Connections: Collaborations, Partnerships and Linkages

1
Connections Collaborations, Partnerships and
Linkages

• Fred Dedrick
• Executive Director
• Pennsylvania Workforce Investment Board
• NGA Workforce Development Policy Forum
• January 11, 2005
• Miami, Florida

2
Outline

• New economic realities
• Pennsylvanias challenges
• Next Generation Workforce Strategy
• Industry partnerships
• Strategic Investments
• High priority occupations
• System accountability

3
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

4
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

5
Pennsylvanias 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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Pennsylvanias 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 PAs 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

8
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

13
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

• Governors 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 dont believe youre 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 Dedrick
• Executive Director
• Pennsylvania Workforce Investment Board
• 901 North 7th Street, Suite 103
• Harrisburg, PA 17102
• [phone]
• fdedrick_at_state.pa.us