Workforce Needs Assessment for the Aerospace Industry in North Carolina

Transcription

1 Workforce Needs Assessment for the Aerospace Industry in North Carolina Prepared for: The Golden LEAF Foundation and North Carolina s Eastern Region June 2009 Regional Technology Strategies, Inc. with Susan Seymour

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3 Table of Contents Executive Summary (separate)...es-1 Introduction... 1 Report s Purpose... 1 Methodology... 1 Section 1: Aerospace Industry Characteristics... 3 Definition... 3 Industry Profile... 4 Geographic Concentrations... 6 Section 2: Aerospace Labor Market Profile... 8 Projected Job Growth... 9 Educational Attainment...11 Potential Labor Pool...12 Section 3: Aerospace Employers Skills Needs in North Carolina...15 Section 4: Educational Capacity in North Carolina to Support the Aerospace Industry...17 K-12 Education...17 North Carolina Community College System...19 Universities and Four-Year Colleges...26 Section 5: Gaps...31 Labor Market Gaps...31 Skills Gaps...31 Education and Training Capacity Gaps...32 Section 6: Findings on the aerospace industry and its workforce...33 Industry: Aerospace Manufacturing, Maintenance, Repair and Overhaul (MRO) and Avionics...34 Labor market demand and supply...35 Skill needs and gaps...36 North Carolina's aerospace-related education and training capacity...36 Section 7: Goals and Recommendations...38 Goal 1: Generate interest in aerospace careers among the future and existing workforce and increase the pipeline of qualified workers...38 Goal 2: Strengthen education capacity in high schools, community colleges and universities...41 Goal 3: Develop organizational systems and mechanisms required to meet the workforce needs of the aerospace industry...44 Best Practice: Aerospace in Oklahoma...49 Organizations in Oklahoma...49 Tax credit for Engineers Working in Oklahoma s Aerospace Engineers...50 Endnotes...51 Appendices... A-1 through I-1

4 Acknowledgments This project would not have been possible without the Golden LEAF Foundation and North Carolina s Eastern Region partnership and their staffs and leadership teams. State agencies went to great ends to assist us. In particular we are grateful for the cooperation of the state s educational community including the University of North Carolina General Administration and its individual campuses, the North Carolina Community College System and its individual campuses, and the Department of Public Instruction. Their support, cooperation and willingness to find the data we needed to complete our work was essential. The North Carolina Department of Commerce, particularly the Business & Industry Division and the Division of Policy, Research & Strategic Planning, provided information, contacts, data and analysis that greatly improved our report. A special thanks goes to the companies for taking the precious time to talk with us, complete surveys, and provide advice on useful avenues for further investigation. Their cooperation in this effort was tremendous. We also want to thank the Oklahoma Aerospace Institute, which provided invaluable logistical and organizational support during a site visit to Oklahoma. The project team consisted of Susan Seymour (Project Director), Chris Beacham (RTS Project Director), Dan Broun (RTS), Jenna Bryant (RTS) and Cynthia Liston (CD Liston Consulting).

5 Introduction In December 2008 the Golden LEAF Foundation (GLF) provided funding through the North Carolina Eastern Regional Partnership to contract with Susan Seymour and to carry out a workforce needs assessment for North Carolina s aerospace industry. This report is the result of a six-month process involving GLF staff, the North Carolina Department of Commerce, representatives of the state s aerospace companies, all levels of the state s educational system, the state s military facilities, industry and non-profit organizations with an interest in aerospace. In addition, the team visited with out-of-state workforce systems in Kansas and Oklahoma and interviewed representatives from other states in order to understand best practices in aerospace workforce development. Report s Purpose The report is designed to both provide the background needed to understand the state of the aerospace industry in North Carolina and recommend actions that will improve the capacity of the state to support the industry s workforce needs both now and into the future. While our focus was on workforce, the recommendations have relevance to other competitiveness factors because workforce issues and these factors are too intertwined to examine in isolation. Many of the recommendations would involve lead or supporting roles for GLF, but most affect a broad range of governmental, educational, industry, and funding organizations. Methodology Our examination of the industry began with substantial data analysis and background research of the state, national and international aerospace industry. We conducted an online survey to develop a stronger understanding of the specific experience and workforce needs of the state s aerospace companies. This was supplemented with a series of on-site visits to some of the companies and telephone interviews with others. We worked with the state s military facilities to understand their aerospace-related workforce needs. These efforts provided the information on workforce training demand within the industry. To understand the state s workforce system K-12, community college, four-year colleges and research universities we used similar methods. We collected information on relevant programs and examined data on individuals trained in relevant programs. We visited and interviewed various educational institutions and systems to better understand their programs and achievements as well as their needs for meeting the challenge of training the growing aerospace industry. These efforts provided the information on workforce training supply within the industry. All of this data and analysis fed into a series of findings and gaps on the state s aerospace industry from which the team extracted three broad goals that need to be addressed. The recommendations were then tailored to address the findings and goals through specific strategies and actions. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 1

6 This report is divided into seven sections plus a separate Executive Summary and a series of appendices that provide substantial background information and data supporting the report. The seven sections are Section 1: Aerospace Industry Characteristics; Section 2: Aerospace Labor Market Profile; Section 3: Aerospace Employers Skills Needs in North Carolina; Section 4: Educational Capacity in North Carolina to Support the Aerospace Industry; Section 5: Gaps; Section 6: Findings on the Aerospace Industry and its Workforce; and Section 7: Goals and Recommendations. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 2

7 Section 1: Aerospace Industry Characteristics Definition Organizations, researchers and governmental entities use varying definitions of the aerospace manufacturing, maintenance, and repair industry, often tailored to include the strengths of aerospace companies already located in a region. However broad the various definitions, they generally contain what is referred to as the core definition recognized by the Aerospace Industries Association (AIA). For this workforce needs assessment of the aerospace sector in North Carolina, we expand the AIA definition to include the broadcast and wireless communications equipment manufacturers as a means to capture the increasing importance of avionics in aerospace i. Therefore, the industrial codes analyzed for this report comprise: o Aircraft Manufacturing (NAICS ) o Aircraft Engine and Engine Parts Manufacturing (NAICS ) o Other Aircraft Parts and Auxiliary Equipment (NAICS ) o Guided Missile and Space Vehicle Manufacturing (NAICS ) o Space Vehicle Propulsion Units and Parts Manufacturing (NAICS ) o Other Guided Missiles, Space Vehicles and Auxiliary Equipment (NAICS ) ii o Broadcast and wireless communications equipment (NAICS ) o Search, Detection, and Navigation Instruments (NAICS ) o Other Support Activities for Air Transportation (NAICS ) A Special Note about Industry Classifications In defining the aerospace manufacturing, maintenance, and repair industry in North Carolina special attention was paid to include companies that carry out maintenance, repair, and overhaul (MRO) activities even though sometimes they are not classified as such in their NAICS designation. Through conversations with key industry organizations it was revealed that large and small MROs are critical to North Carolina aerospace industry. Identifying MROs is a particularly daunting task as these businesses straddle more than one industrial code for which data is gathered. For instance, establishments involved in the factory conversion, overhauling, rebuilding of aircraft are captured under the aircraft manufacturing industry while other maintenance and repair services are captured under other support services for air transportation. The data used in this report is reported by the primary NAICS code for each establishment and thus MROs are presented in NAICS codes 3364 (Aerospace Products and Parts) and (Other Support Services for Air Transportation). Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 3

8 Industry Profile As the industry is defined for this project, aerospace companies in North Carolina accounted for more than 10,000 jobs and 207 establishments iii in This includes establishments in the state as well as self-employed contractors, sole proprietors, and partnerships. The state s aerospace industry employment is dominated by three industries: 1) Avionics; 2) Other Support Activities for Air Transportation; and 3) Aircraft Engine and Engine Parts Manufacturing. Broadcast and Wireless Communications Equipment, the largest portion of the Avionics sector, develop products for use in a host of industries that may or may not be specific to aerospace. Nevertheless, it appears the state has a fairly high number of jobs in firms that make mobile, microwave, and earth station communications equipment, as well as global positioning system equipment, all of which are relevant to aerospace even if they are not currently supplying aerospace customers. The Other Support Activities for Air Transportation NAICS category, with close to 3,300 jobs, comprises firms that perform inspection, testing, and maintenance and repair of aircrafts. As with a portion of the avionics sector, some of the firms may not provide services that are directly related to industries of focus in this analysis; however, various maintenance, repair, and overhaul services performed in the state would fall into this category so therefore the category is included. In North Carolina, avionics make up 37% of the total employment in the aerospace sector while aerospace manufacturing and MRO related companies are responsible for the bulk of the rest of its employment. North Carolina does not appear to have any regional specialization in any of the aerospace manufacturing and MRO industries based on the collected data. Table 1 shows the number of jobs associated with the aerospace and avionics manufacturing industries, location quotient (employment concentration), and numbers of establishments. It should be noted that the 2007 numbers reflect a 60% growth in aerospace employment since 2002, compared to only 5% growth nationally. Table 1. North Carolina Jobs by Industry, 2007 Description 2002 Jobs 2007 Jobs Location Quotient 2007 Establishments Avionics: Broadcast and Wireless Communications Equip. 1,930 3, Search, Detection, and Navigation Instruments Aerospace Manufacturing & MROs: Aircraft Manufacturing Aircraft Engine and Engine Parts Mfg. 1,415 2, Other Aircraft Parts and Equipment Space Vehicle Propulsion Units and Parts Mfg Other Guided Missiles, Space Other Support for Air Transport. (inc. MRO) 2,122 3, Total Aerospace Mfg., Maintenance & Repair 6,866 10, Source: Economic Modeling Specialists, Inc.-Complete Employment, Fall 2008 Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 4

9 What This Data Does NOT Show: While data is helpful in presenting a baseline picture of the aerospace manufacturing, maintenance and repair industry including civilian employment at military facilities, it is rarely comprehensive. Due to timelines and discrepancies in taxonomies, data can skew the picture researchers attempt to paint. The data presented in Table 1 does not include: Entry of new firms such as Spirit and HondaJet, companies that are beginning to ramp up employment. New and replacement jobs that have been filled since Companies whose primary industrial code does not fall into the project industry definition. Within the sector, firms categorized as manufacturing aircraft, engines and engine parts account for one-third of all jobs. These jobs typically pay higher average wages than other key North Carolina manufacturing sectors. As shown in Figure 1, workers in aerospace product and parts manufacturing industries earned an average wage of $70,616 in 2006 compared to $68,418 earned by workers in tobacco and $58,097 earned in pharmaceutical and medicine manufacturing. The higher average pay for aerospace product and parts industries is not unique to North Carolina. According to the Bureau of Labor Statistics (BLS), workers in industries that manufacture aerospace product and parts often earn higher than average wages because of the high levels of skill required by the industry and the need to motivate workers to concentrate on maintaining high quality standards in their work. iv Aerospace workers tend to work longer hours than many other manufacturing industries, which is also reflected in the higher rate of pay. One important aspect to note about the industry in North Carolina, is that value added per employee in the aerospace product and parts sector is greater than in North Carolina than in aerospace dominant states such as Kansas and Oklahoma. This is primarily because Figure 1. Average Pay in Manufacturing Sectors in North Carolina, 2006 Source: US Census, Annual Survey of Manufactures: Geographic Area Statistics, 2006 Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 5

10 most North Carolina aerospace manufacturing facilities are relatively new, technologically advanced and efficient. Geographic Concentrations Aerospace manufacturing, maintenance and repair firms are present in 49 of the 100 counties in North Carolina. As shown in Figure 2, the establishments are dispersed throughout the state with strong clustering around the Piedmont Triad region, Charlotte, and the Research Triangle Park area. In addition, Spirit s new facility at the Global TransPark represents a key anchor for the industry in the eastern part of the state. Companies like HondaJet, TIMCO, Honda Aero, and B/E Aerospace are located in the Piedmont Triad Region. The Triad region has a regional specialization in maintenance, repair and overhaul companies like TIMCO. Close to 87% of the aerospace workforce in the region is employed in the other support services for air transportation. While some of these workers may be employed at Piedmont Triad International Airport, there is also a large pool of aircraft mechanics working for MROs in the region. The Global TransPark, with the location of the new Spirit AeroSystems facility is poised to increase the aerospace presence in the eastern part of the state, which already has a large number of employees due to the location of Fleet Readiness Center (FRC) East in Cherry Point. The northeastern part of the state s aerospace presence is largely due to the large number of employees at DRS, one of the largest MRO companies in the nation. The Charlotte Economic Development Region has a concentration within the other aircraft parts and equipment manufacturers sector. About a third of the aerospace workforce in the Charlotte Region works in this sector. Goodrich, which recently won a contract with Bombardier Inc. to provide air-data and ice-detection systems, is headquartered in Charlotte. Other aerospace related companies located in the Charlotte region include BEA Systems, Turbomeca, and General Dynamics. Lastly, Charlotte has the most employment in airport related employment, for example baggage handlers, but which is not a focus of this report. Research Triangle has a significant number of companies that are (or potentially could be) part of avionics sector with 37 establishments, most of which are located in Wake County. Nearly 67% of the Research Triangle Park regional aerospace employment is in the broadcast and wireless communications manufacturing sector. The region is home to FirstMark Aerospace and Aero Avionics. Aero Avionics, which makes communication and navigation equipment products and airborne infrared thermal-imagining equipment, is located in Sanford. GE Aviation has an engine production facility in Durham. Aircraft engine and engine parts, the second largest industry in the aerospace manufacturing, maintenance and repair sector, is the dominant aerospace industry in North Carolina s Southeast region. New Hanover County, alone, has 46% of the aircraft engine establishments in the state and is home to GE Aircraft Engines. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 6

11 Figure 2. Aerospace Related Firms in North Carolina, 2007 Source: North Carolina Department of Commerce Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 7

12 Section 2: Aerospace Labor Market Profile Employment in North Carolina s aerospace companies, including civilian employees at military facilities, falls into 212 occupations, according to published data. However, this workforce assessment only focuses on the 72 occupations related to production, design, maintenance, and assembly of aircraft and aircraft parts. According to national and state reports, these are the jobs that require the most technical and specialized skills sets and for which it can be difficult to find qualified employees. In terms of jobs, over 57% (or 6,200 jobs) of the sector s total jobs fall into these 72 occupations. For simplicity s sake, they are aggregated into 17 job categories, as shown in Table 2. Approximately 80% of the 6,200 jobs are in production occupations while the other 20% are in design and engineering related occupations. Table 2. Key Aerospace Jobs in North Carolina by Occupational Group Job Category 2007 Jobs Software Engineers 447 System Engineers 57 Aerospace Engineers 114 Electrical Engineers 218 Industrial Engineers 308 Mechanical Engineers 83 Materials Engineers 18 Assemblers 1160 Drafters and Design Technicians 83 Electrical/Electronic Technicians 280 Fabricators 107 Machine Operators 557 Machinists 261 Mechanics 1733 Quality and Process Technicians 350 First-Line Supervisors 362 Logistics 135 Total 6,273 Source: Economic Modeling Specialists, Inc.-Complete Employment, Fall 2008 Although recent economic conditions have affected many aerospace companies, there is still a pressing need to eventually replace retired workers. The AIA reports that 59% of aerospace employees, nation-wide, are over 45 years of age v. North Carolina aerospace companies surveyed by RTS cite the attrition of engineers as one of their greatest workforce challenges. The replacement needs of the North Carolina aerospace industry (production, design, and assembly jobs) are expected to be around 23% over the next ten years. vi Machine operators and assemblers have the greatest replacement needs over the Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 8

13 next ten years with an estimated 33% of the existing workforce expected to move to other industries or retire. Projected Job Growth It is difficult to project job growth for aerospace because of the historic recession during which this analysis is being carried out. Aerospace has been hit hard, and companies interviewed and surveyed for this project revealed uncertainty about the future. Our analysis relies on government job projection data as well as insights and data from the RTS survey and company interviews. These projections should be viewed as relevant but subject to large variance and should be supplemented regularly by dialogue with industry to revisit anticipated job growth as conditions change. According to the US Bureau of Labor Statistics, employment growth within the North Carolina aerospace manufacturing, maintenance and repair industry is projected to outpace replacement needs over the next eight years. By 2017, an additional 4,300 jobs may be needed in the 72 occupations reviewed for this report. vii All of the occupational categories are forecast to grow by at least 50% over the next ten years with a combined average growth rate of 68%. Professional jobs are responsible for the high employment growth rate. Engineers have a ten-year growth rate over 100%. Within the engineering occupations, materials engineers and software engineers have the greatest estimated demand for new jobs. Mechanical and aerospace engineering jobs are projected to increase by 50% or more in the industry. The rate of increase of demand for assemblers and technicians jobs is not as great, but still large. The projected 10-year employment growth rate for assemblers is just above 60%. Technicians are expected to see a 57% growth in jobs. Most of the demand for technicians comes from drafters and design technician occupations. This group of occupations has a forecasted growth rate of 75% over the next ten-years. Through conversations and surveys with aerospace companies, the research team obtained a short-term gauge of companies anticipated employment changes. While not all companies were willing to share their near term anticipated hiring, those that did helped to paint a picture of what true needs for the aerospace manufacturing, maintenance and repair will be over the next three years. Through conversations and surveys with aerospace companies, the research team gathered data on companies anticipated employment needs. The 36 companies that responded to the survey expect to fill 2,500 new positions in the coming three years. Engineers, mostly with bachelor s degrees and two to four years of experience, make up 545 of these positions. The greatest need, however, comes from production positions including assemblers and fabricators. For example the companies indicated a need for 800 fabricators typically with a high school diploma and two to four years of experience. Businesses are also planning to hire hundreds of assemblers, machine operators, and mechanics over the next three years. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 9

14 Table 3. Key Aerospace Job Needs by Occupational Group, Occupation 2007 Jobs 2017 Jobs New Jobs Replacement Jobs New & Replacement Jobs Engineers 1,245 2,607 1, ,622 Assemblers 1,160 1, ,084 Drafters and Design Technicians Electrical/Electronic Technicians Fabricators Machine Operators Machinists Mechanics 1,733 2, ,217 Quality and Process Technicians First-Line Supervisors Logistics Total 6,273 10,622 4,296 1,470 5,766 Source: Economic Modeling Specialists, Inc.-Complete Employment, Fall 2008 Spirit s new facility will impact the region s labor market. Spirit s facility in Kinston is large enough and the region s skilled labor pool small enough that the company s hiring ramp up will lead to labor market disruptions. Spirit will soak up regional talent, impacting other manufacturers and civilian employment at military bases. The survey also asked about the difficulties companies faced in hiring for specific occupations. Overall, respondents report moderate difficulty finding qualified workers, perhaps not surprising given the current recession. Companies mentioned that the lack of scale in the state s aerospace industry means that improvement in the industry s economic conditions and the hiring from new aerospace firms could quickly lead to difficulty in hiring in many fields. The greatest difficulty is finding engineers, which based on conversations with industry is not a problem exclusive to North Carolina. Among technician jobs, quality and process technicians and fabricators were reported as the most difficult to fill. Table 4 shows survey respondents rating of difficulty in filling different occupations on a scale of 1 to 5, with 1 being little difficulty and 5 being great difficulty. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 10

15 Table 4: Difficulty in Finding Qualified Aerospace Workers (Scale of 1 to 5, with 1 being little difficulty and 5 being great difficulty) Job Title Difficulty in Finding Qualified Employees Assemblers 2.5 Drafters & Design Techs 3 Electrical/ Electronic Techs 3 Fabricators 3.5 Front-line Supervisors 2.2 Machine Operators 2.9 Machinists 2.5 Mechanics 2.7 Quality & Process Techs 3.7 Aerospace Engineer 3.4 Electrical Engineer 3.5 Industrial Engineer 2.7 Materials Engineer 3.4 Mechanical Engineer 3.4 Software Engineer 3.8 Systems Engineer 3.3 Educational Attainment An examination of the educational background of North Carolina s existing aerospace workforce shows, not surprisingly, that engineers typically have at least a bachelor s degree in the industry, while assemblers and technicians attained less formal education before becoming employed (Figure 3). In terms of engineers, software and aerospace engineers usually have attained the most education with at least 30% of the individuals having either a master s, professional, or doctorate degree. In contrast, 40% of materials engineers have attained less than a bachelor s degree. On the production side, quality and process technicians tend to have higher educational attainment. While most of the individuals currently employed on the production side of aerospace have had some college training, these statistics do not identify additional training the existing workforce has obtained through on-the-job training programs and industry-specific certifications. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 11

16 Figure 3: Educational Background of Existing NC Aerospace Workforce, 2007 Source: Economic Modeling Specialists, Inc. Complete Employment, Fall 2008 and North Carolina Department of Commerce Potential Labor Pool In North Carolina, over 21,500 students completed within the 65 North Carolina creditbearing educational programs at two- and four-year colleges related to the identified occupations for this project in the academic year. The programs range from general industrial production programs to advanced engineering. These students obtained educational awards ranging from community college diplomas to doctorate degrees. Table 5 displays the percentage of academic year completions by type of award granted. Table 5. Percentage of NC Completers in Aerospace-Related Programs by Award Type, Academic Year Award Type Completers Diploma 14.8% Certificate 8.1% Associate's degrees 16.1% Post-associate's Certificate 1.2% Bachelor s degrees 39.7% Post-baccalaureate certificates 0.0% Master's degrees 18.7% Doctorate degrees 1.4% Source: EMSI and National Center for Education Statistics The data in Table 5 is based on an identified relationship between the selected occupations and their associated instructional programs, as determined by the National Center for Education Statistics. Table 5 shows the same data broken down by occupation. While there is no way of knowing if these individuals will stay in North Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 12

17 Carolina and work in the aerospace industries, this information offers a broad sense of who would be qualified to work in the state s aerospace industry. As noted, these data only reflect credit-bearing completers. Many workers take noncredit or customized training courses to prepare for aerospace jobs but that data is not tracked and reported in ways that can be tied to specific occupations. The role of noncredit and customized training for the industry is discussed in Section 4: Educational Capacity in NC to Support the Aerospace Industry. (That section also presents these same data but broken out by education program and number of institutions offering them, rather than by occupation.) Importantly, these completers are eligible for employment in sectors other than aerospace. Other advanced manufacturing, transportation, and maintenance companies are hiring from this same pool of completers. Also, labor markets do not operate according to state borders: engineers are particularly mobile and frequently move to other states for a job. There is anecdotal evidence from some companies interviewed for this project that highly skilled aerospace technicians also move across states for high paying positions. Most technicians and assemblers, however, are likely to seek employment close to where they received their education. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 13

18 Table 6: Completers in Aerospace-Related Programs by Occupation Diploma Certificate Associate's degree Post-Associate's Bachelor's degree Post-baccalaureate certificate Software Engineers , ,863 Systems Engineers ,303 Aerospace Engineers Electrical Engineers Industrial Engineers ,059 4,379 2, ,774 Mechanical Engineers Materials Engineers Assemblers Drafters and Design Technicians Electrical/Electronic Technicians ,479 Fabricators Machine Operators Machinists Mechanics ,685 Quality and Process Technicians First Line Supervisors Logisticians Source: EMSI and National Center for Education Statistics Master's degree Doctor's degree Total Completers Appendix C provides additional breakouts of these data. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 14

19 Section 3: Aerospace Employers Skills Needs in North Carolina Meeting the labor demands of aerospace companies in North Carolina requires having sufficient numbers of workers who possess the skills needed by current and prospective employers. As described earlier, the project team conducted an on-line survey of identified North Carolina aerospace companies asking them about their skill needs for both technical and engineering occupations. The survey was supplemented by in-person and phone interviews with selected companies. In Appendix I, we provide detailed lists of what respondents told us are the most important skills broken out by each of the occupations listed above. While these lists are not be comprehensive, they do offer educational providers a sense of the breadth of specific skills aerospace companies are looking for to fill particular job positions. In addition, in Appendix B, we include sample job descriptions received from both North Carolina and national aerospace companies. These descriptions offer more information about the skill sets required by various firms. In looking at the totality of responses to inquiries about skills sets, some key findings emerge: Certifications are important but not universal The most common certification for technician positions is the Airframe and Powerplant certification issued by the Federal Aviation Administration (FAA A&P). Firms often require this certification for technicians, fabricators and front-line supervisors. Several firms that employ electronic and avionic technicians also prefer technicians with the Federal Communications Certification s Radio Operator s License. In general, certification requirements are greater at MRO companies because their contracts with air carriers often stipulate that workers carrying out the maintenance and overhaul work hold specific certifications. At manufacturing companies, the certifications are typically not necessary for entry-level assembly positions but are helpful or required to advance to more senior positions. Specific knowledge of aerospace is not a prerequisite for many aerospace jobs but experience is Although some firms do look for certified FAA A&P mechanics, most companies do not indicate that they require skill sets exclusive to the aerospace industry. Instead they prefer individuals to have robust advanced manufacturing skills and experience such as welding, drafting and assembly. An obvious exception is for aerospace engineers where knowledge of an airplane s complex structure is obviously paramount. Even for this position, however, many companies indicate that they often hire more general mechanical engineers rather those trained especially in aerospace. This also likely reflects that the pool of aerospace engineers is smaller because it is a less common track in engineering schools. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 15

20 Blue print reading is critical for production workers and technicians The traditional manufacturing skill most frequently cited by companies is the ability to accurately read complicated design specifications. This is particularly true for assemblers and fabricators. Other skills mentioned as necessary but can be difficult to find are Computer Numeric Control (CNC) machining and Computer Aided Design (CAD) drafting. Employers are concerned about basic skills Solid literacy and numeric skills, not surprisingly, are more frequently mentioned than technical skills as prerequisites for successful employees. Companies recognize that without adequate basic skills it is unlikely an individual can learn a job s tasks and processes. This shows up in their frequent desire to see more emphasis on science, technology, engineering, and mathematics (STEM) education at all education levels. Soft skills are very important for employees at every level For production workers, technicians and engineers, the ability to work in a team towards a goal is mentioned as a frequently needed skill. Similarly, the ability to troubleshoot and identify problems facing a particular task is consistently mentioned among firms. Cross-disciplinary thinking and strong problem-solving abilities are two skills that some companies cite difficulty in finding among engineers. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 16

21 Section 4: Educational Capacity in North Carolina to Support the Aerospace Industry The state of North Carolina offers training for current and future aerospace workers through three main sources: K-12 education, the state s 58 community colleges, and the universities. There are also numerous private education schools and colleges in the state. Combined, these sets of institutions support aerospace by providing individuals with 1) critical foundational skills and knowledge, 2) skills that apply across the spectrum of advanced manufacturing, and 3) skills specifically geared towards the aerospace industry. This section provides information about the overall educational capacity of North Carolina institutions to train workers for the state s aerospace industry. Data comes from interviews with faculty and staff in selected institutions and analysis of enrollment and completer data at relevant programs. The amount of education and training in North Carolina that impacts the aerospace industry is vast, and our data do not encompass everything. They do, however, offer a broad view of available education capacity and examples of key initiatives. K-12 Education The role of the state s public secondary school system in preparing the workforce for the aerospace industry is threefold. First, the K-12 system provides the basic foundational skills basic reading, mathematics, and problem-solving for instance, that are critical to any advanced industry. Second, through more explicit STEM education, schools can generate interest in aerospace careers and provide the technical basis to encourage young people to enter the industrial workforce. Third, high schools provide specific industrial training in such disciplines as welding that can be utilized by the industry. In this report, we present data about the second and third roles; the first is equally important but its reach extends far beyond aerospace into the realm of providing a solid education for all industries and careers. As mentioned elsewhere, it is beyond the scope of this project to evaluate the quality of these high school programs in terms of their utility for the aerospace industry. We do know, however, that many career and technical programs have not been able to keep their programs up-to-date, particularly with equipment needs. Also, it is important to note that in the RTS survey and during interviews, companies more frequently report looking to community colleges and universities as sources for new employees. Career and Technical Education Some high schools throughout the state offer specific technical education courses that have direct application into the aerospace industry. There are four main technical training Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 17

22 courses offered in K-12 with applications to the aerospace industry: electronics, welding, metals manufacturing, and computer aided drafting. Table 7 details statewide enrollment in each of these disciplines. Of particular relevance given the aerospace industry s need for fabricators, 34 high schools in the state offer welding classes, a small percentage of high schools in the state. Table 7. Enrollment in Selected Secondary Career and Technical Education Classes, Course Enrollment Statewide Electronics 2,206 Metals 802 Welding 1,499 CAD Drafting 14,446 Source: North Carolina Department of Public Instruction The project team identified two high school programs that are direct feeders of workers for an aerospace firm. Pisgah High School in Haywood County works with a local aerospace company in an apprenticeship relationship. Students enrolled at the high school can earn credit while working at the company using the skills they learn at the high school in a real world atmosphere. Individuals who enter the apprenticeship program have gone on to be hired at the company demonstrating the value of the program. In the Piedmont Triad there is a new Aviation Academy at Andrews High School that is forging a relationship with industry and Guilford Tech. STEM Education North Carolina offers numerous STEM programs and initiatives that support the aerospace industry in particular and advanced manufacturing in general. The following are descriptions of some key STEM programs. NC New Schools Project: Learn and Earn Early College High Schools & Redesigned High Schools. ( There are two types of innovative high schools that are part of the North Carolina New Schools Project where inquiry-based learning and critical thinking types of teaching are practiced: the Learn and Earn Early College High School initiative and the Redesigned High School Program. The Bill and Melinda Gates Foundation supports the Learn and Earn Early College High School initiative. There are 60 Learn and Earn Early College High Schools in North Carolina where students enroll in the 9 th grade and typically leave 4 to 5 years later with a high school diploma and either an associate degree or 2 years of transferable college credit toward a four-year degree all without paying any tuition. The purpose is to provide an incentive for high school students to remain in school and prepare for high-skilled, high wage jobs in new and emerging industries such as aerospace. They often work to attract underrepresented students such as minorities and students from families whose parents did not attend college. Early Colleges are located on community college or university campuses, with the majority located on community college campuses. Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 18

23 Under the Redesigned High School program, large high schools have been transformed into smaller theme schools that invigorate students with their real world, high technology focus. The aerospace relevant themes of the Redesigned High Schools include Engineering and Information Technology. NC Project Lead the Way Schools. Project Lead the Way (PLTW), a non-profit organization, is a national program that partners with schools in all 50 states to address shortages of qualified scientists, engineers and engineering technologists. The focus is to increase not only the numbers of students successful in these fields, but also to produce a more diverse group of students engaged in STEM careers. PLTW provides effective curricula and teacher training that allows middle schools and high schools to improve technical education while exciting students about advanced technology fields. There are 62 middle and high school Project Lead the Way Schools in North Carolina. The PLTW pre-college engineering curriculum consists of five 9-week integrated units of study called Gateway to Technology at the middle school level and eight full year courses called Pathways to Employment at the high school level. The interview with Spirit in Kinston conducted for this project indicated support for the PLTW program in its region. Career Academies. North Carolina s high school Career Academies are important feeders into postsecondary education, training and entry into the workforce. Students at career academies take a sequence of specialized courses that have a thematic-based approach to a particular career area/pathway. Assisted by industry and business partnerships, career academies integrate academic and technical skills that prepare students for a smooth transition into college and/or knowledge-based careers. The STEM, Transportation, Manufacturing and Engineering academies across North Carolina help prepare the future aerospace technical workforce. Many career academies are organized as a school within a school, while some entire schools organize all of their programs around career academies. Each career academy is labor market driven. There were 133 career academies statewide serving 15,088 students in North Carolina Community College System Overview of Community College Aerospace Capacity The North Carolina Community College System (NCCCS) serves as a pipeline for career changers and new entrants into aerospace-related jobs, and as a source of crosscutting and company-specific skills that serve aerospace and other advanced manufacturing industries. The system provides three main types of education and training that impact the aerospace industry: 1) credit programs, a few specific to aerospace but most in other manufacturing-related curriculum programs; 2) non-credit courses ranging from aerospace specific classes such as the FAA A&P modules to welding; and 3) customized training programs geared toward specific aerospace companies. (Customized courses can have crossover with credit or non-credit offerings in terms of content. For example, for some job positions, HondaJet s customized training courses largely incorporate FAA A&P modules.) Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 19

24 As further evidence of community colleges importance, in the RTS survey of aerospace employers they were cited most frequently as the pipeline for new hires. In-house vendors were cited slightly more often than community colleges as the source of skills upgrading and certification training, however. As part of the scope of work for this workforce needs assessment, the project team conducted in-person and telephone site visits with six community colleges that support aerospace companies in the state through their education and training. These are not the only colleges with aerospace-related education and training capacity in North Carolina. The focus of the site visits was to gather information and insights about workforce development, not research and development activities. Amongst those visited colleges with the most aerospace activity are: Guilford Technical Community College, which has one of the largest aerospace customized training programs in the nation, the T.H. Davis Aviation Center, that includes certificates and two-degrees in Aviation Systems Technology and Aviation Management & Career Pilot. Lenoir Community College, which has a state-of-the-art Advanced Machining Center to train for aerospace firms, to replace retiring employees from the NADEP in Cherry Point, and to upgrade machining skills of NC s eastern manufacturers, better positioning them as suppliers to aerospace and other advanced manufacturing companies. Craven Community College, which developed the Institute of Aeronautical Technology to provide skilled aviation maintenance technicians for employment at Fleet Readiness Center (FRC) East at Marine Corps Air Station Cherry Point or with private or commercial aviation firms. Appendix E contains more detailed descriptions of these and other community college programs. As described earlier in this report, certification as an FAA approved training provider/school is very important for aircraft maintenance and repair education programs. Three community colleges in the state are approved to offer FAA Airframe and Powerplant programs that prepare individuals to sit for the FAA A&P certifications. These institutions are: Craven Community College, Guilford Technical Community College and Wayne Community College. Becoming an FAA certified school requires significant equipment, close monitoring by the FAA, and meeting robust requirements to continue as an FAA approved training provider. GTCC is also seeking to become a Radio Operator s License provider as part of its planned avionics program. Funding The costs associated with starting and maintaining advanced manufacturing programs at community colleges, whether credit or non-credit can be prohibitive, and aerospace programs are among the most expensive. The facilities to house them must be large and near a runway. The equipment and consumable supplies are also costly. The state does Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 20

25 not have dedicated funds for equipment for start-up programs. The North Carolina Community College System is seeking higher reimbursement rates from the General Assembly for high cost programs such as aerospace. Guilford Tech has received support from local and state foundations to pay for its state-of-the-art aviation campus and has also tapped local funds. Resources in rural regions appear scarcer, although the Golden LEAF Foundation has made significant investments in college programs including the advanced manufacturing center at Craven Community College, advanced machining centers at Lenoir Community College and Haywood Community College and the advanced materials center at Wilkes Community College. Customized Training Program funds do not normally allow for purchase of equipment. The NCCCS Office recently received approval to use approximately $800,000 in Customized Training Program funds to support equipment, instructional supplies and curricula development to enable Lenoir Community College to carry out the Spirit training project. That level of support, however, is not common and speaks to the size of the Spirit facility and its eventual large workforce. Credit Programs As mentioned previously, three NC community colleges Guilford, Craven and Wayne are currently approved to offer a two-year degree to create aerospace technicians and mechanics: Aviation Systems Technology Associate of Applied Science Program. Three NC community colleges are approved to offer a two-year program that prepares individuals to manage and operate airports, service, flight and dispatch and pilot license certification training: Aviation Management and Career Pilot Associate of Applied Science Program. The three colleges are Guilford, Lenoir and Caldwell. Beyond aviation specific programs, however, the federal government s National Center for Education Statistics identifies 61 other credit programs at North Carolina s community colleges where completers are expected to be qualified for the 17 technician (and engineering) occupations that are the focus of this workforce needs assessment. Table 8 identifies all those aerospace-related programs. In total, 8,415 individuals received an associate s degree, a diploma, or a certificate in aerospace-relevant programs in the last year for which program data is available, These completer numbers are the same as those presented in the labor market analysis; however, instead of shown by occupational category, we present the data by education program in order to give an indication of colleges capacity. This table does not show the extent to which completers are concentrated in or spread out among colleges with the program. However, Appendix D shows maps of completers by County and Economic Development Regional Partnership. (The maps collapse completer data into job categories, rather than by program.) Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 21

26 Table 8. Numbers of NCCCS Aerospace-Related Programs and Completers, by Credential, 2007 # Institutions Offering Program viii Associate's degree Certificate Diploma Total Completers Program Title Aerospace, Aeronautical and Astronautical Engineering Airframe Mechanics and Aircraft Maintenance Technology/Technician Automobile/Automotive Mechanics Technology/Technician ,376 Avionics Maintenance Technology/Technician Bioinformatics Business Administration and Management, General ix 60 1, ,386 Business/Commerce, General Chemistry, General Chemistry, Other Commercial and Advertising Art Computer and Information Sciences and Support Services, Other Computer and Information Sciences, General Computer Engineering Technologies/Technicians, Other Computer Engineering Technology/Technician Computer Engineering, General Computer Graphics Computer Installation and Repair Technology/Technician Computer Programming, Specific Applications Computer Programming/Programmer, General Computer Science Computer Software Engineering Computer Technology/Computer Systems Technology Design and Visual Communications, General E-Commerce/Electronic Commerce Electrical, Electronics and Communications Engineering Electrical/Electronic Engineering Technologies/Technicians, Other Electrical/Electronic/Communications Engineering Technology/Technician Electrician Electromechanical Instrumentation/Maintenance Techs, Other Electromechanical Technology/Electromechanical Engineering Tech Workforce Needs Assessment for the Aerospace Industry in North Carolina Page 22