“More & Better: Preventing a Workforce Meltdown” New North Summit 2007 Edward E. Gordon Keynote Address: “More & Better: Preventing a Workforce Meltdown” Edward E. Gordon www.imperialcorp.com

The Education-to-Employment System is broken Edward E. Gordon www.imperialcorp.com

“More & Better: Preventing a Workforce Meltdown” Agenda Part I: 2010 Issues Part II. 2010 Solutions & Opportunities Edward E. Gordon www.imperialcorp.com

Agenda Part I: 2010 Issues Demographics Technology “The Unflat World” ― Education Critical Mass Help Wanted: Worldwide 5. Current Solutions “Shopping the World” Edward E. Gordon www.imperialcorp.com

U.S. Workforce between 2010 & 2025 Baby Boomers − 79 million Americans born 1946-64 retire Generation X − 40 million Americans born 1965-77 − Less job ready than baby boomers Generation Y − 70 million Americans born 1977-95 − Less job ready than prior generations Edward E. Gordon www.imperialcorp.com

Change in U.S. Population 2000-2020 Source: U.S. Census Bureau Edward E. Gordon www.imperialcorp.com

Wisconsin Unemployment October 2007 5.2% Edward E. Gordon www.imperialcorp.com

United States Manufacturing 2005 #1 in Value of Manufactured Products (Double China’s) 61% of U.S. Exports Source: Economist Intelligence Unit Edward E. Gordon www.imperialcorp.com

3. Education Critical Mass The Unflat World Edward E. Gordon www.imperialcorp.com

PISA Math Scores of 15-year-olds Selected Countries Source: OECD, 2006 (PISA 2003 data from 29 nations) Edward E. Gordon www.imperialcorp.com

Wisconsin High School Drop-Outs Age 18-64 317,194 (9.3%) Source: U.S. Census Bureau, 2005 Edward E. Gordon www.imperialcorp.com

Wisconsin High School Drop-Outs Age 18-24 78,899 (15.6%) Source: U.S. Census Bureau, 2005 Edward E. Gordon www.imperialcorp.com

Wisconsin State High School Graduation Rates (U.S. average = 73%) All WI Students 77.3% Asian 74.8% Hispanic 53.6% Black 44.8% White 82.6% Source: EPE Research Center, 2007 Edward E. Gordon www.imperialcorp.com

II. Adults Lack 90+ Million American Workers Reading Writing Math Skills to do their jobs properly Edward E. Gordon www.imperialcorp.com

National Adult Literacy Assessments 1993/2003 Prose Results Compared Adult Pop. 2003 Categories ’93%/’03% Total 222 Million I. Below Basic 14/14 31M II. Basic 28/29 64M (95M) III. Intermediate 43/44 98M (Moderately Challenging) IV. Proficient 15/13 29M Edward E. Gordon www.imperialcorp.com

New North Counties Percent of Adults at Level 1 Literacy Brown 11% Marquette 19% Calumet 9% Menominee 10% Door 13% Oconto 16% Florence N/A Outagamie 11% Fond du Lac 11% Shawano 15% Green Lake 14% Sheboygan 13% Kewaunee 12% Waupaca 14% Manitowoc 13% Waushara 18% Marinette 15% Winnebago 10% Edward E. Gordon www.imperialcorp.com

National Adult Literacy Assessments 1993/2003 College Grads Compared Prose Proficiency 4-year Graduates & Graduate Degrees 1993 2003 91% 72% Source: U.S. Department of Education Edward E. Gordon www.imperialcorp.com

Wisconsin College Graduates (Adults Age 25+) 25% Source: U.S. Census Bureau, 2006 Edward E. Gordon www.imperialcorp.com

Ratio of Science & Engineering Degrees to 24-Year-Old Population Council on Competitiveness, 2000 Edward E. Gordon www.imperialcorp.com

U.S. Aging by Occupations Aging Workforce Engineers & Scientists 52% are over age 50 Government Workers 44% are 45 years + Skilled Machinists Average age is 50 Construction Workers Average age is 47 Nurses 47% retiring over next 7 years Manufacturing Managers 50% retiring over next 7 years Federal Workforce 40% retiring by 2010 Edward E. Gordon www.imperialcorp.com

U.S. Jobs Shifts 2000-2020 (In Millions) Job Categories 2000 2010 2020 Professionals/Executives 44 52 60 Sales, Technical 42 50 60 Tech Support/ Skilled Craft 22 29 43 Low End Service 20 25 27 Other Low Skill Jobs 24 21 17 Source: U.S. Bureau of Labor Statistics, 2005 Edward E. Gordon www.imperialcorp.com

U.S. Labor Market Jobs 2004-2014 Category New Replace-ment % of Total All Jobs 18.9M 35.7M 65% 54.6M Computer Tech. 967K 422K 30% 1,389M Engineers 195K 312K 62% 507K Skilled Trades 699K 1.1M 61% 1.8M Teachers 1.7M 51% 3.5M Source: Daniel E. Hecker, U.S. Dept. of Labor, 2005 Edward E. Gordon www.imperialcorp.com

U.S. Labor Market Jobs 2004-2014 Category New Replace-ment % of Total Nurses 703K 497K 41% 1.2M MDs 136K 76K 36% 212K Dentists 20K 26K 57% 46K Health Techs 592K 446K 45% 1.0M Source: Daniel E. Hecker, U.S. Dept. of Labor, 2005 Edward E. Gordon www.imperialcorp.com

U.S. Workforce Techno-Peasants (50%) The Walking Dead (25%) Smart People (25%) Edward E. Gordon www.imperialcorp.com

U.S. Techno-Peasant Numbers 25.4M – Age 18-64 have not completed high school (or equivalent) 8.1M – Have dropped out before 9th grade 28.8M – With a high school diploma or less are not earning living wages 8.3M – Age 18-64 with high school diplomas or less have difficulty speaking English or speak no English at all 1.5M – Included in this group are in state & federal prisons Edward E. Gordon www.imperialcorp.com

U.S. Talent Challenge 2010-2020 Jobs vs. Today’s Workforce 75% High Pay 25% of Workers Require Career Prepared for Prep. Career-Based Jobs 25% Low-Pay 75% of Workers ($10-12 hr.) Prepared for Low-Skill Jobs Nothing Source: Edward E. Gordon, 2010 Edward E. Gordon www.imperialcorp.com

10 Hardest-To-Fill Jobs in the U.S. Sales Representative Teacher Mechanic Technician Management/Executive Truck Driver Driver/Delivery Accountant Laborer Machine Operator Source: Manpower, 2007 Edward E. Gordon www.imperialcorp.com

U.S. Labor Market Talent Shortages 2010-2020 Category Shortfall All Jobs 3M-6.1M Nurses 340K-1M Doctors 55K-200K Health Technicians 200K-400K Information Technology 500K-1M Engineers 50K-250K Teachers 500K-1M Scientists 100K-200K Sources: Bureau of Labor Statistics & Professional Associations Edward E. Gordon www.imperialcorp.com

Increases in Wages 2007 United States +4.5% India/China +20% “In-Shoring” Edward E. Gordon www.imperialcorp.com

The 2010 Meltdown Globalization Technology Education and Demographics Career Skills Employment High Wage/High Skill or Low/Wage/Low Skill Economy Expands or Contracts Edward E. Gordon www.imperialcorp.com

Agenda 2010 Solutions Business Culture Change Career Culture Change Mobilizing Community Culture Change The 2010 Challenge & Beyond Edward E. Gordon www.imperialcorp.com

Business Culture Change Edward E. Gordon www.imperialcorp.com

Future Workforce Implications Slower labor force growth will increase pressure for participation of all labor force segments Technological advances may enable more labor force participation of persons with disabilities Various accommodations could increase the participation of older people, women with children, persons with disabilities, etc. Edward E. Gordon www.imperialcorp.com

Return-on-Investment (ROI) What Business Needs: A Measurable Definable Process that is Transferable Return-on-Investment (ROI) Edward E. Gordon www.imperialcorp.com

Edward E. Gordon www.imperialcorp.com

How Innovation Happens Information (Data, Facts) Knowledge (Insight) Wisdom (Ideas) Inputs Memorization Comprehension Applied Thinking Activities Learning Under- standing Innovation Outcomes Edward E. Gordon www.imperialcorp.com

The Sixth Discipline’s “ Winning Formula” High-Tech Highly Increased Increased Workplace + Educated = People + Profit Workers Productivity Fewer complex For the amount machines do produced & level more work of quality For the amount Lower fixed labor produced & level costs at comparable of quality world productivity cost levels Edward E. Gordon www.imperialcorp.com

Career Culture Change Edward E. Gordon www.imperialcorp.com

Human Ability Areas Linguistics Logical-Mathematical Spatial Musical Bodily Fine-Gross Motor Interpersonal Intrapersonal Source: Robert J. Sternberg, 1996 Edward E. Gordon www.imperialcorp.com

Q. What is a NGO? A. An intermediary agency that builds a network. Edward E. Gordon www.imperialcorp.com

4. The 2010 Challenge and Beyond Career Culture Business Culture Education Culture Education Prep. and Lifelong Learning Career and Job Alternatives Employment High Wage/High Skill or Low/Wage/Low Skill Edward E. Gordon www.imperialcorp.com

The “C” (Culture) Factor Culture X Literacy = Education X Marketplace = GDP C = A nation’s attitudes & motivation on the importance of personal learning & applying it throughout life. L = Personal reading practices & formal schooling. E = The “critical mass” of a nation’s knowledge. M = The socioeconomic forces driving business, government and non-profit activities. GDP = Gross Domestic Product: The wealth of a nation. Edward E. Gordon www.imperialcorp.com

Liberal Arts Education The 2010 Solution Business Labor Educators Parents & Students Government NGO Intermediary Agency Liberal Arts Education & Career Prep. Incumbent Worker Lifelong Learning Employment High Wage/High Skill Economy Expands Edward E. Gordon www.imperialcorp.com

For more information, go to www.imperialcorp.com or contact: Dr. Edward E. Gordon imperialcorp@juno.com 312-664-5196 Edward E. Gordon www.imperialcorp.com