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THE SKILLED WORKFORCE CRISIS

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Title: THE SKILLED WORKFORCE CRISIS


1
NCCER Program OverviewWorkforce Development In
A Challenging EconomyNC Department of Public
Instruction July 23, 2009Greensboro, NC
2
About NCCER
The National Center for Construction Education
Research, affiliated with the University of
Florida and 36 Industry Partners, is a
not-for-profit 501 (c)(3) education foundation
is the leading source of workforce development
resources for the construction, maintenance
pipeline industry.
  • Resources include
  • Accreditation
  • Instructor Certification
  • Standardized Industry-Driven Curricula
  • Nationally Recognized Skill Assessments
  • Industry-Recognized Credentialing Certification
  • Construction Career/Recruiting Resources
  • Construction Safety Front-line Management
    Education

2
3
Partners
3
4
Mission Statement
  • To build a safe, productive, and
  • sustainable workforce of
  • craft professionals.

5
2009 Forecast
  • McGraw-Hill Construction
  • Forecasts a 7.4 decline in construction starts
    in 2009, following declines of 12.4 in 2008 and
    8.0 in 2007.
  • U.S. Dept. of Commerce
  • Forecasts a 7.5 decline in total new
    construction put-in-place in 2009, following a
    6.3 decline in 2008.
  • The Portland Cement Association
  • Forecasts a 13.9 decrease in 2009, after
    adjusting for inflation.
  • FMI Corporation
  • Anticipates a 7.4 decline in total construction
    work in 2009.
  • The National Association of Home Builders (NAHB)
  • Forecasts housing starts to post their fourth
    consecutive year of double-digit declines, with
    another 16.2 drop in 2009.

All Sectors Go Negative Next Year As A Real
Recession Rattles Markets
6
Construction Employment, 12/07 12/08
WA
NH
MT
ND
ME
VT
MN
OR
ID
MA
WI
NY
SD
WY
MI
RI
CT
PA
NV
IA
NE
NJ
OH
IL
UT
IN
DE
CO
WV
VA
CA
KS
MO
KY
MD
NC
TN
AZ
DC
OK
NM
AR
SC
AL
GA
MS
LA
AK
AK
TX
FL
HI
6
0 to 4
-0.1 to -8.5
-8.8 to 22
7
State Construction Employment, 12/07 12/08
(U.S. total -8.5)
5 biggest losses
States with gains
Source BLS
7
7
8
Summary for 2009
  • Nonresidential spending -3 to -9
  • Residential -2 to 2 (SF up in 2d half, MF down
    all year)
  • Total construction spending -3 to -9
  • Materials costs -4 to 0
  • Labor costs 3 to 4.5

8
8
9
Total Construction Employment1990-2008
?
10
The Workforce Gap
Where 9th Graders Are Headed
Where the Jobs Are
vs.
28
20
will enter a 4-year college
require a 4-year college degree
will enter an associate degree program or
advanced training
require an associates degree or advanced training
32
65
10
15
will lack the skills needed for employment
require minimum skills for employment
30
will drop out of the system before completing
high school
Workforce 2020 Work and Workers in the 21st
Century
11
Educate the Workforce of Tomorrow
  • According to the U.S. Census Bureau
  • 8 of the 10 fastest growing occupations through
    2014 don't require a bachelor's degree
  • They require a 2-year associate's degree
  • or
  • Post-secondary training

11
SOURCE "Educate the Work Force of Tomorrow" by
Luke Bellsnyder Jon Fisher (03/06/2009)
12
Who will build our Projects?
  • 75 million baby boomers approaching retirement
    age
  • Beginning in 2005, approximately 8,000 baby
    boomers per day turn 60
  • 20 of the construction workforce will retire in
    the next 2 to 4 years
  • By 2010, over half of the United States
    population will be over 50
  • Youth Demographic

will shrink in comparison to adult population
lt18
gt65
will grow faster than total population
According to FMIs U.S. Construction Markets
report
13
Infrastructure
13
14
Population Growth
14
15
Workforce Challenge
  • Recruit 180,000 year
  • Replace 95,000 year
  • Recruit Train (new)
  • Train Retain incumbent
  • Build Owner support
  • Improve our industrys ability to attract new
    workers

16
Construction
  • Employs over 7 million
  • Unemployment a record 21.4 in 2009
  • 20 of workforce expected to retire in next 4-6
    years
  • Less than 10 of the workforce participate in
    formal training
  • Workforce to lose 1.4 million workers by 2012 due
    to attrition alone

17
Aerospace Technologies
  • Represents 3-5 of US workforce
  • 60 of workers are age 45 or older
  • Only 22 of workforce is under age of 35
  • In 2008, 27 of workforce qualified for
    retirement
  • 80 of survey respondents would not recommend
    this industry as a viable job option to their kids

18
Healthcare and Medical
  • Employs over 16 million
  • Unemployment rate above 4
  • 40 of workforce will be gt50 yrs old in 2010
  • Industry predicts
  • 12 shortage of workers in 2010,
  • 20 shortage of workers in 2015
  • 29 shortage of workers in 2020

19
Manufacturing
  • Nearly 14 million employees
  • Unemployment at 11.5
  • Wages and benefits are often 25 higher than jobs
    outside this industry
  • More than 80 of employers report an overall
    shortage of qualified employees
  • 46 of small and medium employers report that
    finding qualified employees is one of the most
    serious problems facing their company

20
NCCER History
  • Funded By Leading Industrial Contractors
  • Contributed Subject Matter Experts (SMEs)
  • Standardized 5 Key Industrial Crafts
  • Facilitated The Aspen Summit
  • Developed The NCCER National Standardized
    Training Process
  • Promoted Standardization Of Curricula
  • Required Portability Of Skills Through
  • The National Registry

21
Focus Areas
  • Craft Training
  • Image
  • Safety Training
  • Management Education
  • Research

22
National Sponsor Network
  • Includes
  • Associations
  • Contractors
  • Owners
  • Schools
  • Consultants
  • Corrections
  • Unions

Over 600 ATS, 350 AAC 3300 Schools
22
23
Types of Training
  • Industry Association - Apprenticeship
  • Construction
  • Regional/Corporate Training Center
  • Site/Project-Based
  • Owner Maintenance
  • Labor Union
  • Government Education
  • Department of Corrections
  • Department of Education
  • School-Based Vo-Tech
  • Secondary Vocational
  • Public
  • Charter High School
  • Adult Education
  • Public Post-secondary
  • Community Technical College
  • Career/Proprietary (For-profit)
  • Department of Labor Grant Programs
  • Manufacturer

24
Funding
  • Royalties from Contren Product Sales
  • Commission from Assessment Sales
  • Academy Master Trainer Programs
  • Other Income Donations, Manufacturer
    Sponsorships, etc.
  • National Training Service Agreements (15
    cent/effort-hour) and General 2-cent
    Contributions
  • Interest from Restricted Endowment

25
Contren Learning Series
26
Contren Connect
  • Core
  • Electrical
  • Carpentry
  • HVAC
  • Plumbing
  • EST
  • Construction
  • Technology

27
Standardization
  • Common instructional systems design (DACUM)
  • National subject matter expert (SME) committee
  • Competency-based
  • Instructor-led
  • Curricula have common format

28
Competency-Based Instructor-Led
  • Trainees learn skills at their own pace
  • Trainees accelerate through demonstrated
    competencies on both written and performance
    tests
  • NCCER-certified instructors verify successful
    test completions for credentialing through the
    National Registry

29
Common Curriculum Format
  • Module (Discrete task training unit)
  • Must pass written performance tests for each
  • Each module stands alone (task training)
  • Each module is part of an overall course of
    study (apprenticeship or time-based training)
  • Level Format
  • Modules sequenced in a logical
    instructional order for overall course study
  • Curricula meets DOL Office of Apprenticeship
    requirements for time-based training
  • Instructor and Trainee Guide for each module or
    level

30
NCCER Contren Learning Series
Construction, Maintenance, Pipeline Curricula
  • 30 Construction and Maintenance Craft Areas
  • 8 Pipeline and Pipeline Maintenance Craft Areas

31
New Curriculum Releases
  • Core Curriculum
  • Revision. Basic Safety now meets OSHA 10-hour.
    New (9th) module added entitled Materials
    Handling. Available now!

Welding Level One Revision Now includes
Plasma Arc Cutting Air Carbon Arc Cutting
Gouging. Pipe welding moved to Level 3. Available
now.
Managing Electrical Hazards New development.
Advanced Topic. Teaches how to apply the NFPA 70E
Standard. Available now.
32
2009 Contren Connect Highlights

Your Role in the Green Environment ActiveBook.
Available now! A new module designed for
entry-level craftsperson's to explain their role
in the green environment, basic methods of green
construction, the LEED Green Building Rating
System
Core Contren Connect ActiveBook with video,
video vignettes, active figures, and 3-D
animation. Available late summer!
33
Product Enhancements
  • By 2010
  • Transparency Masters phased out and replaced with
    color PowerPoints as titles revise.
  • All BW titles to include color PowerPoints
  • More value-added resources for the instructor to
    include secure access to exams

34
NCCER Contren Learning Series
Safety Orientation Field Safety Safety
Technology Introductory Skills for the Crew
Leader Project Supervision Project Management
35
NCCER Management Programs
  • Introduction to Crew Leader Web-based Program
  • Clemson University Programs
  • Project Supervisors Academy
  • Project Managers Academy
  • Safety Managers Academy
  • NAWIC Leadership Academy
  • Masters Degree Program
  • Craft Training for College Credit
  • Pima Community College partnership
  • Earn an AAS degree
  • Sponsors submit completed Contren modules to
    NCCER National Registry
  • 50 per credit hour

36
Curricula Available in Spanish
  • AVAILABLE NOW
  • Core
  • Carpentry Fundamentals
  • Scaffolding
  • Sprinkler Fitting 1
  • Field Safety
  • Safety Orientation
  • Rigging Fundamentals
  • Masonry 1
  • AVAILABLE 2009
  • Reinforcing Iron 1 Late Spring
  • Pipefitting 1 Late Spring
  • Concrete Finishing 1 Summer
  • Electrical 1 Summer
  • Carpentry Forms Summer
  • Drywall 1 Summer
  • Insulating 1 Fall
  • Spanish/English English/Spanish Construction
    Dictionary Late Fall

37
Contren Learning Series Investment
Total Contren Investment Through writers,
contracts, marketing, and operational costs Over
45,000,000 invested in Workforce Development
Over 90,000,000 invested in Workforce Development
38
5 Million Module Completions!
Entered February 2009
3,978,773
14 Months
lt 5 Yrs.
3 Yrs.
2 Yrs.
2 Yrs.
39
Assessment vs. Training
CRAFT TRAINING
CRAFT ASSESSMENT
ENTRY-LEVEL CRAFTSPERSON
EXPERIENCED CRAFTSPERSON
Journey-level Assessment
NCCER Core Curriculum
Assessed Training Prescribed
NCCER Craft Curricula
Optional
Certified (Written)
Certificate of Recognition
Performance Verification
Certified - Plus
40
National Craft Assessment Certification Program
  • Carpentry
  • Construction Technology
  • Core Introductory Craft Skills
  • Electrical
  • Heavy Equipment Operations
  • HVAC
  • Masonry
  • Welding
  • National Construction Career Tests (NCCT)
  • 32 Craft and Maintenance Assessments
  • 14 Pipeline and Custom Pipeline Maintenance
    Technician Assessments
  • 4 Crane Operator Certification Written
    Assessments and 4 Practical Examinations Covering
    13 Different Crane Types

41
Assessment Usage
Over 350,000 Assessments Taken
676,932 PV Tasks Submitted
42
Industry Recognized Credentials
  • Confidential
  • Portable Credentials
  • Documentation of training and skills attainment

43
Automated National Registry
  • Free, user-friendly way to manage training
    information online
  • Fast, easy access to training histories
  • Review and submit training records online
  • Receive Performance Verification credentials
    quickly
  • Timely transition of data to ISN for pipeline
    operatorqualifications

44
National Registry Statistics
Master Trainers
Craft Instructors
3,797
40,716
4,288
39,793
4,174
45
Return on Investment
Summary of Expected Training Benefits Identified
Through Study
45
SOURCE Construction Industry Institute, CII
Research Summary 231-1 (08/2007) "Construction
Industry Training in the United States Canada"
46
Investing in Training
  • Conclusion
  • For every 1 invested in training,
  • up to a 3 return on investment!

3.00
1.00
46
SOURCE Construction Industry Institute, CII
Research Summary 231-1 (08/2007) "Construction
Industry Training in the United States Canada"
47
2011-2015 Challenges
  • Multi Cross Industry Coalitions to address
  • Skilled Workforce Issues
  • Career and Technical Education Challenges
  • Drop out Rates
  • Outcomes
  • BROAD INDUSTRY MUST BE ENGAGED!
  • Elevate knowledge of skilled trades among youth
    population
  • Skilled Workers for every industry in short
    supplyCompete for a more educated consumer
  • Change messageEducation is essential, a 4 year
    degree is not
  • Engage potential drop outs with practical
    learning/a future
  • Educate Parents, Politicians, Administrators,
    Educators, Students, and the General Public

48
2011-2015 Challenges
  • Take Recruiting to the next LevelRecruit and
    Educate about our Industry as an Industry
  • Recognize Competition for Young people
  • Creative Outreach to receptive markets
  • Rodeos, NASCAR, Reality Spokesperson, etc.
  • Creative Outreach to traditionally less-receptive
    markets
  • Parents, Politicians, Administrators, Educators,
    Students, and the General Public
  • Educate, Educate, Educate and Promote!!!
  • Take Funding for Recruitment to next level
  • Creative Scholarship Fund Raising

49
2009 Start Spreading the Word
50
Build Your Future Campaign
  • Comprehensive education recruitment tool for
    the entire construction industry
  • Nationwide campaign consists of a fast-paced
    career video
  • Careers in Construction Week features promotional
    material a career Web site with job search
    functionality
  • Instrumental in linking contractors with schools
    in their local community

50
51
Cornerstone of Craftsmanship Campaign
  • Designed to help revive the meaning importance
    of craftsmanship re-instill pride,
    professionalism, respect into the construction
    industry.
  • This campaign spotlights organizations craft
    professionals for their commitment to
    craftsmanship the industry, while also
    educating the general public about the
    construction industry.
  • "The construction industry was built on a
    foundation of craftsmanship it is pride in
    craftsmanship that has made many generations of
    workers to follow in their parents' footsteps
    enter our industry."
  • - Don Whyte, NCCER president

52
National Center for Construction Education
Research
BUILDING TOMORROW'S WORKFORCE
THANK YOU
NCCER 3600 NW 43rd Street, Building G,
Gainesville, FL 32606 888.622.3720
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