Press Conference: Closing the Manufacturing Talent Gap in the US and Beyond

Description

Discussion at WEF 2026 focuses on workforce development, training initiatives, and solutions to reduce the manufacturing talent gap in the US and beyond

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Summary

At WEF 2026, a cross-sector coalition launched Smart Start USA to tackle a looming manufacturing talent crunch by reshaping both training and perception. Moderated by WEF’s Kiva Allgood, leaders from industry, labor, and state government aligned on a pragmatic thesis: the gap is not just technical, but cultural and systemic. With a projected 23% US manufacturing labor deficit by 2030 and severe retention issues (including “70% turnover in a factory”), the group aims to reach 1 million students by 2035 with adaptable curriculum and local partnerships.

American Federation of Teachers President Randi Weingarten framed the pivot as teaching “not just knowledge acquisition, but application,” arguing that hands-on learning is essential in an AI era and that students need “pathways” to living-wage jobs. Rockwell Automation CEO Blake Moret emphasized “lifelong learning,” exposing high schoolers to robotics, AI, and modern shop-floor tech. Governors Andy Beshear and Gretchen Whitmer highlighted policy levers—career and technical education investment, apprenticeships, community college affordability, and reskilling—to connect people to middle-class outcomes. ManpowerGroup’s Becky Frankiewicz urged a narrative reset: manufacturing is “purpose filled,” while credential barriers must give way to skills-based hiring. The message: shared responsibility, aligned systems, and stigma-busting can make manufacturing “cool again” and scalable nationwide.

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Transcript

Good morning. Afternoon. Depending upon what part of the world you're in. For those of you I don't know, my name is Kiva Allgood. I'm a managing director at the World Economic Forum and I am super excited about today's discussion and announcement. So I am joined on the stage immediately to my left by the CEO of Rockwell Automation, Blake Moretz. And next to him is Randi Weingarten, the president of the American Federation of Teachers. And next to her is Becky Franco, president and chief strategy officer for manpower Group. Next to her is Randi Beshear, governor of Kentucky, the Commonwealth Andy Beshear, Andy Beshear, sorry.

And I do like Randy.

Randy, Randy, Randy, Randy I'll get that right. That's on record. I just did that wrong. And next to him is, what is Gretchen Whitmer, governor of Michigan. So super excited to be here. It was about a year ago that three of us sat on the stage together. And what we're here to talk about today is a little bit, about education, but also about transforming the way people think about manufacturing and supply chain and really trying to ensure that people think about it as a noble, a noble role. It's a key part of industry. It's a big part of industry transformation, and it's a big part of GDP and the economy. So we're excited as a collective to inspire young people. I think that's the number one mission of the group here today around that noble career and the craft that's behind it, which is sadly been lost. So we were reflecting a little bit, some of us, that when we were in high school, we all got to go to shop class and we all got to do these, learn how to work with our hands and we haven't we don't see that much anymore. And so a big part of this is one to inspire the youth around the beautiful part of the craft, of manufacturing things. And this is the World Economic Forum. So we always have to start with a few little stats. Right. So it's estimated that by 2030, the US manufacturing sector will face a 23% labor deficit in manufacturing and against the World Economic Forum's jobs report, 78 million new jobs will be created in the next few years. So it's also about ensuring that students that are graduating from high school have that right skill set as well. So that's a key component of the discussions that we've had. So this mismatch in labor coupled with the difficulty to attract and retain. So we've heard stories of 70% turnover in a in a factory. Imagine that. So trying to drive productivity trying to attract new youth in when 70% of them leave after a very short period of time. So we've brought together a very, broad and diverse group of voices, many of whom are on the stage. Governor Beshear was in the initial discussion. Randy was in that initial discussion. But since then, we've brought in industry partners such as Smithsonian education, NASA folks that really are experts first robotics and helping inspire kids to think about science and Stem in new ways. We've also brought students into the discussion. What are they looking for? So this has been a year long journey with over 60 different partners to really figure out what should be part of this core curriculum. This is a catalog. Every state is different. So this isn't a prescriptive thing. This is an inspirational thing to really figure out. How do we help students work together in groups? How do we inspire them to actually like, you know, think about our career in manufacturing and supply chain. So we've aligned on three things. One is the education for real world industry needs. So this is the first time really that we've been able to collectively. So we've got amazing examples from partners that have been able to execute programs independently, but they haven't necessarily come together collectively. So we have right across the industry and said these are the things that we need as an industry. And that's the power of dialogue, right? Bringing all those voices together, then blending classroom needs with hands on, like really giving them projects and making sure the curriculum talks to that. And then last, it shifts the perception of manufacturing. What's cooler than being a robot operator, right? What's cooler than managing a fleet of robots? What's cooler than being a technician that gets to really help save lives because the products at the end of them do exactly that. So that's the inspiration we're trying to bring, and that's our ambition as a collective in a group. So, the ambition and plot of Smart Start is to reach 1 million students by 2035. So now that I've laid the course there and set that ambition, I'm going to share the floor with the people who are behind that journey with me. And first, I'd like to turn to Randi Weingarten.

So, we're honored to be here, for any number of reasons. If you had told me 5 or 10 years ago that I would be at the World Economic Forum announcing a Smart Start curriculum with business owners, I would say, okay, I would see myself doing this with governors, but with business in Switzerland doing this, I would have said, what are you drinking? But the point is, it does take a village to actually create and recreate and re-envision, a, a society that works for all. And manufacturing is a key component in that society. And education is a key component in that society. So, and, and in this era of AI, what we have to do in terms of education is we have to think about how we teach young people how to think. And in many ways, the old programs of shop actually in, in, in helping kids learn how to work with their heads and their hands actually did more than sitting in a classroom with academics because it was the application of knowledge. It was not just knowledge acquisition, but application. And in this world of AI that's required. So part of what we're trying to do here is say, how do we create this partnership between education, labor, government and industry with the goal of creating these pathways so that kids, when they come out of high school or they come out of college, don't have to start saying, what am I going to do next? The pathways become important. And to create those pathways, you also have to create a curriculum and you have to create this engagement with each other. And the last thing I'll say is this when you do it, we in the United States of America, we have 16,000 school districts. We have over 100,000 schools. There are industry partners all over. And you were the one who said you can't keep on doing this industry by industry. You're the one who said you can't keep on doing this, governor, by governor, how do we use the Weaf to create this kind of integrated network so that we're all working together so that kids can have from high school on opportunities to have jobs that pay a living wage so that they can feed their family and nurture their family. And that is what happens in advanced manufacturing. So I'm honored that we are part of the creation of that curriculum and we are all in.

Thank you so much. I couldn't have said it better. I think your energy and commitment is also, something that was an inspiration in that discussion. So I think, Blake, you started off as a young engineer, you and and and Rockwell is, I'd say, the foundation, the bedrock of automation in the United States. You've got a long history of ensuring that you inspire kids. You've done great youth programs in different markets, and now you're committing to also helping spread that, that, that energy. So tell us a little bit of why you think Smart Start is the right way for industry and the next path forward.

Oh, happy to Kiva. This is an exciting moment because as I talk with manufacturers around the country of all sizes and in different industries, I think there's a common thread in the jobs of the employees in these companies. They want to know what they do is important. They want to have the training and the support to be able to do a good job. And they want to be able to progress. They want to know that there's a prize there. And what we're talking about today is a really important part of that middle piece. The training and the support, the importance of manufacturing, I think is, is so well understood that manufacturing is at the vital core of the economy. We saw it during Covid and supply chain shortages. What happens when we don't have manufacturing and supply chains that work, but to be able to have a workforce that can interact with the technology is so important. And that's what Smart Start is all about, because it feeds this concept of lifelong learning. This is for high school kids to acquaint them with the type of applications and the cool technology, including artificial intelligence and robotics. All the tools today that help manufacturers in the U.S. be able to compete and win against the best around the world. And it's also lifelong learning that can start in high school and move into, you know, later stages of life. Whether or not that kid plans to get a college degree or not. And then finally, and we see this in programs that are already existing for workers who are a little bit further along in their career or program that we started with Becky at. Manpower for Returning Veterans shows the kinds of wages that technicians who get those hands on skills from things like Smart Start can command, and the way that their careers can really take off. So it's an exciting moment.

Thank you. And I think it's the dedication, Andy Kentucky has done an amazing job on the technical side. You've also brought a lot of manufacturing to the Commonwealth, and you were part of the original discussion, and you challenged industry in that room, saying that that you need to be part of this. You need to share with us what you need, and you need to make commitments as well to those students on the other end after they graduate, need to work better on certifications. So I think it was your voice and your inspiration. That kind of kick started us off. You were honest with us. What what what states needed to do. You had a strong voice. Explain, I think how do you see smart start supporting the students and the communities of Kentucky?

Well thank you, Kevin. Thank you to the World Economic Forum for not just hosting us to have a discussion, but saying we're going to do something now, moving forward in the next year, we are going to develop a model. We're going to develop policy. We're going to try to make sure that the ideas that are discussed here are actually put into practice and, and better the United States and hopefully better the world. I think about how in the United States, we live in a country that has the biggest economy in the world, with the strongest and most innovative industrial base and the deepest pool of capital for investing in our future. I'm proud of the fact that Kentucky has been a leader in the growth of our national economy. This past year, we announced 10.5 billion in new private sector investment in the creation of nearly 9600 new jobs. That's the second best year in the history of our state. And it means since I've been governor, we've had the first, second, third and fifth best years on record. We've also made sure these jobs are good jobs, with the highest three year average of wages that we've ever seen. Last year, our average incentivized wage wages for new jobs was just under $30 an hour. We've done it by prioritizing speed to market, ensuring businesses have a dedicated project manager to help them succeed. And now we've added a dedicated workforce management team to work with companies to understand their needs and to make the connections with the different pieces of workforce development so that they can create a pipeline, not just fill jobs, but know how those jobs are going to be filled 4 or 5 years down the line. We bring the right workforce programs and services to our companies on their own terms. But often on sunny days, there are storm clouds on the horizon. Bad tariff and trade policy are impacting our national economy. Slowing or pausing. Many projects in some states are shedding both investments and jobs. Sadly, too many families across our country feel that that American dream is unattainable, and the and these challenges are creating rising costs that make them worried whether they can even pay the grocery bill at the end of the month, much less take their kids on that vacation that they went on. As children, we have a responsibility as leaders to reignite and refuel that American dream. It's something that makes the United States so exceptional. That starts with a good job. And one of the ways we make sure that our jobs are the best is empowering a future workforce. Smart start has a vision of preparing 1 million young people for future jobs in manufacturing and supply chain. By 2035, it looks at best practices across five states, including Kentucky. It takes a collaborative approach between state and local policy makers, as well as private sector initiatives, and not for profits. Smart start allows for the best programs and initiatives not just to be created, but to be actually implemented, and it creates a process that will deliver results. A foundation of Smart Start of Smart Start is that shared opportunity can only be achieved through shared responsibility. That government can create these good workforce development programs. We can work with our community colleges, but the company has to walk through that door, establish that relationship and make sure they're taking advantage of that program. Kentucky is taking responsibility, and we've taken action. We've invested $250 million in career and technical education, renovating our high school programs to have the newest practices and the newest technology. We've now seen a 131% increase in our apprenticeship program, meaning more skills are being taught than ever before. We're removing barriers to get your GED by waiving testing fees and just waving a $200 testing fee has made an enormous difference of helping folks that had a barrier that couldn't get beyond to achieving that next major step for their family. We're also participating with business leaders for more reentry programming, knowing that when we help those that are transitioning from jail or prison back to life, and they can get a good job where they can succeed, they don't commit future crimes, and our communities are safer. And we're also pushing what I think is one of the single most effective ways to to set your future workforce, and certainly our state up for success. And that's by advocating for pre-K for all, for all Kentucky four year olds. The numbers just in Kentucky say, if we can get pre-K for all four year olds, we'll increase our workforce by 70,000 people. That's in a state of 4.4 million. And so while some look over and overlook programs like that simply by helping our families, simply by making that a little more affordable, we not only help our children not fall behind before they started, but to really succeed in the future and for their parents to succeed. These efforts are making our workforce stronger than ever before, and I think it's something that every state can achieve, especially if we work together. I appreciate the opportunity to be a part of this. I look forward to working collaboratively in the years to come and making a big difference. Remember, we have a million people, a million young people, set and ready and skilled for manufacturing and logistics. They're going to live good lives. They're going to be able to pay their bills. They're going to be able to buy that house that seems unaffordable right now. That American dream will be possible for them.

Well said. As a former working mother of, with two young children, all of those things matter, right? To the lives of people in each of the states. And now I'm going to turn it over to the governor of Michigan, Gretchen Whitmer. So Michigan history long, you know, it's the advanced manufacturing capital in the US. And you've done a lot, with regard to education as well. And I'd love for you to share your thoughts on how Smart Start can really continue to to mobilize the workforce in Michigan.

I'm really excited about this, and I appreciate all the effort that's gone into it and the partnerships that have been built to make this successful, because I think we are we can do this, but we're only going to be successful doing it if we work together to make sure that we accomplish our goals. You know, the state of Michigan is proud of our history in manufacturing. People came from around the world for a good paying job on the line and one of our auto factories, and it got you right into the middle class where you could live a high quality of life. And and it's been a source of pride and a big part of who we are in Michigan. But right now, we're facing a shortage of workers that we need to build the things that we all rely on, from ships to chips to cars and homes. We need young people to learn skills and land good jobs and have great, affordable lifestyles and live the lives that they want to. And all of that is possible. There are great opportunities in manufacturing, but I think we are hampered by old notions of what it looks like and what the skills are to to get into these great jobs. So I'm really excited about Smart Start USA, because it's going to connect a million young Americans with opportunities and help us build the things that we need. Our my Department of Labor and Economic Opportunity Director, Susan Corbin is serving on the international board, and Michigan is all in as well. So, you know, as we explore options to do more in this space to bring Smart Start to Michigan, we're going to continue to do our part at the state level. It has to be an all hands on deck and an all all ideas welcome moment. I think through career and technical education for ninth through 12th graders, something that we are doing as well as the community college guarantee to eliminate the cost so that everyone has an opportunity beyond high school to get a certificate or some sort of a degree. And the Michigan Reconnect, something we're now offering to everyone 25 and up to reskill, and the Michigan Manufacturing Initiative, something that we created so that we're shipbuilding again, because those are skills that are desperately needed, homeland security on all fronts that are have been atrophy. So this is, I think, a moment where smart start is really crucial and can help close the global manufacturing skills gap. So it's not going to be fast. It's not going to be easy. But this is definitely a task that we are up to. And we are all in because I think this is the kind of effort that is, is overdue, much needed and I think is going to produce real results and give us the, the skill sets that, that we need. Thank you.

Thank you. And, and we're going to turn it back to industry. And I think this is a the best last voice I'd say, because she's the one that often industry comes to and says I need to hire all these people. Where are they? And then she'll go and she'll have the conversation with the state. And I think the most important thing that I've heard so far is it's a team sport, right? But I think also being really crystal clear and articulate, and we now have a list of the things that industry says they need. I need someone who can make eye contact. I need someone who can collaborate with other people and building those types of things into projects. I'd love to just explore that a little bit with you, Becky, from the standpoint of you get the big ask, find me the people.

Yeah. So first I want to go back to something Blake said that I think is an untapped benefit of manufacturing. We have a generation coming that wants purpose in their work, and manufacturing is purpose filled. And so instead of talking about you're right, you're right, governor, on, you know, do people want to do the jobs? These aren't your grandfather's or grandmother's manufacturing jobs. These are modern, technology fueled jobs, and they're filled with purpose manufacturing powers, communities. It powers families. And fortunately for all of us, it puts it, puts food on the table around the world. And so that's where I would start. I think we need to talk about ourselves differently in the pride that comes from the impact that we have with our hands and with our hearts, so that I think we need to talk about. That would be the first thing I would say. You know, yet manufacturers in the headlines and it's not always in the headlines for its purpose. We see every day something around talent shortage, which this governor mentioned as well. We see the threat of AI and automation, which we haven't touched on here. And so the headlines are taking, taking control of the narrative. And I think we need to step back and say, okay, behind each of these facts is a human. And these humans are trying to figure out what these headlines mean to their work, to their families, to their futures. And the data is stark. You know, we talk about the million, which we're very proud to be part of at Manpowergroup, very proud of the Smart Start initiative. But when we talk about the million, there will be in the U.S. alone, 3.8 million jobs needed in manufacturing. And the talk is half of those could go unfilled half. And you're right, I get the call that says I need 10,000 of this type of person. Welders, offshore welders, electricians, carpenters, all in, in great demand. And so the question becomes, you know, what do we do? What do we do with the threat of AI? And yet the data on AI paints a different story. Almost 70% of companies that that we've polled say they intend to hire more with AI. Now we no one can read the future, but that's the intention, that's the tone. And only 20% of companies that have reduced their workforce site automation. And so we need to eliminate the distraction and move forward. And we would say in in two areas, one is a barrier and one is an opportunity. So the barrier we have to redefine credentials. So we talk about, you know, college degree or non-college degree friends. It's irrelevant. It is about what you can do and what you can learn, not what you have done. And we as employers who sit here in support of this initiative and educators and governments, we need to redefine how we're thinking about credentials and reduce that barrier. The second area is alignment. We've touched on it, but think about alignment. Today. We have employers, we have government, and we have education all running in parallel streams. No one is converging. And it's quite ironic, right, because the employers know the skills that are needed. The governments actually can break down barriers and the educators know how to teach. And yet we're all running at this problem in silos. That's the thing we're most excited about. And so, Randy, it was disheartening for me to hear you say you'd be surprised to sit with business. So welcome to business. We're pleased to sit beside you. We can't succeed without you. And and vice versa. But we believe we need to eliminate barriers and then drive alignment to actually get this pipeline, starting with the million. And I hope we triple that between now and 2033.

Well, I think the spirit of collaboration that was so well said. And I think it is that's the power of dialogue, to be honest with you. It started with a dialogue and probably a swift kick in the in the backside, and then us bringing and pulling together very different, diverse voices over the last year, we have 60, but we've had hundreds of folks with different skill sets and capabilities that are experts. I will open it up to a few more comments here. We don't have enough time for questions, but I would love to to give each of the folks up here a chance to say something.

I think something that that was mentioned before, just to emphasize the importance of an overall program that can fit a variety of situations across the country. But it's important to build local networks so that the jobs that are created are right for the skills that are created, are right for the industry that's concentrated in that local area. These students need to see that the skills that they're obtaining are right for that enterprise that's just down the road, because a lot of them are going to want to stay close. And so having those partnerships that have a local component as well as national scope that we're talking about today is really important.

So I think the one of the reasons I started the way I started is because this is about busting stigma and busting stereotypes. And I think, Becky, you just said that as brilliantly as anyone I've ever heard. And the, the, the, the work that can happen because of Weaf, because of a national or international organization that starts seeing all of this, is you help create these partnerships that break down barriers. And and we we can have an idea in a school or in a district that says, let's try this. Or we could go to a governor like Governor Whitmer, Governor Beshear, and say, why don't we try this in Detroit or in Flint or in Lexington, New Lexington, but then it's not. Or why don't we try it with micron like we did in New York with ten school districts with and but if we don't actually think about this as a huge endeavor, 1 million kids go looking at manufacturers across the nation, governors, Republican and Democratic alike, across the nation, dealing with the in school versus out of school manpower issues and needs that we used that we used to think, oh no, this is in school. This is out of school aligning the guidance counselors. But I would say one of the things that I'm most excited about is that we need industry to be at the table with us, because without the pathways to jobs, to apprenticeships, young people these days will see it as an empty promise. So I'm really excited to be with all of you because it does break down all of the barriers and creates opportunity 100%.

Yeah, I would say, the future of manufacturing is and will in large part continue to be human. And so we need to deal and address the humanity of manufacturing and again, make it make manufacturing cool again.

Yeah. Exactly. Right.

I think breaking the stigma is so critically important. And that means when we create our, acts or our career and technical education that we need to have nursing students, welders, robotics students all working side by side cheering each other on because every single one of those jobs is is so important. And then I really love the comment on on parallel tracks that aren't converging. I think what that takes is not only a commitment to it, but getting rid of that not my job type of thought process. That, that education can't say. Well, curriculum is our job, not my job to connect them with an employer. The employer can't just say I manufacture this. Good. Not my job to walk into the school system. Government can't say, well, our job is to get that new business in or help them expand. Not my job to to to get them the workforce. I think it's all of us overlapping. And sometimes that's going to be a little duplicative, but I think that's okay. It means that we are vested and we will get the better outcome for it. But but everybody hustling, knowing that this is a challenge and putting in the work, I believe that a shared responsibility model can give us our best results that we've seen in my lifetime, at least.

Awesome. Governor, why don't you take us home?

I'll just try to wrap it up by just saying. You know, I think that there's so much potential in manufacturing. There's so much need when you talk about making manufacturing cool again, I love that because there is so much opportunity. And yet a lot of young people or people in the middle of their lives don't have any idea of what's possible and how we're going to make it easier for people to find their path and to live life that that they want to on their terms, and to be able to take care of their family and and live that dream, through, through opportunities in this field without incurring a lifetime of debt in the process. I think there's so many opportunities here, and I'm really excited about this work.

Well, thank you everybody. Appreciate it.

Thanks.