A new report card on the health of manufacturing gives Tennessee a "B" grade, but the state drew a "D" for human capital as it faces labor challenges.
"Almost the first question when we're in contention for a project, the primary question is about the ability to hire," said Charles Wood, the Chattanooga Area Chamber of Commerce's vice president of economic development. "It really doesn't matter if it's a software company or a manufacturing company."
Georgia recorded a "C-" for manufacturing health, according to the manufacturing and logistics report card prepared by Ball State University for Conexus Indiana, that state's advanced manufacturing initiative. It gave Alabama a "B."
Georgia posted a "D+" in human capital, while Alabama got a "D-."
Countrywide, manufacturing employment edged up in June by 1,000 jobs, the National Association of Manufacturers reported on Friday. It was the sixth increase in net hiring in the past seven months, with the sector adding 71,000 workers over the period.
According to NAM, the sector accounts for nearly 15 percent of Tennessee's total output and employs 11.4 percent of its workforce.
Lyn Potter, interim dean of engineering and information technology at Chattanooga State Community College, said there's a high demand from companies in the area for an advanced manufacturing workforce.
In June, CSCC had at least three advanced manufacturing initiatives ongoing at its Amnicola Highway campus.
"We have five companies which have intern opportunities paid internships," she said. "We hope this will encourage students to go into an advanced manufacturing career field and come to Chattanooga State to complete a degree."
Grading the states
Manufacturing health for 2017 and 2016› Tennessee: “B” — no change from 2016› Georgia: “C-” — up from D+› Alabama: “B” — down from “B”Logistics health for 2017 and 2016› Tennessee: “C+” — no change from 2016› Georgia: “B” — no change› Alabama: “C” — no changeSource: 2017 Manufacturing and Logistics Report Card
The Chattanooga 2.0 education and workforce initiative has cited a community goal of doubling the number of residents with a post-secondary education within the next decade. It said that 80 percent of the jobs arriving in Hamilton County paying more than $35,000 a year require some sort of post-secondary certificate or degree.
Dennis Tumlin, executive director of economic and community development in Rhea County, Tenn., said that CSCC played a role in attracting the $360 million Nokian Tyres plant there. That factory plans to initially hire about 400 people and be in full production by early 2020, officials have said.
"[CSCC] has been actively involved in recruiting from day one. They went to the Russia facility with us," Tumlin said, noting that Nokian already has a tire manufacturing plant there.
The new Ball State report shows Tennessee moving higher from a year ago in the area of worker benefit costs - from a "B+" to an "A."
However, Tennessee fell from a "B" to a "B-" when it comes to sector diversification.
Wood said that on a county-by-county basis, the labor situation is much more challenging for rural communities, particularly those not connected to a metropolitan area which draws talented workers.
"Where we're fortunate is that once [companies] get someone to come to Chattanooga to look at the job, it's a lot easier to sell," he said.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.