CHICAGO, ILLINOIS NOVEMBER 12-14, 2008 National Governors Association SECTOR STRATEGIES LEARNING NETWORK MEETING

SECTOR STRATEGIES IN A BAD ECONOMY: TWO STATE STORIES Pennsylvania – enjoyed a relatively steady growth in a diverse sets of sectorsPennsylvania – enjoyed a relatively steady growth in a diverse sets of sectors Sector Strategies in Workforce Development since 2004Sector Strategies in Workforce Development since 2004 Administrated by the State Workforce Investment BoardAdministrated by the State Workforce Investment Board

We have a keen sense of the obvious Source: Wall Street Journal November 7, 2008

Pennsylvania’s Experience Difference in Trends: Sector Strategy & Other Economic Development Strategy Influence or Wishful Thinking?

FALSE DICHOTOMY?? THE BIG PICTURE ECONOMIC ENVIRONMENT Current Location?

Changing Focus - Workforce Development System 95%Incumbent Workers5%Transitional Traditional Emphasis of System– Assist Unemployed and Transitional Workers New Emphasis of System- Building the Skill Levels of the Existing Workforce– the Incumbent Workers– in order to support Community Economic Development and to compete in the Global Economy

“FOLLOW THE MONEY” What to do in a Recession?

PA’s Sector Strategy Industry Partnerships Currently 76 Industry Partnership funded – down from 90 Currently 76 Industry Partnership funded – down from 90 Over 65,000 incumbent workers trained since inception Over 65,000 incumbent workers trained since inception Industry-Led Model Industry-Led Model

Pennsylvania’s Workforce Development System 22 Workforce Investment Boards 22 Workforce Investment Boards 67 Pennsylvania CareerLinks (One-Stops) 67 Pennsylvania CareerLinks (One-Stops) 76 Industry Partnerships 76 Industry Partnerships

What are Industry Partnerships? Organize clusters of businesses that share similar workforce challenges, markets and suppliers Organize clusters of businesses that share similar workforce challenges, markets and suppliers Industry-led process is a key factor Industry-led process is a key factor Create economies of scale for job training and education Create economies of scale for job training and education Identify key occupations Identify key occupations Promote innovation Promote innovation Working together, business can identify worker skill gaps, address training needs and develop regional strategies to build stronger economies Working together, business can identify worker skill gaps, address training needs and develop regional strategies to build stronger economies

Pennsylvania’s Targeted Industry Clusters Advanced Materials and Diversified Manufacturing Agriculture and Food Production Agriculture and Food Production Building and Construction Building and Construction Business and Financial Services Business and Financial Services Education Education Information and Communication Services Information and Communication Services Life Sciences Life Sciences Lumber Wood and Paper, and Lumber Wood and Paper, and Logistics and Transportation Logistics and Transportation Energy Energy

Impact of Recession on Business Curtail expansion plans Retrench in cost-cutting moves Retrench in cost-cutting moves Consolidate operations Consolidate operations Close plants and facilities Close plants and facilities Become more risk averse Become more risk averse

Impact of Recession on Workers Move to a different area Step down the career ladder Step down the career ladder Change careers entirely Change careers entirely Go back to school Go back to school Become “permanently” unemployed Become “permanently” unemployed

Recession Issues and Questions Issues In a recession jobs decline in some sectors & job growth stops in mostIn a recession jobs decline in some sectors & job growth stops in most In a recession not as great a emphasis on “getting the product out the door.”In a recession not as great a emphasis on “getting the product out the door.”Questions Focus resources on impacted sectors, growth sectors or all sectors?Focus resources on impacted sectors, growth sectors or all sectors? Opportunity for upskilling given down time of employees?Opportunity for upskilling given down time of employees?

Recession Issues and Questions Issues In a recession most Important – Intelligence on Industry TrendsIn a recession most Important – Intelligence on Industry Trends In a recession not hiring so retention of current employees increased importanceIn a recession not hiring so retention of current employees increased importanceQuestions Intelligence gathered at Sector Meetings or a time to hold back information?Intelligence gathered at Sector Meetings or a time to hold back information? Human Resources strategies to retain workers discussed at Sector Meetings.Human Resources strategies to retain workers discussed at Sector Meetings.

Discussion & Questions For more information on the PA Workforce Development System Call me at: (717) (direct line) Visit Us Online at: