1. Facilitating Solutions for Business and Industry……. WORKFORCE DEVELOPMENT IN “FOUR STEPS” Tim Johnson President The TJC Group

2. Historic Demand for Industrial Craft Workers

3. $60 billion of announced plant expansions and new plants in Louisiana* –Driven by low price of natural gas and greatly improved business climate 86,300 new crafts workers needed through 2016 in Louisiana –35,000 new jobs –51,300 jobs available because of attrition 3 Source:LSU Division of Economic Development, Louisiana Workforce Commission and Louisiana Economic Development Facilitating Solutions for Business and Industry…..

4. Facilitating Solutions for Business and Industry……. A Global Issue “Nearly half of what will be the built environment in 2030 doesn’t exist yet.” Brookings Institution Metropolitan Policy Program Report

5. A SHRINKING POOL? will shrink in comparison to adult population will grow faster than total population >65 <18 Youth Demographic

6. Facilitating Solutions for Business and Industry……. Workforce Development in the United States THE WORKFORCE GAP Why Career and Technical Education is Critical SOURCE: Carol D’Amico,” Workforce 2020: Work & Workers in the 21st Century”

7. Average Mechanical Wages & Per Diems

8. Facilitating Solutions for Business and Industry……. A CRISIS SITUATION Are we running for running for our lives??

9. Facilitating Solutions for Business and Industry……. Workforce Development In Four Steps Four Elements of WFD Forecasting (Demand and Supply) Career Awareness and Recruiting Training (Also skill upgrade) Employing (In developed career paths)

10. Facilitating Solutions for Business and Industry……. STEP 1 - FORECASTING FORECASTING Accurate analysis of demand Accurate analysis of supply Granular and specific Construction Labor Market Analyzer Over $3B of project data in the system www.myclma.com

11. CLMA® Forecasted Need by 2017 A nationwide shortage of as many as 2,000,000 workers is looming and project planning will become increasingly more difficult. www.myCLMA.com

12. An estimated 17% of the construction workforce will retire in the next 5 years The REALITY (Aging Workforce – Construction)

13. Facilitating Solutions for Business and Industry……. STEP 2 - CAREER AWARENESS - RECRUITING CAREER AWARENESS AND RECRUTING The mission of the Build Your Future campaign is to narrow the skills gap by guiding America’s youth and displaced workers into opportunities for advanced education and training, that lead to long- term rewarding careers in construction. NCCER’s National, “grass-roots” initiative Direct connection to instructors and students Proven success Changing public policy & public perception www.BYF.org CURT Workforce Development Award Winner BYF has already reached 35 million students!

14. Facilitating Solutions for Business and Industry……. STEP 3 - TRAINING TRAINING Must move recruits in to world class high standards training programs Must provide industry based certifications Raises the level of esteem of the construction craft professional NCCER – Over 700 accredited sponsors providing training and assessments in almost 6,000 locations in the United States Realized return on investment

15. WFD - Return on Investment SOURCE: Construction Industry Institute (CII). RT231-1 “Construction Industry Craft Training in the United States & Canada” (Aug 2007) The Construction Industry Institute (CII) study assumes an investment of 1.0% of the total project budget for wages / labor Facilitating Solutions for Business and Industry…….

16. NCCER Provides the Resources & Solutions Resources Include Accreditation Instructor Certification Standardized Industry-Driven Curricula Nationally Recognized Skill Assessments Industry-Recognized Credentialing & Certification Construction Career/Recruiting Resources Construction Safety & Front-line Management Education 16

17. NCCER - Types of Craft Training  Industry Association/Community Programs Apprenticeship Traditional Craft Training (full & task)  Construction and Maintenance Regional/Corporate Training Center Site/Project-Based  Government Education Department of Education o School-Based CTE  Secondary CTE - Public & Charter High School - Adult Education  Public Post-secondary - Community & Technical College  Career/Proprietary (For-profit) Department of Corrections Department of Labor Grant Programs  Organized Labor  Owner – Maintenance

18. NCCER Standardized Construction and Maintenance Curricula 35 Construction and Maintenance Craft Areas 8 Power Areas 6 Sustainable Titles 8 Pipeline and Pipeline Maintenance Craft Areas 6 Safety and Management Titles Maritime and Manufacturing Available in Other Languages

19. Assessment vs. Training Knowledge Verified Journey-level Assessment NCCER Core Curriculum EXPERIENCED CRAFTSPERSON Certificate of Recognition NCCER Craft Curricula Performance Verified Optional CRAFT TRAININGCRAFT ASSESSMENT Certified - Plus ENTRY-LEVEL CRAFTSPERSON Assessed Training Prescribed

20. Certified Plus Performance Verified January 1, 2015 All Craft persons who have not achieved Certified Plus, will revert to Knowledge Verified January 1, 2015 All Craft persons who have not achieved Certified Plus, will revert to Knowledge Verified Knowledge Verified Certified Plus Performance Verified January 1, 2013 All Experienced Craft persons taking the test for the first time January 1, 2013 All Experienced Craft persons taking the test for the first time Knowledge Verified National Craft Assessment and Certification Process – Next Step

21. 1.Start at the Top –Assign Industry Senior Management As Program Sponsors –Prepare Cost/Benefit Metrics To Identify ROI 2.Conduct a Needs Analysis –Have Industry (Plant/Project Manager, Supervisors, etc.) Articulate Desired Outcomes Identify Core Company Skills, As Well As Skill Deficiencies –Provoke Interest & “Buy-In” – Involve All Levels Of Employees –Report Results Back To “Stakeholders” 3.Market Workforce Programs –Conduct A Briefing With Supervision And have the Project Manager Host The Briefing Discuss Benefits Of Training To Trainees And Supervisors –Reinforce New Skills And Behavior Ten Steps for Best Practice

22. 4. Bring the Workplace Into Training –Encourage Discussion Of Problems And Situations That Workers Encounter On The Job –Correlate Training To Job Activities 5. Utilize Peers Instructors –Identify Supportive (Passionate) Plant/Project Supervisors and Retirees & Target Them For Instructor Positions Provide Instructor Certification Training Program (ICTP) –Also Identify & Reward “Superior” Journey-/Technician-level Compensate Instructors! 6. Assign A Training Director –A Champion – Ambassador to the cause Ten Steps for Best Practice

23. 7. Begin Small…Ensure Success –Every Plant, Facility or Project Should Have A Workforce Development Plan –Recruiting, Staffing And Training Should Be An Integral Part Of The Plan Career & Technical Program Graduates Minority and Female Veterans –Correlate Pay To Performance And Skill Competence –Include Management & Safety Training –Pre-Employment Training Enhances Positive Community Relations Ten Steps for Best Practice

24. 8. Take Training Back To The Workplace –Assign Employees’ Job Descriptions That Correlate To Their Training –Reward Those Who Gain New Skills 9. Measure Results For R.O.I –With Industry – Develop Action Plans (Metrics) To Measure Training Effectiveness Identify Cost Savings/Cost Avoidance –Improved P/F –Reduced Re-Work –Improved Safety Performance –Reduced Turnover And Absenteeism –Improved Morale/Teamwork 10. Market Successes Ten Steps for Best Practice

25. Facilitating Solutions for Business and Industry……. STEP 4 - EMPLOYING EMPLOYING The “Good Luck” approach is no longer acceptable Systematic process to move young people from training to careers Not a “job on a project” but a “career in an industry” Mentoring Onboarding Work-Life satisfaction issues

26. Facilitating Solutions for Business and Industry……. THANK YOU! Tim Johnson President The TJC Group www.thetjcgroup.com tim.johnson@thetjcgroup.com (225) 757-5527