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Indiana’s push to build up high-tech manufacturing is great. But the labor pool is very different for high-tech manufacturing than it is for the low-tech manufacturing that large swaths of Indiana’s workforce has depended upon for so long. High tech manufacturing brings in huge investments, but the number of jobs per dollar spent is relatively low and the jobs require relatively high education attainment. Practically, it means that those who are out of work in low-tech manufacturing – an industry that continues to decline – will fall back to warehouse work, which is lower paying industry than low-tech manufacturing.
That’s not to say that The State should stop trying to attract high-tech manufacturing; it’s great for The State. But all of the money that IEDC spent on attracting low-paying logistics companies would have probably been better spent on education.
1.) High-tech manufacturing can only grow as fast as the educated workforce grows
2.) No matter what the education attainment distribution of the workforce looks like, there will be many on the low-end of it. Even if we don’t change the shape of the distribution, we need to shift the distribution forward such that people coming out of high school can do better than low-paying logistics work.
What if, instead of subsidizing so many warehouses over the last decade or two, that money went towards:
-> Ensuring that students who are interested in “the trades” get their apprentice work done in high school (which is different than forcing more education in “the trades” than students are interested in).
-> Ensuring that students who want to go to college can spend their senior year entirely at Ivy Tech (a lot of developed countries with education systems better than ours already do the equivalent of this).
-> Increasing industry internships available for high school students.
AND
-> any other similar thing to boost education the low end of the education attainment distribution
In the future, we should make a point of funding such things.