Indiana Economic Outlook Indiana Industry Rediscovers Educa2on …Is it too Late? December 11, 2013 www.conexusindiana.com
Steve Dwyer CEO
David Johnson CEO
Mike Langellier CEO
Paul Mitchell CEO
Automotive Council
Aerospace and Defense Council
Workforce Development Programs
Supplier Insight
Logistics Council
Conexus Indiana Execu2ve Commi@ee Mr. David Parish (Chairman) Senior Vice President, Operations and Purchasing Allison Transmission, Inc. Indianapolis, IN
Mr. Robert Koch President & CEO Koch Enterprises Evansville, IN
Dr. Robert J. Bernhard Vice President for Research Prof., Aerospace & Mechanical Engineering University of Notre Dame Notre Dame, IN
Ms. Catherine A. Langham President Langham Logistics, Inc. Indianapolis, IN
Mr. Andrew F. Brooks President Brooks Construction Co., Inc. Ft. Wayne, IN Mr. Chip E. Edgington Executive Vice President-Operations OSP Group Indianapolis, IN Mr. Steven Dwyer President and CEO Conexus Indiana Indianapolis, IN Ms. Julie K. Griffith Vice President for Public Affairs Purdue University West Lafayette, IN Mr. David Johnson President & CEO Central Indiana Corporate Partnership Indianapolis, IN
Mr. Dennis D. Oklak Chairman & CEO Duke Realty Corporation Indianapolis, IN Mr. Mark C. Rhodes Vice President, Engineering & Technology Rolls-Royce Indianapolis, IN Mr. Zachary B. Scott President, Ohio Valley District UPS Indianapolis, IN Mr. Thomas J. Snyder President Ivy Tech Community College of Indiana Indianapolis, IN Mr. S.J. (Stan) Woszczynski V.P.– Global Supply Chain & Manufacturing Cummins, Inc. Columbus, IN
Conexus Indiana Regional Partners John Burne5 President & CEO Community Educa2on Coali2on Columbus Steven Dwyer President and CEO Conexus Indiana Indianapolis Roger Feldhaus Execu2ve Director West Central Indiana Region 4 Workforce Board Lafaye@e Jim Heck Execu2ve Director Grow Southwest Indiana Workforce Evansville Brooke Hun@ngton President & CEO EmployIndy Indianapolis Lisa Lee Execu2ve Director Western Indiana Workforce Investment Board, Inc. Terre Haute
Kathleen Randolph President and CEO WorkOne Northeast Fort Wayne Mike Row President/CEO Alliance for Strategic Growth, Inc. Muncie Barbara Street President/CEO WorkOne Eastern Indiana Muncie Greg Vollmer President & CEO WorkOne Northern Indiana South Bend/Elkhart Linda Woloshansky President and CEO Center of Workforce Innova2ons, Inc. Valparaiso
Indiana Logis2cs Council
Indiana Logistics Council
Task Force Groups
Infrastructure – Help develop a comprehensive plan to strengthen our public and private logis2cs infrastructure. Chair: Andy Brooks, President of Brooks Construc2on in Fort Wayne
Public Awareness – Cul2vate paid and earned media to strengthen our public and private logis2cs infrastructure Chair: David Holt, Vice President Opera2ons and Business Development, Conexus Indiana in Indianapolis
Public Policy – Recognize State and Federal public policy Chair: Chip Edgington, Execu2ve Vice President of Opera2ons, OSP Group in Indianapolis
areas that impact the logis2cs industry and work with State and Federal thought leaders from government, academia, and associa2ons to enhance the sector Chair: Don Miller, President of Mount Vernon Barge Service in Mount Vernon
Recruitment – Iden2fy and invite logis2cs industry
companies to be added to the Indiana Logis2cs Council Chair: Cathy Langham, President of Langham Supply Chain Solu2ons in Indianapolis
Workforce Development – Develop and implement
strategies to build the human capital needed to support the growing demand for logis2cs services through innova2ve workforce programs Chair: Chip Edgington, Execu2ve Vice President of Opera2ons, OSP Group in Indianapolis
“Next Genera2on Hoosier Projects”
Blue Ribbon Commission for Transporta2on and Infrastructure
NC Regional Logis2cs Council (CINCRLC)
NW Regional Logis2cs Council (CINWRLC)
“State Freight Plan”
“Infrastructure Strategic Research”
Freight Advisory Commi@ee for MAP-‐21
NE Regional Logis2cs Council (CINERLC)
CI Regional Logis2cs Council (CICIRLC)
INDOT Innova2on Partnership
SW Regional Logis2cs Council (CISWRLC)
9
SE Regional Logis2cs Council (CISERLC)
Indianapolis Intermodal Hub at Senate Avenue Terminal Train Route
Indianapolis Intermodal Hub at Senate Avenue Terminal
Benefits of Intermodal Hub - Estimated Time Savings for Logistics Companies § 2-3 Days Time Savings to Prince Rupert via Steamship § 1-2 Days Time Savings to Vancouver via Steamship § 2-3 Days Time Savings to Chicago via Rail § 2-4 Days Time Savings Bypassing Chicago § 5-10 Total Days Time Savings
Indianapolis Intermodal Hub at Senate Avenue Terminal
Benefits of Intermodal Hub - Estimated Cost Savings Per Company § $130 Fees Per FEU (Pier Pass Fee and Alameda Corridor Fee) § $109 Fees Per FEU (Harbor Maintenance Tax) § $10 to $25 Fees Per FEU (Importer Security Filing) § $500 to $1000 Drayage and Detention Charges Per FEU (Bypassing Chicago) § $749 to $1,264 Savings Per FEU *FEU (40 –Foot Equivalent Unit or Intermodal Box)
Indiana Aerospace & Defense Council
Indiana Aerospace & Defense Council
Indiana Aerospace & Defense Council Workforce Development
• Ensure that Indiana’s aerospace & defense companies are competitively advantaged by having access to a robust pipeline of highly-capable and technically-skilled workers
Business Assistance
• Connect Indiana companies with resources and educational opportunities that better enable them to sell their products or services within the aerospace & defense marketplace
Accelera@on of Innova@on
• Position Indiana to be a global leader in the development and commercialization of innovative aerospace & defense-related technologies
Branding & Outreach
• Serve as the collective "voice" of Indiana's aerospace & defense sector before key audiences, and to engage in targeted campaigns to promote and preserve our assets.
Indiana Automo2ve Council
Indiana Automotive Council
- Chaired by Tom Easterday, Execu2ve Vice President of Subaru of Indiana Automo2ve - Four Task Force Groups § Workforce – Collabora2ng with industry and higher educa2on to expand the quan2ty and skill set of both engineering and produc2on workers § Supply Chain – Developing and a@rac2ng Indiana’s pool of suppliers § Innova2on – Driving innova2on and excellence in the automo2ve industry through the collabora2on of industry and universi2es § Policy and Branding – Making Indiana the recognized leader in the automo2ve industry
- Execu2ve Board consists of 10 industry execu2ves and 6 university supporters
Indiana Supplier INsight
A free on-‐line supplier portal for Indiana businesses.
Indiana Supplier INsight • A free service suppor2ng & growing Indiana’s supply chain. • Hoosier suppliers connect with: • Buyers • Federal Contrac2ng opportuni2es • Networking and Training events
• Buyers have access to a broad spectrum of capable Hoosier suppliers. • Searchable supplier informa2on: capability, diversity, cer2fica2ons, product/services informa2on, demographics
• Sponsored & promoted by Conexus Indiana, IEDC, Ivy Tech Corporate College and Office of the Indiana Secretary of State.
Indiana Supplier INsight • 8,668 registered businesses to date. • 2,199 are diversity suppliers: WBE, MBE, Veteran, SD Veteran; the largest diversity supplier database in Indiana
• 1,132 procurement opportuni2es posted to date. • Bulk of opportuni2es are DoD small business set-‐asides for manufacturers
• Supplier Development Program launching in 2014. • Addressing Automo2ve Councils’ supply chain urgent areas of need • Pilot focused on Tool & Die, Stamping, Cas2ng/Forging & e-‐Coa2ng suppliers
• Government business workshops and Manufacturing Connec2ons events held quarterly.
Indiana Manufacturing and Logis@cs Data
2013 Manufacturing & Logis2cs Report Card
Industry Types Other 19%
Aerospace and Defense 13%
Sports/Leisure 1%
Industrial Equipment 18%
Automo2ve 19%
Food/ Beverage 7% High-‐tech/Technology 6% Data from Katz Sapper & Healthcare Miller 2013 Manufacturing 4% Survey
Clothing/Fashion 1% Chemicals/ Communica2ons Petroleum 4% 1%
Furniture/Home Goods 7%
Key Loca2ons Customer Loca2ons 76%
80% 67%
70%
63%
60% 50% 40%
33%
32%
30%
22%
20% 10% 0% 2011 Data from Katz Sapper & Miller 2013 Manufacturing Survey
In Indiana
4%
2%
1% 2012 Other 49 States
2013 Outside the U.S.
Financial Performance 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
47% 35%
34%
30% 23%
21%
2009-‐10 Data from Katz Sapper & Miller 2013 Manufacturing Survey
45%
44%
21%
2010-‐11 Challenged
Stable
2011-‐12 Healthy
“Onshoring” vs. “Offshoring” Do you plan on reloca2ng or "offshoring" any manufacturing outside of the U.S. during this year or the next (2013-‐2014)?
7%
Do you plan on reloca2ng or "onshoring" any manufacturing back to the U.S. during this year or the next (2013-‐2014)?
6%
93%
94% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Data from Katz Sapper & Miller 2013 Manufacturing Survey
Yes
No
Availability of Workers (2013)
80% 70%
70%
60%
57%
55% 48%
50%
43% 39%
40% 30% 20% 10% 0%
22% 19%
17% 10%
29%
Management and Administra2on
29%
26% 24%
25% 21% 18%
19% 8%
No Shortage Data from Katz Sapper & Miller 2013 Manufacturing Survey
28% 25%
4%
3% Customer Service
36%
7%
4% Produc2on Support
Low Shortage
Sales and Marke2ng
Scien2sts and Skilled Design Engineers Produc2on
Moderate Shortage
Serious Shortage
8%
6%
Unskilled Produc2on
Availability of Workers (Next 3 to 5 Years) 70% 60%
61% 53%
50%
46%
40% 30%
0%
39% 32%
31% 29% 29%
28%
24% 20%
18%
20% 10%
38% 38%
39% 36%
11% 4%
11% 7%
Customer Service Management and Administra2on
No Shortage Data from Katz Sapper & Miller 2013 Manufacturing Survey
22%
22%
11%
22%
10%
4% Produc2on Support
Low Shortage
Sales and Marke2ng
Scien2sts and Design Engineers
Moderate Shortage
Skilled Produc2on
7% 8%
Unskilled Prodcu2on
Serious Shortage
Skill Deficiencies Inadequate basic employability skills (e.g.,a@endance, 2meliness, work ethic, etc.) Inadequate math skills
49%
24%
56% 54%
Inadequate problem-‐solving skills Inadequate reading/wri2ng/communica2on skills Inadequate technology/computer skills Lack of basic technical training (e.g., degree, industry cer2fica2on or voca2onal training)
68%
44%
54%
42% 44% 39% 40%
50%
0% 10% 20% 30% 40% 50% 60% 70% 80% Skills Deficiencies: Rejected Applicants Data from Katz Sapper & Miller 2013 Manufacturing Survey
Skills Deficiences: Current Employees
The Demand for Skilled AML Workers While low-‐skill (-‐25%) and mid-‐skill (-‐18%) jobs declined over last 20 years: “Employment in high-‐skill manufacturing occupa2ons has risen 37%, an increase of roughly 1.2 million jobs. High skill jobs were the only source of job growth in the U.S. manufacturing sector during this period.” -‐ Federal Reserve Bank of New York
Workforce development is economic development.
Yes, AML Jobs are Hot • A NAM survey shows 600,000 jobs are unfilled today • Indiana ranks 8th in manufacturing employment – 522,220 people • Indiana ranks 9th in logistics employment – 325,000 people • Manufacturing pays 40% more than the state’s average • Logistics jobs pay 30% more than the state’s average
Building an AML Workforce Solu@on
Industry-‐Driven Solu2on: Hire Technology • Human resource and opera2ons execu2ves from companies across Indiana ranging from 50 to over 1,000 employees and from automo2ve to life sciences • Determined the skills required for a successful middle-‐level employee • Cross-‐walked the iden2fied skills with current high school and post-‐secondary courses • Collaborated with educa2on partners to create new or revised programs to meet industry needs
Advanced Manufacturing and Logis2cs Skills Map
What Industry Needs Today . . . - Safety and Environment - Produc2on and Inventory Control Systems - Six Sigma Tools - Lean Manufacturing Principles - Regulatory Compliance - Total Quality Management (TQM)
. . . It’s a New World
Hire Technology: AML Curriculum § Two-‐year course sequence Ø Introduc2on to Advanced Manufacturing and Logis2cs Ø Advanced Manufacturing I
§ Na2onally recognized creden2als (MSSC & APICS) § Dual credits § Immersive online training environment § Project based learning § Local, unique industry content § Intensive educator training
Content and Creden2als
• 114 industry partners • 94 manufacturing companies & 20 logis2cs companies • 43% growth during 2012-‐2013 School Year • 42 new industry partners • Meaningful collabora2on • Internships, job shadowing, facility tours, projects
Cross Sec2on of A+ Partners • • • • • • • • • • • • • • • • • • •
Advance Auto Parts Aisin USA Manufacturing Allison Transmission AM General BAE Systems Batesville Tool and Die Batesville Casket Company BD Distribu2on/GENCO Busche CNC Caterpillar Coca-‐Cola Cummins Distributors Terminal Ft. Wayne Metals Garrity Tool GE Avia2on GM-‐Fort Wayne Assembly Hillenbrand Honda
• • • • • • • • • • • • • • • • • • • • •
HP Products Ingram Micro Mobility Integrated Distribu2on Services Koch Enterprises Langham Logis2cs Lear Corp Magna Powertrain Muncie MD Logis2cs Mursix Overton & Sons Peerless Pump OSP Group Republic Steel Ryobi Die Cas2ng Steel Technologies Subaru of Indiana Automo2ve Toyota Toyota Industrial UPS Venture Logis2cs Wabash Na2onal
2013-‐2014 Hire Technology Schools Served • • • • • • • • • • • • • • • • • • •
A.K. Smith Career Center Anderson High School Arsenal Technical High School Avon High School Batesville High School Beech Grove High School Ben Davis High School Bremen High School Broad Ripple Magnet High School for the Arts and Humani2es Brownsburg High School Brownstown High School Calumet New Tech High School Cascade High School Center Grove High School Central Nine Career Center Central Noble High School Crispus A@ucks Medical Magnet High School Concord High School Daleville High School
• • • • • • • • • • • • • • • • • • • •
Danville High School Decatur Central High School Elkhart Area Career Center Elkhart Central High School Elkhart Memorial High School Elwood Community High School Excel Center-‐Decatur Excel Center-‐Franklin Road Excel Center-‐Kokomo Excel Center-‐Lafaye@e Excel Center-‐Meadows Excel Center-‐Michigan Street Excel Center-‐Richmond Excel Center-‐West Indy Franklin Central High School Franklin Community High School Gambold Preparatory Magnet High School George Rogers Clark High School George Washington Community High School Goshen High School
2013-‐2014 Hire Technology Schools Served • • • • • • • • • • • • • • • • • • • • • • • •
Greenwood High School Highland High School Indian Creek High School Indianapolis Metropolitan High School IPS Career Technology Center Jeffersonville High School Jimtown High School John Marshall Community High School Key Learning Community LaCrosse High School Lafaye@e Jefferson High School Laporte High School Marque@e Catholic High School Michigan City High School Mishawaka High School Monrovia High School Mooresville High School New Prairie High School New Tech Ins2tute Noblesville High School North High School North Side High School North Wood High School Northridge High School
• • • • • • • • • • • • • • • • • • • • • • •
North Vermillion Jr./Sr. High School Northwest High School Penn High School Perry Central High School Perry Meridian high School Plainfield High School Riverton Parke Jr./Sr. High School Rockville Jr./Sr. High School Shelbyville High School Shortridge Magnet High School for Law and Public Policy South Bend Career Academy South Central Jr./Sr. High School South Vermillion Jr./Sr. High School Southport High School Speedway High School Tell City High School Terre Haute North Vigo High School Tri-‐West High School Turkey Run High School Western Boone High School Westville High School Whiteland Community High School Yorktown High School
Indiana’s New Middle-‐Skill AML Jobs • Assembly and Test Associate • Cer2fied Advanced Manufacturing Specialist • Design Technician • Electronics Technician • Engineering Technician • Facili2es Specialist • Inventory Control Specialist
• Material Distribu2on Specialist • Packaging & Rou2ng Associate • Planning & Scheduling Specialist • Quality Systems Associate *Videos of each available at: DreamItDoItIndiana.com/hot-jobs.aspx
The Wealth of Nations is no longer in resources… it’s no longer physical capital…
…It’s in Human Capital.
Closing Thoughts…
What We Don’t Do Well… Connect Use HIRING as a Strategic Weapon Post Employment Training
• Industry to Industry (Supplier INsight) • Industry to Educa2on (Automo2ve Council) • Industry to Research/Innova2on
• Upskilling “Job Descrip2on” Pays Huge Dividends • You Won’t Train as Well as You Can Hire in Most Cases • Trust and Challenge Your Workforce
• Make it a Condi2on of Employment • Make it Specific • Make it Technology Based
A Personal View…Strategic Growth Manufacturing • Proprietary vs. Commodity • Onshoring vs. Offshoring • The World is Not Flat • OEM’s Pay for Problem Resolu2on
Logis2cs • I used to say logis2cs was a part of manufacturing…I was wrong • Amazon Drones • Door to Door & The Last Mile • 6 Sigma teams are all looking for what’s next • Shanghai to Indiana…delivered anywhere in 24 hours
Speed Wins
Strategic Innova2on
Year-‐Over-‐ Year Produc2vity Improvements
Embrace Technology
The absolute #1 requirement for speed is a trained and capable workforce from top to bo@om
Sea Level Changes in Supply Chain Performance
Facts 33% of Hoosiers have the equivalent of a 2 year post-‐ secondary degree or more Projec2on is that by 2025 this will rise to 41% By 2018 at least 55% of all Hoosier jobs will require post-‐secondary educa2on Indiana’s community college gradua2on rate is 12% when measured by the 3 year standard Indiana’s cri2cal shorwall of post-‐secondary educated workers will be measured in the 100,000’s…
It Is Too Late If We Just Tweak The Status Quo! Don’t make hiring & training a Human Resource-‐only issue Establish true rela2onships with area high schools Raise the bar with community colleges in your area (demand more) Understand the work being done by Indiana’s research universi2es and engage Review EVERY job descrip2on in your company and get greedy Create a talent council within and for your organiza2on
Let’s Get Started Raise the bar in job descrip2ons Make creden2als/cer2fica2ons/degrees a requirement or condi2on of employment
Establish points of contacts within your company for each educa2onal level Establish high school awareness programs Offer career counseling assistance to students
Create high school intern programs
Establish college intern program
Set goals for your organiza2on for educa2on a@ainment
Make talent a key metric for your company
Staff Contacts Automo@ve Council Ma@ Conrad
[email protected]
Aerospace and Defense Council Ryan Metzing
[email protected]
Logis@cs Council David Holt
[email protected]
Workforce Development Programs Claudia Cummings
[email protected]
