Workforce Supplement to Q4 2019 Issue of Area Development by Area Development

Recruiting/Managing the Multigenerational Workforce Page 9

Building a â&#x20AC;&#x153;Smartâ&#x20AC;? Facility Management Workforce Page 14

Make Diversity & Inclusion Initiatives a Priority Page 18

2019

Bridging the Skilled Trades Gap Page 23

Cultivating Talent from Untapped Communities

Are Your EMPLOYEES Ready to WORK with ROBOTS? Page 5

Page 30

Special Supplement to Area Development Magazine

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Bosch Rexroth, Bethlehem, PA

Where the workforce of the future lives. Lehigh Valley is a top five region in the Northeastern United States for economic development because of its abundant strengths, especially the size and quality of its workforce. People come to Lehigh Valley to connect to community, enjoy a high standard of living at a low cost, and tap into a rich history of innovation. You can recruit the talent you need from the thousands of skilled new arrivals each year and the thousands of college graduates the region produces every year. Together, we will craft what is Made Possible in Lehigh Valley.

lehighvalleymadepossible.com

#lvmadepossible

PUBLISHER: Dennis J. Shea

EDITOR’S NOTE In November 2018, Dell Technologies announced “new 2030 goals for societal change” were at the top of its strategic agenda.1 Among these goals was the cultivation of inclusion by hiring, developing, and retaining women so that they would account for 50 percent of the firm’s global workforce within 10 years. Dell also would engage in similar efforts with black and Hispanic team members so that they would account for 25 percent of the company’s U.S. workforce by 2030.

EDITOR: Geraldine Gambale editor@areadevelopment.com ART & DESIGN: Patricia Zedalis PRODUCTION MANAGER: Jessica Whitebook

In fact, diversity and inclusion (D&I) initiatives have become a priority for all companies — including manufacturers — as they attempt to satisfy their workforce needs. PwC’s Industrial Products Leader Jeff Sorensen points out that as the U.S. demographic shifts, D&I is serving a greater purpose. According to the Brookings Institute,2 by 2045, the U.S. white population is projected to be a minority at 49.9 percent, followed by Hispanics at 24.6 percent and blacks at 13.1 percent. And although women make up nearly half the U.S. labor force (47.5 percent), in 2016 they represented only 29 percent of the manufacturing workforce, according to Census figures.3

ADVERTISING: Bill Bakewicz (ext. 202) billbake@areadevelopment.com

Companies must not only concern themselves with diversity issues, but also with recruiting/managing a multigenerational workforce. Each generation — babyboomers, Gen X, millennials, and Gen Z — brings different skills and expectations to the workplace. Effective managers must unite these workers and make sure they respect one another’s needs, advises Kylene Zenk — director of the Manufacturing Practice at Kronos, Inc. Importantly, technology can help to turn this multigenerational workforce into a cohesive unit, but management must consider generational differences when implementing technology to ensure a positive experience for all employees.

WEB DESIGNER: Carmela Emerson

The use of robots is among the technologies being introduced by manufacturers. Again, managers must communicate to their workforces how their roles will change in order to prepare them to work collaboratively with this new technology. Companies should consider investing in training and upskilling their existing employees when increasing automation, says Mark Howard, U.S. Country Manager for EU Automation. These issues and more are discussed in our Q4/2019 Workforce issue. Also, workforce initiatives supported by the economic development organizations sponsoring this publication are profiled throughout the pages that follow.

DIGITAL MEDIA MANAGER: Justin Shea jshea@areadevelopment.com BUSINESS DEVELOPMENT: Matthew Shea mshea@areadevelopment.com

BUSINESS SERVICES: Barbara Olsen (ext. 225) olsen@areadevelopment.com EXECUTIVE OFFICES Halcyon Business Publications, Inc. PRESIDENT Dennis J. Shea dshea@areadevelopment.com FINANCE: Mary Paulsen finance@areadevelopment.com All Correspondence to: Area Development Magazine 400 Post Avenue, Westbury, NY 11590 phone: (516) 338-0900 toll free: (800) 735-2732 fax: (516) 338-0100 www.areadevelopment.com

Editor 1

ttps://corporate.delltechnologies.com/en-us/newsroom/announcements/detailpage.press-releases~usa~2019~11~20191112h new-2030-goals-for-societal-change-top-dell-technologies-strategic-agenda.htm#/filter-on/Country:en-us https://medium.com/@Brookings/the-us-will-become-minority-white-in-2045-census-projects-d687eb3ad940 3 https://www.census.gov/newsroom/blogs/random-samplings/2017/10/women-manufacturing.html 2

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CONTENTS 3 E d i t o r ’s N o t e F E AT U R E S

5 At or eWYo ur Employees Ready ork with Robots?

As manufacturers increasingly employ robots on the factory floor, they must communicate to their workforces how their roles will change and prepare them to work collaboratively with this new technology.

9 MR eucl rt iugi et innegr aatni do nMaal nWaogri nk gf otrhcee Area Development recently asked Kylene Zenk — director of the Manufacturing Practice at Kronos, Inc. — for her input on recruiting and managing a multigenerational workforce.

14 Aa “MSuml tairptro” nFag ec idl iAt yp pMroa naacghetmo eBnuti lWo ding r k f o rc e New technologies in facility management and maintenance are changing the way the workforce will be trained.

18 M& aI nn uc lf ua cs ti ou nr eIrnsi:t iMa taikvee sD ai v Pe rr si oi tryi t y As the U.S. demographic changes, manufacturers and other companies must step up their diversity and inclusion efforts in order to fulfill their workforce needs.

23 B r i d g i n g t h e S k i l l e d T r a d e s G a p

Public institutions and private companies are deploying innovative solutions to address the ongoing scarcity of skilled trades workers and narrow the nationwide skilled trades gap.

PROFILE/SPONSORS KENTUCKY

12, 13 K e n t u c k y B u s i n e s s e s S t e p U p t o A d d re ss Wo r k fo rce N e e d s www.ThinkKentucky.com LOUISIANA

16, 17 L o u i s i a n a R e i m a g i n e s Wo r k fo rce OpportunityLouisiana.com MISSISSIPPI

20, 21 M i s s i s s i p p i H a s t h e Formula for Business Success tgiles@mississippi.org www.mississippi.org MISSOURI

24, 25 M i s s o u r i ’s L a s e r F o c u s o n Wo r k fo rce D eve lo p m e n t MissouriOneStart.com PENNSYLVANIA

28, 29 L e h i g h V a l l e y C o n t i n u e s to Draw Residents & Companies MTuerk@LehighValley.org www.LehighValley.org TEXAS

6, 7 L u b b o c k : T h e H u b C i t y Lubbockeda.org

30 UC un lt taipvpa et idn gC oTamlme un nt iftrioems By hiring from diverse and underserved communities, a company can boost innovation along with its bottom line.

4 • WORKFORCE

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ARE YOUR EMPLOYEES READY TO WORK WITH ROBOTS? As manufacturers increasingly employ robots on the factory floor, they must communicate to their workforces how their roles will change and prepare them to work collaboratively with this new technology.

ooking to the realms of science fiction, robots get a pretty bad rep. Endless examples of robot uprisings and plots for world domination haven’t assisted the technology’s efforts to be welcomed by humans in the workplace. Here, Mark Howard, U.S. country manager of industrial parts supplier, EU Automation, gives his three crucial steps to alleviating human resistance to robot deployment: According to a report published by Reuters,1 U.S companies installed more robots than ever before in 2018. Shipments of robotic machinery hit a colossal

28,478 deliveries — that’s a 16 percent increase compared to the previous year. Deployment increased in almost every sector, including life sciences, food and consumer goods, and semiconductors and electronics. As more sectors embrace manufacturing’s robotic revolution, it raises more questions about how to correctly deploy the technology. Unsurprisingly, there’s a lot of planning, organizing, and risk assessment required to integrate a new robot onto an existing production line. But, preparing for the impact robots can have on human workers is often overlooked. So, how can manufacturers prepare?

1. R e m o v e

While robotics and intelligent machinery will replace some factory roles, this technology will not remove humans from the equation completely.

a u t o m a t i o n a n x i e t y.

There are plenty of scaremongering statistics deeming the rise of automation as the demise of the human employee. However, this simply isn’t true. Humans have a natural desire to create tools and machinery to reduce the need for physical labor. In fact, over the last few centuries, we have almost obliterated the need to complete physical tasks at all — or at least, we have made them significantly easier. Manufacturing offers plenty of examples of this — from the invention of the printing press in the fifteenth century, right through to the intelligent robotics and automation we see gracing the floors of factories today. Despite our ubiquitous desire to reduce manual tasks, humans’ fear of automated technology is seemingly more prevalent than ever before.

By Mark Howard, U.S. Country Manager, EU Automation 2019 • 5

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LUBBOCK:

THE HUB CITY During the last decade, fears of automation-driven job losses have surged — strange phenomenon, considering robotics have played an integral part of manufacturing since as early as the 1960s. Perhaps some of this concern is due to the rapid advancement in technology. Let’s face it; today’s automation goes far beyond mechanical muscle. There’s no denying that a human worker cannot compete with the strength, speed or stamina of a robot. However, only recently have the intelligence and decision-making skills of machinery advanced to a competitive level. Smart factory software provides a good example. Modern platforms will include a distributed control system (DCS), alongside standard supervisory control and data acquisition (SCADA) software. When integrated with factory machinery, this software can collect and analyze data at a speed unattainable by a human worker, allowing it to make decisions based on real-time factory activity. For instance, the software could identify opportunities to save energy during periods of machinery downtime. By cross-referencing production data with operational information of each machine in the factory, the software could easily point out periods in which certain machines could be switched off or turned on standby. A human employee could never process and analyze this much data at this speed. However, there’s no reason intelligent software and intelligent machines cannot work harmoniously with humans. Software can collect and analyze data quickly, but human minds are often required to make informed decisions on what’s right

Rendering of Lubbock Logistics Center

The Lubbock Economic Development Alliance (LEDA) and Bandera Ventures partnered in the construction of the Lubbock Logistics Center, a high-tech speculative distribution building with 161,555 square feet of space in the Lubbock Business Park. Bandera Ventures, a Dallas-based commercial real estate development company, chose to build the facility in the “Hub City” due to the low industrial real estate vacancy and Lubbock’s role as a regional hub. Ranked by Indeed as one of the top-10 best cities in the nation for high-projected economic growth potential, Lubbock is a premier choice for business expansion. The spec building is a key component in assisting with workforce growth in Lubbock. It will serve as a catalyst for growth in the business park, allowing for a company to expand or relocate its operation in Lubbock in a quick and cost-efficient manner.

feet, as well as having the ability to be cross-dock configured. The property is easily accessible to I-27, which connects north and south to I-20 and I-40. Additionally, it is within one mile of the Lubbock Preston Smith International Airport, offering connectivity from a foreign-trade zone to markets across the country and around the globe. Another advantage of this facility is the ever-growing workforce that stems from surrounding universities and training programs that provide highly skilled and trained graduates. In fact, Indeed named Lubbock as the third-best city in the nation for above-average employment opportunities and highprojected growth. The team at LEDA has made large strides when it comes to investing in Lubbock’s future workforce with the development of multiple grant programs. These efforts are being reflected in Lubbock’s continuously growing workforce and economy.

The new Center is well-equipped to meet the specific needs of its occupants with 56 trailer parking positions and a clear height of 32 Lubbock Economic Development Alliance 1500 Broadway Ave. 6th floor Lubbock, Texas 79401

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806-749-4500 800-687-5330 Lubbockeda.org

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LUBBOCK RANKS

third best CITY

IN THE NATION FOR ABOVE-AVERAGE

EMPLOYMENT OPPORTUNITIES & HIGH PROJECTED GROWTH

-Indeed.com

Looking for a strong workforce? Move up. Live better. LUBBOCKEDA.ORG 800.687.5330 • 806.749.4500 | LUBBOCK, TEXAS

for the factory. Clearly, there’s no advantage to collecting production data without plans to act on it. While robotics and intelligent machinery will replace some factory roles, this technology will not remove humans from the equation completely. To lessen the fear of automation anxiety in the workforce, it is vital that plant managers are transparent about the changing roles of humans. Admittedly, human workers might not be required for menial and manual tasks, but there’s certainly still space for humans in the factory. To avoid internal gossip and scaremongering when deploying robots, plant managers should be clear about how the new investment will change requirements and expectations of human workers. But, let’s be realistic — if workers believe their role could be replaced by a robot, it probably can.

2. R e s k i l l

and retrain.

Manufacturers considering purchasing a robot should also consider investing in the training and upskilling of their existing employees. Reskilling existing workers will reduce the likelihood of redundancies and, therefore, improve the company’s reputation as an employer — a common problem when reducing the number of employees but increasing automation. Deploying robots, or any automation machinery for that matter, will create a new requirement for engineers with programming and maintenance skills. As opposed to employing a new programmer, manufacturers should consider training an existing production

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operative to take on this role — perhaps a worker whose role the robot will replace or reduce. Several industrial robot manufacturers and suppliers will provide free training on how to correctly program and maintain their machinery, so it is worth looking into this before investing in external courses. Alternatively, should manufacturers purchase a robot from an industrial parts supplier, they will benefit from access to the company’s global network of automation manufacturers, allowing them to choose the right parts for them. It is also important to reiterate to existing workers that deploying robots will eliminate tedious and manual tasks. By nature, humans want to create and to invent and solve problems — not complete repetitive movements such as box opening, bin-picking or basic assembly processes. This is particularly prevalent for workers with engineering backgrounds. Communicating this benefit with staff is essential. Manufacturers need to be clear that, rather than engineering humans out of a job, robots can be used to allow operators to take on more challenging opportunities — but only, of course, if plant managers allow it.

3. R e v e a l

the benefits.

Providing transparency and training to staff will alleviate some resistance toward automated technology but, post-deployment, there is more work to be done. Without providing evidence of the benefits of automation, it is likely that human workers will still harbor resentment toward the investment — particularly if there have been cuts in other areas. Most manufacturers will have key performance indicators (KPIs) and targets for productivity and quality improvements when deploying robots in a factory, so why not share this data with staff? Naturally, production operatives may not be interested in profit margins and financial benefits, as compared to C-level executives. However, positive information and data related to productivity increases, improvements in product quality, and injury reduction should be shared with staff. Injury prevention, for example, is one of the most

emotive advantages of incorporating automation in a factory. By removing humans from potentially dangerous tasks, the likelihood of injury will be reduced. Sharing this data with staff can be done through a simple internal communication process, such as a newsletter or an intranet system. Alternatively, manufacturers could produce datasheets and case studies illustrating these advantages of automation deployment. Changing employee culture is one of the biggest challenges when deploying robots in particular. Critically, the efforts of senior management cannot stop once the robot has been integrated. Manufacturers should aim for workers to respect and care for the machines they are working alongside. Therefore, highlighting the advantages of this machinery on an ongoing basis is integral to establishing a culture that embraces automated technology, rather than resents it. This will become even more important as manufacturers begin to deploy collaborative robots or cobots — a new type of robot that can operate alongside human workers. Due to the reduced speed and power of these machines, compared to industrial robots, cobots can currently operate at the same workstations as production operatives, often working on the same tasks, at the same time. Cobots operate safely by using sensors to identify when a human worker comes in dangerously close contact. When it detects a human presence, the cobot will slow down or stop operations to ensure the worker remains safe. While this feature stops workers coming into direct contact with the robot, cobots are the most obvious example of humans and robots working in extremely close collaboration, increasing the need for an automation-friendly culture in the workplace. Science fiction might portray robots as the arch nemesis of humans, but we know that isn’t the case. As a growing number of U.S. manufacturers invest in robots, plant managers cannot overlook the importance of company culture when integrating this technology.

https://www.reuters.com/article/us-usa-economy-robots/u-s-companiesput-record-number-of-robots-to-work-in-2018-idUSKCN1QH0K0

8 • WORKFORCE

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RECRUITING AND MANAGING THE MULTIGENERATIONAL WORKFORCE The term “multigenerational workforce” refers to the fact that many companies employ workers spanning every generation: baby-boomers approaching retirement; Generation X, contributing decades of experience and knowledge; millennials stepping into manager roles; and Generation Z, digital natives fresh out of high school or college. Area Development recently asked Kylene Zenk — director of the Manufacturing Practice at Kronos, Inc., a leading provider of workforce management and human capital management (HCM) software solutions — for her input on recruiting and managing a multigenerational workforce. AD: Why is it so important today to engage the multigenerational workforce? Zenk: In today’s economy, people are the #1 creator of value in your company. People will power the future

of work, so the onus is on manufacturers to balance the diverse needs and motivations of their multigenerational workforce today to engage their people and unlock their company’s full potential. AD: How do the needs of baby-boomers, Gen Xers, and millennials in the workforce differ? Zenk: Every generation has had different life experiences and, as a result, holds a unique perspective. When you consider they are often working toward different goals, it makes sense that the motivations of each generation will vary. Studies show that motivation in the form of monetary benefits, promotions, peer recognition, and respect tends to resonate highest among baby-boomers. Gen X, on the other hand, values work-life balance and manager recognition, as well as bonuses and stock options. Millennials are motivated by stock options, too, but also value flexible schedules, time off, mentoring, and feedback. AD: What about the needs of the next generation to enter the workforce — Gen Z? Zenk: Gen Z works hard and wants to contribute — but admit they would work harder and stay longer at a company if they had a supportive manager (according to 1 in 3) or if their employer offered schedule flexibility (say 1 in 4). They also want good pay but aren’t just working for a paycheck — they’re looking to do work that makes them happy. And according to 1 in 3 Gen Zers, strong working relationships with their team and recognition from their managers will motivate them and offer validation that they’re on a path to success. These finding are from The Workforce Institute’s study on Gen Z in the workplace.1

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WHAT MOTIVATES EACH generation is oftentimes a reflection on their current stage of life.

AD: Do these different generations have any needs in common? Zenk: What motivates each generation is oftentimes a reflection on their current stage of life. Whereas millennial employees once cared more about work perks, like tuition assistance or pet insurance, now they may be raising a family and paying a mortgage — meaning that job stability and benefits linked to work-life balance are likely much more important. The expectations of the workforce are always evolving as each generation progresses through their careers, and a new demographic steps in to fill their shoes on the ground level. So, although new expectations and demands will surface, employers will likely see the needs of their workforce overlap — at least over time. To compete for talent, manufacturers will need to be agile and willing to tailor their culture and people practices as new employee expectations arise. AD: How can management help to erase the misconceptions each generation has of the others, ensuring that they respect one another’s needs? Zenk: Warranted or not, members of the various generations may have bias or possible misconceptions about members of other generations. For example, while general perception is that Gen Z is difficult to manage, 1 in 3 Gen Zers believe themselves to be the hardest-working generation. And, while today the youngest members of the workforce may be dubbed the job-hopping generation, that moniker was once used to describe millennials. Empowering managers to be effective leaders will be the key to uniting manufacturing’s multigenera-

tional workforce. All employees, regardless of tenure, want a strong and supportive manager, and in fact 9 out of 10 workers say the relationship they have with their manager is a make-or-break factor when deciding to stay in their current job. Further, 37 percent of Gen Z would flat-out never tolerate an unsupportive manager, while 29 percent say a poor manager would affect their performance at work. However, today’s managers — according to manufacturing employees surveyed by The Workforce Institute — get low marks, with 1 in 3 employees saying they are unsatisfied with their current manager’s work ethic. Building an inspired workforce starts at the top. Organizations should have a clear plan for leadership development and effectiveness in order to set current and future managers up for ongoing success. AD: Are there specific benefits derived from having a multigenerational workforce — i.e., what can each generation learn from the others (e.g., reverse mentoring, etc.)? Zenk: Today’s multigenerational workforce brings together a wealth of diverse skills, experiences, and perspectives. There is a lot of value in having such a deep well of historical knowledge and technical expertise under one roof. But 1 in 4 manufacturing employees today are over the age of 55, and by 2025 we’ll see around two million baby-boomers retire. An incredible amount of experience is about to walk out the door, and manufacturers must take immediate action to think about how to combat this problem — if they haven’t already. To maintain productivity, knowledge-transfer initia-

10 • WORKFORCE

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tives need to take place now — companies simply can’t afford to wait. Organizations should establish mentorship programs to engage the existing workforce and build a channel to transfer knowledge from experienced employees to newly hired talent. Companies can also organize internal apprenticeships and create new opportunities to upskill or cross-train current employees to help them advance within the company and fill important workforce gaps that will soon be left by retirees. And because Gen Z is eager for advancement opportunities, initiatives that show a continued investment in training and developing the workforce will be viewed as an attractive benefit. AD: Can technology help to turn this multigenerational workforce into a cohesive unit? Zenk: Absolutely — leveraging technology is a critical factor in modernizing and mobilizing the entire manufacturing workforce and should be fully integrated into the employee experience. Investing in consumer-grade HCM technology, for example, helps to streamline daily tasks for all employees — from boomers to Gen Z. Even something as simple as providing employees with easy, mobile access to their timecards, schedule, time-off balances, benefit selections, paystubs, and more can create a better workplace experience. Managers also benefit from a more intelligent and automated approach to developing employee schedules that align to production demands, managing employee performance, addressing employee absence, and approving timecards, leaving more time to engage with their teams and focus on operational goals. However, whenever introducing any new technology, be mindful that today’s workforce is incredibly diverse, and each generation adapts to new technologies at different rates — no matter how easy-to-use the tech may seem. A manufacturer’s strategy for implementing new technologies should take generational differences into account to ensure a positive employee experience for all. AD: Are HR policies and practices changing as a result of having multigenerational workforces? Zenk: Yes. Although both millennials and Gen Z have been viewed as “entitled” or “demanding” at times, these generations are influencing real change among the workforce in terms of raising collective expecta-

tions around HR policies and practices, including demand for user-friendly workplace technology, schedule flexibility, and emerging financial wellness benefits like earned wage access. Seeing their younger colleagues advocating for what they want, seasoned workers are changing their expectations, too. In today’s job climate, old-school methods to recruit and retain employees simply won’t work. Manufacturers need to rethink how they advertise and promote open positions (find prospective employees through online channels); automate the application and onboarding process; and seek alternative talent pools to recruit new hires. The way we work is changing, and the technology that helps manufacturers manage the workforce must keep up in order to fundamentally support employee engagement and drive productivity. AD: As the baby-boomers continue to retire, what steps should manufacturers take to encourage the younger generations’ interest in manufacturing careers? Zenk: The manufacturing industry is filled with opportunity for Gen Z. Surging growth, a strong economic outlook, and plenty of high-paying jobs are just what Gen Z would hope for in a career. It’s a simple matter of bringing awareness to the fact that manufacturing offers these things and taking steps to reshape today’s perceptions of the industry. To encourage interest in manufacturing careers and usher in new talent, companies can start by investing recruitment dollars in supporting community events or activities, like sponsoring STEM activities at a local school or arranging plant tours and inviting students to come and experience the world of advanced manufacturing firsthand. Kronos, for example, recently partnered with the Eastern Iowa & Western Illinois Sector Board to co-host an event for more than 340 eighthgraders. It featured interactive sessions (including a virtual reality welding simulator) facilitated by regional colleges and manufacturing companies. Many students walked away with a newfound appreciation for manufacturing and its impact on their day-to-day lives. Personally, their enthusiasm and feedback left me extremely hopeful about the future of our industry.

https://workforceinstitute.org

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KENTUCKY

BUSINESSES STEP UP TO ADDRESS WORKFORCE NEEDS Talent Pipeline Management is uniting businesses and educators in Kentucky. A common theme for states across the country is the need to address workforce issues within key industries. In Kentucky, those efforts have taken the form of a pipeline that ensures educator-employer partnerships create a vast and diverse talent pool ready to serve the needs of any business. The industry-led Talent Pipeline Management (TPM) system was established in September 2018 to build talent supply chains for more than 75 critical high-demand jobs in the commonwealth by July 2020. TPM unites employers within specific regions with the goal to supply talent across the business landscape. Though still in the early stages, the initiative has already gained traction: “We are excited to see how quickly the Talent Pipeline Management program is providing results,” said Kristina Slattery, executive director of the Kentucky Cabinet for Economic Development’s Office of Workforce, Community Development and Research. “In less than six months, we have over 120 companies involved that are providing Erran Persley, Commissioner of Business Development

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Kentucky is the first state to establish a public-private partnership like Talent Pipeline Management. The industry-led system works to build the talent pool for dozens of high-demand positions in the state across several key sectors.

real-time occupation projections that far outpace the demand growth we predicted. This information is going to allow us to respond to that demand in a way we’ve never been able to before.” The recently launched program has already grown to include 14 regional collaboratives throughout the state focused on job creation within the key industries of manufacturing, logistics, healthcare, construction, IT/ business services, and equine. The initial challenge for each group has been to establish the greatest needs within target industries. Leaders of the Health Careers Collaborative of Greater Louisville found that nearly 3,000 registered nurses will be needed over the next two years across 10 specialties. The group is currently establishing a relationship with local educators to build and train the future workforce to meet evolving needs within the medical field. Kentucky Cabinet for Economic Development Old Capitol Annex 300 W. Broadway Frankfort, KY 40601

Meanwhile, Construction Leaders of Central Kentucky estimate 273 commercial electricians will need to be added to the available workforce over the next two years. The collaborative found that half of the industry’s talent has historically come from high school students transitioning directly into the workforce. As such, the group has begun discussions with educators at the local and district level to recruit students to an electrician pathway that meets the industry’s specific needs. Kentucky is the first state to form this type of public-private partnership, and training has been provided for 40 of the commonwealth’s workforce leaders through the TPM Academy to implement the program statewide. To learn more about TPM, visit www.KYChamber.com

502-564-7670 or 1-800-626-2930 www.ThinkKentucky.com

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OPPORTUNITY KNOCKS IN KENTUCKY WITH

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A MULTIPRONGED APPROACH TO BUILDING A “SMART” FACILITY MANAGEMENT WORKFORCE New technologies in facility management and maintenance are changing the way the workforce will be trained.

he skills gap in technical fields is of major concern across the facility management, maintenance, and service industries. High rates of retirement, combined with fewer trained candidates to fill those roles, mean that as many as two million jobs could go unfilled in the coming years. To address the deficit, companies and educational institutions must work together to strengthen workforce development initiatives. This can include partnerships with technical schools, outreach at career

A Johnson Controls technician at work in a chiller room

fairs, and ramped-up recruiting efforts, but it is critical to get in front of the problem. There is not a one-sizefits-all solution to the skills gap, so a multipronged approach is necessary to increase participation in training programs and development of the skills necessary to compete in a new, diverse workforce where technologies are rapidly changing.

Awareness and Investment Decreased emphasis on technical careers and prioritization of obtaining a four-year degree have led to fewer people considering the option of a career in these fields. Educating our youth and young adults — while communicating the benefits of a technical career path and the various opportunities available — is the first step to help address this shortage. That’s why partnerships with high schools and technical schools are so valuable. These partnerships not only ensure that you have a larger talent pool, but in many cases, the partnership includes input into curriculum and equipment used during training. This participation in candidate education and training, even before the hiring process begins, ensures the best possible outcomes for organizations, employees, and customers. Continued education and training opportunities are also important drivers of retention. Providing insight into career growth and development are invaluable in garnering an engaged pool of not just job applicants, but also employees.

By Al Young, Vice President, Field Services and Installation Operations, Johnson Controls, North America 14 • WORKFORCE

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Investment in and prioritization of a person’s educational and professional experience can have real implications for prospective employees, particularly in historically underserved populations; this includes women (a recent Women in the Workplace study1 found that 40 percent of women in technical roles are the only women in the room at work) as well as veterans, many of whom already have the skill sets needed for technical careers due to their time in the armed forces. Programs like Veterans in Piping (VIP),2 — which represents a partnership between the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry (UA) and the U.S. military — work to drive awareness during service of

as well as energy use. Right now, 60 percent of those surveyed said they take chiller data with a paper and pencil, and most of those do so at least once per day.3 New equipment removes the need for time to be spent collecting data — it is now automatic. Familiarity with data gathered from these systems and the available analytics, as well as the ability to work effectively with both humans and machines, is quickly becoming a necessary skill set. Prioritizing investments in smart building systems leads to data collection and analysis on previously unprecedented scales. Actionable insights based on that analysis allow for changes to be made in operations that then result in benefits like higher efficiency,

THE NEED FOR DIGITAL transformation and the creation of smart buildings mean the skill sets required to be successful are evolving.

the opportunities available on return to civilian life. By prioritizing such initiatives, it is possible to fill the skills gap with diverse voices and experiences to gain valuable new talent. This can serve to drive the industry into the future, just as the increasing presence of new technologies can.

Smart Facility Management: Prepared Staff and Smart Equipment The need for digital transformation and the creation of smart buildings mean that not only is there a need for more people in management, maintenance, and service roles, but that the skill sets required to be successful are evolving. For example, facilities are beginning to utilize modern chiller technology to avoid emergency repairs and expensive setbacks. Newer smart chillers can analyze equipment performance and notify a facility manager when a chiller is operating at less than maximum efficiency. This has implications for operational efficiency

cost savings, and reduced downtime. In addition, HVAC technicians brought in to install and eventually maintain the technologies must be properly trained. These new technologies are changing the way the workforce will be trained in order to be able to work with, maintain, and service the technology. This is a critical moment for those seeking to hire employees in technical roles, as well as for anyone seeking a technical career. The skills gap is affecting every level of facility development, from construction to building systems maintenance to management. However, so is technology. By embracing the challenge head on, being honest about the root causes, and recognizing the opportunity to train a new, diverse workforce, it is possible to address the deficit and work to ensure that the new workforce is prepared for whatever advances the future may bring. 1 2 3

https://www.mckinsey.com/featured-insights/gender-equality/women-in-theworkplace-2018 https://www.johnsoncontrols.com/insights/2019/bts/working-with-veterans-to-createa-more-dynamic-future-workforce https://www.youtube.com/watch?v=tmT0KnCV0Gg&feature=share

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LOUISIANA

LED FastStart® develops custom workforce solutions for its clients that often benefit other clients as well.

Courtesy of LED FastStart

REIMAGINES WORKFORCE

ExxonMobil Baton Rouge employees train on augmented reality tools developed by LED FastStart® and local tech firms.

Fortune 500 leaders like ExxonMobil shape their future success through innovation. For a half-billion-dollar expansion In Baton Rouge, ExxonMobil enlisted Louisiana Economic Development to build an innovative workforce strategy. LED FastStart® designed a winning solution that harnesses the creative power of local tech firms Pixel Dash, King Crow Studios and 3D Media. Together, they developed augmented reality (AR) tools enabling ExxonMobil Baton Rouge trainees to learn in a safe manner. “We created an environment where they can conduct the actual training without having to put themselves at risk,” says Paul Helton, LED FastStart executive director. The AR tools allow trainees to face potential hazards in a virtual environment while removing the need to interrupt production at the ExxonMobil Polyolefins Plant. LED FastStart plans to expand its augmented reality/virtual reality training to other clients, while Louisiana Economic Development

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its e-learning modules are being used by dozens of clients. For Sleep Number’s technical support center near New Orleans, FastStart developed e-learning modules to explain trouble-shooting methods and build leadership qualities and performance standards. So effective were the tools, they were adopted companywide by the Minneapolisbased company. For Louisiana-headquartered Globalstar, FastStart developed training modules to familiarize new employees with the firm’s satellite communications products. The need was somewhat different for Danish firm LM Wind Power, a GE Renewable Energy company. When LM Wind Power established its Technology Center for the Americas in New Orleans in 2018, the company wanted a 360-degree feedback tool online, so team members could train and support one another in reaching performance standards. FastStart delivered the tool and dramatically enhanced LM Wind Power’s processes.

Upstate in Vidalia, Louisiana, Syrah Resources of Melbourne, Australia, is importing graphite from Mozambique and purifying it for battery anodes that will power electric cars. To attract the right mix of technicians, mechanics, and process operators, FastStart created a custom Syrah landing page and linked it to LouisianaJobConnection.com — FastStart’s innovative job-matching portal — while amplifying job opportunities on social media channels and connecting all of that to a physical job fair. “We’re all about solutions,” Helton says. “All our clients are expanding their workforces, yet each one of them faces unique challenges. Our goal is to solve those challenges with the smartest tool at our fingertips. Often, that means we create a new tool, and almost always it benefits other clients, too.”

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CMY

Finding talented, skilled workers is your client’s top challenge. That’s why LED FastStart® builds employee recruitment and training programs to meet their unique needs. It’s why we work proactively to get your client’s business up and running faster. Because their future can’t wait.

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11/12/19

INDUSTRY

AreaDevelopment-LED-WorkforceAd.pdf

MANUFACTURERS: MAKE DIVERSITY & INCLUSION INITIATIVES A PRIORITY As the U.S. demographic changes, manufacturers and other companies must step up their diversity and inclusion efforts in order to fulfill their workforce needs.

The term diversity and inclusion or “D&I” is more important than ever and serves a greater purpose. The U.S. demographic is shifting — the latest U.S. Census showed that 13.7 percent (or 44.5 million people) of the

Racial profile of U.S. Population, 2045 3.8%

0.9%

7.8% 13.1%

U.S. population is foreign-born,1 and by 2045, the U.S. white population is projected to be a minority at 49.8 percent, followed by Hispanics (24.6 percent), blacks (13.1 percent), Asians (7.8 percent), and multiracial individuals (3.8 percent).2 So, what does this mean? It means that public perceptions and demands around diversity are changing, and companies need to pay closer attention. Some business leaders do recognize that D&I efforts need to be stepped up further and are increasingly tying D&I to overall management performance, company innovation progress, and even the bottom line.

Manufacturing D&I Initiatives 49.8%

24.6%

White* Hispanic Black* Asian* Multiracial* Other * * Non-Hispanic members of race Source: William H. Frey analysis of U.S. Census population projections released March 13,2018 (Metropolitan Policy Program at Brookings)

And then there are some industries where they understand that D&I initiatives are crucial, but they may be struggling to implement these efforts within their workforce. The manufacturing sector is one that is currently trying to catch up. The manufacturing industry is traditionally more known to be white and male-dominated, which makes it even more difficult in trying to change its perception and attract a wider representation of non-white and female cohorts. Although women make up nearly half of the U.S. labor force (47.5 percent), in 2016 they represented only 29 percent of the manufacturing workforce.3 The industry has traditionally been seen as a “hard hats” type of job not amenable to women. But that is all changing. The manufacturing sector

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is undergoing a digital transformation journey that is creating new opportunities which leverage automation and digital technologies; however, this is also creating challenges in trying to fill those highly technically skilled positions with their current workforce. Realizing this, manufacturers have changed their approach on how they recruit, retain, and promote their workforce — including expanding their D&I programs. But, because of the long-held perception of the makeup of the manufacturing industry workforce, manufacturers have a steeper climb than others in trying to expand their D&I initiatives to create fundamental changes in their culture, while also aiming to create a more diverse workforce.

executive leadership effort look like? There are many forms of leadership that can take place — from public statements on D&I issues to the institution of training programs and establishment of policies, such as setting representation targets around recruitment and promotions — and even tying compensation, bonuses, and promotions to D&I performance. However, even though companies acknowledge the importance of D&I to their success, there seems to be a gap between the degree of commitment at the highest levels within organizations. For example, a recent PwC study5 found that while 87 percent of consumer and industrial products organizations surveyed agreed that D&I is stated value or priority, only 46 percent

D&I INITIATIVES are increasingly becoming embedded into organizations as a core business goal.

We at PwC wanted to see how companies were going about developing D&I initiatives, so we partnered with The Manufacturing Institute and interviewed chief diversity officers and D&I professionals from manufacturing companies, as well as from other industries.4 Our key takeaway from these interviews is that D&I initiatives are increasingly becoming embedded into organizations as a core business goal. There may be different ways of going about how that’s done — and companies are progressing at different paces — but it’s happening, as companies strive to cultivate innovation through building a more diverse workforce, in addition to securing and retaining talent in today’s tight labor market.

D & I E f f o r t s M u s t S t a r t f r o m t h e To p When talking with the D&I specialists who were interviewed for our report, all agreed that D&I success hinges on executive leadership. So, what does that

agreed that lack of diversity is a barrier to progression in their organization. The study also found that only 33 percent of industrial manufacturing and mining companies have a C-suite D&I leader.

I s Yo u r D & I I n i t i a t i v e a S u c c e s s ? Every company must have a clear picture of where their D&I programs are now and where they want to go. But how do you measure success? How do you know if your D&I programs are actually working and implementing a cultural change? D&I metrics are one way to measure success and are often used to create scores and benchmarks to track improvement, or lack thereof, and signal areas of attention. For example, we are increasingly noticing that companies are seeking to tie D&I involvement and effectiveness to overall compensation schemes, such as computing a D&I “scorecard” and using it to calculate an overall performance score that drives decisions around promotion,

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MISSISSIPPI

HAS THE FORMULA FOR BUSINESS SUCCESS Mississippi continues to prove to industry leaders around the world that the state has the formula needed for companies to achieve long-term growth and success. Mississippi boasts a skilled workforce — one of the state’s greatest assets — and a pro-business environment, which includes a low corporate tax rate, low cost of doing business, a seamless onestop permitting process, and quality workforce training programs. Economic developers and government leaders work together with the state’s corporate partners to best meet their needs and create new job opportunities for Mississippians. In October, Continental Tire’s new $1.45 billion commercial truck tire plant officially opened for business in Hinds County. Once at full capacity, Continental, the world’s fourth-largest tire manufacturer, will employ 2,500 workers at the Central Mississippi location. The company joins the ranks of Nissan, Toyota, Yokohama, Cooper Tire, and others, further securing Mississippi’s position as a leader in the automotive industry. Also, in 2019, aerospace company Relativity joined the ranks of spaceflight company SpaceX at NASA’s Stennis Space Center in Hancock Tracey Giles, Deputy Chief of Economic Development

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Grand opening of Continental Tire’s new $1.45 billion commercial truck tire plant in Hinds County

County by expanding its rocket component production and rocket engine testing operations, investing $59 million, and increasing employment to 200 workers. Relativity is the first and only company to integrate metal 3D printing, robotics, and software to build and launch rockets in days instead of years. These are just two shining examples of Mississippi’s continued economic success. To ensure the state continues its upward trend, the Mississippi legislature proactively works to enhance the state’s strong business environment so companies — new and existing — are encouraged to locate and expand in Mississippi. During the 2019 legislative session, the legislature reduced the amount of capital investment and minimum number of jobs required for aerospace companies and data centers — both of which have a strong presence in Mississippi — to qualify for incentives. Additionally, the Mississippi Development Authority, the state’s lead economic development agency, is authorized to issue $3 million in bonds for site Mississippi Development Authority Post Office Box 849 Jackson, MS 39205 800-360-3323 • Fax: 601-359-4339

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development improvements. Other business advantages include the Mississippi Works Fund, which allocates $50 million over 10 years toward strengthening workforce training to prepare Mississippians for the in-demand jobs of tomorrow, and the corporate franchise tax phase out, which eliminates the tax over a 10-year period starting in 2018. These strong business advantages, a robust incentives portfolio, and an integrated transportation network provide the right ingredients for corporate growth and success. Come see first-hand how a Mississippi location can be part of your winning formula. For more information, visit mississippi.org, or call the Locate Mississippi team at 1.800.360.3323.

tgiles@mississippi.org www.mississippi.org

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READY TO WORK

MISSISSIPPI IS READY. Ready to help train your employees with workforce training programs throughout the state. Just ask top companies like Nissan, Toyota, VT Halter Marine, or Continental. Donâ&#x20AC;&#x2122;t miss out on your opportunity to work in Mississippi.

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19-1002 - Area Development Workforce Ad.indd 1

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Women in Engineering 60 50 40 30

57%

salary increases, munication, which 22% 10 or bonuses. hopefully can 14% Measuring enhance D&I ef0 diversity — how forts by informing different employleadership of conTotal Women College Graduates Across All Disciplines ees are reprecerns and issues Women College Graduates Entering Field of Engineering sented — is noththat may arise. In ing new to most addition, holding Women Employed as Engineers organizations, but off-site D&I events measuring inclucan give particiSource: Society of Women Engineers, 2017 sion — i.e., the pants a chance to degree to which help build netan employee feels works with others valued, respected, possessing similar welcomed, and understood — interests outside the organization. We’re also seeing can be a challenge. Companies should start by capturhow ERG initiatives are cross-pollinating and working the status of their D&I programs and policies via ing together as stakeholders both inside and outside metrics on D&I-related employee recruitment, hiring, the company, suggesting their increasing power and retention, and promotions, and even employee exits. influence. Once those metrics have been established, businesses Diversity Will Spur Innovation should respond coherently to the outcomes of the variAs previously stated, manufacturers are finding ous programs and policies. themselves in a difficult position when it comes to hirE m p o w e r Yo u r E m p l o y e e ing a diverse workforce as the labor market tightens Resource Groups and STEM-related roles are hard to fill for this parThis finding was probably the most striking from ticular industry. For example, the Society of Women our report: After conversing with D&I professionals Engineers found that while 22 percent of all college for our survey, we have found the rising importance of engineering majors were women, only 14 percent of employee resource groups or ERGs and how they’re working engineers are women.6 As the sector continues along its digital transformation journey, manufacinfluencing companies from the grassroots levels and turers must find a way to become attractive employers affecting cultures upward and across organizations. in order to entice a diverse workforce that has the The creation of ERGs is not only opening opportuniSTEM skills needed to spur innovation. ties to share experiences, but also serve to advocate Manufacturers and other companies can also for positive change around diversity and inclusion. broaden their prospects to reach a more diverse workThe sheer number of ERGs is really impressive across force by nurturing relationships with outside groups or industries and suggests the whiff of a real movement. “workforce intermediaries” from educational instituERGs are also becoming important for enabling tions, federal and local employment agencies and noncompanies to draw vital insights that can guide comgovernmental organizations, and national professional pany policy around D&I issues and how to respond groups. Such efforts can also serve to close the skills to sociopolitical trends and events. Some companies gap, especially for industrial manufacturers and other are spreading the word on their D&I policies through sectors that are adopting advanced technology. conferences, meetings, and even small group discusAnother option to consider in forming a diverse sions, allowing employees to share their perspectives workforce is the attraction of foreign-born talent. The and also providing a platform for employers to clearly describe their expectations of the workforce. The purpose for all of this is to open lines of comContinued on page 27

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BRIDGING THE SKILLED TRADES GAP Public institutions and private companies are deploying innovative solutions to address the ongoing scarcity of skilled trades workers and narrow the nationwide skilled trades gap.

ike Rowe, the longtime host of the hit show Dirty Jobs, and vocal advocate for the value of blue-collar work and workers, once said, “I think a trillion dollars of student loans and a massive skills gap are precisely what happens to a society that actively promotes one form of education as the best course for the most people. I think the stigmas and stereotypes that keep so many people from pursuing a truly useful skill begin with the mistaken belief that a four-year degree is somehow superior to all other forms of learning.” While there are many reasons for the skills gap that has resulted in a national shortage of skilled laborers, Rowe’s reference gets at the heart of the problematic messaging that has been one of the primary issues driving this trend. Beginning in the 1980s, the way we have talked about careers in the skilled trades has been both overtly and implicitly dismissive. While going to college and continuing education beyond high school is perfectly admirable, there has been a troubling social and cultural stigma associated with not going to college. This idea, reinforced by institutions and individuals across society, has contributed to the erroneous notion that skilled trades professions are somehow less respectable or desirable. The way we think and talk about things matter, and because perception ultimately shapes reality, this dynamic has led to a significant and worsening national shortage of skilled trades workers. Along with that shift in messaging, we have seen a steady decline — and, in some markets, a wholesale breakdown — of the training resources and programs available to aspiring plumbers, electricians, carpenters, pipe fitters, painters, tile-setters, and other skilled workers. Whether because of budgetary shortages, misplaced priorities, or both, vocational training and classes in many schools have been eliminated. This fragmentation of the training infrastructure has left even those young people who aspire to careers in the skilled trades wondering where to go and find the training they need to move forward in their chosen profession. Another significant contributing factor to this critical shortfall is the Students participating at the Sachse continuation of big-picture demographic shifts that will vacate tens of Construction Academy event get handsmillions of positions in the next few years — solely from baby-boomer on exposure to the skilled trades.

By Todd Sachse, Founder and CEO, Sachse Construction 2019 • 23

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LASER FOCUS ON WORKFORCE DEVELOPMENT “We are working to move Missouri forward, and by focusing on workforce development and infrastructure, we can reach this goal.” — Governor Mike Parson

Workforce is unarguably one of the top priorities for Missouri’s Governor, Mike Parson — so much so that just one year after taking office, he restructured four state agencies in an effort to better align services and improve economic and workforce development in Missouri. In addition, he established Missouri One Start — a division within the Department of Economic Development with resources dedicated to recruiting, training, and upskilling workers. Developing talent isn’t new to Missouri One Start. Their dedicated, highly experienced workforce development team has already trained over 800,000 workers and is fully focused on workforce development in the Show Me State. They are on track to train another 42,000 this year. Personalization and flexibility are key in how the program works. One Start’s workforce experts meet with clients to find out exactly what type of training is needed, and let businesses have a say in how best to deliver the training via any combination of preferred training vendors, in-house staff, or a statewide

Courtesy of Ozarks Technical Community College

MISSOURI’S

Our comprehensive workforce development program ensures you have the right workforce, with the right skillset, at the right time.

network of community colleges, the State Technical College of Missouri, or a career technical center. This allows businesses to tailor training to their unique needs. For clients of the training program, a full suite of recruitment assistance is also available at no charge. From preemployment assessments and screening to hosting recruitment events, a dedicated team provides the resources needed to ensure companies have the right workforce, with the right skillset, at the right time.

In It for the Long Haul For businesses already in Missouri, there’s assistance for upskilling and recruitment, so employers remain competitive long after the ground breaking. “Business retention and expansion is a critical component to ensuring a strong economy. Through the resources provided by Missouri One Start, we will ensure our businesses have a skilled workforce to not only meet the demands of today’s workplace, but also tomorrow’s,” says Kristie Davis, director of Missouri One Start.

Missouri’s Talent Pipeline Apprenticeship Missouri keeps the pipeline filled with skilled labor across a myriad of high-demand jobs. Ranked second in the nation in the number of people placed in apprenticeships, the state currently has 15,189 active apprentices in 472 registered programs, involving more than 3,600 employers. For adults 25 or older who desire to return to school, the state’s Fast Track program provides grants to offset the expense of higher education. This financial aid program addresses workforce needs by encouraging adults to pursue a certificate, degree, or industry-recognized credential in an area designated as high need.

Kristie Davis, Director

Missouri One Start P.O. Box 478 301 W. High Street

Jefferson City, MO 65102 573-526-9239 MissouriOneStart.com

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FORWARD-THINKING private companies and industry partners are working to find new ways to spur interest in skilled trades professions.

retirement projections. More than three out of five construction firms are currently struggling to fill skilled trades positions, and an Associated General Contractors of America (AGC) survey1 recently reported that nearly 75 percent of firms predict additional shortfalls of qualified skilled trade workers in the near future. Those shortages have a very real adverse economic impact on businesses and communities. Construction and development now take more time and more money. The issue isn’t just about raw numbers, but also about skill and experience: fewer experienced workers means that construction teams tend to be less efficient and productive. In many markets, the total cost of construction — including labor and materials — is rising faster than the cost of occupancy. These factors are contributing to projects costing more to create up front than to actually rent out and maintain — an unsustainable pattern. Remarkably, nearly a third of billion-dollar manufacturers are facing estimated losses in excess of $100 million in the next five-plus years, due in large part to a shortage of qualified skilled personnel.

Partnerships and Possibilities Fortunately, some forward-thinking private companies and industry partners have begun to recognize the extent of the problem and are working to find new ways to spur interest and opportunity for young people in skilled trades professions. Some have partnered with civic entities and municipalities, especially in those markets where government and community leaders have recognized the urgency of the situation — and the value in taking coordinated action. In Michigan, for example, a statewide campaign called Going Pro has been implemented as part of an effort

to boost perception and showcase career opportunities in the skilled trades. The program uses grant monies to create public-private partnerships with employers to design training models that adapt to evolving employer demand. In the last four years alone, the state of Michigan has committed more than $72 million dollars in competitive awards to more than 2,200 Michigan companies through the fund, retaining 56,000 jobs and creating 14,000 new jobs in the process. Programs from nonprofits, like the Skilled Trades Enrollment Assistant Program (STEAP) from Detroit-based nonprofit Better Men Outreach, can also play an important role. STEAP provides tutoring and basic job training to prepare at-risk and formerly incarcerated individuals for skilled trades apprenticeships and job opportunities. In Detroit, A. Phillip Randolph Technical High School is showing how impactful educational institutions can be in promoting and popularizing skilled trades career opportunities. The school’s remarkable Construction Trades Career and Technical Education (CTE) program equips students with the skills they need to succeed in skilled trades careers. The CTE program not only provides Randolph students with the hands-on experience and training they need to operate equipment safely and skillfully, but it also teaches them valuable skills like reading blueprints — all coordinated with reading and math fundamentals. Founded four years ago in conjunction with local nonprofit partner Junior Achievement of Southeastern Michigan, the Sachse Construction Academy is an annual event that provides 500+ students from Detroit-area high schools with hands-on exposure to the skilled trades. Students participating in the event experience unique training opportunities, demonstrations, and interactions with dozens of subcontractors

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and skilled tradespeople from across the state. In addition to exercises with real-world tools and techniques, students are also introduced to skilled trade career opportunities. Attendees get the chance to meet with unions, vocational schools, a diverse range of experienced skilled trades professionals, and to apply for an online training scholarship from Schurtape. A job fair for young adults also helps connect young people with real job opportunities in real time. Perhaps most exciting, the Sachse Construction Academy has received support from government leaders and is working with a long and growing list of industry and trade partners, including national names like Home Depot and Carhartt. New local partners have signed on, including the Year Round Youth Services Program, an initiative funded by a new federal grant via Detroit Employment Solutions Corporation (DESC), a nonprofit that provides job placement for disconnected youth.

Moving Forward While more work is needed, programs like these are already having an impact. Together, civic, education, community, and business leaders can create the kind of synergies and opportunities that get young people engaged, involved, and inspired. However, there is more work to be done and more opportunities to make a difference. Community colleges can take ownership of this issue and lead the way in promoting and facilitating training for the skilled trades. Private companies could be creating and supporting more robust internship and training programs and coordinating with hiring commitments. Municipalities and civic and community leaders can also be working to invest in their own future by creating incentives for private organizations to provide those kinds of meaningful and engaging training and internship programs. The structure, coordination, and financial support from public and private programs and partnerships can not only provide much-needed training and hiring opportunities, it can also help change the narrative around the skilled trades. The skills gap is a uniquely American anomaly (we don’t see similar shortfalls in other countries). A quintessentially American mix of ingenuity, private businesses, and public institutions have the ability to solve the problem and close the skilled trades gap.

Manufacturers Continued from page 22

percentage of the U.S. population that is foreign-born rose from 9.3 percent in 1990 to 15.2 percent in 2017, as reported by U.S. News & World Report.7 Integrating this group of prospective employees could mean taking different approaches to recruitment, as well as making cultural changes to an organization, making it even more pertinent for organizations to have a strong and effective D&I program.

Best Practices Throughout the process of speaking with highlyregarded chief diversity officers and D&I professionals, we have uncovered some best practices in initiating and executing D&I initiatives as follows: • Get leadership to lead on D&I and transmit that message through all ranks of the organization. •M ake D&I a core (and daily) business performance issue — and not an isolated HR program. •M aster D&I metrics (create a dashboard including all D&I-related recruiting, hiring, retention, promotion and leadership data). •T ie D&I performance to overall performance/ compensation. •O rganize and empower D&I employee resource groups (ERGs). •C ross-pollinate ideas (across functions and geographies). •E nable free dialogue and carry out regular training around D&I. • Drive D&I to help close the skills/talent gap.

~ 1

https://www.nytimes.com/2018/09/13/us/census-foreign-population.html https://medium.com/@Brookings/the-us-will-become-minority-white-in-2045-censusprojects-d687eb3ad940 3 https://www.census.gov/newsroom/blogs/random-samplings/2017/10/womenmanufacturing.html 4 h ttps://www.pwc.com/us/en/industries/industrial-products/library/diversity-inclusionin-manufacturing.html 5 h ttps://www.pwc.com/gx/en/services/people-organisation/global-diversity-andinclusion-survey.html 6 h ttps://reentry.swe.org/wp-content/uploads/sites/3/2017/04/STEM-Re-entry-WhitePaper-Exec-Summary-and-Needs-Statement.pdf 7 h ttps://www.usnews.com/news/data-mine/articles/2018-05-01/immigration-inamerica-by-the-numbers 2

https://www.agc.org

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LEHIGH VALLEY

Lehigh Valley was one of the top-five fastest-growing regions under one million people in the United States last year and was the fastest-growing region of its size in the Northeast U.S. for a third consecutive year.

CONTINUES TO DRAW RESIDENTS & COMPANIES

PPL engineers using digital technology to meet the challenges of the future. PPL Corp., headquartered in Lehigh Valley, provides essential energy services to more than 10 million customers in the U.S. and the UK.

Nestled in eastern Pennsylvania, near New York City and Philadelphia, Lehigh Valley is home to over 670,000 people living in vibrant cities (Allentown, Bethlehem, and Easton), thriving suburbs, and charming small towns. Interstate highways connect the region to ports in Newark and Philadelphia, and to over 100 million people within a day’s drive. Proximity to the largest national markets and linkage to the most important commercial corridor in the country have made Lehigh Valley an increasingly important economic hub. Lehigh Valley’s gross domestic product reached a record-high $40.1 billion in 2017, with much of the growth driven by the region’s prospering manufacturing sector. The region’s more than 700 manufacturers account for $7.4 billion — or 18 percent — of the overall regional economy. The Lehigh Valley’s economy is bal-

anced and not dependent on a single sector. The region’s top four sectors are incredibly balanced and include finance, insurance, and real estate ($7.6 billion); manufacturing, education, and healthcare ($5.5 billion); and professional services ($5.2 billion). What’s happening in the Lehigh Valley is special, driven in large part by the strength of the region’s workforce and its growing ability to attract new talent. With over 345,000 people in the labor market representing all skill levels, the region’s ability to satisfy the demands of today’s employers is strong. Wages are very affordable compared with the region, offering companies the ability to access the nation’s best employees at a low cost.

high standard of living at a low cost, and tap into a rich history of innovation. As one of Pennsylvania’s fastest-growing regions, the area has seen steady population growth in the 18–34 age demographic. In fact, that group now makes up over 45 percent of the current labor force. Companies that come to Lehigh Valley enjoy the most affordable place in the most attractive market in the country, take advantage of a balanced economy run by innovation, and can recruit the talent they need from the thousands of skilled new arrivals each year and the thousands of college graduates the region produces every year.

People come to Lehigh Valley to connect to community, enjoy a

Matthew Tuerk Vice President of Economic Development and Marketing

Lehigh Valley Economic Development Corporation 2158 Avenue C, Suite 200 Bethlehem, PA 18017

MTuerk@LehighValley.org www.LehighValley.org

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610-266-2216

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Bosch Rexroth, Bethlehem, PA

lehighvalleymadepossible.com

#lvmadepossible

CULTIVATING TALENT FROM UNTAPPED COMMUNITIES By hiring from diverse and underserved communities, a company can boost innovation along with its bottom line.

he current U.S. labor market bodes well for workers: unemployment has been consistently low and demand for talent remains high. But this wreaks havoc for companies who face a talent shortage to fill vacant IT roles. In IT alone, the U.S. has an astounding 918,000 open roles. 1 Much of this job growth stems from digital transformation. As companies digitally transform2 and tech roles infiltrate all industries, corporations and hiring managers need help to fill vacant positions. It’s time to seek alternative pipelines and cultivate talent from untapped communities.

Dr. Arthur M. Langer is the chairman and founder of Workforce Opportunity Services. He is professor of Professional Practice, director of the Center for Technology Management, and academic director of the M.S. in Technology Management programs at Columbia University. He also serves on the faculty of the Department of Organization and Leadership at the Graduate School of Education (Teachers College).

Underserved communities, like people of color and veterans, traditionally face large obstacles to merely have access to the same opportunities and socioeconomic status as more privileged groups. This, however, does not mean that these underserved groups are incapable of doing fantastic work or learning the skills needed to thrive in the tech industry. This unfortunate misconception stalls companies when it comes to hiring from these untapped talent pools. At the nonprofit Workforce Opportunity Services (WOS), we work with people of color and veterans in underserved communities to train and place them into tech jobs at companies across the nation. With training and support, these workers can become part of the permanent structure of any company. At WOS, we are at the forefront of producing a supply of well-trained workers to keep up with the demand. We identify strong candidates from underserved communities, train them to master applicable skills — in areas like data analysis, software development, IT support, and more — and place them at top-tier companies like Prudential, United Rentals, and PSEG.

When it comes to hiring diverse populations, diversity has been shown, time and time again, to boost innovation.3 Diverse teams bring a stronger variety of voices to the table, and a variety of viewpoints are crucial in America’s booming tech landscape. Additionally, a culturally inclusive work environment makes your business more attractive — not just to a large population of Gen-Z job-seekers, the most diverse generation yet, but also to stakeholders. The future of work is going to look radically different in the next five to 10 years, and businesses will be best prepared if they follow these trends towards inclusivity and belonging.

https://www.cnbc.com/2019/11/06/howswitching-careers-to-tech-could-solve-the-ustalent-shortage.html 2 https://www.cio.com/article/3211428/ what-is-digital-transformation-a-necessarydisruption.html 3 https://www.forbes.com/sites/annapowers/2018/06/27/astudy-finds-that-diverse-companies-produce-19-morerevenue/#1b276f32506f

DR. LANGER consults with corporations and universities on information technology, staff development, management transformation, and curriculum development around the globe. Prior to joining the full-time faculty at Columbia University, he was executive director of Computer Support Services at Coopers and Lybrand, general manager and partner of Software Plus, and president of Macco Software.

By Dr. Art Langer, Founder of Workforce Opportunity Services 30 • WORKFORCE

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