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Familiar faces to many of you

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1 Familiar faces to many of you
We spent the summer talking to people around the state Now is the time to make a difference We’ve heard from many employers about the need for a skilled workforce—the success of their businesses depend on the workforce that we develop Infrastructure plays a role in our state’s economic success as well

2 Missourians deserve to have the best performing economy in the Midwest.

3 14 out of 14 for GDP growth

4 9 out of 14 for job growth

5 8 out of 14 for wage growth

6 Having a quality, readily available workforce is the most important factor in economic development today.

7 The percentage of Missourians in the workforce is shrinking.
Source: U.S. Bureau of Labor Statistics

8 new Missourians in 2016 7,000

9 was the average age of those who moved from another state, well below Missouri’s median which ranges from 38-39 26

10 Net Importer Net Exporter
Missourians who leave the state are generally better educated than those who move here. less than a high school diploma high school diploma or equivalent some college, but no degree associate degrees Net Importer bachelor’s degrees masters degrees professional degrees doctoral degrees Net Exporter

11 Our adult population is less educated than the national average.
Guidehouse: Report and Recommendations: Education, August 2018, citing the U.S. Census Bureau: American Community Survey. Page 3.

12 Missouri’s talent pipeline is leaky.
Although Missouri is above the national average in high school graduation rates, we are below average on students making the transition into college and persisting through college.

13 Other states are more effective with federal workforce funds.
Average 6-month Wages (Average of PY 14 & PY 15) Internal Use Only

14 out of 14 for labor productivity 12 1 6 2 3 4 5 8 9 10 11 12 13 14 7

15 And the gap between Missouri and the U.S. is widening.
Source: U.S. Bureau of Economic Analysis

16 We have underperforming economic and workforce development policies, embedded within an underperforming economy.

17 We spent the summer and fall talking with nearly 4,000 Missourians…
3,794 citizens reached

18 …colleagues from around state government.

19 So, here’s what we recommend.

20 Conceptual Framework Become the best place to live and work Connect all Missourians with work Increase the number of people in Missouri’s workforce Develop a labor market that works Work in a 21st century way Build infrastructure to drive economic development Increase the productivity of Missouri’s workforce Work together/compete together Create a new approach to economic development Compete to win

21 Using the resources we have, we want to build something entirely new.

22 Transform the Department of Economic Development Design a state agency that has the structure and strategy to compete with the leading states in the nation. DED will be regionally targeted, laser focused, customer centric, and data driven. Governor Parson’s Executive Order reorganizes DED and creates an economic development strategy for the next generation, built around workforce development and infrastructure.

23 Best in Midwest – The new DED will be:
Laser Focused Data Driven Regionally Targeted Customer Centric Laser Focus Currently, our department houses more functions than any other economic development agency in the Midwest. As a result, we’re also the largest when it comes to FTE count, and in the top five in terms of budget. The problem is that we lack focus. Our last strategic planning effort was almost 10 years ago. We’ve had seven different directors in 10 years. Many of our staff don’t understand how they connect to the overall mission and Department. It’s time we change that. You’ll hear a little more about this at the All Staff on December 12, and still more in January once we have the final green light from the Governor’s Office to share the details. Data Driven We can’t wait another 10 years to shift our strategy. The economy is evolving at a faster pace, which means we need to be paying attention to trends and making decisions that are based on the data that we’re collecting from our customers and at the macro level. We have an amazing resource in MERIC, but it’s underutilized. Going forward, we will make strategic planning, economic analysis, and performance management core to what we do every day. Customer Centric We have a passionate, hard working team here at DED. You are customer centric, but our processes, our organizational structures, even our locations often get in your way and prevent you from delivering the quality of service that you want and know that we should deliver to our customers. Our goal is to improve, so we can make your job easier and improve our customer’s experience. We have to orient all of our programs, all of our processes, all of our structure around our customers to give you the tools to deliver the best possible customer experience and to win more projects for Missouri. Regionally Targeted And that means having a greater presence locally. Currently, we have 5 project managers covering the entire state of Missouri. The last U.S. census reported 491,606 firms in Missouri. We have 5 people who manage projects for all of those businesses.

24 Workforce Priorities Familiar faces to many of you
Now is the time to make a difference We’ve heard from many employers about the need for a skilled workforce—the success of their businesses depend on the workforce that we develop

25 Department of Postsecondary Education & Opportunity Design a state agency focused on helping Missourians prepare for good jobs and productive lives through postsecondary education, short-term training, and one- on-one support. Governor Parson’s Executive Order would bring the Department of Higher Education together with the Division of Workforce Development and the Missouri Economic Research & Information Center.

26 MoExcels Provide infrastructure funding for public colleges and universities to create or expand high-demand workforce programs and educational attainment at scale. This will require a series of appropriation requests over multiple years. Governor Parson recommended $16.3 million for 18 projects around the state.

27 Fast Track Create a financial aid program that helps adults get training and participate meaningfully in the workforce. Governor Parson recommended $22.2 million for the new program. Legislation is moving through the General Assembly – HB 225 (Swan) and SB 16 (Romine).

28 Missouri OneStart Make our business expansion, retention, and attraction job training incentives more effective through statutory changes and a budget request that will improve the flexibility of our existing programs and provide training resources for colleges. Legislation is moving through the General Assembly – HB 496 (Grier) and SB 184 (Wallingford).

29 Office of Apprenticeships
Office of Apprenticeships Increase the number of Missourians participating in apprenticeship programs statewide and provide interagency coordination on all apprenticeship programs. This will provide better stewardship of taxpayer dollars by reducing duplication and redundancy of programming.

30 Familiar faces to many of you
We spent the summer talking to people around the state Now is the time to make a difference We’ve heard from many employers about the need for a skilled workforce—the success of their businesses depend on the workforce that we develop Infrastructure plays a role in our state’s economic success as well


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