Changing Industry Needs: Mismatch of Skills

Challenges facing the Automotive and Metal Fabrication cluster's growth and competitiveness can be explained, in part, by inadequacies in the Kalamazoo-Battle Creek region's economic infrastructure. In particular, the transition of the local automotive industry from low value assembly to higher value-added component manufacturing has created changing workforce skill demands. The local education infrastructure has not evolved to meet these new skill requirements. For example, local elementary, high schools and colleges lack a curriculum focused on specific job skills required by the regional automotive industry. Continuous adult training to assist current workers to acquire higher skills and further career path opportunities within the changing automotive industry is also not currently accessible at local community colleges. The new higher value added auto components manufacturing industry offers well-paid technical jobs; but the local educational culture does not give precedence to manufacturing careers. Moreover, the industry is having difficulty recruiting workers to relocate to the region in a competitive market for engineering-related skills. This mismatch of skills and subsequent labor shortage creates a significant barrier to local industry expansion. Local business leaders feel that better communication and closer relations between local industry and educational institutions would facilitate enhanced skills training. The regional automotive parts producers will continue to face new challenges as auto assemblers increasingly demand suppliers to lower their costs and assume greater design responsibilities. Thus, as local firms respond to new industry trends, they will need to rely on a supportive regional education infrastructure that is tuned in to their changing skill requirements.

Business Climate: Unfriendly to Growth

This cluster believes that the local business climate does not provide an environment conducive to growth. Fragmentation and duplication in the regional governmental system has resulted in multiple regulatory land use water and sewage jurisdictions that complicate the compliance process for local firms. In addition, the advent of new federal and state laws in environmental and occupational, as well as health and safety regulations will require local businesses to spend considerable time determining their specific response. Changing regulatory processes without local government information assistance frustrates firms doing business in the region.