1. NATIONAL MARITIME EDUCATION COUNCIL “Unless commitment is made, there are only promises and hopes…but no plans.” Peter Drucker

2. Problem Definition Shortage of skilled craftsmen to fill positions in maritime industries. Issues: Attrition from ranks of the workforce Retirements, Other Opportunities Increased needs for skilled workers across spectrum of industries What is needed: Training infrastructure to support marine industry Standardized definitions of craft functions Curriculum and standards that support those craft Certification mechanism and standards

3. Why Train? Time Efficiency A new-hire training program: Brings new employees up the learning curve Aligns quality and production expectations Enhances productivity, and ultimately, Increases profitability to the company Learning Curve Cost Avoidance Effect of Training

4. MARINE CURRICULUM – INITIAL RESULTS Entry-Level—GSSC Shipfitting Curriculum 50 graduates to date; 100% placed Ingalls extended offers to 50% prior to graduation 50% savings on initial training costs 8% attrition rate vs. 40% attrition rate during probationary period in internal training) Certification Process (Equivalent) (member company) Probationary releases down significantly Disciplinary actions down 80% Workweek up average of 6%; absenteeism reduced

5. About NMEC Mission To lead the Maritime industry in the development, promotion and implementation of standardized craft training processes. Who We Are A collaborative, multi-regional, industry-centered national organization made up of industry leaders/decision makers

6. We’re Committed!

7. NMEC Objectives 1.Establish an industry-wide, comprehensive, standardized, training and credentialing system for the Maritime workforce 2.Develop a pipeline of skilled craft professionals trained and credentialed through an industry-driven, uniform process 3.Improve outcomes for the maritime industry by developing better skilled, safer, more productive workforce

8. Our Vision A comprehensive training, assessment and certification program Existing craft personnel can “challenge” the course and establish their proficiency level Credential is issued upon completion of coursework and/or passage of assessments Personnel completing required coursework/assessments are credentialed Issued a craft card Placed in a national database We will establish a method of readily identifying and verifying knowledge and training in the marine crafts.

9. Our Partner NCCER Not-for-profit education foundation Established in 1995 by the construction industry to 1.develop industry-driven, standardized craft training programs with portable credentials 2.address critical workforce shortages 3.reduce training costs/improve outcomes Mission: To build a safe, productive, and sustainable workforce of craft professionals

10. NCCER – Utilized in All 50 States 850+ organizations (accredited and pending) 6,000+ schools/training center locations Louisiana has NCCER in place Additional international programs

11. Training’s Impact on ROI SOURCE: CII Research Summary 231-1. "Construction Industry Training in the United States & Canada“ (Aug-2007) CII Research Summary RT 231-1 Average Improvement Capital Project Maintenance Project Productivity Improvement11%10% Turnover Cost Decrease14% Absenteeism Decrease15% Injury Decrease26%27% Rework Decrease23%26% Research shows that investing $1 in craft training yields up to $3 in benefits.

12. NCCER Long-Term Safety Impact 1989-2006 – Construction Industry

13. Why NCCER? Established National Network Accredited training providers Certified instructors Established curricula development system Accredited assessment centers Registry of credentialed craftsmen and women Mission: To build a safe, productive, and sustainable workforce of craft professionals

14. NMEC – First-Year Snapshot Increased membership by 64% – American Bureau of Shipping – American Welding Society Phase 1 of Initiative – Intro to Maritime Module in stock April 2013 – Pipefitting – Levels 1 & 2 in stock August 2013 – Shipfitting – Levels 1 & 2 in stock December 2013

15. Benefits of Membership Forum to address industry-related workforce training issues Exclusive networking opportunities with other leaders in the education and employment of workforce On the team for the development of curriculum standards and methodology Effecting a national workforce system for the maritime industry Self-sustaining - Program viability/sustainability is not dependent upon governmental support

16. Why Work Together? “If our industry can agree on a standard set of criteria, we have the ability to sustain the right kind of training programs that feed our entry-level positions. Working together … will help us all optimize our recruiting and training investments and, in turn, help make us more competitive in an evermore challenging marketplace. No one organization can do this. We need to do this together.” Irwin F. Edenzon, President Ingalls Shipbuilding

17. Investment Levels Shipbuilding, Ship Repair, Offshore Marine, and Skilled Trade Providers Tier 1 (employing over 2,000*)$60K Tier 2 (employing 1,000-2,000*)$40K Tier 3 (employing 500-999*)$20K Tier 4 (employing 250-500*)$10K Tier 5 (employing under 250*)$5K Affiliates (Regional/National Trade Associations, Equipment Manufacturers, Suppliers, etc.) Platinum$20K Gold$10K Silver$5K *Employee count based on annual average number of full-time employees. We’ve waited long enough…invest today! www.maritimeeducationcouncil.org

18. Questions? John Lotshaw, NMEC Chair Ingalls Shipbuilding john.lotshaw@hii-ingalls.com