A Sustainable Funding Model for Community Skills Gap Initiatives

Key Factors For Sustainability Shared Vision Alignment through Branding Employer Engagement Balanced, Dynamic Portfolio Low No Overhead Return on Investment

Shared Value

Strategic Vision: To build a world class talent pool to support the retention and growth of regional manufacturers Key Focus Areas: Deliver skill training that closes the skill gap between job seekers and available jobs Provide services and systems to more effectively match job seekers and available jobs in the manufacturing sector Improve the image of manufacturing employment among job seekers, students, parents, and school personnel What is Advancing Manufacturing?

Economic Development Indiana’s Technology Corridor Workforce Development WorkOne West Central REACH Center Education Ivy Tech Corporate College Area Vocational Districts Communities City of Lafayette Tippecanoe County White County Who is Advancing Manufacturing? Employers 40 Manufacturing firms from throughout 12 counties Utilities Carroll-White REMC Tipmont REMC Duke Energy

Why Manufacturing? 17% 29.9% $39,537 $73, Mfg. % of Region’s jobs Mfg. % of Region’s wages Average Regional per job wages Average Regional mfg. earnings Multiplier effect for mfg. Characteristics of job quality EGR4, 2012 nonfarm employment and earnings

Role of Strategic Doing Strategic Doing Gave Us: Ability to Solve Complex Problems in the Civic Space Declaration of Interdependence Action-Oriented Planning Flexibility to React to Environmental Changes Alignment

Skill Gaps Still Growing Middle Skill Jobs 55% Middle Skill Workers 49% Low Skill Jobs 20% Low Skill Workers 26% Indiana’s Forgotten Middle Skills--2011

New World, Old Tools Specifications: – High School Diploma – GED – Some Manufacturing Experience Selection Process Limited Onboarding High Turnover High Injury Rates

Redefine “Qualified” MSSC Certified Production Technician Skills – Safety – Quality – Manufacturing Processes – Maintenance Awareness Align – Educators – Employers – Workforce Development – Economic Development

Creating Shared Value in the Hiring Food Chain

Premier Firms Related Middle Tier Firms Upper Tier Related Firms Unrelated Middle Tier Firms Unemployed Related Lower Tier Firms Higher Education Unrelated Lower Tier Firms K-12 EARNINGSEARNINGS The Hiring Supply Chain

A Transactional Model Identifying and Paying Suppliers +Lowers risk to training firm +Increases value +Recoups investments -Costs ≠ Value -Hard to assign value directly -High costs to track -Doesn’t recognize shared value Premier Firms Related Middle Tier Firms Upper Tier Related Firms Unrelated Middle Tier Firms Related Lower Tier Firms

Link & Leverage Resources to Fuel a Value Creation Cycle Premier Firms Related Middle Tier Firms Upper Tier Related Firms Unrelated Middle Tier Firms Related Lower Tier Firms Economic Develop WorkOneIvy Tech Federal Funds Local Governments State Grants Foundations INVESTMENTINVESTMENT VALUEVALUE

A Brand is Born A brand, not an organization No assets Everyone owns it No one owns it Aligns and unifies efforts

Employer Engagement

Authenticity Yields Acceptance Recruit Candidates WorkKeys Testing Drug Screening Interview AWARD SCHOLARSHIP

Applicants with a Clue A skills-based approach to... – Worker Pre-Training – Worker Pre-Certification – Employer Alignment – Education Alignment Reduce onboarding time Reduce turnover Reduce 1 st Year Injuries Improve ‘Promotability’

Building Business Partnerships Endorse CPT Program Actively Participate Hire Graduates Sustainability Fund Cooperative Advertising Applicant Screening Creating Shared Value

Balanced, Dynamic Portfolio

Balanced Portfolio Federal – Workforce Investment Act – DOL HGEI Grant State – Workforce 2.0 Local – EDIT – Tipping Fees – Wind Turbine Fund Foundations – Utilities – Corporate – Community Foundations Private – Sustainability Fund – Advertising Fund

Dynamic Portfolio Business Rules Support Decision Making Asterisk-Free Funding Various “Holders” of Funds One Broker of Funds

Delivering Value Sustainability Fund – Value Proposition Work Keys Drug Screen Exemplary Attendance MSSC/CPT Certified – 90 Days on the Job Invoice for ½ of scholarship cost

Low No Overhead Existing Resources Manage Projects – REACH Center Recruits and screens candidates – WorkONe Matches candidates with funds Case Management – Ivy Tech Corporate College Delivers CPT coursework Delivers CPT assessments – Economic Development Consortium Maintains employer engagement Organizes monthly interview fairs

Return on Investment

Translating to Other Communities Orthopedic and Advanced Manufacturing Training Center

Key Factors For Sustainability Shared Value Alignment through Branding Employer Engagement Balanced, Dynamic Portfolio Low No Overhead Return on Investment

A Sustainable Funding Model for Community Skills Gap Initiatives