Creating a Competitive Advantage
John P. Metcalf
Senior Partner

Corporation for a Skilled Workforce

It was…
“how is the world going to be made in our image?”
Now it is…
“how is the world changing us?”
China, Inc. Ted Fishman, Scribner 2005
Corporation for a Skilled Workforce

T
!
Corporation for a Skilled Workforce

Some Worrisome Global Indictors

For one chemist in the US, a company can hire 5 in China or 11 in India

The US is now a net importer of high technology products

120 chemical plants built worldwide: 1 in US and 50 in China
Rising Above the Gathering Storm, National Academies, www.nationalacademies.org/cosepup
Corporation for a Skilled Workforce

Some Worrisome Global Indictors

Fewer than 1/3 of US 4 th and 8 th graders perform at or above proficiencies in math

In 2003 only three US companies ranked among the top 10 recipients of patents granted by the US Patent Office

In 2004, China graduated about 500,000 engineers; India 200,00; the US 70,000
Rising Above the Gathering Storm, National Academies, www.nationalacademies.org/cosepup
Corporation for a Skilled Workforce

“ Jobs and dollars are chasing not just low wages but, more importantly, chasing skilled labor.”
“America is not producing enough welleducated, technically-educated young people to power its own economy just five years from now. China and India are going to need their own, and the whole American powerhouse, comes the warning, risks tumbling down.”
The 2010 Meltdown, Dr. Edward Gordon, Greenwood Publishing
Corporation for a Skilled Workforce


Distance today is measured in mouse clicks instead of miles
 We are interconnected in a “flat world”
Flat = Interconnection
Corporation for a Skilled Workforce

It affects everything . . . How communities and companies define themselves . . . how individuals balance their different identities as consumers, employers, shareholders, and citizens, and what role government should play. All of this is going to have to be sorted out anew.
Corporation for a Skilled Workforce

Corporation for a Skilled Workforce

Population Growth
35%
30%
28.8%
25%
20%
15%
10.6%
14.4%
14.0%
10%
5%
0%
1980-90
21.4%
13.2% 13.1%
8.3%
4.4%
5.8%
0.1%
3.3%
1990-2000 2000-04
Source: U.S. Census Bureau, AGS Demographics
U.S.
North Carolina
Eastern Region
Carteret
9.9%
13.1%
7.9%
0.2%
2000-09

2004 Median Age
50
45
40
35
30
25
20
15
10
5
0
36.2
U.S.
36
33.9
43.4
North Carolina Eastern Region
Source: AGS Demographics
Carteret

30%
25%
20%
15%
10%
5%
0%
-5%
-10%
U.S.
Growth by Age Group, 2000 to 2009
Youth Ages 15 & Under
Adults Ages 65 & Older
North Carolina Eastern Region
Source: U.S. Census Bureau, AGS Demographics
Carteret

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
24.4%
6.3%
21.1%
Educational Attainment, 2004
22.5%
6.8%
20.5%
15.0%
7.4%
23.5%
31.8%
28.6%
28.4%
20%
7%
26%
30%
19.6%
21.8% 22.2%
18%
U.S.
Less Than High School
Associate's Degree
North Carolina Eastern Region Carteret
Some College (no degree) High School Diploma
Bachelor's Degree or Above
Source: AGS Demographics

80%
70%
60%
50%
40%
30%
20%
10%
0%
Wage & Salary Income vs. Other Sources, 2000
Wage or salary income
Other Income (non-wage/salary)
U.S.
North Carolina Eastern Region
Source: U.S. Census Bureau
Carteret

Distribution of Non-Wage/Salary Income by Source, 2000
U.S.
North Carolina Eastern Region Carteret 12%
10%
8%
6%
4%
2%
0%
Self-
Employment
Interest,
Dividends, or
Net Rental
Social
Security
Supplemental
Security
Public
Assistance
Source: U.S. Census Bureau
Retirement Other

$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Average Value of Owned Homes, 2000
$158,934
$162,709
$137,312
$113,083
U.S.
North Carolina Eastern Region
Source: U.S. Census Bureau
Carteret

Carteret County Distribution of Employment and
Total Wages, 2004
30%
25%
20%
15%
Employment
Total Wages
10%
5%
0%
N atu ra l R es ou rc es
&
Mi ni ng
C on str uc tio n
Tr ad e, ri ng
Ma nu fa ctu
T ra ns po rta tio n,
&
U til iti es
In fo rm ati on
Fi na nc ia l A cti vi tie s ss io na l &
B us in es
Ed s
Se rv ic es uc ati on
&
H ea lth
Se rv ic es e
&
H os pi
Le is ur ta lity rv ic es
O th er
Se
Pu bl ic
A dm in is tr ati on
Pr ofe
U nc la ss ifi ed
Source: The Employment Security Commission of North Carolina

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Distribution of Employment Goods Producing vs.
Service Providing Industies, 2004
85.4%
77.9% 79.0%
22.1%
21.0%
14.6%
North Carolina Eastern Region
Goods-Producing Service-Providing
Source: The Employment Security Commission of North Carolina
Carteret

Dropout Rates
Unduplicated Four Year Drop Out Rate,
2004 to 2005 School Year
10%
9%
8%
7%
8.6%
6.4%
6%
5%
4%
3%
3.5%
2%
1%
0%
Car te re t
5.4%
Cr av en
5.2%
Du pli n
5.7%
4.6%
4.9%
5.1% 5.0%
4.7%
Gr ee ne
Jo ne s
Le no ir
On slo w
P am lic o
Source: North Carolina Department of Public Instruction
Way ne
E as te rn
Re gio n
No rt h Ca ro lin a

18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2003-2004 Percent of Course Enrollment in
Advanced Placement or Technical Courses
North Carolina
Carteret
16%
15%
3%
2%
Advanced College Prep Courses Career and Technical Courses
Source: North Carolina Department of Public Instruction: School Report Cards


2006 State of the Workforce Report

NC Policy Center Report

Eastern NC Economic Study
Corporation for a Skilled Workforce

Eastern Region’s Workforce
Storylines

We must take advantage of our labor pool if we are to thrive in a new economy

Our economy is making a major shift from traditional industries and occupations to a service delivery economy

If we are to be competitive in the global economy our region must build it through
Career Awareness and Job Readiness
2006 State of the Workforce Report, Eastern Carolina Workforce Development
Board
Corporation for a Skilled Workforce

Eastern Region’s Workforce
Storylines
 Our region’s future is in the hands of our youth and how well prepared they are to transition from school to work

We are a region that shares more in common than we have in differences

Our community must make a decision now on the industries that will support our region’s future
2006 State of the Workforce Report, Eastern Carolina Workforce
Development Board
Corporation for a Skilled Workforce

Coastal Sub-region Value Chain Clusters
$60,000
Chemical-based products
$50,000
$40,000
Military ( existing ) not shown due to high concentration. It has an LQ of approximately 20, employs 71,527 people, and has an average wage of $48,225. Ship and Boat Building ( existing ) also not shown due to high concentration. It has an
LQ of over 12, employs 2,327 people and has an average wage of $28,516.
Wood building products 1,144
556
Motor vehicles
1,765
Source: US BEA (2003), and NCER.
Appliances
1,467
$30,000
$20,000
$10,000
NCER 2 nd Qtr 2004
Average Wage =$28,128
(Source: NCESC)
Hotels & transportation services, 12,095
$0
0.0
0.5
Concrete, brick building products
1,162
Machine tools
1,029
Feed products
1,027
1.0
1.5
Concentration (LQ 2004)
Wood processing
1,318
Green=Existing
Blue=Emerging
Orange=Potential
2.0
2.5

Sub-regions in North Carolina ’s Eastern Region
North Sub-region
*Textiles & Tobacco
*Food Processing/distribution
*Pharmaceuticals and
Auto-related MFG
*Precision Instruments
Nash
Edgecombe
Wilson
Pitt
Wayne
Greene
Lenoir
Jones
Craven
Duplin
Pitt Sub-region
*Advanced Health Care
& Higher Education (ECU)
*Pharmaceuticals and
Auto-related MFG
*Financial Services
Pamlico
Carteret
Onslow
Central Sub-region
*Military
*Value-Added Agriculture
(e.g. farming, food processing)
*Tobacco Consolidation
*Building Products
Coastal Sub-region
*Military
*Marine-related Industries
*Hotels/transport (tourism)
*Retiree Attraction


Your challenge is to bend the curve and create a new destiny
 If you do nothing, then then you’ll follow the trend
 If you plan now for action, then you’ll create a “preferred future”

Create the 20% difference
Corporation for a Skilled Workforce


Most local economies are driven by national and global economic forces
– The 80% factor

The remaining economic forces are from local efforts to create competitive advantages
– The 20% factor
Corporation for a Skilled Workforce


Invest in their infrastructure, and,

Invest in the skills of their citizens
Corporation for a Skilled Workforce

Education and Workforce
Development Support Economic
Development






A good quality of life is related to a good wage
A good wage depends on a good job
Good jobs are dependent on a strong, diversified economy
A strong economy is dependent on a high quality education
Quality education depends on healthy children and families
Healthy children and families depend on vibrant communities!
North Carolina Progress Board NC20/20 2001
Corporation for a Skilled Workforce


Convene a discussion about the region’s future

Decide if a cluster based strategy is right for the region

Support entrepreneurship efforts across the region
Corporation for a Skilled Workforce


Develop and launch a comprehensive youth campaign

Develop and launch a comprehensive career awareness campaign

Investigate the affordable housing issue in Eastern Region
Corporation for a Skilled Workforce

Corporation for a Skilled Workforce


What must we do to integrate our economic, workforce and economic strategies?

How do we influence education reform to meet global standards?
 What is the vision, “preferred future”, for our county? Our region?

What are the consequences for our citizens if we do nothing?
Corporation for a Skilled Workforce

Corporation for a
Skilled Workforce
900 Victors Way
Suite 350
Ann Arbor, MI
48108
734-769-2900
John P. Metcalf
704-814-8999 jmetcalf@skilledwork.org
www.skilledwork.org