For decades, the strength and prosperity of the middle class have served as the catalyst for our country’s long-term economic success and the hallmark of the American dream. The level of broadly shared opportunity for all citizens has been a beacon of hope and, until the recent global recession, was largely unrivaled among other advanced economies. As middle class job growth and median income wages have stagnated, the search is on for ideas about how to restore vitality to our country’s core.

A recent study by the Brookings Institution suggests that a renewed focus and sustained investment in strengthening America’s advanced industries — a sector that has historically been the bedrock of our nation’s economic engine — is key to revitalizing our middle class, improving our standard of living, and helping our country to remain competitive with the economic growth of our foreign counterparts.

Last month we provided our thoughts and analysis on the report from more of a 50,000-foot level, in our post titled, “America’s Advanced Industries: The Backbone of Innovative, Sustained Economic Growth in the U.S.”[WK1] , examining how the advanced industries sector is driving growth and prosperity on a national level vs. what is happening here at home in the Warm Springs Innovation District. This week, we’ll take a deeper dive into the impact of a recharged STEM careers pipeline and workforce training programs in extending broadly shared opportunity on both a national and local level.

Here’s a snapshot of the high-income and growth opportunities and challenges around STEM careers both nationally and locally:

  • Workers in advanced industries are extraordinarily productive and generate some $210,000 in annual value added per worker compared with $101,000, on average, outside advanced industries
  • More than half of the sector’s workers possess less than a bachelor’s degree, making the sector more broadly accessible than other industries. The exception to this rule tends to be in biotech professions, where a four-year degree or higher is often required. However, the broader biomed supply chain still offers abundant opportunity for “middle-skills.”
  • Overall, the U.S. is facing a labor supply shortage which is only being exacerbated by globalization and technological advances. The complexity of required STEM skills is increasing, while our ability to keep up with the pace of change is lagging behind.

Anecdotally, this shortage rings true in Silicon Valley, even though the San Jose region is known as being one of the most successful advanced industry hubs. While engineering grads pump out of our Bay Area universities (Stanford, Berkeley, Santa Clara and SJSU), we struggle with the “upskilling” of workers that support Advanced Industries. These workers are defined in the report as “skilled technicians that produce, install, maintain, and repair the products and machines …” allowing firms to “create process innovations and enhance productivity.”

In Fremont, our companies and educational institutions are working together to help bridge the skills gap in this area. Here are a few examples:

– Biotechnology, A.S. Degree: methods and techniques used in biotechnology

– Short, non-credit, hands-on workshops for industry employees who need to enhance technical skills; over 1,500 employees have been trained

– Five certification programs to teach students various protocols in manufacturing, statistics, and laboratory skills found in biotechnology

– Coming in 2016: an A.S. Degree with a focus on Bio manufacturing

  • DeVry University’s Fremont campus reflects the business environment with these programs:

– Biomedical Engineering Technology Degree: Combines traditional engineering expertise with an understanding of biological processes emphasizing collaboration with physicians, therapists, and other technicians in the design, construction, implementation, and maintenance of sophisticated healthcare equipment and lifesaving devices.

– Renewable Energy Degree Specialization: Enhancing a degree with this specialization provides a strong engineering technology and electronics background, as well as the understanding of renewable technologies and alternative power sources.

In our final installment of the series, we’ll be discussing the future of America’s advanced industries, and why collaboration at the local/state and regional level is essential for the revitalization and growth of this critical sector. Stay tuned!