Women In Manufacturing Stepping Up To Make An Impact That . - Deloitte
Women in manufacturingStepping up to make animpact that matters
“Many outstanding women leaders are making huge stridesin building and promoting the manufacturing industry andare demonstrating what modern manufacturing offers –rewarding and fulfilling careers with limitless opportunity forgrowth. Today’s manufacturing employees are building anddesigning the future, and women in manufacturing serve asambassadors to move this industry forward.“Jay TimmonsPresident and CEO, National Association of Manufacturers
The lay of the landThe state of women in manufacturing4What’s in it for manufacturers?Unleashing the potential of women can reap big rewards6What top executives sayLeadership perspectives8Recruiting and retaining female talentThe collective power of ambassadors12Keeping women on boardRetention drivers and perceived gaps14Forging aheadThe path to attracting, retaining, andadvancing talented women20
Women in manufacturing The lay of the landThe lay of the land: The state ofwomen in manufacturingModern manufacturing is undergoing a fundamentaltransformation; a new fourth industrial revolution.Rapid technological advances and the convergenceof physical and digital manufacturing are helpingchange the way manufacturers operate andraising the bar for required employee skillsets.Talent at all levels is becoming a key competitivedifferentiator. In fact, manufacturing executivesaround the world rank talent as the top driverof manufacturing competitiveness.1 At the sametime, the US manufacturing industry faces anestimated two-million-worker shortfall over thenext decade, and industry executives report thatsix out of 10 positions are currently unfilled due toa manufacturing skills gap.2 Yet, at least one criticalelement that can aid in closing the gap remainslargely untapped–women.About the women in manufacturing studyThe Manufacturing Institute, APICS, and Deloittesurveyed over 600 women in manufacturing andconducted nearly 20 manufacturing executiveinterviews to explore how effectively manufacturingcompanies are attracting, recruiting, and retainingwomen, and what should be done to close thegender gap.The women we surveyed are well-educated(88 percent hold a bachelor’s degree or above),experienced (71 percent have been working over415 years), hold a variety of senior positions, areemployed by large companies (52 percent work inorganizations with annual revenue over 1 billion),and are evenly represented across generations.Women represent a vast talent poolWomen constitute one of US manufacturing’s largestpools of untapped talent. Women totaled about 47percent of the US labor force in 2016, but only 29percent of the manufacturing workforce.3 Womenearn more than half of all associate’s, bachelor’s, andmaster’s degrees.4 They are also advancing in theircareers, holding more than half of all US managerialand professional positions.5 So with plenty ofqualified women in the workforce, how can weincrease the number in the manufacturing industry?What do women have to say?Given that women are underrepresented inmanufacturing, and the argument to increase theindustry’s fair share of female talent is persuasive,one thing is certain: Manufacturing companies likelyneed a different approach to recruiting, retaining,and advancing women in the workplace. The womenwe surveyed and interviewed had a lot to say on thetopic; not just about jobs they’ve had (or aspire tohave), but about manufacturing and changes theywould like to see in the industry’s culture.
Women in manufacturing The lay of the landBringing together executive and industry perspectivesIn addition to surveying more than 600 women in manufacturing, The Manufacturing Institute and Deloitteinterviewed a number of manufacturing industry leaders, including male and female executives, prior STEP(Science Technology, Engineering, and Production) Ahead honorees, and STEP Ahead emerging leaders toinform our overall insights. A special thank you to those who took part in the interviews:Addie LordemannSenior Manufacturing EngineerAdvanced Materials Division3M CompanyVicki PoponiVice President, Automobile Export SalesAmerican Honda Motor Co., Inc.Michelle KumbierSenior Vice President, Product and OperationsHarley-Davidson, Inc.Carol RobertsChief Financial Officer, RetiredInternational PaperDiana PerreiahPresidentArconic Building and Construction SystemsBeth WaltersSenior Vice President, Communications &Investor RelationsJabil Circuit, Inc.Paula BurnsDirector of Production ProgramsBall CorporationCatharine EllingsenEVP, Chief Legal Officer and Corporate SecretaryRepublic Services, Inc.Dr. Sheila ChickeneVice President OperationsDispersions, Resins, and AdditivesBASF CorporationBlake MoretPresident & CEORockwell Automation, Inc.Stacey M DelvecchioAdditive Manufacturing Product ManagerCaterpillar Inc.Joanna BurkeyChief Information Security Officer, Region AmericasSiemens CorporationGilma SaveriaVice President, Human ResourcesDelphi Automotive PLCJenny Snow-BoscoloDirector of Commercial Analytics & ProductionControl, Aerial Work Platform segmentTerex CorporationStaci L. KroonExecutive Vice PresidentEaton CorporationLeah CurryPresidentToyota Motor Manufacturing, West Virginia, Inc.5
Women in manufacturing What’s in it for manufacturers?What's in it for manufacturers?Unleashing the potential ofwomen can reap big rewardsBottom-line boostResearch shows that gender diversity benefitsa manufacturing firm through improved abilityto innovate, higher return on equity (ROE), andincreased profitability.6 When employees believetheir organization is committed to inclusion, theyreport better business performance in terms oftheir ability to innovate.7 For example, companiesin the MSCI World Index (a stock market index of1,652 world stocks) with strong female leadershipenjoyed both higher returns (average annual ROEof 10.1 percent versus 7.4 percent [as of September9, 2015]) and superior average valuation (priceto-book ratio of 1.76 versus 1.56) compared tocompanies without strong female leadership.8Another analysis showed that an increase fromno females in corporate leadership to 30 percentrepresentation is associated with a 15 percentincrease in net profitability.9Diversity and innovationAccording to survey respondents, having women onthe leadership team can help manufacturers deliver:88%diverseperspectives indecision tiveand creativeapproachesand solutions49%improvedfinancialperformance“When women are among leaders in organizations, there is a widerlens of strategic thinking; groups/divisions can weather problemsand issues better, and can identify innovative solutions faster.“Executive interviewee6
Women in manufacturing What’s in it for manufacturers?If you build it, she will comeOrganizations can unleash the full potential of theirfemale workforces by creating a culture whereunique strengths thrive. Culture can’t changewithout women in the room, so companies shouldincorporate strategies to attract high-performingwomen and develop solid retention strategies.Further, focusing on leadership developmentcan drive retention and foster diverse leadershipperspectives. Understanding and addressingneeds such as flexible workplace options also aid inrecruitment and retention. If unique strengths aren’tthriving, it is time to adapt and make changes tobuild a beacon that attracts the best and brightest.7
Women in manufacturing What top executives say What top executives say:Leadership perspectivesWomen and men leaders in manufacturingwho we interviewed were consistent in theirviews on important diversity topics facingmanufacturing companies, employees,and the industry at large. Several commonthemes emerged and are outlined below.1. Employee diversity makesgood business sense. There is a direct correlation between diversity/inclusion and profitability, including the speed andtype of innovation, and diversity of thought. Gender diverse leadership groups encouragebroader strategic thinking, and together, theseteams can tackle issues more effectively.2. C ompanies should identify the gaps betweenexpectations and workplace reality and setclear expectations. I dentifying and recognizing the gap is a criticalfirst step, but sending clear signals to thebroader organization that the gap must beclosed is vital. Perception of manufacturing continues to beoutdated among women. A focus on improvingperception is critical to attracting all talent,especially women.8 Work life balance is still one of the biggestchallenges especially in production / assembly linemanufacturing. Creative approaches, like providingschedules even a few weeks in advance, are needed.3. Increasing visibility of womenleaders is needed. Female role models need to be visible throughoutall levels. It is easier to aspire to what you can see. Companies and professionals should build thefuture pipeline of talent by engaging with youngerfemales. For example, female engineers sharingcareer stories with students is very impactful andsends a positive message about manufacturing.Companies may recruit hard and engage hard,but they also need to figure out how to drivewomen to the top.4. A ttract certified / degreed people earlybecause once they come, they stay. Companies need to customize [retention]strategies for women (or men) with varyingexperience levels, using strategies like aligningrecent female graduates with more experiencedwomen in the organization. Benefits, flexibility, and culture are three factorsthat will attract experienced women.
Women in manufacturing What top executives say 5. Pay attention to the “group in the middle.”6. The path forward. Consider how to retain and engage women at career pointswhere work life balance becomes more complex. Take theopportunity to provide support, alternate pathways, andcustomization in times when women might need it most. Recognize any efforts to address gender gaps need tobegin with the dominant group; that is, men. Allies andadvocates, at all levels and across genders, need to beidentified and engaged. It’s not just about maternity leave, for example, but companiesshould consider how to develop this group after their initialcareer success to challenge them and/or create opportunitieswhen careers plateau. Identifying role models in the organization, mentorship andsponsorship programs, and more importantly believing inoneself / having confidence in one’s abilities, can help reducethe gender gap in manufacturing.Advice from female executives, to their younger selves1.Be passionate about what you do and do what you love– and success will follow.6.With grit, determination, and hard work, you can makeyour mark.2.Take risks, have confidence, keep learning and growing.7.3.Be bold, show trust in your abilities, and thewillingness/drive to take the next step.Don’t pull yourself out of the race prematurely. Thereare times where it looks like there are no easy answers,but you WILL figure it out.4.Do not be afraid to try new things, and get as manydifferent experiences under your belt as you can.8.When knocked down, have the courage, desire, and thewill to get back up5.Find the right mentors and sponsors within theorganization, and develop good relationships. Strategicnetworking can contribute to recognition and success.9.When in a debate or providing opinion, be rational,analytical, and technical rather than being emotional.10. It all begins and ends with you. You need to challengethe status quo and really drive it forward.9
Women in manufacturing What top executives say STEP Ahead honorees and emergingleaders are motivating women tochoose careers in manufacturingThe Manufacturing Institute is promotingthe role of women in manufacturingthrough the STEP Ahead initiative, whichserves to mentor and recognize womenwhile also leading research efforts tacklingthis important topic. The ManufacturingInstitute has recognized 672 women withSTEP / Emerging Leader awards over thefive year period between 2013-2017.How is STEP Ahead making a difference?STEP Ahead Honoree and EmergingLeader award winners can assistmanufacturers in motivating women tochoose careers in manufacturing and inpromoting their advancement.Honorees and Emerging Leadersindicate STEP Ahead has helpedraise the visibility of: Opportunities for womenin the industry Manufacturing opportunitiesin the community Opportunities for womenwithin their companies10Honorees say STEP Ahead recognitionhas helped their career. 42% of honorees aspire to reach theC-Suite 75% say STEP Ahead has increasedvisibility of opportunities for women 88% say it has increased their level ofengagement in developing othersSTEP Ahead Award winners are industryambassadors. 88% engaged with individuals to raisethe visibility of the industry 92% engaged in efforts in thedevelopment of women 70% engaged with K-12 system toencourage young girls and boysOver the last 5 years, STEP Ahead Awardwinners have impacted more than300,000 individuals – from peers in theindustry to school age children.
“Sponsors can help mentor, buta really good one will challengeyou to be uncomfortable inyour world, put you in a placeto think about how to stretchyourself, and make you thinkabout things you wouldn’thave on your own.“Executive interviewee11
Women in manufacturing Recruiting and retaining female talentRecruiting and retaining female talent:The collective power of ambassadorsOpportunities to bolster manufacturing’s attractiveness to women can begin at home and in schools,and female ambassadors can play an important role in improving perceptions. One executive intervieweepointed out, “If I can’t encourage and influence my kids to go into manufacturing, then who else can?”Currently, according to the survey, very few women in manufacturing believe the school system activelyencourages female students to pursue careers in their industry.The good news? Many schools and the manufacturing industry have upped their game over thelast two years, and women are noticing:upup18%17%12%2015201729 percent of women in 2017 (up from 12 percentin 2015) think the school system actively / somewhatencourages female students to pursue a career inthe manufacturing industry.Women arenoticing1224%29%201542%201742 percent of women in 2017 (up from 24 percentin 2015) would encourage their daughter or femalefamily member to pursue a career in their industry.58%of women surveyed have noted positivechange in their industry's attitude towardsfemale professionals over the last five years
Women in manufacturing Recruiting and retaining female talent “Engage with people ata younger age. Femaleengineers going to aschool and talking aboutmanufacturing work isvery impactful and sendsa strong message aboutmanufacturing.“Executive interviewee13
Women in manufacturing Keeping women on boardKeeping women on board:Retention drivers and perceived gapsOpportunities for challenging assignments, work life balance, and attractive income are often the most importantaspects of a women’s career. Manufacturers seeking to retain talented women should consider aligning their employeepolicies to match these demands, while also recognizing female employees’ generational differences. Survey respondents sharedviews on what makes them stay or go, as highlighted below.What is most important towomen in manufacturing?How can recognitionprograms make a difference?STEP Ahead awardee respondentsindicate the recognition / engagementhas helped raise visibility of:What programs do womenrank as most impactful?75%Attractivepayopportunities for womenin the industryFormal and informalmentorship programs70%Challenging andinteresting workmanufacturing opportunitiesin the communityFlexible workpractices69%Work life balance14opportunities for womenwithin their companiesIncreasing the visibility of key leaderswho serve as role models
Women in manufacturing Keeping women on boardWould they do it all over again if they could start over?Survey respondents were asked, “If you were to start your career today, would you choose to stay in yourindustry or prefer to start in a different industry?”More than 70%of women would stay in manufacturing ifthey were to start their career todayWhat is most important at a generational level?Gen Y respondents place higher importance on work life balance and careerprogression while older generations prefer opportunities for challenging assignmentsand company culture. Attractive pay is a common thread across all.Gen YGen X52%50%Challenging and interesting workChallenging and interesting work49%49%48%Work life balanceAttractive income / payAttractive income / pay43%39%37%Attractive income / payCareer progressionWork life balancePre / boomers52%Company culture15
Women in manufacturing Keeping women on boardPerceived gapsDespite progress in certain areas, manufacturers have room for improvement in their efforts to attract,retain, and develop women.Less than 15 percent of women surveyed believe their industry is very accepting of family / personalcommitments and allows them to meet these commitments without impairing their career.More than 4 out of 10 women surveyed are either responsible for the majority of householdduties or share home responsibilities equally with their spouse or partner.Nearly three quarters (72 percent) of women surveyed believe they are underrepresented intheir organization’s leadership team, with a significantly higher share of junior management (78percent) believing they are underrepresented when compared to senior management.Women say standards of performance are not equal71%Of those who believe standards differ, it isencouraging to note, however, thatsurveyed believe standards ofperformance differ for men and women87%of these believe the standardsare higher for women42%of those believethe pay gapbetween men and women in themanufacturing industry has beensignificantly/moderatelyshrinking over the last five years.Secondary research corroborates the issue of less pay for women. In the United States, median earnings forwomen in 2015 were 79.9 percent of what men earned, when comparing for equal experience or roles. The pay gappersists even in STEM occupations such as computer, engineering, and scientific occupations, where women werepaid an estimated 84.1 percent of men’s annual median earnings in 2015.1016
Women in manufacturing Keeping women on boardOther industries are better at attracting womenWhen asked which industries do the best job of attracting and retaining women, survey respondents cited retail,life sciences, consumer products, and technology. Much farther down the list? Manufacturing. In fact, less than10 percent of women surveyed chose traditional manufacturing industries such as aerospace anddefense, automotive, process, and industrial products as best in attracting and retaining women.Process (i.e., chemicals): 1%Aerospace and defense: 1%Industrial products: 1%Automotive: 1%Other: 6%Energy and resources: 1%Technology, media andtelecommunications: 15%Retail: 31%Consumer products: 20%Life sciences and medical devices 23%Formal networking groups still have room for improvement60%60 percent of women surveyedsay there are women’s networkgroups within their company andover half have high involvement73%Yet, 73 percent believe thesegroups have been ineffectivein advancing their careers.17
Women in manufacturing Keeping women on boardWhat makes them go?41%Unattractivepay / income41%Lack of promotionopportunities39%Poor workingrelationships37%Work lifebalanceIf they were to move to another industry, where would they go?For women who indicated they would move to a new industry if they were to start their career today,respondents ranked the following among their top five choices:Highest choices81%31%69%27%64%26%Life sciencesTechnologyConsumer productsPercentages indicate industries that ranked among respondents' top five choices.18Lowest choicesRetailProcess (i.e., chemicals)Automotive36%Lack of challengingassignments
Women in manufacturing Keeping women on board“Companies should consider theirmaternity and paternity policies as away to improve workplace flexibility– it doesn’t affect a huge number ofpeople, but the message that it sendsis so important.“Executive interviewee19
Women in manufacturing Forging aheadForging ahead: The pathto attracting, retaining, andadvancing talented womenFormal and informal mentorships, flexible work practices, and improving the visibility of key leaders whoserve as role models can be the most impactful programs that help manufacturers attract and retain women.And because these programs have enterprise-wide implications, both top-down and bottom-up support willlikely be crucial to their effectiveness and sustainability. Among ways companies can forge ahead:1. Start at the top and lead by example.Currently, 72 percent of women surveyed believethey are underrepresented in their organization’sleadership team. These respondents believeindustry bias towards men for leadershippositions, organizational cultural norms, andthe perception of the industry overall are thethree primary factors for underrepresentationof women. To move the needle on diversity& inclusion (D&I), senior leaders should bealigned on D&I as a business priority, set clearparity goals, and visibly lead by example. As oneexecutive expressed, “The organization has tosense that leadership is really committed to thegrowth and inclusion of women in leadershipranks. If this is something that is going to growand last, that starts with the CEO and board.”There also must be a recognition that any effortsneed to begin with the dominant group, andsuccessful companies have created programsto engage both genders in promoting theimportance of a diverse workforce.202. Foster an innovative and inclusiveculture that encourages genderdiverse teams at all levels.Activate a culture that sparks diversity of thoughtand invites individuals to work together, spurinnovation, and grow with purpose. Studyparticipants cited a number of positive benefits ofgender-diverse leadership teams and organizations,including diverse perspectives in decision-making,innovative and creative approaches and solutions,balanced organizational management, and improvedfinancial performance. This is especially importantat the time of hiring, because diverse teams cannotbe built without a diverse candidate pool. Executivesinterviewed cited practices like requiring diversehiring panels or holding hiring managers responsibleas ways their companies have tackled the challengeof increasing diversity. Many executives echoed thebenefits from having a large variety of inputs comingin, and increasing your team’s “Possibility Portfolio”– the more diverse your team the more possibilitiesfor different and unique ideas and opportunities.
Women in manufacturing Forging ahead3. Tackle workplace diversity issues head-on and createstrong signals of change.Unattractive pay, lack of opportunities for advancement/promotion, poor working relationships, work life balance issues,and lack of challenging assignments are the top issues thatwould cause women surveyed to leave the manufacturingindustry. Company leaders should address these issues directlyand create a work environment that meets the needs of allemployees. It is important to identify allies, men and womenalike, to reinforce that gender gaps are not acceptable. Theyshould send clear signals, as well as set clear diversity goals, toall levels of the organization to drive compelling change. Doesyour organization have a 2020 goal for closing the gender paritygap and tackling diversity issues head-on?4. Drive organizational accountability.A common theme among executives interviewed is that theymust take the lead in driving organizational accountabilityaround increasing diversity and promoting a culture of inclusion.Strategies for tackling this challenge include not only settingclear goals, but also using analytics that assess and develop theorganization’s talent pipeline, including inclusion practices tomaximize all employees’ potential, fostering sponsorship of femaleemployees, as well as promoting continual personal developmentand challenging assignments. Having a rich data set to monitorif the individuals who bring unique strengths are thriving, andif not, making changes will help drive richness and depth toan organization. One executive cited incorporating impactstudies, not just for an annual report, but to address internallyhow their company can be more successful, and if they are not,discovering why not and what more they can do to drive change.5. Promote professional developmentWith women ranking opportunities for challenging andinteresting assignments as a top motivator for staying in themanufacturing industry— along with identifying and increasingthe visibility of key leaders who serve as role models foremployees as a top three impactful retention strategy—itstands to reason investment in personal and professionalcareer development can continue to build retention andadvancement of women. Additionally, more experienced womencan serve as sponsor advocates, undertaking sponsorees’development and professional progression, helping leave alegacy for both senior and developing women professionals.6. Define an aspirational brand.Leading companies know how to stand out when recruiting thebest talent by creating an aspirational brand for potential andincumbent employees to stand behind and become beacons thatattract. Companies can look to replicate these best practices bylooking inside-out and outside-in to define an aspirational brandrooted in diversity and inclusion values, and touting inclusionconsistently and widely. Engaging customers in the conversationcan help to build a workforce that truly reflects customerinsights and values. As one executive stated, "Manufacturingcompanies need to be willing to create a culture of beingcompared against the very best, not just in their sector. Thebest talent has a choice of industries to be in, and if a company’sbrand is not in line with areas they value, they’ll make a changewith their feet and leave that company and/or industry."7. Partner with the community.To address the manufacturing skills gap, employers must actearly to build America’s manufacturing workforce. A crucialelement is educating the community about the opportunitiesand dispelling any negative preconceived notions. Successfulcompanies address this by uniting with other employers facingsimilar challenges, then partnering local education and trainingproviders with purpose, aligning values to partnerships andcommunity action to maximize mutual benefit and supportbroader goals.21
Women in manufacturing ContactsAuthorsContributorsCraig GiffiVice ChairmanUS Automotive Industry LeaderDeloitte Consulting LLPcgiffi@deloitte.comTonie LeatherberryPrincipalDeloitte Consulting LLPtleatherberry@deloitte.comTrina HuelsmanVice ChairmanUS Industrial Products & Services LeaderDeloitte & Touche LLPthuelsman@deloitte.comMichelle Drew RodriguezManufacturing Leader, Center for Industry InsightsDeloitte Services LPmidrew@deloitte.comKatherine McClellandDirector of Education & Workforce InitiativesThe Manufacturing Institutekmcclelland@nam.orgRené StranghonerUS Industrial Products & Services Marketing LeaderDeloitte Services LPjstranghoner@deloitte.comBarbara MroczynskiSector SpecialistIndustrial Products & ServicesDeloitte Services LPbmroczynski@deloitte.comAJ JorgensonAssistant Vice PresidentStrategic EngagementThe Manufacturing Instituteajorgenson@nam.orgAcknowledgementsWe would like to thank the following professionals who have contributed to the Women in ManufacturingStudy and this publication: Stephanie Stachura, senior manager, Deloitte Consulting LLP; JordanVeliz, Manager, Deloitte Consulting; Bharath Gangula, former manager, Deloitte Services LP; JenniferMcNelly, President, 180 Skills LLC; Jennifer Proctor, director, industry content, APICS; Srinivasa ReddyTummalapalli, assistant manager, Deloitte Support Services India Pvt. Ltd.; Ankit Mittal, analyst, DeloitteSupport Services India Pvt. Ltd.; Karen Ambari, senior manager, Deloitte Services LP; Dave Portanova,senior designer, Deloitte Services LP; and Deloitte’s Womens Initiative (WIN).22
Women in manufacturing EndnotesEndnotes1.“2016 Global Manufacturing Competitiveness Index,” Deloitte and USCouncil on Competitiveness, 2016, veness-index-2016.pdf7.“Waiter, is that inclusion in my soup? A New Recipe to Improve BusinessPerformance,” Deloitte, 2013, clusion-soup-0513.pdf2.“The skills gap in US manufacturing: 2015-2025 outlook,” Deloitte andManufacturing Institute, 2015, html8.“Women on boards: Global trends in gender diversity oncorporate boards,” MSCI, November 2015, -4878-9c61-4eb91748a82b3.“Employed persons by detailed industry, sex, race, and Hispanic orLatino ethnicity; Labor force statistics from the Current PopulationSurvey,” Bureau of Labor Statistics, https://www.bls.gov/cps/cpsaat18.htm9.“Is Gender Diversity Profitable? Evidence from a Global Survey,” PetersonInstitute, 2016, 4.“Degrees conferred by postsecondary institutions, by level of degreeand sex of student: Selected years, 1869-70 through 2025-26,” NationalCenter for Education Statistics, 5 318.10.asp5.“Employed persons by detailed occupation, sex, race, and Hispanicor Latino ethnicity; Labor force statistics from the Current PopulationSurvey,” US Bureau of La
Women represent a vast talent pool Women constitute one of US manufacturing's largest pools of untapped talent. Women totaled about 47 percent of the US labor force in 2016, but only 29 percent of the manufacturing workforce. 3 Women earn more than half of all associate's, bachelor's, and master's degrees. 4 They are also advancing in their
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