Thursday, June 5, 2008

Roy Smith, Regional Workforce Development Coordinator

Iron Range Resources/Minnesota State Colleges and Universities

• Arrowhead Growth Alliance

• Private Sector Advisory Committee

Result: Joint Regional Workforce Development Coordinator

Why Now?: The Economy

•Competition for skilled workers

•Increased demand for products and services

•Large Scale Projects on the horizon

•Renewed recognition of regional interdependence

•Retirements

•Decline in emerging workforce/ aging workforce

Percent Change in NORTHEAST, MN Projected Population by Age Group (2005-2015)

Source: U.S. Census Bureau

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+

"Future WorkforceEntrants" The "Echo Boom"

Declining Pool of"Skilled Workers"

The "Baby Boom" & OlderPopulation

Age Group↓ 4.7%↓ 4.7% ↑ 27%↑ 27%

Percent Change in NORTHEAST, MN Projected Population by Age Group (2005-2025)

Source: U.S. Census Bureau

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+

"Future Workforce Entrants"The "Echo

Boom"Declining Pool of"Skilled Workers"

The "Baby Boom" &Older Population

Age Group↓ 5.5%↓ 5.5% ↑ 60.4%↑ 60.4%

DEMOGRAPHICS

Median Age (2000)

40.8 41.142.2

43.644.3

35.4 35.3

30

34

38

42

46

50

Western Central Quad Cities East Range Northeast MN US

---------------------- SUBREGION ----------------------

Age

Source: 2000 U.S. Census

Older population

Source: MN Department of Employment & Economic Development and U.S. Census Bureau: Local Employment Dynamics (LED)

Minnesota Industries with the Highest Proportion of Workers Age 45+ Includes Government - 2004.

- Only Industries that Employ 5,000 or More Workers in Minnesota -

62.6%

62.4%

54.6%

52.1%

51.0%

51.0%

49.8%

48.3%

46.7%

46.4%

45.7%

45.4%

44.4%

44.2%

44.1%

43.1%

42.9%

42.6%

42.3%

41.1%

36.9%Minnesota - All Industry - Average

Ambulatory Health Care Services

Computer and Electronic Product Mfg.

Real Estate

Machinery Manufacturing

Chemical Manufacturing

Hospitals

Primary Metal Manufacturing

Fabricated Metal Product Manufacturing

Electronic Markets and Agents/Brokers

Heavy and Civil Engineering Construction

Truck Transportation

Religious, Grantmaking, & Civic Organizations

Public Administration Programs

Electrical Equip., Appliance, and Component Mfg.

Educational Services

Paper Manufacturing

Air Transportation

Utilities

Mining (except Oil and Gas)

Transit and Ground Passenger Transportation

Age 45 to 54 asPercent of Total

Age 55 to 64 asPercent of Total

Age 64+ asPercent of Total

75,000 Replacement Jobs

Over the Next 10 Years,

Not Counting…

• Mesaba Energy $2,000,000,000• Minnesota Steel Industries, LLC $1,650,000,000• Duluth Metals $ 800,000,000• Franconia Minerals Corp. $ 616,000,000• PolyMet Mining Corp $ 379,600,000• KeeTac $ 300,000,000• Mesabi Nugget, LLC $ 235,000,000• MN Power Boswell Energy Center $ 200,000,000• Laurentian Energy Authority $ 82,000,000• Taconite Harbor Energy Center & Laskin Energy $ 40,000,000• Northshore Mining Co. $ 22,000,000

• Total $6,324,600,000

Opportunities on the Horizon

A New Iron RangeA New Iron Range

STUDY PURPOSE

9 Development

Projects

Projected Job Growth: Scenario 1

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008 2009 2010 2011 2012 2013 2014

Nu

mb

er

of

Jo

bs

New Permanent Jobs Temporary Jobs

STUDY PURPOSE

4 Development

Projects: MN PowerMn Steel

Mesabi NuggetPolyMet

Projected Job Growth: Scenario 2

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008 2009 2010 2011 2012 2013 2014

Nu

mb

er

of

Jo

bs

New Permanent Jobs Temporary Jobs

Opportunities Galore

Life-long Employment vs Life-long Employability

Aerospace

Taconite

Pulp & Paper

Power Generation

Non-Ferrous Minerals

Steel ProductionVendors

Transportation

CORE SKILLS

A.A.S. Industrial Technology

Mining Emphasis

Power Generation Emphasis

Process Specialist Emphasis

Pulp and Paper Emphasis

Maintenance Emphasis

Customized Training

50% of the workforce in 2025 are already in the workforce today

30% of our workforce is either un- or under- employed

Mission Statement

“Develop an organized, comprehensive, coordinated regional response to the development of the

large projects”

LeadershipTeam

Strategy Team

ProjectsTeam

WorkforceTeam

HousingTeam

Community Resources and

Readiness Team

OpportunitiesDevelopment

Team

Strategy Team

Projects Team

Workforce Team

Housing Team

Community Resources and Readiness Team

Opportunities Development Team

Questions?

Comments?

Contact Information:

Roy Smith

roy.smith@state.mn.us

218-744-7334