A Synergistic Partnership Between Industry and Education Trane, NC3 and CTE A Synergistic Partnership Between Industry and Education Gregory J. Josefchuk – Strategic Programs Leader; Trane

Agenda Introduction to Trane HVAC – A Growth Industry Addressing the Needs for the Workforce of Tomorrow Transforming CTE – A Model for Collaboration Trane’s Partnership with NC3 Trusted Advisor to CTE Center’s of Excellence (CoE) Questions

The Trane brand is about building life. Our careful attention to the needs of the building can improve the life of equipment, controls and systems. Meeting the needs of the building promotes environments that impact the lives within the building and fosters productivity and profitability. We improve the life of your building and the lives within your building. We see something beyond the physical structure. We see the environments in which people work, play, learn, heal and create.

Building Life Through Commitment We are committed to energy efficiency and sustainability, with more than 700+ LEED-accredited professionals. Since 2008, Trane has given out nearly 70 Energy Efficiency Leader Awards to our customers around the world. Customers trust Trane to give loyalty, passion and dedication to their mission

Building Life Through Knowledge Trane’s total number of U.S. patents to date is over 900. Our number of individual inventors is 555. Then…the original class Trane’s Patent Wall in La Crosse, Wisconsin Graduate Training Program (GTP) Began in 1925 2 classes annually for most years ~ 8,700 participants have gone through the GTP, including sales and marketing engineers from more than 50 countries worldwide Now…the current class A legacy of excellence, knowledge and true expertise

Happy 35th, Trane Controls! Defining the industry every day Building Life Through Innovation Trane Intelligent Services Places Trane into a new era of building system management that allows customers to make data-driven decisions and improve maintenance procedures to control costs and avoid downtime Trane Axion Variable-speed Water-source Heat Pump (WSHP) One of the first of its kind in the HVAC industry, Trane’s most energy-efficient WSHP yet offers innovative variable speed solution for increased energy efficiency and reduced operating costs without sacrificing comfort Happy 35th, Trane Controls! Happy 40th, Trace™! Trane Rental Services Offers reliable temporary solutions for short- and long-term HVAC and power requirements Tracer XT™ Unique controls platform designed by Trane and GE to integrate, manage & optimize critical facility systems such as security, fire and safety – as well as HVAC Trane Intellipak™ I Rooftop Air Conditioning Unit Leads the industry with intelligent design that creates lower installed costs, excellent energy efficiency that means lower operating costs, and ease of maintenance and legendary toughness that deliver peak performance for decades Defining the industry every day

Building Life for 100 Years 1958 Trane settles in Europe 1885 James Trane launches a plumbing business 1938 Turbovac: First hermetic centrifugal unit 1984 Trane acquired by American Standard Inc. 1978 Trane enters Energy Management, Controls and BAS business 1923 The convector radiator replaces cast iron radiators 1931 Trane’s first air conditioning unit was promoted: the Trane Unit Cooler 1913 James & his son Reuben incorporated the Trane Company 1925 Trane Graduate Engineer Training Program 1982 Trane acquires the central air conditioning department of General Electric 2008 Trane is acquired by 1950s Trane unitary or self contained air conditioning units for commercial use TODAY Trane has 700+ LEED Accredited Professionals

The HVAC Industry – Poised for Growth

Industry Statistics In 2010 heating, air-conditioning and refrigeration mechanics and installers held about 267,800 jobs with about 55% working for plumbing, heating and air-conditioning contractors. The rest were employed in a variety of industries...refrigeration and air-conditioning service and repair shops, schools...government, hospitals, office buildings, etc. About 16 percent of these workers were self-employed. (Department of Labor, Bureau of Labor Statistics, 2010-11 Edition, Job Outlook)

The HVAC Industry Employs over 1.2 Million Workers Industry Statistics ASHRAE estimates there are 51,000 engineering jobs related to HVACR engineering or similar employment in the US and Canada. AHRI and HRAI estimates approximately 142,000 individuals are employed in the manufacturing segment of the HVACR industry in the US and Canada. HARDI reports that an estimated 60,000 people are employed in the HVACR wholesale distribution segment of the industry in Canada and the US. The HVAC Industry Employs over 1.2 Million Workers

Industry Forecast The employment need of heating, air-conditioning and refrigeration mechanics and installers is projected to increase 34 percent during the 2010-20 decade, much faster than the average for all [non HVACR] occupations. As the population and stock of buildings grows, so does the demand for residential, commercial and industrial climate control systems. (Department of Labor, Bureau of Labor Statistics, 2010-11 Edition, Job Outlook) 86,000 new jobs are needed by 2018 according to the HVACR Workforce Development Foundation Residential HVACR systems generally need replacement after 10 to 15 years; the large number of homes built in recent years will enter the replacement time frame by 2018.

Problem-solving time…

Current State Source – Industry Workforce Needs Council (IWNC)

Current State Pathways to Prosperity*: In 1973, 32% of the jobs created in the United States did not require a high school degree; by 2007, that percentage was 11%. From 2000 to 2010, the employment to population ratio for 18- to 19-year-olds dropped from 51.4% to 28.5%. For Americans aged 20 to 24, the drop was from 74.2% to 62.2% - Translation: If you’re a young person and don’t possess the right skills, it is very difficult to find gainful employment! Its not that the level of skills in students dropped, it’s the level of skills required by employers have increased * Source: Harvard Graduate School of Education (2011)

Here’s what we’re facing… “About 10 million manufacturing jobs cannot be filled worldwide because of a shortage of skilled workers, according to a report released by the World Economic Forum and Deloitte Touche Tohmatsu Ltd.” (4/24/12 article – Chicago Tribune) “…today, and for every day for the next 19 years, 10,000 baby boomers will reach age 65. The aging of this huge cohort of Americans (26% of the total U.S. population are Baby Boomers) will dramatically change the composition of the country”. (Pew Research Center) Skilled workforce than honed their skills on the job are retiring.. Every day 10K people are reaching 65 and while some stay in the workforce longer, others leave earlier…. So we are losing people and don’t have a back up plan where employers are looking for people to step in and be productive on day 1 .

ACT Skills Gaps report… Significant foundational skills gaps exist for United States workers and job seekers tested with WorkKeys® skills assessments, possessing both middle and high levels of education, for jobs that require a similar level of education. For manufacturing, healthcare, construction and energy-related target occupations requiring a middle or high level of education, the majority of U.S. WorkKeys examinees are not able to demonstrate the required skill level for locating information. This skill involves the ability to locate, synthesize, and use information from workplace graphics such as charts, graphs, tables, forms, flowcharts, diagrams, floor plans, maps and instrument gauges.

Who should solve these issues? Government Education Industry

A Model for Success “Effective, high-quality CTE programs are aligned not only with college- and career-readiness standards, but also with the needs of employers, industry, and labor. They provide students with a curriculum based on integrated academic and technical content and strong employability skills.” “The students participating in effective CTE programs graduate with industry certifications or licenses and postsecondary certificates or degrees that employers use to make hiring and promotion decisions. These students are positioned to become the country’s next leaders and entrepreneurs.” U.S. Department of Education, Office of Vocational and Adult Education, Investing in America’s Future: A Blueprint for Transforming Career and Technical Education, Washington, D.C., 2012.

Roger Tadajewski – Executive Director NC3 – An Introduction Roger Tadajewski – Executive Director

NC3 is a network of education providers and corporations that supports, advances and validates new and emerging technology skills in the transportation, aviation and energy industry sectors. NC3 is a network of colleges, industry leaders, and organizations that identifies and establishes standards and develops certification to train students and other educational institutions’ instructors in the transportation, aviation and energy sectors. NC3 develops, standardizes. implements and sustains certifications across the nation 40 colleges participating, 80 colleges engaged Hundreds of thousands of students involved nationwide

Certifications Across Industries NC3 National Coalition of Certification Centers Aviation Torque Meter Foreign Object Damage* Tool Control Systems* Precision hole drilling* Energy Climate & Energy Control Technologies HVAC / Controls Geothermal Tool Safety * Transportation Automotive Diagnostic Diesel Diagnostic Wheel Service Vehicle Information Management Advanced Propulsion Systems* The current certifications are listed here. There are 3 under development at this time – Foreign Object Damage – applicable to aviation and energy sectors, and Tool Safety – applicable to the energy sector and Tool Control Systems applicable across all three industry sectors.

Trane as Energy Advisor to NC3 Members

Commercial Energy Chain Supply Demand Value Chain Risk Management Design services, benchmark, assess, implement, sustain Energy Supply Distribute Sell Meter Procure Reduce/Operate Report Report Utility Scale Generation District Heating and Cooling Traditional Distribution Nat Gas Metering / Sub Metering Nat Gas Load Optimization System Optimization Compliance Natural gas Steam, Hot and Cold Water UHV, HV, LV Electricity Building meters / AMR Electricity Demand Response Building Regulatory Coal Distributed Generation District Heating and Cooling Other fuels Sub metering Other Fuels Time of Day Process Management Nuclear Bio Energy Steam, Chilled Water, Hot H2O Water / Sewer Smart Grid Water / Sewer HVAC-R Environmental Wind Solar Carbon Credits Supply/Demand Communication Carbon Credits Lighting Capabilities and Solutions Demand Aggregation / Brokerage Component Optimization Solar Natural Gas / Oil / Diesel PPA Rebates / Incentives Hydro Fuel Cell Primary / Secondary Conversion Rank Company 500 Revenues rank ($ millions) 1 Exelon 134 18,859.00 2 Southern 149 17,127.00 3 FPL Group 154 16,410.00         4 Dominion Resources 157 16,290.00 5 PG&E Corp. 176 14,628.00 6 Edison International 184 14,112.00 7 Public Service Enterprise Group 190 13,741.00 8 Consolidated Edison 191 13,725.90 9 FirstEnergy 194 13,627.00 10 Duke Energy 204 13,212.00 11 Entergy 205 13,093.80 12 CenterPoint Energy 238 11,322.00 13 Xcel Energy 242 11,203.20 14 Sempra Energy 252 10,758.00 15 Pepco Holdings 254 10,700.00 16 DTE Energy 285 9,336.00 17 Progress Energy 288 9,186.00 18 NiSource 289 9,069.50 19 PPL 314 8,206.00 20 Ameren 327 7,839.00 21 Atmos Energy 343 7,221.30 22 CMS Energy 369 6,821.00 23 Northeast Utilities 424 5,800.10 24 Scana 445 5,319.00 25 Wisconsin Energy 515 4,431.00 26 Nicor 577 3,776.60 27 Alliant Energy 588 3,681.70 28 NV Energy 608 3,528.10 29 Pinnacle West Capital 621 3,435.10 30 Allegheny Energy 630 3,385.90 31 TECO Energy 632 3,375.30 32 Puget Energy 638 3,357.80 33 NSTAR 641 3,345.40 34 Hawaiian Electric Industries 655 3,218.90 35 Southern Union 679 3,070.20 36 AGL Resources 717 2,800.00 37 WGL Holdings 748 2,628.20 38 Vectren 782 2,484.70 39 PNM Resources 789 2,466.50 40 National Fuel Gas 803 2,400.40 41 Great Plains Energy 816 2,337.50 42 Laclede Group 829 2,274.40 43 Southwest Gas 867 2,144.70 44 Piedmont Natural Gas 881 2,089.10 45 Westar Energy 952 1,839.00 46 Portland General Electric 987 1,745.00 Total for top 47 Utilities - 341,422.30 Million Wind Distribution Competency Established Developing Not Targeted Storage Zone Consumption Geo Thermal Behavior Ingersoll Rand / Trane Expanding Comprehensive Energy Risk Management Capabilities

Supporting CTE Industry advisor to NC3 member institutions Assessment Instructor training Curricula development Best practice sharing / collaboration Assist with local education-related activities Local HVAC industry representative Provide industry related data Industry scholarship program (Reese Foundation) Job shadowing, internships, recruitment programs Sustainability / energy conservation curriculum (BTU Crew) Assist with learning environment transformation Design & layout of HVAC Center of Excellence Turnkey (installation) services Project management & reporting

Transforming this into…

HVAC Center Of Excellence

A vision… http://www.youtube.com/watch?v=mQ24JRi6hHE&feature=youtu.be

Upcoming Events AACC Regional Events - Oct. 21-22; Trane hosting in Topeka, KS ACTE CareerTech VISION 2013 in Las Vegas - Dec. 5-6; Trane presenting WDI 2014 in St. Petersburg, FL - Jan. 29 thru Feb. 1, 2014; Trane presenting

Rex Parsons – Hill College, Hillsboro, TX NC3 – An Introduction Rex Parsons – Hill College, Hillsboro, TX

NC3 and Hill College - Introduction Rex Parcells, Vice President of Instruction Hill College Back Ground History and Future with NC3 Snap-On Trane Support for TACS

Hill College Back Ground, History Est. in 1921, First Enrollment in 1923, Hillsboro Texas 2013, 90 Year Anniversary Campus Locations Hillsboro, Tx, Cleburne. Tx Meridian, Tx, Burleson, Texas and Glen Rose 4400, Current Enrollment

Hill College, History and Future with NC3, Snap-On and Trane NC3 Relationship Began with Snap-On NC3/Hill College, Snap-On Overview Automotive Specialization, Cleburne, Texas Technology Center Enrollment and Curriculum Offering/Futures NC3, HVAC, Energy Future w/Trane 36K SqFt “Energy Building” Renovation, Cleburne, Tx HVAC, Energy Class Rooms and Integrated HVAC Lab New Equipment and Technology with a Curriculum focused on Cross Industry Employment Opportunities

Hill College, History and Future with NC3, Snap-On and Trane NC3 Benefits for TACS Students Dual Credit opportunities Extended to Vocational Learning, Automotive, Energy (Now)