Columbus Regional Workforce Analysis Executive Presentation February 2014 Project Objectives Through interviews with project stakeholders, SSG and Columbus 2020 identified the following objectives for the comprehensive workforce analysis: 2 Identify and evaluate the various labor sheds that are present in the 11-county region Define, in detail, the size, key attributes, and workforce trends within each labor shed Assess underemployment, unemployment, and those not in the labor force through analysis and workforce surveys Define key deficits and surpluses within the local labor supply and the impact on key economic sectors Assess the impact of organized labor in the region Conduct employer interviews to understand their perspective of the regional workforce Compare the Columbus Region nationally and to a select group of competitors (metro areas and national averages) Report Sections The comprehensive report is organized into eight sections. Those sections are highlighted below: Overview of Data Sources Labor Shed Identification Workforce Trends & Attributes Underemployment & Labor Force Participation Occupation/Skill-Set Surplus & Deficit Analysis Organized Labor Climate Competitive Benchmarking Employer Interview Results 3 Overview of Data Sources SSG gathered data from a variety of sources, all of which can be classified into four categories: SSG’s Internal Data Sources Online Workforce Survey Primary Research Employer Interviews 4 Labor Shed Identification Labor sheds were identified and drawn using a combination of quantitative and qualitative data from individual surveys, employer interviews and internal databases. SSG identified the following five labor sheds, all of which contain Franklin County. 5 Franklin (represented by the light blue counties) Marion-Logan-Union Morrow-Marion-Delaware-Knox Licking-Fairfield Pickaway Key Workforce Attributes Each labor shed was profiled based on key workforce attributes. Those attributes included relevant demographic data, economic indicators, and occupation & industry trends. The following table provides a basic snapshot of each labor shed. Labor Force Labor Force Participation Median Household Income 2.23% 1,416,379 77.74% $48,277 1,960,381 2.72% 1,045,188 78.24% $48,877 Morrow-Marion-Delaware-Knox 1,730,267 2.86% 929,043 79.19% $48,525 Licking-Fairfield 1,847,983 2.66% 986,465 78.21% $47,049 Pickaway 1,537,868 2.97% 826,492 78.52% $47,415 Population Population Growth Franklin 2,698,952 Marion-Logan-Union Labor Shed 6 Education Attainment Trend 7 Readily Available Workers SSG quantified the number of readily available workers in the region by using the following equation. The table below provides the results. # of Unemployed + # of Underemployed + # of Those Not in Labor Force, but willing to re-enter Candidate Classification Number of Underemployed Workers 8 = Readily Available Workers # 217,008 Part-Time, Prefer Full-Time 76,487 Non Permanent, Prefer Permanent 49,805 Overqualified for Current Position 90,717 Unemployed Workers 65,651 Not Participating, But are Willing to Re-enter 43,968 Total 326,627 Graduate Surplus & Deficit Analysis The following graph shows the number of graduates in each program of interest relative to the corresponding entry-level jobs. A percentage over 100% suggests there are more graduates in the Columbus region than there are job opportunities. Graduate Surplus/Deficit 500.0% Columbus National Average 450.0% 400.0% 350.0% 300.0% 250.0% 200.0% 150.0% 100.0% 50.0% 0.0% TRANSPORTATION AND MATERIAL MOVING 9 PRECISION PRODUCTION MECHANIC & REPAIR TECHNOLOGIES COMPUTER AND INFORMATION SCIENCES AND SUPPORT SERVICES LEGAL PROFESSIONS BUSINESS MANAGEMENT, MARKETING, AND RELATED SUPPORT SERVICES PHYSICAL SCIENCES BIOLOGICAL AND BIOMEDICAL SCIENCES HEALTH PROFESSIONS AND RELATED PROGRAMS ENGINEERING TECHNOLOGIES ENGINEERING MATHEMATICS AND STATISTICS Graduate Surplus & Deficit Analysis - Continued The following graph shows the surplus (or deficit) of graduates in each program of interest relative to the corresponding entry-level jobs. A positive number suggests there are more graduates in the Columbus region than there are job opportunities. Graduate Surplus/Deficit ENGINEERING 1,033 HEALTH PROFESSIONS AND RELATED PROGRAMS 980 ENGINEERING TECHNOLOGIES 285 MATHEMATICS AND STATISTICS 167 BIOLOGICAL AND BIOMEDICAL SCIENCES 88 PHYSICAL SCIENCES -5 LEGAL PROFESSIONS -119 COMPUTER AND INFORMATION SCIENCES AND SUPPORT SERVICES -1,035 BUSINESS MANAGEMENT, MARKETING, AND RELATED SUPPORT SERVICES -1,285 PRECISION PRODUCTION -1,937 MECHANIC & REPAIR TECHNOLOGIES TRANSPORTATION AND MATERIAL MOVING -5,000 10 -2,860 -3,879 -4,000 -3,000 -2,000 -1,000 0 1,000 2,000 Competitive Benchmarking SSG constructed a custom national benchmark model that scores and ranks all 186 metropolitan statistical areas of the United States with a population greater than 250,000. The scoring is based on weighted workforce variables that measure Labor Availability and Labor Cost. The following table shows those communities that score above average in both Labor Availability and Labor Cost categories, as well as the six competitive markets previously identified by Columbus (in green). TOTAL INDEX LABOR AVAILABILITY LABOR COST AZ 117.3% 123.9% 101.9% Atlanta-Sandy Springs-Marietta GA 115.8% 123.6% 97.5% Orlando-Kissimmee-Sanford FL 114.8% 118.7% 105.6% Tampa-St. Petersburg-Clearwater FL 113.3% 116.5% 105.8% Miami-Fort Lauderdale-Pompano Beach FL 112.3% 117.5% 100.3% Indianapolis-Carmel IN 111.9% 115.7% 103.0% Columbus OH 111.3% 116.0% 100.3% Pittsburgh PA 110.7% 114.4% 101.8% Austin-Round Rock-San Marcos TX 110.6% 115.9% 98.4% Salt Lake City UT 110.5% 114.3% 101.6% Charlotte-Gastonia-Rock Hill NC-SC 109.3% 113.4% 99.6% San Antonio-New Braunfels TX 108.2% 108.7% 107.0% Nashville-Davidson--Murfreesboro--Franklin TN 107.9% 109.3% 104.6% Oklahoma City OK 107.3% 106.0% 110.2% Cincinnati-Middletown OH-KY-IN 106.9% 110.2% 99.0% Louisville-Jefferson County KY-IN 100.8% 98.9% 105.1% MSA STATE Phoenix-Mesa-Glendale A score of 100% in any category is considered average. The higher the index, the more favorable the score. 11 Labor Availability Labor Scalability Target Occupation Presence Target Occupation Growth Education Attainment Target Age Groups Household Income Distribution Post-Secondary Graduates Labor Costs Median Household Income Cost of Living Housing Costs Target Occupation Wages Competitive Benchmarking - Continued The following table shows how the Columbus MSA scores against each competitive market in each sub category that measures Labor Availability & Labor Cost. MSA Atlanta, GA Austin-Round Rock, TX Charlotte-Gastonia, NC-SC Cincinnati-Middletown, OH-KY-IN Columbus, OH Indianapolis-Carmel, IN Louisville, KY-IN Miami-Fort Lauderdale, FL Nashville, TN Oklahoma City, OK Orlando, FL Phoenix-Mesa-Glendale, AZ Pittsburgh, PA Salt Lake City, UT San Antonio, TX Tampa-St. Petersburg, FL 12 LABOR SCALABILITY TARGET EDUCATION ATTAINMENT TARGET AGE GROUP TARGET HOUSEHOLD INCOME COLLEGE & UNIVERSITY GRADUATES MARKET COST INDICATORS AVERAGE MARKET WAGES 154.3% 138.4% 136.5% 108.5% 115.8% 123.6% 94.7% 153.5% 117.3% 110.3% 148.8% 150.5% 114.3% 115.7% 141.5% 150.2% 109.3% 116.5% 108.9% 101.0% 108.0% 104.3% 94.1% 99.2% 101.0% 98.1% 104.3% 101.8% 104.1% 106.5% 94.0% 99.9% 105.3% 110.9% 104.3% 99.0% 104.6% 101.5% 99.7% 100.1% 104.5% 101.8% 104.5% 100.3% 95.6% 104.6% 101.1% 96.1% 100.9% 103.7% 101.7% 101.2% 101.5% 98.5% 100.4% 94.5% 100.7% 99.6% 98.2% 100.7% 98.4% 109.0% 101.3% 97.5% 200.0% 121.1% 116.9% 134.9% 152.6% 158.6% 74.2% 190.1% 115.5% 114.6% 157.8% 200.0% 184.3% 129.1% 118.0% 153.0% 95.4% 93.0% 101.6% 96.9% 102.0% 107.1% 107.4% 97.5% 103.4% 108.1% 108.4% 103.9% 103.6% 97.8% 108.7% 108.9% 98.5% 100.6% 98.8% 99.9% 99.6% 101.2% 104.1% 101.4% 105.0% 111.0% 104.5% 101.0% 101.0% 103.2% 106.3% 104.5% Employer Interview Summary SSG interviewed 71 employers in the 11-county region. Despite the use of a questionnaire, the interviews conducted by SSG were designed to be more informal, free-flowing and relaxed, especially with high-ranking executives. Typically, most interviews lasted between 45 minutes to one hour. In addition to other qualitative and quantitative measures, the respondents were asked to rank the categories in the table at right on a 1 to 5 scale, with 5 being most favorable. The table shows the average scores. Employment Size Less than 50 50 to 99 100 to 249 250 to 499 500 or More County Delaware Fairfield Franklin Knox Licking Logan Madison Marion Morrow Pickaway Union 13 Responses 14 10 20 10 16 Responses 5 5 26 4 5 3 3 4 4 5 7 Labor Criteria Rankings General applicant flow for available positions 3.2 Availability of skilled workers 2.7 Availability of unskilled workers 3.6 Worker productivity 3.8 Worker reliability 3.6 Soft skills 3.1 Worker reading, writing, and math skills 3.4 Teamwork skills 3.7 Flexibility/adaptability to change 3.5 Critical reasoning skills 3.1 Education attainment of applicants 3.5 Experience level of applicants 3.1 Employee turnover 3.6 Employee absenteeism 3.5 Employee attrition 3.6 Organized Labor Assessment The following graph shows the unionization rates, both public and private, for each competitive MSA as identified in the Competitive Benchmarking Section. Unionization Rates by MSA 50.0% 43.4% 45.0% 40.0% 36.6% 34.4% 35.0% 33.6% 30.5% 30.0% 25.1% 25.0% 20.3% 21.7% 23.3% 20.0% 14.2% 15.0% 14.1% 18.1% 11.3% 10.5% 9.9% 10.0% 5.0% 0.0% 4.1% 4.2% 4.9% 5.2% 5.7% 5.8% 3.6% 2.6% 2.8% 2.6% 3.8% 3.5% Austin, TX Phoenix, AZ Total Union Rates Salt Lake City, UT 11.5% 11.8% 7.4% 8.9% 5.6% 3.9% Charlotte, Nashville, TN Atlanta, GA Orlando, FL NC 14 6.8% 6.0% 14.4% 6.8% 5.4% 3.6% Tampa, FL Indianapolis, Cincinnati, IN OH Private Union Rates Public Union Rate Oklahoma City, OK Columbus, Louisville, KY OH Organized Labor Assessment - Continued The data in the graph below was generated from responses to the online workforce survey. SSG asked all participants their attitude towards unions. 74% of respondents have no opinion of or do not support unionism. Opinion of Organized Labor 40% 37% 37% 35% 32% 32% 30% 25% 20% 22% 21% 20% 15% 13% 14% 12% 15% 14% 14% 10% 8% 8% 5% 0% Completely support union membership Usually would support union membership No opinion on union membership Usually would not support union membership Total Population 15 Union Members Non-Union Strongly oppose union membership Key Findings & Conclusions Throughout the course of the project, SSG identified the following challenges and opportunities present in the Central Ohio region. Challenges: Lack of vocationally trained workforce (post-high school); Employers are shouldering the burden The post secondary education system isn’t keeping up with the demand for IT talent, Precision Production, Maintenance & Repair Talent, and Logistics Negative perception of career potential in the Advanced Manufacturing and Logistics industries There is an $10.00/hr. wage threshold for unskilled workforce talent There will be as many people exiting the workforce as there will be entering the workforce in the next 10 years There is a generational divide present in the workforce The region’s organized labor statistics vary greatly from the attitudes of the workforce and opinions of employers Market wages are slightly above average compared to the competitive locations Opportunities The labor force in the region is relatively fluid and staffing a qualified workforce at market wages is feasible throughout the region. There is a wage gap of $14.00 - $16.00/hr. and a salary gap of $43,000-$47,000 among the underemployed It would take a wage of $17.00 - $19.00/hr. or a salary of $50,000-$54,000 to entice the majority of those not in the labor force to re-enter The workforce characteristics strongly supports each of the target industries Abundance of engineering talent in the region 16 For additional information please contact: Site Selection Group, LLC 8300 Douglas Ave. Suite 700 Dallas, TX 75225 (214) 271-0580 www.siteselectiongroup.com