A Swelling Economy $150 Billion oil/gas related projects 2014-2018 That’s $37.5 Billion per year Most projects are in Louisiana (Houston to Mobile and the Florida panhandle) Doesn’t include another $150 Billion in related infrastructure projects How many skilled electricians will be needed?
The Laborers Are Few Two Major Factors: Current labor force growing grayer by the year Drop-off in apprenticeship training
Skilled Laborers Growing Grayer Since 2009, the average age of the construction worker went from mid-30s to mid-40s By 2020, the number of workers > 55 will increase from 20 to 25% of the workforce Staffing firm “Manpower” reported (May ‘14) 58% execs struggling to find skilled labor and 74% believe problem will worsen next 5 years
Drop-off in Apprenticeship Training The GREAT RECESSION caused enrollees and potential enrollees to look at other fields or go on unemployment rolls Former NJATC Director Mike Callanan said NECA/IBEW apprentices were down 12,000 to 15,000 due to economy Career counselors, education officials and parents derided construction as dead end
Increasing the Number of Skilled Laborers Utilize CW/CE classifications Skilled labor “re-education” paramount Transformational training needed Growing the talent pool Improve working conditions Call to Action – what we know “Oath of Obligation” as our goal
Utilize CW/CE Allows contractors to recruit directly from non- union competitors Puts workers directly to work without having to qualify for “apprenticeship” Opens lines of communication between NECA chapters and IBEW leadership Helps strengthen local Business Manager’s leadership Provides boost to contractors and unions – increasing annual work hours and the number of skilled Journeymen and Apprentices
“Re-education” about Skilled Labor College Education Completion is no longer guarantee of job/benefits Federal Gov’t. $300B/yr. Bureau of Labor Statistics 70.1% 2009, 65.9% 2014 Apprentice Training Honor, great pay/benefits, upward mobility Federal Gov’t. $40M/yr. Why not shift some funding 4% = $12B
Transformational Training Needed Transformational Training Requires Knowing the Learner Law of the Learner - the “learners” perspective Law of Expectation – trainers’ perceptions of learners without preconceived limitations Law of Application - time-tested wisdom must be imparted – not “just the facts” Law of Retention – the most information, in the shortest time, for the greatest retention Law of Need – know the learner’s needs not just the course scope and sequence Law of Equipping – making the most of every teaching and communicating opportunity Law of Revival (Transformation) – a firm foundation of communication in every area not just the training center Not a shortage of people, but a shortage of “trained” people Training separates “quality” workers from the rest Continue a focused training of the best apprentices with the best practices in the industry Raising the bar of transforma- tional leadership leaves no room for pettiness or politics Humility breeds transformation
Growing the Talent Pool “WoM” still best advertisement Next best advertisement – social media (websites, Facebook, Twitter) Re-visiting jobfairs, industry nights, talent search especially in vo-tech schools/colleges CONTACT “Helmets to Hardhats” Utilizing staffing solutions firms Creative partnerships (Louisiana Workforce)
Improving Working Conditions Training for Supervisors Recruiting Supervisors Worker Parking/Transportation at/to-and- from Worksite No more “Pot-o-Gold” Climate controlled break-room/dining facility Workforce “camps” – individual, climate controlled rooms, cafeterias, laundrymats
At Least ACT on What We Know “Gulf Coast Region Labor Market Analysis Executive Summary” (Industrial Info Resources, Sugarland, TX) 2013-18, 564 capital projects $152B (not including related projects) 22.8% Lake Charles ($33B) 19.6%Greater Houston Shortage 80K Construction Craftsmen – Gulf Coast 9300 electrician shortfall (about 1500/yr.) “Estimating the Need for New Electricians” (CLRC, Washington, DC) 2023, 1/3 of current IBEW electricians 62 yrs. old or > Fewer younger (17-40) than older (41-69) 2/3 of the loss of 18K+ IBEW from 2005-13 were under 40 2015 - 6,310 (39%) growth + 9,982 (61%) replacement 2022 - 7,475 (45%) growth + 9,244 (55%) replacement
Skilled Labor Shortage is National According to the NEBF and the IBEW records: on 12/31/13 - 14,325 members were age 62 or > (born in 1951 or before) on 12/31/14 - 5,404 were added to that number over the next 9 years, by 12/31/23 - 85,163 members will be 62 or > roughly, ONE THIRD of current membership will likely be retired
Growing Wisconsin’s Talent Pool Foster approaches for enabling youth to enter the world of work by encouraging employers and secondary and postsecondary education to align apprenticeships, internships, dual enrollment opportunities, industry certification programs, and other applied learning programs with the skills clusters roadmap.
People: Our Foremost Resource The past two centuries we’ve thought about workers and workforce development in reactive terms This new age of skilled labor shortages is forcing us to recommend a proactive talent strategy The existence of a rightly skilled talent pool will empower companies, entrepreneurs and investment to grow
Skilled Labor Development: No Spectator Sport Parents, students, teachers, counselors, employers, and workers must all participate in quest to develop our skilled labor workforce Total involvement will strengthen local economic capacity, build prosperity and make better communities
Skill Gaps and Talent Shortages ManpowerGroup asked 38,000 employers in 40 countries where they were having difficulty finding talent. Nearly half (49%) of U.S. employers indicated they were having trouble finding the skilled workers they needed. That places the U.S. 35 th among those surveyed – the global average is 34%.
Global % Having Difficulty Filling Jobs U.S. Key Skills Shortages 1.Skilled Tradespeople 2.Engineers 3.IT Staff 4.Sales Representatives 5.Accounting/Finance 6.Drivers 7.Mechanics 8.Nurses 9.Machinists 10.Teachers % by Country Compared Japan 81% Brazil 71% Australia 50% U.S.A. 49% Mexico 43% Germany 42% Global Average 34% Canada 25% China 23% UK 11%
Jeff Joerres, ManpowerGroup Chairman and CEO Business leaders and governments need to act now to establish working partnerships with colleges, vocational institutions and high schools in the communities where they do business. Employers must proactively identify skills they need from workers into the future, and then collaborate with academic leaders in identifying the right training required. We can no longer afford to have business and education working in silos if communities are to compete economically in the Human Age, where talent is the key competitive differentiator.