into a vast resource of potential talent. To that end, Daimler has always emphasized research in renewable resources and community involvement as well as a number of philanthropic endeavors. Not only is it the right thing to do, but it also appeals to the much-needed next generation who will fill the boots of the exiting boomers.

Just because a company manufactures heavy-duty commercial vehicles doesn’t mean it can’t give back to the environment and the community at large. And, in the end, that will help make the world a better place.

More from Risk & Insurance

More from Risk & Insurance

2017 RIMS

Cyber Threat Will Get More Difficult

Companies should focus on response, resiliency and recovery when it comes to cyber risks.
By: | April 19, 2017 • 2 min read
Topics: Cyber Risks | RIMS

“The sky is not falling” when it comes to cyber security, but the threat is a growing challenge for companies.

“I am not a cyber apocalyptic kind of guy,” said Gen. Michael Hayden, former head of the Central Intelligence Agency and National Security Agency, who currently is a principal at the Chertoff Group, a security consultancy.

Gen. Michael Hayden, former head of the CIA and NSA, and principal, The Chertoff Group

“There are lots of things to worry about in the cyber domain and you don’t have to be apocalyptic to be concerned,” said Hayden prior to his presentation at a Global Risk Forum sponsored by Lockton on Sunday afternoon on the geopolitical threats facing the United States.

“We have only begun to consider the threat as it currently exists in the cyber domain.”

Hayden said cyber risk is equal to the threat times your vulnerability to the threat, times the consequences of a successful attack.

At present, companies are focusing on the vulnerability aspect, and responding by building “high walls and deep moats” to keep attackers out, he said. If you do that successfully, it will prevent 80 percent of the attackers.

“It’s all about making yourself a tougher target than the next like target,” he said.

But that still leaves 20 percent vulnerability, so companies need to focus on the consequences: It’s about response, resiliency and recovery, he said.

The range of attackers is vast, including nations that have used cyber attacks to disrupt Sony (the North Koreans angry about a movie), the Sands Casino (Iranians angry about the owner’s comments about their country), and U.S. banks (Iranians seeking to disrupt iconic U.S. institutions after the Stuxnet attack on their nuclear program), he said.

“You don’t have to offend anybody to be a target,” he said. “It may be enough to be iconic.”

The world order that has existed for the past 75 years “is melting away” and the world is less stable.

And no matter how much private companies do, it may not be enough.

“The big questions in cyber now are law and policy,” Hayden said. “We have not yet decided as a people what we want or will allow our government to do to keep us safe in the cyber domain.”

The U.S. government defends the country’s land, sea and air, but when it comes to cyber, defenses have been mostly left to private enterprises, he said.

“I don’t know that we have quite decided the balance between the government’s role and the private sector’s role,” he said.

As for the government’s role in the geopolitical challenges facing it, Hayden said he has seen times that were more dangerous, but never more complicated.

The world order that has existed for the past 75 years “is melting away” and the world is less stable, he said.

Nations such as North Korea, Iran, Russia and Pakistan are “ambitious, brittle and nuclear.” The Islamic world is in a clash between secular and religious governance, and China, which he said is “competitive and occasionally confrontational” is facing its own demographic and economic challenges.

“It’s going to be a tough century,” Hayden said.

Anne Freedman is managing editor of Risk & Insurance. She can be reached at [email protected]