Sector Strategies: A Targeted Approach to Critical Industries

1. Sector Strategies:A Targeted Approachto Critical Industries Scott Sheely Executive Director Lancaster County Workforce Investment Board Lancaster, PA

2. An Economic Development Strategy Industry clusters typically have some sort of advantage that makes them more competitive than other locations in the global marketplace; If economies can sustain and grow that advantage, they assure future competitiveness; An innovation system that supports the local competitive advantage is our ultimate goal.

3. A Workforce Investment Strategy Understand the local economies; Prioritize and invest in industries that are growing, that are competitive, and that grow good jobs; Listen to the priority industries and provide the services that they need�not necessarily what the workforce system has traditionally provided.

4. A Shift in Paradigms Moving from a supply-driven to a demand-driven system�from a primarily jobseeker focus to system that has an employer and a jobseeker focus; Moving from a social service orientation to an economic development mandate;

5. The Situation The public workforce system has been slow to change the paradigm from social service to economic development as mandated by the Workforce Investment Act of 1998; Demand-driven system more of a reality where business entities have been involved and led the way; WIA looks at employer and jobseeker as equal customers but tends to measure and reward only jobseeker activities;

6. The Situation Incumbent worker training projects sponsored by federal and state funders have allowed the workforce system to bring something of value to business to the table; However, we still do not agree on how to measure impact on businesses as a result of these interventions; We still have not institutionalized these efforts�funding silos continue in many areas;

7. The Situation A great deal of inertia in the One-Stop system; Strict jobseeker focus; One dimensional focus on employers�job orders; The wrong people with the wrong skills; Continued lack of coordination with public sector folks from economic development and education that are trying to be of service to the employer community.

8. The Challenge How do our local economies become more competitive in the global marketplace? How do we deal with the impending worker and skill shortages caused by the Baby Boom generation changing its relationship to work; How do we do this with a system that has been reinventing itself with mixed results for the last six years?

9. The Challenge Local workforce investment boards need to think bigger�about their role in the local economy�about their role in a local innovation system; Local workforce investment boards need to look at their internal systems; Local workforce investment boards need to develop a strategic approach to the external and internal challenges.

10. At the Strategic Level� WIBs are responsible for� Linkages with business and industry; Industry-specific interventions; Coordination with other community systems (economic development, K-12, higher education, adult basic education); Resource identification and allocation; Oversight of the one-stop system.

11. At the Operational Level� One-Stops are responsible for� Employer connections to the one-stop system for labor exchange services; Company-specific interventions; Helping people to reach the first rung of career ladders; Passing folks off to the next level of provider.

12. From the Strategic to the Operational Data drives planning; Understanding of local economy is the first step; Regional connections put the local economy in a broader context; Concentration on local industry clusters provides a way to focus planning efforts; Data eventually needs to move down to occupations, career ladders, entry-level jobs, skill requirements and such to be useful to the workforce practitioner;

13. From the Strategic to the Operational Planning drives policy development; Information needs to be shared broadly with community leaders, government officials, educators, and WIB members; The involvement of technical folks from those groups ensures the �buy-in� of these systems to the interpretation of results; Ultimately, the WIB is responsible for working the results of planning into its policy documents;

14. From the Strategic to the Operational Policy drives the deployment of resources; An investment strategy involves setting priorities� For outreach to key industries; For related program development in contracted services; For changes to the deployment of one-stop services; Those priorities need to be reflected in the policy documents of the WIB; Staff is responsible for sharing this information and negotiating changes with the One-Stop provider;

15. From the Strategic to the Operational Strategic deployment often requires changes in the service delivery system; More industry focused; Additional services; Employer services personnel; New metrics; Negotiated in WIB/One-Stop contracting

16. Where Should We Invest Our Public Dollars? Local industries that have a chance for long-term growth and success because they have some sort of local competitive advantage; Local industries with a competitive advantage that grow gold-collar (high skill, high pay, high demand) jobs.

17. What is an Industry Cluster? �A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities.� Michael Porter

18. Cluster Components End-product or service companies; Suppliers of specialized inputs, components, machinery, financing and services; Firms in related and downstream industries (channels, distribution networks, customers); Producers of complementary products;

19. Cluster Components Specialized infrastructure providers; Government and other institutions providing specialized training, education, information, research, and technical support; Standards-setting and influential government agencies; Trade associations and other collective private sector bodies.