comprehensive regional workforce analysis

PINELLAS COUNTY ECONOMIC DEVELOPMENTSUMMARY PRESENTATION: DECEMBER 14, 2017

COMPREHENSIVE REGIONAL WORKFORCE ANALYSIS

TODAY’S AGENDA

Site Selection Group Overview

Workforce in Site Selection

Project Objectives

Commuting & Labor Sheds

Employer Findings

Key Occupational Clusters

Summary View of Strengths and Opportunities

Question and Answers

SITE SELECTION GROUP | PAGE 2


SITE SELECTION GROUP

SITE SELECTION GROUPLEADING CORPORATE LOCATION ADVISORY, ECONOMIC INCENTIVES AND REAL ESTATE FIRM

Full-service location advisory and economic

development consulting firm based in Dallas

One of the largest independent site selection firms in

the United States with 35 full-time employees

500+ completed corporate projects

$2.0B+ in economic incentives negotiated

$2.0B+ in real estate transactions negotiated

50+ completed economic development projects

Provides economic development consulting services

through the corporate lens

SCOPE OF SERVICES

LOCATION

ADVISORY

ECONOMIC

INCENTIVES

CORPORATE

REAL ESTATE

ECONOMIC

DEVELOPMENT

CONSULTING



WORKFORCE IN SITE SELECTION

SOURCES OF PROJECTSFLOW OF RECRUITMENT OPPORTUNITIES

Community EDC

PCED

State & Regional

EDC Partners

e.g. Enterprise Florida, Duke

CONSULTANT (~50%)

• Site Selection Consultants

• Tax/Advisory Firms

• Real Estate Brokers

• Law Firms

• Engineering Firms

COMPANY (~50%)

• Operations

• Financial

• Real Estate

• Supply Chain/Logistics

• Corporate Development

• Executive Level


TYPICAL SITE SELECTION PROCESSPROCESS TO IDENTIFY & SECURE OPTIMAL LOCATION

Needs

Assessment

Site Selection

Analysis

Tours and

Due Diligence Negotiations

• Demographics

• Labor force analysis

• Economic incentives

• Real estate research

• Infrastructure

• Wage surveys

• Business climate

• Geo-political risks

• Accessibility

• Operating cost analysis

• Decision matrix

• Economic development

agencies

• Community leaders

• Workforce commission

• Employers interviews

• Recruitment agencies

• Real estate options

• Infrastructure providers

Economic Incentives

• Tax abatements

• Training grants

• Tax credits

• Cash grants

• Real estate grants

Real Estate

• Acquisitions

• Dispositions

• Build-to-Suits

• Lease Renewals

Secure

Economic

Incentives

& Real Estate

Identification of

Finalist Locations

Comprehensive

Evaluation

of Candidate

Communities

Understand Client’s

Needs & Objectives

• Strategy formation

• Business drivers

• Project timeline

• Criteria weighting

• Employee profile

• Job creation

• Infrastructure needs

• Capital investment

• Geographic preference

• Facility specifications

PH

AS

EK

EY

ST

EP

SR

ES

UL

TS

Community

Filtering

Identify

Candidate

Communities

• Labor force size

• Competitor concentration

• Wage rates

• Unemployment rate

• Time zone

• Accessibility

• Union conditions

• Utility rates

• Real estate availability

• Economic incentive

climate

1 2 3 4 5 6Economic Incentive

Compliance

• Annual reporting

• Training reimbursements

• Job creation filings

• Applications

• Contract amendments

• Site audits

• EDC coordination

Compliance of

Economic

Incentives

Includes some level of workforce analytics

SecondaryResearch

(Filtering Risk)

PrimaryResearch

(Selection Risk) SITE SELECTION

GROUP | PAGE 7

PRIMARY LOCATION DRIVERS UNDERSTANDING THE MAGNITUDE WORKFORCE PLAYS IN SITE SELECTION DECISIONS

WORKFORCE

TRANSPORTATION INFRASTRUCTURE

ACCESSIBILITY

BUSINESS & TAX CLIMATE

REAL ESTATE

UTILITIES

REGULATORY & ENVIRONMENTAL

ECONOMIC INCENTIVES


Workforce (non-industrial projects)


PROJECT OBJECTIVES

PROJECT OBJECTIVESTIMELINE AND PROCESS


• Commuting: Conduct an in-depth commuting analysis to understand

trends in different parts of the County

• Employers: Survey employers to understand what they see as the

strengths and weaknesses of the regional workforce

• Comparative: Leverage key secondary data source to compare Pinellas

County against key local and regional competitors

Identify Target

Occupations

1Employer

Outreach & Survey

2Data

Collection

3Primary & Secondary Analysis

4Full Report

& Community Presentation

5

APPROACH TO WORKFORCE ANALYTICSKEY COMPONENTS TO A TARGETED, COMPREHENSIVE VIEWPOINT


TARGETED ▪ Focused on key industries & occupations

PRIMARY RESEARCH ▪ Leverages real time data collection in region

SECONDARYRESEARCH

▪ Also utilizes key secondary data sources

COMMUTING PATTERNS

▪ Identifies real commuting patterns

COMPARATIVE ▪ Benchmarks against actual competitor communities

TARGET INDUSTRIES TARGET OCCUPATIONSKEY SKILL SETS & OCCUPATIONAL CATEGORIES


Advanced Manufacturing

Information Technology

Business & Financial Services

Life Sciences & Med Tech

Defense & Homeland Security

Aviation & Aerospace

Production (Skilled, General, & Logistics)

Engineers & Engineering Technicians

Scientists & Science Techs.

Information Technology

Business & Finance (Higher and Mid-Skill)

TARGET INDUSTRIES KEY OCCUPATIONS

PRIMARY & SECONDARY RESEARCHCOMPLEMENTARY APPROACH


Job Postings Data (EMSI/CareerBuilder)

Occupation data at 6-digit SOC code (EMSI)

Industry data at 6-digit NAICS code (EMSI)

Wages (Economic Research Institute & EMSI)

Workforce Dynamics (Quarterly Workforce Indicators)

Commuting Patterns (LODES)

Demographics (Claritas & Census)

PRIMARY:

SURVEYS

SECONDARY:

SURVEYS & INTERVIEWS

REAL COMMUTING PATTERNS, COMPARATIVE MARKETS


COMMUTING PATTERNS COMPARATIVE DATA

Pinellas County

▪ County proper and three distinct

labor sheds

▪ Tampa Bay (MSA)

▪ Orlando

▪ Jacksonville

▪ Atlanta

▪ Charlotte

▪ Nashville

Very competitive markets for

both industrial and professional

service projects

Commuting

▪ Unique labor sheds depending on location – importance of

drive times instead of political boundaries

▪ 40-45 commute zone common

▪ Public transportation & congestion

Employer Perspective

▪ Overall, strong, positive opinions of workforce quality

▪ But biggest challenge is also maintaining workforce quality

▪ Growth potential

▪ Retirement concerns

Specific Occupational Strengths/Weaknesses

▪ Very strong value proposition especially in Professional

Services and similar

▪ Competing with other Florida and Southeastern markets

SUMMARY LABOR MARKET FINDINGSIDENTIFYING STRENGTHS AND CHALLENGES IN THE REGION



COMMUTINGPATTERNS

COMMUTING ANALYSISWHERE DO WORKERS LIVE


Downtown/South: Home ZIPs of Workers Carillon/Central: Home ZIPs of Workers Oldsmar/North: Home ZIPs of Workers

Key Labor Sheds –Where do Workers Live?

Key Takeaways

▪ Unique Labor Sheds – Using drive

times instead of political boundaries

▪ Willingness to Travel

COMMUTING ANALYSISHOW FAR ARE PEOPLE TRAVELING FOR WORK OPPORTUNITIES


Commute Distribution forThree Key Labor Sheds

24%

8%

17%

37%

17%

31%

56%

30%

36%

62%

41%

51%

72%

58%

64%

78%

70%73%

84%81% 83%

88%84% 86%

90% 88% 89%92% 91% 91%

94% 94% 93%

100% 100% 100%DOWNTOWN CARILLON OLDSMAR

CU

MU

LATI

VE

PER

CEN

TAG

E O

F W

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DRIVE TIME IN MINUTES< 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35 35 to 40 40 to 45 45 to 50 50 to 55 55 to 60 > 60

Key Takeaways

▪ Ability to Draw Workers

▪ Central County – Optimal

but Longer

Labor Shed50% of

Workers

80% of

Workers

Downtown – South 17.6 36.3

Carillon – Central 27.8 38.6

Oldsmar - North 22.5 38.8

COMMUTING ANALYSIS: EMPLOYER SURVEYWORKER TRAVEL TIMES & CHALLENGES


▪ Worker Travel Times – Reported

from Employers

▪ Aligns with secondary data

▪ 30-44 minute commutes

common

▪ Reported Challenges

▪ Traffic/Congestion

▪ Public Transportation

Key Takeaways – Commuting Overall

▪ ~45 minute labor sheds

▪ Drive times vs. political boundaries

▪ Congestion & Public Transit

Employer Reported Average CommuteTimes

17%

33%

48%

2%

Less than 15minutes

15 to 29 minutes 30 to 44 minutes 45 or more minutes

RES

PO

NSE

S


EMPLOYER PERSPECTIVE: SURVEY RESULTS

EMPLOYER PERSPECTIVESWORKFORCE QUALITY AND GROWTH


▪ 57 surveyed firms

▪ Representing approximately 10,000 to

12,000 workers

▪ Primary Challenge? Workforce Quality

▪ Costs (#2)

▪ Other Issues (#3)

▪ Positive, but not “overheating” growth

▪ See wage growth, as well

▪ Overall demographics and population

growth

51%

39%

7%4%

Expanded Steady Reduced No Answer

RES

PO

NSE

S

53%

39%

5% 4%

Plan to Expand Hold Steady Plan to Reduce No Answer

RES

PO

NSE

S

Historic Growth

Future Growth

3%

16%

55%

18%

8%

Decreasing wages Flat wages 0% to 3% growth 3% to 5% growth > 5% growth

RES

PO

NSE

S

Employer Reported Wage Growth

EMPLOYER PERSPECTIVESRETIREMENTS & OTHER CONCERNS


10%

33%

37%

21%

10%

29%

42%

19%

No Concern Minimally concerned Concerned Very concerned

Short-Term Long-Term

Concern with Short Term & Long Term Retirements

Impact of Substance Abuse

18%

27%

9%

18%

27%

38%35%

15%

4%8%

Virtually noimpact

Limited negativeimpact

Some negativeimpact

Negative impact Significantnegative impact

Blue Collar White CollarKey Takeaways Overall

▪ Growth

▪ Workforce quality

▪ Retirement concerns

▪ Retirements

▪ More than half reporting future

challenges

▪ Substance Abuse

▪ Some concern in blue collar industries

EDUCATION & WORKFORCE DEVELOPMENTVIEWS ON EDUCATION AND LEVELS OF INTERACTION


Key Takeaways

▪ Generally positive view

of post-secondary

education

▪ Opportunity for more

interaction between

firms and education

Overall View of Educational Institutions

Poor (1.0) Excellent (5.0)

K-12

Community/

Technical

College

4 Year Colleges

1 - Poor 16% 6% 3%

2 - Fair 16% 6% 6%

3 - Average 35% 38% 22%

4 - Good 26% 38% 47%

5 - Excellent 6% 13% 22%

Weighted Score 2.90 3.44 3.78

Level of Interaction with Educational Institutions

Low Interaction (1.0) High Interaction (5.0)

K-12

Community/

Technical

College

4 Year Colleges

1 - No Interaction 57% 37% 37%

2 - Little Interaction 23% 29% 20%

3 - Medium Interaction 9% 20% 20%

4 - High Interaction 3% 11% 9%

5 - Very High Interaction 9% 3% 14%

Weighted Score 1.83 2.14 2.43


KEY OCCUPATIONAL CLUSTERS

PRODUCTION, LOGISTICS, MAINTENANCEKEY FINDINGS


KEY FINDINGS(Comparative &

Secondary Data)

▪ Relatively strong counts

and concentration of

production workers (but

competition with SE

markets)

▪ Data show competitive

wage structure

▪ Fewer completions for

skilled production and

related training programs

Workforce Quality Ratings: Skilled Production, Logistics, Maintenance


Education Experience Certifications Technical Skill Soft SkillReading,

Writing, MathProductivity Work Ethic Turnover Absenteeism

3.50 3.90 3.70 3.60 3.70 3.20 4.20 4.30 4.00 3.90

Lack Education

Lack Certifications

Lack SkillsLack Relevant

ExperienceLack Any

ExperienceDrugs

Need Childcare/ Transpo.

AbsenteeismWon't Accept Offered Pay

Overall Competition

3.11 2.89 2.56 2.44 3.11 3.00 3.33 3.11 2.89 3.22

Common Challenge (1.0) Few Challenges (5.0)

Challenges when Hiring: Skilled Production, Logistics, Maintenance

Easy vs. Difficult to Find Skill Sets & Positions (ordered by more common responses on top)

AVAILABLE SKILLS/POSITIONS CHALLENGING SKILLS/POSITIONS

✓ Basic/Entry Level Workers✓ Basic Mechanical✓ Basic Machine Operators✓ CDL✓ Entry Level✓ Overall Experience✓ Work Ethic

Soft Skills English/ESL Machining Computer/IT Aptitude Related Job Experience Attitude, Motivation Diesel Experience Technical Skills Skilled Trades (e.g. electrical)

ENGINEERINGKEY FINDINGS


Workforce Quality Ratings: Engineering




Lack Education

Lack Certifications


ExperienceLack Any

ExperienceDrugs



Overall Competition


Challenges when Hiring: Engineering



✓ Basic/Entry Level Engineers✓ Computer Programming✓ Educational Background✓ Systems Engineering✓ Mechanical Engineers

Experienced Engineers High End IT/Technologies/Languages (e.g. Oracle,

MySQL) AutoCAD Soft Skills Troubleshooting Mechanical/Electrical Drafting Electric Engineers

3.57 3.64 3.62 3.93 3.50 3.64 3.79 3.79 3.93 3.86

3.00 3.00 2.50 2.40 3.00 3.20 3.30 3.50 3.10 2.60


Secondary Data)

▪ Strong concentration and

count of mid-skill

engineering technicians

and technologists

▪ Competition with other

production markets in the

Southeast


wage structure

▪ Regional engineering

completions (USF-Tampa,

UCF)

INFORMATION TECHNOLOGYKEY FINDINGS


Workforce Quality Ratings: Information Technology




Lack Education

Lack Certifications


ExperienceLack Any

ExperienceDrugs



Overall Competition


Challenges when Hiring: Information Technology



✓ Basic Knowledge/Experience✓ Degreed Individuals✓ Motivation/Work Ethic✓ Programming (Certifications but w/o Experience)✓ General Technical Competence

Experience Specific Languages (e.g. PHP, MySQL) (one noted

that training, methods, and languages seemed to significantly lag those in other “major” tech hubs)

Data Scientists Web Developers Cross Training Teamwork/Team Environment

4.13 3.96 3.95 4.13 3.74 4.04 4.30 4.35 4.41 4.36

3.20 3.05 2.80 2.75 3.40 3.60 3.58 3.60 2.95 2.80


Secondary Data)

▪ Growth, but keeping up

with the Atlanta’s and

Charlotte’s (sheer size,

growth, and concentration

there)

▪ Lower comparative

demand for workers


wage structure

▪ Moderate educational

completions in region

PROFESSIONAL SERVICESKEY FINDINGS


Workforce Quality Ratings: Business/Finance




Lack Education

Lack Certifications


ExperienceLack Any

ExperienceDrugs



Overall Competition


Challenges when Hiring: Business/Finance



✓ Bookkeeping✓ Educational Attainment/Degrees✓ Customer Service✓ Analytical Thinking✓ Accounting✓ Microsoft Office

People/Soft Skills Specific Industry Certifications Advanced Finance Advanced Accounting Longevity in one position Experienced Sales

4.21 4.25 4.19 4.17 4.21 4.38 4.42 4.42 4.21 4.42

3.25 3.35 3.10 3.10 3.55 3.35 3.30 3.45 3.10 3.05


Secondary Data)

▪ Very high counts &

concentration of mid-

skill prof. service

workers

▪ Relatively lower demand

for workers


wage structure

▪ Large number of

educational completions

in county, metro, and

region

JOB TITLES & SKILLS IN DEMANDKEY JOB TITLES AND SKILLS IN DEMAND IN THE REGION

SITE SELECTION GROUP |

PAGE 29

Key Takeaways

▪ Specialized Engineers

▪ Key Programming

Languages

▪ Finance & Accounting

▪ Example of less

“traditional” data

Job Title Postings Skill Postings

Quality Assurance Engineers 311 Lean Manufacturing 418

Design Engineers 269 Corrective And Preventive Actions 345

Manufacturing Engineers 140 Six Sigma Methodology 327

Project Engineers 123 Continuous Improvement Process 320

Process Engineers 115 Pharmaceuticals 303

Engineering Interns 85 Electrical Engineering 273

Product Engineers 70 Electronics 257

Quality Engineers 67 Microsoft Access 255

Systems Engineers 57 Product Quality Assurance 250

Quality Control Specialists 48 Aviation 243


Software Engineers 3,416 SQL (Programming Language) 11,453

Java Developers 3,334 Finance 11,125

Project Managers 2,872 Java (Programming Language) 9,655

Business Analysts 2,295 Software Development 8,518

Systems Engineers 2,129 Agile Software Development 8,015

.Net Developers 1,617 JavaScript (Programming Language) 7,599

Systems Administrators 1,492 Information Systems 7,193

Network Engineers 1,319 C Sharp (Programming Language) 4,914

IT Help Desk Specialists 1,310 Business Process 4,889

IT Support Analysts 952 .NET Framework 4,869


Business Analysts 4,217 Finance 24,525

Financial Analysts 2,142 Accounting 12,923

Accountants 2,091 Auditing 7,448

Auditors 1,268 Investments 5,474

Research Analysts 1,243 Financial Statements 4,609

Staff Accountants 1,076 Securities (Finance) 4,586

Training and Development Specialists 1,005 Microsoft Access 4,359

Compliance Analysts 963 Loans 3,015

Financial Advisors 896 Business Process 2,918

Tax Preparers 787 Brokerage 2,860

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SITE SELECTION GROUP’S SUMMARY VIEW

SITE SELECTION GROUP’S OVERALL VIEWLIFTING UP STRENGTHS, ADDRESSING CHALLENGES, PURSUING OPPORTUNITIES


✓ Leveraging the broader region

✓ Demographics (population growth)

✓ Moderate levels of growth

✓ View of post-secondary education

✓ Strong workforce quality metrics

✓ Wage structure

✓ Relatively lower intra-market

demand

✓ Value proposition for medium to

high-skill professional services

Traffic & congestion

Retirements

Filling the pipeline

? Educational interaction

? Pinellas “proper” demographics vs.

labor shed demographics

? Regional Competition (e.g. Orlando,

Charlotte, Atlanta, Nashville)

www.siteselectiongroup.com | 1.866.938.SITE (7483)

comprehensive regional workforce analysis

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