washington business
find out what local business owners and community leaders said were the top priorities for economic growth . Education and workforce needs surfaced as top needs during every stop of the tour . The anecdotes helped to confirm the findings of a 2013 joint report by the Boston Consulting Group ( BCG ) and Washington Research Council ( WRC ), that the estimated skills-gap — or the gap between the skills young people have when they get out of school and the skills that employers need — amounted to 25,000 jobs , a figure that is expected to double by 2017 .
It ’ s a troubling statistic as the tech and high-tech manufacturing sectors soar in the state . But some positive signs are emerging .
“ Just like anything , workforce readiness could be improved , but we ’ ve been very fortunate with our community colleges ,” said Vaughan , who handles marketing development at Vaughan Company .
Michael Marzetta , president of Altek , Inc ., which manufactures items for medical , aerospace , defense and industrial sectors , said community colleges in Eastern Washington have been responsive to the company ’ s workforce needs .
“ Spokane Community College has stepped up and doubled the size of its machine shop program and updated to CAD and things like that ,” he said . “ I wouldn ’ t exactly say that schools are catching up quite yet , but they are doing a heck of a lot better .”
Amy Anderson , AWB ’ s government affairs director for education and workforce issues , agreed with Marzetta , but explained that more educational innovation needs to be embraced in high schools . at a glance
Washington had more than
289,000 manufacturing employees in 2014
with an average annual compensation of
$ 84,447
“ I wouldn ’ t exactly say that schools are catching up quite yet , but they are doing a heck of a lot better .”
— Michael Marzetta , president , Altek , Inc .
“ Getting kids excited about hands-on fields , building things and developing a passion for inventing and possibly discovering a potential career in manufacturing should start early on ,” Anderson said . “ We ’ re seeing programs like Spokane Valley Tech , Aviation High School in Tukwila and others cropping up , but as the industry changes , this ‘ beyond-the-book ’ education must be expanded to give students , the next generation of Washington workers , an understanding that manufacturing is a worthwhile career choice .”
The industry pays well , which should serve as another attraction for students to take a look at the sector , Anderson added .
According to the National Association of Manufacturers ’ 2013 data , employees in manufacturing receive an average annual compensation of more than $ 84,000 per year , well above the national average salary of just below $ 54,000 .
positives , challenges and policies in washington
Despite some good news on the education front , manufacturing is facing a rough road ahead .
A 2013 joint report by the Boston Consulting Group ( BCG ) and Washington Research Council estimated the skills-gap was 25,000 and is expected to double by 2017 .
Eliminating the job skills gap by 2017 could result in 160,000 new jobs in the state and reduce the unemployment rate by up to 2 percentage points , as outlined in the BCG report .
The BCG report also estimates that solving the job skills gap would generate $ 720 million in additional state tax revenues and $ 80 million in local tax revenues annually .
Washington ’ s manufacturing sector lost 1,800 jobs in February and March 2016 , according to the state Economic and Revenue Forecast Council ’ s May update .
The Institute of Supply Management - Western Washington Index reported declines in Washington ’ s manufacturing sector , a drop to 50.8 in April from 55.7 in March ( index values above 50 indicate positive growth while values below 50 indicate contraction ).
Washington had more than 289,000 manufacturing employees in 2014 , with an average annual compensation of $ 84,447 , according to the National Association of Manufacturers ’ 2015 report . summer 2016 33