Workforce Demographics - Defense Contractors 2011

Transcription

1 Conducted for San Diego Workforce Partnership San Diego Military Contractors Outlook Report Conducted for the San Diego Workforce Partnership June 2011

2 TABLE OF CONTENTS Table of Contents... i List of Figures... ii List of Tables... ii Introduction... 1 Employment Outlook... 1 Occupational Findings... 9 Scientific and Technical Support Personnel... 9 Employer Needs and Preferences Conclusions and recommendations Appendix A: Methodology... A-1 Appendix B: Toplines... B-1 i

3 LIST OF FIGURES Figure 1: Military contractor employee size... 2 Figure 2: Defense worker size... 2 Figure 3: Percent of employees that are defense workers... 3 Figure 4: Defense contractor status... 3 Figure 5: 12-month growth expectations (overall and by firm size)... 4 Figure 6: Overall 12-month growth rate... 5 Figure 7: 12-month growth expectations for defense workers (overall and by firm size).. 6 Figure 8: Overall 12-month growth rate for defense workers... 7 Figure 9: Non-permanent and temporary workforce (overall and by firm size)... 8 Figure 10: 12-month growth expectations for scientific and technical support personnel Figure 11: 12-month growth rate for scientific and technical support personnel Figure 12: Preferred education level for scientific and technical support personnel Figure 13: Difficulty finding qualified scientific and technical support personnel Figure 14: Employer preferences for hiring defense workers LIST OF TABLES Table 1: Overview of Project Methodology... 1 ii

4 INTRODUCTION San Diego County has the largest concentration of military personnel in the nation, home to over 135,000 enlisted and civilian employees. This concentration is at the core of San Diego s economy, representing tens of billions of dollars in direct spending that has grown steadily over time. One recent analysis suggests that up to 26 percent of all jobs in San Diego result from this significant military presence. 1 In addition to the direct employment and benefits to other supporting industries (such as food service, laundry, etc.), the concentration of military and Department of Homeland Security supports a vibrant ecosystem of government contractors. This report was commissioned by the San Diego Workforce Partnership to understand more fully the size and breadth of this ecosystem and whether the public workforce system could provide assistance to defense contractors in the preparation of a skilled workforce. The findings in this report are based on a review of existing literature, select executive interviews with several key thought leaders, and a representative sample of 125 contractors in the county. 2 Specifically, this report builds off of the excellent work conducted by the San Diego Military Advisory Council (SDMAC) on its 2011 San Diego Military Economic Impact Study, released in April This report identifies the economic impact of military spending and employment on multiple industries. It provides a foundation for research, a listing of the primary contractors in the region by dollar amount, and the sectors with the greatest received benefits from military spending. EMPLOYMENT OUTLOOK A survey of San Diego s military contractors show they vary greatly in size. Nearly a quarter of all contractors have less than 25 employees, however, 10% of firms have over 100 employees. This is significant because it shows that there are high numbers of small firms and a strong representation of large firms. As such, the median firm employs only seven people per location, but the average mean employment across all firms is over 31 workers per location. 60 percent of these firms reside within the limits of the City of San Diego. In order to probe more deeply into the workforce demographics of the defense contracting industry, respondents were asked a follow-up question about employees that spend at least half of their time on defense, homeland security, or military-related work (hereinafter referred to as defense workers). Similar to their reported overall employment, a majority of firms employ 25 or fewer defense workers (61%). However, as Figure 3 indicates half of the firms surveyed reported that 75 to 100 percent of their employees are defense workers. This suggests that many of these smaller firms in San Diego focus most if not all their attention to defense related work. 1 SDMAC, 2011 San Diego Military Economic Impact Study, April See Appendix A for a detailed review of the methodology employed in this report. 1

5 Figure 1: Military contractor employee size 1 to 24 employees 73.6% 25 to 99 employees 16.8% 100 and more employees 9.6% 0% 20% 40% 60% 80% 100% Figure 2: Defense worker size No defense workers 21.6% 1 to 24 defense workers 60.8% 25 to 99 defense workers 8.0% 100 or more defense workers 5.6% DK/NA 4.0% 0% 20% 40% 60% 80% 100% 2

6 Figure 3: Percent of employees that are defense workers 0 percent of employees 21.6% 1 to 5 percent of employees 0.0% 6 to 24 percent of employees 8.8% 25 to 49 percent of employees 5.6% 50 to 74 percent of employees 10.4% 75 to 100 percent of employees 49.6% DK/NA 4.0% 0% 20% 40% 60% 80% 100% It is important to note that the top ten firms by contract award in the region received over 90 percent of all the military prime contracts in the county. It is therefore necessary to include subcontractors in any review of this important cluster. The survey respondents include prime and subcontractors, as well as firms that may produce or provide goods and services that are not related directly to government contracts. Figure 4: Defense contractor status Prime contracts 36.0% Subcontracts 26.4% Both prime contracts and subcontracts 28.0% 8.8% 0.8% We do not have contracts directly with the military, homeland security, or DoD DK/NA 3

7 Military contractors are bullish about their short-term growth, with an overall 57 percent of firms expecting to add employees over the next 12 months while only 2 percent expect to shed jobs. In fact, employers anticipate 7.3 percent growth in the coming year. Figure 5: 12-month growth expectations (overall and by firm size) More 56.8% 58.3% 52.4% 57.6% Overall (n=125) 100 and more employees (n=12) 1.6% 25 to 99 employees (n=21) Less 1.1% 4.8% 1 to 24 employees (n=92) 40.8% Same number of employees 41.7% 42.9% 40.2% 0.8% DK/NA 1.1% 0% 20% 40% 60% 80% 100% 4

8 Figure 6: Overall 12-month growth rate 6,000 4, % Growth 5,175 0 Current employees Total expected 12 months from now 5

9 Interestingly, firms were slightly less likely to add defense-related employees (overall 40% of firms expect growth), with about the same growth rate over the next 12 months (7%). Almost a quarter of the firms that reported not currently having defense workers are expecting to add those workers into their employment ranks over the next 12 months. This suggests that these firms are expecting to increase the amount of defense related work within the next year. Figure 7: 12-month growth expectations for defense workers (overall and by firm size) More 0.8% 40.0% 42.9% 30.0% 50.0% 22.2% Overall (n=125) 100 or more defense workers (n=7) 25 to 99 defense workers (n=10) 1 to 24 defense workers (n=76) No defense workers (n=27) Less 10.0% Same number of employees 52.8% 57.1% 60.0% 48.7% 63.0% 6.4% DK/NA 1.3% 14.8% 0% 20% 40% 60% 80% 100% 6

10 Figure 8: Overall 12-month growth rate for defense workers 4,000 3, % Growth 3,512 0 Current defense workers Total expected 12 months from now 7

11 Firms were also asked about their use of non-permanent or temporary employees for the defense business. Overall 45 percent of firms reported not ever hiring temporary workers, while 15 percent do so regularly. Figure 9 indicates that bigger firms are more likely to us non-permanent and temporary workers for their defense related work. Figure 9: Non-permanent and temporary workforce (overall and by firm size) 80% 60% 40% 20% 0% Regularly Sometimes Rarely Never Overall (n=125) 15.2% 18.4% 21.6% 44.8% 100 and more employees (n=12) 25.0% 25.0% 33.3% 16.7% 1 to 24 employees (n=92) 15.2% 13.0% 20.7% 51.1% 25 to 99 employees (n=21) 9.5% 38.1% 19.0% 33.3% San Diego s military contractors work across multiple technologies, from IT to manufacturing, professional services to energy. The breadth of activity, can, however, be categorized by the primary functions of the businesses. Firms were asked to report whether they were engaged in production and manufacturing, services and support, or research and development (allowing them to select more than one response). The results show strength in all three areas. 66% of firms indicated that they provide services and support, 55% are engaged in R&D, and 28% reported producing goods for military or defense work. 8

12 OCCUPATIONAL FINDINGS OVERVIEW The staffing patterns of San Diego s defense contractor sector seem to be quite different from other sectors. Across the board, higher skilled occupations make up a greater percentage of the overall defense workforce, and employers have higher educational requirements and preferences. In fact, the concentration of higher-skilled occupations appears to be even higher than in other R&D related industries such as biotechnology and information technology. These trends are evident in the survey data. Employers were asked about the types of occupations for which they hire and their specific requirements and preferences for candidates for hire. The incidence of firms that hire in each of these categories show that, perhaps due to the formal bidding process and highly regulated legal and ethical obligations in connection with defense contracts, that entry-level sales and customer service positions are much less prevalent in defense than is typical in San Diego. When looking at the incidence of occupational hiring in each of three categories manufacturers (only), non-manufacturers, and firms that manufacture goods but also provide services or research it is clear that these trends are even more pronounced in firms that are not solely manufacturing goods. Figure 10: Occupations with Defense Firms that Manufacture Exclusively 100% 80% 60% 60.0% 48.6% 42.9% 40% 22.9% 20% 0% Project Managers Quality Control & Testing Technicians Sales Representative or Estimators Electrical Equipment Assemblers 9

13 Figure 11: Occupations with Defense Firms that Do Not Manufacture 60% 40% 34.4% 25.6% 24.4% 20% 0% Supervisors & Managers of Front-line Workers Marketing & Sales Positions Finance & Accounting Positions Figure 12: Occupations with Defense Firms that Both Manufacture and Provide Other Services 60% 40% 29.8% 26.4% 20% 15.2% 0% Scientific & Technical Support Positions Computer & Information Technology Support Positions Customer Service Positions SCIENTIFIC AND TECHNICAL SUPPORT PERSONNEL Accounting for 1,880 jobs, scientific and technical support personnel appear to be the bulk of the workforce for military contractors in San Diego. Similar to overall 12-month growth expectations, firms expect to add more of these workers (41%). However, the growth rate for these positions is a more optimistic 10.6% 10

14 Figure 10: 12-month growth expectations for scientific and technical support personnel Same number of employees 54.1% n=37 More 40.5% Less 2.7% DK/NA 2.7% Figure 11: 12-month growth rate for scientific and technical support personnel 3 1, % Growth Current scientific and technical support personnel Total expected 12 months from now Over half the firms providing data on scientific and technical support personnel reported a preference for applicants for these positions to have a bachelor s degree. Another 41 percent of the firms reported they preferred some sort of a graduate degree. 3 Conservative estimate removing outliers (one firm expecting to increase its scientific and technical support personnel by 40%- from 1,000 to 1,400 employees) 11

15 Figure 12: Preferred education level for scientific and technical support personnel 51.4% Master s or other graduate degree (M.A., M.S., MPA, MBA, Ph.D., J.D.) Bachelor s Degree (B.A., B.S.) Certificate from an accredited college Completion of high school or equivalent 40.5% 2.7% n=37 5.4% Given the need for highly skilled and highly educated workers in these positions, the finding of 35 percent of firms reporting great difficulty in finding qualified applicants for these defense specific positions is not surprising. Figure 13: Difficulty finding qualified scientific and technical support personnel n=37 Some difficulty 35.1% Great difficulty 35.1% No difficulty 27.0% DK/NA 2.7% 12

16 EMPLOYER NEEDS AND PREFERENCES Employers were asked about the importance of various attributes when considering hiring for their defense-related positions. Though all of the tested items are important to employers, it is clear that the most important are the ability to pass a background check and at least one year of work experience. Figure 14: Employer preferences for hiring defense workers 4 The ability to pass a criminal background check 78.4% 12.8% At least one year of work experience 68.8% 24.8% A degree specific to the position 48.8% 36.0% 14.4% The ability to obtain a security clearance 49.6% 28.0% 22.4% An industry recognized credential 37.6% 37.6% 23.2% 0% 20% 40% 60% 80% 100% Very important Somewhat important Not at all important DK/NA When asked about deficiencies of recent defense hires, firms reported a wide range of issues, but the most frequent were technical competence, technical writing ability, and communications skills. 4 Due to space constraints categories with frequencies less than 10 percent have been omitted from the chart. 13

17 CONCLUSIONS AND RECOMMENDATIONS The defense contracting industry appears to be a tale of two worlds, with production and support firms on one side and scientific, technical, and other research and development firms on the other. Understanding the differences is important to tailor specific recommendations to job seekers and the public workforce system. Specifically, the research conducted for this report suggests the following conclusions and recommendations: CONCLUSION #1: PRODUCTION AND SUPPORT OCCUPATIONS ARE NOT HIGHLY SPECIALIZED While there are some opportunities for support and production related occupations with defense contractors, these positions are not significantly different from non-defense related jobs. CONCLUSION #2: CLEAN CRIMINAL HISTORY AND AT LEAST ONE YEAR OF WORK EXPERIENCE ARE KEY TO DEFENSE EMPLOYERS Applicants should note that specific backgrounds are much more important to defense contractor employers, with 78.4% reporting that a clean history is very important and 68.8% reporting a year of work experience as very important. CONCLUSION #3: SAN DIEGO MILITARY CONTRACTORS HAVE HIGHLY SPECIALIZED SKILL NEEDS 55% of all firms reported working in R&D. These firms employ 1,880 workers in scientific and technical support fields, and nearly 92% reported a preference for workers with a bachelor s or advanced degree. CONCLUSION #4: A BACHELOR'S DEGREE OR HIGHER NEEDS TO BE IN YOUR FUTURE IF YOU WANT TO SUCEED IN THIS INDUSTRY CLUSTER For most of the occupations we evaluated a majority of employers indicated they expected qualified applicants to have at least a 4 year college degree. Even for those technician positions that may not typically require a bachelor's degree or higher, most of the positions above the technician on a career pathway are likely to require a 4 year degree or higher. RECOMMENDATION #1: WORKERS INTERESTED IN CAREERS WITH DEFENSE CONTRACTORS SHOULD PURSUE A FOUR-YEAR DEGREE. RECOMMENDATION #2: EDUCATION AND TRAINING PROVIDERS SHOULD RECOGNIZE THAT CLIENTS WITHOUT CLEAN CRIMINAL HISTORIES ARE NOT GOOD CANDIDATES FOR THE DEFENSE INDUSTRY RECOMMENDATION #3: DUE TO THE SIZE AND FOCUS OF THE DEFENSE INDUSTRY IN SAN DIEGO, POLICYMAKERS SHOULD SUPPORT THE SCIENTIFIC RESEARCH COMMUNITY TO FOSTER THIS IMPORTANT CLUSTER. 14

18 APPENDIX A: METHODOLOGY Data compiled for this report were drawn from both primary and secondary data sources. The table below provides a brief overview of the methodology utilized for the project. Table 1: Overview of Project Methodology Method Number of Participants Secondary Research of the Defense Contracting Sector Using Existing Data Sources Telephone Survey of Defense Contractors 125 Firms in the Defense Industry Completed a Telephone Survey Field Dates for Primary Telephone Survey: May 20 June 3, 2011 Research Survey Universe Known Universe of 115 firms Unknown Universe of 1,038 firms Survey Margin Error of The maximum margin of error for questions answered by all 125 respondents was +/- 8.28% at the 95% level of confidence. SECONDARY RESEARCH Drawing from the SDMAC 2011 San Diego Military Economic Impact Study, the following list of NAICS codes were used to determine likely defense contractor firms in the unknown universe for San Diego. NAICS 23 Construction NAICS Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing NAICS Electromedical and Electrotherapeutic Apparatus Manufacturing NAICS Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing NAICS Irradiation Apparatus Manufacturing NAICS Aircraft Manufacturing NAICS Aircraft Engine and Engine Parts Manufacturing NAICS Other Aircraft Parts and Auxiliary Equipment Manufacturing NAICS Guided Missile and Space Vehicle Manufacturing NAICS Ship Building and Repairing NAICS Engineering Services NAICS Custom Computer Programming Services NAICS Computer Systems Design Services NAICS Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) NAICS Research and Development in the Social Sciences and Humanities A-1

19 PRIMARY RESEARCH A quantitative telephone survey of 125 defense industry employers in San Diego. Survey Design Through an iterative process, BW Research worked closely with the San Diego Workforce Partnership to develop a survey instrument that met all the research objectives of the study. In developing the survey instrument, BW Research utilized techniques to overcome known biases in survey research and minimize potential sources of measurement error within the survey. Sampling Method Records obtained from the U.S. government s Central Contractor Registration website for all firms within San Diego county that are on record as having a federal contract. The list of firms was stratified based on sector and size. Surveys were conducted from a representative sampling of firms across those key variables. Data Collection Prior to beginning data collection, BW Research conducted interviewer training and also pre-tested the survey instrument to ensure that all the words and questions were easily understood by respondents. Telephone interviews were generally conducted from 9:00 am to 4:30 pm Monday through Friday. The data collection period was May 20 through June 3, A Note about Margin of Error and Analysis of Sub-Groups The overall margin of error for the survey, at the 95 percent level of confidence, is between +/ percent (depending on the distribution of each question) for questions answered by all 125 respondents. It is important to note that analysis of sub-groups (such as growth expectations by firm size) will have a margin of error greater than +/ percent, with the exact margin of error dependent on the number of respondents in each sub-group. A-2

20 APPENDIX B: TOPLINES San Diego Workforce Partnership June 2011 Toplines Military Contractor Survey (n=125) Introduction Hello, my name is. May I please speak to a Human Resources Manager or person responsible for staffing at [organization]? Hello, my name is and I m calling on behalf of the San Diego Workforce Partnership who would value your participation in a brief survey about the region s workforce. (If needed): The survey should take approximately ten minutes of your time. By answering this survey, you can help us prepare the present and future labor pool based on your needs. (If needed): The surveys are being conducted by BW Research, an independent research organization, in partnership with Green LMI Consulting. (If needed): Your individual responses will not be published; only summary information will be used in reporting the survey results. PLEASE NOTE: TRADITIONAL ROUNDING RULES APPLIED NOT ALL PERCENTAGES WILL EQUAL EXACTLY 100% B-1

21 Screener Questions QA Do you have an office with employees in San Diego County, California? If yes, how many? 88% Yes, just one San Diego location 12% Yes, more than one San Diego location QB Does your firm work in the defense industry or provide goods and/or services to the United States Department of Defense, Homeland Security, or any branches of the Armed Forces? 82% Yes 18% No [Ask QC] [If QB=No Ask QC, Otherwise Skip to QD] QC Does your firm provide products or services to firms that have contracts with the Department of Defense, Homeland Security, or that sell directly to the military? (n=23) 100% Yes B-2

22 QD For this survey, please only answer for your current San Diego business location. If your firm has more than one location, please do not include their information. What is the zip code of your current location? (If needed: This is the location where you are physically located). Cities based off San Diego County zip code provided by firms. 60% San Diego 5% Vista 4% Carlsbad 4% Poway 3% Escondido 3% Oceanside 2% Chula Vista 2% La Jolla 2% National City 2% Coronado 2% El Cajon 2% Fallbrook 2% San Marcos 2% Santee 1% Cardiff By The Sea 1% Del Mar 1% Julian 1% La Mesa 1% Lakeside 1% Ramona 1% Santa Ysabel B-3

23 Section 1 Organization Related Questions Q1 For this survey we will just be asking about the employees that work from or directly report to your current location. Including all full-time and part-time employees, how many permanent employees work at or from your location? Total number of full-time and part-time permanent employees Mean Conservative Mean 5 Median 10, % 5 or less employees 16% 6 to 10 employees 11% 11 to 24 employees 11% 25 to 49 employees 6% 50 to 99 employees 4% 100 to 249 employees 2% 250 to 499 employees 3% 500 or more employees 5 Three firms removed; one reporting 4,600 employees, one reporting 1,000 employees, and one reporting 800 employees. B-4

24 Q2 If you currently have [TAKE Q1 #] full-time and part-time permanent employees at your location, how many more or less employees do you expect to have at your location 12 months from now? 57% More 2% Less 41% Same number of employees 1% DK/NA Expected Employment in 12 months (Calculated by only examining employers with both current and projected data) Current 12 months n Mean Median Total Employees 10,191 11,694 New Employees 1,503 % Growth 14.7% Conservative Statistics Expected Employment in 12 months (Three firms removed one reporting 40% growth, one reporting 25% growth and one reporting 20% growth) Current 12 months n Mean Median Total Employees 4,821 5,175 New Employees 354 % Growth 7.3% B-5

25 Q3 If you currently have [TAKE Q1 #] full-time and part-time permanent employees that work at or from your business location, how many of these workers spend at least half of their time on defense, homeland security, or military-related work? Total permanent employees Permanent employees who spend 50% of time on defense work n Mean Median Total Permanent Employees % Permanent employees who spend 50% of time on defense work 9,583 8,284 86% 22% No defense employees 47% 5 or less defense employees 8% 6 to 10 defense employees 6% 11 to 24 defense employees 5% 25 to 49 defense employees 3% 50 to 99 defense employees 2% 100 to 249 defense employees 2% 250 to 499 defense employees 2% 500 or more defense employees 4% DK/NA 21% 0 percent of employees 9% 6 to 24 percent of employees 6% 25 to 49 percent of employees 11% 50 to 74 percent of employees 49% 75 to 100 percent of employees 4% DK/NA B-6

26 Q4 If you currently have [TAKE Q3 #] full-time and part-time permanent employees at or from your location that spend at least half of their time on defense, homeland security, or military-related work, how many more or less permanent employees do you expect to have working on defense, homeland security, and military-related work from your location 12 months from now? 40% More 1% Less 53% Same number of employees 6% DK/NA Expected Employment of defense workers in 12 months (Calculated by only examing employers with both current and projected data) Current 12 months n Mean Median Total Employees 8,281 9,511 New Employees 1,230 % Growth 14.9% Conservative Statistics Expected Employment of defense workers in 12 months (Two firms removed one reporting 45% growth and one reporting 20% growth) Current 12 months n Mean Median Total Employees 3,281 3,512 New Employees 231 % Growth 7.0% B-7

27 Q5 Next, I would like to ask about just those workers at your current location that are not permanent workers, they are either temporary or contract and working on a project by project basis or for a certain period of time. How often does your location hire non-permanent workers for work related to defense, homeland security, or the military, either on a temporary or contract basis that can work on a project by project basis? 15% Regularly 18% Sometimes 22% Rarely 45% Never B-8

28 Section 2 Industry, Technology and Work profile Now I would like to ask about the industries that are most important to your firm. Q6 What industry or industries best describe the work that your firm is most connected to? (DO NOT READ, ALLOW MORE THAN ONE RESPONSE) (Frequencies may equal more than 100%) 28% Professional and technical services 23% Defense 13% Technology or information technology 10% Aerospace 8% Software 6% Ship building/ ship repair 6% Construction 4% Communications, including mobile devices 4% Manufacturing 4% Government 2% Advanced manufacturing 2% Networking 1% Hardware 1% Utility or energy 10% Other Q7 Next I would like to ask a few questions about the products and/or services that your firm provides as they relate to the department of defense, homeland security, and goods and/or services developed and sold to the military. Does your firm produce or manufacture products or are you in the process of developing products that are sold to the department of defense, homeland security, or the military? 28% Yes 70% No 2% DK/NA B-9

29 Q8 Does your firm provide services or are you in the process of developing services that are sold to the department of defense, homeland security, or the military? 66% Yes 32% No 2% DK/NA Q9 Does your firm support the development of products or services OR provide research and/or technology for products or services that are sold to the department of defense, homeland security, or the military? 55% Yes 40% No 5% DK/NA Q10 Which of the following types of defense or homeland security contracts has your location been involved in? 9% Prime contracts 28% Subcontracts 36% Both prime contracts and subcontracts 26% We do not have contracts directly with the military, homeland security, or DoD 1% DK/NA B-10

30 Section 3 Workforce Development & Training Needs Q11 Now I would like you to think of your employees that spend at least half of their time on defense, homeland security, or military-related work. Please tell me how important the following items are when considering candidates for those positions. Very important Somewhat important Not at all important DK/NA A degree specific to the position 49% 36% 14% 1% An industry recognized credential 38% 38% 23% 2% At least one year of work experience 69% 25% 5% 2% The ability to obtain a security clearance 50% 28% 22% 0% The ability to pass a criminal background check 78% 13% 7% 2% Next, I would like to ask about general skills among recent hires that spend at least half of their time on defense and military-related work. Q12 Thinking in general about recent entry-level or mid-level hires at your organization, which general skills would you say that recent hires tend to be most deficient in? [DO NOT READ - ACCEPT FIRST TWO RESPONSES] (IF NEEDED: For this question, I would just like your general perception about skill deficiencies for recent hires across all occupations that spend at least half of their time on defense, homeland security, and military-related work) 34% Technical competence specific to the position 10% Technical writing skills 7% Interpersonal communication skills 2% Creative problem-solving skills 1% Ability to work with different groups or departments 2% Depends on occupation 14% Have not hired entry or mid-level recently 5% Other 28% DK/NA B-11

31 Section 4 Occupational Assessment Occupation-Related Questions Now, I m going to ask you about specific occupations within your organization related to the work you do for with defense, homeland security, and the military. The occupational titles we are using may differ from the specific position titles used in your organization. For these questions, I would like you to try to equate your organization s specific position titles with the more general ones we will use here. Please only assign one occupation to each employee. If they fall into more than one category, please assign them to the occupation in which they devote more of their time. Q13 Please tell me if your organization employs, from your location, individuals in positions matching the following general occupational titles: Here s the (first/next) one: (READ ITEM, THEN ASK): Do you have employees who fit this occupational description that work at or from your location, who spend at least half of their time on defense, homeland security, or military-related work? (1 = Yes, 2 = No, 3 =DK/NA) [Manufacturing occupations asked if Q7=YES (n=35)] [Non-Manufacturing occupations asked if Q7=NO (n=90)] Yes No DK/NA Electrical equipment assemblers (manufacturing) 23% 74% 3% Project managers (manufacturing) 60% 40% 0% Sales representatives or estimators (manufacturing) 43% 57% 0% Quality control and testing technicians (manufacturing) 49% 51% 0% Marketing and sales positions (non-manufacturing) 26% 73% 1% Supervisors and managers of front-line workers (non-manufacturing) 34% 66% 0% Finance and accounting positions (non-manufacturing) 24% 76% 0% Customer service positions (combined manu and non-manu) 15% 85% 0% Computer and information technology support positions (combined manu and non-manu) 26% 74% 0% Scientific and technical support personnel (combined manu and non-manu) 30% 70% 1% B-12

32 Q14 As I read each of the following occupations, please tell me how many individuals you have working at or from your location that are currently employed either full-time or parttime in this occupation and spend at least half of their time on defense, homeland security, or military-related work. *** Occupations with a sample size less than 10 have been omitted from these analysis*** Project managers (manufacturing) Sales representatives or estimators (manufacturing) Quality control and testing technicians (manufacturing) n Mean Conservative Mean Median Sum Marketing and sales positions (non-manufacturing) Supervisors and managers of front-line workers (non-manufacturing) Finance and accounting positions (non-manufacturing) n Mean Conservative Mean Median Sum n Mean Conservative Mean Median Sum Computer and information technology support positions (combined manu and non-manu) Scientific and technical support personnel (combined manu and non-manu) ,880 B-13

33 Q15 If you currently have [TAKE Q14 #] [INSERT OCCUPATION TITLE] at your location, how many more or less [INSERT OCCUPATION TITLE] do you expect to have at your location 12 months from now that will spend at least half of their time on defense, homeland security, or military-related work? *** Occupations with a sample size less than 10 have been omitted from these analysis*** More Less Same number of employees DK/NA Project managers (manufacturing) [n=14] 21% 0% 71% 7% Sales representatives or estimators (manufacturing) [n=10] 10% 0% 90% 0% Quality control and testing technicians (manufacturing) [n=17] 41% 0% 59% 0% Marketing and sales positions (non-manufacturing) [n=17] 24% 0% 76% 0% Supervisors and managers of front-line workers (non-manufacturing) [n=26] 23% 0% 69% 8% Finance and accounting positions (non-manufacturing) [n=22] 9% 0% 86% 5% Computer and information technology support positions (combined manu and non-manu) [n=29] 38% 0% 59% 3% Scientific and technical support personnel (combined manu and non-manu) [n=37] 41% 3% 54% 3% B-14

34 Q15 continued ***Small sample size among many of the occupations caution generalizing results*** *** Occupations with a sample size less than 10 have been omitted from these growth analysis*** Sales representatives or Project managers estimators (manufacturing) (manufacturing) Quality control and testing technicians (manufacturing) Current Current Current 12-months Current 12-months n Mean Median Total employees New Employees % Growth 12.0% 4.2% 4.2% Marketing and sales positions (non-manufacturing) Supervisors and managers of front-line workers (non-manufacturing) Finance and accounting positions (non-manufacturing) Current 12-months Current 12-months n Mean Median Total employees New Employees % Growth 30.0% 8.9% 1.5% Computer and information technology support positions (combined manu and non-manu) Scientific and technical support personnel (combined manu and non-manu) Current 12-months Current 12-months n Mean Median Total employees ,880 2,373 New Employees % Growth 15.6% 26.2% 6 6 Conservative growth estimate for this occupation is 10.6% (one firm removed expecting to increase its scientific and technical support personnel by 40% in the next 12 months). B-15

35 Q16 For the same list of occupations, I m interested in the level of difficulty your location has in finding applicants who meet the organization s hiring standards. As I read each occupation, please tell me whether your location has no difficulty, some difficulty or great difficulty finding qualified applicants for positions that will spend at least half of their time on defense, homeland security, or military-related work. ***Small sample size among many of the occupations caution generalizing results*** Project managers (manufacturing) [n=14] Sales representatives or estimators (manufacturing) [n=10] Quality control and testing technicians (manufacturing) [n=17] Marketing and sales positions (non-manufacturing) [n=17] Supervisors and managers of front-line workers (non-manufacturing) [n=26] Finance and accounting positions (non-manufacturing) [n=22] Computer and information technology support positions (combined manu and non-manu) [n=29] Scientific and technical support personnel (combined manu and non-manu) [n=37] No Difficulty Some Difficulty Great Difficulty DK/NA 43% 14% 29% 14% 30% 40% 20% 10% 12% 65% 24% 0% 59% 35% 0% 6% 58% 38% 0% 4% 38% 21% 38% 4% 45% 48% 3% 3% 27% 35% 35% 3% B-16

36 Now, for the same list of occupations, I d like to know the typical education requirements for successful applicants within each occupation who will spend at least half of their time on defense, homeland security, or military-related work. The categories are (READ OPTIONS). As I read each occupation, please indicate the typical education requirement for that occupation. Q17 1 Completion of high school or equivalent 2 Certificate from an accredited college 3 Associate s Degree from accredited college 4 Bachelor s Degree (B.A., B.S.) 5 Master s or other graduate degree (M.A., M.S., MPA, MBA, Ph.D., J.D.) 6 (DON T READ) DK/NA *** Occupations with a sample size less than 10 have been omitted from these analysis*** Project managers (manufacturing) [n=14] Sales representatives or estimators (manufacturing) [n=10] Quality control and testing technicians (manufacturing) [n=17] Marketing and sales positions (non-manufacturing) [n=17] Supervisors and managers of front-line workers (non-manufacturing) [n=26] Finance and accounting positions (non-manufacturing) [n=22] Computer and information technology support positions (combined manu and non-manu) [n=29] Scientific and technical support personnel (combined manu and non-manu) [n=37] % 0% 0% 64% 29% 0% 20% 0% 30% 40% 0% 10% 29% 18 % 18% 29% 6% 0% 6% 0% 12% 76% 6% 0% 23% 0% 12% 38% 19% 8% 0% 5% 0% 73% 9% 14% 10% 14 % 7% 62% 0% 7% 5% 3% 0% 51% 41% 0% B-17

37 Q18 Are there any other occupations that spend at least half of their time on defense, homeland security or military-related work that are important for your firm that we have not already talked about? If yes, what are they? (n=89) 32% Yes (coding of open ended responses still in process) 69% No 5% DK/NA Yes response coding (n=28) 29% Service technicians 18% Engineers 14% IT or technology related positions 11% Administrative 11% Sales positions 7% Military specialists 7% Financial positions 4% Manager Q19 Lastly, please describe the technologies or areas of expertise that you focus on in the products or services you directly or indirectly provide for the military or department of defense? [DO NOT READ, ALLOW MULTIPLE RESPONSE] (n=125) 18% Engineering services 5% Communications equipment manufacturing 5% Information technology Research and development in the physical, engineering, and life sciences 4% 2% Equipment maintenance and inspection 2% Computer systems design 2% Not willing to discuss 2% Computer and related product manufacturing 2% Electronic and optic manufacturing 1% Custom computer programming 71% Other professional and technical services 9% Other product manufacturing B-18

38 Section 5 Permission Questions Q20 Are you interested in receiving future information about the findings of this research? 41% Yes 59% No Q21 Would you be willing to be contacted by researchers and/or educators who are developing new curricula for students interested in working in defense and related industries and seeking input from industry representatives? 40% Yes 60% No B-19

39 Since it sometimes becomes necessary for the project manager to call back and confirm responses to certain questions, I would like to verify your contact information. First and Last Name Position Phone Company Name Company Address (including City, State, Zip) Those are all the questions I have. Thank you very much for your time. Date of Interview Time of Interview Name of Interviewer Employer Type Primary SIC B-20