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September 2023

Mid-South Study: WHAT ARE FUTURE WORKERS LOOKING FOR IN HIGH-TECH SKILLED MANUFACTURING JOBS IN MEMPHIS? Report on findings of a survey of 150 Memphis area residents. Study Commissioned By: The MMBC Continuum Jozelle Luster Booker President & CEO

LETTER FROM THE PRESIDENT & CEO

The Future is NOW!

s the President and CEO of The MMBC Continuum, I am pleased to share with you a comprehensive summary report encapsulating key insights gathered from our recent survey on the aspirations and expectations of young adults regarding high-tech skilled manufacturing jobs in Memphis.

Memphis stands at the forefront of potential economic growth and job creation. Our city is positioned for significant developments, particularly with the Ford and SK $6 billion investment in the BlueOval City electric vehicle and battery manufacturing campus. This survey delves into the perspectives of adults aged 18 to 35, offering valuable insights for employers, educators, and decision-makers gearing up for this wave of economic transformative. The MMBC Continuum commissioned the survey, conducted in August 2023, which engaged approximately 150 individuals residing in the Memphis designated market area. The diverse sample, with 47% minority respondents and 57% women, provides some understanding of young adult perceptions. Notably, 42% of respondents are parents, highlighting the relevance of our findings to those balancing family responsibilities. Quantitative data from the online questionnaire were analyzed, utilizing both descriptive statistics and thematic analysis to extract meaningful patterns and sentiments expressed in open-ended questions. Some of the Key Insights from the Study Include: • High-Tech Manufacturing Jobs are Appealing • Awareness of High-Tech Manufacturing Jobs is Low • Training and Development Opportunities Matter • Inclusive Cultures Drive Attraction • Flexibility is Paramount • Memphis as a Manufacturing Hub This report serves as a guide for our collective efforts to prepare and harness the potential of our workforce. As we anticipate the impact of the BlueOval City campus and many other projects, we understand that these insights are instrumental in shaping strategic initiatives for the benefit of our community. I encourage you to review the report and leverage the findings to create a foundation for your future workforce decisions. Thank you for your commitment to the future growth and inclusive prosperity of Memphis. Sincerely, Jozelle Booker President and CEO The MMBC Continuum

ABOUT THE MMBC CONTINUUM The Mid-South Minority Business Council Continuum (The MMBC Continuum) was established as a part of the Memphis Area Chamber of Commerce in 1973. In 1988, GOALS for Memphis, a think tank of Memphis executives, identified four strategic priorities for the future of Memphis. Minority economic development was one of those priorities. This renewed emphasis on minority development spurred resurgence in the Memphis Regional Purchasing Council, and in 1989, it became a selfsufficient free-standing organization with an independent Board of Directors comprised of senior executives of member corporations. Today, The MMBC Continuum serves as the Mid-South’s foremost minority business development organization and is highly respected by the corporate community as a trusted source of knowledge and expertise. The Mid-South Minority Business Council later changed its name to The MMBC Continuum, to clearly reflect the continuous efforts of the organization to advance minority economic development. MISSION The MMBC Continuum is considered the foremost economic development organization and is viewed as a valued strategic partner by government agencies, municipalities, major corporations, and community agency organizations fostering diversity, equity, and inclusion in the pursuit of M/WBE growth and all of its economic impacts. THE MMBC CONTINUUM - THE ORGANIZATION The MMBC Continuum is a vital economic development partner working with corporations, federal government, state, city and county municipalities and community partners to impact the economies of the communities we serve with a targeted focus on minority and women-owned business growth. The MMBC Continuum supports the development of scalable M/WBEs through customized programming, valuable training and development resources that position scalable minority businesses for growth in order to impact job creation. WHAT ARE FUTURE WORKERS LOOKING FOR IN HIGH-TECH SKILLED MANUFACTURING JOBS IN MEMPHIS? September 2023, The MMBC Continuum commissioned this report. It was prepared by Dr. Candace Steele Flippin, Fellow, Weatherhead School of Management, Case Western Reserve University, and President, Dr. Candace Steele Flippin, LLC. Email: candace.steele@case.edu For more information on this report, please contact: The MMBC Continuum 200 Jefferson Avenue, Suite 1000 Memphis, TN 38103 (901) 525-6512

CONTENTS INTRODUCTION: WHAT ARE FUTURE WORKERS LOOKING FOR IN HIGH-TECH SKILLED MANUFACTURING JOBS IN MEMPHIS? ............................................................................................ 5 About the Survey .......................................................................................................................... 5 Key Insights................................................................................................................................... 5 OVERVIEW OF SURVEY FINDINGS .................................................................................................... 6 INTEREST IN HIGH-TECH SKILLED MANUFACTURING JOBS .......................................................... 6 KNOWLEDGE OF HIGH-TECH SKILLED MANUFACTURING JOBS IN MEMPHIS ............................. 6 APPEALING ASPECTS OF HIGH-TECH SKILLED MANUFACTURING JOBS ....................................... 7 SALARY EXPECTATIONS ................................................................................................................. 7 CHALLENGES ASSOCIATED HIGH-TECH SKILLED LABOR CAREERS................................................ 8 SUPPORT NEEDED FROM EMPLOYERS ......................................................................................... 8 INTEREST IN HIGH-TECH SKILLED LABOR JOB IN THE NEXT 5 YEARS ........................................... 9 INTENT TO STAY IN THE MEMPHIS MARKET ................................................................................ 9 ROLE OF UNION AFFILIATION IN JOB APPLICATION DECISIONS ................................................. 10 INFLUENCE OF DRUG SCREENING ON JOB APPLICATION DECISIONS ........................................ 10 CONCLUSION .................................................................................................................................. 11 Recommendations ..................................................................................................................... 11 APPENDIX: SURVEY DEMOGRAPHICS ............................................................................................. 12 APPENDIX: OVERVIEW OF MEMPHIS DMA .................................................................................... 13

*The data and content presented in this report are the exclusive property of the Mid-South Minority Business Council Continuum (MMBC Continuum). All rights, including but not limited to intellectual property rights, copyright, and other proprietary rights are retained by MMBC Continuum. Any use, reproduction, distribution, or disclosure of the data and content in this report without explicit written approval from MMBC Continuum is strictly prohibited. To seek permission for the use of this data and content contained in the report, please contact MMBC Continuum directly. Compliance with these terms contributes to the responsible and ethical use of the valuable insights presented in this report.

INTRODUCTION: WHAT ARE FUTURE WORKERS LOOKING FOR IN HIGH-TECH SKILLED MANUFACTURING JOBS IN MEMPHIS? High-tech manufacturing offers significant economic advantages to communities because of its potential for job creation and economic growth. Those who work in high-tech manufacturing use computers, technical equipment, and other technologies to build, monitor, and maintain products. As these roles are becoming more prevalent in many sectors, including automotive, medical devices, and aerospace, taking proactive steps to prepare the local Memphis workforce with the necessary training and skills to pursue these opportunities is crucial. This report provides insights on adults aged 18 to 35 in the Memphis market and their perceptions of hightech skilled manufacturing careers. The findings in this report are relevant to employers, educators, and decision-makers contemplating workforce readiness programs ahead of the Ford and SK $5.6 billion investment in the BlueOval City electric vehicle and battery manufacturing campus in West Tennessee. The BlueOval City campus, reported to encompass vehicle assembly, battery production, and a supplier park in a vertically integrated ecosystem,1 is projected to generate approximately 10,000 jobs. Once these roles become available, the high-tech manufacturing jobs at BlueOval City represent a significant source of new opportunities for residents and businesses within the Memphis market. ABOUT THE SURVEY The findings in this report are based on a descriptive survey2 commissioned by The MMBC Continuum to explore young adult3 perspectives on careers in high-tech skilled manufacturing. The survey was conducted in August 2023 and includes results from approximately 150 men and women who reside in the Memphis designated market area (DMA). The respondents were primarily between the ages of 18 to 354. Minority respondents comprised 47% of the sample. Women represented 57% of the respondents. Approximately four in ten (42%) of the respondents are parents. The survey was administered through an online questionnaire. The quantitative data were analyzed using descriptive statistics to examine characteristics within the dataset. Thematic analysis was used to identify common themes, patterns, and sentiments shared by respondents in the open-ended questions.

KEY INSIGHTS •

High-Tech Manufacturing Jobs are Appealing: Young adults find high-tech manufacturing roles exciting, interesting, and financially rewarding.

•

Awareness of High-Tech Manufacturing Jobs is Low: Most young adults are unfamiliar with jobs in High-Tech Manufacturing or how to pursue them.

•

Workers are seeking Training and Development Opportunities: Employers that offer training (e.g., technical and on-the-job training) are more attractive to younger workers.

•

Candidates are Attracted to Companies with Inclusive Cultures: Prospective workers highly regard companies with good reputations and inclusive work cultures.

•

Young Workers Want Flexibility: Many respondents have children and prioritize flexible schedules. Access to childcare facilities near work is an important consideration.

•

Memphis has a strong pipeline for high-tech manufacturing jobs: Respondents conveyed a high likelihood to remain in the Memphis area and pursue roles in high-tech manufacturing.

Ford Motor Company, 2023.

This report builds on preliminary data presented on the August 16, 2023, "What are future workers looking for in high-tech skilled manufacturing jobs in Memphis?" keynote by Dr. Candace Steele Flippin that was presented at the MMBC 2023 Economic Development Forum in Memphis, TN. 3

Young adults in the context of this report refer to adults aged 18 to 35.

Two respondents were 16 and 17 years old.

OVERVIEW OF SURVEY FINDINGS

INTEREST IN HIGH-TECH SKILLED MANUFACTURING JOBS Young Adults believe high-tech skilled manufacturing jobs are exciting. Figure 1 shows that approximately a third of respondents (37%) consider these jobs extremely exciting. Nearly half (44%) of respondents found high-tech work somewhat compelling. Only 3% of respondents did not consider high-tech skilled manufacturing jobs exciting. Figure 1. Q: Do you think high-tech manufacturing jobs are exciting?

Extremely boring

Somewhat boring

Neither exciting nor boring

16%

Somewhat exciting

44%

Extremely exciting

37%

KNOWLEDGE OF HIGH-TECH SKILLED MANUFACTURING JOBS IN MEMPHIS Overall, current awareness of high-tech manufacturing jobs is very low. Figure 2 shows that only 15% of young adults are very familiar with high-tech manufacturing opportunities. Approximately a third of the respondents (34%) are unfamiliar (i.e., know very little or have not heard of) with high-tech skilled manufacturing jobs in Memphis. Figure 2. How much do you know about high-tech skilled manufacturing jobs in Memphis?

31%

21%

15%

I know a lot

13%

I know a little

I have heard of hightech jobs

I know very little

I have never heard of.

APPEALING ASPECTS OF HIGH-TECH SKILLED MANUFACTURING JOBS High-tech skilled manufacturing jobs are perceived to offer competitive pay, development opportunities, and a positive impact on society. The respondents were asked about the most appealing aspects of high-tech skilled manufacturing jobs. The themes from the responses (shown in Table 1) relate to competitive compensation and financial security, continuous exposure to technological advancements, intellectual stimulation, and problemsolving opportunities. Respondents also referenced high-tech manufacturing’s forward-looking nature and impact on society. Table 1. What are the most appealing aspects of high-tech skilled manufacturing jobs to young people?

Themes

Representative Responses

Compensation: High-tech manufacturing jobs are perceived as offering competitive wages and financial security

28% of the compensation responses were similar to:

Learning: Respondents want continuous exposure to technological advancements and learning

23% of the learning responses were similar to:

Intellectual stimulation: High-tech manufacturing work is viewed as offering opportunities for problem-solving and growth

19% of the intellectual stimulation responses were similar to:

Impact on industry and society: The forwardlooking nature of technology and its positive implications were also considered favorable

9% of the impact on industry and society responses were similar to:

“The pay and pride in your work would be the things that would attract someone,” and “I like that they pay their employees a decent living wage.”

“This type of work involves the most advanced technology and innovation...” and “Learning about different kinds of new technology.”

“They challenge your mind to make you better” and “The knowledge that you learn going into the business.”

“Being able to work in a different and more futuristic environment is the most appealing; you get to see changes in the industry as they happen.” and “It can change society and the way people live.”

SALARY EXPECTATIONS Most respondents expect hourly wages to begin between $25 and $40. Figure 3 also shows that 15% of the respondents believe hourly pay between $20 and $25 is acceptable. Less than 1% of respondents consider wages under $20 an hour appealing. Figure 3. What starting salary is most appealing and realistic for you to consider a high-tech skilled manufacturing job?

Less than $20 per hour Between $20 and $25 per hour

1% 15%

Between $25 and $30 per hour

26%

Between $30 and $40 per hour

Between $40 and $50 per hour

41% 17%

CHALLENGES ASSOCIATED HIGH-TECH SKILLED LABOR CAREERS The most commonly cited challenges to pursuing a high-tech skilled labor career path were difficulty learning new skills/technologies and balancing work and personal life. Table 2 shows the top two challenges reported are difficulty learning new skills/technologies (23% of respondents, 49% of responses) and balancing work and personal life (27% of respondents, 59% of responses). Other challenges include perceptions of limited opportunities for advancement, low salary and benefits, workplace discrimination or bias, and transportation to or from work. Table 2. What challenges do you think you would face if you pursued a high-tech skilled labor career path? Challenges

% of Respondents

% of Responses

Difficulty in learning new skills/technologies

23%

49%

Balancing work and personal life

27%

59%

Limited opportunities for advancement

13%

29%

Low salary and benefits

11%

23%

Workplace discrimination or bias

14%

31%

Transportation to or from work

11%

23%

Other

SUPPORT NEEDED FROM EMPLOYERS The preferred benefits reported are healthcare, flexible work hours, and paid time off (PTO). Figure 4 shows that respondents are seeking medical insurance (36%), flexibility with work schedules (29%), PTO (21%), and retirement plans (1%); assistance with tuition was not a priority. Other comments related to the working environment. Figure 4. What types of benefits are most important to you?

Tuition reimbursement 0%

Flexible work schedules 29%

Other 1%

Health insurance 36%

Paid time off 21% Retirement plans 13%

INTEREST IN HIGH-TECH SKILLED LABOR JOB IN THE NEXT 5 YEARS Most respondents would consider a high-tech skilled labor job. Figure 5 shows that a third (32%) of respondents will likely consider a high-tech skilled labor job in the next five years. Nearly 40% of respondents report a moderate likelihood of pursuing these roles. Figure 5. How likely are you to consider a high-tech skilled labor job in the next 5 years?

40%

37%

35%

32% 27%

30% 25%

20% 15% 10% 5%

0% Extremely likely

Somewhat likely

Neutral (not sure) Somewhat unlikely Extremely unlikely

INTENT TO STAY IN THE MEMPHIS MARKET Employers will have a robust near-term and long-term talent pipeline. Figure 6 shows that the majority of the respondents (55%) plan to reside in Memphis in the next three, five to 10 years or more. Figure 6. How long do you plan to stay in the Greater Memphis area? 27%

27%

18% 15% 13%

Less than one year

1 to 3 years

3 to 5 years

5 to 10 years

More than 10 years

ROLE OF UNION AFFILIATION IN JOB APPLICATION DECISIONS More than half of respondents view union affiliation as impactful when deciding to work in high-tech manufacturing. Figure 7 shows that most young adults (56%) believe it plays a role in their employment considerations for high-tech manufacturing roles. However, many respondents are not motivated by union affiliation (44%). Figure 7: How much does having a union job impact your decision to work in high-tech manufacturing?

It is somewhat unimpactful

It is not impactful at all

It is doesn’t matter

35%

It is extremely impactful

21%

It is somewhat impactful

35%

INFLUENCE OF DRUG SCREENING ON JOB APPLICATION DECISIONS Most respondents said drug screening policies are not a consideration when applying for a job. Figure 8 shows that approximately a third (35%) of respondents said that drug testing did not significantly influence their decision to apply for a job. A quarter (27%) said it did not affect their decision. This finding suggests that many young adults are not concerned about drug testing and are willing to apply for jobs that require it. Twenty-one percent (21%) said drug testing played a moderate role, and 14% said drug testing was a significant factor in their decision to apply for a job. These findings suggest that drug screening is not a factor for most young adults when considering applying for a job. Figure 8: How much does drug testing play a role in your decision to apply for a job?

No role at all A small role

27% 3%

Doesn’t matter

35%

A moderate role A significant role

21% 14%

CONCLUSION The Memphis DMA has a large pool of potential workers interested in high-tech skilled manufacturing careers. Young adults are particularly attracted to the on-the-job training and development opportunities that these careers offer. Those with families also value work-life balance, flexible work schedules, and close proximity to childcare facilities. Workers are looking for salaries between $25 and $40 per hour, and the most important benefits they reported include medical coverage, flexible work schedules, and paid time off. In addition to competitive compensation, young adults want to work for employers with good reputations and inclusive work environments.

RECOMMENDATIONS Below are recommendations to encourage young adults to consider and apply for high-tech skilled manufacturing jobs. Create academic partnerships to develop a talent pipeline: Partner with educators to develop curricula and programs that prepare students for high-tech, skilled manufacturing jobs specific to the Memphis market. Develop and implement awareness campaigns that: 1.

Harness the latent excitement in high-tech to build momentum among young adults to consider hightech skilled manufacturing careers.

Inform potential workers about the career opportunities available within high-tech skilled manufacturing careers.

Encourage young adults, especially women, to learn more about high-tech, skilled manufacturing careers.

Create recruitment messaging focusing on company competitive wages, on-site training, and inclusive workplace culture: Communicate competitive salaries and benefits emphasizing technical and on-the-job training programs, inclusive work environments, and flexible work schedules. Expand this study to gain additional recruitment and retention insights: Researching other factors influencing young adults’ decisions to pursue high-tech skilled manufacturing careers can help employers better recruit and retain workers. A more extensive study with 500 to 1000 participants would provide more actionable findings and allow for more detailed analysis of distinct cohorts of workers (e.g., by gender, age, and location). It would also be helpful to study younger workers preparing to enter the workforce and midcareer workers considering a career change into high-tech manufacturing. Finally, focus groups with employers and educators could provide additional insights into the challenges and opportunities facing recruiting workers in the Memphis market.

APPENDIX: SURVEY DEMOGRAPHICS RACE

NUMBER

White

53%

Black

35%

Asian

Other

Multiracial

Latino

Hispanic

GENDER

NUMBER

Female

57%

Male

43%

MARITAL STATUS

NUMBER

PERCENT

Single

49%

Married

29%

Domestic Partner Prefer Not To Say Divorced

18 6 5

12% 4% 3%

Widowed

Separated

CHILDREN

NUMBER

PERCENT

None

58%

One

23%

Two

10%

Three

Four

EDUCATION

NUMBER

Middle School

High School

43%

Vocational

10%

College

35%

Graduate

EMPLOYMENT

NUMBER

PERCENT

Employed

57%

Looking for work

16%

Not looking to work

Student

11%

Homemaker

Other

APPENDIX: OVERVIEW OF MEMPHIS DMA Respondents resided in the following States and Counties.

Memphis DMA Counties Represented in Survey Tennessee: Approximately 59% of respondents •

Shelby County: Memphis, Germantown, Collierville, Arlington, Cordova, Eads, Millington, Bartlett.

•

Fayette County: Oakland, Somerville.

•

Tipton County: Covington, Munford, Atoka, Drummonds.

•

Haywood County: Brownsville.

•

Lauderdale County: Ripley.

•

McNairy County: Bethel Springs, Michie.

•

Hardeman County: Bolivar.

•

Dyer County: Dyersburg.

Mississippi: Approximately 24% of respondents •

Coahoma County: Clarksdale.

•

Lafayette County: Oxford.

•

Alcorn County: Corinth.

•

Desoto County: Olive Branch, Hernando, Horn Lake, Southaven.

•

Prentiss County: Booneville.

•

Benton County: Hickory Flat.

•

Tate County: Coldwater, Senatobia.

•

Panola County: Batesville.

•

Marshall County: Holly Springs.

Arkansas: Approximately 16% of respondents •

Phillips County: Helena-West Helena.

•

Mississippi County: Osceola, Blytheville.

•

Poinsett County: Trumann, Weiner.

•

Saint Francis County: Forrest City, Hughes.

•

Crittenden County: West Memphis, Marion.

•

Woodruff County: McCrory.

Missouri: Less than 1% of respondents •

Pemiscot County: Caruthersville.

200 Jefferson Avenue, Suite 1000 Memphis, TN 38103 901.525.6512 www.mmbc-memphis.org