A Study of the Workforce Training Needs for the Agribusiness Industry in Georgia Conducted by the Center for Agribusiness and Economic Development (CAED), University of Georgia for the Office of Economic Development, University System of Georgia (USG) 2008 Georgia Agribusiness Survey 2008 Slide # 2 Survey Methodology Analysis based on data collected from two broad sources: 1. Agribusiness Needs Assessment Survey One-on-one interviews were conducted with approximately 10 companies 2. Secondary data Sources – – – – – – – – Georgia Department of Labor U.S. Bureau of Labor Statistics Bureau of Economic Analysis (BEA) U.S. Census Bureau County Business Patterns, U.S.D.A.’s Food and Agricultural Education Information System (FAEIS) University System of Georgia/BOR National Center for Education Statistics Occupational Supply and Demand System Georgia Agribusiness Survey 2008 Slide # 3 Survey Respondents’ Locations and Response Rates Survey Response Rate 11% # of Surveys Distributed 1,994 # of Completed Surveys 200 # of undeliverable surveys 142 Georgia Agribusiness Survey 2008 Slide # 4 Respondents by Industry Sector Number of Businesses Number of Employees Administration and Education Related to Agricultural Production 11 2,935 Agricultural Chemical & Machinery Manufacturing Farm Product Warehousing and Storage 17 7 18 12 14 6 1,319 714 1,841 5,549 661 67 Farm Suppliers and Food Wholesale and Retail Distributors 15 1,032 Forestry and Logging Operations Green Industry 8 27 5 18 11 7 22 179 1,369 94 223 1,883 2,132 1,670 Agribusiness Areas (excluding missing values) Agricultural Finance and Risk Minimization Agricultural Product Manufacturing Animal Production/Processing Crop Production Nature-based/Agro Tourism Professional, Scientific, and Technical Services Pulp and Paper Manufacturing Support Activities for Agricultural Production Wood Product Manufacturing Georgia Agribusiness Survey 2008 Slide # 5 Current and Future Openings for Collegeeducated Workers in the Agribusiness Industry Projections based on occupational trends in the agribusiness industry, using data from: 1. Georgia Department of Labor’s Long-term Occupational Projections to 2014 2. U.S. Bureau of Labor Statistics Long-term Occupational Projections to 2016 identifying growth and declines by occupations and education requirements where college-level agricultural-related training is most typically expected. Georgia Agribusiness Survey 2008 Slide # 6 Georgia Agribusiness Demand Long-Term Occupational Projections for Occupations in the Agribusiness-related NAICS Codes 2004-2014 Type of Ag-related Occupation Total - college-degree occupations for degree programs (education levels 1-6) Total - college-degree occupations for certificate programs (education level 7) Annual Openings from Growth Annual Total Openings Annual from Openings Replacements Annual Growth Rate 701 888 1,580 1.5% 5 14 20 0.6% 706 902 1,600 1.5% Total non-college occupations 3,223 4,517 7,740 1.4% Total Georgia Agribusiness 3,924 5,405 9,320 Total college occupations (education levels 1 - 7) Georgia Agribusiness Survey 2008 Slide # 7 Supply - Degrees Conferred, USG, 2002 - 2006: Agribusiness Core and Allied Programs Total - All Award Levels Description Agriculture, Agriculture Operations, And Related Sciences Natural Resources And Conservation Total Undergraduate (including certificates) Total Graduate 1480 1093 387 797 521 276 Architecture And Related Services 585 353 232 Education Engineering Family And Consumer Sciences/Human Sciences 129 418 105 219 24 199 160 135 25 Biological And Biomedical Sciences 201 81 120 Total - Core and Allied Programs 3770 2507 1263 754 501 253 average per year - Core and Allied Programs - all award levels Georgia Agribusiness Survey 2008 Slide # 8 Georgia Labor Market: Market-Adjusted Gap Analysis (using USDA recommended adjustments) Occupational Clusters market adjustments made and excluding certificates USG -Agriculture and Georgia Job Gap: Job Allied Disciplines Openings Openings Average Annual (Demand) Less Average Supply Supply Scientific and Engineering Management and Business Agricultural and Forestry Production Education, Communication, and Governmental Services Summary Statistics 141 214 106 195 320 163 54 106 57 115 577 367 1,045 252 468 Bottom Line: Supply = 55% of Projected Demand i.e. almost ½ of projected demand will go unfilled (based on current trends) Georgia Agribusiness Survey 2008 Slide # 9 Gap Analysis for College-educated Workforce in Georgia Education, Communication, and Governmental Services 5 year Adjusted Average (Supply) Georgia Employment Openings (Demand) 5 year Adjusted Average (Supply) Agricultural and Forestry Production Georgia Employment Openings (Demand) 5 year Adjusted Average (Supply) Management and Business Georgia Employment Openings (Demand) 5 year Adjusted Average (Supply) Scientific and Engineering Georgia Agribusiness Survey 2008 Georgia Employment Openings (Demand) 50 100 150 200 250 300 350 400 450 500 Slide # 10 Growth in College Enrollment by Degree, Georgia as Compared to U.S. 2000 – Undergraduate Graduate Professional Student Student 2006 Student Student Student enrollment enrollment Trends Enrollment Enrollment Enrollment - Full-time - Part-time U.S. 19.2% 23.3% 12.5% 25.9% 10.8% Georgia 46.8% 25.6% -21.5% 39.7% 46.4% Georgia Agribusiness Survey 2008 Slide # 11 Degree Program Offerings: by Fields Summary Fields/Majors Agricultural Education Animal Sciences (including dairy & poultry) Engineering and Technology Environmental Science Food Science/Food Technology Plant/Crop Sciences and Plant Protection/Pest Mgt/Entomology Agriculture/Agribusiness/Ag Economics/General Business Number of Core & Allied Courses UGA as % of USG UGA System 3 1 33.3% 18 15 83.3% 28 6 21.4% 14 7 50.0% 4 4 100.0% 13 11 84.6% 7 5 71.4% General Agriculture/Agricultural Production 9 2 22.2% Horticulture, Landscaping, and Turfgrass Management 13 7 53.8% Public Relations/Communications & Leadership 3 2 66.7% Forestry/Natural Resources/Conservation 18 13 72.2% Other Fields 21 6 28.6% 151 79 52.3% Georgia Agribusiness Survey 2008 Slide # 12 Degree Program Offerings: by Award Levels USG Number of Degree Programs Number Offered by UGA UGA as % of System Offerings Certificates of <1 year 11 7 63.6% Associate’s Degrees 35 0 0.0% Bachelor’s Degrees 49 30 61.2% Advanced Certificates/ dual BS/MS degrees 4 1 25.0% Master’s Degrees 35 27 77.1% Doctoral Degrees 17 14 82.4% Degree Program Level Georgia Agribusiness Survey 2008 Slide # 13 Degrees Offered by Institution Institutions Certificates Associate's Bachelor's Advanced Master's Doctoral Total by of <1 year Certificate Institution Gainesville State Georgia College and State Georgia Southern Georgia State Southern Polytechnic State University of West Georgia ABAC 2 0 7 1 1 1 0 0 0 0 0 0 10 2 0 0 1 0 0 0 1 0 1 0 2 0 0 0 0 0 0 1 2 2 0 0 0 0 1 0 1 0 16 2 0 0 0 18 Fort Valley State University of Georgia Georgia Tech Other Institutions 0 7 4 0 7 30 0 1 1 27 0 14 12 79 0 1 0 7 6 0 1 0 5 1 3 0 15 9 Total Number by Award Level 11 35 49 4 35 17 151 Georgia Agribusiness Survey 2008 Slide # 14 % of Full Time Positions Requiring a College Degree in Georgia # of Average # of Companies Employees Category Total # of Workers ≥ 75% of positions 22 161 3,549 50 - 74% of positions 10 217 1,957 33 - 49% of positions 6 48 288 25 - 32% of positions 12 20 225 1 – 24% of positions 91 117 13,834 positions requiring no collegeeducation 56 41 2,115 Summary/Totals 195 113 21,968 (excluding missing values) Georgia Agribusiness Survey 2008 Slide # 15 Expectations of Future College Degree Requirements As you look forward to the future, how important will it be for new employees to have a college degree? Answer Options In the next 2 - 5 years In the next 6 - 10 years Very Important Somewhat Important Not Important Don't Know/ Not Sure 58 74 31 15 (32.6%) (41.6%) (17.4%) (8.4%) 76 (44.7%) 63 (37.1%) 14 (8.2%) 17 (10.0%) Georgia Agribusiness Survey 2008 Slide # 16 Expectations Regarding Future Workforce Needs in Next 5 Years Don't Know/Not Sure Decrease 13.3% 9.0% 0.0% 3.2% 25.4% No Change Increase 1-2% 13.2% 30.2% 17.1% 12.2% 15.3% Increase 3-5% Increase 6-10% 9.5% 14.9% 17.1% 19.6% Increase > 10% 0.0% 5.0% 10.0% 15.0% College-educated Workforce Needs Georgia Agribusiness Survey 2008 20.0% 25.0% 30.0% 35.0% General Workforce Needs Slide # 17 Projected Demand by Educational Levels: Agribusiness and Georgia Economy 69.9% All Other Education Levels 82.8% 21.3% Bachelor's or Higher Degree Post-Secondary Education but Less than Bachelor’s 15.0% 8.9% 2.2% 0.0% 10.0% 20.0% 30.0% 40.0% Agribusiness Industry - 2014 Georgia Agribusiness Survey 2008 50.0% 60.0% 70.0% 80.0% 90.0 % State of Georgia - 2014 Slide # 18 Summary of Expectations Regarding Future Demand Question Average Response How important will it be for new employees to have a college degree? 2 – 5 years out 2.0 = Somewhat Important How important will it be for new employees to have a college degree? 5 – 10 years out 1.8 = Somewhat to Very Important Over the next five years, what are your expectations about your workforce needs? – General Workforce Over the next five years, what are your expectations about your workforce needs? – College-educated Workforce 3.4 = Increase between 1-2 and 3- 5% 3.2 = = Increase between 1-2 and 3- 5% Georgia Agribusiness Survey 2008 Slide # 19 Need for Specific Subject Matter Degree Is a college degree in a specific subject matter currently required for entry-level positions in your company? Answer Options Response Percent Response Count Yes - All 2.2% 4 Yes - Most 10.8% 20 Yes - Some 29.2% 54 No 57.8% 107 Completed Responses 185 Georgia Agribusiness Survey 2008 Slide # 20 Preferences of 50% or More for Positions Requiring Specific Subject Matter Geology/Earth Sciences Food Science Food Technology Turfgrass Management Animal Sciences Soil Science Agricultural Mechanization Agricultural Education Agricultural Engineering Horticulture & Landscaping Forestry Plant/Crop Sciences Environmental Sciences Plant Protection & Pest Mgtt IT/Computer Science P. R. & Communications Agribusiness/Ag Econ/Business 1.1% 2.4% 2.6% 3.4% 3.7% 3.9% 4.7% 5.5% 5.5% 5.8% 5.8% 6.3% 7.1% 7.4% 8.2% 11.3% 15.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Georgia Agribusiness Survey 2008 Slide # 21 Experience Filling Vacant Positions by Disciplines/Fields When you have vacant positions, for what proportion of the vacancies in the following fields has it been difficult to find applicants with college degrees? Answer Options More than 50% Never 15.4% 18.5% 21.2% 21.5% 23.8% 26.2% 28.8% 29.4% 30.9% 31.8% 42.1% 32.3% 44.4% 39.4% 20.0% 17.5% 16.9% 19.2% 18.8% 21.8% 29.4% 15.8% Communications & P.R. Waste Management Research/Education IT/Computer Science Production & Processing Marketing and Sales Business Operations Entry level Management Engineering and Technical Mid-level Management Food/agricultural Security Georgia Agribusiness Survey 2008 Slide # 22 Impact On Company’s Ability to Recruit and Retain College-educated Employees Impacts by Factors and Frequency Answer Options More than 50% of the time Average (31-50%) Less than 30% of the time Not at All Inadequate subject matter knowledge 28.1% 21.5% 31.4% 19.0% Lack of prior work experience 20.7% 34.7% 24.8% 19.8% Lack of interest in relocating 28.3% 14.2% 26.7% 30.8% Employee expectations not consistent with actual job requirements 32.8% 27.9% 23.0% 16.4% Employees’ unrealistic promotion and/or salary expectations 38.7% 27.4% 22.6% 11.3% Georgia Agribusiness Survey 2008 Slide # 23 Recruitment Methods Used by Survey Respondents Which of the following methods do you use to recruit college-educated applicants? Answer Options Promote from within Hire current interns Recruit competitors’ employees Recruit at college career fairs Use recruiting/search firms Referrals from employees University placement offices Personal contacts at universities GeorgiaHIRE.com Frequently (>50%) Seldom or Never (0 - 25%) 41.6% 9.0% 14.8% 9.1% 11.3% 25.0% 6.3% 19.4% 1.5% 25.5% 66.0% 57.7% 74.1% 76.8% 33.1% 72.7% 56.9% 94.8% Georgia Agribusiness Survey 2008 Slide # 24 Recruitment and Hiring Success Among Respondents: by Institution From which of the following universities have you had most success in hiring college-educated applicants? Frequently Answer Options (more than 50%) Never (0%) Abraham Baldwin Agricultural College Fort Valley State University Georgia Institute of Technology University of Georgia 22.9% 4.2% 4.2% 42.9% 54.3% 86.5% 74.0% 16.0% Other university/college in Georgia 15.1% 53.5% Auburn University Clemson University University of Florida University of Tennessee 22.0% 8.6% 7.4% 5.2% 53.0% 67.7% 69.5% 75.0% Other U.S. University 8.5% 62.0% Georgia Agribusiness Survey 2008 Slide # 25 Impact of Future Training on Growth How helpful would it be to the growth of your company if potential applicants had college-level training in the following subject matter/emphases? Somewhat or Very Helpful Not Helpful Don't Know/ Not Sure Production management Ag business technology /computers in agriculture Government and Policy Resource conservation Agricultural mechanization /engineering technology 73.3% 12.7% 14.0% 61.2% 26.3% 12.5% 55.0% 51.4% 28.9% 30.4% 16.1% 18.2% 50.7% 32.7% 16.7% Integrated pest management 50.3% 34.0% 15.7% Alternative fuel technology Waste management 44.6% 39.7% 35.1% 39.0% 20.3% 21.2% Integrated nutrient management 37.2% 41.9% 20.9% Food/agrosecurity 36.9% 41.6% 21.5% Answer Options Georgia Agribusiness Survey 2008 Slide # 26 Impact of the Quality/Quantity of a College-educated Workforce on Companies’ Expansion Quantity No 67.8% Yes 32.2% Quality No 65.9% Yes 34.1% 0.0% 10.0% Georgia Agribusiness Survey 2008 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Slide # 27 Top Five Skills/Attributes Identified as Requirements by Survey Respondents Georgia Agribusiness Survey 2008 Slide # 28 Bottom Five Skills/Attributes Required by Survey Respondents Georgia Agribusiness Survey 2008 Slide # 29 Top 10 Skills and Attributes: Required and Preferred Combined Answer Options for Skills and Attributes Not Preferred + Important Required Required Preferred Oral communication skills Business ethics Critical thinking/problem solving Initiative Customer relations skills 64.2% 61.3% 61.5% 69.2% 59.0% 32.9% 35.3% 33.9% 26.2% 35.8% 2.9% 3.5% 4.6% 4.7% 5.2% 97.1% 96.5% 95.4% 95.3% 94.8% Leadership/team building skills 43.9% 50.3% 5.8% 94.2% Office software/computer competency 52.6% 39.3% 8.1% 91.9% Written communication skills 47.9% 42.6% 9.5% 90.5% Prior work experience 17.5% 69.6% 12.9% 87.1% Project management skills 23.7% 59.8% 16.6% 83.4% Georgia Agribusiness Survey 2008 Slide # 30 Summary of Skills Sought by Survey Respondents Beyond the technical knowledge, employers have expressed the need for workers who can: ► think ► problem solve ► communicate ► provide quality customer service ► take initiative Georgia Agribusiness Survey 2008 Slide # 31 Predictions about Future Innovations and Demand for Trained Workers In your sector of the industry, are there any innovations or new technology likely in the foreseeable future that would require new skills or training? Answer Options Response Percent Yes - A significant number 10.7% Yes - A moderate amount 34.5% Yes - A few 31.5% No 23.2% Georgia Agribusiness Survey 2008 Slide # 32 Identification of Programs likely to Impact Future Growth and Demand for College-educated Workforce In considering your future need for college-educated workers, which of the following programs would be important to the growth of your company? Very Somewhat Not Don't Know/ Important Important Important Not Sure Answer Options Access to a university-managed resume bank 21.7% 41.4% 20.4% 16.6% Established internship programs 22.8% 43.0% 20.9% 13.3% University career center specifically for ag majors 25.0% 43.8% 18.8% 12.5% University sponsored on-site instruction 12.3% 39.4% 29.0% 19.4% Georgia Agribusiness Survey 2008 Slide # 33 Critique of the USG’s Ability to develop the Agribusiness Workforce 1. 2. 3. 4. employers were pleased with the level of technical training received by USG graduates Students needed broader training in a wide range of issues beyond “textbook” matters: Students should be able to: ◊ understand and respond to changes in government policy ◊ develop niche markets for Georgia’s specialty crops Students should receive additional training in subjects such as economics and accounting principles, business ethics, statistics, and leadership Georgia Agribusiness Survey 2008 Slide # 34 Top 5 Programs Helpful for Future Agribusiness Growth How helpful would it be to the growth of your company if potential applicants had college-level training in the following subject matter/emphases? Top 5 responses only (based on very helpful and somewhat helpful) Answer Options Very Helpful Somewhat Helpful Not Helpful Don’t Know /Not Sure Production Management 26.7% 46.7% 12.7% 14.0% Ag Business Technology /Computers in Agriculture 25.7% 35.5% 26.3% 12.5% Government and Policy 18.8% 36.2% 28.9% 16.1% Resource Conservation 14.2% 37.2% 30.4% 18.2% Agricultural Mechanization /Engineering Technology 12.0% 38.7% 32.7% 16.7% Georgia Agribusiness Survey 2008 Slide # 35 Specific Recommendations for Program and Curricula Changes What changes in degrees and curricula would you recommend to the University System of Georgia so that it could more readily respond to anticipated changes in the U.S. agribusiness industry? Number of % of Total Recommendations Recommendations Broad Topic Programs - Curriculum Content/Design 38 57.6% Programs - Hands-on Learning 14 21.2% Programs - Skill Development 2 3.0% Higher Education Structure 6 9.1% Other Recommendations 6 9.1% Total number of recommendations 66 Georgia Agribusiness Survey 2008 Slide # 36 Specific Recommendations for Changes in Existing Programs the recurring themes mentioned were: ■business applications ■production agriculture ■alternative fuels ■water management ■food security ■ immigration issues ■work ethic ■Oral and written communication skills ■government/policy implications ■internships and other “real world” types of preparation Georgia Agribusiness Survey 2008 Slide # 37 Specific Recommendations for New or Enhanced Programs Some specific degrees/majors mentioned included : ■ecosystem management ■endangered species habitat management ■GIS/GPS field use ■prescribed fire management ■wetland recognition, analysis, and protection ■food processing and manufacturing Georgia Agribusiness Survey 2008 Slide # 38 Top Recommendations on Ways the USG Can Support the Agribusiness Industry Recommendations from Survey Respondents ■Addressing program design and curriculum needs by introducing more flexibility in curricula and program design ■Anticipating and responding to industry and labor market changes ■Establishing industry partnerships and placement opportunities ■Promoting the business of agribusiness ■Expanding opportunities for hand-on learning Georgia Agribusiness Survey 2008 Slide # 39 Strategies and Recommendations based on National Best Practices ◘Build Stronger Public/Private Partnerships ◘ Promote the Business of Agribusiness ◘ Expand Opportunities for Hands-On Learning ◘ Introduce More Flexibility in Curricula and Program Design ◘ Establish a USG Workforce Development Strategy Georgia Agribusiness Survey 2008 Slide # 40 Summary major survey findings: ■ the projected demand for college-educated workers with the requisite technical knowledge and “soft” skills will exceed the projected supply generated by the University System. ■ DOL projections are that occupations that require postsecondary education will grow faster than the state average for all occupations, growth led by increases in the demand for workers with an associate’s degree. Georgia Agribusiness Survey 2008 Slide # 41 Summary - Continued ■ Employers’ recruiting efforts not limited to graduates from the USG or the state of Georgia, confirming the existence of inter-state labor mobility. ■ Beyond the technical knowledge, employers need workers who can think, problem solve, communicate, provide quality customer service, and take initiative. ■ Efforts needed to “bridge the gap between academics and the real world, preferably by building partnerships with industry” (quote from a survey participant) Georgia Agribusiness Survey 2008 Slide #42