Marine Insurance
Labor Shortage
Spelling Trouble for Industry & Insurers
By Rich DeSimone
The captain stationed at a huge wooden wheel, throwing his bodyweight against the spokes during stormy weather, is a familiar sight from old seafaring movies. But today when you walk on to a new tugboat, tractor tug or supply vessel, no wheel dominates the deck. Instead, sophisticated electronics are everywhere. What once took brute strength now requires nimble thinking and technical training. The transition to the age of technology has no doubt made work boats more efficient and capable. But it has robbed much of the romance from a job that used to attract adventuresome youth and maturing wanderers. In addition, it is a development that has put the shipping sector in the same bind that much of American industry faces when it comes to skilled labor: There isn't enough to go around. And that's a concern, both for vessel owners and insurance companies. Uncharted Waters The topic comes up almost any time vessel operators gather together. They are struggling to hire qualified seamen today, and the pressures of increasing shipping activity are likely to only make the situation worse in the future. Marine training institutes cannot grow their programs fast enough to produce the needed workers, and the age-old method of creating seasoned sailors from deckhands through on-the-ship experience takes too long. It's a conversation that would sound familiar to America's manufacturing and trade organizations, whose members complain of sifting through hundreds of applications to find the one or two people qualified to perform work that used to be done by high school graduates. Some see the problem as schools that are no longer focused on educating for work in the various trades, but instead are pushing college preparation for all.
Earlier this year, California's Governor Arnold Schwarzenegger held a summit to encourage schools in that state to focus on what is now called career technical education, both as a way to fill the jobs of the future and to keep restless youth who want no part of college from dropping out of high school. There were several telling statistics that emerged from the summit: � In 1960, 60 percent of workers hired by manufacturers were unskilled. Today, with jobs increasingly demanding higher levels of technical capability, only 15 percent of positions can be filled by unskilled workers. The remaining jobs require some level of post-high school skills and training. � By 2014, California estimates that it will need an additional 25,000 electricians, 11,000 machinists and 250,000 production workers - just to name a few categories of skilled labor shortage. � Today, many employers invest heavily in training the workers they hire. For example, shipbuilder General Dynamics NASSCO reports devoting 600,000 to 700,000 man-hours a year to training. How does all of this relate to vessel operators and boat owners? It tells us that the problem will only get worse. Other industries are competing vigorously for those who choose not to seek a four-year degree. If the maritime operators do not look ahead and formulate a plan of action, they will find today's limited pool of workers growing even smaller. Not Just an Industry Problem Why should the insurance companies care about the labor woes of the maritime industry? Because our success is directly tied to the fortunes of the vessel
Getting docked is just the beginning
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November 2007
57