Industry Partnerships 101: What, Why, How and Impact

1. Industry Partnerships 101: What, Why, How and Impact July 10, 2013 Part I of 3-Part EARN Maryland Webinar Series Presented by Lindsey Woolsey

2. Ground Rules for the Live Webinar: 1) All participants are in listen-in mode. 2) To ask a question, please type it into the chat box to the right of your screen. 3) We will answer questions at the end of the presentation. 4) You can test that function now by introducing yourself in the chat box. 5) This a one hour webinar. 6) We will have a 35-40 minute presentation and leave the remaining time to address the questions that you submit in the Chat Box.

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5. Today’s Industry Partnerships: • Are employer driven • Are regional • Are convened by a credible third party • Act as a coordinating body across multiple education, workforce development, economic development and other programs • Create highly customized responses to a target industry’s needs, and therefore highly accurate responses • They are about more than workforce training • Treat employers as partners, not just customers • Are NOT a grant program, a short term project, a passing fad; they are a long term partnership

6. THEY ARE DIFFERENT FROM: • Your local workforce investment board • Your regional or city economic development board • Your Chamber of Commerce • An industry association • Your Community College Advisory Boards

10. Why Industry Partnerships? • There is increasing debate about a skills mismatchin our economy: by 2020, nearly two out of every three U.S. jobs will require some postsecondary education and training, but 42% of adults in the U.S. (25-64) have no PSE credential. • 64% of companies say they cannot find qualified applicants for management, scientific, engineering or technical positions. • -McKinsey Survey • 67% of small and midsize manufacturers report moderate to severe workforce shortages, and they predict this will get worse not better. • -National Manufacturing Institute Survey • We are witnessing deep and long-term impacts from stagnant job growth: Jobseeker to job ratio in 2013 is still 3-to-1. • We must address these challenges with fewer resources: steady declines in investment since the eighties. • Federal employment and training expenditures (non-veteran) down. • Higher education enrollments/tuitions up; appropriations down.

11. What’s our response? • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Historically: Train & Pray • Workforce Development • Economic Development

12. What’s our response? • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Today: Career Pathways • Workforce Development • Economic Development

14. What’s our response? • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Career Pathways • Workforce Development • Economic Development ? Designs by

15. What’s our response? • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Career Pathways • Workforce Development • Economic Development Historically: Business Attraction Designs by

16. What’s our response? • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Career Pathways • Workforce Development • Economic Development Today: Industry Clusters Designs by

18. What’s our response? • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Career Pathways • Workforce Development ? • Economic Development Industry Clusters Designs by

19. What’s our response? • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Career Pathways • Workforce Development • Historically: Customized Business • Training + Job Matching • III. Economic Development Industry Clusters Designs by

20. What’s our response? • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Career Pathways • Workforce Development • Today: Sector/Industry Partnerships • III. Economic Development Industry Clusters Designs by

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23. Workforce Training Inevitably is a Central Focus • Why? Because it’s always on the minds of business, in every industry • How is Industry Partnership Training different from “customized job training?” • Not a one-to-one relationship with an employer; it’s a relationship with the regional industry • There’s a give-and-take; you partner with employers • What level of training are we talking about? • All levels: it depends on the industry’s needs • But IP’s are a highly effective vehicle for low-income/ low-skilled worker advancement

26. Greater Metro Denver Healthcare Partnership, CO Challenges: • Surging demand for HC services • Rapid facility expansion • Difficulty filling positions • Employers being asked by too many programs, councils, program staff to partner/help Solution: • One Greater Metro HC Partnership • 7 Major Hospital Systems • 8 Educational Institutions • 4 Economic Development Orgs • 3 Workforce Investment Boards • Activities: • Narrowed highest priority need down from 145 different occupations to 4: • Nursing (ADN, RN, BSN) • Laboratory Technologists • Medical Laboratory Technicians • Surgical Technicians • 5 New Education and training pathways to direct employment in middle-skilled, higher wage jobs • Impact: • Exceeded all training and placement goals • Single point of contact for industry • Pooled resources and expertise • Surprise by employers that they shared problems and that solutions better implemented as a group • Regular discussions about HC policy in region and state

27. Power Generation Skill Panel, WA “The Power Generation Skill Panel has effectively met the needs of employers, workers, and the training system through collaboration and focused work on critical issues.  By meeting the demand driven skills needs of industry we are all more competitive.”--Bob Guenther, IBEW Local 77 • Convened by the Centralia Community College • Involves major power generation plants (coal, hydro, • and wind), plus major public utilities around the state • Key partners are Labor, community colleges, workforce Boards, and industry experts • Products include: • 17 articulated “skills standards”manuals for key occupations • Shared purchase of OJT key curriculum • Revised apprenticeship program • Creation of hands-on training facility at an un-used nuclear power plant

28. Cochise Utilities Partnership, AZ • Problem: Sulphur Springs Valley Electric Cooperative (SSVEC) realized no local pool of skilled line workers • Cost: Recruiting from outside the area expensive, and relocating workers risky • College could not create a program for just one company – no economy of scale • Convener: SSVEC • Corporate partners: SSVEC, Sierra Southwest Cooperative, Apache Nitrogen Products, Southwest Gas, Valley Telecom, Cox Communications • Public partners: Southeast Arizona Workforce Connection, Cochise Community College • Outcomes: • New 1-year Utility Industry Certificate • Industry guest speakers and instructors • Company sponsored, for-credit internships • Shared job fairs across corporate partners • Company-to-company networking formerly non-existent “Getting approached by a peer company was a breath of fresh air, someone who is actually a competitor. The resulting utility program and certificate would not have happened without that outreach. And there’s so much more to do.” – Elaine Babcock, HR Manager, Southwest Gas

29. The Green Alliance (Energy Efficiency, Renewable Energy Manufacturing), PA • J&J Mechanical, a small commercial HVAC company, quadrupled their employee base as a result of expanded connections to residential retrofitting needs = 20 NEW JOBS • Maccabee Industrial, a steel fabricator, expanded product line to include windmill skeleton construction = NEW PRODUCT LINE, 10 NEW JOBS • Gerome Manufacturing, steel fabricator, expanded wind mill parts production, added new product line to product brackets for construction of green buildings = NEW PRODUCT LINE, 18 NEW JOBS • Therm-O-Rock East, Inc., manufacturer of vermiculite(material used to insulate batteries) discovered through the Partnership that the material could be used in retrofitting insulation, as well as in green soil for potted plants and gardens = 2 NEW PRODUCT LINES, 20 NEW JOBS • Tri-State Biofuels, a small woodstove pellet manufacturer, connected with Marsalis Shale oil and gas drilling companies via the Partnership, researched uses of wood pellets as absorber of drilling waste, and invented a new product. = NEW PRODUCT LINE, 25 NEW JOBS = TRIPLED SAWDUST PURCHASES FROM LOCAL SAWMILLS • World Kitchen, formerly Corningware, now makes pyrex glass for solar panels. • Via Partnership networking, added new production line to meet regional demand = NEW PRODUCT LINE = 60 NEW JOBS * Launched in 2010, over 153 jobs created by Summer 2012

30. How many IPs should one region have? • Depends on your region’s labor market • Never duplicate IPs • Coordinate across geo-political lines • Actual boundaries of “region” may vary depending on target industry – be flexible • The State of Maryland should have multiple Healthcare IPs, Manufacturing IPs, Logistics IPs, etc.

31. Sector Strategies Coming of Age: • EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT • Education Career Pathways • Workforce • Development • III. Economic Development Industry Clusters Designs by

35. WHAT’S THE LIFE CYCLE OF AN INDUSTRY PARTNERSHIP? • They can last for years • They change constantly • Each one looks different • But there are common elements

36. This slide created by Collaborative Economics, Inc.

37. Next Webinars: • Webinar #2: Wednesday, July 17th 1-2:00 pm Industry Data – How to identify (or confirm) your target industry • Webinar #3: Thursday, August 1st 1-2:00 pm Mobilizing your Partnership – Preparing for the Launch (or Expansion)

38. Questions Now? Questions later? Contact me anytime: Lindsey Woolsey lindsey@woolseygroup.com, 509-826-7991