Michigan Industry Cluster Approach (MICA): Best Practices
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1 Michigan Industry Cluster Approach (MICA): Best Practices WDA Presenters: Marcia Black-Watson Rey Guzman Jeanette Klemczak Chris Knapp Bob Sherer Energy Cluster Agriculture Cluster Health Care Cluster IT & Media Cluster Manufacturing Cluster MWA Panelists: Susan Corey Jody Kerbyson Lisa Larson Janie McNabb Andrea Ragan Kara Stewart Southeast Michigan Community Alliance Michigan Works! Thumbworks! A Michigan Works! Agency Calhoun Intermediate School District Northwest Michigan Council of Governments Capital Area Michigan Works! Kalamazoo-St. Joseph Michigan Works!
2 Michigan Works! Agency: Southeast Michigan Community Alliance (SEMCA) Michigan Works! Energy Primary Cluster Contact: Susan Corey, Although electricity demand stayed relatively flat and the number of jobs in Michigan declined from , due in large part to efficiency improvements, the demand for electricity continues to increase. Hiring will expand as the baby boomers leave the workforce to retire - - it is estimated that approximately 50 percent of utility workers will leave the industry over the next three to five years. Technological advances will also provide employment opportunities for a broad range of occupations, for example, new power plants that rely on a diversity of fuels will be needed to increase energy supplies as future demand grows. The purpose of this cluster is to look closely at southeast Michigan utilities expected retirements as the baby boomers continue to age out of the workforce system. SEMCA works closely with DTE Energy and Consumers Energy, recruiting and screening for lineworkers and for natural gas operations positions. The energy/utility sector is coded under manufacturing and is difficult to separate out of other data sources. The best method for data collection is direct involvement with the utilities. The Center for Energy Workforce Development is working with the U.S. Department of Labor to provide a more detailed record of energy/utility related openings. SEMCA began working with the energy/utility sector in the summer of 2010 to assist transitioning incumbent meter readers to higher technology positions. In April of 2011, SEMCA was awarded a portion of a U.S. Department of Energy (DOE) grant to assist DTE Energy with outreach, the recruitment and training of lineworker positions and other energy jobs. SEMCA is actively involved with the two major utilities in southeast Michigan. All workforce, education, and utility partners have committed to remaining active. Currently DTE Energy is the employer champion for this cluster. The scope of the project is large and SEMCA s ability to create a functional infrastructure crucial. DTE needs a workforce system to provide outreach and recruitment and screen large numbers of people for the lineman and underground splicer positions in the pre-hire Boot Camp. In the southeast Michigan region there already exists a very functional partnership with seven MWAs working together. Each center has a specific contact that handles paperwork issues and assists the potential candidates to schedule drug tests, credential checks, and driving record checks. Candidates are then ed to energyjobs@semca.org. This system allows all of the areas to participate and have access to these high-wage jobs. Within the three years of this project SEMCA received Michigan Works! Conference 2013 Page 2
3 more 600 applicants; it worked so well they only had to recruit one time for the three boot camps that were run. DTE and Consumers Energy also teamed up for a Gas Boot Camp for returning Veterans. SEMCA worked with in conjunction with the National Guard, Schoolcraft College, and Alpena Community College to provide Energy Industry Fundamentals; the training was partly paid for with the DOE Grant dollars. Michigan Works! Agency: Thumbworks! A Michigan Works! Agency Agriculture Primary Cluster Contact: Jody Kerbyson, kerbysonj@thumbworks.org The Thumb Area AG-EMPLOYMENT cluster was established several years ago as part of the Michigan Regional Skills Alliance initiative. The agriculture sector represents the second largest employment sector in the four county Thumb area, therefore its importance to the region is very high. Data relative to the Thumb Area AG-EMPLOYMENT cluster is/was initially gained from the State Bureau of Labor Market Information & Strategic Initiatives: 1. Annual Planning Report, 2. Quarterly Help Wanted Online Snapshot Report, 3. Analyst Resource Center Employer Database; plus countybased economic development organization cluster data, and ThumbWorks! Business Services skillgap projections. While that data is still utilized, ThumbWorks! relies heavily on the input from our agri-businesses in the initiative to keep us apprised of changes in the industry that will affect talent development, recruitment efforts, and incumbent workers. ThumbWorks! has retained a face-to-face and online engagement process with the AG- EMPLOYMENT cluster based on the original RSA Employment Builders Alliance incumbent worker project design. Day-to-day engagement is facilitated by ThumbWorks! Business Services staff for the purpose of skill needs identification, hiring opportunities and/or product changes. The AG- EMPLOYMENT cluster s employer champion is John Shetler of the Active Feed Company. Best Practices: Examples include an AG-EMPLOYMENT PRINCIPLES course, FFA Day, Women in AG Day, and training seminars in the winter months when the AG industry is in a slower mode, which assist the businesses in maintaining a skilled workforce and obtaining credentials necessary for day-to-day operations. Michigan Works! Conference 2013 Page 3
4 Membership: On an on-going basis there are 30+ agency/business representatives active in the initiative in addition to another 30+ small farm operators that participate in cluster activities. The ThumbWorks! WIDB Board including the education providers in the region are kept apprised of sector activities and are called upon when additional expertise is needed. The Thumb Area AG-EMPLOYMENT cluster decided from its inception that meetings were undesirable due to the nature of their business and therefore rely heavily on technology for polling and communication as well as interaction with the ThumbWorks! Business Services team. Michigan Works! Agencies: Calhoun Intermediate School District Kalamazoo-St. Joseph Michigan Works! Primary Cluster Contact: Health Care Lisa Larson, Kara Stewart, The Southwest Michigan Health Care Consortium is comprised of employers, educational institutions, and Michigan Works! partners in Barry, Branch, Calhoun, Kalamazoo, and St. Joseph counties. Using the MI Bureau of Labor Market Information and Strategic Iniatives/The Conference Board, Help Wanted Online indicates as of the 3 rd quarter of 2012 there are 250 registered nurse positions and 100 medical and health service managers available in Kalamazoo/St. Joseph counties and 120 registered nurse positions in Barry, Branch, and Calhoun. The occupational detail for health care indicates an increase over last year 3 rd quarter of 31.3% in Kalamazoo/St. Joseph and a 45.5% increase for the Calhoun Intermediate School District. The Summer of 2012 Occupational Employment Forecast identifies an expected15.8% increase in health care positions by 2018 for the five county area. Employers in the health care consortium are surveyed quarterly via an electronic survey. The survey indicates that there is a need for employees in the following health care occupations immediately as well as the next 3-6 months and 6-12 months: registered nurses, licensed practical nurses, certified nursing assistants, personal care aides, home health aides, environmental technicians/housekeeping, pharmacy technicians, therapists, therapy aides, medical records, and medical billing. Employers have indicated consistently that the largest skill gap is life skills (attendance, motivation, etc.). Problem solving and writing skills were lacking in employees. Michigan Works! Conference 2013 Page 4
5 A number of years ago the Calhoun Intermediate School District and the Kalamazoo, St. Joseph Michigan Works! formed a regional health care skills alliance. The overall focus was to develop health care industry-based partnerships that would promote the economic health and welfare of the area s businesses and workers. Early on the alliance was jointly involved in activities as a region to address health care worker shortages, skill shortages, training mismatches, employee recruitment and retention and organizational design issues that are common across this geographic region. In recent years the two areas had not been as actively involved as a region until discussions across the areas caused them to assess the possibility of revitalizing the alliance to share resources and combine efforts to address common issues across the larger region. This partnership lead to discussions on various issues employers identified as areas they could use some assistance with, such as: recruitment of qualified candidates, background checks, lockouts of clinical sites, retention issues, and home health care aid certification. The following regional strategies were developed: 1.) Sharing of best practices in a forum; 2.) Job fair/career fair to assist with current employer s needs; 3.) Find a common assessment tool to assist employers in finding a good match early on in the recruitment process; 4.) Develop a list of current long term care providers within the five county area; and 5.) Complete periodic needs surveys and distribute the results. Meetings of the Southwest Michigan Health Care Consortium are scheduled quarterly with the meeting attendance increasing at each meeting. Currently we have 23 active members including employer champions Borgess Hospital, Bronson Health, Lifespan, and Region 3B Area Agency on Aging. Any health care employer in the five-county region is welcome to attend. Best Practices Different sectors of healthcare and educators are working together as a region on common challenges. The group identifies issues and challenges and takes this to the state level with the help of WDA industry cluster staff to provide recommended solutions and support. Progress updates on these issues are given to the consortium during their regular quarterly meetings. Customized events, such as the healthcare job fair, are executed based on employer needs. Employer needs surveys are completed each quarter and shared with the Consortium. Michigan Works! Agency: Northwest Michigan Council of Governments Primary Cluster Contact: Manufacturing Janie McNabb, janiemcnabb@nwm.cog.mi.us Michigan Works! Conference 2013 Page 5
6 The manufacturing industry cluster (including transportation equipment, machinery, plastics and rubber, beverage, chemical, wood products, and more) comprises 8% of the region s employment (over 11,000 jobs) and 14% of the gross regional product. Average earnings in this cluster are above average ($59,500), but fall short of average earnings nationally. The majority (56%) of the workforce is over age 45 and male (75%). Manufacturing establishments exist in every county in our region, but are concentrated in Grand Traverse, Wexford, and Charlevoix counties. Through 2014, job growth (of more than 50 net jobs) is expected in each of the following sub-sectors: Other Motor Vehicle Parts, Pesticide and Agriculture Chemicals, Material Handling Equipment, Aluminum Production, and Machine Shops. The average earnings in these growth subsectors is closer to the national average at nearly $ Occupations in demand include machinists, CNC operators and programmers, welders, assemblers and layout workers of all types, and machine maintenance technicians. In 2012, employers in northwest Michigan voiced the greatest demand for machinists that have manual machining skills, understand CNC operation, and therefore have the potential for moderate on-the-job training. Employers also voiced demand for welders, particularly MIG welders, but non-competitive wages in certain parts of the region are the cause of the supply shortage. The MWA convenes employer forums groups of manufacturers with similar skill needs to discuss specific training possibilities. The groups are convened when hard-to-fill positions reach a critical mass. In the past year, three employer forums have met to discuss the need for welding. These resulted in a Just-in-Time MIG welding and blue print reading training program. Three other employer forums took place for machining. Again, these resulted in a Just-in-Time training class that focused on basic, manual machine operation. Best Practices: Employer forums are facilitated discussions designed to pinpoint skill needs that are common among all employers in attendance. The discussion is structured to follow the skill competency pyramid: Which basic employability skills are needed? Which academic skills are needed? Which occupationspecific skills are needed, including certifications? Finally, employers are asked about the practices within individual businesses that may be different at each business. Educators attend the forums as well, and ask questions that will help them to design a training program that will meet employer need. MWA job seeker staff attend the forum in order to understand employer needs and to therefore better recruit and assess students. Information from the forum is used to create a curriculum, which may involve multiple educational entities, including adult education, classroom training at a community college, hands-on training at a career tech lab, and on-the-job training by employers. Over the past ten years, the MWA attempted to create membership-based employer groups, using the Regional Skills Alliance model. However, membership varied and retention lagged. So the MWA uses the employer forum model, convening groups of employers with similar needs when the demand calls for it. All employers who are interested are invited to attend and are not required to be members of a particular group. The MWA has convened manufacturing employers from across the 10-county region, but have majority interest in Grand Traverse, Wexford, and Charlevoix counties. In each location, MWA business services staff act as employer champions assist in recruiting companies, advertising career opportunities to potential students, and being media spokespersons. Michigan Works! Conference 2013 Page 6
7 Michigan Works! Agency: Capital Area Michigan Works! Information Technology Primary Cluster Contact: Andrea Ragan, The Capital Area IT Council is a Michigan Regional Skills Alliance that was formed to address the specific workforce development challenges facing the local information technology industry. Employer led and directed, the Capital Area IT Council (CAITC) is a coalition of industry, education, economic development, and government partners committed to identifying, developing, and implementing real solutions for improving the quantity and quality of IT professionals in the region. Information technology is one of the fastest growing sectors in the capital area, having grown 20% between 1998 and almost 7 times faster than the rate for all jobs. The data suggests that more than 9,000 residents in the capital area are employed in IT related jobs. IT companies in the region are enjoying explosive growth, creating the jobs of the 21st century; however the very success of the regional IT community means they must cooperate among themselves and with their partners to recruit, develop and retain the people needed to sustain future growth. The IT Council is designed to be a vehicle to assure the local business community that the region has a coherent, effective champion for IT workforce development. CAMW! has a Business Services Team of professionals to address staffing and hiring needs of local employers. One Business Services Liaison is assigned to the IT cluster specifically. The CAITC has a group of employer champions built into the operating board of directors, such as Board President, Clarke Anderson with A.J. Boggs, President Elect, Arjay Patrick with MESSA (formerly Michigan Education Special Services Association), and Past President, Jeff Detloff with Providence Consulting, as well as other board members representing Techsmith, Liquid Web, Delta Dental, and a number of other local IT employers. Best Practices: The Capital Area Tech Knowledge E-Pathways program is a career-transition program to help individuals plug into and advance along the computer science track and into careers in IT. The program addresses the need for education/career pathways with multiple options for participants to advance along a continuum of education/training and employment opportunities in information technology. E-Pathways is intended to help unemployed and underemployed individuals contribute to and benefit from regional IT growth, with mutual beneficial outcomes for both job seekers and employers in the IT industry. Michigan Works! Conference 2013 Page 7
8 Governance/Alignment with Talent and Economic Development Partners is strength of CAMW! agency. The Capital Area IT Council works with regional partners specifically on talent retention and engagement efforts, due to their relevance to the IT industry s workforce development needs. A primary example is Tech Tours, a partnership between local IT employers, Michigan State University and CAITC, with support from Lansing Economic Area Partnership and Michigan Economic Development Corporation, to ensure emerging college graduates in technology related majors have the opportunity to see tech career opportunities and lifestyle opportunities in greater Lansing. Membership: CAITC has a membership of more than 75 employers along with MWA and educational partners. Member IT companies pay annual dues based on their number of employees and Associate Members (education providers, economic development organizations, recruitment and staffing agencies) pay a flat rate. Membership meetings are held on a bimonthly basis, in months opposing the CAITC Board of Directors. Three project-based committees focused on Education, Communications, and Membership meet on an as-needed basis. Additionally, a number of peer groups have emerged from CAITC, including a local CIO peer group, Help Desk User Group, Operations User Group, etc., who also meet on a bimonthly or quarterly basis as determined by each group respectively. Michigan Works! Conference 2013 Page 8
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