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Connections: Collaborations, Partnerships and Linkages

Fred DedrickExecutive Director

Pennsylvania Workforce Investment Board

NGA Workforce Development Policy Forum January 11, 2005

Miami, Florida

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Outline

New economic realities Pennsylvania’s challenges Next Generation Workforce

Strategy Industry partnerships Strategic Investments High priority occupations System accountability

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New Economic Realities Rapid technological change

Disruptive technology Technology travels Skilled labor accelerates learning curve

Globalization Hard for US to compete on price Requires high quality products and market

niches Requires higher skills

Shift to service economy

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New Economic Realities New business models

Outsourcing, Off-shoring, Value Chains Embedded service in supply chain

New skills and flexibility Human capital needs change quickly Life-long learning

Demographics changes Loss of experienced workers Regional disparities

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Pennsylvania’s Challenges Education achievement levels

PA ranks 45th in percent of workers with no more than a high school degree

PA ranks 46th in percent of adults over 25 who have post-secondary credentials

Community colleges serve only 2% of population, compared to 4.6% nationally

Stagnant population growth 0.3% increase for year ending July 1, 2004 45th slowest growth rate

Aging workforce and retirements 3rd highest percent of population over 65

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Pennsylvania’s Challenges Manufacturing tradition

From August 2000 to December 2004, PA lost 177,000 manufacturing jobs

Manufacturing still very important 690,000 jobs Avg. wage = $44,341 $64 billion of PA’s GSP

Small Firms : HR & innovation challenges Strong demand for health care

occupations

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Next Generation Workforce Development Strategy Support competitive industries Organize industry partnerships Invest in multi-firm strategies Provide incentives for innovation Focus on high priority occupations Hold programs and systems

accountable

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Support Competitive Industries PA Targeted Industry Cluster Analysis

Employment data Identifies regional concentrations Nine clusters and seven sub-clusters

Deloitte Study (MEPs) Manufacturing:

12% of employment, 20% of wages, $64 billion to GSP

Uses output data, describes regional differences Recommends: Support 16 driver industries

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Targeted Clusters Nine targeted industries: Employment

Life Sciences 867,868 Bus. and Financial Services 776,404 Education 536,572 Manufacturing 495,482 Building and Construction 347,795 Agriculture and Food 314,088 Information Services 209,442 Logistics and Transportation 136,946 Lumber Wood and Paper 105, 525

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Industry Partnerships Enhance firms’ competitiveness and

workers’ skills From data to information to intelligence Multi-firm, cluster specific Multi-agency: workforce, education,

economic development, welfare, etc. Strategic innovations Identification of key occupations

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Strategic Investments Kick start new partnerships Enhance existing sectoral efforts

Wood finishing Life Science Career Alliance

Promote Centers of Excellence An alliance of business, education,

workforce and economic development

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Strategic Investments Build statewide partnerships in

statewide sectors: PA Center for Health Careers

PA Manufacturing Partnership

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PA Center for Health Careers Address health care workforce

needs Fix nurse education capacity issue Retain health care professionals Recruit and retain allied health care

professionals Address needs of direct care workers

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Nurse Education Capacity Initiative Proposals:

A Nurse Education Faculty Fund to generate “loaned” faculty for nursing education programs

A Faculty Partnership Fund to education 50 new MSN prepared faculty

A Clinical Education Expansion Fund An Attraction and Retention Fund to attract

non-traditional applicants and improve the retention of current nursing students and new graduates

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Manufacturing Workforce Partnership Governor’s Summit: March 2004

Cost of health care #1 issue Skill needs #2

Multi-firm, multi-organization learning collaborative Focused on innovation Oversee and advise manufacturing

incumbent worker training grantees

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Strategic Investments October 2004: $5 million manufacturing

incumbent worker training initiative Purpose: Accelerate innovation strategies

Provide incentives for industry innovation Require agency collaboration Rolling deadline Interactive grant review: Learning process is

part of product --- “not a traditional training program”

Required review by Manufacturing Partnership

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Manufacturing Initiative Assumptions:

Lowering cost, improving productivity, quality control, and better skills are not sufficient

Firms must innovate: new products, new business models, new services, new markets

Innovations can come from: Knowledge of industry: domestic and international Collaboration within sector Linkages with tech councils, centers of excellence

educational institutions Shop floor managers and workers

This requires a smarter workforce

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Manufacturing Initiative Requirements for funding

A partnership of multiple employers linked by similar markets, labor pools, technologies

A demonstrated understanding of industry needs, especially of the chosen cluster

Must understand business and innovation strategies necessary to make cluster more competitive

Must have an action plan to implement innovation strategies

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Challenges Companies used to traditional training WIBs, MEPs, Econ. Dev. Orgs, trining

providers, Community Colleges don’t believe you’re serious

Staff not trained for this Innovation is not easy Fear of sharing intellectual property,

trade secrets Takes time

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Proposals From Food processing Manufactured housing Plastics Packaging technology Biotech Metal Fabrication

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Next Steps: Invest in High Priority Occupations

Identify and understand Define gap Develop curriculum, programs,

providers Deliver training Measure success

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Next Steps: Accountability

PA performance management plan covering $623 million of investments Quantitative Measures Strategic Measures

Annual report on outcomes of workforce investments

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Conclusion Analysis is the start A strategic approach is important Investing in that approach makes it

credible Close attention to implementation is

essential Collaboration, cooperation and linkages

brings support, continuous improvements and unexpected goodies

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Thank You

Fred DedrickExecutive DirectorPennsylvania Workforce Investment Board901 North 7th Street, Suite 103Harrisburg, PA 17102(717) 772-4966fdedrick@state.pa.us