Business: Management - Logistics. March 2012 Needs Assessment

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1 Business: Management - Logistics March 2012 Needs Assessment Prepared by Elisa Lewis Date: March 18, 2012 Business: Management - Logistics 1

2 Scope Data compiled in this report covers San Bernardino, Riverside, Orange, and Los Angeles counties. Data were drawn from external sources, including the Employment Development Department s California Labor Market Information and the U.S. Department of Education s Integrated Postsecondary Education Data System (IPEDS), as well as Chaffey College s Colleague Administrative database. Data Sources and Calculations Educational Program Data TOP Code Program of Study Logistics and Materials Transportation The Taxonomy of Programs (TOP) is a standardized system used at the state level to classify programs and courses at California Community Colleges that are intended to achieve the same outcome. The Business: Management - Logistics program at Chaffey College is classified under the Logistics and Materials Transportation TOP code. CIP Code Program of Study Logistics and Materials Management The Classification of Instructional Programs (CIP) is a standardized coding system used at the federal level to facilitate accurate tracking, assessment, and reporting of fields of study and program completion at educational institutions throughout the country. This report draws on the Logistics and Materials Management CIP code, which maps to the Logistics and Materials Transportation TOP code, to compare Chaffey College to other institutions and examine employment trends. Completions Data Degree and certificate data regarding students at Chaffey College were collected from the Colleague Administrative database. Degree and certificate data for all comparison schools were collected from the U.S. Department of Education s Integrated Postsecondary Education Data System (IPEDS). All comparison institutions included in this report are postsecondary and have provided data to IPEDS. IPEDS defines postsecondary education as a formal program designed primarily for students beyond high school age. These include academic, vocational, and continuing professional education, and exclude avocational and adult basic education programs. Occupational Data SOC Code Occupational Title Transportation, Storage, and Distribution Managers Logisticians Business Teachers, Postsecondary The Standard Occupational Classification (SOC) system is used by federal statistical agencies to classify workers into occupational categories. The Logistics and Materials Management CIP code was mapped to the three SOC codes listed in the table above using the crosswalk described in the paragraph below. 2

3 Educational Program to Occupation Crosswalk The TOP-CIP-SOC Crosswalk (Employment Development Department, 2007) was used in this report to map TOP codes to CIP and SOC codes. This crosswalk allows the user to estimate labor market demand for California Community College program completers using SOC-based projections from the California Labor Market Information Division. Industry Data The North American Industry Classification System (NAICS) is used by federal statistical agencies to classify business establishments for the purpose of conducting and reporting research on the U.S. business economy. The Standard Occupation Classification codes are mapped to industry data by the California Labor Market Information Division. Industry information is used to geographically map the business locations of potential employers as well as to observe trends across the industries that employ the occupations identified above. 3

4 Introduction and Contents Contents Background Information 5 Regional Job Outlook 9 Largest and Fastest Growing Industry Employers 12 Regional Graduation Summary 16 Chaffey College s Performance on Core Indicators 17 Map of Competitor Institutions 18 Purpose and Goals Chaffey College currently offers a Business: Management Logistics Associate in Science Degree and Certificate, both consisting of 26 units. The following is a description of the Business: Management - Logistics program as outlined in the Catalog: The Logistics Management program prepares students for a career in the logistics industry. Students gain a working knowledge of transportation, warehousing, and supply chain management in addition to skills needed to efficiently operate a warehouse. The purpose of this report is to integrate and analyze data from multiple sources to determine labor market needs for the Business: Management Logistics program at Chaffey College. Regional Definitions Inland Empire includes the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) Los Angeles County includes the Los Angeles- Long Beach-Glendale Metropolitan Division Orange County includes the Santa Ana- Anaheim-Irvine Metropolitan Division Key Terms and Concepts Replacement Jobs: Replacement jobs refer to the number of job openings due to workers leaving an occupation. Annual Openings: Annual openings are calculated by adding the number of new jobs to the number of replacement jobs, divided by the number of years in the projection period. Projections: Projections of employment are calculated by the Employment Development Department and are based on a mathematical formula that includes historical employment and economic indicators along with national, state, and local trends. Occupation: Jobs are grouped into occupations using the federal Standard Occupational Classification (SOC) system. Industry: Occupations are grouped into industries using the North American Industry Classification System (NAICS). Wages: Hourly wages are reported in percentiles and averages. The 25 th percentile is a useful proxy of entry-level wages and the 75 th percentile of experienced-level wages. 4

5 Background Information Business: Management - Logistics Business: Management Logistics programs in California Community are instructional programs that study theory, principles, functions, and procedures for the orderly and economic receiving, manufacturing, shipping, and servicing of products or services. 1 The descriptions of job duties for Business: Management - Logistics-related occupations are provided by the Occupational Information Network. 2 Transportation, Storage, and Distribution Managers 2 Transportation, Storage, and Distribution Managers Plan, direct, or coordinate transportation, storage, or distribution activities in accordance with organizational policies and applicable government laws or regulations. Includes logistics managers.. Typical Tasks of Transportation Managers Analyze expenditures and other financial information to develop plans, policies, or budgets for increasing profits or improving services Set operations policies and standards, including determining safety procedures for the handling of dangerous goods Plan, organize, or manage the work of subordinate staff to ensure that the work is accomplished in a manner consistent with organizational requirements Negotiate and authorize contracts with equipment and materials suppliers, and monitor contract fulfillment Collaborate with other managers and staff members to formulate and implement policies, procedures, goals, or objectives Monitor spending to ensure that expenses are consistent with approved budgets Supervise workers assigning tariff classifications and preparing billing Promote safe work activities by conducting safety audits, attending company safety meetings, or meeting with individual staff members Direct investigations to verify and resolve customer or shipper complaints Direct procurement processes including equipment research and testing, vendor contracts, and requisitions approval 1 California Community Colleges, Chancellor s Office, Taxonomy of Programs, Sixth Edition (Corrected Version). 2 O*Net Online: 5

6 Transportation, Storage, and Distribution Managers 2 continued: Typical Tasks of Storage and Distribution Managers Prepare and manage departmental budgets Supervise the activities of workers engaged in receiving, storing, testing, and shipping products or materials Interview, select, and train warehouse and supervisory personnel Plan, develop, and implement warehouse safety and security programs and activities Prepare or direct preparation of correspondence, reports, and operations, maintenance, and safety manuals Issue shipping instructions and provide routing information to ensure that delivery times and locations are coordinated Confer with department heads to coordinate warehouse activities, such as production, sales, records control, and purchasing Review invoices, work orders, consumption reports, or demand forecasts to estimate peak delivery periods and to issue work assignments Inspect physical conditions of warehouses, vehicle fleets, or equipment and order testing, maintenance, repair, or replacements Schedule or monitor air or surface pickup, delivery, or distribution of products or materials 2 O*Net Online: 6

7 Logisticians 2 Analyze and coordinate the logistical functions of a firm or organization. Responsible for the entire life cycle of a product, including acquisition, distribution, internal allocation, delivery, and final disposal of resources. Typical Tasks Maintain and develop positive business relationships with a customer's key personnel involved in or directly relevant to a logistics activity. Develop an understanding of customers' needs and take actions to ensure that such needs are met. Direct availability and allocation of materials, supplies, and finished products. Collaborate with other departments as necessary to meet customer requirements, to take advantage of sales opportunities or, in the case of shortages, to minimize negative impacts on a business. Protect and control proprietary materials. Review logistics performance with customers against targets, benchmarks and service agreements. Develop and implement technical project management tools such as plans, schedules, and responsibility and compliance matrices. Direct team activities, establishing task priorities, scheduling and tracking work assignments, providing guidance, and ensuring the availability of resources. Report project plans, progress, and results. Direct and support the compilation and analysis of technical source data necessary for product development. 2 O*Net Online: 7

8 Business Teachers, Postsecondary 2 Postsecondary Business Teachers teach courses in business administration and management, such as accounting, finance, human resources, labor and industrial relations, marketing, and operations research. Typical Tasks Evaluate and grade students class work, assignments, and papers Prepare and deliver lectures to undergraduate or graduate students on topics such as financial accounting, principles of marketing, and operations management. Initiate, facilitate, and moderate classroom discussions Prepare course materials such as syllabi, homework assignments, and handouts Keep abreast of developments in the field by reading current literature, talking with colleagues, and participating in professional organizations and conferences Compile, administer, and grade examinations, or assign this work to others Maintain student attendance records, grades, and other required records Plan, evaluate, and revise curricula, course content, and course materials and methods of instruction Maintain regularly scheduled office hours to advise and assist students Conduct research in a particular field of knowledge and publish findings in professional journals, books, or electronic media 2 O*Net Online: 8

9 Regional Job Outlook Projected Regional Job Outlook The table below displays 2008 employment estimates and 2018 projections for Business: Management - Logistics-related jobs. Transportation, Storage, and Distribution Managers jobs are on the decline in all regions of interest. Job openings for Logisticians are on the rise, especially in Los Angeles. Job openings for Business Teachers, Postsecondary are also expected to increase. State of California Total Estimated 2008 Jobs Total Projected 2018 Jobs Projected Growth (%) Ave. Annual New Job Openings Transportation, Storage, and Distribution Managers Ave. Annual Replacement Job Openings Ave. Annual Total Job Openings 12,200 11, (-4.9%) Inland Empire 1,140 1, (-5.3%) Los Angeles CO 3,430 3, (-4.1%) Orange CO (-4.2%) State of California Logisticians ,000 1,900 (17.1%) Inland Empire (17.8%) Los Angeles CO 3,130 3, (14.1%) Orange CO 1,050 1, (19.0%) State of California Business Teachers, Postsecondary 5,900 6, (15.3%) Inland Empire (18.4%) Los Angeles CO 1,620 1, (14.2%) Orange CO (12.5%) Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited March 18, 2012). 9

10 Projected Regional Job Growth The graphs below show the projected growth from 2008 to 2018 of Business: Management - Logisticsrelated jobs. As the graphs show, Transportation, Storage, and Distribution Managers jobs are on the decline while Logisticians occupations are expected to increase across all regions. Business Teachers, Postsecondary jobs are projected to grow, especially in the Inland Empire. % Growth Transportation, Storage, amd Distribution Managers California Inland Empire Los Angeles County Orange County Logisticians % Growth California Inland Empire Los Angeles County Orange County Business Teachers, Postsecondary % Growth California Inland Empire Los Angeles County Orange County Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited March 18, 2012). 10

11 Regional Hourly Wages This table displays the First Quarter of 2011 hourly wage statistics of Business: Management - Logisticsrelated jobs. In general, wages are fairly comparable within each occupation across regions, with Transportation, Storage, and Distribution Managers earning higher wages in Orange County and Logisticians earning higher wages in Los Angeles. An employee in one of these jobs can expect to earn anywhere from $25/hr to $62/hr, depending on the specific job and the employee s level of experience. Mean Hourly Rate 25 th Percentile Median Hourly Rate 75 th Percentile Transportation, Storage, and Distribution Managers State of California $43.94 $32.35 $40.92 $52.15 Inland Empire $39.40 $29.93 $36.59 $46.65 Los Angeles CO $42.94 $33.43 $41.41 $51.14 Orange CO $46.70 $34.66 $42.03 $52.88 Logisticians State of California $38.55 $29.22 $37.12 $46.41 Inland Empire $34.51 $25.43 $34.21 $44.72 Los Angeles CO $37.62 $28.08 $35.61 $44.31 Orange CO $34.72 $26.80 $32.62 $42.20 Business Teachers, Postsecondary State of California $50.81 $36.73 $47.10 $62.44 Inland Empire N/A N/A N/A N/A Los Angeles CO N/A N/A N/A N/A Orange CO N/A N/A N/A N/A Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited March ). 11

12 Largest and Fastest Growing Industry Employers Largest Industry Employers of Business: Management Logistics-Related Occupations The graphs below display the 2008 staffing patterns of the largest industries employing Business: Management - Logistics-related occupations across the state of California. Number of Employees Transportation, Storage, and Distribution Managers Number of Employees 1,600 1,400 1,200 1, Logisticians Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited March 18, 2012). 12

13 Number of Employees 3,100 3,000 2,900 2,800 2,700 2,600 2,500 Business Teachers, Postsecondary Junior Colleges Colleges and Universities Change Over Time of the Largest Industry Employers of Business: Management Logistics -Related Occupations The graphs below display projections of staffing changes from of the largest industries employing Business: Management - Logistics-related occupations in the state of California. Transportation, Storage, and Distribution Managers Percent Change Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited March 18, 2012). 13

14 Percent Change Logisticians Percent Change 25.00% 20.00% 15.00% 10.00% 5.00% Business Teachers, Postsecondary 0.00% Junior Colleges Colleges and Universities Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited March 18, 2012). 14

15 Other Industries with Growth in Business: Management Logistics-Related Occupations Aside from the industries that were displayed in the graphs above, two of the Business: Management - Logistics-related occupations are associated with growth in an additional industry. The table below displays the industry along with its numeric change and percent growth from 2008 to Industry Apparel/Piece Goods Merchant Wholesalers Employment in California Numeric Change Percent Growth Transportation, Storage, and Distribution Managers Logisticians % Local Government % Natural Gas Distribution % Electronic Markets and Agents/Brokers % Employment Services % Medical Equipment and Supplies Mfg % Grocery Product Merchant Wholesalers % Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited March 18, 2012). 15

16 Regional Graduation Summary Education and Training 3 Education and training requirements for Business: Management - Logistics-related occupations vary. Transportation, Storage, and Distribution Managers and Logisticians occupations usually require considerable preparation. Most of these occupations require a four-year bachelor's degree, but some do not. A considerable amount of work-related skill, knowledge, or experience is needed for these occupations. Employees in these occupations usually need several years of work-related experience, onthe-job training, and/or vocational training. Business Teachers, Postsecondary jobs require extensive preparation. Most of these occupations require graduate school. For example, they may require a master's degree, and some require a Ph.D., M.D., or J.D. (law degree). Extensive skill, knowledge, and experience are needed for these occupations. Many require more than five years of experience. Employees may need some on-the-job training, but most of these occupations assume that the person will already have the required skills, knowledge, work-related experience, and/or training. Very advanced communication and organizational skills are required. Regional Completers in Business: Management Logistics Programs The table below displays the number of program completers in the academic year at regional institutions offering Business: Management Logistics programs. Besides Chaffey College, there are 6 institutions offering degrees or certificates below the baccalaureate level across the four county region. Institution Name < 1 year Certificate 1 to < 2 year Certificate Award Level Associate s Degree 2 to < 4 year Certificate Chaffey College Coastline Community College East Los Angeles College Norco College Riverside City College San Bernardino Valley College Santa Monica College Total Note: -- indicates that this type of degree is not offered. 0 indicates that this degree/certificate level is offered but no degrees or certificates were granted. Source: National Center for Education Statistics, U.S. Department of Education, Integrated Postsecondary Education Data System, on the Internet at: (visited March 18, 2012) 3 Labor Market Info, Employment Development Department, California Occupational Guides, on the Internet at: (visited March 18, 2012). 16

17 Chaffey College s Performance on Core Indicators The Perkins IV Career and Technical Education Improvement Act of 2006 mandates that all state and local postsecondary institutions provide data on six core performance indicators for their career and technical education programs. These indicators are: 1) Technical Skill Attainment; 2) Completions; 3) Persistence and Transfer; 4) Employment; 5) Non-traditional Participation; and 6) Non-traditional Completion. Performance goals are set at the state and local levels and progress is monitored based on a comparison between the actual percentage of students who master each performance area and the negotiated levels of performance Chaffey College Performance on Core Indicators The table below displays negotiated and actual core performance indicator levels for all Chaffey College students classified under the Logistics and Materials Management TOP code. These students performed above district negotiated levels on Core Indicators 1 and 5a. Core Performance Indicators Negotiated Level State District Chaffey College Performance Percent Above or Below District Negotiated Level Business: Management - Logistics Core 1 Technical Skill Attainment 88.82% 88.82% % N/A Core 2 Completions- Credential, Certificate, Degree, or Transfer Ready 80.93% 76.88% 75.00% N/A Core 3 Persistence and Transfer 85.86% 85.86% 75.00% N/A Core 4 Employment 81.48% 81.48% DR N/A Core 5a Non-traditional Participation 22.08% 20.53% 37.50% N/A Core 5b Non-traditional Completions 25.00% 22.75% 0.00% N/A Source: CA Community Colleges Reporting Services, Logistics and Materials Management, College Core Indicator Information by 6-Digit TOP ( ). 17

18 Map of Competitor Institutions Aerospace Product and Parts Manufacturing employ the largest number of Logisticians in the state of California. Across the four counties of interest, there are 195 Aerospace Product and Parts Manufacturing employers listed by the California Labor Market (115 in Los Angeles County, 56 in Orange County, 10 in Riverside County, and 14 in San Bernardino County). This map illustrates the locations of all Aerospace Product and Parts Manufacturing employers in each county. 18

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