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Workforce Development: The Economic Development Connection

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Title: Workforce Development: The Economic Development Connection


1
Workforce Development The Economic Development
Connection
Workforce Development
  • THE OHIO STATE UNIVERSITYS NATIONAL
    DISSEMINATION CENTER
  • Professional Development Speaker Series
  • November 19, 2001
  • Jeff Finkle
  • President and CEO

International Economic Development
Council
2
Workforce Development-The Economic Development
Connection
  • Why is Workforce Development Important?
  • Who is involved?
  • Trends and Cases
  • Conclusions

International Economic Development Council
3
Workforce -Economic Development Connection
  • Workforce development has become one of the most
    important economic development issues because
  • Knowledge has become the driving force of
    economic growth
  • There is a lack of skilled labor
  • Critical demographic shifts
  • Policy changes

International Economic Development Council
4
Demographic Changes
  • Major demographic changes are taking place in the
    US population
  • Aging
  • By 2010, number of workers 45-54 will grow 30
  • By 2020, almost 20 of the U.S. population will
    be 65

International Economic Development Council
5
Demographic Changes
  • Ethnic shift
  • According to the Office of Science and Technology
    Policy by
  • 2050, 74 of the labor force will be women and
    minorities, groups traditionally least prepared
    in science and math skills
  • 2010, 50 of all school children will minorities
  • 2020, 42 of all 18-24 year olds will be
    minorities, as compared to 30 in 1995

6
Economic Changes
  • 75 of net new jobs will be in executive,
    managerial and technical fields
  • Job growth will be in math intensive fields

International Economic Development Council
7
For Economic Development
  • Workforce availability factors, especially in
    high skill areas drives business location,
    development, and expansion decisions

International Economic Development Council
8
Community Economic Development
  • To connect workforce and economic development
    issues communities must
  • Combine and coordinate job creation and job
    placement activities more tightly
  • Find ways to involve their business sector in
    workforce development decision-making
  • Make better use of Labor market and other
    relevant information gathered economic
    development activities (i.e. database, retention
    surveys, regular interaction with business).

International Economic Development Council
9
Workforce Investment Act (WIA) of 1998
  • Workforce Investment Act of 1998 is the federal
    governments response to workforce development
    training challenges. Its importance stem from
    its requirements that
  • Economic developers play important role in
    Workforce Development Boards (WIBs)
  • System serve both employer and job seekers
  • Program be flexible to respond to local
    conditions

International Economic Development Council
10
Who is involved in Workforce Development?
  • Workforce development is provided, in partnership
    or alone, by
  • Businesses
  • Economic Development groups
  • Community Colleges and Universities

International Economic Development Council
11
Workforce Development Training Partners
Community colleges and Universities
The Essential Partnership Triad
Economic Development Organizations (EDOs)
Businesses
International Economic Development
Council
12
Businesses
  • Traditionally businesses represent the largest
    providers of workforce development training
  • businesses now use it competitively to keep their
    employees skills current and relevant

International Economic Development Council
13
Businesses
  • Businesses provide workforce development
    training in a number of ways
  • In-house capacity
  • Contract to third parties such as training
    professionals, and community colleges and
    universities
  • Pooling together with industry partners

International Economic Development Council
14
Economic Development Organizations
  • Act more like a broker in workforce development
    training.
  • reconcile labor demand and supply.
  • Provide workforce development training in concert
    with community colleges and universities
  • Use workforce development training as a
    competitive tool for their communities
  • Tap into large unused labor force (youth,
    hard-to-serve populations, etc.)

International Economic Development Council
15
Community Colleges and Universities
  • In recent years, have tried to adapt to new
    economy
  • have increased their partnership with both
    businesses and economic development
    organizations
  • tailor their programs to meet existing job needs
  • Work with partners to define different needs

International Economic Development Council
16
Economic Development
  • Workforce development partnership efforts should
    concentrate on
  • Serving needs of communities and their existing
    businesses
  • Make better use of community assets and resources
    (especially community colleges and universities)
  • Improving communitys overall economic development

International Economic Development Council
17
Economic Development
  • special efforts have to be made to assist ED
    clients such as
  • Hard-to-serve populations (i.e. youth, former
    convicts, etc.)
  • Smaller businesses, backbone of community, often
    have difficulty keeping up with fast- changing
    economic pace

International Economic Development Council
18
Workforce Development Training Trends and Cases
  • Current workforce development training trends
    include
  • Customized Job Training
  • Industrial Clusters
  • Business Consortia
  • Partnerships
  • State Initiated Networks

International Economic Development Council
19
Customized Job Training
  • Is tailored to the labor needs of businesses
  • Community colleges and private training groups
    are important providers
  • Funded by both public entities and private
    businesses or in combination

International Economic Development Council
20
Customized Job Training
  • Incumbent worker and small firm focus
  • Performance based contracting
  • a good way to help interested employees
    increase their wage

International Economic Development Council
21
California Employment Training Panel
  • Employers participate through a their
    contributions to California Employment Fund,
    created especially for the program
  • They get reimbursed for costs associated with
    developing and implementing customized training
    for new or existing employees
  • Reimbursements are made for employees who remain
    on the job 90 days or more after training

International Economic Development Council
22
California Employment Training Panel
  • Eligibility is limited to companies that
  • Contribute to the Fund
  • Face out-of-state competition and need to train
    or retrain new or existing employees
  • Need to upgrade workers in areas where there are
    skills shortage
  • Hire and train unemployed workers eligible for
    unemployment insurance
  • Have special training needs in areas such as
    defense conversion or emerging technologies

International Economic Development Council
23
California Employment Training Panel
  • ETP has helped
  • Employers
  • Increase productivity
  • Improve employer retention through training and
    career development
  • Employees
  • gain more meaningful employment
  • Increased wages

International Economic Development Council
24
Industrial Clusters
  • Industrial clusters are concentrations of
    interdependent, complementary and/or competing
    businesses that trade with each other. They
  • Act as powerful magnets for business location
  • Attract new suppliers that congregate nearby to
    increase their efficiency
  • Thrive on steady stream of skilled workers,
    finance, infrastructure and good business climate.

International Economic Development Council
25
Industrial Clusters
  • Regions and businesses use clusters in workforce
    development training to identify
  • Shared skill needs and standards
  • Alleviate concern over talent poaching
  • Develop joint training curriculum
  • Identify immediate and medium-term labor needs

International Economic Development Council
26
Connecticut Industry Cluster
  • Connecticut has initiated cluster initiatives in
    the following sectors
  • BioScience
  • Aerospace Components Manufacturers
  • Software Information Technology
  • Metals Manufacturing
  • Maritime
  • Agriculture Aquaculture
  • Plastics

International Economic Development Council
27
Aerospace Components Manufacturers (ACM)
  • Founded in 1999 by a core group of aerospace
    components manufacturers
  • Funding has 20-80 funding ratio from public
    and private sources
  • Goalstrengthening the state aerospace sector by
    improving the sub-tier suppliers community in
    three areas
  • Productivity
  • Knowledge
  • Skills and operating costs

International Economic Development Council
28
ACM Cluster AIMS
  • ACMs program has four main elements progressive
    manufacturing, workforce development, business
    practices and special projects. Its workforce
    development goals aims is to
  • Offer a standing curriculum to raise competency
    of incumbent workforce by
  • Launching workforce development team from member
    companies
  • Conducting sector-subjects specific training in
    areas such math and blueprint reading.

International Economic Development Council
29
ACM Cluster Results
  • The cluster has joined with other manufacturers
    to launch the manufacturing Resource Center with
    positive results
  • Eight participating companies reporting a net
    economic impact of more than 7.9 million
  • 54 companies participating in training and other
    center events
  • Increased participation of area high school in
    center training and events
  • Increased contact with smaller manufacturers
    (2000 in fiscal year 2000 alone).

International Economic Development Council
30
Business Consortia
  • Businesses that work together to achieve a common
    set of goals
  • Are used by small businesses with limited
    resources to overcome cost challenges in training
    new and incumbent workers
  • By businesses (especially small) in the same
    field to identify skill needs and invest in
    shared training

International Economic Development Council
31
Wisconsin Regional Training Partnership (WRTP)
  • WRPT is the regional training board for the
    greater Milwaukee area of Southeastern Wisconsin
  • It houses and promotes a series of sectoral
    training consortia, including the Wisconsin
    Manufacturing Training Consortium (WMTC)

International Economic Development Council
32
Case Wisconsin Manufacturing Training Consortium
(WMTC)
  • The Wisconsin Manufacturing Training Consortium
    (WMTC)
  • is the most developed of all the WRTP consortia
  • includes close to 20 firms covering
    approximately 30,000 workers
  • is concentrated in the metalworking and
    electronic controls industry

International Economic Development Council
33
Wisconsin Manufacturing Training Consortium (WMTC)
  • To be members of the consortium firms are
    required to
  • Benchmark a growing percentage of payroll to
    training frontline workers
  • Train according to standards set on a suprafirm
    basis
  • Gear hiring and internal labor market promotions
    to worker achievement on those standards
  • Administer the enhanced training budgets
    (resulting from their benchmarked contributions)
    through joint labor-management committees

International Economic Development Council
34
Workforce Development Training Partnerships
  • Workforce Development training Partnerships
    include close cooperation between and among
  • Businesses
  • Economic Development Organizations (EDOs)
  • Community Colleges and universities

International Economic Development Council
35
Partnerships
  • Businesses, like in the past, will continue to
    provide the bulk of workforce development
    training to workers
  • The success of their workforce development
    training efforts, however, will become more
    dependent on the level of their cooperative
    partnerships with EDOs, and community colleges
    and universities

International Economic Development Council
36
Case Semiconductor Industry-Education
Partnership (SIEP)
  • The SIEP partnership was launched in response to
    the high-etch labor shortage of the region. It
    includes
  • SEMATECH, the research consortium of the 10
    major U.S. semiconductor manufacturers,
  • Semi-SEMATECH, an association of more than 200
    industry suppliers

International Economic Development Council
37
Semiconductor Industry-Education Partnership
(SIEP)
  • SIEP includes
  • The Maricopa Community College District
  • Phoenix area EDOs
  • Phoenixs area vocational-technical high
    schools

International Economic Development Council
38
Semiconductor Industry-Education Partnership
(SIEP)
  • The first phase of SIEP, in 1996, was funded by
    a grant from the National Science Foundation
    (NSF). Since then, financing has been taken over
    by the participating businesses. The results
    have been overwhelmingly positive.

International Economic Development Council
39
Semiconductor Industry-Education Partnership
(SIEP)
  • Since the launching of SIEP in 1996
  • the areas community colleges have experienced
    increased enrollment
  • more industry suppliers and other high tech
    related products have relocated to the area
  • the partnership has extended its operations to
    many other communities (70) outside of the
    phoenix area

International Economic Development Council
International Economic Development Council
40
State Workforce Development Training Initiatives
  • State Workforce Development Training Initiatives
    are part of many states efforts to improve their
    business climate and overall economic
    development.

International Economic Development Council
41
California Business Resource, Assistance and
Innovation Network (BRAIN)
  • BRAINs mission is to
  • Develop and conduct assessment of human resource
    needs of their critical high growth industrial
    sector
  • develop and conduct resource inventory of
    service providers
  • Identify scope of each region
  • Identify gaps in service needed by region

International Economic Development Council
42
California Business Resource, Assistance and
Innovation Network (BRAIN)
  • State funded
  • Program and activities are performance-based
  • Develop plan, strategies and activities based on
    regional and local needs and conditions
  • Require a collaborative component between
    community colleges, businesses and local
    communities

International Economic Development Council
43
California Business Resource, Assistance and
Innovation Network (BRAIN)
  • Since its start in 1997, Brain has
  • Extended its network to more than 100 regional
    centers focusing on clusters in
  • Biotechnology
  • Multimedia
  • Environmental technologies
  • Helped participating businesses
  • Increase their wages
  • Increase their number of employees
  • Attain higher cost benefit ratios and ROI than
    other businesses

International Economic Development Council
44
Conclusion
  • Workforce development training will continue to
    play a critical role well into the future because
    the economy will continue to
  • Experience major changes
  • Have increasing need for skilled labor

International Economic Development Council
45
Conclusion
  • Workforce development training is a partnership
    effort that needs the active involvement and
    leadership of
  • Businesses
  • Local government
  • Local economic development players
  • Educational system

International Economic Development Council
46
Conclusion
  • Workforce development training needs to
  • Focus on both short and long term, respond to
    local conditions
  • Be flexible and adaptable to continuous
    changing economic conditions
  • Make effort to use all available resources of
    community

International Economic Development Council
47
Conclusion
  • A successful workforce development needs to be
    led by private industry in close cooperative
    Partnerships between with EDOs and CCUs and
    serve both employers and job seekers

International Economic Development Council
48
Conclusion
  • Workforce development training efforts need
  • Better Community coordination of job creation and
    placement services
  • To make use of flexible and reliable data and
    other ED information gathering tools

International Economic Development Council
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