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Greater Martinsville Chamber of Commerce Presentation November 18, 2011 www.conexusindiana.com.

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Presentation on theme: "Greater Martinsville Chamber of Commerce Presentation November 18, 2011 www.conexusindiana.com."— Presentation transcript:

1 Greater Martinsville Chamber of Commerce Presentation November 18, 2011

2 Why Conexus Indiana In June of 2007, the Central Indiana Corporate Partnership (CICP) launched Conexus Indiana after the Battelle Report identified the following as Indiana target industry clusters: life sciences, technology, advanced manufacturing and logistics, energy/clean technologies

3 Our Mission To serve as the catalyst to position Indiana as the recognized global leader in the advanced manufacturing and logistics sectors

4 Conexus Indiana Executive Committee Robert BernhardVice President for Research, University of Notre Dame Steven DwyerPresident and CEO, Conexus Indiana Mark GerstleVice President-Chief Administrative Officer, Cummins Inc. Scott GlazeCEO, Fort Wayne Metals J. Mark HowellPresident, Brightpoint Americas Robert Koch IIPresident and CEO, Koch Enterprises, Inc. Catherine LanghamPresident, Langham Logistics, Inc. Victor LechtenbergVice Provost for Engagement, Purdue University Joe LoughreyRetired Vice Chairman, Cummins, Inc Mark MilesPresident & CEO, Central Indiana Corporate Partnership Dennis OklakChairman and CEO, Duke Realty Corporation Robert PalmerVice President, FedEx Corporation David ParishVice President of Operations, Allison Transmission, Inc. Thomas SnyderPresident, Ivy Tech Community College of Indiana

5 Conexus Strategic Priorities Workforce development identified as the top priority – employers need a new breed of skilled workers to grow/succeed Industry also wanted an organization which could focus on broad issues of mutual concern – research, public policy, infrastructure Attract and train a 21 st century AML workforce Support the sector via research, policy + infrastructure programs

6 While low-skill (-25%) and mid-skill (-18%) jobs declined over last 20 years: Employment in high-skill manufacturing occupations has risen 37%, an increase of roughly 1.2 million jobs. High skill jobs were the only source of job growth in the U.S. manufacturing sector during this period. - Federal Reserve Bank of New York The Demand for Skilled AML Workers Workforce development is economic development.

7 But Indiana Falls Short in Supplying Qualified Workers The 2011 Manufacturing and Logistics Report Card compares the state of Indianas AML industries with those of surrounding states Indiana ranks 35 th in the number of adults holding an associates degree Indiana ranks 31 st in percentage of workforce with a high school diploma and 42 nd in college-educated workers overall

8 Confronting the Human Capital Challenge Workforce readiness is the major threat to the future of Indianas largest economic sector The scope of this challenge demands a collective, collaborative approach But today, too many employers still embrace an outdated model of worker training…

9 Employers agree that a majority of their employees need more training Results from recent Conexus statewide employer survey: What percentage of your employees would benefit from targeted training for their job? 53% say half or most of their employees need additional training

10 But most employers are still hiring unskilled workers and shouldering the in-house training burden What is your minimum educational requirement for entry-level employment?

11 A Better Approach… The Old Way: Hire unskilled workers, train them in-house – expensive and inefficient for individual companies Industry is disengaged from educational institutions As skill demands rise, so do training costs – a competitive disadvantage Prospective AML employees have no consistent path to employment A New Way: Connect industry and academia – solicit private sector input to create relevant, industry-endorsed educational programs Market these programs aggressively to prospective employees Build a robust pipeline of qualified applicants – in-house training costs are lessened, overall workforce quality increased, common standards are set

12 Keys to Upskilling the Workforce Voice of Industry – identify workforce needs High School programs – start the pipeline early Community College partnerships DOE/DWD engagement – career pathways and curricula Marketing – social networks/media – attract young Hoosiers A National Campaign – portable AML credentials

13 Attract and train a 21 st century AML workforce Support the sector via research, policy and infrastructure programs Industry Led Task Force High School Champions (89) High School Superintendents (40) Career and Technical Education (15) Skills Map – Basis for Curricula Dream It. Do It. (480,000 impressions) Social Media-Awareness Events Community College Partnerships Pathways – DOE and DWD Manufacturing Institute – Skills Certification System

14 Advanced Manufacturing and Logistics Skills Map

15 What Industry Needs Today... Safety and Environment Production and Inventory Control Systems Six Sigma Tools Lean Manufacturing Principles Regulatory Compliance Total Quality Management (TQM)... Its a New World

16 Advanced Manufacturing and Logistics Pathways –AML Pathways were in the first tier of Career Pathways developed by the DOE as part of a 3 year project to transform the $100 million career and technical education program in Indiana –Conexus was instrumental in designing Pathways using the Skills Template –AML Pathways will be piloted this year

17 Champion Schools Pike High School Plainfield High School Shelbyville High School Southport High School Speedway High School Tri-County High School Triton Central High School Tri-West Senior High School Vigo County Schools Waldron Senior High School Walker Career Center Warren Central High School West Central IN Career & Tech Western Boone High School Westfield High School Whitewater Career Center Wildcat Creek Career Cooperative Zionsville High School Anderson High School Area 30 Career Center Area 31 Career Center Arlington High School Arsenal Technical High School Ben Davis High School Ben Davis 9th Grade Center Blue River Career Center Brownsburg High School Carmel High School Cascade Senior High School Center Grove High School Central Nine Career Center Century Career Center Danville High School Decatur Central High School Eastern Hancock High School Eminence High School Emmerich Manual High School Excel Center - Logistics Franklin Community High School George Washington High School Greenfield Central High School Hamilton Southeastern High School Hinds Career Center Hoosier Hills Career Center Indian Creek High School Indianapolis Metropolitan High School IPS Career Technology Magnet IPS New Tech High School Lawrence North High School McKenzie Career Center Mooresville High School Morristown High School Muncie Central High School New Castle Area Career Programs New Palestine High School Noblesville High School Parke-Vermillion Schools Perry Meridian High School Conexus Indiana - 58 High Schools

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19 Manufacturing Skills Certification System (MSCS) Working with Manufacturing Institute on national AML credentials Creating a set of relevant, consistent industry certifications that can be applied nationally Conexus acts as the voice of industry (Industry)

20 Attract and train a 21 st century AML workforce Support the sector via research, policy and infrastructure programs Industry Led Task Force High School Champions (89) High School Superintendents (40) Career and Technical Education (15) Skills Map – Basis for Curricula Dream It. Do It. (480,000 impressions) Social Media-Awareness Events Community College Partnerships Pathways – DOE and DWD Manufacturing Institute – Skills Certification System AML Report Card Published First Ever Logistics Strategic Plan Statewide Logistics Council Intermodal Support Statewide Automotive Council Statewide Aerospace/Defense Council Statewide Supplier Database (6,449) Six Current Conexus Partners

21 The Logistics Council

22 Logistics Council Members

23 Chaired by Chip Edgington, Executive Vice President of Redcats Four Task Force Groups Infrastructure – Chaired by Torrance Richardson, Ex. Director of Fort Wayne-Allen County Airport Authority in Fort Wayne Public Awareness – Chaired by J. Mark Howell, President of Brightpoint Americas, Inc. in Plainfield Public Policy – Chaired by Don Miller, Jr., President of Mt. Vernon Barge Service in Mount Vernon Workforce Development – Chaired by Chip Edgington, Executive Vice President of Redcats in Indianapolis 44 Members from around the State Logistics Council Executive Committee

24 Logistics Obstacles Facing Indiana Impact of Inaction Increased costs Potential environmental impacts Inefficient freight movement Loss of productivity for Indianas businesses Decreased safety Increased costs Potential environmental impacts Inefficient freight movement Loss of productivity for Indianas businesses Decreased safety Indianas Limitations Transportation bottlenecks Lack of direct rail service Underutilized air facilities Lack of efficient mode-to- mode connectivity Decaying locks infrastructure Lack of dredging Transportation bottlenecks Lack of direct rail service Underutilized air facilities Lack of efficient mode-to- mode connectivity Decaying locks infrastructure Lack of dredging

25 Key Indiana Logistics Go-Gets Intermodal facilities in Indiana that bypass Chicago bottleneck Increase in air cargo flights to and from Indiana airports Construction and redesign of key locks Completion of key infrastructure projects in bottleneck regions Logistics tax credit to attract and retain logistics companies Industry-driven logistics high school and postsecondary curriculum

26 Indiana Supplier INsight Helping Hoosiers do business with Hoosiers: –A procurement portal connecting Indiana companies (from all industries, though emphasizing AML firms) with in-state suppliers – Nearing 6,449 Hoosier businesses registered –Access to a Broad Spectrum of Capable Hoosier Businesses –Comprehensive Supplier Information: capability, diversity, certifications, product/services information, demographics –Supported & promoted by IEDC, Indiana Secretary of State, Department of Administration, Indiana Chamber of Commerce and Indiana Small Business Development Centers

27 Conexus, in partnership with the Indiana Economic Development Corporation, established the Indiana Automotive Council to advance automotive design, innovation and manufacturing within the state of Indiana The Council is industry driven and composed of senior executives from the most influential, most innovative and fastest growing automotive companies in Indiana The Council is helping develop a strategic plan to facilitate job creation and capital investment in the automotive industry

28 Conexus, in partnership with the Indiana Economic Development Corporation, established the Indiana Aerospace and Defense Council (IADC) to encourage growth in Indianas Aerospace and Defense cluster The IADC will serve as a structured forum to explore industry- specific issues and challenges and identify solutions to position the state to meet its long-term goals of job growth and increasing state and local revenue The IADC will serve as a voice of Indianas aerospace and defense cluster

29 Questions?

30 Workforce Facts Manufacturing employees more than 500,000 people in Indiana Logistics employees more than 300,000 Hoosiers 61% of U. S. companies cite a serious shortage of skilled production workers At the same time, nearly 1,000,000 Hoosiers lack the basic educational skills needed

31 Indiana: The Crossroads of America Indianapolis International Airport: 8 th largest cargo airport in North America Indiana is 9 th among states in rail miles (nearly 4,500 miles) Indiana ranks 14 th in the U. S. in waterborne freight traffic Indiana exported over $28 billion of goods in 2010 The logistics industry contributes nearly $9 billion to Indianas Gross State Product (2009) 75% of the nations population and businesses are within a days truck drive of central Indiana

32 Did You Know? Indianas motor vehicle industry is the 2 nd largest in the United States, producing more than $9.8 billion in goods Indiana is home to more than 630 automotive companies More than 120,000 Hoosiers are employed by the Indiana automotive industry 6 different Original Equipment Manufacturers (OEMs) have automobile assembly facilities in Indiana... More than any other state More than 11% of all automobiles produced in the United States are produced in Indiana

33 Did You Know? In 2010, more than 1,600 Indiana employers entered into prime contracts with the Department of Defense, worth a total of $4.35B (24 th nationally) companies surpassed more than $1M in contracts - Small businesses received a total of $577M, at an average contract value of approximately $95K Harvard Universitys Cluster Mapping Project indentified Indianapolis as the 4 th largest aerospace engine cluster in the North America NSWC Crane is the 3 rd largest naval installation in the world Northeast Indiana Defense Industry Association (NIDA): shining a spotlight on Department of Defense opportunities


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