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The Calm Before the Surge The Role of Community & Technical Colleges in the Coming Economic Recovery Robert Templin Northern Virginia Community College February 21, 2003 South Carolina Technical Education Association Conference. Deployment. Infrastructure. Environment. Workforce.
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The Calm Before the SurgeThe Role of Community & Technical Colleges in the Coming Economic RecoveryRobert TemplinNorthern Virginia Community CollegeFebruary 21, 2003South Carolina Technical Education Association Conference
Deployment Infrastructure Environment Workforce Technology in America • Over one-fourth of all productivity gains in the US in the last decade can be linked to new technology in the workplace.
Internet stocks Dow 30 Shakeout! (DJIA) 24,000 18,000 12,000 6,000 J J A S O N D J F M A M J J A S O N D 1999 2000 Source: theStreet.com (index plotted relative to DJIA), 2001
The New Reality: Worldwide IT Revenue Growth Rates, 2000 and 2001 (%) 40 30 20 2000 10 2001 0 -10 -20 PC Software Services Storage Network equipment Servers Printers Source: IDC, October, 2001
New Scenario: North America IT Spending Growth (%) 12.0 11.3 12 9.5 10 10.5 8 8.4 6 5.7 4 2.3 2 -0.7 0 -2 2000 2001 2002 2003 2004 New Scenario Previous Source: IDC, October, 2001; Forrester Research, 2002
Semiconductors Worldwide sales of semiconductors are expected to increase by: 2002 1.8% 2003 19.8% 2004 21.7% Source: Semiconductor Industry Association, 2002-2005 Annual Forecast (November, 2002)
Workforce Outlook 2003-2008 • Workforce decline / plateau thru 2003 • 2004 significant workforce dislocations/ emerging shortages of high-skill technology-enabled workers • 2005-2008 critical workforce shortages
Outlook 2004-2008: Economic Transformation • Application of emerging technologies to create new businesses and transform existing business sectors • Pervasive adoption of IT/Internet applications transforming traditional economic sectors
Business Sectors & Waves of Transformative Change • Information Technology/ Telecommunications • Biotechnology & Bioscience • Medical & Health Care • Learning, Education & Training • Manufacturing
Wireless Internet Technology • Beginning in 2003, Wireless Internet usage will increase at a compound annual growth rate of 73% • 84 million people in the US will plug into wireless Internet by 2005 Source: International Data Corporation, October, 2001
Wireless Internet Technology • “…annual spending on wireless and mobile network infrastructure to grow from $38.3 billion in 2002 to nearly $49 billion in 2007.” Source: International Data Corporation, Worldwide Wireless and Mobile Network Infrastructure Forecast and Analysis, 2002-2007 January, 2003
Mobile Users On The Web(Millions at Year end) 60% 1,000 AllUsers 900 Mobile Users 800 700 600 13% 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 Source: IDC, 2001
2004-2008: Tech Sector Growth “By 2004, low-cost PCs and a boom in broadband access will enable a new generation of devices, applications, and always-on wireless services. These advances, coupled with favorable economic conditions, will boost the tech sector by almost 12% in 2004.”(Source: Forrester Research, Oct. 2001)
Biotechnology • “Genomics has changed our ability to identify new targets for drug action; we have gone from famine to feast” SmithKline Beecham • Pfizer announced plans for 23 new drugs on the market during 2001 Source: PriceWaterhouse Coopers, 2001
Corporate e-Learning • “…the worldwide corporate elearning market… will grow from $6.6 billion in 2002 to $23.7 billion in 2006.” Source: International Data Corporation, Begin Act II: Worldwide and U.S. Corporate eLearning Forecast, 2002-2006 (January, 2003)
Top Technologies for the Decade • Personalized Information Products and Services • Genetic Research • “Intelligent” Materials • Medical Diagnostic and Treatment Tools • “Smart” Manufacturing Systems for Mass Customization • Nanomachines (Source: Batelle, 2002)
Technology-enabled workers will be the next productivity driver in most organizations Productivity
Strong Productivity Gains Linked to Internet Use “Companies integrating Internet technology into core business functions showed productivity gains three times greater than companies that did not.” (Source: PricewaterhouseCoopers, 2001)
Competitive Requirements 2004-2008 • The ability of a company to be competitive in this new business environment requires a capacity to improve productivity, to innovate, and to push innovations to market faster than competitors • This capacity depends upon the abilities of a skilled frontline workforce to harness the tools of technology and to quickly adapt to changes in a global economy
Market Realities 2004-2008 • There will be a growing shortage of high-skill, tech-savvy frontline workers across a number of industry sectors that will become a critical choke point in the growth of many businesses
Training Imperatives 2004-2008 • Waves of change will require rapid development and deployment of training programs on a national / global scale • Training must meet industry-driven specifications • Training / education support must be continuously available to the desktop in several languages
Community & Technical Colleges • New ways of behaving as a national network of community-based training and education providers and access points • Emergence of cluster consortia
Community & Technical College Opportunity • Positioning of community & technical colleges as linchpins in America’s global competitiveness • Creation of economic opportunity for many Americans left on the periphery
Community & Technical College Opportunity Industry Networks • Information Technology/ Telecommunications • Biotechnology & Bioscience • Medical & Health Care • Learning, Education & Training • Manufacturing
Community & Technical Colleges • Target business sectors • Identify community & technical colleges with strong relationships in targeted business sectors • Position community & technical college presidents inside industry associations before workforce dislocations develop
Community & Technical Colleges • Create industry champions for community & technical colleges as strategic partners in workforce development • Develop industry-driven training program responses to technology-enabled, high-skills workforce requirements
Community & Technical Colleges • Create a national curriculum development and training deployment capability • Provide national assessment and training support system available on demand to the desktop 24 X 7
Training Imperatives • Waves of change will require rapid development and deployment of training programs on a national / global scale • Training must lead to industry-driven certification • Training / education support must be continuously available to the desktop in several languages
The Calm Before the SurgeThe Role of Community & Technical Colleges in the Coming Economic RecoveryRobert TemplinNorthern Virginia Community College