“Partnering with Workforce Boards to Save Jobs and Grow Companies” Mark Troppe, NIST MEP Michelle Paczynski, SC Department of Employment and Workforce Chuck Spangler, SC MEP Cheryl Slobodian, California Manufacturing Technology Consulting (CMTC)

NIST MEP EMT Meets the Fitness Trainer Preventive vs. Emergency Care

The Opportunity A collaboration between Workforce Investment Board Rapid Response/Layoff Aversion teams and MEP Centers and partners – To Avert layoffs by reaching out to identify manufacturers at risk using an early warning check list & assessment and provide layoff aversion business assistance to retain jobs before they’re forced to layoff – Give early notice – referrals of potential nonWARN and WARN companies for assistance Retain manufacturers and manufacturing jobs and create new jobs!

Companies “at risk”: Warning Signs Financial problems Quality problems Supply Chain issues (both directions) Market issues Ownership problems Disinvestment Declining sales and/or declining employment Mismanagement Duplicate capacity Management instability Business “climate” complaints Changes in land use Inadequate research and development Changes in management behavior Removal of equipment Cash crunch/irrational cutbacks Unusual bargaining positions Unidentified visitors and/or cosmetic improvements Decreased utility use

States With a Track Record California South Carolina Pennsylvania Missouri New York Oklahoma Michigan Indiana Rhode Island Iowa and Connecticut (demo grants)

“MEP and Rapid Response: The South Carolina Experience” Michelle Paczynski, SC Department of Employment and Workforce Chuck Spangler, SC MEP

Required state function under the Workforce Investment Act (WIA); funded by reserving up to 25% of the state’s WIA Dislocated Worker allotment Provides direct reemployment services and facilitates additional services and resources; carried out by states and local workforce development organizations in partnership with One-Stop Career Centers. Arranges for the provision of support services for dislocated workers and for businesses, brokering critical resources to both customer bases, often simultaneously. Rapid Response

Sec : Rapid Response activities must include: Immediate and on-site contact with the employer, representatives of the affected workers and the local community, which may include an assessment of the potential for averting the layoff in consultation with state and local economic development agencies, including private sector economic development entities Rapid Response is a primary gateway to the workforce system for both dislocated workers and businesses. Legislative Authorization

Per TEGL 30-09, US Department of Labor considers a layoff averted when : 1.A worker’s job is saved with an existing employer that is at risk of downsizing or closing; or 2.A worker at risk of dislocation transitions to a different job with the same employer or a new job with a different employer and experiences no or a minimal spell of unemployment. Layoff Aversion Definition

Saving the Company or Jobs BROADER IDEA: Lessening the Impact of Layoffs Lessen number of employees that company needs to layoff Linking with Economic Development Incumbent worker programs- based on affected company Address risk factors Furloughs ESOPs-Employee buyouts Finding a buyer for the closing business Fewer people filing for UI payments Linking with other companies that are hiring (Company Match) OJT programs-linking with growing companies Early warning networks The Two Sides of Layoff Aversion

Engage at-risk (and growth) employers with information on services BEFORE there are layoffs Promote collaborative partnerships with other organizations to proactively identify at-risk companies and deliver services to address the risk factors – TAA for Firms – Manufacturing Extension Partnership (MEP) – Small Business Development Centers – Chambers of Commerce – Community-Based Organizations Ongoing effort, not a one-time event Focus on small to medium sized employers first Proactive Methods for Delivering Services

Building and sustaining integrated networks Workforce Intelligence Knowledge of the resources available and how to access them The Tools

State-Based National Emergency Grants (NEG) – Rapid Response funds used to assist local areas in responding to events that do not otherwise qualify for a NEG “Gap-Filler” Funds – Covers the gap between layoff and NEG NEG funds used to replenish set-aside funds Trade “wrap around” services Rapid Response “Set-Aside” Funds

Strong partnerships between state and local WIA Boards are not only effective, but cost-efficient because connections are made between those with needs and those with resources.

1.SC Manufacturer committed to remaining in SC. 2.Currently experiencing declining sales 3.Completion of the Layoff Aversion Document and the SCMEP Competitiveness Review(CR) 4.Management commitment to change and willingness to allocate resources 5.Share two years of financial data SCMEP Layoff Aversion Requirements

1.Initial Site visit by SCMEP 2.Layoff Aversion Document completed 3.Competitiveness Review (CR) completed 4.Transformation Plan developed and reviewed by SC Employment and Workforce 5. Start on Transformation Plan SCMEP Layoff Aversion Process

York/Chester/Lancaster Companies reporting that received IWT funding & worked with SCMEP 1.Ajax Rolled Ring 6. Transaxle Manufacturing 2.Atotech 7. Van Can 3.EhrenHaus 8. ZF 4.Lex Precision 5.Pro Cal 2010 Reported Impact

Total Economic Impact $ 30,356,319 Jobs Added 10 Jobs Retained 52 Impacts

WHY is SCMEP doing this work with the state’s workforce system? How does it fit within the MEP mission? How do you integrate this offering within your mix of other MEP services? How does the process work with the state funding? Do you still expect the company to contribute financially to the work? The state WF funds offset how much of the project costs? What has this collaboration done for the relationship between SC MEP and SC Employment and Workforce? Does SC Employment and Workforce use SC MEP assessments of companies before investing public funding into companies for WF services? DATEINSERT FOOTER21 SC MEP Perspective

“Partnering with Workforce Boards in Southern California to Save Jobs and Grow Companies” Cheryl Slobodian, California Manufacturing Technology Consulting (CMTC)

CMTC’s region - SoCal has 24 of the 49 local WIBs 13 Current CMTC - WIB partnerships, 3+ Still in development:  Kern, Inyo, Mono County WIB*  Verdugo WIB (Burbank/Glendale)*  Los Angeles County WIB (Goodwill/SASSFA/JVS)*  Los Angeles City WIB*  San Bernardino County WIB*  San Bernardino City WIB*  Orange County WIB*  City of Anaheim WIB*  City of Santa Ana WIB*  Imperial County WIB – CMTC improving WIB Operations  Ventura County EDC – WIB  Tulare County WIB  Foothill WIB  San Diego County WIB  Fresno County EDC - WIB  Riverside County WIB May 17, 2011Partnering With Workforce Boards23 California - One State and 49 local Workforce Investment Boards (WIBs) One – by – One *Funded Manufacturing Lay-off Aversion Business Assistance Programs

CMTC WIB Partnership Development Strategies 24 Primary objective - Advocacy for manufacturers (started May ‘09) – CMTC Sr. Management commitment – not a field effort – Early discussions with stakeholders (MEP, CWA, Current WIB partner) – Utilize influencers to set meetings with WIB Directors – Develop long-term relationship based on each WIBs regional plan, not just ARRA 1 time opportunities – Gain CA State WIB visibility and support as influencer CMTC & MANEX named as industry intermediaries for manufacturing in state workforce lay-off aversion guide and memo on lay-off aversion business assistance services – Implement standard approach, approval, assessment, delivery & measurement process – Showcase success with WIB team, boards, legislative representatives, at regional rapid response coordinator meetings, state and federal meetings May 17, 2011Partnering With Workforce Boards

25 CMTC – WIB Manufacturing Sector for Lay-off Aversion & Business Assistance Services Standard 7-step Standard Approach for Manufacturing Lay-off Aversion Program 1.Well defined program requirements and regional partnerships 2.Joint awareness and outreach to manufacturing sector 3.Discovery meetings utilizing Business Scan™ and Early Warning Checklist review for identification of at risk businesses – Vulnerable but Viable 4.Custom business assessment to identify needed assistance 5.Gain customer commitment to job retention & agree to scope of services/implementation 6.Customized on-site lay-off aversion business assistance services 7.Independent 3 rd party survey for satisfaction, impact & jobs May 17, 2011 Partnering With Workforce Boards

26 WIB – MEP Partnerships make an impact Retaining and Creating California Jobs! Partnering With Workforce Boards May 17, 2011

27 WIB – MEP Partnerships Phase 1 Brings Impact Beyond Retaining and Creating California Jobs! Partnering With Workforce Boards May 17, 2011

28 The voice of the manufacturer - Dicronite shares their experience Partnering With Workforce Boards May 17, 2011 Dicronite Vice President Steve Dively discusses the company's relationship with California Manufacturing Technology Consulting and CMTC's role in helping the company retain and create new California manufacturing jobs.