BUILDING 21ST CENTURY SKILLS
WORK
FORCE ASSESSING THE
LOCAL MARKET PAGE 10
Special Supplement to Area Development Magazine
HOW TO BUILD A Sustainable
LABOR PIPELINE PAGE 4
Q2/2015
A Plan to CLOSE THE
SKILLS GAP PAGE 7
W O R K F O R C E IN M I S S I S S I P P I
WHERE CUSTOMIZED SKILLS TRAINING MEETS PRIDE IN A JOB WELL DONE. VT Halter Marine — Pascagoula, Mississippi
Mississippi’s skilled workforce is its greatest treasure. Mississippians have a “can-do” attitude and are driven by pride to do things right. Robust workforce training programs offered throughout the state equip Mississippi’s people with the necessary skills to get the job done. A company is only as good as its people, and that’s why more companies are choosing a Mississippi location to compete in today’s global marketplace.
© Mississippi Development Authority 2015
Learn more about the Mississippi advantage at mississippi.org/workforce.
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MISSISSIPPI IS A
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WE OFFER STANDARD &
MANUFACTURING Expansion Solutions Magazine, 2013
RIGHT TO WORK STATE
CUSTOMIZED
MISSISSIPPI RANKS
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FOR COMPETITIVE
SKILLS TRAINING LABOR COSTS Business Facilities Magazine, 2014
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Contents
I
n this Area Development’s second Workforce edition, we continue the discussion on how businesses are attempting to fulfill their workforce needs. JLL’s Matt Jackson and Shannon Curley say that although manufacturing employment in the U.S. has declined over the last few decades, the need for skilled manufacturing workers is still high — trumping labor and real estate costs. Consequently, when site selecting, a company needs to carefully assess a location’s workforce, notes Keith Gendreau of Cushman & Wakefield. It should understand a region’s workforce profile, training programs, and union activity. And, in response to the need to build a skilled talent pipeline, in the fall of 2014, the National Association of Manufacturers’ Task Force on Competitiveness and the Workforce presented an action plan to improve workforce preparedness and capabilities. Chris Womack, president of External Affairs for The Southern Company and a member of NAM’s board of directors, explains how NAM is turning its discussions into solutions with measures including the creation of “skills certifications” that should become part of traditional education. Area Development will continue to bring our readers more insight on these issues in the months ahead as increasing technology in the workplace continuously changes workforce requirements.
4. Building A Sustainable Labor Pipeline More companies are thinking through the long-term goals of training a sustainable supply of labor, and maintaining a productive workforce as manufacturing technology continues to evolve.
7. Mind The Gap
U.S. manufacturers now have a plan for closing the skills gap and opening the door to economic development.
10. Assessing A Location’s Workforce
Every labor market is unique, and there are many factors to consider beyond population size and unemployment rate.
Sponsors/Profiles 2, 16. Find Your Workforce Advantage in Mississippi
Mississippi Development Authority dramsey@mississippi.org
www.mississippi.org
14. Erie Economic Development Council
info@erieedc.com
www.erieedc.com
15. Dyersburg/Dyer County Chamber of Commerce ahester@dyerchamber.com
Exclusive Online Content… • The Location Factor Companies Must Get Right • Veterans — A Natural Fit To Close The Skills Gap Editor Geraldine Gambale editor@areadevelopment.com Art & Design Patricia Zedalis Web Designer Carmela Emerson Production Manager Jessica Whitebook Production Assistant Talea Gormican Publisher
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Valerie Krpata (ext. 218) valerie@areadevelopment.com Digital Media Manager Justin Shea (ext. 220) jshea@areadevelopment.com Business Development Matthew Shea (ext. 200) mshea@areadevelopment.com
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©2015 Custom Publishing Group of Halcyon Business Publications, Inc., Publisher of Area Development Magazine 2015 • 3
BUILDING A SUSTAINABLE LABOR PIPELINE More companies are thinking through the long-term goals of training a sustainable supply of labor, and maintaining a productive workforce as manufacturing technology continues to evolve.
I
s America truly experiencing a manufacturing renaissance? National statistics are cloudy — but there’s a reason for that. Some cities are booming with factory expansions and job growth, while others remain stagnant. The economic reality is that not all cities are experiencing this return to manufacturing as an economic driver; tech-friendly markets are clearly the “haves” while markets without a significant number of skilled workers are becoming the “have-nots.” On a national level, Gross Domestic Product (GDP) growth and employment figures seem to contradict each other at times, perhaps due to this dynamic. Looking at where investor dollars are flowing suggests that the jury may still be out on whether we’re experiencing a true national manufacturing renaissance — or if it’s limited to a few key regions.
Are the Jobs Coming Back? It’s no secret that the manufacturing sector has seen dramatic job loss over the last 30 years. While the mood is more upbeat these days for By Matt Jackson, Managing Director; and Shannon Curley, Vice President; Business Consulting Group, JLL 4 • WORKFORCE
the sector generally, jobs are only slowly coming back. After all, advances in automation and other technologies have changed the nature of the work and reduced the functions that humans must perform. An October 2014 article in Bloomberg Businessweek notes that the U.S. has added 600,000 new manufacturing jobs since the spring of 2010, during a time when companies have been moving certain operations back from overseas. However, those jobs comprise only 8.7 percent of the total labor employment in the U.S., down significantly from 15 years ago when it was 13 percent. The more labor-intensive manufacturing processes — think textile mills and furniture products — tend to stay offshore, where labor is cheaper. As you might expect, those same companies are also seeing lower-than-average GDP growth in the U.S. Typically, it’s the manufacturers with more capital- and talentintensive plants — such as computer and electronic products — that are investing in the U.S. That said, economic growth doesn’t necessarily translate to job growth. GDP growth is up 103
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The need
percent for electronics manufacturers since 2004, compared with 13 percent GDP growth across all industries. At the same time, more efficient manufacturing processes have kept employment growth at a slow pace, even when functions return to America. According to JLL estimates, even if companies add manufacturing facilities, there will still likely be a continued slide from 12 million manufacturing jobs today to 10 million in 2028. So, why is there such a buzz about the shortage of skilled labor? Because tech-savvy workers are hard to find. According to the U.S. Bureau of Labor Statistics, there were 9.6 million people unemployed in August 2014; that same month, 4.8 million jobs were left unfilled. This skills gap is generational; legacy manufacturing employees were trained for the labor-intensive jobs that moved offshore, not the technical jobs that are available now. As a result, the manufacturers expanding in the U.S. are generally going where the technically trained talent lives. For example, the high-growth computer and electronic manufacturing sector tends to migrate to California and the U.S. Northeast, prioritizing their need for skilled talent above high labor and real estate costs.
for a highquality workforce trumps high labor and real estate costs.
U.S. high-tech companies are quick to maximize new technologies using highly skilled talent.
Where Are Plant Investments Happening?
While the U.S. workforce is struggling to keep pace with evolving manufacturing processes, it is still very well positioned in the world and remains one of the largest recipients of foreign direct investment. The U.S. shale boom and the low price of natural gas have been a particular boon for the chemicals manufacturing industry. The American Chemistry Council reports that foreign companies account for 62 percent of announced capital investments in the U.S. chemical industry, with chemical-makers planning to invest a record $72 billion in U.S. plants, drawn to cheap and abundant natural gas in the region, according to Bloomberg. German-based BASF, one of the largest chemicalmakers in the world, is planning its most expensive plant to date on the Gulf Coast, hoping to leverage the cost advantages of having easy access to a natural gas hub. Texas, Mississippi, and Louisiana have all become more attractive targets for manufacturing plants, given their proximity to the Gulf of Mexico and the natural gas industry. In July, Area Development reported that China-based Yuhuang Chemical was investing $1.85 billion in a methanol manufacturing complex in St. James Parish, Louisiana, to take advantage of natural gas feedstock. Natural gas isn’t the only major draw to the U.S. market; so is having the ability to shorten the supply chain. As labor costs have gone up in China, manufacturers of heavy machinery and other heavy materials are finding multiple benefits in investing in the U.S., including shortened travel times to the end-market and lower transportation costs. JLL data finds that the East Coast is generally a more attractive area for large-scale manufacturing investment than the West Coast. One of the largest U.S. manufacturing investments in the last year was an announcement by China’s Shandong Tranlin Paper Co., which will invest $2 billion over the next five years into a new factory in 2015 • 5
Employment in High-Tech Manufacturing* 2000–2018 (Selected MSAs)
Employment (Thousands)
180 160 140 120
San Jose, CA Los Angeles, CA Boston, MA Dallas, TX
Thailand or Vietnam. Alternatively, if a New York, NY company requires 60 San Francisco, CA skilled labor and Chicago, IL 40 proximity to techni20 cally minded engineers, 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 higher costs are palatable, to ensure access *Includes computer and peripheral equipment, audiovisual equipment, to the talent required communications equipment, and semiconductor manufacturing for high-tech manufacturing success. Source: Moody’s Economy.com 2013 For other companies, it’s the proximity to the end customer Virginia. Readily available utilities, transportation, that matters most. These investments have generally and labor resources made it an attractive option. never left the U.S. What are the cost advantages ofRegional optimization and reshoring isn’t just fered by moving closer? The growth of e-commerce good for America; one of the biggest beneficiaries has put more pressure on supply chains, and speed will be Mexico. More companies are eyeing Mexico is increasingly a competitive advantage in some for its low costs, while still offering proximity to the sectors. The proximity of a manufacturing facility to North American consumer market. Recent news stodistribution centers or end customers can have a ries have touted Mexico as an emerging powerhouse dramatic impact on site selection strategy. in luxury car production, hosting new factories for Regardless of the driving forces, relocating a faBMW, Audi, and Mercedes-Benz since 2012. South cility is a major expense and involves significant risk. Carolina and Tennessee have been the recipients of Trade-offs between financial and non-financial risks foreign automotive manufacturing investments in will need to be made. As investments start to come recent years as well. back into U.S., more companies are thinking through the long-term goals of training a sustainable supply What Does It All Mean? of labor, and how they will continue to maintain a If the manufacturing process still relies heavily productive workforce as technology continues to on people doing the work instead of machines, then evolve the manufacturing process. companies will zero in on sites with low-cost labor The real impact of reshoring to the U.S. remains environments. Escalating labor costs in China — to be seen and will play out in coming years. Signifiwhere costs have doubled in the last 10 years — are cant facility investments are already in progress, so a big reason more companies are re-evaluating their we expect some headlines touting jobs returning to location choices. However, where low-cost labor is America. But is this a true manufacturing renaisa determining factor, the U.S. reshoring impact is sance? Certainly, for some communities. But for minimal. Typically, the choice is made to re-locate a the nation as a whole, only time — and ultimately, facility to another low-cost labor environment, like corporate location decisions — will tell. 100 80
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6 • WORKFORCE
MIND THE GAP U.S. manufacturers now have a plan for closing the skills gap and opening the door to economic development.
I
n the past few years, American manufacturing has experienced a renewal that is nothing short of astonishing. Overall output has risen by 18 percent, and manufacturing employees are working more hours per week than they have in the past 70 years. But while U.S. manufacturing is experiencing a renaissance of sorts, employers are facing a new challenge — a shortage of qualified job applicants. According to The Manufacturing Institute, roughly 600,000 domestic jobs in manufacturing remain unfilled due to a lack of qualified applicants. The Great Recession ended more than five years ago, but many Americans are still unemployed because they lack necessary skills. As a result, vital manufacturing positions sit vacant. This is not news for those who work in economic development, regardless of the region of America they call home. Anyone who has tried to place a 21st century plant in a state or county is aware of the misalignment that currently exists between the competencies required by industry and the skills of current job applicants. In a recent survey, nearly 80 percent of U.S. manufacturers reported a “moderate” or “severe” shortage of qualified applicants, and these short-
ages exist in every state and every sector of the manufacturing community, according to The Manufacturing Institute. For the fifth year in a row, the most difficult positions to fill both nationally and globally are in skilled trades. As you well know, modern manufacturing requires a new skill set, one that is more technical and flexible than in the past. It’s not enough for today’s workers to be proficient in math and science. They must also be able to adapt to an ever-changing digital landscape — one with new technologies, applications, and computer programs. This skills gap threatens not only the long-term viability of U.S. manufacturing but also the U.S. economy itself.
NAM Steps Up to the Plate The National Association of Manufacturers (NAM) recognizes that this gap is a pervasive issue nationally and must be addressed with lasting commitment. As a member of NAM’s board of directors, I can say we take it as our responsibility to make sure manufacturers have the talent to fill today’s — and tomorrow’s — jobs. That’s why NAM formed its Task Force on Competitiveness and the Workforce early last year. Its goal was to develop concrete proposals
By Chris Womack, President, External Affairs, Southern Company 2015 • 7
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Technology
regarding how the private sector and government can work more effectively together to ensure that the United States has a globally competitive workforce. I served on the task force with 16 other NAM board members, representing both large and small manufacturers. Our charge was to find ways to bring manufacturers together to improve workforce outcomes, looking at not only the skills gap but also the implications of an aging skilled workforce that is retiring and leaving manufacturing faster than it can be replaced. We met for nine months. We held hearing-style discussions to identify common problems across industries and explore solutions, experiences, and best practices. We met with economic development experts and think tanks, as well as local, state, and national leaders, from educators to members of Congress. The effort was completed in the fall with very good results. We realize now, more clearly than ever, that we
and the economy change more quickly than education systems.
What percentages of your manufacturing roles require the following skill levels?
Unskilled 20% Highly Skilled 35% Skilled 45%
Source: Accenture 2014 Manufacturing Skills and Training Study
8 • WORKFORCE
must align education, economic development, workforce, and business agendas to develop the talent necessary for success in a global economy. Unfortunately, our current education system appears almost completely disconnected from the economy at large.
Putting New Value on Skills Training
Technology and the economy change more quickly than education systems, particularly today, which means education and labor market institutions are perpetually out of sync. Not so long ago, it was assumed manufacturing would grow overseas because of cheaper labor. As a result, we are still recovering from the effects of an education era that pushed career-oriented or technical curriculum into the non-credit side of academia, sending a message to students and parents about the value colleges place on such programs. These non-credit courses were defined as “job training” or “career” and “technical” education and weren’t considered substantive education by most students, parents, and even school administrators. A wall was built between skills training and education by institutions on both sides of that divide. Yet, these are the very skills that will lead to a job or career that actually exists. Federal policymakers took a crucial first step toward resolving this issue last summer when Congress passed the Workforce Innovation and Opportunity Act, which will enable job seekers to access employment, education, training, and support services needed to succeed in the labor market. It will also match employers with the type of skilled workers they need to compete globally, while streamlining existing workforce development programs. While only one in four jobs in 1970 required more than a high school education, the task force found that approximately 70 percent of today’s jobs require not only a high school diploma but also skills-based training. Employers are increasingly requiring workers to have advanced training in science, technology, engineering, and mathematics (STEM) areas.
How severe is your shortage of qualified applicants?
Additionally, all workers — even those in entry-level positions — must have “soft” skills considered necessary for productivity, such as a teamwork mentality and conflict management skills.
Turning Discussions Into Solutions
Skilled Resource Shortage
Low 21%
Moderate 40%
Severe 39%
Highly Skilled Resource Shortage
Low 18% Moderate 22%
Severe 60%
A key discovery for us was that the most successful Source: Accenture 2014 Manufacturing Skills and Training Study workforce initiatives, thus far, have been led by manufacturers who have aligned themselves sess the basic skills identified by manufacturers as to speak with a unified voice. These alliances have necessary for a career in manufacturing. enabled industry leaders to set aside natural comThese skill certifications can and should become petitive tendencies to address this common need. part of a traditional education system. ManufacturThey have been able to speak out about workforce ers will develop outreach programs to ensure that challenges, assess common skill deficits, and create secondary students, parents, and guidance counsela plan for their region. Essentially, they have turned ors see modern manufacturing as safe, sleek, and discussions into solutions. technology-driven. Using these real-world success stories, the task The toolkit takes advantage of NAM’s social media force developed a toolkit and a step-by-step guide to message that manufacturing equals opportunity. Our help manufacturing leadership effect change at the #WeAreMFG campaign uses the power of video and grassroots level. These materials provide specific social media to introduce young people to the new steps and best practices for establishing a manufacface of manufacturing: a career path that is highturer-led workforce development program. tech, high-paying, and full of exciting opportunities The first step is for individual manufacturers to — pointing out that manufacturing workers earn, identify their own skills gaps and long-term hiring on average, more than $77,000 in salary and benneeds. Manufacturers then must collaborate within efits each year, compared with a national average of their local communities to identify the key compearound $60,000 for workers in all industries. tencies needed for new hires to succeed in today’s The productivity, talent, and innovation of the advanced manufacturing operations. Manufacturers men and women who make up the manufacturing carry significant weight in local communities, and workforce have fueled the American economy for despeaking with a unified voice regarding workforce cades. Our workforce has been, and should remain, needs is essential to engaging and aligning key our competitive advantage. The future is bright, stakeholders — community leaders, educational but only if we have workers capable of producing institutions, and local and state officials — to develop leading-edge products. a plan for local workforce training. And finally, the The skills gap cannot be bridged overnight. And toolkit helps manufacturing grow a pipeline to ensolving this challenge cannot be handed off to govsure a sustainable supply of skilled talent. ernment or educational institutions. We also can’t Building the pipeline will require engagement launch a solution and put it on automatic pilot. The with secondary school and community college long-term success of U.S. manufacturing will deeducators to, in essence, reform education. NAM pend on broad, systemic change and ongoing comhas already created a breakthrough skill certification mitment from the manufacturing community. It will system that is nationally portable and based on inrequire time, effort, and resources, but if we work dustry-recognized credentials. The training required together to tackle the problem head on, success will for these credentials will certify that individuals posbe our eventual outcome.
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2015 • 9
ASSESSING A LOCATION’S WORKFORCE Every labor market is unique, and there are many factors to consider beyond population size and unemployment rate.
S
ite selectors are frequently asked questions such as, “Where would my business have access to a workforce that meets my cost and skill requirements? What will the availability and cost of labor be in five years?” Assessing labor market suitability for a new or expanding operation involves more than just researching the area population size and unemployment rate. Other considerations should account for an understanding of competitive wage positioning to better attract talent, an assessment of the depth and concentration of targeted skills, an understanding of evolving demographic attributes, as well as measuring the level of competitive labor demand and capitalizing on local workforce-training resources. A comprehensive approach addresses these and other labor-market considerations through analysis of published statistics, and fieldbased research (employer interviews with firms employing similar skills). The goal is to uncover potential nearand long-term operating risks and to find the location that best supports the broader location decision and commitment. By Keith Gendreau, Consulting Manager, Cushman and Wakefield, Inc.
10 • WORKFORCE
No Two Labor Markets Are The Same While unemployment rates can be a general indicator of workforce participation levels, they are by no means a definitive answer in assessing a region’s ability to accommodate additional employment demands. Since the recession was declared “over” in June 2009, employment in the United States has grown by 6.3 million jobs (4.5 percent change), and the unemployment rate has fallen from 9.7 percent to 5.4 percent in the same period. However, the job uptick has impacted regions of the United States differently, and not all areas have benefited. Broadly speaking, as employment demands increase, workforce supply should equal or exceed the job growth, or tightening labor conditions will prevail. Such resulting conditions are typically more profound in smaller metro areas and may produce increased wage pressure, higher turnover, and elongated recruiting times. On this basis, metro areas across the United States that appear to be experiencing higher levels of tightening labor market
conditions total approximately 80 and include regions such as Cleveland, Ohio; Elkhart, Indiana; Fargo, North Dakota; Midland-Odessa, Texas; and Youngstown, Ohio.
Understanding Regional Workforce Profiles Beyond measuring labor supply/demand indicators, assessing a region’s degree of skillset specialization is critical in order to effectively scale operations to the desired headcount. This is particularly important for industries that are in high demand (e.g., trades, healthcare, and information technology). As an example, if a company were looking to hire a high volume of experienced welders, it would be beneficial to measure the volume and concentration (relative to the United States) of existing welders and quantify the number of graduates from related trade programs. Locating in an area offering both greater supply and concentration of these requisite skills may help shorten recruiting time and mitigate turnover. Building a staffing profile as it pertains to the most numerous and/or critical positions will better enable the quantification of related talent in a
given location. Once complete, the staffing requirements (i.e., job functionality and prerequisites to hire) can be best matched to standard occupation titles defined by the U.S. Bureau of Labor Statistics. Proper wage positioning is also an important contributing factor to ensure a successful hiring experience and can better position the long-term operating outlook. Across the United States, wages can vary up to 35 percent for the same position, particularly within blue-collar related positions. Researching market pay rates can be accomplished through subscription-based resources or the U.S. Bureau of Labor Statistics, and should be coupled with additional primary research (i.e., interviews with comparable employers). Over the past 10 years, the annual wage increase for production-related occupations has averaged 2 percent per year, while average wages for management, business, and financial-related occupations have grown at 2.3 percent per year. In recent years, however, signs of a strengthening economy are further evident with annual wage increases in excess of the 10-year average (2.2 percent and 2.8 percent, respectively, Q3 2013 to Q3 2014).
UNION ACTIVITY — Petitions For Election, 2014* (total petitions filed: 2,143)
Most Active States
Most Active Unions
California
288
Teamsters
462
New York
269
Electrical Workers
163
Pennsylvania
157
Operating Engineers
131 130
Illinois
151
Machinists and Aerospace Workers
New Jersey
103
Service Employees
91
Michigan
76
Food and Commercial Workers
90
Maryland
67
Steelworkers, Paper, Rubber, Manufacturing, Energy Workers
69
Ohio
66
Security, Police, and Fire Professionals
62
Texas
62
Laborers
57
Washington
62
SEIU United Healthcare Workers East
41
Source: Labor Relations Institute; period from Jan. 20, 2014 to Jan. 20, 2015
2015 • 11
Identifying Trainable Labor
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Right-towork legislation is just one factor to consider.
Another component in assessing a region’s labor market is to understand the demographic and socio-demographic attributes of the population base. This includes factors such as age, income, family and life stage, degree of urbanization, educational attainment level, and occupational tendencies. Cushman & Wakefield’s approach in formulating a trainable labor profile benchmarks a company’s existing employee roster and identifies common employeedemographic attributes for top performers and other cohorts of interest. The results are impactful and can help select labor markets that best resemble key preferred attributes.
Geography Matters Beyond broader metro- or county-level statistics, area site positioning is a critical factor in attracting and retaining talent. As simple as the concept seems, an operation’s long-term success is at risk by not locating more proximate to key labor resources. Why? • Elongated employee commutes expose higher attrition risk. • Above-market wages may be necessary to gain market visibility. • Direct competitors could “intercept” the targeted workforce supply via competitive site positioning. As an example, a recent project in which Cushman & Wakefield was evaluating labor market suitability for a 500-employee distribution center in a western U.S. metro area found hourly wages for material handlers to be $1.00+ higher in an industrial park just 15 miles away. The wage premium was uniformly implemented by park tenants to better attract and incentivize warehouse workers to make longer commutes to the industrial park. Comparable warehouse employers located closer to the more urbanized area did not recognize the wage premium. Other site-positioning factors that may impact recruitment include physical barriers (e.g., river/bridge 12 • WORKFORCE
crossings, roadway bottlenecks, train track crossings, mass transit connectivity, etc.) or political barriers (e.g., the negative perception of crossing a state or county line, income tax implications, etc.).
Union Activity
Union membership in the United States has steadily declined over the past 36 years. According to UnionStats.com, private-sector membership has fallen from 21.2 percent in 1979 to 6.7 percent in 2013. Coupled with the decline is a growing trend of state legislative changes concerning an individual’s right to decide whether or not to join or financially support a union (referred to as right-to-work legislation). Currently, 24 states recognize right-to-work legislation (largely across the southern United States, Great Plains States, and the Rocky Mountain region). Recently, two states (Indiana and Michigan) with traditionally higher levels of union membership passed right-to-work legislation. Other states that are considering similar changes include West Virginia, New Mexico, and Wisconsin. Moreover, several conservative groups have initiated a movement to change right-to-work laws on a local level in states where such legislation is not recognized. In Bowling Green, Kentucky, for example, the Warren County Fiscal Court approved a right-to-work ordinance in 2014 that would allow employees represented by a union to opt out of paying union fees. Right-to-work legislation is, however, just one factor to consider when locating or expanding an operation. Additional research is suggested concerning petitions for election certification/decertification, union-election activity, and a review of existing union contracts at relevant employers and industries. A summary of the most active unions and states concerning petitions for election in 2014 are shown in the accompanying chart.
Workforce Training Partnering with an area college or university to establish apprenticeship programs or customized
workforce training programs can help make a positive impact on recruitment and worker retention. In West Michigan, for example, a cluster of approximately 20 sewing firms realized the need to proactively replenish a retiring and experienced workforce of industrial sewers. In conjunction with economic developers from The Right Place, Inc., Grand Rapids Community College developed a curriculum to address the training need. The program received financial support from corporate investors to offset student tuition and equipment purchases. Many states have taken action to address the hiring and skilled-worker needs of employers. While the list is extensive, highlighted below are recent notable changes in the past 2014 states’ legislative sessions. Georgia: The Zell Miller Grant covers the full cost of tuition for eligible students in certificate or diploma programs at the state’s technical colleges. Additionally, the state boosted funding to provide more tuition assistance to students enrolled in certain industry training programs. Iowa: The legislature introduced an Apprentice-
ship Training Program Fund and provided additional monies to support the state’s Pathways for Academic Career Education and Employment (PACE). Wisconsin: The Fast Forward program was allocated $35.4 million in workforce training funds to be used for grants to technical colleges to reduce waitlists for programs in high-demand fields. Tennessee: The legislature created the Tennessee Promise Scholarship, which allows students to attend community or applied technology colleges for free.
In Sum Every labor market is unique. Evaluating a region’s labor suitability for a new or expanding operation should consider many factors beyond population size and unemployment rates. Understanding the interconnectivity of topics pertaining to competitive demand, pay practices, attrition, applicant flow/quality, geographic site positioning, union activity, benefit offerings, and training resources is important and will better inform a location commitment decision.
LOCATION . LOCATION
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LOCATION . The best LOCATION on the web to help with your corporate LOCATION needs. The best LOCATION to start your site and facility search. The best LOCATION to stay on top of industry news. The best LOCATION for the freshest and most relevant industry produced studies and research papers.
Providing What Others Don’t
Visit www.areadevelopment.com 2015 • 13
Erie Economic Development Council
Helene Jewett Director of Development •••
Erie Economic Development Council 500 Briggs Street, Suite 200 Erie, Colorado 80516 720-541-7760 info@erieedc.com www.erieedc.com
The greatest resource in Erie, Colorado, is our people, with nearly 53 percent of adults holding a bachelor’s degree or higher, well above the state and national levels. Our young and active residents are predominantly in the scientific, technical services, educational services, healthcare, and social assistance professions. Erie is committed to supporting aviation, bioscience, financial services, IT-software, and the healthcare and wellness industries. Companies like Magnum Plastics — an injectionmolding manufacturer of medical components and supplier to the number-one kidney dialysis entity in the world — have grown in Erie because they
14 AREA0249.indd • WORKFORCE 1
know the opportunities Erie’s location and amenities provide. Your choice of employees and majestic sites is wide open in Erie, located in the Front Range of the Rocky Mountains just 30 minutes north of Denver, 35 minutes west of Denver International Airport (DIA), 15 minutes east of Boulder, and among world-class universities and research labs. Employees are attracted to Erie for the balanced life available to them with a multitude of recreational options, high-quality educational services for themselves and their families, a variety of new housing options, and great employers for whom to work.
17/04/14 6:28 PM
Dyersburg/ Dyer County Chamber of Commerce
Allen Hester, CCE, CEcD, President/CEO ••• Dyersburg/Dyer County Chamber of Commerce 2000 Commerce Avenue Dyersburg, TN 38024
731-285-3433 • Fax: 731-286-4926 ahester@dyerchamber.com www.dyerchamber.com
Dyersburg/Dyer County is the regional hub of a 10-county area, including parts of Tennessee, Missouri, and Arkansas. Dyersburg State Community College has an Advanced Manufacturing Program. This program’s courses provide workforce development training and are specifically designed to provide individuals with skills needed to meet industry demands in advanced manufacturing. The courses in this program include Advanced Programmable Logic Controllers (PLC); Basic Electrical; Motors and Motor Controls; PLC; Hydraulics and Pneumatics; and OSHA. Tennessee College of Applied Technology Newbern now has a Plastic Injection Molding/ Robotics course. Students will receive a certificate at the end of each trimester. The first trimester
earns the Quality Assurance Technician Certificate and the second trimester earns the Manufacturing Technician Certificate. The third and fourth trimester courses are based on the desired diploma — Plastics or Robotics. The Plastic Injection Molding concentration will receive a Plastic Engineering Technician Certificate for the third trimester, and those completing the fourth trimester will receive a Master Plastic Engineering Technician Diploma. The Robotics concentration will receive a Robotic Automation Engineering Certificate for the third trimester, and the fourth trimester will receive a Master Robotic Engineering Technician Diploma. Students can receive a Master Manufacturing Engineering Diploma by taking all required course work for both concentrations.
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+36.0819, -89.3375
2000 Commerce Avenue • Dyersburg, TN 38024 Phone: (731) 285-3433 • Fax: (731) 286-4926 ahester@dyerchamber.com • dyerchamber.com
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Find Your Workforce Advantage in Mississippi
A growing number of global companies are finding the competitive advantage needed for success in Mississippi. The state’s supportive business climate and collaborative partnerships combine to create an environment that spurs growth in today’s marketplace. Mississippi’s new and existing companies benefit from the state’s productive workforce, streamlined one-stop permitting process, competitive operating and energy costs, and robust transportation network.
David Ramsey Global Business Division Director Mississippi Development Authority ••• P.O. Box 849 Jackson, MS 39205 1-800-360-3323 dramsey@mississippi.org www.mississippi.org
Community College to provide specialized workforce training, including an on-site training center, to equip workers with the skills necessary to immediately begin production on day one of the plant’s operations.
Mississippi’s four research universities further strengthen the state’s competitive workforce advantage by offering access to the latest research and development advances across a broad range of sectors, including Mississippi knows that access the aerospace, automotive, “Rolls-Royce is investing in America because of our collective innovation, competitiveness, to a superior workforce is a advanced materials, energy, and cooperative spirit, and we find the state deciding factor when companies and healthcare industries. of Mississippi is the perfect location to expand operations,” commented James M. seek to locate or expand existing our Abundant R&D opportunities Guyette, Chairman, President, and CEO of operations. As a result, the state are available through the Center Rolls-Royce North America on the opening of the company’s second jet engine test stand in is committed to developing for Manufacturing Excellence Hancock County, Mississippi. and maintaining a worldat the University of Mississippi, class workforce through partnerships with its 15 the Mississippi Polymer Institute at the University community colleges, all of which provide tailored of Southern Mississippi, the Institute for Applied workforce training solutions to meet companies’ Computational Studies at Jackson State University, unique needs. Through these collaborative efforts, and the Center for Advanced Vehicular Systems Mississippi’s workforce is prepared to meet — and and the Raspet Flight Research Lab at Mississippi exceed — companies’ expectations and ensure State University. In fact, the National Science many successful years of operations. Foundation has ranked Mississippi State University as one of the nation’s top research universities. Yokohama Tire Corporation’s new commercial truck tire manufacturing plant is slated to begin Together, Mississippi’s community colleges and production in West Point, Miss., in fall 2015. The universities are developing skilled, productive initial phase of the project represents a $300 workers that are focused on excellence and take million corporate investment and is creating 500 pride in a job well done. new jobs, with future expansions projected to increase the investment to more than $1.2 billion Discover your competitive workforce advantage. and increase employment to 2,000. Yokohama Visit www.mississippi.org or call the Locate partnered with the state and East Mississippi Mississippi team at 1-800-360-3323.
16 • WORKFORCE