Greater Baton Rouge Industry Alliance 2014 Craft Workforce Development Excellence Awards Program September 4, 2014 Tim Johnson President The TJC Group A Global Issue “Nearly half of what will be the built environment in 2030 doesn’t exist yet.” Brookings Institution Metropolitan Policy Program Report A SHRINKING POOL? Youth Demographic Shrinking in comparison to <18 adult population >65 Growing faster than total population Workforce Development in the United States THE WORKFORCE GAP Why Career and Technical Education is Critical SOURCE: Carol D’Amico,” Workforce 2020: Work & Workers in the 21st Century” MEETING THE CHALLENGE Are we running for our lives?? Historic Demand for Industrial Craft Workers • 86,300 new crafts workers needed through 2016 in Louisiana – 35,000 new jobs – 51,300 jobs available because of attrition 140,000 Construction Employment • $60 billion of announced plant expansions and new plants in Louisiana* – Driven by low price of natural gas and greatly improved business climate 130,000 120,000 110,000 100,000 90,000 80,000 70,000 1991 1996 2001 2006 2011 2016 Year *Source: LSU Division of Economic Development, Louisiana Workforce Commission and Louisiana Economic Development 6 LOUISIANA’S WORKFORCE NEED IS GREAT Louisiana’s workforce forecast projects an ADDITIONAL ANNUAL job demand of over 14,000 “Tier One” jobs 4-Year 2,085 annual completers 2-Year 12,152 annual completers Source: Louisiana Economic Development and Louisiana Workforce Commission Gap Analysis for the WISE Act. Note: each represents 10 individuals. 85% of additional jobs will be supplied by 2 year colleges “TIER ONE” JOBS REQUIRING COMMUNITY OR TECHNICAL COLLEGE EDUCATION ANNUAL COMPLETERS COMPARED TO TARGETED STATE NEEDS Source: Louisiana Economic Development and Louisiana Workforce Commission Gap Analysis CLMA® Forecasted Need by 2017 A nationwide shortage of as many as 2,000,000 workers is looming and project planning will become increasingly more difficult. www.myCLMA.com The REALITY (Aging Workforce – Construction) An estimated 17% of the construction workforce will retire in the next 5 years Workforce Development In Four Steps •Four Elements of WFD •Forecasting (Demand and Supply) •Career Awareness and Recruiting •Training (Also skill upgrade) •Employing (In developed career paths) STEP 1 - FORECASTING FORECASTING •Accurate analysis of demand •Accurate analysis of supply •Granular and specific •Construction Labor Market Analyzer •Over $3B of project data in the system •www.myclma.com STEP 2 - CAREER AWARENESS - RECRUITING CAREER AWARENESS AND RECRUTING The mission of the Build Your Future campaign is to narrow the skills gap by guiding America’s youth and displaced workers into opportunities for advanced education and training, that lead to longterm rewarding careers in construction. • • • • • • NCCER’s National, “grass-roots” initiative Direct connection to instructors and students Career Paths Proven success Changing public policy & public perception www.BYF.org CURT Workforce Development Award Winner BYF has already reached 35 million students! STEP 3 - TRAINING TRAINING •Must move recruits in to world class high standards training programs •Must provide industry based certifications •Raises the level of esteem of the construction craft professional •NCCER – Over 700 accredited sponsors providing training and assessments in almost 6,000 locations in the United States •CURT / NCCER Contractor Workforce Development Assessment Tool •Realized return on investment WFD - Return on Investment The Construction Industry Institute (CII) study assumes an investment of 1.0% of the total project budget for wages / labor SOURCE: Construction Industry Institute (CII). RT231-1 “Construction Industry Craft Training in the United States & Canada” (Aug 2007) STEP 4 - EMPLOYING EMPLOYING •The “Good Luck” approach is no longer acceptable •Systematic process to move young people from training to careers •New Culture – “Not a job on a project but a “career in an industry.” LWIC Organizational Chart and Chairs WIC Charles Moniotte Craft Steering Committee Jorge Tarajano, PALA Group Training High Schools Recruitment Retention Jimmy Sawtelle, Deidra Jackson, Mike Albano, Tim Johnson, LCTCS BASF Dow Industry RETENTION SUBCOMMITTEE PRELIMINARY RECOMMENDATIONS •Standardize Mentoring for New Craft Professionals •Improve the Onboarding Process •Improve Work-Life Satisfaction for Craft Professionals •Diversify Crew Mixes to Allow More OJT and Experience for New Craft Professionals •Incentivize Skill Upgrade •Incentivize Retention of More Experienced Craft Professionals THANK YOU Tim Johnson President The TJC Group www.thetjcgroup.com tim.johnson@thetjcgroup.com (225) 757-5527