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ROB MCCLENDON: WELL NICK PINCHUK IS THE HARVARD EDUCATED CEO AND CHAIRMAN
OF SNAP-ON INCORPORATED, AN S & P 500 COMPANY VALUED AT CLOSE TO THREE
BILLION DOLLARS.
SO IT MAY COME AS A BIT OF A SURPRISE THAT PINCHUK BELIEVES THAT AS A SOCIETY
WE'VE PUT TOO MUCH EMPHASIS ON COLLEGE DEGREES SPEAKING TO
MEMBERS OF THE GOVERNOR'S BUSINESS ROUNDTABLE, HE TOLD STATE LEADERS THE
AMERICAN DREAM IS BEING THREATENED BY THE MISTAKEN BELIEF OF WHAT IT MEANS TO
BE A SUCCESS IN TODAY'S AMERICA.
NICK PINCHUK: WE ARE NOT AMERICANS BECAUSE WE HAVE A COMMON ANCESTRY.
WE COME FROM ALL OVER.
NOR DO WE SHARE A PARTICULAR RELIGION.
ALL FORMS OF WORSHIP ARE PRACTICED HERE NOR EVEN A SPECIFIC GEOGRAPHY, THE
MAP OF AMERICA HAS CHANGED AS MANY TIMES AS THE STARS ON A STATE.
AMERICA IS AMERICA BECAUSE WE ARE BASED ON IDEAS AMERICANS ARE AMERICANS
BECAUSE WE HAVE CERTAIN BELIEFS, AND AMONG THOSE MOST IMPORTANT IS, WE HOLD
THESE TRUTHS TO BE SELF EVIDENT THAT ALL MEN ARE CREATED ARE EQUAL AND
ENDOWED BY THEIR CREATOR WITH CERTAIN INALIENABLE RIGHTS AND AMONG THESE ARE
LIFE, LIBERTY AND THE PURSUIT OF HAPPINESS.
AND I WANT YOU TO CONCENTRATE ON THE LAST ONE, PURSUIT OF HAPPINESS.
AND WHAT THE FOUNDERS MEANT WITH THAT WAS, PROSPERITY; THE MIDDLE
CLASS; THE AMERICAN DREAM.
AND SO IT WAS, THE IDEA OF AMERICA PURSUING THE AMERICAN DREAM.
NOW WHY IS IT AMERICA, HOW HAS AMERICA BECOME WHAT IT HAS BEEN TODAY?
WELL DAVID LANDIS, THE HARVARD PROFESSOR WHO WROTE, WEALTH AND POVERTY
OF NATIONS AND TALKS ABOUT WHY IS IT THAT CERTAIN NATIONS ARE ASCENDED
ECONOMICALLY AND IN LIFESTYLES OVER OTHERS, TALKS ABOUT AMERICA, AND
SAYS AMERICA WAS ASCENDED BECAUSE OF OUR MIDDLE CLASS WHO KNEW HOW TO MAKE
THINGS AND DO THINGS AND GET THINGS ACCOMPLISHED AND CREATE PROSPERITY.
MORE RECENTLY, PAUL KENNEDY TALKS ABOUT WORLD WAR II AND THE ENGINEERS
OF VICTORY AND HE SAYS THE SOLDIERS CREATED AN IMPORTANT COMPONENT OF
WINNING WORLD WAR II.
BUT THERE WAS ANOTHER ASPECT OF IT.
THE PEOPLE WHO WERE IN THE FACTORIES, PEOPLE LIKE ROSE HILL MONROE CAME OUT
OF THE HILLS OF KENTUCKY AND WORKED IN A FACTORY IN WILLOW RUN, MICHIGAN, AND
SHE AND HER SISTERS CREATED THE INDUSTRIAL BASE.
SHE BECAME KNOWN AS, LATER, AS ROSIE THE RIVERTER.
AND SHE CREATED THE INDUSTRIAL BASE THAT ALLOWED US TO WIN THE ONE
WAR WE COULD NOT AFFORD TO LOSE, MIDDLE CLASS AMERICANS DELIVERING US.
ROB MCCLENDON: MR PINCHUK, WHERE DID WE SLIP UP IN TERMS OF OUR SHRINKING
MIDDLE CLASS?
PINCHUK: WELL, I THINK THAT WHAT HAPPENED IN THE MIDDLE CLASS IS THAT TWO
THINGS HAPPENED.
WE ALLOWED PEOPLE TO CHANGE OR REASSESS WHAT THEY THOUGHT THE AMERICAN
DREAM WAS.
THAT IS TO REDEFINE, THE AMERICAN DREAM HAD ALWAYS BEEN THE IDEA OF
ESTABLISHING YOURSELF IN AMERICA, GETTING A JOB THAT WOULD CREATE A GREAT,
A LIVING THAT WOULD CREATE PROSPERITY AND STABILITY FOR YOUR FAMILY AND PRIDE
AND FULFILLMENT FOR YOU AND OVER TIME WE STARTED TO INTERPRET THAT AMERICAN
DREAM AS SOMETHING LIKE YOU HAD TO ACHIEVE AT THE HIGHEST LEVELS TO BE A TV
ANCHOR, OR TO BE A CEO, OR TO BE AN ATTORNEY, TO BE A, AN INVESTMENT BANKER,
AND TO HAVE GONE TO A VERY PRESTIGIOUS FOUR-YEAR COLLEGE.
THAT WAS, BECAME THE AMERICAN DREAM.
BUT IN FACT THE AMERICAN DREAM ALWAYS HAS BEEN, AND WHAT HAS BEEN MOST
POWERFUL ABOUT AMERICA IS SO MANY PEOPLE CAN PARTICIPATE IN IT.
EVERYONE CANNOT BE AN INVESTMENT BANKER OR A TV ANCHOR OR A DOCTOR.
AND SO THAT, I THINK, IS THE FUNDAMENTAL BASIS FOR THIS.
AND THEN ALONG THOSE WAYS, IT SORT OF ASSOCIATED WITH THAT.
WE STARTED TO LOSE RESPECT FOR THE DIGNITY OF THE WORK DONE BY THE PEOPLE IN
THE MIDDLE; THE PEOPLE ON THE LINE; THE PEOPLE WHO DID WELDING, EVEN THOUGH
WELDING IS VERY DIFFICULT TO DO IN A CORRECT WAY; CAR MECHANICS, EVEN THOUGH
CARS TODAY ARE MUCH MORE COMPLICATED THAN WE'VE EVER SEEN.
IN FACT THERE ARE MORE LINES OF CODE ON A CAR TODAY THAN ON SOME
AIRPLANES.
AND SO THE PEOPLE WHO REPAIR THEM HAVE TO BE VERY, VERY SKILLED.
AND YET WE HAVE, MAYBE, WE DO SOME OF THE RESPECT AND THE DIGNITY WE GIVE TO
THOSE PEOPLE.
THAT'S WHERE WE SLIPPED UP.
SO THIS IS MY MESSAGE, AMERICA IS A GREAT COUNTRY.
AND IT'S A GREAT COUNTRY BECAUSE OF THE MIDDLE CLASS AND THE ACHIEVEMENT
OF THE AMERICAN DREAM.
IT HAS SUCCEEDED NOT ONLY BECAUSE OF THE BRILLIANCE OF THE FEW, BUT THE
EFFORTS OF THE MANY.
WE ARE CHALLENGED TODAY BECAUSE WE'RE IN A GLOBAL COMPETITION, A CONFLICT.
AND OUR NUMBER ONE, OUR NUMBER ONE WEAPON IN THAT CONFLICT IS CAREER AND
TECHNICAL EDUCATION WHICH WILL UPSCALE OUR WORKFORCE AND ALLOW THEM TO
DIFFERENTIATE THEM AND WIN THE COMPETITION TO BE THE AMPLIFIERS FOR THE IDEAS.
GROW THE MIDDLE CLASS AGAIN, AND TO DO THAT, AND TO DO THAT, AS
BUSINESSMEN, AS EDUCATORS, AS GOVERNMENT PEOPLE, WE NEED TO COOPERATE TO SHAPE
THE CURRICULUMS TO BE DEMAND DRIVEN.
CALL IN THE AIRSTRIKES SO WHAT KIDS ARE STUDYING IS EXACTLY WHAT'S GOING TO
LEAD TO A JOB.
WE NEED TO CHANGE.
WE NEED TO CHANGE THE OPTICAL OUTLOOK ON THESE JOBS.
WE NEED TO RESTORE THE RESPECT FOR THE DIGNITY OF WORK.
WE NEED TO BRING THE AMERICAN DREAM BACK TO WHAT MADE THIS GREAT, THAT
IS PROSPERITY AND STABILITY FOR A FAMILY IN A GREAT JOB, NOT
NECESSARILY A ROCKSTAR JOB.
AND WE NEED TO CHANGE THESE CONSOLATION PRIZES TO AN AMERICAN CALLING, A
NATIONAL CALLING.
CAREER AND TECHNICAL EDUCATION HAS A HECK OF A PR PROBLEM, A HECK OF A PR
PROBLEM YOU SEE, STUDENTS, YOUNG PEOPLE WHO GO INTO THESE JOBS OFTEN, OR
PURSUE THESE LINES OF STUDY, OFTEN ARE SEEN TO HAVE SETTLED FOR THE
CONSOLATION PRIZE OF OUR SOCIETY.
I SAID THIS IN WASHINGTON AND, IN A THINK TANK IN WASHINGTON, AND THE
AUDIENCE PUSHED BACK AND SAID IT'S NOT TRUE.
AND I SAID OKAY, HOW WOULD YOU FEEL IF YOUR SON OR DAUGHTER TOLD YOU HE WAS
GOING TO BE A CAR MECHANIC, A GREAT JOB THAT DELIVERS PROSPERITY AND
STABILITY AND CAN'T BE OFF-SHORED?
AND THE SILENCE IN THE AUDIENCE, YOU COULD HEAR A PIN DROP.
AND THE FACE OF THE PEOPLE CONFIRMED THE ANSWER; THESE JOBS ARE WHAT OTHER
PEOPLE'S KIDS DO, YOU SEE.
AND THE PROBLEM IS, AMERICA HAS LOST THE RESPECT FOR THE DIGNITY OF
WORK.
ROB: I'M STRUCK EVERY TIME I GO INTO A MANUFACTURING FACILITY HOW TECHNICAL,
HOW MODERN, AND ACTUALLY HOW CLEAN THEY ARE.
DO WE HAVE A MISCONCEPTION ABOUT WHAT LABOR IS TODAY?
PINCHUK: OH OF COURSE, I MEAN THAT'S PART OF THE PROBLEM.
WE THINK OF LABOR, PARTICULARLY IN A FACTORY, AS BEING DIRTY AND DARK.
AND THAT'S NOT THE WAY IT IS ANY MORE.
LABOR IN A FACTORY, MOST OF THE FACTORIES IN THE UNITED STATES TODAY ARE
BRIGHT AND CLEAN AND YOU COULD EAT OFF THE FLOOR IN A LOT OF CASES BECAUSE
THIS IS JUST GOOD QUALITY.
AND THE MACHINES THAT ARE WORKING ON THOSE FLOORS ARE VERY, VERY TECHNICAL.
AND IT TAKES A SKILLED PERSON TO RUN THEM, PARTICULARLY IF YOU ARE
RUNNING A COMPLEX PRODUCT LINE.
ONE OF THE REASONS WHY SNAP-ON IS ABLE TO MANUFACTURE IN THE UNITED
STATES IS WE RUN A COMPLEX PRODUCT LINE.
WE MANUFACTURE 80 PERCENT, 80 PERCENT OF WHAT WE SELL OFF OUR VANS HERE IN
AMERICA, WE MANUFACTURE RIGHT HERE, EVEN THOUGH LABOR IS A LARGE COMPONENT
OF WHAT THAT HAND TOOL IS MADE OF.
AND THE REASON THAT IS, IS BECAUSE COMPLEXITY AND FLEXIBILITY ARE IMPORTANT
COMPONENTS IN OUR PRODUCT LINE.
WE OFFER 65,000 SKUS.
SO THE SHORT RUNS, THE CUSTOMIZATION REQUIRE TREMENDOUS KNOWLEDGE TO BE
ABLE TO MANAGE THOSE MACHINES OVER ALL THOSE DIFFERENT ITEMS.
AND THAT MEANS THAT YOU NEED A CONSIDERABLE PERSON IN THAT PLACE.
AND WHAT IT DOES IS IT ALLOWS YOU TO DEFEND AMERICAN MANUFACTURING TO
MANUFACTURE RIGHT HERE.
WE USE, I SUPPOSE YOU COULD SAY, THE ONE INALIENABLE ADVANTAGE
THAT AMERICAN MANUFACTURERS ENJOY, THAT IS, PROXIMITY TO THE
WORLD'S GREATEST MARKET.
AND THAT PROXIMITY IS AN ADVANTAGE FOR US BECAUSE IT'S VERY DIFFICULT TO LOB
65,000 SKUS OF PRODUCT LINE WHICH IS BOTH COMPLEX AND NEEDS TO BE DELIVERED,
WHICH IS COMPLEX AND NEEDS TO BE DELIVERED WITH FLEXIBILITY.
IT'S VERY DIFFICULT TO CREATE THAT AND LOB IT 10,000 MILES IN 12 TIME
ZONES FROM ASIA.
SO THEREFORE PROXIMITY IS ASCENDANT IN THIS MODEL.
WE NEED TO RE STORE THE AMERICAN DREAM TO WHAT IT WAS.
WE NEED TO RAISE AGAIN OUR RESPECT FOR THE DIGNITY OF WORK.
AND WE NEED TO CHANGE THESE JOBS, THESE CAREERS, FROM A CONSOLATION PRIZE
TO AN AMERICAN CALLING BECAUSE THERE IS NO PATH TO AMERICAN PROSPERITY IN
THE FUTURE WITHOUT AN EXPANDED MIDDLE CLASS AND AN EXPANDED GROUP OF
PEOPLE WHO ARE ENABLED, UP-SCALED AND CAPABLE OF DOING THINGS.
THIS IS THE LESSON OF THE LAST 250 YEARS FOR AMERICA WE NEED TO DO IT AGAIN.
ROB: YOU KNOW IT IS WIDELY ACCEPTED THAT WE HAVE A SKILLS GAP HERE IN THIS
COUNTRY.
YOU SET OUT THREE AREAS THAT WE NEED TO ADDRESS.
THE FIRST ONE BEING, CAREER AND TECHNICAL EDUCATION.
PINCHUK: YES.
ROB: TELL ME MORE.
PINCHUK: WELL I THINK ACTUALLY I WOULD SUGGEST THAT ALL OF IT REVOLVES
AROUND CAREER AND TECHNICAL EDUCATION.
CAREER AND TECHNICAL EDUCATION IN THAT COMPETITION, IN THAT
CONFLICT, IS OUR GREATEST WEAPON.
BUT THERE ARE THREE THINGS WHICH WHERE BUSINESS AND EDUCATION AND GOVERNMENT
CAN COOPERATE; ONE IS, SHAPING THE CURRICULUM, MAKING CURRICULUM DEMAND
DRIVEN SO IT MATCHES THE JOBS THAT ARE ACTUALLY OUT THERE.
AND BUSINESS HAS TO BE ACTIVE IN DOING THIS BUT IT TAKES THE IDEA THAT
THE COMPANY NEEDS TO REALIZE THAT IT NEEDS TO BE ACTIVE IN GUIDING THE
CURRICULUM, OTHERWISE THE CURRICULUM WON'T MATCH.
THE NATIONAL ASSOCIATION OF MANUFACTURERS SAYS THAT 600,000 JOBS, JUST IN
MANUFACTURING, ARE OPEN SIMPLY BECAUSE WE CAN'T FIND A SKILL.
AND, THE NATIONAL ASSOCIATION OF MANUFACTURERS ALSO SAID,
75,000 MEMBERS, TWO-THIRDS OF THEM SAY THE NUMBER ONE CRITERIA FOR SELECTING THE
SITE OF A FACTORY IS HAVING A EXCEPTIONALLY SKILLED WORKFORCE.
TWO, IS THE FACT THAT THERE'S A HECK OF A PR PROBLEM.
PEOPLE TEND TO VIEW THOSE YOUNG PEOPLE WHO, OR MIDDLE AGE PEOPLE, OR OLD
PEOPLE WHO PARTICIPATE IN, IN, CERTAINLY YOUNG PEOPLE THOUGH, WHO PARTICIPATE IN
CAREER AND TECHNICAL EDUCATION PURSUE TECHNICAL CAREERS AS HAVING SETTLED
FOR THE CONSOLATION PRIZE OF OUR DAY.
THEY ARE, IN HUXLEY TERMS, THEY ARE VIEWING THEM IN SOME WAYS AS THE BETA
MINUSES OF OUR SOCIETY.
AND, THIS OF COURSE IS NOT TRUE, BECAUSE THESE JOBS LEAD TO GREAT STABILITY
AND CAPABILITY AND FULFILLMENT AND PROSPERITY FOR A FAMILY.
BUT, WE NOW VIEW THEM AS THE CONSOLATION PRIZE.
WE HAVE LOST THE RESPECT, AS I SAID EARLIER, LOST THE RESPECT FOR DIGNITY OF
WORK.
BECAUSE, TECHNICAL WORK, THOSE TECHNICAL JOBS HAVE BEEN THE BULWARK OF THE
MIDDLE CLASS AND HAVE CREATED THE AMERICAN STRENGTH WE ENJOY TODAY.
THERE IS NO PATH TO PROSPERITY WITHOUT HAVING AN ENABLED MIDDLE CLASS
AND AN UP-SCALING OF THE AMERICAN WORKFORCE.
AND THAT WON'T HAPPEN UNLESS WE RAISE THE PROFILE AND ACCEPTABILITY
OF THOSE JOBS AND MAKE THEM A NATIONAL CALLING.
KENNEDY DID THIS IN 1960, WHEN HE SAID WE'RE GOING TO THE MOON IN 10 YEARS,
AND EVERY HIGH SCHOOL YOUNG PERSON IN AMERICA THOUGHT THAT BECOMING A
SCIENTIST OR AN ENGINEER WAS ENLISTING IN A NATIONAL CALLING, ALMOST
LIKE THEY WERE GOING IN THE ARMY.
THIS CAN BE DONE HERE BY LEADERS IN BUSINESS, BY LEADERS IN EDUCATION, AND
BY PEOPLE IN GOVERNMENT PARTICULARLY, LIKE, LIKE THE GOVERNOR HERE IN
OKLAHOMA WHO DOES THAT.
NOW THERE'S A THIRD THING WHICH IS PRIORITY; WHICH IS, WE NEED TO SUPPORT IT
WITH GOVERNMENT AND WITH BUSINESS.
AND WHAT'S HAPPENING IN GOVERNMENT, I BELIEVE, IS THAT FOR SURE IS THAT,
CONGRESS AND THE SENATE WILL ENDORSE TECHNICAL EDUCATION.
THEY'LL SAY, WE ENDORSE IT, BUT WHEN PUSH COMES TO SHOVE, THEY WILL SACRIFICE
THE INTEREST OF TECHNICAL EDUCATION ON THE ALTAR OF OTHER PRIORITIES.
THEY'LL ENDORSE IT, BUT THEY WON'T SUPPORT IT.
THEY WON'T PRIORITIZE IT.
SO, WHEN OTHER, WHEN THE TIME COMES TO ALLOCATE THE MONEY, OR DECIDE WHERE TO
SPEND POLITICAL CAPITAL, THEY WON'T DO IT ON EDUCATION.
AND WE NEED TO LEAN ON THEM TO RECOGNIZE THAT EDUCATION SHOULD BE THE
NUMBER ONE PRIORITY.
NOW, BEFORE BUSINESS CAN EFFECTIVELY LEAN ON THEM, AND BEFORE EDUCATION CAN
EFFECTIVELY LEAN ON THEM, WE HAVE TO ACTUALLY ACT LIKE IT'S THE NUMBER ONE
PRIORITY.
AND PART OF THE PROBLEM IS THAT BUSINESS ITSELF TENDS TO LIKE ANYTHING THAT WILL
FAVOR BUSINESS.
IN OTHER WORDS IF THERE'S AN ISSUE THAT IS FAVORABLE TO BUSINESS, WE
CHARACTERIZE IT AS ESSENTIAL, WELL THAT'S NOT REALLY TRUE.
AND SO I'M WILLING TO SAY FOR US, FOR ME, THAT CAREER AND TECHNICAL
EDUCATION IS THE NUMBER ONE THING ON MY PRIORITY LIST FOR A NATIONAL
AGENDA, ABOVE ANY KIND OF TRADE CHANGES, ABOVE CHANGES IN THE CORPORATE
INCOME TAX.
AND WE PAY A HIGH CORPORATE INCOME TAX.
AND SO AN ADJUSTMENT WOULD FAVOR US FOR SURE.
YET I THINK EDUCATION IS MORE IMPORTANT.
I'M WILLING TO SAY THAT, AND WE NEED TO SAY THAT DIRECTLY TO OUR LEADERS IN
BOTH EDUCATION AND IN GOVERNMENT AND LEAN ON THEM TO ACT THE SAME.
AND THAT CREATES THE PRIORITY THAT WILL HELP THIS.
SO THREE AREAS TO ENABLE THIS CAREER AND TECHNICAL EDUCATION TO BE THE WEAPON
IT DESERVES TO BE; ONE IS, CALL IN THE AIRSTRIKES AND SHAPE THE CURRICULUM TO BE
DEMAND DRIVEN SO IT FITS WHAT'S NEEDED IN INDUSTRY; TWO, WORK ON THE PR
PROBLEM AND CHANGE WHAT IS A CONSOLATION PRIZE NOW TO A NATIONAL CALLING AND
RESTORE THE RESPECT FOR THE DIGNITY OF WORK AND RE STORE THE AMERICAN DREAM
TO WHAT IT ALWAYS WAS, THAT IS THE MIDDLE CLASS, NOT SOME EXTRAORDINARY JOB
WHICH CAN ONLY BE OCCUPIED BY A VERY FEW NUMBER OF AMERICANS; AND THIRDLY, TO
ASK OUR GOVERNMENT AND OUR EDUCATORS TO PRIORITIZE THIS AS THEIR NUMBER ONE
PRIORITY, AND TO ACT LIKE IT.
ROB: NICK PINCHUK, THANK YOU FOR YOUR INSIGHTS.
PINCHUK: OKAY!
ROB: APPRECIATE IT.
THANK YOU.
PINCHUK: SURE.