logistics and international trade: career ladders and training

LOGISTICS AND INTERNATIONAL TRADE: CAREER LADDERS AND TRAINING PROGRAMS

IN AN EVOLVING SECTOR

October, 2008

ABOUT PORT JOBS

Port Jobs is a non-profit action tank, working to increase access to living-wage jobs for residents of the Greater Seattle area. We develop practical programs that make good jobs easier to get and good employees easier to find. We foster a more vibrant and equitable economy throughout King County. This study is the second in a series of research reports on Logistics, Transportation, and International Trade. For more information please contact Port Jobs at [email protected] or 206-728-3882. To download additional copies of this study and other Port Jobs’ research reports, please see our website at: http://www.portjobs.org. A special thank you to Bronwyn Mauldin for consulting on the writing and research associated with this report.

Cover photograph by Don Wilson/Port of Seattle

© Port Jobs, October 2008

All rights reserved

TABLE OF CONTENTS Executive Summary ……………………………………………………..…………..……………2 LIT Career Lattice: A Success Story…………………………………..………………………….4 Introduction……………………………………………………………………………………..…5 Industry Structure…………………………………………………………………..….…………..6 LIT Training Programs: Overview………………………..……………………………………..11 Analysis………………………………………………………………..………….……………...13 Areas of Opportunity……………………………………………..……………………………...20 Conclusion……………………………………………..………………………………………...23 Appendix 1: Logistics and International Trade Defined by NAICS Codes…………….......……24 Appendix 2: LIT Training Programs Overview……………………...…………………………..25 Appendix 3: Who We Interviewed……………………..………………………………………..28 Appendix 4: Resources…..………………………………………………………………………29

© 2008 Port Jobs Page 2

EXECUTIVE SUMMARY Logistics and International Trade (LIT) is an emerging industry that has changed dramatically in recent years as international trade has grown. The Puget Sound region, home to two major U.S. ports in Seattle and Tacoma, has experienced this growth first-hand. Earlier Port Jobs research found that LIT employment in the region is projected to grow at a rate faster than the growth rate of freight volume moving through local air and seaports. Nearly half the jobs in the industry can be classified as “entry level,” but most “advancement” positions require vocational or university training. While the current slowdown in the economy means growth has fallen off somewhat, ships are still coming and going through U.S. ports laden with goods entering and leaving the country. For this study of LIT training programs we reviewed information on seventeen training programs; we also interviewed heads of three community college-based LIT training programs, two training consortia, and two university-level training programs, as well as a worker who has successfully made the transition from an entry-level LIT job into management. What we found is an industry that is only just beginning to be understood as a discrete sector. As the global supply chain has become far more complex and technical, the jobs required to manage it are becoming professionalized. Many LIT training programs are relatively new, and certifications and pathways among training programs vary greatly. As a result, career pathways are not always clear. Lateral job moves and increased education play a strong role in improving career opportunities. LIT occupations fall into two broad categories:

Transportation/Warehousing/Distribution Supply Chain Management

• Technical/Skilled • Skilled Labor • Semi-Skilled

• Executive • Managerial

While it is relatively easy to gain skills for entry level jobs on the Transportation/ Warehousing/Distribution side, and somewhat easy to move within that category, transitioning to Supply Chain Management positions is more difficult. While it was once possible for a hard-working, ambitious person to start out as a forklift driver or shipping clerk and climb into the highest levels of management, today such a transition is much harder. To qualify for the top executive and managerial jobs in supply chain management, a bachelor’s degree plus experience working in the industry is usually required. As hiring practices in the LIT sector change, new training programs are being developed to meet the needs of employers and workers in the industry. Job training and placement in LIT have developed without much planning, while the sector has grown dramatically. Today, workforce intermediaries, community colleges and employers have a unique opportunity to develop an


employment system that could help LIT workers improve their skills and career opportunities, while providing employers with a more skilled and productive workforce. In order to accomplish this, we recommend focusing on five key action areas:

1. Create linked training modules

2. Assist English language learners with tailored training

3. Partner with employers

4. Support incumbent workers in career advancement

5. Build educational pathways across multiple training institutions


LIT CAREER LATTICE: A SUCCESS STORY STACY MATTSON MANAGER OF LANDSIDE OPERATIONS AT SEA-TAC AIRPORT Stacy Mattson started her career in Logistics and International Trade as an Account Supervisor / Front Desk Manager for Holman Distribution Center, a warehousing and third party logistics provider based in Kent, Washington. She was making almost $14 an hour, and her main responsibilities involved day-to-day administrative and customer service issues. Fast forward ten years, and today Mattson is a Manager of Landside Operations at Sea-Tac Airport, overseeing more than eighty employees and a budget of $5.2 million, with an annual salary of $79,000 plus benefits. Mattson made a successful transition from an entry level job in LIT into management. What was the pathway that took her there? When Mattson started in the industry, she already had her general education associate’s degree in hand. While she was working at Holman, Mattson was encouraged by a friend who was working at the Port of Seattle to apply for a job there. Mattson eventually took a job as an HR Assistant at the Port, despite having to take a cut in pay and rank. The risk paid off. A year and a half later, Mattson moved up to a position as an Administrative Assistant in the Landside Operations division at the airport. She quickly became interested in parking and ground transportation issues. Mattson realized that if she wanted to keep moving up the career ladder, she needed to get a bachelor’s degree. She enrolled at Northwest University full time while continuing to work, and earned her BA in Organizational Management in 2002. In 2003, Mattson was promoted to a supervisory position where she oversaw the work of five people. When a manager above her moved to another division two years later, Mattson was promoted to Program Manager, responsible for increasing parking revenue for the airport. Today, Mattson is one of only three managers in Landside Operations, but she won’t be stopping there. She knows that advancement will require additional on-the-job experience and further education. In 2009, she plans to become a Certified Administrator of Public Parking through the International Parking Institute. She’s also beginning to look into master’s degree programs. Mattson has a few recommendations for people who are starting out in the LIT industry:

• Be honest about what you’re interested in. Don’t be embarrassed if you discover that you like something other people might find weird, like parking.

• Make lateral moves that help you learn the business. It looks good to hiring managers if you can say you took a new job without a promotion or raise so that you could learn more.

• Get your degree. Don’t get bogged down in the details of which degree to get and where, just get it done.

• Seek out positions and opportunities where you will be visible. Find ways to work with many different people at your company. Networking increases your visibility and marketability, both within your company and more broadly within your field.


INTRODUCTION As the movement of goods and services worldwide has expanded exponentially in recent years, the number and types of jobs available in the Logistics and International Trade (LIT)1 sector have grown to keep pace. Recent research by Port Jobs2 found that in 2002 some 35,846 people were working in 224 different occupations in King County, in the 14 sub-industries3 that make up the LIT sector. Freight and LIT employment are projected to grow rapidly through 2012 (Figure 1).4

As the number of openings and types of jobs have expanded, new training programs have been created, some to prepare new workers to enter the sector and others to retrain incumbent LIT workers. These range from short-term certificate programs to post-graduate degrees. Port Jobs’ research found that 46% of LIT occupations (103) could be classified as “entry level” based on the

limited training required, but that 66% of all LIT employees (23,639) worked in those jobs. It further found that the largest share of “advancement” positions (nearly 30% of all LIT occupations) required some kind of vocational or university training to qualify. The Council of Supply Chain Management Professionals (CSCMP) lists 156 American and five Canadian colleges and universities that offer related courses (see Appendix 2). Most of these are baccalaureate-level and higher programs. However, CSCMP’s list does not include the growing number of community and technical colleges with certificate and associate-level degree programs. Growth in international trade has led to an increase in job openings, and corresponding growth in certificate and associate-level programs preparing workers for entry-level jobs in LIT. Skills needs in this industry are beginning to change, as are hiring practices. This study looks at what training is available for entry-level LIT workers, who is served by these programs, and how to bridge gaps in training programs in order to help disadvantaged workers and job seekers succeed and advance in LIT careers. 1 This sector is referred to by several different names, including Transportation, Distribution and Logistics (TDL) and Logistics Management. 2 Employment in Logistics and International Trade, 2006, http://www.portjobs.org/resources/research/litemployment.pdf 3 By 4-digit NAICS code. See Appendix 1. 4 Data sources: 2004 Marine Cargo Forecast, Washington Public Ports Association; Washington State Employment Security Department.

Projected Freight and LIT Employment Growth

0

20,000

40,000

60,000

80,000

100,000

2002 2004 2006 2008 2010 2012

Year

Freight growth (inthousands of metrictons)Employment growth(top 50 LIT jobs)

In the past you learned on the job. That’s not necessarily the case today. Trucking depends on terminal operators, who depend on customs, etc. People need to understand that full picture. They need people who understand how the whole thing fits together, how to move goods from any place in the world to any place in the world.

--Raegan Copeland, Director Center of Excellence in ITTL

Figure 1


INDUSTRY STRUCTURE In order to understand the career opportunities available in LIT and the training required to advance, it’s important to know how the industry has evolved as international trade has grown over the last fifty years. In earlier days of American manufacturing, products were simpler and the parts used to build them came from a few sources, most of them within the U.S. For example, manufacturing a hammer requires a wooden handle, a steel head and some kind of adhesive to hold them together. By comparison, today’s Dell computers require parts from all over the world, as Figure 2 shows.5

Figure 2

Moreover, today’s economics require that companies have on hand only enough parts to meet short-term demand – “just-in-time” warehousing. Having too many parts sitting in a warehouse wastes space and time and can cost the company more in storage and taxes.

5 Source: Aerotropolis 2006 Urban Design Charrette, University of Michigan, Taubman College of Architecture and Urban Planning, http://www.tcaup.umich.edu/charrette/2006/aerotropolis06_kasarda.pdf.


As a result of all these changes, the global supply chain has become far more complex to manage. This has created a larger number of jobs in warehousing, trucking and railroads, and at seaports and airports. At the same time what was once a minor, back-office job of logistics management, has become a highly technical field, now known as “supply chain management.” As supply chain management has become more technical and more professionalized, training requirements for these jobs have become much more demanding. While it was once possible for a hard-working, ambitious person to start out as a forklift driver or shipping clerk and climb into the highest levels of management in an LIT company, today that transition is much harder. In order to qualify for top jobs in supply chain management, a bachelor’s degree or more – as well as experience working in the industry – is usually required. The sector is thus best understood when divided into two broad categories, Transportation/ Warehousing/Distribution and Supply Chain Management. Most of the executive and managerial jobs tend to fall in the Supply Chain Management category, as shown in Table 1:6

Table 1

Transportation/Warehousing/Distribution Supply Chain Management • Technical/Skilled

• Skilled Labor

• Semi-Skilled

• Executive

• Managerial

6 The five sub-categories are identified in Hoops, John. “Occupational Structures and Educational Requirements in Transportation, Distribution and Logistics.” Unpublished discussion paper. Belmont, Massachusetts: Futureworks, LLC. 2005.


The following table shows both the structure of occupations in the industry, and typical job titles in each category:

Table 2: Occupational Structures in LIT7

7 Adapted from a chart by John Hoops. 8 Ohio State University 2003 Survey of Career Patterns in Logistics Management, page 8. 9 Council of Logistics Management. Careers in Logistics Management, page 11. 10 U.S. Department of Labor, Career Guide to Industries (Occupational Outlook Handbook), 2004-2005 Edition. Various Sections and Occupations: Trucking, Transportation and Warehousing: Air Transportation; Rail Transportation; Purchasing Managers, Buyers and Purchasing Agents.

Executive8

Logistics Division General Manager Logistics Director

Vice President for Transportation and Logistics CEO/Owner

Managerial9

Logistics Consultant

Information Systems Manager International Logistics Manager

Inventory/Vendor Manager Logistics Engineer

Logistics Services Manager

Managerial

Production Manager Purchasing Manager

Supply Chain Manager Transportation Operations Manager

Material Manager Warehouse Operations Manager

Occupation/

Sector10 Trucking Air Cargo Rail Water Ware-housing Logistics

Technical/ Skilled

Mechanic Installer

Repair and Maintenance

Parts-Manager Dispatcher

Clerks Sales

Supervisor

Distribution-Manager Maintenance-

Mechanic Flight-Controller Flight-Engineer

Sales Supervisor

Ground-Maintenance Airfield-Operations

Mechanic Dispatcher

Yard-Master Conductor

Crew-Supervisor

Ship-Engineers Shipping-Brokers Licensed Engineer

Shipping/ Receiving

Clerks Sales

Supervisor

Forecaster Analyst Purchasing-

Manager Buyer

MIS- Manager IT-Tech Vendor-

Representative Customer- Service

Rep

Skilled Labor Drivers

Long Distance Drivers

Delivery-drivers

Commercial-Pilots Co-Pilots

Installers and Repairers

Driver Locomotive-

Engineer Brake, Signal,

Switch Operators

Captains, Deck-Officers

Pilots Harbor-Pilots

Oilers Machinists

Equipment Operator

Scheduler Expediter Inventory- Controller

Semi- Skilled Loaders Packers

Material-Movers Freight- Handlers

Freight-Handlers Cleaners Laborers

Yard-Labor Packers


Ordinary- Seamen

Deck-Hand Pumpers

Longshoremen Wipers

Warehouse Labor


Stocking-Clerk Assistants


The next table shows examples of Washington wages for one job in each of those categories:

Table 3: Examples of hourly wages for LIT occupations in Washington

Moving up the first three rungs of this ladder is relatively easy. These positions generally require only a certificate, federal or state license; some require only a high school diploma. Training courses are short and, in general, not very expensive. In the case of workers on water and rail, apprenticeship programs are available that provide paid, on-the-job training. The transition into the top managerial and executive positions, however, is far more difficult. These positions generally require at least a bachelor’s degree, and will also require some years of experience working in the industry. The table below reproduces Table 1, showing common training requirements at each level:

11 National figure from O*NET; Washington figure unavailable. 12 Washington hourly wage calculated from O*NET median annual wage.

Executive

Chief Executives $83.10

Managerial

Logisticians

$32.78

Managerial

Purchasing Managers $45.97

Occupation/

Sector Trucking Air Cargo Rail Water Warehousing Logistics

Technical/ Skilled

Dispatchers, Except Police,

Fire, and Ambulance

$19.70

Aircraft Mechanics and

Service Technicians

$25.71

Railroad Conductors and

Yardmasters $26.7011

Ship Engineers

$32.49

First-Line Supervisors/ Managers of Non-Retail

Sales Workers $38.90

Wholesale and Retail Buyers, Except Farm

Products $25.58

Skilled Labor Truck Drivers

$14.14 to $18.53

Commercial Pilot

$25.5312

Signal and Track Switch Repairers

$21.41

Captains, Mates, and

Pilots of Water

Vessels $30.59

First-Line Supervisors/ Managers of

Helpers, Laborers, and

Material Movers, Hand

$22.72

Production, Planning, and

Expediting Clerks $21.78

Semi- Skilled Laborers and Freight, Stock, and Material Movers $12.63


Table 4: Common training requirements


LIT TRAINING PROGRAMS: OVERVIEW Seventeen training programs and two training consortia were identified through online research and interviews as offering promising models. Table 5 summarizes key points from these programs. Six of these programs are in the Seattle area. Three are in California. Seven are in other parts of the country, and one is entirely online. More details on each of these programs are presented in Appendix 2. This list of training programs is not exhaustive. Many other schools in the Puget Sound area and nationally offer training in logistics, supply chain management and specific LIT-related careers.

Table 5

Seattle area programs Secure Logistics Certificate and Degree Program Tacoma Community College

Tacoma, WA

International Trade Certificate North Seattle Community College Seattle, WA

Purchasing and Supply Chain Management Shoreline Community College Shoreline, WA

International Business and Trade/Washington Center of Excellence in ITTL Highline Community College Des Moines, WA

Transportation, Logistics and Supply Chain Management South Seattle Community College Seattle, WA

Global Trade Transportation and Logistics Studies University of Washington Seattle, WA

California programs

Global Logistics California State University, Long Beach Center for International Trade and Transportation Long Beach, CA

Transportation Logistics/ Goods Movement Training Program

Logistics Working Group Los Angeles, CA

Logistics Training Consortium (LTC) of Southern California

Consortium of six community colleges in Southern California: Chaffey College, East Los Angeles College, Mt. San Antonio College, Rio Hondo College, Riverside Community College, San Bernardino Valley College

Programs in other regions and online College of Business and Public Policy, Logistics Department

University of Alaska Anchorage Anchorage, AK

Transportation Management Cecil College North East, MD

Certified Distribution Logistics Technician Program Estrella Mountain Community College Avondale, AZ

Transportation, Logistics and Cargo Security Program Anne Arundel Community College Arnold, MD

Logistics and Supply Chain Management Volunteer State Community College Gallatin, TN

Logistics Management Ivy Tech Community College Lafayette, IN

Freight Broker/Freight Agent Kansas City Kansas Community College Kansas City, KS

Maritime Learning Online Association of Ship Brokers and Agents Online


Most of the programs can be divided into two categories. Six of these programs offer only a non-academic professional certificate or license for targeted entry level jobs:

1. International Trade Certificate, North Seattle Community College 2. Certified Distribution Logistics Technician Program, Estrella Mountain Community

College 3. Transportation, Logistics and Cargo Security Program, Anne Arundel Community

College 4. Freight Broker/Freight Agent, Kansas City Kansas Community College 5. Maritime Learning Online, Association of Ship Brokers and Agents 6. Transportation Logistics / Goods Movement Training Program, Logistics Working Group

Seven of these programs offer AAS degrees. AAS degrees generally do not include academic course requirements needed to transfer to four-year schools. Most of these programs also offer non-academic professional certificate programs as well.

1. Secure Logistics Certificate and Degree Program, Tacoma Community College 2. Purchasing and Supply Chain Management, Shoreline Community College 3. International Business and Trade, Highline Community College 4. Transportation Management, Cecil College 5. Logistics and Supply Chain Management, Volunteer State Community College 6. Logistics Management, Ivy Tech Community College 7. Logistics Training Consortium of Southern California, Mt. San Antonio College (host)

Three of the programs we reviewed do not fit either category: The Global Trade Transportation and Logistics Studies Program at the University of Washington offers a certificate that is designed for working professionals and/or students studying for a master’s degree. A bachelor’s degree is required for entry into the regular or extension program. The Global Logistics program at the Center for International Trade and Transportation at California State, Long Beach offers a certificate that can be earned through face-to-face classes or online. CITT also offers a master’s degree in Global Logistics. The University of Alaska’s Logistics Department offers the most comprehensive program. Students can enter at any level to earn a professional certificate, AAS, BA or MA degree. A student can enter at the certificate level and earn every degree all the way up to a master’s. A student can leave and re-enter the program at different times in his or her career.


ANALYSIS We reviewed information on seventeen LIT training programs. From this set, we interviewed heads of three community college-based LIT training programs, two training consortia, two university-level training programs and two employers. We also profiled a worker who made a successful transition from entry-level LIT jobs into management. What we found is an industry that is only just beginning to emerge as a sector. Training programs are relatively new, and certifications and pathways among training programs vary greatly. As a result, career pathways are not always transparent. Lateral job moves and increased education can play a strong role in improving career opportunities. Below, we explore the following areas:

1. A new sector, a new field for training

2. Certificates and credentials

3. Job placement

4. Connections to four-year institutions

5. Lateral moves

6. Services for disadvantaged job seekers

7. What do employers want?

1) A New Sector, a New Field for Training Programs that prepare people to work in the LIT sector in the U.S. generally have not been existence for very long, for two interrelated reasons. First, LIT has only been acknowledged as an employment and training sector in recent years. Second, the number and types of jobs in the sector has expanded dramatically in recent years, driving the development of new training programs. Both of these developments can be tied to the explosion of international trade in the U.S. since the 1990s. For example, Tacoma Community College piloted its first class in spring 2007, and the Logistics Training Consortium of Southern California launched its training program in 2006. South Seattle Community College is launching its first Transportation, Logistics and Supply Chain Management class in Winter Quarter 2009. By comparison, the Center for International Trade and Transportation at California State University, Long Beach, one of the older programs in the study, was founded ten years ago. Traditionally, training for LIT took place on the job. Advancement to better jobs was based less on education and more on experience. Directors of LIT training programs report that this is beginning to change as knowledge and skill demands of jobs in the sector become more and more complex.


As jobs and required skills have become more complex at all levels, new training programs have emerged to meet new training needs. Because these programs are so new, they are not yet connected to each other in ways that would support career development and career ladders.

2) Certificates and Credentials A certificate from a community college in, for example, forklift driving, can get you in the door to get a job driving a forklift. An AA or AAS degree in logistics or international trade can also help you land an entry-level job in the field. A bachelor’s degree in global logistics (or related degree) from a recognized university can help you get a job in supply chain management, especially if you have experience working in the field already. There is no single, national accrediting organization setting standards for training in the LIT sector, especially at the entry/certificate level. The Council of Supply Chain Management Professionals (CSCMP) offers online training courses and provides a list of universities around the world (primarily in the U.S.) that offer degrees in supply chain management. However, they do not reach down into the Transportation/Warehousing/ Distribution training level. There are other organizations that provide standards. For example, Highline Community College is a member of NASBITE International (formerly known as the North American Small Business International Trade Educators), and uses their standards for “Certified Global Business Professional.” NASBITE’s certification includes logistics, as well as international business and marketing. Another is the Association for Operations Management (APICS). John Hoops identified at least seven other trade organizations and/or government agencies involved in credentialing or licensing LIT workers in his 2005 study.13 More recently, the Department of Homeland Security has introduced the Transportation Worker Identification Credential (TWIC), which is required for all workers who require unescorted access to secure areas of ports, vessels, or outer continental shelf facilities, and all credentialed merchant mariners.

13 American Society for Transportation and Logistics (ASTL), Brotherhood of Locomotive Engineers and Trainmen (BLET), Council for Logistics Management (CLM), Department of Transportation (DOT), Federal Aviation Administration (FAA), Federal Railway Administration (FRA), Maritime Administration (MA). Licenses are issued by the US Coast Guard.

Training and development of people at the operations level has not been a major consideration in logistics because they always found people for jobs. As these jobs become knowledge-based, training will become more important.

--Dr. Philip M. Price, Chair Global Logistics Management Program University of Alaska Anchorage

The certificate is a foot in the door for entry level jobs and for workers who want to make a lateral move to a different job in the industry. Long-term, an AA degree will help in moving up the ladder.

--Erika Bowles Program Chair Secure Logistics Certificate and Degree Program Tacoma Community College


In lieu of any single credentialing system, many LIT training programs have received local recognition of their certificates by actively involving employers in program planning and development. Most training programs either have an employer advisory committee or are connected with local LIT employer associations. However, this approach requires labor-intensive, company-by-company outreach in an industry dominated by small businesses. In the Los Angeles area, the Logistics Training Consortium of Southern California worked closely with the local Distribution Management Association to gain recognition for their certificate. The Center for International Trade and Transportation (CITT), also in L.A., was officially sponsored for a period by the Port of Long Beach; they also secured scholarship funds from local trade associations. Several programs, including CITT and the University of Alaska Anchorage (UAA), report that the key to getting employers to recognize their training and credentials is to have working professionals in the LIT field teach their courses. Some of the older LIT training programs gained industry recognition when local industry managers earned certificates or degrees through their programs. For example, UAA reports that the regional manager for Lynden Incorporated, one of the largest shipping companies in the area, is taking the UAA certificate program for continuing education. The disconnect between the Transportation/Warehousing/Distribution level and the Supply Chain Management level in LIT is mirrored in the structure of training programs. Workers who earn short-term certificates or AAS degrees can find themselves unable to break through the barrier into the bachelor’s level training that would qualify them for jobs in Supply Chain Management. Because there is no single, comprehensive, industry-wide credentialing system, certificates are less portable than they could be. There is no system that would allow a worker the flexibility to leave and return to training programs for skills upgrades. This means that workers who leave at the certificate or AAS level may experience barriers to returning for additional education and training. The comprehensive program at the University of Alaska Anchorage is one notable exception, starting with a frontline certificate program, and continuing through associate’s, bachelor’s and master’s level degrees. Working people can exit the program and return at different levels, according to their interest and career development. 3) Job Placement In line with the structure of the industry, the community college training programs interviewed for this study generally place their trainees in entry-level jobs. UAA does not do job placement, and CITT reports that they do not track placement. Those who do reported the following:


Highline Community College Entry level jobs with no experience. $10-12 an hour

Tacoma Community College Entry-level jobs in warehousing, trucking companies, ports, radio-frequency ID

Logistics Training Consortium of Southern California Entry-level, average $10 an hour, with benefits

One area for further exploration is the role of temporary employment agencies in filling labor demand in LIT. Staff at the Logistics Training Consortium were surprised to discover just how many LIT employers use these services in the Los Angeles/Long Beach area. While there may be a large number of job openings, the LTC director noted that many of them may be temporary, especially in warehousing and distribution. They made an effort to place their trainees in permanent jobs, working directly for the companies rather than temp agencies. Usage of temp agencies by Seattle-area LIT employers, and the effects of that usage on the LIT career ladder, should be explored in more detail. 4) Educational Pathways A community college certificate that can be completed within a year will not usually include any of the general education requirements necessary for an AA degree. In order to move up into a supervisory position or even further into supply chain management, a certificate holder often must either start over from scratch with no credits at a four-year institution, or go back and complete general education requirements for an AA degree before transferring to a four-year school. Community college programs report that many people choose the certificate option in order to gain job skills that will get them to work quickly. By choosing not to meet the general education requirements for the AA or AS degree, students may limit their education and potential career opportunities farther down the road. Another important detail is the difference between AAS and AA/AS degrees. Many of the community college certificate programs link to an Associate in Applied Science (AAS) degree, which usually is a terminal degree. It does not include the full range of general education requirements either for an Associate’s degree (AA or AS) or for transfer to a four-year institution. That means an individual who started out earning a certificate and did continue on to complete an AAS degree will still have to take additional course work in order to earn a bachelor’s degree. Some colleges and universities have developed alternatives that reduce the amount of “makeup” education that students with AAS degrees must take to catch up with peers who earned AA or AS degrees.

If you’ve been doing warehousing, bar code, [radio frequency] ID readers, it’s going to be hard to move into the main office, where sales projections, warehouse improvement, long range planning, and infrastructure development are done.

--Greg Shelton, Managing Director GTTL Certificate Program University of Washington


The University of Alaska Anchorage is unique in that it offers a seamless connection for students starting with a certificate, and progressing to associate’s, bachelor’s, and master’s degrees. Students may leave at one level, and then return later for further education. CITT in Southern California offers a certificate and a master’s degree in LIT; students must turn elsewhere for education at the bachelor’s level.

The GTTL program at the University of Washington (UW) offers a certificate that students can earn while enrolled in a master’s program. Increasing demand led the UW to add a non-degree GTTL certificate through the extension program. In 2008, a new set of standards was instituted, and anyone wishing to earn the non-degree extension certificate must already have a bachelor’s degree and experience working in the industry.

There is no four-year institution in the Seattle area offering an LIT bachelor’s degree. Students interested in working in the industry either go to schools in other areas or get a general business degree. 5) Lateral Moves As Port Jobs’ earlier study showed, LIT hierarchies are flat, and opportunities for advancement are limited. From an entry-level warehousing, trucking or clerk position, the only way to move up is into supervision, and there are few of those positions. For a person who wants to make the transition to supply chain management, a four-year degree is required. Lateral movement within the LIT industry is very common. Workers often move from one job to another within a company, and from one company to another, in search of better pay and working conditions. The ability to move upward is more limited. Several training programs and employers reported that these lateral moves within the company or within the industry can be extremely valuable for career advancement. They allow an individual to gain a wider perspective on the broader supply chain. The worker also gains specific new skills. These moves may not translate into immediate increases in wages or benefits, but may provide greater opportunity for advancement in the long term. One important exception to this rule of flat hierarchies and unclear pathways is the merchant marine. Merchant mariners work on ships, both those that travel internationally and those that carry goods on U.S. rivers and lakes. To work in the U.S. Merchant Marine, the first steps are basic training and federal

We’re a pretty flat organization, but that doesn’t mean it’s not possible to make some movement. We have had people move from the crafts or from clerical into supervisory roles, but that was through deliberate planning.

--Lindsay Pulsifer, General Manager Marine Maintenance

Port of Seattle

To be competitive in today’s marketplace it’s becoming more important to have a BA degree. If I have a choice and the skills set is same, I’ll choose the person with a higher level of education because that shows a measure of commitment to stick it out.

--John Christianson, General Manager Aviation Maintenance Sea-Tac Airport


certification. This is followed by training on the ships in an apprentice-style program. Hierarchy, ranks and pathways up the chain of command are similar to the military. The number of hours of experience and skills required to advance are clearly delineated. 6) Issues for Disadvantaged Job Seekers English language skills Strong English language skills are important for success in LIT. Immigrant workers with limited English may be able to qualify for certain entry-level jobs, but advancement and even lateral moves may be limited. Tacoma Community College has sought funding to create a program combining remedial English and math with forklift driver training. Ex-offenders Many logistics employers will not hire workers with felony records. Federal licensing standards for pilots, railroad workers and ship workers may also limit opportunities for individuals with prison records. In addition, the new TWIC credential has created new barriers for workers interested in working on marine ports. This affects workers who load and unload ships and drive trucks on and off the ports, as well as those who work for terminal operators and port authorities. Drug Testing Similarly, many companies have active drug testing policies. Government-issued licenses for some LIT jobs require drug testing as well. Services All of the community college-based programs and other entry-level certificate programs reviewed in this study have an interest in serving a population that is not served by traditional four-year schools. CITT received a grant a few years ago for a four-week Global Logistics Employee program, and found placement to be extremely challenging. When the grant was completed after two classes, CITT decided not to continue the program. CITT was originally designed for working professionals, and the director found that CITT was unprepared to address the barriers experienced by many disadvantaged job seekers. The challenges CITT experienced suggest that mainstream LIT training programs may need to be redesigned in order to serve disadvantaged workers and job seekers effectively. 7) What Do Employers Want? All of these programs report strong ties to LIT employers. They further report that employers are primarily looking for workers with basic work readiness skills, good work ethics and strong, basic skills in English and math, and computer literacy. To qualify for entry-level jobs, it is not necessary come in with specific job skills. For example, many companies use proprietary computer systems and software, and new workers will be trained on these on the job.


Employers are also concerned that the LIT sector has a bad reputation – or perhaps no reputation at all. Few people are aware of it as an industry. Those who are may think of logistics as simply moving boxes around in a warehouse, when in reality, it has evolved into a complex industry which requires highly sophisticated computer systems. Several training programs have found that one of the most basic employer needs is for entry-level courses that teach LIT terminology and the basics of how the industry functions. Without knowing those basics, an employee will struggle to succeed on the job.

Soft skills are what [employers are] looking for. Show up on time, read and write English, do basic math, be teachable. All companies have their own warehouse management systems, so you will be trained on the company’s proprietary system. You should be computer-comfortable, not necessarily savvy.

--Christine Bozar, Interim Project Director Logistics Training Consortium of Southern CA


AREAS OF OPPORTUNITY Hiring practices in the LIT sector are changing, and new training programs are being developed to meet the needs of employers and workers in the industry. LIT job training and placement have developed without much planning, while the sector has grown dramatically. Today, workforce intermediaries, community colleges and employers have a unique opportunity to develop an employment and training system that could help LIT workers improve their skills and career opportunities while providing employers with a more skilled and productive workforce. A parallel can be seen in the health care industry. Several years ago, as the U.S. nursing shortage reached critical proportions, workforce agencies, community colleges and employers began working together to develop programs that would train Certified Nursing Assistants and Licensed Professional (or Vocational) Nurses as they worked, for upgrade to Registered Nurses. Before those programs were developed, workers seldom made the transition from those certificated entry level positions (CNA and LPN) to the RN level. Today, these programs are common across the country. Such programs are skills-based and many of them are located in, or connected to, community colleges. A four-year degree is not necessarily required. These new RNs are earning better salaries and benefits while meeting the health care industry’s need for skilled workers. Another industry that has only recently developed skills-based certificates is Information Technology (IT). In its early days, the computer field was largely made up of university-educated professionals. Demand for skilled workers soon outpaced supply, and nationally-recognized certificates were developed. Today a wide range of providers, including community colleges, private colleges and employers, offer certificated training for systems administrators, support technicians and management information systems professionals. If LIT is to become a long-term career opportunity for workers who start out at the entry level with certificates in hand, a similar process must occur. Workforce intermediaries must work with stakeholders to develop skills-based training programs that will create clear career pathways in the industry. These programs should be modular and stackable, so that a worker can continue working while in training, and can spread the training out over his or her career. These training programs should break through the barriers between Transportation/Warehousing/Distribution jobs and those in Supply Chain Management. To achieve this goal, we recommend that stakeholders begin by working together on five key strategies:

1. Create linked training modules

2. Partner with employers

3. Assist English language learners with tailored training

4. Support incumbent workers in career advancement

5. Build educational pathways across multiple training institutions


1) Create Linked Training Modules Many students who opt for certificate programs or AAS degrees do so at the expense of long-term education and career opportunities. While many community college programs link their certificates to AAS degrees, the reality is that the lack of AAS articulation to academic degrees can make future education and career advancement harder to attain. To improve career opportunities, workforce development programs should:

• Educate students in certificate programs about the long-term advantages of an AA degree; and

• Find ways to provide support services that would allow students to return or continue on for an AA degree (or further) while continuing to work in the industry.

Workforce intermediaries and community colleges should work together to develop modular, stackable certificates in LIT that meet the skills needs of employers. At a minimum, these should be designed so that attainment of a certificate facilitates continuing education. This could involve creating certificates recognized statewide that allow students to move from one campus to another seamlessly, as their careers demand. At best, this might articulate into a degree, similar to the model offered by the University of Alaska-Anchorage. With so many short-term programs already in existence in the Puget Sound region, many of the parts are already in place locally, but new links need to be forged and gaps need to be filled. A program like this could involve multiple campuses and training programs working together. 2) Partner with Employers Most companies in LIT are small businesses and lack resources to invest in employee training. For example, in Washington State in 2002 there were 4,399 business establishments in Transportation and Warehousing (NAICS codes 48-49) with a total of 65,315 employees.14 That averages out to fewer than fifteen employees per company. Workforce intermediaries and community colleges will have to find innovative ways to work with small businesses in order to develop effective career ladders and training programs. In the past, LIT employers have been able to meet their labor needs relatively easily. As the labor pool shrinks and becomes more diverse, and as LIT jobs at all levels are becoming more technical, filling jobs with qualified workers is a greater challenge. In addition to developing skill-specific LIT training programs, workforce intermediaries and community colleges can:

• Help employers understand the changing makeup of the workforce;

• Give employers tools for succession planning that include training to help frontline workers become supervisors and managers:

• Involve employers in the development of training programs with recognized certificates. 14 2002 Economic Census, Transportation and Warehousing, U.S. Census Bureau, August 2005, http://www.census.gov/prod/ec02/ec0248awat.pdf.


3) Assist English Language Learners (ELL) with Tailored Training Many ELL students require language, as well as remedial math training, in order to successfully complete community college certificate programs. Research in other industries suggests that LIT courses, offered in conjunction with contextualized English-language training, could be especially effective15. Airport Jobs and Airport University offer a model bridge program that could be replicated in the LIT sector more broadly specifically to support ELL workers. Because ELL students come from other countries, many of them have language, cultural and geographic knowledge of other parts of the world that could be valuable to LIT employers. Workforce intermediaries should explore ways to help workers and employers utilize that knowledge on the job. 4) Support Incumbent Workers in Career Advancement Getting an entry-level job in LIT is not difficult. Lateral movement within the sector is easy and happens regularly. Moving up into management is the challenge. There are a large number of incumbent workers in the Transportation/Warehousing/Distribution part of the industry who need assistance to turn an LIT job into a long term career with good wages. Workforce intermediaries might choose to focus on identifying and helping incumbent workers who simply lack the skills and education required for advancement. This might include providing support services such as transportation, child care, mentoring and scholarships. Workforce intermediaries should also work with employers to identify job-specific pathways that are both lateral and upward-moving. Then they can help incumbent workers succeed in designed lateral moves that will broaden their knowledge and skills in ways that will help them advance. 5) Build Educational Pathways Across Multiple Training Institutions Each LIT program in the Seattle area offers some unique angle on and opportunity in the industry. No one college provides everything an individual might need for lifelong learning and career advancement in the industry. The Center for Excellence in International Trade, Transportation and Logistics at Highline Community College has some responsibility for coordinating and bolstering the LIT training efforts of community colleges statewide. Workforce development programs could provide additional support for this kind of coordination. The Logistics Training Consortium of Southern California offers one potential model for partnerships among training programs. With funding from the Economic and Workforce Development Department of the state’s community college system, six community colleges came together to coordinate training programs. The LTC also coordinates marketing and

15 Washington State’s community college system has pioneered just such a model, the nationally acclaimed I-BEST program, http://www.sbctc.ctc.edu/college/e_studentsuccess.aspx .


promotion both to potential business customers and to potential students for all programs in the consortium. With so many training programs in the Puget Sound region, an effective approach would involve articulation agreements between campuses that allow students to pursue the modular, stackable trainings, certificates and degrees that suit their specific needs. At minimum, such agreements would recognize specific classes or certificates earned at other campuses. At best, it could involve development of formal credentials that are recognized by employers and colleges statewide. CONCLUSION Even in the current economic slowdown, the U.S. is still dependent on international trade, and the Puget Sound region is more trade-dependent than other areas of the country. While the U.S. imported more than it exported in the economic good times, today’s weak dollar translates into more exports than imports. The goods may be moving in a different direction, but they are still moving, and demand for workers is still strong. Training programs report that there is still a shortage of entry-level workers in LIT. This creates an opportunity for players in the workforce system to work together to develop credentials, programs and support services that will help workers forge long-term, family-supporting careers in logistics and international trade.


APPENDIX 1: LOGISTICS AND INTERNATIONAL TRADE DEFINED BY NAICS CODES

4-digit code used in this study

6-digit NAICS Code Component

4811 481111 Scheduled Passenger Air Transportation 481112 Scheduled Freight Air Transportation 4812 481211 Nonscheduled Chartered Passenger Air Transportation 481212 Nonscheduled Chartered Freight Air Transportation 481219 Other Nonscheduled Air Transportation 4821 482111 Line-Haul Railroads 4831 483111 Deep Sea Freight Transportation 483112 Deep Sea Passenger Transportation 483113 Coastal and Great Lakes Freight Transportation 483114 Coastal and Great Lakes Passenger Transportation 4832 483211 Inland Water Freight Transportation 483212 Inland Water Passenger Transportation 4841 484110 General Freight Trucking, Local 484121 General Freight Trucking, Long-Distance, Truckload 484122 General Freight Trucking, Long-Distance, Less Than Truckload 4842 484210 Used Household and Office Goods Movinga 484220 Specialized Freight (except Used Goods) Trucking, Local 484230 Specialized Freight (except Used Goods) Trucking, Long-Distance 4881 488111 Air Traffic Control 488119 Other Airport Operations 488190 Other Support Activities for Air Transportation 4882 488210 Support Activities for Rail Transportation 4883 488310 Port and Harbor Operations 488320 Marine Cargo Handling 488330 Navigational Services to Shipping 488390 Other Support Activities for Water Transportation 4884 488410 Motor Vehicle Towinga 488490 Other Support Activities for Road Transportation 4885 488510 Freight Transportation Arrangement 4889 488991 Packing and Crating 488999 All Other Support Activities for Transportation 4931 493110 General Warehousing and Storage 493120 Refrigerated Warehousing and Storage 493130 Farm Product Warehousing and Storage 493190 Other Warehousing and Storage a Added due to use of four-digit codes. See Methodology in the previous report for details.


APPENDIX 2: LIT TRAINING PROGRAMS OVERVIEW Seventeen training programs and two training consortia were identified through online research and interviews as offering promising models. The table below summarizes key points from these programs. Six of these programs are in the Seattle area. Program Location Award Length Academic

credits? Model(s)

Secure Logistics Certificate and Degree Program

Tacoma Community College Tacoma, WA

Certificate 21 credits Link to AAS Link certificate to AAS /

Advisory committee AAS16 in Logistics

96 credits Yes

International Trade Certificate

North Seattle Community College Seattle, WA

Certificate 24 credits No Standalone certificate

Purchasing and Supply Chain Management

Shoreline Community College Shoreline, WA

Certificate 48 credits Link to AAS

Link certificate to AAS AAS 94

credits Yes

International Business and Trade / Washington Center of Excellence in ITTL

Highline Community College Des Moines, WA

Certificate 54 credits Link to AAS

Center for Excellence in International Trade, Transportation & Logistics

AAS 96 credits Yes

Transportation, Logistics and Supply Chain Management

South Seattle Community College Seattle, WA

Certificate 19 credits TBD17

Using curriculum developed by Anne Arundel Community College in Maryland

Global Trade Transportation and Logistics Studies

University of Washington Seattle, WA

Certificate 20 credits

Credit: if enrolled in a UW master’s program Non-credit: must have BA to enter

Supply chain management

16 AAS: Associate’s in Applied Science. This is usually a terminal degree that does not include the general education requirements for an Associate of Arts (AA) or Associate of Sciences (AS) degree. 17 South Seattle Community College is just launching its logistics training program this year. They have plans to develop an AAS degree program, in partnership with another local community college.


Eleven of the programs we reviewed are outside the Seattle area. Program Location Award Length Academic

credits? Model(s)

College of Business and Public Policy, Logistics Department

University of Alaska Anchorage Anchorage, AK

Certificate 30 credits Apply toward AAS

Seamless transfer of credits from certificate through BA

AAS 60 credits Apply toward BA

BA 120 credits Continue on to MA

MA 30 credits

Global Logistics

California State University, Long Beach / Center for International Trade and Transportation Long Beach, CA

Global Logistics Specialist

5 modules; can be completed in 6 mos. to 1 year

Unknown Can be completed entirely online

Certified Global Logistics Employee18

100 hours No

Tuition for early participants covered by EDD & foundation

Master’s Degree 30 units Yes Primarily for people working in the LIT field

Transportation Management

Cecil College North East, MD

Certificate 27 credits Link to AAS Trans & Logistics not included in Business Admin AAS 67 credits Yes

Certified Distribution Logistics Technician Program

Estrella Mountain Community College Avondale, AZ

Certificate 160 hours Unknown Completers certified by Southwest Skill Center

Transportation, Logistics and Cargo Security Program

Anne Arundel Community College Arnold, MD

Certificate 18 credits Unknown

More general certificate; includes Supply Chain Management course

Logistics and Supply Chain Management

Volunteer State Community College Gallatin, TN

Certificate 12 credits Link to AAS Link certificate to AAS AAS 60 credits Yes

Logistics Management

Ivy Tech Community College Lafayette, IN

AAS 61 credits Yes Standalone AAS

Freight Broker/Freight Agent

Kansas City Kansas Community College Kansas City, KS

License 150 hours No Entirely online

Maritime Learning Online

Association of Ship Brokers and Agents Online

3 ASBA certificates

12-24 weeks depending on certificate

Only attorney continuing education

Created by a trade association; Entirely online

Transportation Logistics / Goods Movement Training Program

Logistics Working Group Los Angeles, CA

Certificate 5 weeks No

Project led by WorkSource Center; Free to participants

18 This program no longer exists


Program Location Award Length Academic credits? Model(s)

Logistics Training Consortium (LTC) of Southern California Host: Mt. San Antonio College

Chaffey College Rancho Cucamonga, CA

Certificate 26 credits Core credits apply to AAS

Consortium of six community colleges; Also offers customized training for employers

AAS Yes

East Los Angeles College Monterey Park, CA

Technology and Logistics Skills Certificate

11 credits (Level 1); 17 credits (Level 2)

No

Rio Hondo College Whittier, CA

Certificate in Logistics Management

17 credits No

Riverside Community College Norco, CA

2 certificates in Global Logistics 18-30 credits

Core credits apply to AAS

2 AAS 60 credits Yes

Valley College San Bernardino, CA

General Warehouse Operations Career Certificate

5 credits No


APPENDIX 3: WHO WE INTERVIEWED Highline Community College International Business and Trade / Center of Excellence in International Trade, Transportation and Logistics Raegan Copeland COE Director Tacoma Community College Secure Logistics Certificate and Degree Program Erika Bowles Program Chair Logistics Training Consortium of Southern California Six community colleges in Southern California Christine Bozar Interim Project Director California State University Long Beach Center for International Trade and Transportation Global Logistics Marianne Venieris Executive Director University of Alaska Anchorage Global Logistics Management Dr. Philip M. Price Chair

University of Washington Global Trade and Transportation Logistics Program Greg Shelton Managing Director South Seattle Community College Malcolm Grothe Executive Dean for Workforce Education Mike Porter Project Manager, Alliance for Corporate Education FutureWorks John Hoops Consultant Transportation Institute Rich Berkowitz Director, Pacific Coast Operations Port of Seattle John Christianson General Manager of Aviation Maintenance Port of Seattle Lindsay Pulsifer General Manager of Marine Maintenance


APPENDIX 4: RESOURCES Research and information on Logistics and International Trade

Employment in Logistics and International Trade, 2006, Port Jobs, http://www.portjobs.org/resources/research/litemployment.pdf. 2004 Marine Cargo Forecast, Washington Public Ports Association; Washington State Employment Security Department Aerotropolis 2006 Urban Design Charrette, University of Michigan, Taubman College of Architecture and Urban Planning, http://www.tcaup.umich.edu/charrette/2006/aerotropolis06_kasarda.pdf. Hoops, John. Occupational Structures and Educational Requirements in Transportation, Distribution and Logistics. Unpublished discussion paper. Belmont, Massachusetts: Futureworks, LLC., 2005. 2003 Survey of Career Patterns in Logistics Management, Ohio State University. Careers in Logistics Management, Council of Logistics Management, page 11. Occupational Outlook Handbook, Bureau of Labor Statistics, U.S. Department of Labor, http://www.bls.gov/OCO.

LIT Training programs online In the Seattle area:

Secure Logistics Certificate and Degree Program Tacoma Community College Tacoma, WA http://www.tacomacc.edu/academics/areasofstudy/logistics.aspx International Trade Certificate North Seattle Community College Seattle, WA http://www.northseattle.edu/business/iti.htm Purchasing and Supply Chain Management Shoreline Community College Shoreline, WA http://www.shoreline.edu/shorelinepdfs/plan/psBAPurchase.pdf International Business and Trade Washington Center of Excellence in ITTL Highline Community College Des Moines, WA http://flightline.highline.edu/cg/international.business.html


Global Trade Transportation and Logistics Studies University of Washington Seattle, WA http://depts.washington.edu/gttl

Outside the Seattle area:

College of Business and Public Policy Logistics Department University of Alaska Anchorage Anchorage, AK http://logistics.alaska.edu/logistics.asp Global Logistics California State University, Long Beach Center for International Trade and Transportation Long Beach, CA http://www.uces.csulb.edu/CITT Transportation, Logistics and Cargo Security Program Anne Arundel Community College Arnold, MD https://www.aacc.edu/cws/files/TLC.pdf Logistics and Supply Chain Management Volunteer State Community College Gallatin, TN http://catalog.volstate.acalog.com/index.php?catoid=9 Logistics Management Ivy Tech Community College Lafayette, IN http://www.laf.ivytech.edu/degree_programs/programs.php?prog=Business%20Administration;%20Logistics%20Management Maritime Learning Online Association of Ship Brokers and Agents Online http://www.asba.org/Learning/start.html Transportation Logistics / Goods Movement Training Program Logistics Working Group Los Angeles, CA http://www.communitycareer.org/PAGES/logistics.htm Logistics Management Program Riverside Community College Norco, CA http://www.academic.rcc.edu/logisticsmanagement


General Warehouse Operations Valley College San Bernardino, CA http://depts.valleycollege.edu/Transportation/index.php?page=wareandlogisticprogram.htm Logistics Training Consortium of Southern California Mt. San Antonio College Walnut, CA http://www.ltcsocal.com

Other training and career resources:

Professional education at the Council of Supply Chain Management Professionals http://cscmp.org/education/education-lp.asp CSCMP’s listing of universities offering logistics-related courses: http://cscmp.org/Education/EduListing.asp Careers in Supply Chain Management http://www.careersinsupplychain.org/

2007 Survey of Career Patterns in Logistics Max M. Fisher College of Business Supply Chain Management research Group Ohio State University http://www.100ksupplychainjobs.com/images/OSU%20career%20patterns%202007.pdf

PORT JOBS REPORTS Other LIT –related reports produced by Port Jobs include: Employment in Logistics and International Trade: Opportunities and Limitations This is the first report in the series, and provides an overview of the sector, and of the employment opportunities that it provides. (2006)http://portjobs.org/LIT.pdf Big Rig, Short Haul: A Study of Port Truckers in Seattle This report provides an overview of port-related short haul trucking, of the work requirements, and of the challenges and opportunities related to this work. (2007) http://portjobs.org/bigrig_shorthaul_exec.pdf (Executive Summary) http://portjobs.org/bigrig_shorthaul.pdf (Full Report) Airport University – Next Steps for Promoting the Education and Advancement of Incumbent Workers at Sea-Tac Airport (2008) This policy brief includes analyses of course completion data and interviews with 120 Airport University students, and is informed by a comprehensive literature review. Recommendations for next steps, which can be extrapolated to other educational efforts focusing on low-wage workers, are also included. http://portjobs.org/Airport_University_Policy_Brief.pdf

logistics and international trade: career ladders and training

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