Greater Baton Rouge Industry Alliance

2014 Craft Workforce DevelopmentExcellence Awards Program

Tim JohnsonPresident

The TJC Group

September 4, 2014

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?

Shrinking in comparison to adult population

Growing faster than total population

>65

Youth Demographic

Workforce Development in the United StatesTHE 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

• $60 billion of announced plant expansions and new plants in Louisiana*– Driven by low price of

natural gas and greatly improved business climate

• 86,300 new crafts workers needed through 2016 in Louisiana– 35,000 new jobs– 51,300 jobs available

because of attrition

6

*Source: LSU Division of Economic Development, Louisiana Workforce Commission and Louisiana Economic Development

LOUISIANA’S WORKFORCE NEED LOUISIANA’S WORKFORCE NEED IS GREATIS GREAT

Source: Louisiana Economic Development and Louisiana Workforce Commission Gap Analysis for the WISE Act. Note: each represents 10 individuals.

Louisiana’s workforce forecast projects an ADDITIONAL ANNUAL job demand of over 14,000 “Tier One” jobs

2-Year12,152 annual

completers

4-Year2,085 annual completers

85% of additional

jobs will be supplied by 2 year colleges

““TIER ONE” JOBS REQUIRING COMMUNITY OR TIER ONE” JOBS REQUIRING COMMUNITY OR TECHNICAL COLLEGE EDUCATION -TECHNICAL COLLEGE EDUCATION -

ANNUAL COMPLETERS COMPARED TO TARGETED ANNUAL COMPLETERS COMPARED TO TARGETED STATE NEEDSSTATE NEEDS

Source: Louisiana Economic Development and Louisiana Workforce Commission Gap Analysis

CLMA® Forecasted Need by 2017

A nationwide shortage of as many as

2,000,000workers is looming and

project planning will become increasingly more

difficult.

www.myCLMA.com

An estimated

17% of the

construction workforce will

retire in the next 5 years

The REALITY (Aging Workforce – Construction)

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 - FORECASTINGFORECASTING

•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 - RECRUITINGCAREER 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 long-term 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 WinnerBYF 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

SOURCE: Construction Industry Institute (CII). RT231-1 “Construction Industry Craft Training in the United States & Canada” (Aug 2007)

The Construction Industry Institute (CII) study assumes an investment of 1.0% of the total project budget for wages / labor

STEP 4 - EMPLOYINGEMPLOYING

•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

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 YOUTim Johnson

PresidentThe TJC Group

www.thetjcgroup.comtim.johnson@thetjcgroup.com

(225) 757-5527