Pulse on the TDL Market
A Comprehensive Assessment of Workforce Needs in the
Transportation, Distribution & Logistics Sector
April 2012
TDL Report
Agenda
•
Goals/Purpose of this Report
•
Participating Companies
•
Executive Summary
•
Overall Trends
•
–
Hiring Trends
–
Recruitment Practices
–
Skill Sets & Ongoing Development
Industry-Specific Trends
–
Rail
–
Trucking
–
Supply Chain/Logistics
•
Best Practices
•
Challenges & Recommendations
•
Appendix
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TDL Report
Goals/Purpose of This Report
Translinked Six Workstreams
•
•
•
2007: Detroit Regional Chamber
embarked on mission to leverage
region’s transportation assets for future
business attraction
2008: Translinked created to
strategically plan region’s future
logistics and mobility resources with a
focus on developing a world-class and
globally recognized transportation and
logistics hub.
2012: Manpowergroup Solutions
retained to support Workstream 3 of
Translinked workstreams:
Design a truly regional economic
development strategy for the TDL sector –
informed by NEI – and conduct the
appropriate economic analyses.
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TDL Report
Participating Companies
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TDL Report
Executive Summary
•
•
Overall sense of “cautious optimism” about the
future.
Companies focused on challenges with aging
workforce:
–
–
•
•
Attracting the talent to replace the retiring workforce
against demographics that can’t support future
needs.
Capturing and transferring the knowledge from the
outgoing workforce.
As economy improves, competition for talent will
be more difficult than ever, so need for talent
pipelines stronger than ever.
Greater need to develop key transferable skills
(personal, technical, leadership) in order to be
successful in a sector that’s constantly changing
due to technology, regulations, customer needs,
and competition.
ManpowerGroup Solutions | Wednesday, March 23, 2016
FYI
Top Workforce Issues Facing
TDL Companies
•Emerging from recession
•Aging workforce (impending
retirements)
•Fierce competition for talent
•Lack of pipeline for talent &
leaders
•Lack of transferable skills
(business acumen,
communication, leadership)
•Retaining talent
•Entitlement mentality (pay,
promotions, job security)
•Legislative changes
(Healthcare, safety, etc.)
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Overall Trends
TDL Report
Overall Trends
1. Hiring Trends
Reported Hiring Trends Last 1-3 Yrs
• Overall employment numbers for most
companies interviewed have been either flat
or slightly decreasing for past 1-3 years.
• Most companies are anticipating an increase
in hiring of around 1-3% for full-time and
contingent positions.
• Recovering auto industry cited as helping to
drive some of these positive numbers.
• Some companies focusing hiring efforts on
veterans and spouses of veterans.
• Some companies targeting retirees to
address knowledge transfer issues (trucking
industry in particular has had success in
attracting baby boomers).
Reported Hiring Trends Next 1-2 Yrs
• In some cases, companies have brought
back people who were laid off during
recession.
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TDL Report
Overall Trends
1. Hiring Trends (Cont.)
Reasons employees stay with companies & leave companies
Top Reasons Employees Give
for Leaving Company
Top Reasons Employees Give
for Staying with Company
•Not challenged enough
• Feeling valued and respected
•Unclear expectations
• Financial stability and
satisfaction
•Want less travel
• Good leadership
•Higher compensation
• Like the team
•Not treated fairly
• Reputation of company
•Lack of leadership
• Satisfaction and confidence in
role and responsibilities
•Personal reasons (life change;
career change)
• Part of decision-making
•Bad manager
•Better opportunity
•Advancement
•Perception that you have to leave
to get promoted quicker
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TDL Report
Overall Trends
2. Recruitment Practices
•
Most organizations use internal HR/Recruitment
organizations to find talent.
•
Sourcing channel cited most frequently is career
page on a company’s own website (very few use
print advertising).
•
Many focus on internal networking and hiring &
promoting from within when possible. Others
tapping into local associations for targeted recruiting
(e.g. Society of Women Engineers; Black MBAs,
etc.)
•
Some positions rely mostly on relationships with
unions in order to find talent (e.g. skilled trades such
as carpentry, electrical, drivers, etc).
•
Some re-evaluating their recruitment practices,
training & on-boarding programs to streamline
processes and drive towards better efficiencies.
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TDL Report
Overall Trends
2. Recruitment Practices (Cont.)
•
•
Many companies focusing on their
employer brand in order to differentiate
themselves competitively in the
marketplace
Areas of focus for employment branding
include:
- Company culture
- Innovation
- Flexibility & empowerment
- Stable environment/company
- Ability to grow
- Pay/benefits
- Part of decision-making
- Strong management & leadership
FYI
Benefits of Having a Strong
Employer Brand
• Higher quality candidate pool
• More candidates who match role
requirements and relate to the
organization's culture
• increased attraction and closing
of passive candidates
• Decreased application-to-hire
ratio
• Lower rate of offer rejection
• Decreased time-to-fill and costper-hire ratios
• Lower turnover
• More employee referrals
• higher levels of employee
engagement
• Increased productivity
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TDL Report
Overall Trends
2. Recruitment Practices (Cont.)
•
•
•
Most companies have active college
recruiting strategies which include
campus visits, guest lectures,
mentoring programs, presence at job
fairs, networking events & apprentice
programs.
Senior leaders in some organizations
have aligned themselves with specific
schools in order to foster deeper
relationships.
Success Story: Central Michigan
provides part-time and summer jobs
and internships for students enrolled
in Transportation & Logistics
programs. Companies cite that
graduates from these programs come
into the job market with stronger skills
around flexibility, negotiation and the
ability to make sound business
decisions.
ManpowerGroup Solutions | Wednesday, March 23, 2016
FYI
Top Michigan
Colleges/Universities Cited for
Recruiting Talent
•Central Michigan
•Michigan State
•Univ of Michigan
•Michigan Tech
•Wayne State Univ
•Ferris State Univ
•Eastern Michigan Univ
•Northern Michigan Univ
•Michigan Institute of Aviation &
Technology
•Michigan Technological Univ
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TDL Report
Overall Trends
2. Recruitment Practices (Cont.)
•
•
Although the primary channel for college
recruits comes from in-state colleges and
universities, many companies actively recruit
from campuses outside of Michigan.
Some of the main reasons cited for recruiting
out-of-state were:
-
-
-
Maintain an active pipeline of future
candidates
Want to bring in more diversity
Not enough qualified candidates coming from
in-state schools
In-state schools don’t offer enough needed
programs (e.g. vehicle maintenance &
management programs)
Helps to address mobility issues(out of state
recruits tend to be more comfortable relocating
& traveling)
Want to find best nationwide talent and bring it
to Michigan
ManpowerGroup Solutions | Wednesday, March 23, 2016
FYI
Top Out-of-State
Colleges/Universities Cited
for Recruiting Talent
•Miami Univ (Ohio)
•Purdue
•Penn State
•University of Florida
•Clark Atlanta Univ
•Duke Univ
•Cornell
•Univ of Illinois
•Univ of Wisconsin
•Georgia Institute of Technology
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TDL Report
Overall Trends
3. Skill Development
•
Transferable skills needed for success across TDL
sector:
- Technical Skills: Essential to a particular
industry/function
- Personal Skills: Essential for any role (a.k.a. soft
skills)
- Leadership Skills: Essential for inspiring &
motivating others and for building organizational
capability
•
Most companies have internal development and
incentive programs to attract, retain and develop
their employees such as:
- New hire training/on-boarding
- Management/leadership training programs
- Tuition reimbursement
- Mentor programs
- Internships
- On-the-job training
- Career path ladders
- Mandated training (hazardous cargo, compliance,
safety, TSA, etc.)
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TDL Report
Overall Trends
3. Skill Development (Cont.)
•
•
Blending of disciplines is becoming more common
(e.g. mechanical, electrical, hydraulic), making it
necessary for more specialization and crosstraining of skills.
Many companies report having difficulty finding
candidates who are both qualified to do the work
and who want to do the work. Reasons
candidates don’t want the job include:
-
Mobility(don’t want to relocate or travel)
-
Think they should be at a higher level (don’t
want to pay their dues)
-
Compensation issues
-
Don’t see career path/advancement
opportunities
-
Don’t think they’ll be challenged enough
-
Don’t like shift
ManpowerGroup Solutions | Wednesday, March 23, 2016
FYI
Top 5 Difficult to Find Positions
1. Engineers (Mechanical,
Technical, PowerTrain,
Project, Electrical, Logistics)
2. Sales & Business
Development
3. Experienced Drivers
(heavy/tractor trailer, forklift)
4. Skilled Trades (mechanics,
manufacturing, welders)
5. Niche Technologies (Supply
Chain, IT, Hybrid, Mobile
Applications)
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TDL Report
Overall Trends
3. Skill Development (Cont.)
Engineering positions particularly difficult to fill and retain for many
organizations due to a variety of reasons:
•
Unrealistic expectations: Guidance
counselors often over-selling job.
•
Lack of well-rounded experience:
Lacking other skills needed to succeed
(e.g. business acumen, understanding
P&L, budgeting, communication,
collaboration, innovative thinking, etc.)
•
Mobility issues: Not willing to relocate
or travel.
•
No set career path: Perception that you
have to move to another company to
advance in career.
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Industry Specific Trends
TDL Report
Industry Specific Trends
1. Rail
The Freight Railroad Administration (FRA) has
identified six industry challenges that have been
included in USDOT Framework for a National
Transportation Workforce Strategy:
• Aging railroad workforce – highlighting
need for knowledge transfer.
• Workforce diversity – shortages of women
and minorities in the rail workforce.
• Overall image of the rail industry –
declining and stagnant technologically.
• Need for national training standards – for
freight rail craft and trade positions.
• Work-life balance issues – attrition among
employees with less than five years of
service.
• Availability of suitable metrics – to
constantly monitor the collective railroad
workforce.
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TDL Report
Industry Specific Trends
1. Rail (Cont.)
•
•
•
•
As more technology makes its way into railroad
operations, more cross-disciplinary workers will be
needed to handle advanced machinery and
equipment as well as safely operate the rail yard.
FYI
• There are approximately
3,689 freight rail workers
in Michigan
• 80% of all rail workers are
unionized
Train engineers will have to be trained on the use of
new positive train control (PTC) technologies and
mechanics will have to be adept at maintaining such
systems.
• The average age of a rail
worker is 48
The future rail yard worker will need to have
enhanced computer oriented skills as well as
knowledge of other advanced technologies coupled
with knowledge in their domain area to be
successful.
• Conductor training costs
about $20,000 and lasts
12-15 weeks
Some companies have found success by hiring
from the ex-military pool as potential employees
because they are familiar with the vital importance
of safety rules and operating on a 24/7 schedule.
ManpowerGroup Solutions | Wednesday, March 23, 2016
• Average wages & benefits
per rail worker is $97,240
• The railroad industry is
running a public relations
campaign called “Freight
Rail Works” to highlight
rail’s clean and green
qualities
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TDL Report
Industry Specific Trends
2. Trucking
•
Despite a high U.S. unemployment rate of 8.3%,
truck drivers are still in short supply.
•
Trucking-labor costs declined during the
recession, so some of the projected wage
increases will be “catch-up.” Increased wages for
employees will most likely result in increased
prices for customers according to the National
Industrial Transportation League.
•
U.S. trucking companies may face a 30% surge in
wage bills by 2014 as rising demand for freight
shipments threatens to push industry’s driver
shortage to the longest on record.
•
Trucking companies with too-few drivers and
strong demand can be more selective in giving
priority to the most-lucrative, easy-to-haul cargo.
FYI
Top Issues Facing
Trucking Industry
• The economy
• Rise in wages
• Hours of Service (HOS)
changes
• Driver shortage
• Compliance Safety
Accountability (CSA)
• Fuel costs
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TDL Report
Industry Specific Trends
2. Trucking (Cont.)
•
•
•
Training for truck drivers generally provided by
private training schools. Courses are typically 4-6
weeks long and cost several thousand dollars.
Some gaps from truck driving schools, especially
around new technologies (e.g. DataColumns, RF
scans, etc.)
Pennsylvania, Texas, and Oklahoma offer state
funded programs to address shortage of drivers.
The state provides certification and hires graduates
for short-term assignments to provide needed
experience.
•
Many companies require drivers with a minimum of
two years materials hauling experience before
being hired, citing safety as the main reason.
•
Many drivers out of school find jobs with companies
that deliver goods nationwide. They gain their two
years of experience on the road, then often return
to find a job that keeps them more local.
ManpowerGroup Solutions | Wednesday, March 23, 2016
FYI
• There are approximately
45,660 Heavy and
Tractor-Trailer Truck
Drivers in Michigan
• There will be a national
shortfall of approximately
300,000 full-time trucking
positions by 2013 (10% of
the workforce)
• Fleet operators spend
around $5,000 to $8,000
to recruit and train a new
driver
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TDL Report
Industry Specific Trends
3. Supply Chain/Logistics
•
Previously discrete sectors of warehousing, freight
forwarding and logistics consulting & planning are
converging at a rapid pace with the rising
importance of holistic supply chain management.
•
Soft skills and cross cultural skills becoming
increasingly important as supply chains become
more global.
•
Cross functional skills also gaining importance.
Supply chain professionals need to understand
specific market category – as well as the supply
chain process associated with making, shipping,
and selling that category.
•
Candidates often have depth in one area and not
the other. Some companies are using rotational
programs to increase employees’ knowledge and
depth.
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Best Practices
TDL Report
Best Practices
Innovation
LEAPS
Program
Partnership for
Advanced
Studies
Description
• Summer internship program that selects 25-30 of the best college
students from around the country.
• Program provides real-life construction experience where students
learn about different building types and delivery methods while gaining
on-the-job experience.
• 95% of graduating interns are hired by their sponsoring company.
• Program that mobilizes educators, employers, and community leaders in
company’s Nashville, TN location to create a new generation of young
people who will graduate from high school college- and career-ready.
• Program consists of transforming learning initiatives centered around three
strands: 1) Teaching and Learning; 2) Redesigning High Schools and 3)
Sustaining Change Through Business and Civic Leadership.
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TDL Report
Best Practices (Cont.)
Innovation
Junior
Development
Group
Description
• Group of high potential employees selected to become a cohort group that
gets to participate in various strategic decisions that affect the company.
• Designed to instill a sense of ownership and build skills around critical
thinking, innovation, business planning, and problem solving.
• Group meets with Sr Leadership once a month to focus on different area.
• Program has been well received and has resulted in high retention rates
and promotions among members.
College
Partnerships
Several companies reported strong relationships with colleges &
Universities that shared some similar success factors:
•Sr leader assigned to a particular school/college dean
•Participation and influence in school curriculum (guest lectures)
•Discussion of employment needs and opportunities
•Sponsoring networking events, internships, town hall meetings
•Building a pipeline of future hires
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Challenges &
Recommendations
TDL Report
Challenges & Recommendations
How Do We Dream Big and Get More Lift?
Focus on five key areas:
1.
2.
3.
4.
5.
School counselors
Perception of TDL industry
K-12 educational system
Post-secondary educational system
Finding talent
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TDL Report
Challenges & Recommendations
Category
School
Counselors
Description
• College career counselors, high school
counselors and job placement
organizations are influential
intermediaries who don’t have enough
current information about TDL career
choices.
• Steering students towards either college
or other career choices outside the TDL
sector.
• Set unrealistic expectations by overselling positions
• Don’t have enough current real world
business experience.
ManpowerGroup Solutions | Wednesday, March 23, 2016
Recommendation
• Active outreach to career counselors at the
high school and college levels to educate on
various industries and sub-sets of industries
in TDL.
• Help job seekers make informed choices
about TDL career options; offer vocational
careers as a viable alternative to obtaining a
college degree.
• Discuss realities and possibilities of job (don’t
over- or under-sell a job).
• Invite counselors to job site so they can see
first-hand what the job/sector is really about.
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TDL Report
Challenges & Recommendations (Cont.)
Category
Perception
of TDL
Industry
Description
• Most individuals not currently working
in TDL industry do not have a strong
opinion about the industry, but where
they do hold opinions, they were
generally negative.
• TDL industry not always perceived as
a technology-intensive industry.
• TDL jobs sometimes perceived as:
-
Unexciting and repetitive, demanding
long hours and hard physical labor
-
Underpaid and lacking in benefits
-
Jobs you take while you look for a
career somewhere else
ManpowerGroup Solutions | Wednesday, March 23, 2016
Recommendation
• Create regional campaign highlighting
the TDL sector; position Southeast
Michigan as a destination for high tech,
high paying jobs.
• Community leaders need to emphasize
vocational careers more in order to
remove perceived negative stigma.
• Offer more internships and “a day in the
life of…” programs starting at the
elementary and high school levels.
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TDL Report
Challenges & Recommendations (Cont.)
Category
K-12
Educational
System
Description
Recommendation
• Companies consistently cited a lack
of vocational training at the high
school level to better identify and
prepare candidates for jobs; not
enough appreciation of craft.
• More efforts to spark interest in kids at an
early age (K-12) around such things as
innovation, critical thinking, problem
solving, etc.
• Also cited consistently was a lack of
foundational skills in math, science
and technology that should begin
and be developed at a young age.
• Begin building pipeline of future workers at
an earlier stage; keep them involved
throughout their education.
• Reinvigorate vocational programs; remove
perception that everyone must go to
college.
• More partnerships between the business
community and schools (e.g. “Software
Engineering Academy” in New York City
sponsored by Mayor Bloomberg and IT
business leaders).
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TDL Report
Challenges & Recommendations (Cont.)
Category
PostSecondary
Educational
System
Description
•
Graduates from colleges, universities
and technical schools lack many of the
transferable skills needed for success
in any job (e.g. business acumen,
leadership, problem solving, etc.)
•
Not enough specialized programs for
niche or converging industries.
ManpowerGroup Solutions | Wednesday, March 23, 2016
Recommendation
• Need more partnerships with technical
schools to cultivate pipeline and close skill
gap. Technical curriculum should also
include transferable skills around
leadership, problem solving, business
acumen, etc.
• Need to offer additional specialized
programs at the national & state levels. For
example, there is no current U.S. program
for Freight Forwarding (only for Supply
Chain). Australia, Germany, France and
Switzerland all offer Freight Forwarding
programs with apprenticeships.
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TDL Report
Challenges & Recommendations (Cont.)
Category
Description
• Lack of unified plan to address talent
shortage at a regional level.
• Look more holistically at all factors that go into
finding talent (transferable skills, technical
skills, demographics, commute times, quality
of life in communities, etc.) to build local and
regional TDL sourcing & recruiting strategies.
• Some local business, community and
political leaders cited as being too
focused on looking for talent within
Michigan and trying to keeping the
talent here once they graduate.
• See benefit in mobility into and out of the state
(helping to produce more well-rounded people
who may come back to Michigan with greater
skillsets.
• Increased competition for talent with
shrinking demographics to meet future
needs.
Finding
Talent
Recommendation
• Elevate skillset of entire region by offering
incentives for employees to gain broader
experience (abroad or in other states) then
come back home to apply skills and knowledge
locally.
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Appendix
TDL Report
Projected Growth in TDL Jobs 2012 - 2014
Combined Industry Market View Top TDL Industry Groups –
•
•
•
•
•
Detroit-Warren-Livonia, MI
Ann Arbor, MI
Flint, MI
Lansing-East Lansing, MI
Toledo, OH
Source: EMSI employment data from Quarterly Census of Employment and Wages (QCEW) produced by the Department of
Labor with total employment data in Regional Economic Information System (REIS) published by the Bureau of Economic
Analysis (BEA), augmented with County Business Patterns (CBP) and Non-employer Statistics (NES) published by the U.S.
CensusManpowerGroup
Bureau. Projections
are based on the latest available EMSI industry data, 15-year past local trends in each industry,
Solutions | Wednesday, March 23, 2016
growth rates in statewide and (where available) sub-state area industry projections published by individual state agencies, and
(in part) growth rates in national projections from the Bureau of Labor Statistics.
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TDL Report
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