Honda s Technical Workforce Development Initiative

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Honda s Technical Workforce Development Initiative CSG Policy Academy on Career Pathways Scot McLemore Honda December 10, 2015

About Honda 29,500 11 14 Manufacturing R&D Honda Facilities Associates and Acura in plants America in Dealerships manufacturing, the U.S. the R&D, U.S. Automobile, sales and other powersports, operations power 1,300 equipment) Honda Models and designed Acura vehicles in U.S. Honda sold in and the Acura U.S. were car and manufactured light truck models in North that America have 153,000 90% 25 (the been Jobs most provided researched, of any by international American designed, Honda and auto developed Dealerships manufacturer) in the U.S. since 1991. $2.2 Billion Honda s U.S. payroll

#3 01/01/06 Honda Operations in Ohio East Liberty Auto Plant Honda Transmission Manufacturing Honda R&D Americas North American Purchasing Anna Engine Plant Honda Engineering North America American Honda Troy Honda North America American Honda Marysville Performance Manufacturing Ctr Marysville Auto Plant

Honda s Manufacturing Workforce Positions Percent of Honda Mfg. workforce Production Associate 88% Degree requirement: High school diploma / GED Honda Manufacturing Opportunities: Casting, Machining, Forging, Engine Assembly, Stamping, Plastics, Welding, Paint, Assembly, Vehicle Quality and Material Service Perform various functions depending on department manufacturing characteristics including equipment setup, part installation and quality confirmation 6% 6% Production Associate Manufacturing Engineer Manufacturing Technician Manufacturing Engineer Degree requirement: Four year technical degree Honda Manufacturing Opportunities: Equipment, Process, Quality, New Model *These functions are in each of Honda s Mfg. departments Responsibilities include: Equipment design and integration Process analysis and design Quality analysis and problem solving New model vehicle and equipment introduction Manufacturing Technician Degree requirement: Two year technical degree Honda Manufacturing Opportunities: Casting, Machining, Forging, Engine Assembly, Stamping, Plastics, Welding, Paint, Assembly, Vehicle Quality Responsibilities include: Perform Equipment preventive maintenance Troubleshoot equipment breakdowns Communicate equipment issues to team through written and oral methods Maintain trouble reports and perform analysis

Current Situation and Risk From the 2011 report: Boiling Point? The Skills Gap in U.S. Manufacturing: About 600,000 high-skilled U.S. manufacturing jobs are going unfilled. A survey of U.S. manufacturers indicates: 70% Believe a highly-skilled technical workforce is most important factor to business success over next 5 years. 75% State that aging workforce & expected retirements have greatest impact in skilled technical areas and skill shortages have negatively impacted plans to expand operations or improve productivity. From the 2012 report: Leadership Wanted: U.S. Public Opinions on Manufacturing: Americans view manufacturing as fragile and unstable. Americans want manufacturing jobs in U.S., but only 35% would encourage children to pursue such jobs. Americans lack confidence that schools can provide the necessary skills and career guidance required for technical roles. From the 2014 NAM Survey: More than 80% of manufacturing executives report skilled worker shortages. From the U.S. Department of Labor: Average age of U.S. high-skilled manufacturing workers is 56 years. Percent of manufacturing workers 55 and older has significantly increased and by 2020 the pending wave of retirements is expected to create a shortage of highly skilled technical workers of 875,000. From the Society of Manufacturing Engineers: The shortfall of skilled manufacturing workers could increase to three million jobs by 2015. From the Georgetown University Center on Education and the Workforce: 64% of all jobs in Ohio in 2020 will require some postsecondary education; Currently, only 37% of working-age adults have a two-year associate degree or higher. By 2020 53% of the 10 million projected manufacturing jobs in the U.S. will require some postsecondary education.

Regional Strategy Honda Ohio Companies Honda of America Mfg., Inc. (Marysville, East Liberty, Anna) Honda Transmission Mfg. of America Honda Engineering North America Honda R&D Americas (support) Partner Two Year Colleges: Rhodes State College Edison Community College Clark State Community College Sinclair Community College Marion Technical College Columbus State Community College Regional High Schools and Career/Technical Schools (Ohio - Local) Share strategy with other North American companies (U.S. operations)

EPIC Initiative Announcement March 20, 2015 EC C Excellent Careers Earn a great livelihood doing challenging work that you really enjoy! Continuous Commitment of technical associates and experienced workers to continuously enhance capabilities. I Innovative Instruction of two-year technical students to provide real life learning to be job ready in short order. P Passionate Participation of high school and technical vocational students to apply basic tools and fundamental practices. E Enthusiastic Engagement of middle school students to create interest in manufacturing and advanced technologies.

E Honda s EPIC Initiative Enthusiastic Engagement of middle school students to create interest in manufacturing and advanced technologies. Online Manufacturing Educational Game Partnered with Ohio based Education game developer Edheads Role-playing and introduction to manufacturing and problem solving Launched March 2015. Nearly 60,000 game plays to date.

Honda / Edheads Manufacturing Technician Game

P Honda s EPIC Initiative Passionate Participation of high school and technical vocational students to apply basic tools and fundamental practices. Marysville STEM Early College High School Launched August 2014 in renovated Marysville middle school building. Total of about 300 students currently 9 th and 10 th grades (80 students committing to the Manufacturing pathway) Design and implement a manufacturing curriculum track for students enrolled Provide technical expertise on curriculum content, selection of hands on lab equipment, layout of learning space and selection of Manufacturing Pathway Technical Instructor.

Honda support of the Marysville Early College High School

I Honda s EPIC Initiative Innovative Instruction of two-year technical students to provide real life learning to be job ready in short order. SME Education Foundation (Honda Excellence in Mfg Scholarship Fund) Scholarships established for students pursuing an Associate of Science degree in Manufacturing or Mechanical Engineering Technology from local college institutions (Rhodes State, Columbus State, Marion Technical, Edison Community, Sinclair Community, Clark State). $2500 per award (2) per school total of 12 scholarships ($30k annually) U.S. citizens only Minimum GPA of 2.5 Entering freshman or current college student

I Honda s EPIC Initiative Innovative Instruction of two-year technical students to provide real life learning to be job ready in short order. Expand Honda Community College Technician Work Study model Piloted a work study program with Columbus State college creating a pipeline of students from the Worthington school district Project Lead The Way STEM curriculum Coordinate program expansion with local college consortium partners (Rhodes State, Marion Technical, Edison, Clark State and Sinclair) and their feeder high schools/career Centers

Honda / Columbus State College Work Study Program

C Honda s EPIC Initiative Continuous Commitment of technical associates and experienced workers to continuously enhance capabilities. Honda Technical Development Center (Internal training) Plays an important role in providing advanced technical training for key manufacturing and equipment service processes. Is part of Honda s ongoing investment in our associates as they develop the operational and equipment maintenance expertise necessary for the high-tech machinery utilized in our manufacturing settings. Builds on skills and knowledge previously acquired Local Education Partnerships (External training) Partner with local colleges/career Centers to determine effective methods of providing additional learning opportunities for associates that is easily accessible

Questions / Discussion