REHAU AND THE WORKFORCE CHALLENGENorthern Virginia Regional Commission, Fairfax– April 21, 2016

The Premium Worldwide Brand for Polymer Solutions

Who We Are

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• Develop, manufacture and market innovative polymer-based systems

• Independent, privately held company

• Founded in 1948

• Approximately 20,000 employees at more than 170 locations in 50 countries

Giving New Substance to the World We Live In

What We Do

Many of our polymer-based products and systems are award-winning, industry-leading designs in their sector.

INDUSTRY• Furniture• Appliance• Industrial developments

AUTOMOTIVE• Exterior• Sealing• Water and air management

CONSTRUCTION• Civil engineering, infrastructure• Renewable energy• Building Technology• Windows and doors

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We’re Part of Many Leading Brands and Projects Worldwide

Contributions to Excellence

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Our Alabama plant

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• REHAU was the first German Mercedes supplier who announced to support Daimler in their new facility in Alabama.

• Groundbreaking for the facility was in 1994.

• In operation since 1996

• Current main customers:

• MBUSI (GLE, GL and C-Class Fascias, Rocker Panels, Spoilers)

• BMW (X5 Spoilers and Fins)

• Nissan (Body Side Moldings, Fender Flares and Mudguards)

• Previous customers included Ford, GM, Kia and Hyundai

• Currently approx. 1,100 employees in the Cullman location

REHAU plant Cullman – Typical Products

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Contributions to Excellence – the Challenge in our Alabama plant

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• Difficult to find the workforce that has skills required to operate the highly automated and technically challenging machinery; only few people have experience with an industrial environment

• Extensive training is required by plant personnel. But even these training programs can hardly match the typical German 3-year apprentice programs that includes academical and practical training.

• High external fluctuation from employees who eventually are not satisfied in an industrial environment.

• Internal fluctuation as a result of promotions or internal job rotations.

Contributions to Excellence – One Answer: our Manufacturing Apprenticeship Program in Cullman, AL

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Summary of the program “Polymer Specialist Apprenticeship”

• Start: August 2015

• Currently 5 apprentices in their senior year of HS (planned: 8 per year)

• Duration: 2 years, students graduate with a high school degree and a college certificate in Injection Molding plus valuable hands on practical experience. After graduation, students are eligible for full-time employment at REHAU.

• Students alternate between theoretical training at local Community College (2-3 days/week) and practical training at REHAU. A professional vocational trainer is 100% assigned to the program.

Our current apprentice class:

Contributions to Excellence – the Challenge in Northern Virginia

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The candidate gap

Fewer manufacturing jobs, but for the existing ones there is a need for highly qualified candidates with up to date skills;

Demand for skilled employees that can perform a variety of “white collar” jobs that do not require a bachelor degree (clerical jobs, technicians, assistants etc.);

As it is very difficult to find employees with the required skills in the office, extensive inhouse training is required.

The career challenge

A career without a 4 year degree is not considered as desirable; however many students never complete a 4 year degree apprenticeships (“white collar” and “blue collar”) can fill the gap and provide a great career alternative (not just a job).

Awareness needs to start at the high school, close cooperation with companies, local schools and community colleges is required. Parents need to be involved and informed as well to support their kids on this alternative career path.

Clear and visible career paths for graduates from apprenticeships need to be developed.

Thank you for Your Attentionwww.rehau.com