Building Louisiana’s Craft Workforce

Louisiana Workforce Investment Council

June 7, 2013

Agenda

The purpose of the Craft Workforce Development Task Force Task Force history and introduction Historic demand for craft workers Standardized, industry based training statewide Costs and funding for training Recruiting students and instructors to training Actions already taken to deliver more craft workers Roles and responsibilities to ensure maximum response

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History of Craft Task Force

Post-Katrina – Craft Workforce Development Board formed

February 2012

– Industry user groups come together

Late 2012

– Craft Workforce Development Board resurrected

March 19, 2013

– Craft Task Force formed as Working Group of the Workforce Investment Council

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Introduction of Craft Task Force

Jorge Tarajano, Task Force Chairman, Business and Industry Alden Andre, Business and Industry Al Bargas, Associated Builders and Contractors - Pelican Chapter Ken Bradford, Department of Education Matt Campbell, Associated Builders and Contractors - Pelican Chapter Robert Clouatre, Associated Builders and Contractors - Pelican Chapter Kacy Edwards, Career Compass Curt Eysink, Louisiana Workforce Commission Art Favre, Business and Industry Charlie Freeburg, Business and Industry Whalen Gibbs, Department of Public Safety and Corrections David Helveston, Louisiana Workforce Commission Angela Latino-Geier, Associated Builders and Contractors – Bayou Chapter Dave “Lefty” Lefkowith, Department of Education Jeff Lynn, Department of Economic Development Dr. Joe May, Louisiana Community and Technical College System Claudeidra Minor, Louisiana Workforce Commission Dr. Jim Purcell, Board of Regents Louis Reine, AFL-CIO Eddie Rispone, Business and Industry Jimmy Sawtelle, Louisiana Community and Technical College System Julie Scott, Career Compass Jim Szydlo, Business and Industry Dr. Lisa Vosper, Board of Regents John White, Department of Education

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Historic demand for industrial craft workers

$60 billion of announced plant expansions and new plants

– Driven by low price of natural gas and greatly improved business climate

86,300 new crafts workers needed through 2016

– 35,000 new jobs – 51,300 jobs available

because of attrition

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70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

1991 1996 2001 2006 2011 2016C

onst

ruct

ion

Empl

oym

ent

Year

Source:LSU Division of Economic Development, Louisiana Workforce Commission and Louisiana Economic Development

Long-term growth by industry

0

5,000

10,000

15,000

20,000

25,000

30,000

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Projections through 2020

Short-term growth by industry

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

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Projections through 2014

Demand for workers is statewide, but greatest in South Louisiana

Total Additional Workers Required

2013 2014 2015 2016 Totals

New Orleans 5,595 6,407 2,812 3,000 17,814

Baton Rouge 6,165 7,448 4,352 2,100 20,065

Lake Charles 3,269 7,936 11,289 5,800 28,294

Other 7,272 4,909 4,147 3,800 20,128

Statewide 22,300 26,700 22,600 14,700

TOTAL REQUIRED THROUGH 2016 86,300

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Attrition is higher than in other industries

Causes – Construction worker wages and benefits are generally lower than

plant wages and benefits – Frequent layoffs because of cyclical/project-based work – Leaving industry for new occupations – Aging workforce

Effects

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If attrition were 5 percentage points lower, demand for workers would be reduced by 25,650 by 2016

If attrition were 5 percentage points higher, demand for new workers would total 111,950 through 2016. This is roughly equivalent to the existing craft workforce.

All crafts are in demand

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Boilermaker, 3.20% Boilermaker Welder,

2.10% Carpenter , 5.30%

Concrete Finisher, 1.46%

Electrician, 6.91% Laborer and Helpers

(Carpenters, Electricians, Painters, Pipefitters), 20.65%

Instrumentation Tech, 6.00%

Insulator, 1.70%

Ironworker (Reinforcing), 2.30%

Ironworker / Welder, 1.15%

Millwright, 1.30%

Crane Operator, 2.20%

Heavy Equipment, 3.48%

Painter, 3.50%

Pipefitter, 5.80%

Welder, 2.85%

Pipelayer, 0.60%

Sheet Metal Worker, 3.50%

Other, 26.00%

$10

$15

$20

$25

$30

$35 Pay ranges

High-wage, high-demand jobs

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LCTCS craft training

Curriculum standardized statewide

NCCER levels 1 and 2 for helpers; levels 3 and 4 for journeymen

AWS for welders

Same curriculum adopted by industry through ABC

Or equivalent union training curricula

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*Estimated without BRCC input

Craft Total Capacity

LCTCS student tuition

Number of weeks

Cohorts per year

Carpentry 802 $1,500 15 3.4

Concrete Finisher 52 $1,300* 11 4.6

Electrician 1,917 $1,100 11 4.5 Heavy Equipment Operators 381 $1,500 11 4.5

Instrumentation 347 $1,300 13 3.8

Insulation 132 $1,300* 11 4.7

Millwright 567 $1,300 10 5

Pipefitting 2,208 $1,200 11 4.7

Welding (AWS) 2,016 $2,990 35 1.4

Scaffolding 2,542 $1,100* 2 25

Total / Average 11,024 11 5.7

ABC, high school and union training capacity

ABC costs per student are on par with LCTCS costs

About 5,000 apprentices are enrolled at any time

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Training Facility Current Annual Capacity

ABC-Baton Rouge 1,622 ABC-Baton Rouge (night) 556 ABC-Lake Charles 1,260 ABC-Lake Charles (night) 468 ABC-New Orleans 374 Baton Rouge area high schools 1,379 Lake Charles area high schools 705 New Orleans area high schools 1,049

Total 7,143

Sources of labor

2013 2014 2015 2016 TOTAL

Helpers

Full training required 5,450 10,900 10,900 10,900 38,150

Less training required 3,050 4,600 3,900 2,500 14,050

Total helper recruits 8,500 15,500 14,200 13,400 52,200

Journeymen Remaining capacity to train journeymen 208 7,757 9,397 12,557 30,009

Full training required – recruited from under-employed, high school graduates, high school dropouts

Less training required - recruited from underemployed craft workers, long-term unemployed, veterans, similar occupations

Developing journeymen - recruited from existing helpers in the workforce

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Demand and training capacity

30% Helpers Louisiana has the

capacity to train enough people to meet demand for helpers each year.

*Helpers To Be Trained is expanded by one-third to account for dropouts. Any improvement in this ratio will enable more training for journeymen.

Capacity includes LCTCS, high schools and ABC. Union training would be additional.

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0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2013 2014 2015 2016

Helper Demand

Helpers To BeTrained*JourneymenDemandTraining Capacityfor Journeymen

A gap exists in the development of journeymen

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-5,000

0

5,000

10,000

15,000

20,000

2013 2014 2015 2016

People Trained

Shortfall in Journeymen

*Union training would reduce the gap

Money already dedicated to expanding capacity

Carl Perkins – Colleges receiving $7.08 million July 1 to respond to all high wage, high demand job training needs. Construction

training is eligible and encouraged statewide

Workforce Training Rapid Response – $4.7 million dedicated this year for craft training, a 20% increase from last year

Additional funds that may become available

Workforce Training Rapid Response – Up to $10 million annually for technical and two-year colleges. Some portion may be dedicated craft training each year

Trade Adjustment Assistance Community College and Career Training – 10 LCTCS colleges will apply for several million dollars of federal funding. Consortia application due July 3, 2013

$20 million campus expansions in Shreveport and Lake Charles

Additional state funding to be considered in 2014-15 budget

$251 million Facilities with a Purpose bond issue to expand LCTCS career and technical education and training capacity approved by the Legislature last week. Starts in 2015.

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Public funding to increase training capacity

Funds for students to offset tuition

Private industry funding – 7 cents to 12 cents per hour to ABC and direct grants to other institutions

MOUs between LCTCS and ABC, unions – Allows ABC and LCTCS Colleges to negotiate capacity building with daytime training offerings

Pell Grants – LCTCS is driving two changes to make construction students eligible for Pell Grants:

• Converting Clock-Hour or Non-Credit training to Credit Hour

• Changing Pell criteria to cover short-term training (i.e. NCCER and AWS)

TOPS Tech – $1,186 per semester of state funding for LCTCS students with 17 on ACT or a Silver Level

Certification from WorkKeys

TOPS Tech Early Start – Up to $600 of state funding per semester for each dual-enrolled high school student

Workforce Investment Act – Funding of last resort for eligible individuals with documented barriers to employment

All tuition offsets expected to continue every year

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Targeted recruiting

Aggressive statewide recruitment focused on each defined potential source of labor

– Unemployment insurance claimants: Recruitment through direct weekly contact with LWC, local offices and through accountability measures associated with their claims. Target: 6,400 people with construction skills through 2016

– Long-term unemployed: Active, individual outreach by LWC to former claimants with construction skills. Target: 400 through 2016

– Discharged veterans: Active outreach by LWC Veterans Services staff at three major bases. Target: 500 per year

– Workers in similar occupations: Word of mouth, general awareness (State will not actively pursue.) Target (expectation): 5,500 through 2016

– High school students: Direct recruitment through La. Connect and guidance, such as Career Compass, and in-person outreach. Annual targets: 3,000 graduates; 400 dropouts

– Under-employed: Active recruitment through community- and faith-based organizations and state safety net agencies. Target: 7,500 per year

– Helpers among the existing craft workforce: Employer outreach and incentives will be critical to recruitment of people for training to become journeymen. Target: 7,700 to 12,600 per year

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General recruiting

Public relations and events – Press conferences at LCTCS campuses attended by state leaders and

driver employers to announce training classes aligned with specific job opportunities

• Focus on brevity of training and high starting wages

– Inclusion of these messages in all workforce interviews and press events

– Heavy use of social media and grass-roots promotion as well as press to announce general recruiting events for jobs and training

– Direct outreach to skilled individuals for hiring events related to specific employers and projects

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General recruiting

Partnership with Build Your Future – General awareness and links

to services for all targeted populations

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Actions already taken or underway

Intensive public-private partnership to plan and execute the response

Comprehensive, detailed forecast of industrial construction workforce demand and supply through 2016

Statewide standardization of construction training curriculums to industry specifications

Prioritization of craft training at LCTCS campuses statewide – facilities and funding, including redirecting millions of dollars to high-wage, high-demand craft training

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Actions already taken or underway

Independent validation of LCTCS training capacity at S. La. campuses

LCTCS partnerships with other training institutions to – Leverage training capacity at

willing high schools – Leverage private funding and

facilities (ABC and labor unions) – Enable private students to take

advantage of publicly funded tuition programs

Compressed Schedule of industry-based certification (NCCER & AWS) training

– Fast training, multiple cohorts during the year. Classes start in July

Louisiana Star Jobs mobile app launched in May. Now accessible by smart phone.

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Actions already taken or underway

Evening and weekend industry-based certification (NCCER & AWS) training

LCTCS curriculum redesign to qualify eligible craft students for Pell Grants – Allows multiple cohorts at the

same time. Enables training of existing workforce with day jobs

Outreach to congressional delegation

Webpages created LCTCS & LWC and flyers distributed to high school seniors since May

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Actions already taken or underway

Partnership with NCCER’s Build Your Future. National web marketing with links to Star Jobs, Louisiana training institutions and hiring events.

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Task Force recommendations to drive success

WIC and LWC – Oversee plan and implement tracking and reporting mechanisms – WIC must re-emphasize the importance of career and technical

education in high schools

Governor and Legislature – Add craft training for additional funding in the 2014-15 State budget and

beyond

Louisiana Office of Student Financial Aid – Continue to enhance LA Connect to provide a user-friendly experience

with connections to Louisiana Star Jobs

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Task Force recommendations to drive success

Department of Education – Prioritize Carl Perkins funding specifically to include craft training – Continue to drive development and adoption of enhanced career track

diploma – Catalyze the continued adoption of Louisiana Connect – Ensure career coaching is provided to all middle and high school

students

Congressional delegation – Enact changes in law, specifically related to Pell Grants, to enable

greater flexibility to respond to state and local needs

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Task Force recommendations to drive success

Plant owners, contractors and their associations – Drive training of existing workforce: helpers to journeymen – Work to drive down high attrition rates – Maintain or enhance existing levels of funding for craft training – Post all jobs with LWC in HiRE/Star Jobs – Ramp up outreach to high school students in person and in Louisiana

Connect

LCTCS – Continue momentum at campus level to ensure LCTCS meets the

demand for quality training to industry specifications by prioritizing funding and leveraging training capacity at ABC, high schools and unions

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Task Force recommendations to drive success

Schools and school boards – Make NCCER or the equivalent training available to every Louisiana

high school student through alliances with LCTCS campuses and other training organizations

– Provide career coaching to all middle and high school students, from staff or through partnerships with Career Compass or similar entities, to make students aware of high-wage, high-demand career opportunities and pathways to success

– Ensure full use of Louisiana Connect to expose students to employers, colleges, education and training, and financial aid

Local elected officials – Work with Workforce Investment Boards and other stakeholders to

ensure alignment with the needs of your parishes – Grow local employment by engaging business and industry in Star Jobs

and LA Connect to recruit, train, and hire local residents

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I. WIC Member Questions and Comments

II. Public Comments

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Comments