Interview transcript

Terry Gerton You are involved with the National Electrical Manufacturers Association. We have heard a lot of talk about underemployment in the trades, the skilled trades, but NEMA makes the point that this kind of security, electrical security is like national security. Walk us through that argument and then we’ll talk about your specific programs.

Peter Ferrell NEMA — well, first let me introduce what NEMA is to your members. The Electrical Manufacturers Association represents about 300 or so companies, both large and small, that produce the equipment and components that go into many of other sectors throughout the economy, which include the energy sector, the defense industrial base, the water sector and others. Sectors that are really kind of, you know, on their own are important, but holistically really kind of make not just the economy function, but also our nation function holistically. And so our members from the grid side and the energy side make the components and the equipment that not only house — or excuse me — that power communities, that power warehouses, that power manufacturing facilities, but they also power defense applications from military bases and also provide the equipment for industrial military sector as well. So, you know, without those components, really there comes a gap for defense purposes and for energy purposes. And those two things of course are very interrelated. And so NEMA helps … Fill that gap with our manufacturers and the components and products they provide.

Terry Gerton What are the specific workforce challenges that you’re facing in the electrical manufacturing field?

Peter Ferrell So NEMA conducted a grid reliability study that was published at the start of this year. And it concluded that there were three main buckets of areas that were really driving energy demand. And this ties into your question, but for some context, with the growth of energy needs for remanufacturing purposes, for electrification purposes, for EV purposes, but also for AI and data center purposes, you know, there is this new demand for all of these products all of a sudden. And so, you know, to make those components, to make all of those things possible requires a very diverse and pretty skill-heavy workforce … And from a manufacturing perspective too, I want to just kind of emphasize it’s not just skills that involve, you know, folks’ hands in a factory — kind of that traditional old school way of looking at a manufacturing. A lot of manufacturing is automated, a lot of it’s connected systems … that require new age skills in terms of, you know, how do we scale manufacturing? And so the workforce needs in this area are very wide and very deep. And so we need folks that know how to wind coil, that can stack cores made out of electrical steel to make distribution transformers, a very kind of classic and traditional hands-on work, but we need folks that understand how to manage and operate industrial control systems, operational technologies, IT specialists, welders and other kind of more skilled, you would say, new age jobs. All of those things come together to form really what the modern manufacturing environment looks like. And so all of those jobs are very specialized and very unique, but really it’s kind of an all-of-the-above when it comes to the skill sets.

Terry Gerton And NEMA’s making the case that transitioning service members and veterans are an optimal target pool for you. Tell us about why you think that and what you’re doing to recruit them.

Peter Ferrell So right now NEMA is looking toward kind of implementing a program called, or pursuing a piece of legislation called, the Veterans Energy Transition Act or the Vets Act. And what it is is that it’s a piece of legislation, a bipartisan piece of legislation, that was introduced earlier this year by Representatives Jen Kiggins (R-Va.) And Chrissy Hoolihan (D-Pa.), both who are veterans themselves. And what it seeks to do is to really kind of bring the supply chain components of the energy supply chain to meet the workforce that veterans provide or that can provide. And so veterans have a lot of skills that they learn throughout their careers, especially lengthy careers, if they’ve been in for many decades. And so it’s a way of trying to, you know, seamlessly as possible, take the skill sets, whatever they may be, whether it’s in management, whether it’s in operations, whether it’s in logistics, just to name a few, and to bring those skills over to the energy sector to help meet the moment and fill the voids in those jobs and those many areas that I mentioned just a second ago. And so … We feel that veterans, of course, kind of play an important role and kind of have a really special element that they bring. They’re mission-driven, they’re team-driven. They look at things holistically ,but also, you know, in how they apply their skill sets. All of these things matter. And so for us, those kind of intangibles that kind of the military provides and, you know, develops and really instills — and not just workforce and values and things of that nature, but also in terms of how military service folks just view work, and kind of the meaning of work and why it’s important. We feel that that’s a very valuable intangible that, you know, when applied to the energy sector and to manufacturing, can really produce tremendous benefits, not just for the companies that hire them, but also for the communities that they’ll end up serving through the course of their work.

Terry Gerton I’m speaking with Peter Ferrell. He’s senior director of government relations at the National Electrical Manufacturers Association. We’ll come back to the legislation in a minute, but there are already a number of programs out there that have been put in place over the last couple of decades to support transitioning service members. There’s apprenticeships with unions in the industry you’re speaking of, right? Electrical apprenticeships and some of those. There’s Skillbridge, there’s transition programs from the veteran serving organizations and fellowships. Is NEMA engaged with those? And if you are, are they not working for you? Is that why you need legislation that proposes a new solution?

Peter Ferrell One of the organizations that NEMA is involved with is the Veterans Internship Providing Employment Readiness Program or the VIPER program. And … that program is focused mainly on trying to reduce suicides of folks that leave the military and then find themselves without the ability to kind of have any meaning in their life. And so really that program is meant to help marry up companies and folks who can employ veterans with those folks with those skill sets. So it’s a very complimentary kind of program to what the legislation is trying to do. But the legislation is proposed based on the folks at the Niskanen Center, which is a think tank here in Washington, D.C., identified not only that there was a workforce shortage to provide jobs in the energy sector, but that veterans provided really kind of this complimentary tool for it. But as you point out in your question, that there are many existing programs to help veterans prepare for the workforce. There’s the other side of that coin, which is how is it that we’re preparing companies to meet that workforce as they depart the service or, to help veterans who have already departed, or actually involve spouses in a way? So what this does is it’s an attempt to kind of incentivize and help companies meet veterans or transitioning folks where they are. Because it’s one thing to say, you know, a program has helped someone who’s transitioning out, learn how to build their resume, learn how to dress, learn how to conduct an interview, and then go to a job fair. But the question is, well, are the right jobs at that job fair? Where, you know, have there been incentives? Are they able to participate in those opportunities to meet those veterans? And so this bill would help kind of give the resources to especially small and medium-sized manufacturers that just make the right components and make the right pieces of equipment, but they just don’t have the budgets or the resources to really reach out to those members. This is really kind of, in a sense, helping, like I said, the other side of that coin — to help companies meet veterans where they are. And so, in a sense, [this] complements kind of the existing veterans transition programs like Skillbridge, like TAP, like Solid Start that are already on the books.

Terry Gerton In the interim then, while you’re working on the legislation with members of Congress, what do you want employers in this sector to know and what do you want transitioning service members and veterans to know? How can we bring them together while we’re waiting on the legislation?

Peter Ferrell Well again, there’s programs like the VIPER program, and to really kind of bang the drum around these issues and, you know, through great avenues through your program, for example, to let folks know that these things exist. I think … in some ways … there’s a lot of information out there and for a lot of folks it’s confusing. What do you listen to? You know, who are the best resources to rely on. And so really kind of emphasizing to not just employers, not just to manufacturers, but also to folks in this that do distribution and folks that are in the contracting world that, you know, there are a lot of companies that need this, that need this employment, that they’re good jobs, that they are, you know, in many ways, it’s the most American of things. It’s an American job that you’re getting, and they provide very well. And but there’s a need, and sometimes it’s a lack of just not knowing that these needs are out there. And so in the interim, getting the word out around the fact that the industry as a whole, from when a component is made, to how it gets delivered, to how it gets installed, all of those sectors need workers. But also that, you know, there’s 200,000 or so veterans that are leaving the service, retire for one reason or another about every single year. But, you know, according to statistics from VIPER, only about a quarter of those folks have jobs immediately after they leave the service. And so it’s, how do we ensure that folks are aware that there are willing participants that want to utilize the skills that have been developed over many years of service and to build upon those skills to, you know, help veterans or folks know that there is a place for a lot of those folks but making sure that they marry up and that one knows about the other and it’s making sure that that communication is out there.

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