1 building better partnerships: workforce and economic development presented by dr. tim alford...
TRANSCRIPT
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Building Better Partnerships:Workforce and Economic
Development
Presented by
Dr. Tim AlfordDirector, Alabama Office of Workforce
Development
May 5, 2006
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Workforce Development =Economic Development
Key Location Factors:
1) Workforce productivity
2) Workforce availability
3) Workforce costs
Louisiana State University Study - 2005
Relationship
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Old: Smart people go where the money is.
New: Money goes where the smart people are.
Conventional Wisdom
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What is economic development?What is economic development?
Process, not an event
Enhanced quality of life
Rising standard of living
New community wealth
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1) New business recruitment and attraction
2) Existing business retention and expansion
3) New business creation and start-up
Economic Development usually boils down to …
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Who Does Economic Development?
No single model.
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An Average Local Economic Development Agency
(E.D. Corporation, Chambers, Local Government, Regional Planning Councils)
• 4.1 FTEs
• $660,851 Average Budget
• 261,000 – Mean Population of Service Area
Source: NAWB
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Strategic Planning,
Research, Policy
Development & Info
Sharing
Facilities &
Location
Regulatory
Climate
Workforce
Prep &
Development
Infrastructure
Professional
Network
CapitalBusiness
Management
Tech & Product
Development
Product &
Process
Improvement
Marketing &
Sales
Source: Center for Regional Economic Development Competitiveness
“Organizing” Economic
Development
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What Defines Success?
Jobs created and retained
Investments made
Tax revenues
National Association of Development Agencies, 1999
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Economic Development Strategy
Old: “Shoot at everything that flies; claim everything that falls.”
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Strategy Trends
New:
Privatization of ED organizations Serving groups of firms rather than individual
clients Developing industry-specific expertise Increased use of web (for serving clients and
marketing) Partnerships with private firms for marketing and
delivering specialized services
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ED “System” Problems / Issues
Independent funding streams & requirements
Decentralized and chaotic;
competitive/collaborative
Tensions from mission creep & uncertainties
about policy roles and conflicting missions
Voluntary cooperation due to enlightened self
interest
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What Is Workforce Development?
Pre-service and in-service preparation for work.
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Strategic Planning,
Research, Policy
Development & Info
Sharing
Workforce
Prep / K-12
Education
Training /
Retraining
Retention
Assistance
Job and Skill
Analysis
Training /
Skill
Enhancement
Assessment Recruitment
and Pre-
Screening
PlacementRapid
Response
Layoff
Aversion
Source: Center for Regional Economic Development Competitiveness
“Organizing” Workforce
DevelopmentJob Seeker
Focus
Employer
Focus
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ComparisonPhilosophy / Language
Economic Developers Workforce Developers
Company-focused Individual-focused
(firms and industries) (occupations and skills)
Business background Social service background
Tax policy, Financing, Counseling, supportive
Real estate development services
Return on Investment,” ”Eligibility,” “self-sufficiency standards,”
“location quotients,” “terminations”
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Defining Success /Performance Metrics
Economic Development Workforce Development
Jobs created and retained Placement
Public investments made Retention after six months
Private investments leveraged Earnings after six months Tax revenues Skill attainment/credentials
Customer satisfaction Graduation rates
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What differences do you see between Workforce and Economic Development?
• Authorizing Federal statute(s) / Funding streams• Metrics for success• Historically different focus (job seekers vs. firms,
“blue-collar” vs. “white collar”)• Short-term vs. long-term focus• Culture / language
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Mutually Beneficial Activities
• What are we trying to accomplish together?• Who are the partners? providers? participants?
employers?• What are the resources / strengths / limitations /
weaknesses / capabilities of potential partners?• How can we leverage resources; avoid
duplication; achieve synergy?• What is our plan / strategy?
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Identify and Analyze Performance Gaps
InadequateTalent
Cause of Gap
WHAT ISPerformance Gaps WHAT
SHOULD BE
InadequateInfrastructure
InadequateCapacity for
Economic Innovation
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Framework
Attraction Retention Business
FormationLevel One: Governance:
Organizational Restructuring
Level Two: Strategic:
Alignment of mission, function, resources
Level Three: Tactics:
Targeted initiatives to achieve specific objectives
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Aligning Workforce andEconomic Development Plans
Reconciling what’s required vs. the “big picture”
Reconciling different geography, political
jurisdictions, metrics
Reconciling short-term vs. long-term perspective
Sharing data on employer needs and opportunities
Identifying common goals, activities
Using available resources efficiently and effectively
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Alabama’s New Workforce / Economic Development System
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Key Forces Shaping Alabama’s Workforce
Rapid technological change / job churning
• Chip speeds double every 18 months
• Storage capacity doubles every 12 months
• Bandwidth doubles every 6 months Rich Karlgaard, Forbes (2000)
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Key Forces Shaping Alabama’s Workforce
Business Must …
• Innovate
• Emigrate
• Evaporate
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Key Forces Shaping Alabama’s Workforce
Aging of the labor force
“Dear Friend”The enclosed AARP card has never been more valuable to you than it is today.”
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Key Forces Shaping Alabama’s Workforce
GlobalizationCheck out Korea …
• 47 million people• S. Korea is “…blessed with a computer-literate
population that reflects a heavy emphasis on math and science education… ‘an industrial battle plan for the future.’” (Financial Times 11/19/00)
• Suppressed entrepreneurial talent is finally being unleashed (Financial Times 11/19/00)
• Hyundai
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Key Forces Shaping Alabama’s Workforce
Alabama’s standard of living versus education and skills
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Key Forces Shaping Alabama’s Workforce, continued
1950 2000
College Degree
Skilled
Unskilled
About 20%
20%
60%
About 20%
65%
15%
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Residents* with Bachelor’s orResidents* with Bachelor’s orHigher DegreeHigher Degree
Residents* with Bachelor’s orResidents* with Bachelor’s orHigher DegreeHigher Degree
•Population 25 years and over.•Source: U.S. Census Bureau, Census 2000.
30.9
27.9
24.7
24.7
24.0
19.8
19.1
16.8
16.8
15.9
15.2
13.4
Huntsville
Auburn-Opelika
Birmingham
Montgomery
Tuscaloosa
Mobile
Alabama
Dothan
Florence
Decatur
Anniston
Gadsden
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
(Percent)
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Metro Area Median Family Income Metro Area Median Family Income FY2003FY2003
Metro Area Median Family Income Metro Area Median Family Income FY2003FY2003
$59,700
$54,200
$51,300
$51,300
$50,600
$48,600
$47,200
$46,900
$46,700
$44,700
$44,400
$42,900
Huntsville
Birmingham
Auburn-Opelika
Montgomery
Tuscaloosa
Decatur
Mobile
Alabama
Dothan
Florence
Anniston
Gadsden
$0 $20,000 $40,000 $60,000
Source: U.s. Dept. of Housing & Urban Development Office of Economic Affairs
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Key Forces Shaping Alabama’s Workforce
Integration of Special Populations
• Persons with disabilities• New immigrants• Former justice system offenders• Returning military veterans• Seniors• Out-of-School Youth
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Transition – From cheap land, cheap labor economic development strategy
To – Advanced manufacturing,
technical services – increased productivity
based on applied technology
Key Forces Shaping Alabama’s Workforce
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Automotive SectorMirrors These Trends and Issues
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If the automotive sector follows its expected business cycle, it will require 44,000 workers by 2025.
Source: Center for Business UA
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Of the 44,000 workers 13,000 are additional
Source: Center for Business UA
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2,100 of these additional workers will be high demand, multi-craft
maintenance occupations.
Source: Center for Business UA
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If sector expands by 25% and adds 1 OEM, the sector will need 70,000
workers by 2025.
(Roughly doubles current employment. Discounts replacement.)
Source: Center for Business UA
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1. Food Services and Drinking Places 123,992 $1,088
2. Professional, Scientific and Technical Services
88,758 $4,172
3. Administrative and Support Services 87,797 $1,908
4. Ambulatory Health Care 66,764 $3,416
5. General Merchandise Stores 61,739 $1,761
6. Specialty Trade Contractors 52,170 $2,682
7. Credit Intermediation and Related Activities
45,581 $3,347
8. Hospitals 43,956 $2,832
9. Merchant Wholesale Durable Goods 40,203 $3,608
10. Transportation Equipment Manufacturing
38,936 $4,367
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So …
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Alabama has been working to …
Develop a comprehensive, coordinated, demand-driven, customer-focusedworkforce development “system.”
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Current Initiatives
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Current Initiatives, continued
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OWD
Wag
ner-
Pey
ser
Dislocated W
orker
AIDT
DPE
DIR
Higher Ed
ES
LMI
K-12
TA
NF
TAA
Career EdYouth
WOTC
Perk
ins
Job C
orps
Career Tech
Vets
ETA
DOL
WIA
DOEHH
S
HUD
ABE
CASAS
AC
HE
GED
TA
BEESL
NEG
ESEMILE
AC
SI
Workforce Development Partners …
Rehab
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Career Tech
WOTC
Dislocated WorkerOWD
AIDT
DPE
Perkins
DIR
ES
LMI
ETA
TAA
TANF
K-12
Vets
HHS
DOE
WIA
DOL
ESL
GED
NEG
UI
ABE
HUDACSIEMILE
CASAS
TABE
ESL
ACHE
Career Ed
Wagner-Peyser
RehabJob Corps
Higher Ed
… working as a system.
Youth
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Regional AdvisoryCouncils
Purpose: To act in an
advisory capacity to the
Alabama Workforce
Investment Area Board which
is the designated entity for
the 65-county Workforce
Investment Area. The
Regional Advisory Council’s
role is to provide guidance
and input on regional
activities and services for the
Alabama Workforce
Development System.
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Focused Industry Training
FIT Curriculum includes:
Basic Education
Computer Skills
Problem Solving
Workplace Behavior
Manufacturing
Job Acquisition
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Alex City – Automotive Manufacturing Boaz – Health Care Cullman – Tool and Die Decatur – Advanced Manufacturing, Health Care Dothan – Health Care Hanceville – Advanced Manufacturing Mobile – Welding, Shipfitting Montgomery – Automotive Manufacturing Muscle Shoals – Advanced Manufacturing Scottsboro – Industrial Maintenance Technician Southeast Alabama - Aviation
Quickstart – Centers of Excellence in High Growth Sectors
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• Cluster Approach (e.g. Healthcare, Aerospace)
• 21st Century Technician
(e.g. Industrial Maintenance)
• ATN Alignment (Incumbent Worker Training
Provider Advanced Manufacturing, Lean, Six
Sigma, etc.)
• Marketing - Directory
Initiatives, continued
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• One-Stop Career Centers – Business
Services Approach
• Better alignment – Economic Development &
Workforce Development
Initiatives, continued
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Incumbent Worker Training
More than 100 Alabama businessescurrently in program
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Focused Industry Training Alabama Certified Worker
WorkKeys Career Readiness Certificate –Bronze Level
WorkKeys Career Readiness Certificate –Silver Level
WorkKeys Career Readiness Certificate – Gold Level
Worker Credentialing
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Realignment of all public workforce development programs with applied job skills outcomes using WorkKeys®:
Adult Education WIA Youth Alabama Technology Network K-12 Career Tech Incumbent Worker Training Community College
Worker Credentialing, continued
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State Workforce Development Plan
CRC Proposal
CRC Implementation Plan
visit theOffice of Workforce Development
website:
www.owd.alabama.gov
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WORKFORCE:The New Imperative in Economic Development
Office of Workforce Development