[Senate Hearing 115-152]
[From the U.S. Government Publishing Office]
S. Hrg. 115-152
CLOSING THE SKILLS GAP
AND BOOSTING U.S. COMPETITIVENESS
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED FIFTEENTH CONGRESS
FIRST SESSION
__________
MARCH 29, 2017
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED FIFTEENTH CONGRESS
FIRST SESSION
JOHN THUNE, South Dakota, Chairman
ROGER F. WICKER, Mississippi BILL NELSON, Florida, Ranking
ROY BLUNT, Missouri MARIA CANTWELL, Washington
TED CRUZ, Texas AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska EDWARD MARKEY, Massachusetts
DEAN HELLER, Nevada CORY BOOKER, New Jersey
JAMES INHOFE, Oklahoma TOM UDALL, New Mexico
MIKE LEE, Utah GARY PETERS, Michigan
RON JOHNSON, Wisconsin TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia TAMMY DUCKWORTH, Illinois
CORY GARDNER, Colorado MAGGIE HASSAN, New Hampshire
TODD YOUNG, Indiana CATHERINE CORTEZ MASTO, Nevada
Nick Rossi, Staff Director
Adrian Arnakis, Deputy Staff Director
Jason Van Beek, General Counsel
Kim Lipsky, Democratic Staff Director
Chris Day, Democratic Deputy Staff Director
Renae Black, Senior Counsel
C O N T E N T S
----------
Page
Hearing held on March 29, 2017................................... 1
Statement of Senator Thune....................................... 1
Statement of Senator Nelson...................................... 2
Statement of Senator Baldwin..................................... 43
Statement of Senator Capito...................................... 45
Statement of Senator Klobuchar................................... 47
Statement of Senator Cortez Masto................................ 49
Statement of Senator Markey...................................... 50
Statement of Senator Inhofe...................................... 52
Statement of Senator Duckworth................................... 54
Statement of Senator Cantwell.................................... 56
Statement of Senator Blumenthal.................................. 57
Statement of Senator Johnson..................................... 59
Witnesses
John Ratzenberger, Actor, Director, and Founder, American Museum
of Manufacturing............................................... 4
Prepared statement........................................... 6
Rory DeJohn, Senior Vice President, Turner Construction Company.. 7
Prepared statement........................................... 9
Colonel Michael Cartney, (USAF, Retired); President, Lake Area
Technical Institute............................................ 11
Prepared statement........................................... 13
John J. Neely III, Vice President, Law and Public Affairs,
Gulfstream Aerospace (A General Dynamics Company).............. 28
Prepared statement........................................... 29
Judith Marks, Chief Executive Officer, Siemens USA............... 34
Prepared statement........................................... 36
Appendix
Response to written questions submitted to Rory DeJohn by:
Hon. Dean Heller............................................. 65
Hon. Maggie Hassan........................................... 65
Hon. Catherine Cortez Masto.................................. 66
Response to written questions submitted to Colonel Michael
Cartney by:
Hon. Dean Heller............................................. 66
Hon. Todd Young.............................................. 67
Hon. Tammy Baldwin........................................... 69
Hon. Maggie Hassan........................................... 72
Hon. Catherine Cortez Masto.................................. 74
Response to written questions submitted to John J. Neely III by:
Hon. Tammy Baldwin........................................... 76
Hon. Maggie Hassan........................................... 76
Hon. Catherine Cortez Masto.................................. 77
Response to written questions submitted to Judith Marks by:
Hon. Tammy Baldwin........................................... 77
Hon. Maggie Hassan........................................... 77
Hon. Catherine Cortez Masto.................................. 80
CLOSING THE SKILLS GAP
AND BOOSTING U.S. COMPETITIVENESS
----------
WEDNESDAY, MARCH 29, 2017
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The committee met, pursuant to notice, at 10:05 a.m. in
room SD-G50, Dirksen Senate Office Building, Hon. John Thune,
Chairman of the Committee, presiding.
Present: Senators Thune [presiding], Fischer, Moran,
Heller, Inhofe, Johnson, Capito, Gardner, Young, Nelson,
Cantwell, Klobuchar, Blumenthal, Markey, Booker, Peters,
Baldwin, Duckworth, Hassan, and Cortez Masto.
OPENING STATEMENT OF HON. JOHN THUNE,
U.S. SENATOR FROM SOUTH DAKOTA
The Chairman. Well, good morning. We are here today to
discuss a very important issue for the U.S. economy, and that's
the technical skills gap among our workforce.
According to multiple surveys, employers are actively
looking for skilled workers to fill available, well-paying jobs
and they simply can't find them. As we will hear in detail from
our witnesses today, there are numerous reasons for this,
including a decline of technical education programs in public
high schools; an increase in the number of baby boomers
approaching retirement; a negative perception of the
manufacturing sector among some potential employees, especially
among those in younger generations; and an increased emphasis
on 4-year college enrollment to the possible detriment of more
technical training.
These factors and others are creating a skills gap that is
most pronounced in industries requiring a labor force with
technical skills, like manufacturing, construction, and the
energy sector. In South Dakota, having a skill and being able
to work with your hands is common for most folks. But that
mentality was formed from necessity. In rural America,
oftentimes, you need to be able to fix things for yourself when
they break.
Over time, this need has led to a natural respect for the
men and women who focus their lives on those trades. In order
for our country to remain competitive, we need to promote this
perspective and work together to highlight the importance of
the skilled trades to the very foundation and strength of our
economy.
This hearing is intended to explore the causes of the
skills gap but, just as importantly, highlight efforts by
advocates and industry to address it. John Ratzenberger has put
smiles on the faces of children and adults alike from his work
on Cheers and numerous animated Disney Pixar movies. But today,
he is here because of his passionate belief that America's
greatness is connected to our ability to manufacture and his
recognition that we need skilled workers.
Getting young people interested in working with their hands
and familiar with tools from a young age is an important first
step. A focus on technical education is part of the solution.
It is no surprise to me that a South Dakota institute, the Lake
Area Technical Institute, is leading the pack in training
students to fill these skilled jobs.
Lake Area Tech is the winner of the 2017 Aspen Prize for
Community College Excellence, the Nation's foremost recognition
of high achievement and improvement in America's community
colleges. An overwhelming 99 percent of Lake Area Tech's
graduates are employed after graduation. And once they enter
the workforce, these graduates earn an average of 27 percent
more than other new hires in the region.
It is wonderful to see the work that Lake Area Tech and
other community colleges and career and technical education
programs are doing to train students for jobs that are
available and lucrative. I look forward to hearing more about
Lake Area Tech's programs in Colonel Cartney's testimony.
In addition to education pathways, U.S. employers are
leading the charge in addressing this issue. Many companies
have started training programs or fostered partnerships with
local community colleges to try to improve their workforce
pipeline and mitigate the impact of the skills gap.
This engagement is not limited to college partnerships.
Many companies looking for future employees are finding
innovative ways to engage K-12 students in STEM education. I
look forward to hearing from the panel on what is being done on
this front, what types of programs or models are working well,
and what challenges remain.
Finally, it should be noted that the Federal Government
partners with state and local communities and organizations to
fund education, apprenticeship, workforce, and manufacturing-
related programs, including at the Department of Commerce and
the Federal Aviation Administration. The issues we will explore
today affect industries and agencies that span the Committee's
broad jurisdiction.
Getting Americans back to work and in good-paying jobs is a
key priority of the Committee and will remain an area of focus
as we approach the legislative agenda ahead. I want to thank
our panel of witnesses for being with us today and for taking
part in that effort, and I look forward to hearing your
testimony.
Senator Nelson?
STATEMENT OF HON. BILL NELSON,
U.S. SENATOR FROM FLORIDA
Senator Nelson. Thank you, Mr. Chairman.
During the height of the recession, when unemployment was
hovering around 10 percent, we noticed something surprising,
that the unemployment rate for recently separated veterans was
consistently higher than the national average. This was
unexpected, because folks coming out of the military are highly
trained for technical jobs--air traffic controllers, combat
medics, airplane mechanics--and technically trained
professionals at the time were in high demand.
What was happening was that these veterans were receiving
world-class training, but not the right civilian certification
or credentials to be eligible for the same job that they once
had in the military. There was a small gap in their education.
So we fixed it. We introduced legislation, the Veterans Skills
to Jobs Act, and the Department of Defense now helps service
members get these credentials and certifications so that they
are qualified to get a job as soon as they leave the military.
An abundance of technical jobs presents a big opportunity
for civilians as well, but the skills gap for them is even
wider. Companies today are having a hard time finding qualified
job applicants for technical positions. As many as 13 million
U.S. jobs require technical or STEM skills, but not a 4-year
college degree.
On one hand, more Americans than ever are attending
college, and many are graduating with crippling student loans.
On the other hand, companies are desperate to fill well-paying
technical jobs that require some training, but less than a
bachelor's degree. It is clear there is a mismatch between our
education system and industry's workforce needs.
This skills gap in the workforce affects the bottom line of
big and small companies. On the Space Coast of Florida, small
and large companies alike are working with community colleges
to build a pipeline of technically trained employees so workers
can hit the ground running on the very first day. These
positions aren't what we normally think of as blue-collar.
These folks are helping to build and launch NASA's new Space
Launch System, the largest rocket ever built. Siemens, whose
CEO is here, has similarly implemented apprenticeship programs
across the country for machinists, welders, and other skilled
positions.
Aggravating this problem is the stigma about blue-collar
jobs. High school students choosing between university or
technical training need to know that many manufacturing workers
are well paid and highly sought after. We have to do a better
job of changing attitudes when it comes to the perception of
technical education and manufacturing jobs.
The bottom line here is that we--educators, industry, and
all levels of government--must do everything we can to better
prepare our workers for the job market of today and tomorrow.
Failure, we cannot contemplate. We have to expand job
opportunities for American workers and make sure that we have
the skilled labor that we need.
Our witnesses, as you have already indicated, Mr. Chairman,
are leaders in industry and workforce training, and I look
forward to hearing them.
Thank you.
The Chairman. Thank you, Senator Nelson.
We'll turn to our panel now. We'll start on my left and
your right. As I mentioned, John Ratzenberger is a carpenter,
actor, director, and the founder of the American Museum of
Manufacturing; Mr. Rory DeJohn is a Senior Vice President at
the Turner Construction Company; Colonel Michael Cartney, who
is retired from the U.S. Air Force, is the President of the
Lake Area Technical Institute in Watertown, South Dakota; Mr.
Jay Neely is the Vice President of Law and Public Affairs at
Gulfstream Aerospace; and Ms. Judith Marks is the Chief
Executive Officer at Siemens USA.
So a great panel. We're delighted to have you here. We look
forward to hearing from you. If you could confine your oral
remarks to as close to 5 minutes as possible, we will keep the
record open to include anything else that you want to have
entered into the record, as that will maximize the opportunity
for members of the Committee to ask questions.
So we'll start with Mr. Ratzenberger and proceed across the
panel from there.
STATEMENT OF JOHN RATZENBERGER, ACTOR, DIRECTOR, AND FOUNDER,
AMERICAN MUSEUM OF MANUFACTURING
Mr. Ratzenberger. Thank you, Senator, and thank you for
your interest in the problem that we're facing. I was a
journeyman carpenter. I actually helped build the stage at
Woodstock, so you can blame all the mess on me.
[Laughter.]
Mr. Ratzenberger. This great country of ours, this land we
call the United States of America, was founded and nurtured on
two basic guiding principles: freedom and the ability to use
that freedom to build the finest civilization yet seen on
Earth. We built this nation guided by our imaginations and the
skills we learned from our elders.
We cut our own timber from saws we made ourselves from the
ore we mined using tools that we machined and honed on machines
that we built from scratch with our own hands. We drew,
measured, and shaped the tools we needed to build our homes,
the villages, towns, and cities in which we lived.
We traveled from place to place in vehicles we built and
maintained ourselves to harness the pulling power of the
livestock given to our use and care. We used our hands to build
the barns, fences, and corrals that kept our animals protected
so that we could feed our families with food we grew ourselves
in fields plowed with more tools that we designed and proudly
crafted.
We were always a nation of builders, tinkerers, and
craftsmen that met each and every task and challenge with
hands-on skills that were passed from generation to generation.
We built our own ships that gave birth to the United States
Navy, the same ships that fought the Barbary pirates off the
coast of North Africa when Thomas Jefferson was president.
We used the same time honored skills to construct the
battleships and landing craft that were necessary for our
victories on D-Day as we pushed the Nazi nightmare back and
extinguished the flame of evil so that our children could live
in peace. We made every one of the weapons carried by our brave
men and women throughout our history to protect the place that
we call home.
With our own hands, we designed and constructed a rocket
ship that landed us on the Moon and launched the satellites
that transmit our cell phone signals from one place to the
next. We used our hands to construct medical equipment that has
saved millions of lives worldwide. Make no mistake. We are the
peacekeepers of the world because of our manufacturing might.
Manufacturing is to America what spinach is to Popeye.
While future generations might have to explain that
analogy, we in the year 2017 understand that without tinkerers,
builders, and manufacturing throughout the land, we are
rendered spineless and helpless. Manufacturing is the backbone
of Western Civilization. Everything we do every single day is
reliant first on someone's ability to not only put a nut and a
bolt together, but to make that nut and bolt in the first
place.
I have always known these truths to be self-evident because
I grew up in the once mighty industrial town of Bridgeport,
Connecticut, surrounded by people who knew how to design,
build, fashion, make, repair, and maintain anything you wanted.
My uncles proudly boasted of their ability to hone a piece of
metal down to one-five thousandths of an inch as though the
fate of Western Civilization depended on it. As a 10-year-old,
I thought it was funny.
But as I got older and a tad more sophisticated, I realized
that my uncles were absolutely right. The fate of Western
civilization rests entirely on our ability to make things. The
world would get along just fine without actors, reality stars,
musicians, and sports celebrities. Our loved ones would be sad,
but the world would continue to hum along seamlessly.
Think, however, what would happen if all the skilled trade
people from carpenters to plumbers to farmers and truck drivers
decided not to show up for work tomorrow. We, the entire
nation, would instantly grind to a halt, causing problems that
would take generations to overcome. So why, then, have we
stopped teaching our children the joys of crafting something
out of nothing?
About 15 years ago, while visiting a number of factories
and filming the different ways companies make things for my TV
show, ``John Ratzenberger's Made in America,'' I realized that
there are hardly any workers under the age of 40 in any of the
facilities. After talking with dozens of CEOs and plant foremen
in every state, I was made aware of the fact that, nationwide,
the manual arts, that is, wood shop, metal shop, auto repair
shop, even home economics, were taken out of the middle and
high school curriculums about 35 years ago. Not only did that
result in a dropout rate back then of 30 percent instantly, but
left us with a skilled essential workforce whose average age
today is 58 years old.
There are close to a million jobs available right now in
small businesses around the country that rely on people with
mechanical common-sense skills that we stopped offering in our
public schools two generations ago. The most repeated complaint
today from potential employers is that it's impossible to train
someone for any of the jobs available when they graduate from
high school everywhere without the ability to even read inches
and fractions from a simple ruler.
The big worrisome question then is this: How do we
reinstate the necessary programs in our schools to give our
children a familiarity of the tools that built and maintained
our civilization and way of life? If the average age of the
people that keep our Nation and the nation's infrastructure
working is 58 years old, then how long do we have before it all
stops?
I also submit that we do away with the term, blue-collar
worker, and replace it with essential worker, because that's
exactly what they are. Once they're all retired, then no more
ships, no more buildings, trains, planes, or automobiles, no
more tractors, no more farms, no more food, unless we grow it
ourselves in fields we plow with tools we've made with our own
hands.
That's the way it has always been, and if we someday want
to explore the universe, cure disease, and marvel at what
awaits us at the ocean's depths, then we'd better get busy
introducing our youngsters to the vital art of using tools and
the joy of self-reliance.
Thank you.
[The prepared statement of Mr. Ratzenberger follows:]
Prepared Statement of John Ratzenberger, Actor, Director, and Founder,
American Museum of Manufacturing
This great country of ours, this land we call the United States of
America was founded and nurtured on 2 basic guiding principles: Freedom
and the Ability to use that freedom to build the finest civilization
yet seen on earth.
We built this Nation guided by our imaginations and the skills we
learned from our elders. We cut our own timber with saws we made
ourselves from the ore we mined using tools that we machined and honed
on machines that we built from scratch with our own hands. We drew,
measured and shaped the tools we needed to build our homes and the
villages towns and cities in which we lived. We travelled from place to
place in vehicles we built and maintained ourselves to harness the
pulling power of the livestock given to our use and care. We used our
own hands to build the barns, fences, and corrals that kept our animals
protected so that we could feed our families with food we grew
ourselves in fields plowed with more tools that we designed and proudly
crafted.
We were always a nation of builders, tinkerers and craftsman that
met each and every task and challenge with hands-on skills that were
passed from generation to generation. We built our own ships that gave
birth to the United States Navy. The same ships that fought the Barbary
pirates off the coast of North Africa when Thomas Jefferson was
President. We used the same time honored skills to construct the
battleships and landing craft that were necessary for our victories on
D-Day as we pushed the Nazi nightmare back and extinguished the flame
of evil so that our children could live in peace. We made every one of
the weapons carried by our brave men and women throughout our history
to protect the place we call home.
With our own hands, we designed and constructed a rocket ship that
landed us on the moon and launched the satellites that transmit our
cell phone signals from one place to the next. We used our hands to
construct medical equipment that have saved millions of lives
worldwide. Make no mistake, we are the peacekeepers of the world
because of our manufacturing might. Manufacturing is to America what
spinach is to Popeye.
While future generations may have to explain that analogy, we in
the year 2016 understand that without tinkerers, builders, and
manufacturing throughout the land, we are rendered spineless and
helpless. Manufacturing is the backbone of Western Civilization.
Everything we do every single day is reliant first on someone's ability
to not only put a nut and a bolt together but to make that nut and that
bolt in the first place. I have always known these truths to be self
evident because I grew up in the once mighty industrial town of
Bridgeport, Connecticut, surrounded by people who knew how to design,
make, build, fashion, repair and maintain anything you wanted. My
uncles proudly boasted about their ability to hone a piece of metal
down to 1/5000th of an inch tolerance as though the fate of western
civilization rested on it. As a ten year old, I thought it was funny
but as I got older and a tad more sophisticated, I realized that my
uncles were right. The fate of Western 2 Civilization rests entirely on
our ability to make things. The world would get along just fine without
actors, reality stars, musicians and sports celebrities. Our loved ones
would be sad but the world would continue to hum along seamlessly.
Think, however, what would happen if all the skilled trades people from
carpenters and plumbers to farmers and truck drivers decided not to
show up for work tomorrow. We, the entire nation, would instantly grind
to a halt causing problems that would take generations to overcome.
So why then have we stopped teaching our children the joys of
crafting something out of nothing? About fifteen years ago while
visiting a number of factories and filming the different ways companies
make things for my TV show ``John Ratzenberger's Made in America'', I
realized that there were hardly any workers under the age of forty in
any of the facilities. After talking with dozens of CEOs and plant
foremen in every state, I was made aware of the fact that nationwide,
the manual arts, that is: wood shop, metal shop, auto repair shop and
even home economics were taken out of the middle and high school
curriculums about 35 years ago. Not only did that result in a dropout
rate back then of 30 percent instantly but it left us with a skilled
essential workforce whose average age today is 58 years old.
There are close to a million jobs available right now in small
businesses around the country that rely on people with mechanical
common sense skills that we've stopped offering in our public schools 2
generations ago. The most repeated complaint today from potential
employers is that it's impossible to train someone for any of the jobs
available when they graduate from high schools everywhere without the
ability to even read inches and fractions from a simple ruler.
The big worrisome question then is this . . . How do we reinstate
the necessary programs in our schools to give our children a
familiarity of the tools that built and maintain our civilization and
way of life? If the average age of the people that keep our Nation and
the Nation's infrastructure working is 58 years old then how long do we
have before it all stops?
I also submit that we do away with the term ``blue collar worker''
and replace it with ``essential worker'' because that's exactly what
they are. Once they are all retired then no more ships, buildings,
trains, planes, or automobiles. No more tractors, no more farms, no
more food unless we grow it ourselves in fields we plow with tools
we've made with our own hands. That's the way it's always been and if
we someday want to explore the universe, cure disease and marvel at
what awaits us in the oceans depths then we'd better get busy
introducing our youngsters to the vital art of using tools and the joy
of self reliance.
Thank you,
The Chairman. Thank you, Mr. Ratzenberger.
Mr. DeJohn?
STATEMENT OF RORY DeJOHN, SENIOR VICE PRESIDENT, TURNER
CONSTRUCTION COMPANY
Mr. DeJohn. Thank you for the opportunity to testify this
morning about closing the skills gap in the construction
industry to boost U.S. competitiveness. I'm Rory DeJohn, and I
represent Turner Construction Company.
Turner will celebrate its 115th anniversary this year and
is recognized as the largest building contractor in the United
States. This year alone, we'll complete approximately $11
billion of construction on 1,500 projects in 35 states and 400
cities across the country. As the construction industry is
called upon to deliver civil and urban infrastructure needs of
our communities and our country, I would like to give you some
insight on how the skills gap is being addressed and how we
need to think differently and more strategically about
developing a workforce prepared to take on these needs.
First, let me provide some perspective. Construction
employment is now at the highest level since 2008. Today, 6.8
million people will show up to work on a construction project
in every state and every city across the country. Together,
they'll complete in excess of $1 trillion of construction this
year. While impressive, there are approximately 100,000 fewer
working in our industry than in 2007, the same year that we
completed approximately the same amount of work.
Certainly, we're employing technology and improved
processes to help drive efficiency. Yet across the country,
we're seeing a real need for more skilled labor in the
industry. With these needs as a backdrop, we're also seeing a
shortage of education and training opportunities for the people
our industry needs most. The stress caused by a shortage of
workers will continue to increase as demands for construction
of both private and public sector clients continues to climb.
I'd like to just start with the professional side of the
industry. In 2011, there were 58,000 students pursuing civil
engineering degrees. That number remains unchanged today, even
as construction activity has grown 50 percent since 2011. As
the United States is a world leader in economic power, it's
imperative that we work to improve upon our education in STEM.
As we look to strengthen the talent pipeline and produce
more engineers, we also look to build a more diverse and
inclusive pipeline, one that better reflects the world we live
in and the people we serve. Although the number of women and
minorities involved in STEM has increased over the years, they
are still well behind the averages of other industries--the
fact is that 80 percent of the students pursuing engineering
degrees today are male and 60 percent are white.
There are people, organizations, and companies making great
efforts to increase the diversity of the talent pipeline. Their
mission is the same: engage and enlighten a diverse population
of middle and high school students to inspire them to pursue
education, and then careers in architecture, engineering, and
construction through mentoring and hands-on experience.
Now let me turn to the skilled labor side. The median
annual wage for all construction occupations is higher than any
median annual wage for all occupations. Plumbers, iron workers,
and electricians had a median income of $50,000 in 2015. Over
the past few years, we've seen wages in the construction
industry increase at a higher rate than the overall economy.
Yet the facts are clear. Fewer young people are entering
the building trades as more people in the building trades are
approaching retirement age. We've seen the average age of a
construction worker soar from 36 years old in 1985 to 43 years
old today.
One thing we can do to address this is to provide increased
support to industry trade groups and encourage them to develop
teaching practices and a curriculum better suited to the
millennial generation. High school educators and counselors
should introduce more students to a wide range of occupations
available to them in our industry, and then offer them pathways
to receive the training they need. As technical high school
expands, our country will enjoy the benefit and a more engaged
high school population that will graduate with the skills they
need to be successful.
In addition, we should also continue to support and
encourage the transition of our military veterans from the
armed services to rewarding careers in the construction
industry. Our industry has a range of employment opportunities
for veterans, and companies place high value on military
experience.
The industry has the need and the capacity to absorb more
people into our workforce and engage them into meaningful work
with a good wage. What we need is the collective commitment of
the educators, trade organizations, and industry to work
together to further strengthen the measures we have been
taking. We must also work together to act strategically to
prepare more people to enter the construction industry and to
extend the careers of people working in our industry.
Thank you again for the opportunity to be here today.
[The prepared statement of Mr. DeJohn follows:]
Prepared Statement of Rory DeJohn, Senior Vice President,
Turner Construction Company
Introduction
Thank you for the opportunity to testify this morning about closing
the skills gap in the construction industry to boost U.S.
competitiveness.
I am Rory DeJohn and I represent Turner Construction Company.
Turner will celebrate its 115th anniversary this year and is recognized
as the largest building contractor in the United States. This year
alone, we will complete approximately $11 billion of construction on
1,500 projects located in 35 states and 400 cities across the country.
Today, I would like to provide some insight into the very real
issue the construction industry is experiencing surrounding the
availability of skilled labor to complete the work we have.
As the construction industry is called upon to deliver the civil
and urban infrastructure needs of our communities and our country, I
would also like to give you some insight into how the skill gap is
being addressed and how we need to think differently, and more
strategically, about developing a workforce prepared to take on these
needs.
Construction Industry Impact on Employment and the Economy
First let me provide some perspective. Construction employment is
now at its highest level since 2008. Today, 6.8 million people show up
to work on a construction project--in every state and every city across
the country. Together, they will complete in excess of $1 trillion of
construction this year. While impressive, there are approximately
100,000 fewer people working in our industry today than in 2007 when we
completed approximately the same amount of work.
Certainly we are employing technology and improved processes to
help drive efficiency. Yet, across the country we are already seeing a
real need for more skilled labor in the industry. The population trends
in our country, a growing economy, and the changing needs within a wide
range of industries and communities will result in continued demand for
construction and construction jobs. With these needs as a backdrop, we
are also seeing a shortage of education and training opportunities for
the people our industry needs most. The stress caused by a shortage of
workers will continue to increase as demand for construction by both
private and public sector clients continues to climb.
Professional Skill Gap
I will start with the professional side of our industry. In 2011,
there were 58,000 students pursuing civil engineering degrees. That
number remains unchanged today even as construction activity has grown
by nearly 50 percent since 2011. And, as technology occupies a growing
role in our lives, nearly every business in every industry benefits
from the skills taught in fields of science, technology, engineering
and math (STEM).
Science, technology, engineering and mathematics professionals help
create better things and better places to work and live. Therefore, it
is important that we encourage students to pursue careers in STEM as
they are the future leaders in important industries and disciplines.
In construction, we see firsthand the role that new technology and
process innovations play in the planning, development, and construction
of a building. And because construction is an industry that touches so
many other industries, we also have a unique vantage point from which
to understand how these technological advancements and process
innovations are also driving positive changes for our clients as they
plan, build, teach, heal, research and manufacture.
As the United States is a world leader and economic power, it's
imperative that we work to improve upon our education in STEM. I
believe the future of our students, as well as our collective future,
is extremely bright, but only with our continued and increased support
of their education beginning in elementary school and continuing
through high school and into college.
We need to advance a strong message regarding the opportunities
available to develop innovative solutions to significant global issues
through education and careers in STEM. Many are drawn to the
construction industry because of its enormous impact on so many
different aspects of modern life. They read about the need to improve
the infrastructure of a city, hear of the need for a healthcare
facility in a rural area, or see an empty space a community center
might fill. These are the kinds of challenges that can serve to inspire
the next generation of engineers.
As we look to strengthen the talent pipeline and produce more
engineers, we also look to build a more diverse and inclusive
pipeline--one that better reflects the world we live in and the people
we serve. Although the number of women and minorities involved in STEM
has increased over the years, they are still well behind the averages
of other industries. The fact is that 80 percent of the students
pursuing engineering degrees today are male and 60 percent are white.
There are people, organizations, and companies making great efforts
to increase the diversity of the talent pipeline. They serve as
mentors, providing internships and scholarships and partnering with
other institutions to support a larger and more diverse pool of people
prepared to enter our industry. The Future City Competition, the ACE
Mentor Program and Turner's own YouthForce 2020 program are just three
programs that are addressing this. Their mission is the same: engage,
excite and enlighten a diverse population of middle and high school
students, to inspire them to pursue education and then careers in
architecture, engineering, and construction through mentoring and
hands-on experiences.
There are also organizations like the Society of American Military
Engineers, which provides opportunities for training, education and
professional development to veterans and helps them transition from the
military to careers as project managers and leaders in the construction
industry.
Labor Skill Gap
Now let me turn to the skilled labor side of our industry. The
Bureau of Labor and Statistics reports that the median annual wage for
all construction and extraction occupations was $42,280 in 2015, which
was higher than the median annual wage of $36,200 for all occupations.
Plumbers, ironworkers and electricians had a median wage of $50,000 in
2015. Over the past few years, we have seen wages in the construction
industry increase at a higher rate than the overall economy.
Yet, the facts are clear: our labor force is aging. Fewer young
people are entering the building trades as more people in the building
trades are approaching retirement age. We have seen the average age of
construction workers soar from 36 to 41.5 years old between 1985 and
2010. The average age is continuing to increase and now stands at 43.
The construction industry is being pinched on both sides of the
labor pool, resulting in a depleting workforce in the industry. This
means it may become increasingly more difficult to find the skilled
labor our industry and our country needs.
One thing we can do to address this is to make the work environment
more attractive to current and prospective tradespeople. With
technology tools to facilitate prefabrication and modularization, we
are continuously improving the safety and work environment for our
labor force. Technology and a focus on improved methods enables us and
our industry partners to work in a more favorable and comfortable way.
This can both help extend careers of people in the industry and make it
a more interesting industry for young people to join.
Another thing we can do is provide increased support to industry
trade groups, and encourage them to develop teaching practices and a
curriculum better suited to the millennial generation. High school
educators and counselors should introduce more students to the wide
range of occupations available to them in our industry, and then offer
them pathways to receive the training they need. As technical high
schools expand, our country will enjoy the benefit of a more engaged
high school population that will graduate with skills to be successful.
In addition, we should also continue to support and encourage the
transition of military veterans from the armed forces to the
construction trades. Our industry has a range of employment
opportunities for veterans, and companies place high value on military
experience.
Conclusion
We know that the construction industry provides multiple pathways
for people to find fulfillment, make a difference, and achieve success.
We also know that the ability of the construction industry to serve the
needs of private and public sector clients directly affects the
strength and competitiveness of our country.
The industry has the need and the capacity to absorb more people
into our workforce and engage them in meaningful work with a good wage.
What we need is the collective commitment of educators, trade
organizations and industry to work together to further strengthen the
measures the industry and our partners have been taking. We must also
work together and act strategically to prepare more people to enter the
construction industry, and to extend the careers of the people working
in our industry.
Thank you again for the opportunity to be with you today.
I would be happy to answer any questions you may have.
The Chairman. Thank you, Mr. DeJohn.
Colonel Cartney?
STATEMENT OF COLONEL MICHAEL CARTNEY, (USAF, RETIRED);
PRESIDENT, LAKE AREA TECHNICAL INSTITUTE
Colonel Cartney. Chairman Thune, Ranking Member Nelson, and
members of this Committee, thank you for your time today. I'm
Mike Cartney, President of Lake Area Technical Institute in
Watertown, South Dakota, this year's recipient of the Aspen
Prize for Community College Excellence. I commend this
Committee for taking on the topic of this national skills work
gap and the potential solutions.
Community colleges and, specifically, technical colleges
are often amongst the community's first responders for
workforce and economic demands. Let me briefly introduce you to
Lake Area Technical Institute.
We are a public 2-year college with a student population of
nearly 2,500 students, offering 29 career-focused programs of
study. Our graduation rate is nearly twice the national
average, we place 99 percent of our graduates, and those
graduates earn 27 percent more than other new starts in our
region. Our student loan default is half that of the national
average. We are extremely proud of every one of our student
successes, and we cherish our industry and community ties.
The technical evolution of the workplace requires even
entry-level employees to possess more education and training
than ever before. But the U.S. approach and focus on
postsecondary education does not align with the country's
workforce needs. Eighty percent of the jobs in 2025 will
require postsecondary education, and 80 percent of those jobs
will require postsecondary credential short of a 4-year degree.
Yet we continue to strongly value and push our students toward
4-year degrees, resulting in a mismatch between the education
people are receiving and the workforce needs.
Simultaneously, there are great jobs available for those
with the right skills. Trail King Industries, a South Dakota
based manufacturer, had to turn down $20 million in contracts
because they could not find welders. South Dakota businesses,
such as Muth Electric, Sheehan-Mack, 3M, Avera HealthCare,
Prairie Lakes Healthcare, Worthington Industries, and Big Stone
Power, have been forced to turn away contracts, delay or forego
expansion, or leave positions unfilled simply because they
could not find properly skilled workers available.
Today, South Dakota could quadruple our welding,
electrician, and licensed practical nursing capacities and
still not meet the openings available just in our state. And
this scenario repeats across every state in the nation,
predominately in the manufacturing, energy, healthcare,
aerospace, and transportation industries.
Recently, South Dakota amended our constitution to
recognize technical education. In addition to the traditional
K12 and higher education system, we now have what I like to
refer to as HIRE education--that's H-I-R-E--in our technical
education system. South Dakota's technical institutes have
partnered with industries and communities and the state
government to take on the skills gap.
Over 300 businesses work with our program staff and
students to provide a relevant educational experience that
supports our state's workforce demands. These businesses
consult on and oversee curriculum, provide internships, provide
training aids and equipment, mentor our students, and, most
importantly, they hire our students. They are heavily invested
in their workforce pipeline.
Through the vision and generosity of T Denny Sanford and
Governor Daugaard, many students receive full ride scholarships
to South Dakota's technical institutes in return for working in
South Dakota. Lake Area Technical Institute's Stretch-the-
Million program further leverages those funds and adds another
30 percent of scholarship winners for those that are willing to
work for a specific company.
Tightly knit student cohorts and a clearly defined
graduation path with close connections to industry-trained
instructors has been a formula for success in South Dakota's
technical institutes for over 50 years. Our students' education
also includes the soft skills needed to be successful in
today's market. We view college as a pathway, not a
destination, so we redefine success as placement, not
graduation. And we know that for 40 percent of our students,
college is a pathway out of poverty, so we focus on keeping
college affordable so that a road that was previously less
traveled now seems achievable and a journey worth taking.
In closing, the technical skills gap is not solely an
industry problem. It is not solely a government problem. And it
is not solely an education problem. It's a multifaceted problem
that requires a multifaceted response.
First, we need to tighten our bonds between education and
industry. We must re-image high demand occupations so they are
highly valued by society. There are great jobs with great pay,
great work environments with great people, and we need them.
Early engagement with our middle schools and high schools must
inform young minds and their parents of the great opportunities
available.
Second, we must align postsecondary education with the
emerging workforce demands and provide the infrastructure and
tools to ensure our educational system is responsive to
industry as well as individual needs. We need to merge and
align our educational careers with our occupational careers by
providing a just-in-time education system, and education must
better value work experience.
Third, Federal, state, and local governments must look for
innovative ways to be catalysts for workforce development.
Possible solutions include development grants for critical
needs, establishing programs like South Dakota's Build Dakota
programs to make college achievable in exchange for work
commitments, support for low-income students, and assistance in
building infrastructure and expanding workforce-targeted
educational opportunities are also needed.
Finally, establishing Centers of Excellence for Career and
Technical Education focused on generating and sustaining the
technically skilled workforce in a scalable, proven, and cost-
effective manner has to be on the table.
I again commend this Committee and thank you for going the
extra mile to make our Nation the greatest place to live, work,
and learn.
Thank you.
[The prepared statement of Colonel Cartney follows:]
Prepared Statement of Colonel Michael Cartney, (USAF, Retired);
President, Lake Area Technical Institute
Chairman Thune, Ranking Member Nelson, and Members of the
Committee:
Thank you for your time today. I am Mike Cartney, President of Lake
Area Technical Institute in Watertown, SD, this year's recipient of the
Aspen Prize for Community College Excellence. I commend this committee
for examining the Nation's workforce skills gap and potential
solutions. Some have observed that community colleges, and specifically
technical colleges, are often among a community's first responders for
workforce and economic development.
Let me briefly introduce you to Lake Area Tech (see attachment 2
for additional information):
We are a public, two-year degree-granting technical college
with a student population of nearly 2,500, offering 29 programs
of study.
Our student success rates are perpetually at the top or near
the top of all community colleges across the nation:
Graduation rate--67 percent (national average--39
percent)
Placement rate--99 percent
Lake Area Tech graduates earn 27 percent more than
other new starts in the region.
Student loan default rate--6.1 percent (national
average is 11.3 percent)
The South Dakota system of Technical Institutes,
consisting of Lake Area Technical Institute, South East
Technical Institute, Western Dakota Technical Institute,
and Mitchell Technical Institute, was ranked number 1 in
the country this year by Wallet Hub for best value..
Lake Area Technical Institute was only the 93rd college in
U.S. history (and we believe, the only technical college) to
have a sitting President as our commencement speaker.
LATI students and staff accomplished almost 80,000 hours of
community service and community learning last year.
Goal and major points.
I am here to provide foundational information on the important role
that community colleges and, more specifically technical colleges, play
in enabling the vibrant and targeted growth of our workforce and
economy. I'll be highlighting and providing specific best practices
that we believe can enable the United States' educational and
industrial entities to better fill the technical workforce gap. Today,
I hope to raise awareness of these profound issues related to the
local, state, and national Technical Skills Gap from a technical
college standpoint. Other distinguished guests will address the topic
from an industry perspective.
The problems.
The technological evolution of the workplace requires even entry
level employees to possess more education and training than ever
before. But the U.S. approach and focus on post-secondary education
does not align with country's workforce needs. A commonly cited
projection is that 80 percent of jobs in 2025 will require post-
secondary education and 80 percent of those jobs will require a post-
secondary credential short of a four-year degree. Yet, we as a society
continue to strongly value and push our students toward four-year
degrees, resulting in a mismatch between the education people are
receiving and workforce needs. It is also leaving a significant number
of our youth with large student debt and no means of repaying it. To be
clear, the need, value, and benefits of a four-year degree has not
waned, but there is a realization that in many career paths, getting a
four-year degree as a continuum of work/education, rather than prior to
entering the workforce, better benefits both the employer and
employees.
Simultaneously, the great jobs are available for those with the
right skills. Trail King Industries, a South Dakota based manufacturer,
had to turn down $20M in contracts because they could not find welders.
South Dakota businesses such as Muth Electric, Sheehan-Mack, 3M, Avera
HealthCare, Prairie Lakes Healthcare, and Big Stone power plants were
being forced to turn away contracts, delay or forego expansion, or
leave positions unfilled, not because there were not workers available,
but because there are not properly skilled workers available. South
Dakota could quadruple our welding, electrician and licensed practical
nursing program capacities and still not fill the openings just in our
state. These scenarios are repeated across the Nation in every state,
predominately in the manufacturing, energy, healthcare, aerospace, and
transportation industries.
Community colleges must also improve. Community colleges are unable
to attract sufficient numbers and only graduate 39 percent of those
attending. Further, only a small percentage of those colleges track
students' employment statistics following graduation. Lake Area
Technical Institute's graduation rate is 69 percent, we track all our
students post-graduation, and our placement rate this year is 99
percent. It is our desire to share our best practices with other
community colleges in order to bolster their graduation rates and
contributions to the technical workforce through efforts like the Aspen
Prize for Community College Excellence.
Across the nation, there are not enough skilled workers to fulfill
critical workforce needs.
In South Dakota and across the nation, key industries do not have
enough technically skilled employees to fill the workforce needs. The
demand for jobs which require education beyond high school but not a
four-year degree remains strong. Between 2014-2024, 49 percent of job
openings in South Dakota will require less than a four-year degree.
These jobs account for 55 percent of South Dakota's labor market, but
only 49 percent of the state's workers are trained to this level.
(http://www.nationalskillscoalition.org/resources/publications/2017-
middle-skills-fact-sheets/file/South-Dakota-MiddleSkills.pdf).
One contributing factor to this problem is the aging workforce.
Young people are not attaining the technical education needed to
replace the retiring workforce. We need to get people into technical
degree and credential programs and dispel the myth that we can do more
with less. Today's technology is a force multiplier that enables people
to do more. It often doesn't reduce the number of people to do it, as
we need people to build, operate, and maintain the technology. And, we
don't need workers to do what they did before; they need to perform
different tasks. For example in today's manufacturing industry, jobs
are more technical. We need workers who can maintain and operate the
robots that raise the quality and throughput of the production line.
Because technical workers in the U.S. perform job duties differently,
there is often a wage disparity with foreign countries. Often, foreign
countries employ workers at lower wages to perform tasks manually.
Career and Technical Education--A different approach to education:
Just this last year, South Dakotans amended our state constitution
to recognize Technical Education as the third form of education--giving
us the traditional K12 system, the traditional higher education, and
what I like to refer to as ``HIRE''--(that's H I R E) technical
education system. The Technical Education system is focused on enabling
South Dakota's economic development by growing our technical skilled
workforce.
South Dakota's Technical Institutes have partnered with Industry,
communities, and State Government to take on our skills gap head on.
Over 300 businesses work with Lake Area Tech's program staff and
students to provide a coherent and relevant educational experience that
support our state's workforce demands. These businesses consult and
oversee curriculum, provide internships and on-the-job experience for
students, provide industry standard training aides and equipment for
the students to learn with, mentor our students, and most importantly
they hire our students--in short, they are heavily invested in their
pipeline.
Through the vision and generosity of T Denny Sanford and Governor
Dennis Daugaard, students receive full ride scholarships to South
Dakota's technical institutes in return for working in South Dakota.
Lake Area Tech's ``Stretch-the-Million'' program leveraged these funds
with industry providing 33 percent more scholarships to students
willing to work for a specific employer at graduation. But the impact
of the Build Dakota Scholarship reaches beyond just those students
receiving scholarships. I believe the exposure and informational
aspects of Build Dakota enabled the state's public two-year technical
institutes to grow when nationally 2-year enrollment declined by 10
percent.
The core approach of tightly knit student cohorts with close
connections to their industry trained instructors has been a formula
for success in SD's technical institutes for over 50 years. Our
students' education also includes the soft skills needed to succeed in
today's modern workforce. We view college as pathway, not a
destination. And we know for more than 40 percent of our students,
college is the road out of poverty. As we aligned our programs with
industry needs, we redefined success as placement not graduation
because it makes college more relevant, we avoided labelling students
because fitting in at college is already hard enough, we ensured
students knew the paths to success with clear expectations, and we
emphasized every employee had a role in student success. Then we
wrapped those efforts in our Culture of Caring: It was these guidelines
that makes a road that was previously perceived as less travelled, now
seem achievable and a journey worth taking.
Even after 14 consecutive years of growth, Lake Area Tech needs to
expand our capacity. Today, South Dakota could quadruple our welding,
electrician and licensed practical nursing program capacities and still
not fill the openings just in our state. So we have turned to even more
innovative approaches. Online and dual credit programs are paying
significant benefits. Our Learn Where You Earn concept encourages local
companies to allow employees to up-skill in their home communities. We
also encourage communities to Grow Your Own and we encourage businesses
to promote employment opportunities in their communities by developing
relationships with high school students, parents, and educators.
But there is much yet to do
Today, there is a disparity between the workers and the job
openings. This gap will continue to grow. In South Dakota, our
industries are pleading for more technically trained workers. Here are
just a few examples of the critical need for employees that, in most
cases, are causing financial and human resource hardships for the
companies.
Deb Fischer-Clemens, RN, the Senior Vice President of Public Policy
for Avera and a member of the Skilled Workforce Advocacy Council:
Currently, there are 148 openings for licensed practical nurses (LPNs)
across the system; some long-term care beds have been closed because of
staffing shortages. In other facilities, traveling staff are used to
cover the shortages. This causes other issues, as the average hourly
pay rate for an LPN is $20.12, while a facility will pay, on average,
$49 per hour for a traveling LPN; this salary is an unsustainable
amount for facilities to pay based on current reimbursement rates.
Terry Sabers, Co-President, Muth Electric, Inc.: We believe
strongly in the value of hiring educated apprentices from a technical
institute in our area. During the recession there were about four
companies attending the job fair recruiting the 30 or so graduating
students. At the event in the last month there were 36 companies
recruiting the 32 graduates. All construction and service based
companies in the upper Midwest are at an extreme shortage of workers.
Trail King Industries, Mitchell, SD: In a period of approximately
16 months in 2013 and 2014, Trail King had to turn down $20 million of
business because we did not have the skilled workers, specifically
welders, to complete the business in the timeframe needed by the
customer. Even though Trail King used a number of innovative and very
generous recruiting methods and employed robotic welders where
possible, there simply were not enough skilled welders available to
fill the needs of the company.
Gage Brothers, Sioux Falls, SD: This lack of skilled workers has
cost the company approximately $5 million in sales each of the past
three years. Additionally, we have sold between $2-6 million in work to
a competitor in Minnesota in order to keep our production schedule on
track.
Hancock Concrete, Sioux Falls, SD: The labor shortage affects our
current employees as well. They are required to work longer hours to
fulfill orders which in turn is an increased safety risk and also
increases turnover. One other adverse effect of the items that I have
described is increased product cost for the infrastructure projects
which affects all tax payers.
Worthington Industries Engineered Cabs, Watertown, SD: At
Worthington Industries Engineered Cabs, our business levels are at
historic lows due to equipment markets in Agriculture, Mining, and
Construction. Even with an extremely slow market we struggle to fill
open positions for skilled labor especially welders and painters. Some
of these positions have remained unfilled for 3-4 months before finding
a qualified candidate. We have a sister plant in Greeneville, TN that
builds very similar products. One of the considerations on whether to
build products in SD or TN is labor availability.
(see Attch 1 at the end of this document for complete South Dakota
Industry Stories.)
South Dakota's Technical Education system could quadruple our
program capacities in welding, licensed practical nursing, and
manufacturing and still not fill the open positions just in our state.
Technical Skills Gap is exacerbated by multiple issues.
There are various issues contributing to the Technical Skills Gap
problem. One of the major issues is at the ground level: finding ways
to attract students (future employees) to enroll in technical education
programs. In South Dakota, we know that some high school graduates have
never been exposed to Career and Technical education in their K-12
experience. This is due to a number of factors including cuts in
funding, graduation requirements, and a greater emphasis on four-year
college attendance.
Overcoming negative perceptions about technical education is also a
continuous struggle. Often people associate manufacturing/technical
jobs with dirty, dark work environments. Nothing can be further from
the truth! Today's state-of-the-art shops offer employees a bright
working environment that is well-ventilated and clean. At Lake Area
Technical Institute, we teach our students that taking pride in their
work space is just as important as the work they perform on machines,
engines, and robots.
Overcoming the emphasis on ``having to attend'' a four-year college
by parents, students, and high school counsellors is also an issue.
(Incidentally, high school counsellors and teachers are almost
exclusively four-year degree holders who are helping our youth plan
their futures.) The opinion of many is that students need to continue
their post-high school education at a four-year college to make
something of themselves. Often, the many benefits of technical
education are not considered, partly because they're unknown to the
person. On the other hand, there is the faction that believes technical
education is `for those who cannot go to college.' Again, the benefits
of an education that enables a career AND allows for continued
education are being overlooked by those subscribing to this attitude.
Finally, an issue of great significance regarding the Technical
Skills Gap is the lack of capacity for CTE education and training. With
our newly amended constitution in South Dakota, it will help shine the
spotlight on the need for more available dollars for technical
education and, ultimately, filling the workforce gap.
Lake Area Tech is making concerted efforts to decrease the Technical
Skills Gap.
Three years ago, Lake Area Tech zeroed in on redefining student
success. Redefining success as placement (employed or continuing their
education), and making graduation (completion) a step along a student's
journey affects not only the faculty and staff of the institution, but
also students, parents, and industry that need a different perspective
on their education. At the institutional level, the first step was
formally changing our mission statement to ``Lake Area Technical
Institute: superior, comprehensive technical education that changes
lives and launches careers'' to focus this initiative. This subtle
adjustment changed the whole conversation and focus with potential and
current students. Rather than discussing degrees, which is an abstract
concept to many new students, we discuss what they want to be, what
they want their future to be, and then laying out a path for them to
get there. Instead of discussing ``where can you go with a particular
degree,'' we are discussing which degrees can get them where they want
to go. Things become immediately more relevant. Going to class, doing
homework, and passing tests--it's not just about completing a course,
but rather, it's about learning what students need to know to be what
they want to be!
The conversations with students and parents have changed to
emphasize and explain that college is a pathway, not a destination. At
Lake Area Tech, we provide students a pathway to graduation that allows
them to begin not only their careers, but their experience as life-long
learners who take advantage of all educational offerings that will
allow them to advance throughout their time in their chosen field.
From recruiting to advising to completion, the conversation at Lake
Area Tech is career-focused. Admissions reps guide students to examine
their aptitude and career goals. A detailed program graduation plan
defines expectations; placement data and salary information provide
motivation; and experienced staff helps candidates make an informed
career decision. Students are not accepted into LATI and then accepted
into a major. Rather, career selection is required during the
application process. Students whose chosen career program is at
capacity, or they are otherwise unable to enter, often chose an
alternate path or pursue their career choice elsewhere. And these
conversations cannot be fruitful unless local and regional employers
are involved in the system to provide real-world expectations,
insights, support and guidance to the institution and its future
employees.
Universities must also prepare to provide the same perspectives and
guidance to those transferring to their programs. Transfer student
success is defined, at a minimum, not as a successful transfer to a
four-year school, but completion of that next degree. Extending the
logic further, ultimately, baccalaureate completers should measure
success by being employed in a job with family-sustaining wages. This
process is affirming our belief that our consumer is not just the
student, but their future employers as well. And it is enlightening us
and industry to the importance of their role in our success.
At Lake Area Technical Institute, we are doing everything we can to
make college affordable. If we are doing it right, technical education
is more expensive due to the resources needed to train the graduates:
advanced equipment, modern facilities/labs, and instructors who should
be earning wages equal to those working in the field.
Recognizing cost as one of the biggest factors to attracting as
well as retaining students, Lake Area Tech strives to make college
affordable and minimize the financial barriers. LATI offers low-cost
on-campus child care and works with students to qualify for state
childcare assistance. By providing cafeteria services in-house and at-
cost, we offer nutritious, affordable meals. Our bookstore also
operates at a target margin of less than 10 percent. Bolstered by
campus initiatives, instructors work diligently to keep costs of text
books, tools, and technology in check while ensuring students have
access to high-quality equipment needed to succeed. Over 65 percent of
courses use the learning management system to provide resources to
students compared to a 60 percent national average; therefore, reducing
the overall cost of materials.
LATI developed a Prior Learning and Work Experience Model to assess
the training experiences of veterans and students previously employed
in the field to identify accelerated graduation paths. This enables
students to accelerate degree completion time and save on the overall
cost of their degree. Remarkably, even though technical education is
more expensive than traditional forms of education, the last calculated
default rate at Lake Area Tech, 6.1 percent, is nearly one-half the
national average, 11.3 percent, on student loans.
Getting a good paying job after graduation is paramount in making
college affordable. Six months after graduation, 81 percent of our
graduates are employed, and another 17 percent are continuing their
education, meaning 99 percent of our graduates are placed, a key factor
in why LATI's student loan default rate is less than half the national
average. Our latest placement report findings include:
An increase from 7 programs earning $20 per hour or more
(2015) to 8 programs (2016) with Agriculture joining the list
of highest earners. The highest average salary is from our
Energy Technology program, which is $25.93/hr. ($53,934.40).
Increased placement percentage ``in training field in South
Dakota'' from 80 percent (2015) to 84 percent (2016)
82.63 percent of graduates in this cohort were from South
Dakota. 86 percent were employed in South Dakota six months
after graduation for a net gain of 3.37 percent (18 graduates)
to the South Dakota workforce pipeline
Culture of Caring. Student success at Lake Area Tech begins with
our culture. We care about our students, and they know we care. We
believe in our students, and they know we believe in them. And, we
listen to our students, and they know we are listening. If we aren't
talking about students' challenges, their goals and their vision for
success, it can be translated into a belief that we as faculty and
staff do not care about their individual success. Everyone, from
administration to faculty, to staff takes personal responsibility for
student success. The culture is something we've been working on for a
number of years. We have older faculty who know who we are and how we
have done these things over the course of years to benefit our
population. We added a retention coordinator who did preemptive
engagement and learning engagement and also hired some personnel to
focus on diversity issues. So a part of our approach has been to make
new investments, but largely, our biggest investment was time in
changing our institutional philosophy.
Within our region, Lake Area Tech works closely with business and
industry members. Workforce development through partners is at the
heart of LATI's success and includes a wide spectrum of individuals,
organizations, and businesses. With over 300 industry and community
partners, our commitment to expand industry's role in student success
may seem out of reach. But we enhanced our efforts with two business
partner specialists, and the results have been astounding. For example,
The State of South Dakota and T. Denny Sanford expanded access to
college through the Build Dakota Scholarship Program, a $50 million
investment to provide full-ride scholarships to students in high demand
occupations. LATI partnered with businesses to expand the impact of
Build Dakota through the Stretch the Million campaign, in which
businesses pay 50 percent of the full-ride scholarship. The local and
regional community encourages and appreciates the achievements of
students by recognizing their economic impact and community service
efforts.
Lake Area Technical Institute also promotes career opportunities
within our community and surrounding communities. Our Learn Where You
Earn concept encourages local companies to allow employees to up-skill
through Lake Area Tech's online hybrid options or LATI Corporate
Education to gain the skill sets employees in those communities need.
We also encourage communities to Grow Your Own. We know that today's
young people prefer to live and work close to home. To accommodate
those that can, we encourage businesses to promote employment
opportunities in their communities by developing relationships with
high school students, parents, and educators.
At the state level, the South Dakota Office of Economic Development
funded over $1 million in equipment to LATI annually to expand access
to the latest technology without increasing the cost to students. The
state also matched the $25 million private donation from T. Denny
Sanford to create the Build Dakota Scholarship fund. LATI expanded the
reach of the full-ride scholarships through the Stretch the Million
program with over 20 partners initially pledging $175,000-$200,000.
Beyond the Build Dakota Scholarship program, the LATI foundation is
instrumental in expanding access to college through scholarships. Last
year, the foundation awarded over 400 scholarships exceeding $300,000.
Additional efforts to keep college affordable include participation in
the national Free Application Week, Financial Aid Workshops, Financial
Aid Literacy Program, and credit for corporate education and prior
learning.
Lake Area Tech's recommendations.
In closing, I'll emphasize The Technical Skills Gap is not solely
an industry problem. It is not solely a government problem. And, it is
not solely an education problem. It is a mutli-faceted problem than
requires a multi-faceted response.
First, we need to tighten the bonds between education and industry.
Together we need to re-image high demand occupations to more highly
valued to society. People understand these are great jobs with good
pay, great work environments with great people, and that we need them!
We need to be reaching into our middle schools and high schools to
inform young minds, and their parents, about the great opportunities
available in these industries. Additionally, technical education is
more expensive than traditional academic environments, so we must find
ways to share resources and control costs while keeping our schools
updated and aligned with industry standards.
Second, we need to facilitate the alignment of post-secondary
education with our emerging workforce skills demands, and find ways to
ensure our educational system is responsive to industry as well as
individual needs. We need to merge and align our educational careers
with our occupational careers by providing `just in time education'
versus the current segregated models. In the same vain, education must
better value work experience.
Third, Federal, state, and local governments must look for
innovative ways to be the catalyst for workforce development. Workforce
development grants where there were critical needs; establishing
programs modelled after SD's Build Dakota scholarships to make college
affordable in exchange for work commitments; financial support for
students coming from the lower part of the economic spectrum; and
assistance in building infrastructure and expanding workforce targeted
educational opportunities. Finally, taking a look at some of the
exceptional technical colleges across the country and establishing
Centers of Excellence for Career and Technical Education focused
today's and tomorrow's technical skilled workforce in a scalable,
proven, and cost-effective manner.
In closing I what to again commend the Committee and thank you for
going the extra mile to make our Nation the greatest place to Live,
Work, and Learn.
Acknowledgements.
I acknowledge the outstanding support in developing this document
on such short notice. Playing particularly key roles were: Karen
Henricks, Lake Area Technical Institute; Tiffany Sanderson, SD Dept of
Education; Dawn Dovre and Aaron Schiebe, SD Dept of Labor and
Regulation; and Greg VonWald, SD Skilled Workforce Advocacy Council.
Our industry partners were also invaluable in putting this document
together.
Attachments:
1) South Dakota: Stories from Industry
2) Lake Area Technical Institute
______
Attachment 1: Stories from Industry
South Dakota: Stories from Industry
Avera, the health ministry of the Benedictine and Presentation
Sisters, is a regional partnership of health care professionals who
share support services to provide excellent care at more than 300
locations in eastern South Dakota and surrounding states.
Deb Fischer--Clemens, RN, the Senior Vice President of Public
Policy for Avera and a member of the Skilled Workforce Advocacy
Council, shares several examples of health care workforce issues that
Avera faces. Currently, there are 148 openings for licensed practical
nurses (LPNs) across the system; some long-term care beds have been
closed because of staffing shortages. In other facilities, traveling
staff are used to cover the shortages. This causes other issues, as the
average hourly pay rate for an LPN is $20.12, while a facility will
pay, on average, $49 per hour for a traveling LPN; this salary is an
unsustainable amount for facilities to pay based on current
reimbursement rates.
In addition, Avera currently has 12 openings for surgical
technicians across the system. Bonuses of between $1,000 and $4,000
being offered for these positions, but there are no surgical
technicians applying. Medical laboratory technicians (MLTs) are also in
short supply, resulting in travelers from others states being
contracted at a rate of $38.64 per hour, while employed MLTs are
earning $21 per hour on average.
Again, neither closing beds, nor paying wages to contracted
traveling staff, is sustainable.
America has an increasing issue with a mismatch between the
qualifications of its labor force and the skills required for open
positions. Jobs go unfilled because unemployed citizens do not have the
skills demanded. Two-year colleges can provide the focused education
needed to fill these openings quickly. Enrollment in one and two year
career programs must expand to meet projected workforce need. Since
over 70 percent of the jobs require technical skills, society needs to
acknowledge the value of this type of education. Lake Area Tech works
extremely hard to communicate that these degrees are as vital to our
country as any type of degree.
LATI has strong vital partnerships with businesses. Every program
has an active Advisory Board which meets each semester to provide input
on curriculum and relay industry trends which impact our instruction.
Partners are asked to contribute time, talent, and financial resources.
Muth Electric, Inc.
The shortage of a skilled workforce has become steadily worse in
the last few years. It was at a critical stage in 2007 but the
recession slowed it somewhat. Now the problem is back and even worse.
We believe strongly in the value of hiring educated apprentices
from a technical institute in our area. During the recession there were
about 4 companies attending the job fair recruiting the 30 or so
graduating students. At the event in the last month there were 36
companies recruiting the 32 graduates. All construction and service
based companies in the upper Midwest are at an extreme shortage of
workers.
What this means is that in the next 10 years there will be a
critical situation in the battle for a sufficient skilled workforce.
This workforce (in our case electricians) is the same team that will
make sure that the hospitals' ever-growing electronic workplace gets
the proper maintenance to protect its patients. This team of workers
also makes sure our food processing plants get upgraded and maintained
to produce the needed food for the population of the U.S. The list goes
on and on of critical situations.
Even with the growing labor saving technology features available,
there are still many needs for a trained workforce. We have instituted
many efficiency aids in the construction field but there are still
critical positions that need to be filled with humans. We need help in
ensuring that there are people to fill those critical positions to
serve the needs of the U.S.--Terry Sabers, Co-President, Muth Electric,
Inc.
Trail King Industries, Mitchell, SD
Trail King Industries is a privately owned manufacturer of large
scale specialty trailers employs approximately 700 employees and has
manufacturing sites in Mitchell and Yankton, SD and Fargo, ND.
In a period of approximately 16 months in 2013 and 2014, Trail King
had to turn down $20 million of business because we did not have the
skilled workers, specifically welders, to complete the business in the
time-frame needed by the customer. Even though Trail King used a number
of innovative and very generous recruiting methods and employed robotic
welders where possible, there simply were not enough skilled welders
available to fill the needs of the company.
Trail King has invested heavily in the welding programs of the
technical colleges in South and North Dakota in hopes of nurturing a
consistent pipeline of qualified welders. It has also been instrumental
in establishing the South Dakota Skilled Workforce Advocacy Council as
proactive measures to grow the workforce. We believe, however, that a
much broader national effort will be required to address the skills gap
that has developed across the United States if this Nation is to be
competitive in manufacturing.
Glacial Lakes Energy, LLC, Watertown, SD
We consistently incur higher costs (such as overtime) when we
cannot easily and readily find qualified labor. In our production
operation, the plant has to run and we are forced to pull in operations
staff from other shifts to cover the vacancies that sometimes sit for
months. This results in higher overtime costs and potential ``burn-
out'' of our existing team members.
Another frustrating aspect is the quality and quantity of
applications we receive. Many times, we receive only a 1-3 applicants
with less than desirable backgrounds for a position which gives us
limited options in the selection process.--Jim Seurer, Chief Executive
Officer, Glacial Lakes Energy, LLC
Gage Brothers, Sioux Falls, SD
Gage Brothers was founded by members of the Gage family in 1915 and
has been employee-owned since 2008. Our company has struggled to
maintain a full workforce for several years and regularly have anywhere
between 10-40 job openings. These positions include but are not limited
to: production workers, carpenters, welders and equipment operators.
This lack of skilled workers has cost the company approximately $5
million in sales each of the past three years. Additionally, we have
sold between $2-6 million in work to a competitor in Minnesota in order
to keep our production schedule on track.
Part of the solution lies in automation, which has transformed U.S.
manufacturing. This will require us to ramp up job-training efforts
because we will need workers who can operate, program and maintain the
new computerized equipment. No matter how you slice it, we need the
manufacturing industry and our education system to join forces to
create a system to recruit, train and retain skilled workers. It is
paramount to the future economic growth and prosperity of South Dakota.
Every dollar of manufacturing produces $1.41 for our state.--Terry
Kelly, President, Gage Brothers, Sioux Falls, SD
Hancock Concrete, Sioux Falls, SD
At Hancock Concrete we are producers of precast concrete products
for infrastructure projects across 4 states in the upper Midwest. Our
Sioux Falls production facility supplies product for projects in
eastern South Dakota and northwest Iowa. The months of March through
November are the heaviest months of production and when we are most in
need of workers.
In the past few years it has become increasingly difficult to find
laborers to fill out all of the crews that we have in our Sioux Falls
plant. We have found that the labor pool in the local area is just not
consistent enough for the type of work we do. During the past few years
we have had to go to extreme measures to ensure we had enough laborers
to fulfill all of our orders. These extreme measures included bringing
laborers in from outside the state from as far as Texas, just to make
sure we could fill our crews with consistent workers. This was an
increased financial burden for Hancock as we would house those out of
state workers and need to perform additional training each year when we
brought them in. Also, during that time of worker shortage, we had to
look to our other plants in neighboring states for help to make product
to fulfill our orders. At times we would back away from bidding on
projects because we did not know if we would have enough workers to
meet the delivery needs of the customers.
The labor shortage affects our current employees as well. They are
required to work longer hours to fulfill orders which in turn is an
increased safety risk and also increases turnover. One other adverse
effect of the items that I have described is increased product cost for
the infrastructure projects which affects all tax payers.
This area of the Midwest has a shortage of workers for performing
specific technical trades as well as a lack of general laborers that
have the desire to put in the work necessary to perform less skilled
jobs that at times may be more physically demanding than working a
department store or restaurant. We have hired many employees and looked
at many different backgrounds and ethnicities but the consistency is
just not there. We will continue to explore other options for our labor
needs and help to grow our local workforce in any way we can.--Ray
Pierson, Sales Territory Manager, Hancock Concrete, Sioux Falls, SD
Worthington Industries Engineered Cabs, Watertown, SD
At Worthington Industries Engineered Cabs, our business levels are
at historic lows due to equipment markets in Agriculture, Mining, and
Construction. Even with an extremely slow market we struggle to fill
open positions for skilled labor especially welders and painters. Some
of these positions have remained unfilled for 3-4 months before finding
a qualified candidate. We have a sister plant in Greeneville, TN that
builds very similar products. One of the considerations on whether to
build products in SD or TN is labor availability. I want to keep all
possible jobs in SD, but we also have to make the best business
decisions for our business and our customers. Skilled workforce
development and availability is a key factor in our ability to grow our
business in SD.--Bruce Lear, Watertown Operations Manager, Worthington
Industries, Watertown, SD
BX Civil & Construction, Inc.
The ability to grow a construction company is currently constrained
by the available workforce and our ability to attract, train & retain
that workforce. At the same time infrastructure is in major disrepair
and needs a long-term investment to preserve and increase the value of
our communities, states and nation.
As a highway construction company, we have shifted our mindset to
managing our work load based upon available workforce hours. Our growth
as a company is now based up how much we think we can reasonably grow
our workforce. Companies in our industry grow incrementally by in-house
recruitment and training people on the job. We knowingly or unknowingly
``trade'' or ``steal'' employees from each other on a seasonal basis.
Some like us have embraced the immigrant workforce and have grown with
that population. The reality is that none of that is sustainable as a
stand-alone tactic. We work hard to attract and retain our scarce
resource. We realize that all employees need an investment in skills,
communication & leadership training. Gone are the days of the ``farm
boy'' who grew up working along the side of his father. That boy not
only learned work ethic by working from a very young age but also
learned that he had the ability to learn and do new things every day
with his hands. Those days brought people like my father to the
construction industry in the 1960s. He learned by doing and out of
necessity to support himself and his family. His learning was by
watching, listening and doing. He learned not only to do, but also to
think about how to do it better.
The initial building of the interstate system in the 60s, 70s and
80s was supported on the hard-working backs of people like my father
and many other fathers. Growing up in the 70s and 80s and like most, if
not all, of my peers, we were told to get a ``college'' education by
our parents & teachers so that we didn't have to dig ditches or build
bridges. Many of us did. Now, we face a dilemma as we push our children
out of the nest. How do we change the image and mindset of the
influencers? The educators and parents are the influencers. They don't
realize how ``good'' our jobs are.
We need to invest in changing their perspective. At construction
industry gatherings in the 90s, we started hearing that we had a
looming demographic problem. People were leaving the industry at a much
faster pace than they were entering the industry. This proved to be
fact. Add on top of that the great recession of 2008-2009 when
unemployment increased and at alarming pace in our overall economy. It
was significantly worse in the construction industry. That event made
what was already and downward employment trend in our industry worse.
Generally, the people that were unemployed by our industry never
returned to the industry when the industry entered recovery. They had
either moved on to other industries or retired out.
Fast forward . . . it is now 2017. We have a collision occurring.
Infrastructure investment is recognized to be Critical Need both
locally and nationally and our citizens are willing to reinvest. At the
same time, the skilled Construction worker force is in scarce supply
and largely untrained.
How do we do the first without addressing the second? The reality
is that the industry will rise with innovation and efficiency, but the
need for a trained & skilled workforce will not go away. The technology
and efficiency improvements will require people with specific skills.
People like:
Diesel Mechanics
Service Technicians
Electronics Technicians
GPS Specialists
3 and 4D modeling specialists
Scheduling Experts
Project Managers
Engineers
There will continue to be the need for skilled laborers, skilled
trades people & skilled equipment operators. What are those skill
needs?
Concrete Finishers
Carpenters
Electricians
Plumbers
Welders
HVAC Specialists
Equipment operators who have basic operational skills &
understand technology
Truck Drivers
As opposed to the 1960s and 1970s, close to 100 percent of our
American workforce comes to us having never: changed the oil in their
own car; driven anything but an automatic transmission vehicle; scooped
their own snow let alone dirt or gravel; fixed anything that was
broken; built even a bookshelf; wired their own light switch; etc. All
those things and many more, my dad and yours probably came to the
workforce having done. Not only do we as infrastructure contractors
build projects, we train every single worker to do even the simplest
tasks. We aren't backing down. We are up for the TASK! If you visit any
contractor who is in this ``gig'' for the long haul, you will see they
are:
Training hands-on trade skills
Training to keep their workers safe
Training soft skills including work ethic, interpersonal
skills and leadership skills
Investing in Technology to make them more efficient
Not only are they training, they are providing good solid jobs that
pay well and provide a multitude of perks and benefits. We need HELP!
This training and investment takes time and money. Please support
investing in programs that enhance and support the great jobs that our
industry offers.--Kari Karst, President, BX Civil & Construction, Inc.
Dell Rapids, SD
Glacial Lakes Energy, LLC
I can say that we consistently incur higher costs (such as
overtime) when we cannot easily and readily find qualified labor. In
our production operation, the plant has to run and we are forced to
pull in operations staff from other shifts to cover the vacancies that
sometimes sit for months. This results in higher overtime costs and
potential ``burn-out'' of our existing team members.
Another frustrating aspect is the quality and quantity of
applications we receive. Many times, we receive only a 1-3 applicants
with less than desirable backgrounds for a position which gives us
limited options in the selection process.--James A. Seurer, Chief
Executive Officer, Glacial Lakes Energy, LLC, Watertown, SD 57201
Sheehan Mack Sales and Equipment
In the past 20 years or ever since the DOT COM boom is seems that
nationwide we have had a decline in the amount of qualified individuals
entering the workforce with a skilled trade (technicians). In the same
time machines, trucks and equipment have all become more complex and
more difficult to repair. The demands on our Technicians are greater
now than they have ever been in the past while the supply of qualified
individuals has only shrunken. With the combination of these two
factors companies like ours have felt the pain of the shrinking
workforce in the form of increased cost, lost revenue and customer
satisfaction.
Limited skilled labor in the workforce has
Increase wages at alarming rates
Increased the burden of training on us
Hurt our ability to respond to customers quickly and
efficiently
Created a labor market where there is more demand for
skilled labor than supply (this has helped to lower loyalty and
increased the likelihood of techs job hopping)
Let's look at what the shortage of trained individuals costs us
Hiring, sign on bonus' are common place now (Between $2,000
and $5,000)
Wages have increased to more than 17 percent over median
income for State of SD
Training costs have skyrocketed to about $100,000 per
technician to reach required levels of training once they are
hired
Now, let's look at the indirect costs of not having trained skilled
labor
Loss income from supporting products we sell--less work
completed
Increase in customer downtime--less production
Loss in New Machine and Truck Sales--customer are more
concerned now than ever with support after the sale
Increased lead time to begin repairs, longer repair times
I have calculated that that these direct and indirect costs to my
business are in the hundreds of thousands if not more than a million
dollars per year. Moving into our busy construction season I am afraid
that the lack of trained individuals may be at CRISIS Levels.
Building our labor force with skilled labor is more important now
than ever before! We need high school programs, post-secondary programs
and technical institutes geared up and adding top talent into our
workforce. We need High School Counselors to see and understand the
need for Skilled Labor in our workforce. We need Parents and Students
to know and understand the great earning potential that is available to
them after attending a trade school and incurring very little school
debt. We need technicians that are great in math, science and have
people skills. We need to change the mindset or perception on skilled
labor. Skilled labor jobs pay well and these jobs are out there right
now needing top candidates. These skilled worker once in the field are
our next Service Managers, General Managers, Fleet Managers and leaders
of our industry.--Mike Sheehan, President, Sheehan Mack Sales and
Equipment, Sioux Falls, Aberdeen, Rapid City, SD
______
Attacment 2: An Overview of Lake Area Technical Institute
LAKE AREA TECHNICAL INSTITUTE
2017 Recipient of the Aspen Prize for Community College Excellence
This point paper is a brief overview of the high points for
Lake Area Technical Institute since our 2015. Much of the press
and national level engagement stems from our Aspen Prize
recognition.
New Mission Statement reflects new definition of success: Lake Area
Technical Institute: superior, comprehensive technical education that
changes lives and launches careers.
Philosophy: What is different about Lake Area Tech? Some things we
believe:
Success is defined as placement rather than graduation.
College is a pathway, not a destination.
It about what a student wants to be. Changes the
conversation, the motivation, and the connection.
We do not place students, we give them the skills
(soft and hard) and opportunities to be placed.
Connections are key to student success
Every job is important to student success. Faculty are
student advisors, guiding them through college and into
their career. Staff in all positions mentors students.
Lake Area Tech fosters a culture of caring.
Statistically it is more important for students to make a
meaningful connection on campus than any other student
success factor.
We tell every student ``Be around people who care
about you and care about those around you, and you will
both succeed''.
The community and industry play key roles in student
desire and confidence.
LATI new Scholar Stone connections current students
with Alumni and heritage.
Lake Area Tech is committed to a participatory management
approach and a continuous planning process.
Community/Industry connections, support, and oversight are
crucial to LATI's culture and success.
Efforts to engage industry in student success.
Added two Business Partnership Specialist position to
further enhance industry's understanding of their role in
student success.
LATI Community and Business ``Learn where you Earn''
pilot projects underway.
Success Indicators:
Enrollment: 13 consecutive years of enrollment growth; the
student population is at the level projected for 2033.
Retention: 83 percent, highest in the Nation. WalletHub
cites LATI #1 graduation rates as 20 times that of some
community colleges.
Placement: Increased from 98 percent to 99.12 percent
employed or continuing education. Two programs had average
graduate salaries over $50,000 per year six months after
graduation.
Native American: Graduation rate increased to 68.75 percent.
Placement of 100 percent. Average salary after graduation
higher than their peers.
Low-income students: Retention is up. 8 percent gap in
graduation from their peers has been removed, in fact last year
low-income students outperformed their peers in graduation rate
(84 percent to 79 percent).
Dual Credit: Our high school dual credit program has
doubled. This semester we are providing over 1,000 credit hours
of dual credit to area HS students.
Build Dakota Scholarship program: Key success factor to
keeping college affordable. Couple with Governor's buy down of
$10/credit on student tuition.
Overwhelming Community Support:
K-14 System: Lake Area Tech and the Watertown School
District are uniquely a true K-14 system. In Fall 2014, high
school students across the state are enrolled in over 1,000
dual credits.
Community Embrace: The Watertown community embraces our
students and our mission.
Industry Advisory Boards: Each program engages industry
advisory boards to ensure our graduates meet the need of
industry. Over 500 business and industry partners participate
in educating and employing our students.
Addressing our growth needs: Seeing LATI need for future
growth and the potential lack of state funding, the community
has stepped forward and formed the ``Creative Finance Advisory
Committee'' focused on providing funding options for LATI
(recent endeavor).
Build Dakota Scholarships (BDS). T. Denny Sanford and
Governor Daugaard contributed $50 million to fund full-ride
scholarships in high-demand workforce programs starting in Fall
2015. Industry partners added $185,000 through the Stretch the
Million program that matches the industry contribution of 50
percent of the full-ride scholarship with Build Dakota funding.
Amendment R. The voters of the state passed an amendment to
South Dakota's constitution recognizing the technical
institutes and solidifying our workforce development mission.
House Bill 1182: The legislature passed a sales tax to, in
part, help SD technical institutes offer industry competitive
salary adjustments to recruit/retain instructors.
President Barack Obama, 2015 Lake Area Tech Commencement Address (93rd
such address in U.S. history by a sitting President)
(EXCERPT from White House release)
``Well, the reason is because I believe that in a fast-paced,
hyper-connected, constantly changing world, there are few institutions
that are more important to America's economic future than community
colleges. And there are few community colleges that are as important as
Lake Area Tech. This school is leading the way.
Compared with other community colleges, the graduation rate at Lake
Area is more than three times the national average. Three times.
(Applause.) Within six months, 98 percent of those graduates--you--are
either employed or continuing your education. The average Lake Area
graduate who enters the workforce earns nearly 50 percent more than
other new hires in this region. And as has already been noted, since
2011, there has been an award for excellence called the ``Aspen
Prize.'' It's basically the Oscars for great community colleges. Only
two community colleges in the country made the top 10 every year the
prize has been awarded--and one of them is Lake Area Tech. (Applause.)
This is not an accident. It's the result of a relentless focus on
teaching real-world skills that lead directly to a job. In your time
here, you've done hands-on work with companies across the upper
Midwest. Employers even help design the curriculum. You work direct
with the tools and the technology that you'll encounter in the
workforce--from car engines to welding equipment to your new
MakerSpace, with 3D printers that were actually built by Lake Area
students. And your instructors haven't just taught you new skills--
they've helped place you in new careers.
And you might think all this attention on job training comes at the
expense of great teaching--but if anything, the opposite is true. This
is the kind of place where students are on a first-name basis with
their instructors. If you call at 10 p.m., they'll answer your call--
although I hope you don't do that, because folks need their sleep. If
you don't make it to morning classes, they'll check up on you and make
sure you're okay. I heard one student who skipped school to go hunting
found that out the hard way that somebody was going to check up on you.
(Laughter.) One of today's graduates, Colin Blume--where's Colin? Raise
your hand. (Applause.) Stand up, Colin, just so you--hey, that's Colin.
Colin is a big guy, by the way. So Colin--I'm going to quote Colin on
this. He said, ``You're family, and they'll do anything to help you
along the way.'' ''
______
International press story on LATI: Prompted by Aspen notoriety,
LATI was featured in ``The TakeAway'', which is daily news show out of
New York City, but broadcast nationally, the title of article is:
What's the secret to a nation full of successful community colleges?
South Dakota may have the answer. They highlight LATI's ThinkBIG
program. The Takeaway is an award-winning daily news show produced by
WNYC in partnership with The New York Times and Public Radio
International. The show airs across the country on more than 200
stations, reaching upwards of 2 million listeners nationwide. Their
goals include deepening public understanding of the role of community
colleges in driving economic growth and expanding social mobility in
America. ``The TakeAway'' featured LATI in two stories:
Story 1: http://www.wnyc.org/story/introducing-lake-area-
technical-institute/
Story 2: http://www.pri.org/stories/2015-11-18/whats-secret-
nation-full-successful-community-colleges-south-dakota-may-have
(The audio interview is what is actually airing.)
______
PBS Documentary features LATI. The series ``Dropping back in'' is a
documentary produced by Kentucky Education TV, and was about 14 months
in the making. LATI is featured in the fourth episode, highlighting our
commitment to student success of underprivileged students. The LATI
segment in the bottom left-hand side segment (titled Lake Area
Technical Institute) on the linked page: http://www.droppingbackin.org/
the-stories/
Other Stories of our Success:
Only college in the Nation to finish the Aspen Prize
competition as a Finalist with Distinction all three times.
Participated in the Championing Completion of Low Income
Students strategy session with Dr. King, the U.S. Secretary of
the Department of Education, as one of only two community
colleges represented.
Selected to author a case study for the Aspen Institute's
leadership curriculum. This curriculum for Aspen's Presidential
Fellowship program demonstrates LATI's unique approach to
problem solving and student success.
Invited by the White House to participate in the College
Promise/Heads Up, It's on Us, & College Affordability
campaigns.
Low Income Student Success: LATI was featured in an Aspen
Institute publication ``Structural Equity: Big-Picture Thinking
& Partnerships That Improve Community College Student
Outcomes'' for improving the graduation rate of Pell Grant
recipients from 8 percentage points behind non-Pell students to
surpassing the average graduation rate for all students.
Hosted the White House Administration for a session on the
College Promise Campaign at the annual Western Interstate
Commission for Higher Education annual conference.
Highlighted National Accolades:
Aspen Finalist with Distinction (2011, 2013, 2015)
Presidents Community Service Honor Roll--seven times named
Honor Roll designations, over 80,000 hours of community service
and community learning annually
Military Friendly Designation--seven years
Marcom National Marketing Awards--Platinum Award winner for
marketing (twice) and Gold awardees multiple times
Digital Community Colleges--Top 10 in the Nation two years
in a row
Great Colleges to Work For--7 years with Honor Roll
distinction
Numerous online awards: WalletHub, Niche, etc.
The Chairman. Thank you, Colonel Cartney.
Mr. Neely?
STATEMENT OF JOHN J. NEELY III, VICE PRESIDENT,
LAW AND PUBLIC AFFAIRS, GULFSTREAM AEROSPACE
(A GENERAL DYNAMICS COMPANY)
Mr. Neely. Mr. Chairman, Ranking Member Nelson, members of
the Committee, on behalf of Gulfstream's 15,000 employees, I'm
honored to be here to talk to you about this very timely and
important subject. It's important to industry, absolutely, but,
quite frankly, it is much, much more important for the
individuals in this country whose talents are going untapped.
That's just a shame.
As context for my remarks, Gulfstream's business--we
design, manufacture, and provide maintenance services on
business aircraft. Our headquarters and largest manufacturing
facilities as well as our largest maintenance base is in
Savannah, Georgia, where we have approximately 10,000 of our
total 15,000 employees. We also do business in six other
states.
Very significantly, I think, for this Committee and the
competitiveness issue that we're facing--not just competitive
within the U.S. but certainly competitive internationally--all
of Gulfstream's key competitors are international. We have
Bombardier in Canada, Dassault in France, and Embraer in
Brazil. Also significant in terms of balance of trade, 50
percent of Gulfstream's sales are international. In previous
years, that has been an even higher percentage.
Very significantly, if you go back and look at
approximately the last 20 years, that international component
has grown to what, previously, I like to say from the Wright
brothers through the early 2000s, was pretty consistently about
20 percent international. Since the mid-2000s, we've seen that
anywhere from 50 percent to as high as 70 percent in one given
year. So this is very important to competitiveness and balance
of trade.
I think it's fair and clear to say that in any company, the
most valuable asset that company has is its people, and that is
particularly true at Gulfstream, given the nature of our
advanced manufacturing and very high-tech maintenance work that
we do. With that in mind, over the last several years--and,
frankly, the last 10 years, in particular, as we've experienced
significant growth--we've evolved a multifaceted strategy for
dealing with the issues that we're here addressing today.
That strategy has four focal points, and they are: first,
elementary, middle, and high school; second, technical school
engagement and recruiting; third, military engagement and
recruiting; and fourth, of course, universities for our
engineering and other related skills that require, indeed, 4-
year degrees.
I'll make an important aside here to pick up on a comment
that Senator Nelson made in terms of the quality of skills and
leadership coming out of the U.S. military. He is absolutely
right, and I'm very proud to say that as a direct result of
that, nearly 30 percent of Gulfstream's U.S. employees are U.S.
veterans, and that's not a coincidence. That's the case because
we find that the U.S. military does an excellent job training
in technical skills, avionics, mechanics, any number of other
hands-on skill sets, and they also come out of the military, of
course, with a strong work ethic and an understanding of what
leadership means and how to operate in a complex environment.
So, Senator, you could not be more accurate in that regard.
Back to our strategy, a cornerstone to this all-of-the-
above, this multifaceted approach that I just described--a
cornerstone of that is something that's been front and center
in the comments that everybody in this room has made so far
today, and that's awareness. By far, the biggest problem that
we face in this area is awareness that these opportunities
exist, awareness that these jobs are excellent jobs, awareness
that in addition to being excellent jobs they can be personally
rewarding and they can be very financially rewarding.
An airplane mechanic coming in making six figures is
absolutely reality, and that career path can take you off the
shop floor into other areas, and that's something that we
really have to struggle to get across. And getting it across
is, of course, important to the students, but, frankly,
probably more importantly is getting it across to the parents
and the teachers, not to have a kid come home and say, ``I was
at Gulfstream and I saw this great job being an airplane
mechanic, and Mom and Dad, that's what I want to do,'' and have
the parent look at the child and say, ``My God, the kid's a
failure--doesn't want to go to 4-year college.'' That's a
tragedy.
There is good news, and this is an important point. Without
exception, in every state in the union where we do business,
awareness amongst local, state, and Federal leaders is high and
getting higher. Now, we do have a lot of work to be done to
close this gap, but I'm thrilled to be able to report,
certainly from our perspective, that we're on the right track.
Momentum is building, but let's please keep that momentum
going.
Thank you for your time.
[The prepared statement of Mr. Neely follows:]
Prepared Statement of John J. Neely III, Vice President, Law and Public
Affairs, Gulfstream Aerospace (a General Dynamics Company)
Mr. Chairman, Ranking Member Nelson, and members of the Committee,
thank you for the opportunity to appear before you today.
I am honored to be here representing the 15,000 women and men of
Gulfstream Aerospace. The issues being addressed here are critically
important, and timely. They are important to advanced manufacturing
companies like Gulfstream, and even more important to the individuals
in this country who are missing great opportunities because their
talent is left untapped.
The most valuable asset of any company is its employees, and that
is particularly true at Gulfstream. With that in mind, we have evolved
a workforce development strategy for the many technical skills required
in our business. Although this effort is very much a work in progress,
Gulfstream is honored to share our experience with this Committee.
1. Gulfstream Operations Overview
As context for my remarks, it is important to understand
Gulfstream's operations. We have two distinct but very interrelated
lines of business. First, we design, manufacture and sell business
aircraft. The second distinct area is our Gulfstream aircraft
maintenance, repair and overhaul (``MRO'') business, which we refer to
as Product Support.
Our current production models include the G280, G550 and G650/
G650ER, all of which are currently in-service with customers, plus the
G500 and G600 that both are in flight test working towards Federal
Aviation Administration (``FAA'') Certification.
Although the majority of our aircraft are used in traditional
business aircraft roles, we have a strong and growing business with
Special Mission configurations. This business is well illustrated by
our highly successful SIGINT programs with Israel--the SEMA and CAEW
Programs--and a similar configuration currently competing for the USAF
JSTARS and Compass Call programs.
Our business is very international from both competition and sales
standpoints. All of our key competitors are located outside of the
United States: Bombardier in Canada, Dassault in France and Embraer in
Brazil. With sales, approximately fifty percent (50 percent) of our new
aircraft sales are in the United States and approximately fifty percent
(50 percent) are international. From a balance of trade perspective, it
is instructive to note that the percentage of our international sales
has grown over the last fifteen (15) to twenty (20) years from roughly
twenty percent (20 percent) to fifty percent (50 percent).
Gulfstream's corporate headquarters, largest manufacturing site and
largest MRO base are in Savannah, Georgia, where approximately ten
thousand (10,000) of our fifteen thousand (15,000) person workforce is
based. Our operations also include the following facilities:
Locations with both Manufacturing and MRO Operations
Long Beach, California
Dallas, Texas
Appleton, Wisconsin
Locations with MRO Operations
West Palm Beach, Florida
Brunswick, Georgia
Westfield, Massachusetts
Las Vegas, Nevada
2. Gulfstream's Workforce Development Strategy
Over the past ten (10) years, Gulfstream has become increasingly
proactive in nurturing and recruiting new talent for our technical
jobs. We have done so by focusing on four areas:
Elementary, Middle School and High School Student Engagement
Technical School Engagement and Recruiting
Military Engagement and Recruiting
University Engagement and Recruiting
This work also is supplemented by our post-hire internal training
programs, which include initial training and advanced training using
our own employees and, for advanced maintenance and pilot training,
FlightSafety International.
A foundational point underpinning this strategy is that our younger
generations need help understanding what great opportunities are
available in technical fields, and how to take advantage of those
opportunities. This awareness work must include students and, likely
more importantly, their parents and teachers. So, our approach is to
start with young students to build awareness, build desire and, through
mentoring and other resources, guide them down the path towards those
goals.
We continue this same basic approach for Technical Colleges,
Military and Universities, but with a more direct connection between
the individual and a specific job at Gulfstream for which that person
is suited.
3. External Workforce Development Resources
Although we indeed do have a technical skills gap in this country,
there is a good news side to this story. As evidenced by this hearing
itself, there is a growing understanding of the problem and a
corresponding application of resources to address it. Gulfstream's
experience, in every state in which we do business, is that local,
state and Federal organizations are investing in new ideas and
approaches for changing the paradigm.
Gulfstream's workforce development strategy relies very heavily on
these external resources. Indeed, you will hear several examples as I
review Gulfstream's specific activities.
On this point, I want to thank the Committee for including in the
Senate-passed FAA Reauthorization bill last year a section regarding
safety workforce training for the FAA. This section focuses on
knowledge sharing opportunities between the FAA and industry in new
technologies, best practices, and other areas of interest related to
safety oversight. It also fosters an inspector and engineer workforce
at the FAA that can implement successful risk-based approaches to
safety. Gulfstream strongly supports this initiative and the entire
certification title. We hope Congress can pass the entire package of
certification reforms this year to benefit safety, competitiveness, and
job growth in the industry. Fully utilizing ODA authorities, and
facilitating validation and acceptance of FAA safety standards and
product approvals globally, is critical and time-sensitive. Continued
progress on workforce training and these reforms will leave U.S.
industry in a much strengthened competitive position.
4. Elementary, Middle and High Schools
Gulfstream engages younger students because, in our view, building
awareness and excitement early on helps guide students in their
academic decisions, and other life choices, during those formative
years. For example, a ninth grader who is excited about a career as an
aviation mechanic will have a very different perspective on his or her
math and science courses than a classmate with no particular career in
mind.
Our younger student engagement falls into two categories: targeted
individual student engagement and awareness activities. These two sets
of activities work well together by raising awareness across a large
population while, through the targeted engagements, providing in-depth
substance that validates the message with real world successes.
a. Targeted Student Engagement
Youth Apprentice Program (``YAP'')
Gulfstream's YAP, which we operate in partnership with local High
Schools, allows students to earn High School credits while earning
money working part time during the school year at Gulfstream. This
provides real world experience to students, and hands-on mentoring by
their direct supervisors and co-workers, which they use to identify and
further their personal career paths.
Our 2016-17 YAP has approximately seventy (70) High School Juniors
and Seniors in Georgia, California and Texas. They are working in
thirty-seven (37) different job functions, including aircraft assembly,
cabinet shop, quality control, accounting, aircraft maintenance
operations, engineering and our Advanced Aircraft Integrated Test
Facility. Just like a potential full-time employee, students fill out
applications, apply for specific jobs using the same computer-based
system used for full time employees and are interviewed in person by
their hiring manager. Once hired as apprentices, they work fifteen (15)
to twenty five (25) hours per week, are paid ten dollars ($10) per hour
and earn High School Credits for their work.
An important aspect of this program is its ability to correlate
students' academic study with future job prospects. An apprentice can
see first-hand that math and writing skills, for example, are necessary
for their future success and not simply abstract concepts without any
connection to their future success.
Technical/Vocational High Schools
The increase in High Schools with specific technical curricula is
an effective tool in this area as well. By incorporating courses
directed at specific technical careers, these schools bring technical
career opportunities quite literally directly into the classroom.
Gulfstream supports a number of these schools with funding,
equipment and mentors, and we encourage others to do so. Technical High
schools with which we are involved include Woodville-Tompkins Technical
and Career High School (Aviation, Manufacturing--Georgia), Westfield
Vocational School (Aviation--Massachusetts), West Michigan Aviation
Academy (Aviation--Michigan) and Effingham County College and Career
Academy (Engineering--Georgia).
Dual High School and Technical College Enrollment
An example of another program with similar impact is Georgia's Dual
Enrollment Program. This allows High School students with an interest
in technical jobs to take courses at one of the State's Technical
Colleges and simultaneously earn credits toward both High School
graduation and a Technical College Degree.
Programs like this get High School students actively engaged in
making career choices while also expediting their entry into the
workforce, and financial independence. We encourage support for
programs such as this, and are interested in exploring a combination of
this type of program with apprenticeships.
Student Leadership Program (``SLP'')
In addition to the gap in technical skills themselves, many young
students also lack the needed soft life-skills and ability to make an
informed decision about their own careers. To address this issue,
Gulfstream started SLP in 2008 as a means to mentor at-risk High School
students and help them develop life skills, explore the many available
career paths and, by their Senior year, develop and implement post-
graduation career plan for themselves. Since then, Gulfstream has
expanded SLP to Brunswick, Georgia and Appleton, Wisconsin.
SLP in Savannah, for example, is a four (4) year program that
begins in the students' Freshman year. Mentoring sessions are
facilitated by a professional team retained by Gulfstream, and
volunteer mentors drawn from Gulfstream and approximately forty (40)
other area businesses. Of the 1,500 applications typically received
each year, one hundred fifty (150) students are selected for the
incoming Freshman class. Once selected, the students who remain with
the program stay together throughout their four (4) years of High
School.
Freshman year is focused on developing students' soft skills such
as appropriate work attire, etiquette and interview skills. Throughout
the remaining three years, students explore available career
opportunities in detail--e.g., trades and Technical Schools, military,
four-year degree programs--select their desired path, develop a
specific plan for doing so and execute that plan so that they graduate
and step right into the next phase of their life.
Approximately ninety-six percent (96 percent) of the enrolled
students since inception remained in the program through graduation. In
light of the significantly lower graduation rates for these schools,
Gulfstream is proud if this program's success.
b. Awareness Activities
Gulfstream, like many companies, engages in a wide range of
activities to raise awareness among students, parents and teachers.
Here are a few examples of our activities in this area.
Job Shadow Programs
Our Westfield, Massachusetts, and Dallas, Texas, facilities both
have successful job shadow programs. In Westfield, we partner with the
Westfield Vocational Technical High School, which has a robust aviation
program, to bring students into our MRO facility and shadow our
aircraft maintenance technicians during their work day. This effort is
part of the FAA's ``Walk In My Boots'' initiative aimed at exposing
students to the benefit of an aviation maintenance career.
Similarly, in Dallas, we partner with local High Schools and host
students for two days of aviation job experiences. Activities include
wiring the avionics for an aircraft, working with sheet metal, making a
sales pitch and visiting Dallas Love Field's control tower.
GAMA/Build A Plane Aviation Design Challenge
Gulfstream also supports the General Aviation Manufacturer's
Association (``GAMA'')/Build A Plane Design Challenge, which started in
2013 as a way to introduce High School students to aviation careers.
For this competition, schools receive student and teacher copies of the
Fly to Learn curriculum and software powered by X-Plane. Over the
course of six weeks, they learn about topics such as the four forces of
flight, aspect ratio, and even advanced subjects such as supersonic
flight. They then compete in a fly-off that requires them to modify a
virtual airplane to fly a specific tasked mission in a simulator. GAMA
takes into account the score from this flyoff, as well as a checklist
of the steps they took to complete the flight, a summary of the design
changes they made to the airplane, and three videos submitted
throughout the competition on what they learned.
Weyauwega-Fremont High School in Weyauwega, Wisconsin is the winner
of the 2016 GAMA/Build A Plane Aviation Design Challenge. As the prize,
four students, one teacher, and one chaperone traveled to Glasair
Aviation in Arlington, Washington, to build a Glasair Sportsman
aircraft. For the winning team, the hands-on experience working side-
by-side with experts as they build a real airplane is phenomenal.
STARBASE
Gulfstream partners with the U.S. Department of Defense to sponsor
week-long camps for fifth-grade students at Hunter Army Airfield in
Savannah, Georgia. The program offers ``hands-on, mind-on'' activities
meant to spark student interest in STEM programs. Students interact
with military personnel by working on computers, flying aircraft
simulators and participating in other hands-on activities.
5. Technical Colleges
In Gulfstream's business, Technical Colleges are a critical
pipeline for developing tradesmen and craftsmen for work in our
manufacturing and MRO operations. Although these schools' existing,
standard programs provide a solid skills development base, our most
valuable work with them has been in situations where we have helped
develop the curricula.
Georgia's High Demand Career Initiative is an excellent example of
this approach. This initiative recognizes that manufacturing and other
technologies are changing so rapidly that it is difficult, if not
impossible, for schools to keep their curricula aligned with companies'
needs. That is true with current needs, but even more so for what
industry will need in three (3), five (5) or ten (10) years. To solve
this problem, this initiative seeks to bring companies into the schools
to help plan and develop course content. Significantly, this can be
part of a full degree program or simply for a Certificate program in
which a student need only invest a number of weeks or months to earn a
Certificate that demonstrates that they have specific skills for a
specific job.
This joint development can range from simply including industry on
Advisory Boards, to the other end of the spectrum where a business co-
develops and even co-teaches a course. Several examples from
Gulfstream's experience, we believe, will give the Committee insight.
Example: A&P School
Gulfstream's MRO operations are an important, and growing, part of
our business across the country. FAA regulations require that aircraft
maintenance technicians have an FAA-issued Airframe and Powerplant
license (an ``A&P License''). Given our need for qualified A&P
technicians, we partnered with the A&P School of the Savannah Technical
College, which is part of the Technical College System of Georgia, to
ensure that its courses aligned with our needs.
The school appointed our experts to the Advisory Board. Gulfstream
donated equipment to the school to provide the students with real-world
equipment, including a complete Gulfstream aircraft--a model G100 that
had reached the end of its useful life. By being an active participant
in the A&P School's curriculum development, and ongoing class work, we
are able to help the faculty stay aligned with the latest industry
techniques and get to know the students.
Example: Advanced Cabinet Maker Course
As an excellent example of the in-depth approach, a number of years
ago Gulfstream was having difficulty finding skilled cabinet makers to
build furniture for our aircraft interiors. To address this issue,
Gulfstream partnered with Savannah Technical College. In doing so, we
learned that other area businesses in the boat and home construction
industries were having similar issues.
Gulfstream paired our cabinet shop master craftsmen with the school
to develop a course. We also provided a master craftsman to co-teach
the course with the school's faculty. This provided the double-benefit
of ensuring that instruction matched our requirements and it allowed
our instructor to identify the top students for recruitment to
Gulfstream.
Example: Basic Skills Course
Gulfstream has difficulty finding qualified entry-level candidates
for our manufacturing operations. Illustrating the breadth of the
skills gap in some areas, one candidate for sheet metal work--whose
resume suggested that he had basic skills--was asked in a shop setting
to bring the instructor a Phillips head screwdriver. His response was
to ask the instructor whether that is the one that looks like a ``plus
sign'' or a ``minus sign.'' Clearly, that person did not come with the
necessary basic skills to enter Gulfstream's manufacturing workforce.
To help address this, we are partnering with the local Technical
College to develop a basic skills Certificate course. Although still in
development, the most likely approach is to develop a set of specific
skills tests and a course for teaching those skills. Candidates who
believe that they already have the necessary skills would take the
hands-on tests, and by passing obtain their Certificate without taking
the full course. Candidates without those skills coming in, of course,
would go through the full course.
Example: Manufacturing Technology Transition Training
Gulfstream's G650, which first entered customer service in 2012, is
built using significantly different manufacturing techniques than
aircraft produced previously. Consequently, ramp up of that production
line necessitated transition training for our existing employees moving
from other aircraft to the G650.
To assist, we enlisted the help of Georgia's Quick Start Program.
Quick Start, which is a part of the Technical College System of
Georgia, offers tailored employee training services to qualified
companies. Quick Start instructors paired with our team to develop
transition training programs for specific, proprietary manufacturing
techniques used for the G650. Because the program's mandate allows it
to enter into Proprietary Information Agreements with its customers,
Gulfstream was able to use this resource without jeopardizing our
valuable trade secrets.
6. Military
Recruiting from U.S. Military Veterans is a vital part of
Gulfstream's strategy for finding employees with the necessary
technical skills. As direct evidence of that fact, nearly thirty
percent (30 percent) of Gulfstream's domestic employees are U.S.
Military Veterans. This high percentage is a testament to the quality
of training within our Armed Services, and to the cultural fit between
them and Gulfstream.
Gulfstream recruits veterans heavily because of the combination of
technical skills, disciplined work ethic and leadership skills that
they so consistently demonstrate. Aircraft maintenance and avionics
technicians, for example, come to Gulfstream with skills and experience
that enable them to quickly integrate into our operations.
To recruit Veterans, we use a proactive, comprehensive approach
that includes extensive in-person outreach to military bases--including
participation in Transition Assistance Program Classes at those bases--
customized Veteran recruitment advertising, and active participation in
a number of Veterans organizations.
7. Engineering Universities
Our engagement with Universities relies heavily on our intern and
co-op programs with those schools. Also, in keeping with the High
Demand Career Initiative concepts discussed above, we are becoming
increasingly active in providing input on specific skills-needs and
engaging students in for-credit research projects that complement their
skills development and our research needs.
Like many companies, we have intern and full co-op programs in our
engineering department. Interns and co-ops are hired through a
competitive selection process. While working, they are paid a
competitive hourly wage and receive 401k and life insurance benefits.
Gulfstream also provides housing for students who do not live in the
local area. In 2016, we had one hundred eighty seven (187) interns and
one hundred sixty two (162) co-ops.
Interns typically work during their summer breaks. Co-ops alternate
between a semester of school and a semester at Gulfstream, and must
complete three (3) semesters at Gulfstream.
These programs provide an excellent resource for hiring students
with the right skills, and as importantly the right cultural fit, for
Gulfstream. Students work alongside our full-time engineers our various
programs. They also rotate between departments within engineering, so
that they and we can find the best fit.
The success of these programs is demonstrated by the hiring. Over
ninety percent (90 percent) of Gulfstream's entry-level engineering
positions are filled through our intern and co-op programs.
In keeping with the High Demand Career Initiative, we have
developed and continue to mature our partnership agreements with
Universities. These agreements include both formal and informal
arrangements for research projects, mini-sabbatical opportunities for
faculty to work at Gulfstream and Gulfstream participation in Advisory
Boards.
Mr. Chairman, Members of the Committee, I thank you for the
opportunity to share Gulfstream's experience in this critically
important area of skilled, technical workforce development.
The Chairman. Thank you, Mr. Neely.
Ms. Marks?
STATEMENT OF JUDITH MARKS, CHIEF EXECUTIVE OFFICER, SIEMENS USA
Ms. Marks. Thank you, Mr. Chairman, Ranking Member Nelson,
and members of the Committee. It's an absolute privilege to
testify here today.
As the CEO of Siemens here in the U.S., I'm proud to
represent our over 50,000 U.S. employees who are located in all
U.S. states and Puerto Rico. We have over 60 U.S. manufacturing
sites, and we're actually a net exporter. We've reported
revenue last year here in the U.S. of $23.7 billion, and $5.5
billion of that revenue came from products that were made at
our U.S. plants and shipped around the world.
So even though we are a global company, we're proud to say
we are U.S. local, and the U.S. is Siemens' largest market in
the world. Our U.S. customers rely on Siemens to add value to
their operations. Today, they're turning to Siemens to deploy
software, hardware, and digital technologies so that they get
the competitive advantage they need to retain and create high-
paying manufacturing jobs here in the U.S.
This new technology requires workers to have new skills
that simply weren't necessary in yesterday's manufacturing
environment. Today, workers need new skills, rooted in the STEM
fields, and they need education beyond high school. The
nation's training and education systems weren't initially ready
for this advanced manufacturing environment, and the skills gap
is the result.
At Siemens, we're now working to close this gap through
what we call industrial reskilling. We invest approximately $50
million annually for the training and continuing education of
our U.S. workforce, and we have also made a strong effort to
hire veterans. In the past few years, we've hired 2,500
veterans, training them on the technical skills they need to
work in our business.
We've also focused on broader workforce development goals
around three initiatives. First, we are adapting the proven
German style apprenticeship model to the U.S. market, where we
provide on-the-job training, working with our community college
partners to train workers. We started in Charlotte, North
Carolina, and we've since expanded it to three more states.
But we also wanted to encourage other companies to
replicate these efforts in the United States nationwide. So we
worked with Alcoa, Dow, the National Association of
Manufacturers, and the Department of Labor to develop a
playbook for other employers and manufacturers seeking to
launch similar programs.
Second, we're committed to helping students gain experience
working with the software and digital tools they will encounter
in advanced manufacturing. Earlier this month, we invested
three-quarters of a million dollars to help the University of
Central Florida open a new lab where students will learn how to
run a digital grid. UCF is one of many institutions in the U.S.
where, in just the past few years, Siemens has granted a total
of over $3 billion worth of our industrial software to
incorporate into the curriculums.
And, third, our Siemens Foundation, which I chair, is
shining a spotlight on the opportunities for young adults in
what we call STEM middle skill careers and on training models
that work. As part of that effort, we are a proud supporter of
the Aspen Prize that recognized the remarkable work of Colonel
Cartney and the faculty at Lake Area Technical Institute in
South Dakota. So as you can see, Siemens is eager to form
partnerships that serve to both close the skills gap and boost
U.S. competitiveness.
I want to close by sharing with the Committee our
additional commitments recently made to building a skilled U.S.
workforce. We're going to double the size of our apprenticeship
program here in the U.S., we're going to hire an additional
1,000 new veterans over the next three years, and we're going
to grant an additional $2 billion worth of our industrial
software to academic and training institutions. This software
is already used by 140,000 companies globally.
I thank you again for the invitation to testify and I look
forward to your questions.
[The prepared statement of Ms. Marks follows:]
Prepared Statement of Judith Marks, Chief Executive Officer, Siemens
USA
Chairman Thune, Ranking Member Nelson, and Members of the
Committee, thank you for inviting me to testify and share information
about how Siemens is working to close the skills gap and boost U.S.
competitiveness.
Siemens is a global technology company that stands for engineering
excellence, innovation, quality, and reliability. The company is using
its global leadership in engineering and technology innovation to meet
America's toughest challenges. From efficient power generation to
digital factories, from wellhead to thermostat, and from medical
diagnostics to locomotives and light rail vehicles, Siemens in the
United States delivers solutions for industry, hospitals, utilities,
cities and manufacturers. Siemens' next-generation software is used in
every phase of product development, enabling manufacturers to optimize
and customize equipment that touches American lives every day.
Siemens has been in the U.S. for more than 160 years. The U.S. is
now the company's largest market. In the past 15 years, Siemens has
invested approximately $35 billion in America, successfully
strengthening our U.S. presence while creating an even larger economic
ripple effect. Today, more than 800,000 U.S. jobs are linked to
Siemens' global business operations. We continue to invest in America;
most recently, Siemens announced its plan to expand its digital
industrial leadership with the acquisition of Oregon-based software
company, Mentor Graphics.
In the U.S. in Siemens' Fiscal Year 2016, the company reported
revenue of $23.7 billion, including approximately $5.5 billion in
exports. We directly employ approximately 50,000 people throughout all
50 states and Puerto Rico. With more than 60 Siemens manufacturing
sites, the U.S. is an extremely vital production location. It's one of
our most important research centers where we invest more than $1
billion in R&D annually and a key base from which Siemens exports
globally.
At Siemens, we pride ourselves on conducting business locally,
especially here in the United States. At our core, we are a company
that combines innovation with social responsibility. We believe our
mission extends beyond our customers, our employees, and our
shareholders. We also believe we must deliver lasting value to the
communities we serve.
In the U.S., one way we deliver this value is through our
commitment to helping the U.S. establish a new era of advanced
manufacturing, central to which are our efforts to build a skilled
workforce. Advanced manufacturing is core to our Nation's strengths in
research and development, in digital technologies, and in software
development. It enables the U.S. to focus on producing high-value goods
that support high-paying jobs. The skill requirements, however, have
become much more rigorous, and Siemens has both a business need and a
responsibility to help workers acquire these new, advanced skills.
Therefore, Siemens' workforce development efforts are addressing the
jobs of today as well as tomorrow. Our strategy is focused on workers
at all stages of their careers, from new entrants into the workforce to
dislocated workers seeking to re-enter, to current employees in need of
re-skilling. We call this industrial reskilling.
We invest approximately $50 million annually for the training and
continuing education of our own U.S. workforce. Additionally, we are
helping to build a new ecosystem of public and private sector
partnerships that forge pathways to 21st century manufacturing skills
and to economic security.
Siemens' technology supports dozens of industries and hundreds of
thousands of companies worldwide, and we understand the skills required
to operate the technology. This knowledge is enabling Siemens to work
closely with academic and training institutions to create a new and
successful formula to address the skills gap.
21st Century Manufacturing Skills
In the days since the Great Recession, manufacturing jobs have
started to come back. What has also come back is a national
appreciation for the critical role our manufacturing sector plays in
supporting the American dream. There is universal support for creating
and retaining U.S. manufacturing jobs.
Former skill requirements for manufacturing and industry were
primarily the willingness to work hard in physically demanding
environments and learn repetitive tasks. In the 21st century, strong
work ethic is only part of what is required. Today workers need to have
technical skills earned through training and knowledge in science,
technology, engineering, and mathematics--or STEM--earned through
education beyond high school. A high school diploma alone is no longer
a viable ticket to a manufacturing career, reflecting larger changes
throughout our new, digital economy.
As evidence of this, during the Great Recession, 80 percent of
workers who lost their jobs had only a high school diploma. As jobs
came back, workers with at least some college education filled more
than 95 percent of new positions created.i Now, as we look
ahead to 2020, two out of three jobs will require some postsecondary
education, when, in the 1970s, three out of four jobs required a high
school education or less.ii
---------------------------------------------------------------------------
\i\ https://cew.georgetown.edu/cew-reports/americas-divided-
recovery/
\ii\ Ibid.
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The skills gap is a reflection of this new reality. According to a
Business Roundtable survey that Siemens participated in, 97 percent of
member CEOs said that the skills shortage is a problem.iii
Two-thirds of the companies were struggling to find qualified
applicants for jobs requiring advanced computer knowledge. Forty-one
percent of companies had a hard time filling jobs requiring advanced
quantitative knowledge, while 38 percent said at least half of entry-
level applicants lacked basic STEM literacy.
---------------------------------------------------------------------------
\iii\ Business Roundtable survey: http://businessroundtable.org/
issue-hub/closing-the-skills-gap
---------------------------------------------------------------------------
These numbers reflect our experience at Siemens, as well. Three-
quarters of our current 2,000 job openings in the U.S. require post-
secondary education in the STEM fields. Therefore, here are examples of
how Siemens is addressing the training gap.
Scaling up apprenticeships
When Siemens first expanded its advanced manufacturing facility,
the Charlotte Energy Hub, in Charlotte, North Carolina, the company had
a hard time finding people with the right skill sets to fill new
positions. This is when Siemens turned to its German roots--
specifically, the German-style apprenticeship model--as a guide to
creating public, academic and corporate partnerships to train workers.
In North Carolina, Siemens partnered with Central Piedmont
Community College on its four-year apprenticeship program. Students
attend classes at Central Piedmont Community College while getting paid
for hands on, on-the-job training. They will graduate with an
associate's degree in Computer Integrated Machining or Mechatronics,
will receive a Journeyman certificate from the state of North Carolina,
which is reciprocated by all 50 states and recognized by the U.S.
Department of Labor, and, in the end, a career at Siemens. In other
words, they get an international industry certification, a degree, an
apprenticeship completion certificate, and no debt. They also get to
enter into the workforce with a starting salary of around $55,000 a
year with a guaranteed job at Siemens upon completion of their
apprenticeship.
Based on the success of the apprenticeship model in Charlotte,
Siemens is creating similar programs around the country.
In Alpharetta, Georgia, the Siemens Testing Technician
Apprenticeship began in January 2015. The academic partner for this
program is Lanier Tech Community College. Plans are underway to start a
new Siemens Apprenticeship Program focusing on Manufacturing
Engineering & Quality, expected to launch in 2018.
In Sacramento, California, the Robotic Welding Apprenticeship began
in September 2015. Siemens, the Sacramento Employment & Training Agency
(SETA), and Los Rios Community College, have partnered to offer a
Welding Boot Camp to up-skill the local Sacramento population and
veterans, providing the necessary skills required to apply for a job as
a welder. Siemens also partnered with Los Rios Community College for
the American Apprenticeship Initiative, a multimillion dollar Federal
grant from the U.S. Department of Labor, which the college received to
work through public and private partnerships to expand registered
apprenticeships in the U.S.
We are now expanding the program in Fort Payne, Alabama, where
Siemens recently began an apprenticeship program for machinists at its
electrical component manufacturing plant.
Siemens also serves as an Apprenticeship USA LEADER, and is working
with the U.S. Department of Labor to expand apprenticeship programs
through revamped recruitment strategies and the registration of
additional programs.
Additionally, Siemens worked with Alcoa and Dow to develop a
playbook for other manufacturing employers seeking to build
apprenticeship programs.iv We wanted to share our best
practices in order to encourage other companies to join us in this
mission and make it easier for them to launch similar programs.
---------------------------------------------------------------------------
\iv\ The Playbook is available in the appendix. LINK TO PLAYBOOK--
http://www.themanu
facturinginstitute.org/ /media/53456D700856463091B62D1A3DA262F4/
Full_Apprenticeship_
Playbook.pdf
---------------------------------------------------------------------------
Hands-on software training
Industry can help educators understand the skill sets needed to
operate their technology to ensure that classroom experiences are
relevant, but we have taken it a step further. Siemens is committed to
helping students' gain vital hands-on learning with real-world tools
and equipment while students are still attending educational
institutions.
Siemens is doing this today through Siemens PLM Software's Global
Opportunities in PLM program, which we call GO PLM. In just the past
few years, GO PLM has provided over $3 billion of in-kind software
grants. As a result, students have access to the same PLM software used
by more than 140,000 companies throughout the global manufacturing
industry to design, develop and manufacture some of the world's most
sophisticated products in a variety of industries, including aerospace,
automotive, medical devices, machinery, shipbuilding and high-tech
electronics. GO PLM provides technology to more than one million
students annually at more than 12,000 global institutions. It is used
at every academic level, from grade schools to graduate engineering
research programs.
Additionally, through the Siemens Cooperates with Education
initiative (SCE), community colleges are offering leading-edge
industrial technologies in their classrooms, research projects and
workforce development programs. SCE provides support through donating
equipment, granting software, and providing instructor training and
technical guidance. Hundreds of colleges and universities are actively
participating and have Siemens technologies deployed in their
classrooms.
Siemens is also expanding knowledge and capability in mechatronic
training in colleges and high schools throughout the U.S. and around
the globe. Through the Siemens Mechatronic System Certification
Program, operated out of Siemens AG's Digital Factory operations,
Siemens offers a tested, pre-packaged program to schools who want to
prepare their students for the advanced manufacturing jobs of the 21st
century. We've partnered with more than a dozen community colleges in
the U.S.
The STEM Middle-Skills Initiative
What many Americans traditionally think of as blue-collar jobs now
go by different names--technical or middle-skills. While many STEM jobs
require a bachelor's degree, a large percentage of these positions,
half by some counts, are obtainable by earning an associate's degree,
completing an apprenticeship program or completing training programs at
community colleges. This can be done inexpensively without adding to
the $1.3 trillion in student debt now shared by 42 million Americans.
In order to help advance opportunities for young adults in STEM
middle-skill careers, the Siemens Foundation, which I chair, launched a
workforce development program, the STEM Middle-Skill Initiative in 2015
to leverage the experience and expertise of Siemens as an industry
leader and pioneer in workforce development. The Initiative addresses
three clear objectives--elevating the economic opportunity available in
STEM technical careers in the national dialogue; rebranding the image
of these jobs and educational pathways to one of prestige, and
accelerating training models that work.
To shine a light on exemplary young adults in STEM programs at top
community colleges and promote the real story of opportunity available
in STEM middle-skill careers, the Siemens Foundation created the
Siemens Technical Scholars project in partnership with Aspen's College
Excellence Program. The Siemens Foundation is also a proud supporter of
the Aspen Prize for Community College Excellence, a recognition won
this year by Lake Area Technical Institute in the Chairman's home state
of South Dakota.
The Siemens Foundation is also working with the National Governors
Association's Center for Best Practices on scaling work-based learning
in states to expand the use of effective training models for young
adults in STEM fields. Through this partnership, Siemens and the NGA
are working with Indiana, Iowa, Montana, New Hampshire, Utah and
Washington to make effective work-based learning models for STEM an
integrated part of their education and training systems. To support
development, implementation, and assessment of the project plan, each
state received a grant of $100,000 and intensive technical assistance,
including participation in national meetings and a cross-state peer
learning network, and access to national experts, regular coaching
calls and site visits.
The Siemens Foundation also partnered with NGA and the U.S.
Department of Labor in the American Apprenticeship Initiative in order
to scale registered apprenticeships, and the public--private
partnerships that support them. We see strong ecosystems for
apprenticeships in countries like Germany and Switzerland, and the
Foundation is working with its partners to build and strengthen similar
ecosystems here in the U.S.
Recently, the Siemens Foundation, the JP Morgan Chase Foundation,
and NGA hosted a six-day trip to Switzerland and Germany for three
governors--Governors Daugaard (SD), Fallin (OK), and Bevin (KY)--joined
by top state policy, education and business leaders to experience the
apprenticeship and career and technical education system first hand.
This is another initiative that will serve as a catalyst for new
workforce development initiatives in their home states.
In another project to help rebrand the image of STEM middle-skill
career opportunities, the Foundation partnered with Advance CTE, a
leading career and technical education organization, to help states
utilize proven messaging to attract more high school students, and
their parents, to STEM career and technical education (CTE) pathways.
Four states--Indiana, Maryland, New Jersey, and Washington--will pilot
strategies this year and help us identify best practices for the rest
of the country.
Conclusion
In conclusion, I hope I have made clear that Siemens is committed
to proactively cultivating talent in our largest, most important
market--the U.S. In fact, recently Siemens announced additional
commitments to building the U.S. workforce in three critical areas:
Doubling Siemens' industry-leading apprenticeship program;
Hiring at least 300 new veterans per year for the next three
years up to at least an additional 1,000;
And by providing an additional $2 billion worth of in-kind
grants of our industrial software package to academic and
training institutions.
We are eager to continue to work with public and private partners
across government, economic development organizations, schools and
others to continue building a 21st century workforce and enhancing
opportunities in America.
The Chairman. Thank you, Ms. Marks.
Thank you all. Great testimony. I want to ask some
questions and give members of the Committee a chance to ask
some questions.
Mr. Ratzenberger, I'm well aware of the work that you have
done for some time in trying to impress upon Americans today
the importance of teaching hands-on skills at an early age, and
I know that for many of us up here--probably from an earlier
generation, when I was in high school, shop and industrial arts
were a required course. We had to take a mower apart and put it
back together and learn other things like that, and today, I
don't think those courses are even options for a lot of people.
So tell me why you think it's important that we expose
young people today, children at an early age, to that kind of
hands-on learning.
Mr. Ratzenberger. As we know, the brain is formed between
the ages of zero and 5 years old, and throughout history, all
the great tinkerers that have moved mankind forward, from Da
Vinci, Thomas Edison, Gutenberg, Steve Jobs, Benjamin
Franklin--they all tinkered as children. They didn't go to
school--Thomas Edison didn't go to school and say, ``I'm going
to learn how to make a light bulb.'' He, in fact, only had 3
months of formal education. Most of his time was hanging around
a shipyard in Lake Erie learning how to tinker, learning how to
form things, shape things, fix things, invent things. Same
thing with Steve Jobs. I actually had this conversation before
he passed away, and he liked working on cars with his dad.
So the more interested you get people into using their
hands--Leonardo Da Vinci was an illegitimate child, who was
ignored throughout his childhood. He hung around a farm. That's
where he became Leonardo Da Vinci. So by the time they get to
be 18 years old and graduate from wherever they're graduating
from, if they don't have the seed planted in them of using
their hands and shaping and forming things--and we can also
eliminate those trophies, the high self-esteem trophies that
we're so fond of giving out.
High self-esteem comes from making things. You make
something from scratch. You draw it, you shape it, you build
it. That's self-esteem, because you can look at it 30 years
later--I always do when I show my kids who are grown now--and
since they were little, I'd point out a roof of a building that
I'd put up during one particularly gruesome New England winter,
and every time we'd drive by, I'd say, ``Yes, I put the roof on
that.'' And when they were younger, they'd say, ``Oh, gee, Dad,
that's great, that's great.'' Well, once they got older, they
went, ``Yes, we know. You put the roof on.''
But, still, it's something you can point at. It's self-
esteem, and that's where it comes from. It never comes from
handing out a trophy for coming in 11th. You have to put your
hand to something useful, and that's what brought us to the
dance. So dance with the one who brought you, and it wasn't
theory that brought us here. It's somebody who knew how to use
tools.
The Chairman. Thank you.
Colonel Cartney, you spoke about the fact that technology
is a force multiplier, which does not decrease the number of
people that are needed, but instead enables people to do more.
Could you discuss in a bit more detail the impact that new
technology is having on the skills gap and how Lake Area Tech
is working to ensure that its students are prepared for this
workplace environment?
Colonel Cartney. Yes, sir. In almost any field that you
look at, technology is having a great impact. But even if you
look at, for example, manufacturing, when they put a robot in
the line, typically, that robot isn't put in the line to make
the same number of items they've made previously when a person
was there. It's put in line because it does it more effectively
and does it faster and with higher quality. But as soon as you
replace that person on the line with a robot, now you need
somebody that can maintain the robot, that can program the
robot, and, in addition, back in another plant, has to build
that robot.
So there has been concerns that we're going to technology--
and, technology is going to allow us to do more with less, and
my response to that is always; you never do more with less, but
you do more with something different, and that's what
technology is doing. But it's not reducing the number of
workers that we need. It's changing the types of workers that
we need.
The Chairman. You sort of got at this--and a number of you
did--that the whole notion that kids nowadays come up with this
idea that they have to have a four-year degree, and sometimes
there's a stigma attached to not doing that. How do you deal in
student recruitment for Lake Area Tech, for example, with that?
It seems to me at least one of the big bubbles we're going to
face in the future is a student loan debt bubble, because more
and more kids today are taking on so much debt, and it's going
to be very, very hard and take a really long time to pay it
back.
So is there an argument to be made, not only that there are
really good-paying jobs out there--and your placement rate, as
I pointed out earlier, is 99 percent, which is really
remarkable--but also an argument to be made that you can get
good jobs in the economy that pay higher than average wages and
also come out without a huge amount of student debt that you
might otherwise have if you went to a four-year institution.
How do you deal with that perception out there, that people
think--at least, some people think that they need to have that
four-year degree?
Colonel Cartney. Yes, sir. Well, in fact, we have a great
group of recruiters, first and foremost. They get into the high
schools. They even get into the middle schools and talk to the
students, and talk to the parents. But some of the big things
that people need to realize is when you talk about the
averages, and you look at what you're going to make with a
four-year degree, say as a business major, and then you look at
what the average welder makes, there probably will be a slight
edge for the person getting the business degree.
The problem is if your natural skills are to be a welder,
you're going to be a great welder, and you're going to have an
income that's extremely high, where maybe you'd be a mediocre
business person, and you would be on the lower end of that
scale. So a lot of times, people need to understand that they
need to really look at what it is they want to do in life, and
where their skills are at, before they decide that pathway.
That's why we focus on placement rather than graduation. When
our students are coming in, we talk about what do you want to
be, not what degree do you want, because for a high school
student, that's rather abstract for them.
So we combat it in a number of ways. The biggest thing that
we're now working on is we need assistance from industry,
because a lot of perception is that the jobs that people are
preparing for--they have an image of what those industries were
30 or 40 years ago. So now with the new workplaces we need to
re-image these occupations, because the manufacturing
environment isn't what it was 30 years ago.
The Chairman. Senator Nelson?
Senator Nelson. Thanks, Mr. Chairman.
Mr. Ratzenberger, I certainly agree with you. For a kid
putting together something, there's a real sense of
accomplishment.
Colonel Cartney, tell us what you think government should
do to help get more students into these fields?
Colonel Cartney. The biggest thing is what we're doing
today is an outstanding start in having people come forward and
talk about it. We found out that with Build Dakota, for
example; where, with industry, the state put up funds for
students to have full ride scholarships; what we found was the
conversations that that evolved as we were out talking about
Build Dakota and the great jobs that were out there; we've seen
an impact on Lake Area Tech and our enrollment that outweighs
the number of scholarships that we award.
So first and foremost is looking for ways to be a catalyst
for workforce development and a catalyst for the conversation.
That's probably the biggest things that I think the government
could do, along with some grant dollars. And also the Centers
of Excellence that I mentioned.
Senator Nelson. Ms. Marks, we are now seeing the solar
energy workforce increase by 25 percent and wind increase by 32
percent. For the first time, these jobs have surpassed some of
the traditional fossil fuel jobs. How has this market changed
or impacted your business strategy, and what investments is
Siemens making to prepare this workforce for these new jobs?
Ms. Marks. Well, thank you, Senator, for asking. We are
seeing a shift in the energy view and the energy independence
here in this country. But we think it's a mixed view in terms
of renewables versus some of our other offerings, if you will.
What we are doing to prepare is we've taken the model on that
was developed over the last 100 years in Germany, the
apprenticeship model.
In 2010, we expanded our factory in Charlotte, North
Carolina, and we needed 800 new employees. We actually closed
the facility in Canada and expanded here. We call it our
Charlotte energy hub, where we build gas turbines and
generators. And as most of you know, North Carolina was more of
a textile-driven state, and we needed technicians who had
mechatronics, mechanical aptitude, electronics aptitude.
So we worked together with Central Piedmont Community
College, because we do believe apprenticeships are local. We
helped with the curriculum. We brought over programs from
Germany, and we're proud to say our apprentice program, which
we've now replicated in three other states, offers to these
students the ability, as they leave high school or come back in
the workforce--the ability to work for us in a 4-year program,
get paid--we pay for their academic institution so they
graduate from the program with no debt, a guaranteed job, and a
journeyman's certification from North Carolina, which has the
ability to be used in any state from a reciprocity. So for us,
it's a business imperative to develop skills, and we're taking
it on with our apprenticeship model.
Senator Nelson. Mr. Neely, it's impressive that 30 percent
of your workforce at Gulfstream, the old Grumman Corporation,
is veterans. We already talked about trying to ease the
certificate problem. What more can the Federal Government do to
let those special skills of military personnel, once they get
into the private sector, to be utilized?
Mr. Neely. Well, this is part of the good news story, quite
frankly. The easing of the certification transfer burden--a lot
of progress on that. The Department of Defense has quite a
number of excellent transition programs, for example, programs
serving veterans in the last 180 days of their service that
engage in transition services so that--transition training so
that they are able to come right out of their active duty
service and right into a business, and we very much encourage
those kinds of programs.
It's a bit of a theme, I think, from the comments Ms. Marks
made about apprenticeships, that whether it's in a military
context or other context, where you can have some transition
period where you're blending that transfer of training and
transfer of culture, whether it's military or out of other
environments. That's important, and to the extent that programs
within DOD or elsewhere can help facilitate that--I think there
are opportunities that are already being realized, by the way,
to blend that kind of activity between the armed forces and the
technical college networks that are around the state. Those are
good examples.
Senator Nelson. You know some of the problems veterans have
when they get out on their own. Is your company specifically
trying to meet some of those problems, for example, on PTSD,
trying to spot it and get the veteran help?
Mr. Neely. We are. Yes, sir.
Senator Nelson. What do you do?
Mr. Neely. Well, I think a core and obvious fact is that we
have such a large percentage of employees that are, indeed,
veterans. There's a natural network. They look after each
other, and they know how to spot--of course, our H.R. people
are very attuned to that, particularly the ones that are
entering most recently, having done tours in Iraq and
Afghanistan, et cetera. So it's an awareness. It's a connection
between our resources that I just described and the local
facilities as part of the military operations and other local
hospitals, treatment centers, et cetera.
Senator Nelson. Thank you.
The Chairman. Thank you, Senator Nelson.
Senator Baldwin is up next.
STATEMENT OF HON. TAMMY BALDWIN,
U.S. SENATOR FROM WISCONSIN
Senator Baldwin. Thank you, Mr. Chairman.
What a great panel. This is really a wonderful opportunity
to hear from you. I represent a state, Wisconsin, which is
still one of the lead manufacturing states as a percent of our
workforce, close to 20 percent, and like you, Mr. Ratzenberger,
I get a chance to visit a lot of those manufacturing sites. I
know that's something you featured on your TV show, ``Made in
America.''
I want to get feedback on a number of the issues that you
have brought up during this panel, and I wanted to start with
this image issue. I think about--I appreciate the fact that you
shared your story of growing up and where you learned to
tinker, et cetera. All my hobbies are hobbies that--you know,
whether it's carpentry or sewing or whatever--where I get to be
hands-on and see the outcome of my endeavor quickly, unlike the
day job as a Senator, where sometimes the products of your
labor take a little bit longer.
But I'm working right now on a legislative proposal to
establish a grant program to help launch and scale registered
apprenticeships in targeted industries, like advanced
manufacturing, construction, energy, and more, and I hope I can
create a program that breaks through the stigma that employers
may encounter when recruiting workers to manufacturing. As the
co-founder of the Nuts, Bolts, and Thingamajigs Foundation to
help individuals discover their passion for making things, I
would like to ask you what you think we can do to structure our
apprenticeship programs to create a new image of manufacturing
and certainly to create incentives for young people to choose
careers that involve making things with their hands.
Mr. Ratzenberger. Thank you for that question, because it's
something I've put a lot of thought into, especially, you know,
coming from the Hollywood--the media, and that has a big
effect, because since the 1960s, anybody who worked with their
hands was denigrated on film or television. They were made to
look stupid. So why would a child growing up watching those
images want to be that?
We all know how powerful that the images coming out of
Hollywood are. Whether it's a big feature film or a sitcom or a
Saturday morning cartoon show, they insist on denigrating
anybody that works with their hands--the plumber, the
carpenter, the bricklayer. And to turn it all around simply, if
I could get Taylor Swift to sing a song that she likes guys
that know how to use tools--done. We'd have no problem.
[Laughter.]
Mr. Ratzenberger. Every kid out there would be rushing to
Home Depot and tooling up and learning how to use them, because
that's really where it comes from. It comes from the media.
Before that, before the 1960s, you were honored if you knew how
to do something, if you actually knew how to function. That's
really self-esteem, as I was saying before. But I think that's
where much of it comes from, is Hollywood's image.
Senator Baldwin. So really focusing on the branding is
going to be a huge piece of this.
Mr. Ratzenberger. I think so, especially where the parents
are concerned. I was on a radio show, and I got a call from a
lady whose husband was a stone mason, and she had six kids, and
the eldest one wanted to be a stone mason like his dad, and she
was worried. And I said, ``Well, what are you worried about?
The kid obviously loves his father and wants to follow in his
footsteps.'' She said, ``Well, I don't want the neighbors to
think my son is stupid.'' I wanted to crawl into that
microphone and just--you know.
But that's the problem. To say, ``Wait a minute. My son is
a plumber,'' that doesn't mean he's stupid. I mean, I know a
plumber who owns four apartment buildings. He probably paid for
them in cash. But, specifically, you have to know--again, if
you teach children how to use tools and form things, whether
it's wood or metal, not only are they learning how to make
things and getting real self-esteem, but they're learning the
fundamentals of algebra, fractions, equations, geometry. That's
what has to be used--a 90-degree angle, a 45-degree angle. But
that's the basis of all construction, and they're learning that
before they know what they're learning. So when they get into
high school, and the teacher draws something on the board--
well, they understand what that means.
So there's a lot of work to be done, and I'll be around for
a few more years, so just let me know what you need.
Senator Baldwin. Excellent. Thank you.
The Chairman. Thank you, Senator Baldwin.
Senator Capito?
STATEMENT OF HON. SHELLEY MOORE CAPITO,
U.S. SENATOR FROM WEST VIRGINIA
Senator Capito. Thank you, Mr. Chairman.
Thank all of you. I agree with Senator Baldwin. This has
been an excellent hearing.
Just by way of introduction, I represent a state, West
Virginia, that has a lot of great and highly skilled workers in
our state. Some of them are not working. I want to get--that's
my second question.
My first comment would be we're talking a lot about the
impetus of people who are feeling that they need to tell their
kids they have to get a four-year degree. There's still a vast
amount of people in this country who feel that even reaching a
two-year degree is too high a stretch for them, and that's why
I think programs such as Ms. Marks talked about at Siemens and
also the one that we have--we have one in West Virginia with
Bridge Valley Community and Technical College with Toyota--
gives those folks the opportunity that are getting out of high
school, and they can't afford to go to college, they don't
think they can go to college. It's a stretch for them. Nobody
in their family ever went to college.
But by combining the ability to be paid while they're being
trained and then, hopefully, have a job at the end of those 2
years or--usually, it's a 2-year program--I think is really a
good way to catch their eye and realize that this is not too
big a stretch. So there are folks on the other end of the
spectrum who think this is too tough a leap for us.
So I would like to say, also, I've seen a couple of things
in the elementary school that I think are going to be very
helpful to tinkering and getting people interested, and that's
these robotics programs that you're seeing in second, third,
and fourth grade, where they're realizing that they can build
things, they can make them move, and the excitement that you
see on the faces in the elementary schools. I think they're
really good.
I'm curious to know if any of your private companies are
involved in any kind of the robotics programs in the elementary
school. Does anybody have a comment on that?
Mr. Ratzenberger. Yes. There's a company out of Pittsburg,
Kansas, called Pitsco, and they supply most of the STEM
equipment nationwide. I think they're also the lead distributor
for Lego. But you can Google that, Pitsco, P-i-t-s-c-o.
Senator Capito. Good. Yes. Ms. Marks?
Ms. Marks. Thank you, Senator. Yes, we are involved in that
as an advanced manufacturing company. What we find is that so
much of this is local, and our employees feel so committed to
the communities in which they live that that's where they
actually become the coaches. We do the Siemens Science Days, K
through 12, but it is important that these skills and the
awareness happens very young.
Senator Capito. Mr. Neely, in terms of aerospace, we have
had a downturn in our coal industry, and we have a lot of out
of work coal miners who have magnificent skills. We've been
working to try to identify where the retraining opportunities
are for them in and around their area. They don't want to move
to California. They want to stay in West Virginia, Kentucky,
Ohio, where their families are. But they have great value here.
I believe that a retrained coal miner can really move into
the aerospace industry quite seamlessly. Do you have any--you
know, with their metalworking and welding skills and all those
kinds of talents.
Mr. Neely. Senator, I couldn't agree more. At the end of
the day, the point which my fellow speakers have made is that
understanding of how to use your hands and how to use your
brain along with your hands and apply those together. And
whether you're in a coal mine--and I confess I've never been in
a coal mine--but whether you're in a coal mine or you're
maintaining the equipment in a coal mine--and from what I know,
there's a lot of very sophisticated equipment in there--all
those skills are excellent foundations for what it would take
to come in and build airplanes at Gulfstream.
Senator Capito. Well, I'd like to have a further
conversation with you kind of off the grid here to talk about
how we can work with rebuilding, and I think that comes within
your industrial reskilling kind of terminology.
The other thing I was thinking--you know, if we're talking
about how do you get younger people to think manufacturing is
cool, I was sort of over here thinking maybe we don't call it
manufacturing anymore. Obviously, advanced manufacturing is a
terminology to try to make it sound a little better. I don't--
maybe we could get Taylor Swift to come up with some kind of
song title on that. That's just sort of something I was
thinking.
I got to meet some of the original women advanced
manufacturers the other day when Rosie the Riveters came in to
see me. They're now in their 90s--amazing work they did in the
service of our country with the skills they never thought they
had. They probably--in West Virginia, they all went to Akron,
Ohio, and filled the factories and built most of our
aerospace--our weapons, but our airplanes as well.
So I would like to put a pitch in to this generation of
women. The President just signed the Inspire Women Act and
Promoting Women in Entrepreneurship. We've got to get whatever
we are, the 15 to 20 percent that is into the STEM fields--we
need to increase that, because that's where I think the
viability and the ability to raise your families is. For women,
I think, it's a skill you can go in and out of the workforce if
you need to do that. So any way we can join together on that--I
know, Ms. Marks, you've been working on that as well. So thank
you all very much.
The Chairman. Thank you, Senator Capito. That was a great
generation. My mom was a Weapons Inspector during that period.
But in South Dakota, we have a really low unemployment
rate, and when we can't get people to fill the jobs, if Colonel
Cartney and the other Tech Ed schools aren't producing enough
employees to fill some of those jobs, we recruit hard from our
neighbor in Minnesota, so we're trying to bring their folks to
South Dakota.
Senator Klobuchar. Oh, here we go.
The Chairman. So, Senator Klobuchar?
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Thank you very much, Senator Thune, and
I first want to welcome my friends from the Minnesota Workforce
Council Association. They're there in the back. Look at them
waving. They've been taking photos of Senator Thune. You're a
star now--very exciting.
They're here because just like in South Dakota, as the
Chairman mentioned, we have very low unemployment in Minnesota,
something like 3 percent to 3.5 percent, yet we have a lot of
manufacturing, and especially in greater Minnesota. Our friends
from Detroit Lakes are here. It's hard to get people to fill
the jobs.
I so appreciate, Mr. Ratzenberger, your work and your show
and the fact that you have featured--ready--Red Wing Boots from
Minnesota, the Diamond Match Company from Cloquet, snow blowers
from Toro in Windom, Scotch Tape from 3M, and, of course,
Hormel's Spam, where they actually have a museum which is
called the Spam Museum, or as we like to call it, the
Guggenham. So thank you for featuring our businesses.
Now, one of the things I noticed is it's Senator Thune and
several women senators up here, and I wanted to ask you, Mr.
DeJohn, first of all, what is Turner's Youth Force 2020 program
doing to support women in these traditional jobs? As you know,
women--one of the ways we can fill these jobs--25 percent of
STEM workers--less than 25 percent women, and my colleagues
have asked about the dirty, dark, and dangerous issue of the
images people have for manufacturing from the past which aren't
really real now. Could you address that?
Mr. DeJohn. That's a very good question, Senator, and thank
you for the opportunity. Turner is a company that has probably
one of the most aggressive diversity programs of any of our
competitors that I know of. We work very closely through 2020,
but we also had the 50th anniversary of our minorities firm
commitment just last year. Hilton Smith, who had started that,
just retired last year, and that's continuing.
As we recruit for the positions of a professional engineer
or architect or construction manager, our focus as a company is
on a minimum requirement that we've posted upon ourselves for
minorities and women of 35 percent, and almost every year,
we've been able to exceed that. We typically bring in 400
recruits a year, and, recently, we've surpassed the 50 percent
mark on women and minorities.
Senator Klobuchar. Very good. Thank you. Thank you very
much. That's impressive.
The other piece of this is apprenticeships. Senator Collins
and I have introduced the American Apprenticeship Act to
provide funding to states to create or expand their tuition
assistance programs.
Mr. Neely, do you want to briefly--because I have one more
question for Ms. Marks--address that with your experience with
the youth apprenticeship program at Gulfstream? I just think
it's a key to a lot of our issues to be able to have our
students work in businesses and their parents see what those
businesses are like.
Mr. Neely. Senator, I think you're spot-on, because it
addresses a number of the problems that we've been talking
about all morning, and that is awareness. It lets the kids come
in and see firsthand what the opportunities are like, to come
in and see firsthand that advanced manufacturing is not dirty,
dark, and dangerous. It's quite the opposite. It's very
sophisticated and exciting, and it lets the parents be part of
that.
And at the same time, addressing some of the earlier
comments about the kids who maybe aren't convinced that they're
capable of reaching that far, when you bring them in in high
school in the way our high school apprenticeship program
works--and I know it's consistent with many other companies,
that we partner with the local high schools, take advantage of
available government programs, so the kids are working with us
15 to 25 hours a week as part of their course work. So they are
simultaneously earning high school credits; they're earning
cash, $10 an hour from us, so they see the connection; and they
get exposed to not just their particular area, but the other
parts of the company that's part of the program so they can see
for themselves. I think that's a wonderful tool.
Senator Klobuchar. Thank you very much, and I just think we
need to do everything we can on the state and Federal levels
with our laws to make it easier, and that's something that's
more complicated than people think.
Ms. Marks, last, I'm half Swiss, actually, and in the last
few years, our Commerce Department signed a Memorandum of
Understanding with Switzerland under the leadership of
Secretary Pritzker to look at what those apprenticeship
programs are like in Switzerland. Buhler, based in Minnesota,
has actually decided to launch a Swiss style apprenticeship
academy, a 3-year, paid-for program. They take classes at our
Dunwoody College of Technology.
Siemens also has employees in our state. I want to thank
you for that. You use a similar apprenticeship model. Could you
talk about how this has helped with employee retention?
Ms. Marks. Yes. Thank you for the question. It has been a
great employee retention tool for our apprentices and for the
people they're paired with who are teaching them real-time on
the job. You know, we're all challenged by the workforce
shifting over time. But what we find is both the apprentices
and the people who are training them real-time are both really
appreciating this and getting something out of this.
The apprentice demand that we're seeing--and this is in
California, in Georgia, and newly in Alabama, as well as in
North Carolina--is incredible once the word gets out. Recently,
for our Charlotte facility, the high schools that we were
recruiting at--270 students turned out.
Chad Robinson, one of our apprentices that I've gotten to
know, who's in the middle of our program right now--top ten in
his high school--got accepted to a 4-year mechanical
engineering school and decided to become an apprentice at
Siemens because he'd be debt-free, get an associate's degree,
get paid for the job while he was doing this, and then
potentially follow on if he wanted to. Siemens would even pay
for his Bachelor's or even Master's if he wanted to continue on
as an employee.
So it has been a great experience, and these people--they
speak for us, and we're happy to share.
Senator Klobuchar. Well, thank you. And, by the way, having
a woman CEO is a great way to get women into this business as
well. So thank you so much for what you do.
Thanks.
The Chairman. Thank you, Senator Klobuchar.
Senator Cortez Masto is up next.
STATEMENT OF HON. CATHERINE CORTEZ MASTO,
U.S. SENATOR FROM NEVADA
Senator Cortez Masto. Thank you, Mr. Chair. This is a
fantastic panel on an important topic, I think we can all
agree.
I am from the great state of Nevada and have been visited
by our career and technical education programs, our workforce
development groups, the community colleges, and so many
incredible people here in Washington who are concerned about
not only funding for their programs but continuing the programs
for the very reasons that we're talking about today, the skills
gap that we see.
A couple of things I want to follow up on that Senator
Klobuchar started with. I'm all about tearing down barriers. I
think we absolutely need to address this issue of skills gap
and do whatever we can to prepare the workforce for the future.
But there are barriers, and you are talking about some of them
today, whether funding barriers, the gender and wage gap
barrier that I want to touch on, the negative branding barriers
that we see, also recruitment of teachers and educators, and
lack of education among counselors and parents to really focus
kids who might be more attuned to going into this field--the
skilled field--during their time in school.
But let me start with the gender and wage gap barrier. That
is a concern of mine, and according to our Census Bureau, women
make up 40 percent of the workforce, but only 24 percent of
STEM workers. And the U.S. Department of Commerce and Economics
and Statistics Administration reported that, on average, women
earned 14 percent less than men, even when controlling for a
wide set of characteristics, such as education and age.
I'm curious--for Mr. DeJohn, Mr. Neely, and Ms. Marks--how
you are addressing the issue of both the gender and wage gap
with your companies?
Ms. Marks. So we are looking for the most qualified workers
everywhere in this country and employing them, which includes
women and minorities, and we do not have a wage gap at Siemens
in the U.S. to share with you. I will tell you we have a
program that is trying to address this, the stigma part of this
as well.
We founded a program with the Aspen Institute called the
Siemens Technical Scholars, where we have now found 80 students
and given them between $3,500 and $10,000 scholarships, of
which many are women and minorities, who are pursuing STEM
programs in two-year institutions and community colleges. But
one of the important parts of their scholarship is that they
spread the word, and they evangelize the importance of their
jobs and these careers, be it in welding, mechatronics, any of
the STEM fields where we need support to grow our business.
Senator Cortez Masto. Thank you.
Mr. Neely. From a Gulfstream standpoint, somewhat similar.
We certainly have a very active diversity outreach. But, quite
frankly, one of the most effective tools to particularly
attract women and minorities to these technical trades is the
mentors and the role models they see that are already in the
company. We're blessed to have people throughout the company in
all roles that can serve as those role models, and that ties--I
know I'm a bit repetitive in referring back to how important it
is to get the elementary and high school and middle school kids
in.
But when we can get those students in front of those role
models that look like them and have the same overall
perspective, that's the most powerful tool--that, you know
what, you are absolutely qualified for these jobs, and it's a
rewarding career. It works.
Senator Cortez Masto. Thank you.
Mr. DeJohn. I don't believe that within Turner, there is a
gap within the salary range for men or women. I think we're
very conscientious about that. And, as Mr. Neely just said, one
of the things that we try to do is--not only do we recruit
college graduates every year, but every year, we bring in
hundreds of--I'll use the word, apprentices--to work and be
paid during the summer.
And the reason I wanted to say I would use the word,
apprentice--if I've noticed anything about the conversation
today, we as a group have made a huge distinction of: you're an
apprentice, and you can get a degree, and then you can get
another degree. Well, an apprenticeship is a 4-year degree, and
part of our problem as a group is it sounds as though we're
demeaning it, and it shouldn't be demeaned.
If I walk a job site, and I see a gentleman who has spent
seven, six, five years as an apprenticeship plumber and see
what he's doing and know that he made a fraction of his salary
for the first 4 years--he's earned it, and if we can, as a
group, change the way we discuss people learning trades, you
know, the vocational term, it's--there are demeaning things out
there. So that's why I wanted to say that.
Senator Cortez Masto. And thank you for bringing that up,
because I think one area that we don't focus enough on--again
sometimes a branding issue--is organized labor. Our carpenters'
union, as you well know, has some of the best apprenticeship
programs. Our organized labor in the state of Nevada have
apprenticeship programs that provide that degree or
certificate, that work with the private sector, and they are
phenomenal, and we don't do enough to boost them and support
what they're doing in their training and skills as well in
their trade.
So thank you for those comments. I appreciate all of you
here today. It's an important topic.
The Chairman. Thank you, Senator Cortez Masto.
I had Senator Inhofe, but Senator Markey has returned, so
it'll be Senator Markey and then Senator Inhofe.
STATEMENT OF HON. EDWARD MARKEY,
U.S. SENATOR FROM MASSACHUSETTS
Senator Markey. Thank you, Mr. Chairman, very much.
Can we talk about community college for a second just to
make sure that we kind of discuss this skills gap and what's
going to be necessary in order to make it easier for the people
who need these kinds of skills to get the education they need?
Would one of you or all of you be willing to talk about the
whole concept of community college for free so that people
could know that that is accessible to them?
Mr. Ratzenberger?
Mr. Ratzenberger. Thank you. Once you get to community
college, if you don't have the foundation of being fascinated
by tools and building things, you're not going to do very well,
if all of a sudden, here you are 18 years old or however the
age is. But if you have the basics--don't forget, in former
generations, before the invention of the video games and things
that kept us indoors, it was anathema to our parents that we
were inside on a sunny day, so they'd kick us out. They'd say,
``Oh, get out of here. Go do something,'' and we were left to
our own devices.
So we climbed trees, we rode bicycles, and, oh, climbing a
tree, you learned that you didn't put a ladder on a tree with
finishing nails, because those steps would pop out when you
step on them. So you had a problem. Now you had to solve the
problem. Your bicycle chain breaks. You've got a problem. You
have to solve the problem. So, really, what we all did in our
childhoods before the current generation is solve problems. We
didn't know that. We were playing.
So now it's a whole different issue. If someone grows up
and all they've done is play video games--and there's certainly
an attraction to that, and parents think that, ``Oh, well,
they're indoors and it'll keep them safe.'' Well, they're also
not letting the child blossom, as it were, or to learn skills
that's going to sustain the kid later on in life.
Senator Markey. So let me just follow up on that. MassTLC--
that's the largest technology association up in Massachusetts,
and what it does is it works with kids, K through 12, to help
kids get the skill set that they need. So here's what it does.
It, one, leads an hour of coding seminars, introducing students
to the basics of coding software; and, second, it mentors
students on entrepreneurship and community engagement by
assisting teams of teenagers develop mobile apps that improve
society.
Two years ago, a team from Winchester High School developed
an app that can detect whether someone is sober enough to
safely drive, and that finished third in a global competition.
What do you think about that as a model? Because so many kids,
as you're saying, have this skill set. So many of the jobs are
increasingly being created in that sector. What do you think
about that as a model to ensure that in our schools and then
outside the schools that we close the skills gap so that every
kid has access to that digital skill set?
Mr. Ratzenberger. The more programs we have that kids
actually use their hands--it's the hand to mind. Actually, in
1809, a book was written by a fellow named Charles Ham--that
was the title of the book, Hand to Mind--on how important it is
for children to use their hands, and whether it's computers or
building a doghouse, it really doesn't make that much
difference, I don't really think.
But the important part to me, also, especially when you're
talking about computers and electronics--someone has to
generate the electricity. So you go back to the coal miner
conversation. Don't forget that someone's got to fix the diesel
engine of the equipment that goes into the coal mine. So it's
all one big weave. It's all one big tapestry. But anything that
helps, helps.
Senator Markey. So in this Committee, you know, through our
Chairman's leadership, what we do is we talk about disruptive
technologies, autonomous vehicles, drones, augmented reality,
as the society moves in a new direction in terms of where the
jobs are going to be, and so many of them are going to require
a digital skill set as well if they're going to be able to
qualify for these jobs as they're moving forward.
We need to do what you're saying, but because of the
massive incursion of disruptive technologies and the nature of
work changes, we need to make sure that we kind of have a
complementary strategy that could work, and I'm hoping that
maybe out of all the conversations that we're having--and we
thank all of you for being here--that we might be able to
accomplish that goal.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Markey.
Senator Inhofe?
STATEMENT OF HON. JIM INHOFE,
U.S. SENATOR FROM OKLAHOMA
Senator Inhofe. Thank you, Mr. Chairman.
I'm glad I had a chance to visit with all of you when I
first came in to let you know one of the problems we have with
these musical chairs--going back and forth between two
committees--both of them very significant and, actually,
dealing with a very similar issue that we're doing today. I
think some of you here are very familiar with the skilled
workforce that we have in Oklahoma from our past. It's the home
of a lot of companies that do the work, including NORDAM and
Spirit Aerosystems.
In fact, Mr. Neely, I think they make the wing for your
760. I'm not sure.
But, nonetheless, they're very much involved. NORDAM and
Spirit both work to ensure that we have skilled workers. I want
to share with you a personal experience that I had. Many years
ago, when I was in the state legislature, our Governor at that
time was Dewey Bartlett. He and I--and I was in the State
Senate--really kind of came up with the idea--we didn't have
any technical schools in Oklahoma at that time--with the idea
that a lot of parents were pushing their kids in one direction
or another, completely forgetting about the fact that there's a
lot of happiness and futures that can be made in technical
training. So we actually started the very first tech school in
the state of Oklahoma. So we go back to the beginning.
So through a STEM initiative and nonprofit called the Tulsa
Night Flight, NORDAM has engaged children, students, and
teachers to inspire them to work in STEM and to seek out the
technical education needed to build airplanes. Spirit has built
a strong relationship with Tulsa Tech to develop their
curriculum, and they are in constant communication with each
other to make sure they get the right ones.
So, Mr. Neely, as you develop relationships with technical
colleges, what are some of the lessons learned? How did the
faculty respond to your efforts?
Mr. Neely. As I mentioned in my opening remarks, our
workforce development strategy has evolved over time, and I
think one of the key lessons learned as we've been through this
process is that we should have earlier on done a lot better job
of looking at the whole picture and not making the mistake we
made of being a bit too siloed in looking at what manufacturing
might need with a particular program within a technical college
and what the aircraft maintenance side might have needed within
either a different technical or a different area.
We allowed ourselves to be a little bit too splintered on
the Gulfstream side, and then on the side of the--using Georgia
as an example--the Technical College System of Georgia, which
is the network of technical schools--I think they would say the
same thing, that they made the mistake of letting themselves
get a little bit too fractured as well.
However, as an improvement, what we've done to correct that
is we stepped back both internally and with our colleagues at
the Technical College System and the University System as well
and said, ``You know what? We need a more comprehensive, cross-
functional approach.''
So within Gulfstream, we formed a cross-functional team, of
which I'm a part along with Human Resources and our
manufacturing team and a number of others, including
engineering, and identified the skill sets that we need both
today and in the future, and then have worked collaboratively
with the senior people at the Technical College System to
understand--here are our needs today and tomorrow. What
programs do you have currently, and then where we don't have
programs that can address our needs, how can we work together
and--and the working together part----
Senator Inhofe. One of the problems, though, you have is
how are you going to determine what your needs--they're going
through an educational process. It might be a two-year program.
So it has to be difficult to know what are your needs going to
be 2 years from now. I mean, just one administration change can
totally change that.
Mr. Neely. You mean, in terms of technology or in terms of
future employees?
Senator Inhofe. Yes, in terms of what you are going to call
upon for a trained worker 2 years from now. It would be
difficult, I would think. My time is running out, and I want to
get to Ms. Marks.
You have kind of a special situation in that you are so
diversified. You work across multiple sectors ranging from oil
and gas to energy, and these sectors are often the first to
embrace new technologies and have huge investments in working,
training, and retraining programs, including for veterans.
So how does a diverse company like yours, like Siemens,
utilize on-the-job training, apprenticeships, to make sure that
the knowledge is passed on from one group to another?
Ms. Marks. Well, Senator, it's very important that the
knowledge gets passed on, and we do it in a few ways. One is
each of our apprentices is matched up with someone to do on-
the-job training, and they both take great care to do this, to
mentor them, as well as to share the skill set, in addition.
One thing we have done working very closely with four different
community colleges, though, is put together a playbook so that
everyone--and I'm happy to share this because it's been
published----
Senator Inhofe. Now, when you say that, are you talking
about your experience in Oklahoma, too?
Ms. Marks. Well, our experience in Oklahoma where we have
our Wind Service Center, and we do on-the-job training. We
don't have any apprentices there.
Senator Inhofe. I see.
Mr. Marks. But our apprentices are visible everywhere. They
actually wear an apprentice badge, and it's actually on their
work clothing, and they're proud of it, and that comes from the
German model where it's actually viewed as value-add, and this
is our next generation of the workforce. So we are trying to
share lessons learned, and we're happy to share them with any
company.
Senator Inhofe. Well, thank you very much.
The only regret I have, Mr. Chairman, is that my kids and
grandkids are going to be so disappointed that I didn't have a
question for Cliff.
Thank you.
[Laughter.]
The Chairman. Thank you, Senator Inhofe.
Senator Duckworth?
STATEMENT OF HON. TAMMY DUCKWORTH,
U.S. SENATOR FROM ILLINOIS
Senator Duckworth. Thank you, Mr. Chairman.
I'd like to discuss the value of community colleges in
closing the skills gap. The first community college in the
nation was established in Illinois in 1901. Joliet Township
High School actually proposed an innovative solution to
addressing the growing skills gap in 1901 that was occurring by
going beyond traditional 4 years of high school and adding a
fifth and sixth year of courses by partnering with the
University of Chicago to get credit. So that was the first
community college in the Nation.
It's amazing that today, we're talking about the same
skills gap happening again. And, in fact, we see this,
especially back in Illinois, and even in my old congressional
district, where I had the largest concentration--one of the
largest concentrations of tool and die manufacturers in the
Nation is in Illinois. Time and again, when I talked to
manufacturers, what they said to me over and over again was,
``Our machinists are aging out. The average age for a machinist
in our plants is in their 50s, late 50s, and we don't have the
next generation ready to come in.''
That's why companies like Northrop Grumman, for example,
partnered with our local community college to fund students
going through a two-year program in manufacturing arts with a
scholarship, with an internship, and at the end of those 2
years, after the first year, Harper hired all seven of their
initial group and are now funding nine, and this is spreading
all across Illinois.
So I just wanted to talk a little bit about what community
colleges can do to provide valuable job training related
efforts, such as registered apprenticeships, on-the-job
training opportunities, and paid internships for low-income
students. It's why I partnered with Senator Franken to re-
introduce the Community College to Career Fund Act that would
create a competitive grant program that would fund more
partnerships between industry and community colleges with the
goal of making community college free for students coming out
of high school.
Ms. Marks, I thank you for your testimony on the work that
you're doing with community colleges, and I thank you for your
work on hiring veterans, as you partner with the Chicago public
high schools to offer engineering opportunities for real,
viable jobs, and your partnerships also with UI Labs Digital
Manufacturing and Design Innovation Institute. Whew, that's a
mouthful!
In your opening statement, you highlighted several of
Siemens' successful apprenticeship programs and included a copy
of your playbook for other manufacturers in developing
apprenticeship programs. Siemens is fortunate to have the
resources to invest and develop these vital programs, but many
small and medium size manufacturers and businesses do not. When
I talked about that concentration of tool and die manufacturers
in Illinois, they're all small and medium size businesses. Many
of them are family run, mom-and-pop businesses.
What can we do to build on your success and help small and
medium size manufacturers and businesses establish
apprenticeship programs?
Ms. Marks. Well, there are several things we can do, but
one is that a lot of those tool and die manufacturers are part
of our supply chain, and we do business locally, so we do
business with them. Being in all 50 states, we have the
opportunity to share lessons, and we think by having this
playbook that you referenced, which we did work on
collaboratively with Alcoa, Dow, the National Association of
Manufacturers, and the Department of Labor--it is scalable, and
it shows you how to partner with a community college.
We actually went in to the four community colleges in the
four states we're in. We helped set the curriculum. We took
people out of our facilities and our factories, and we helped
share what would be needed in terms of technological skills and
core educational analytic skills for these apprentices. So we
believe that the playbook is scalable, whether you're a large
company or a small, and we welcome the opportunity to share it.
Senator Duckworth. Thank you. Oftentimes, you know, having
served in the military for 23 years, people equate national
strength with how many tanks and guns and helicopters we have
in our arsenal, and, frankly, I find helicopters sexy, I've
fired lots of guns, and ridden in tanks, so I'm there with
them.
But people underestimate the value of our manufacturing
sector as a part of our national strength. It is just as
important to have a strong manufacturing sector as it is to
have a large standing military. And, in fact, we wouldn't have
that military with all that great equipment if it were not for
innovative American manufacturing. So I thank you for what
you're doing, especially with this closing of the skills gap,
working with community colleges, because I think that for so
many of our kids across this country, they can't afford that
four-year degree to start off with, and this is a great way to
get started, not have debt, and then to go to work, and then
say--you know, in a couple of years, these same kids are going
to turn around and say, ``Yes, I want to become a manager on
the assembly line. I'm going to go get that B.S.'' So thank you
very much.
Thank you, Mr. Chairman. I yield back.
The Chairman. Thank you, Senator Duckworth.
Senator Cantwell?
STATEMENT OF HON. MARIA CANTWELL,
U.S. SENATOR FROM WASHINGTON
Senator Cantwell. Thank you, Mr. Chairman.
Thank you to the panelists for your testimony and good
comments about how important this is. From the perspective of a
variety of other areas, I know we've talked about some of them,
obviously, manufacturing, in general, and infrastructure, but,
obviously, housing, energy, cybersecurity, aviation--they're
all sectors with major transformation happening, and they need
to continue to upgrade and skill the workforce for tomorrow.
So one of the things that I'm interested in hearing about
is how you think we could more aggressively incent that at the
Federal level. One idea Senator Collins and I have put forth is
tax incentives, which would be the first ever federally
recognized incentive for apprentice. The reason why we've come
to that conclusion is just that we saw so much gap after 2008
with people not knowing where to make their investment, not
knowing what to skill themselves in, not knowing which jobs are
going to be there and which aren't. The fact that the
apprentice program hires and trains is a real benefit for the
individual worker.
So I wanted to hear your thoughts on a Federal incentive
for apprentice and whether you think that would be a good idea
to help make up this gap.
Colonel Cartney. Senator, it may be good. I think the
biggest thing that we're going to need to do to incentivize it
is to really raise the public awareness. And so you could do an
incentive--I think there is currently a program out there
that's currently helping community colleges to set up
apprenticeships.
But the biggest for us--the biggest thing dealing with
student debt is that they get a good job when they're done. And
I think no matter which program you target--and I think
apprenticeships would be good because they are career focused--
that you take an approach that people have some type of work
commitment following their education.
Senator Cantwell. Well, I think it would be pretty big news
if the President of the United States, who had a show called
``The Apprentice,'' would sign his first bill which would be a
first ever federally-recognized apprentice program to incent
people, because I think it would get a lot of attention.
Ms. Marks, I've seen the European model on apprentice, and
thank you to Siemens for bringing it home to the U.S. in ways
that you articulated in your testimony that you're doing. But I
think that what I've seen, at least in the Pacific Northwest,
where we are growing and growing at a rapid pace, is that we
need people to make the commitment, and part of making that
commitment is, as I said, taking the question marks away. Just
getting people to be hired and trained takes away that. So our
incentive investment, asking the manufacturers to do that by
giving them incentive to do that, we thought would help speed
up that process and the hiring.
Ms. Marks. So our experience here in the U.S. has really
shown us that the apprentice programs are best implemented
locally, and that's where we focused, obviously, in our places
where we have larger employment and where we have the need. But
to us, there's a business imperative. So we've done this
regardless of incentive, because we get quality employees out
of this who are loyal and who spread the word about the
program. To us, it's good business, and we're happy to share
that with any other company who is interested.
But, again, we found that in each of the four community
colleges, the curriculum has had to be different. A welder is
very different from a mechanic. So we've worked with them, and
every community college has been tremendously responsive. We've
never run into any issue.
Senator Cantwell. Thank you.
Mr. Neely, if I could, do you support making sure we get a
functioning Export-Import Bank?
Mr. Neely. Yes, ma'am.
Senator Cantwell. Does that affect your business if we
don't?
Mr. Neely. It absolutely does. A direct connection to
sales, period.
Senator Cantwell. Pardon me?
Mr. Neely. Direct connection to sales, period.
Senator Cantwell. Well, we definitely need to get that
board functioning.
Thank you very much, Mr. Chairman.
The Chairman. Thank you, Senator Cantwell.
Senator Blumenthal?
STATEMENT OF HON. RICHARD BLUMENTHAL,
U.S. SENATOR FROM CONNECTICUT
Senator Blumenthal. Thanks very much, Mr. Chairman.
Thank you to the panel for being here. This is a really
wonderful panel.
I want to begin by thanking Ms. Marks for the
extraordinarily generous and important grant of manufacturing
and design software that Siemens contributed to the Connecticut
state colleges and universities--announced yesterday it's worth
$315 million--just really amazing, and so thank you very much.
We are very grateful to you in the state of Connecticut.
Mr. Neely, as you know, your parent company, General
Dynamics, is also the owner of Electric Boat. We're proud to
make the world's best submarines. In fact, it serves as the
submarine capital of the world in Groton, Connecticut, where I
have visited many, many times, and where, in fact, there will
be hiring of about 14,000 people, and that will be within the
next few years--14,000 people by 2030, but 2,000 by the end of
this year.
They are building up, as you know, because we're making
more submarines--two Virginia class a year, the Ohio
replacement or Columbia class--an extraordinary success story
for the benefit of our Nation. We're also going to be hiring--
Pratt and Whitney will be hiring thousands more employees
because the F-35 is ramping up, and Sikorsky will be staying in
the state, obviously not EB companies or General Dynamics, but
we're very proud to be heavily invested in the defense
industry. And it isn't only those corporations, it's also the
supply chain.
Whenever I visit these companies, whether there are 25
employees or thousands, I say to them, ``You are as important
as the men and women in uniform,'' and two of my four children
have served, one in the Marine Corps deployed to Afghanistan,
and the other now currently serving as a Navy officer, and he
is deployed, and that's why I have a blue star on my lapel.
But my view is that these employees, hardworking,
dedicated, and loyal, are as important to building those
weapons systems as any of the men and women who use them,
because we couldn't do it without their skills. And, hopefully,
their sons and daughters will be attracted to do the same kind
of work and be trained to do that work. That's our challenge in
Connecticut. How do we train them? How do we provide those
skills and fill the jobs that exist now? And there are jobs.
You go to the websites of these companies, and they have
openings, but they can't find the right people to fill them.
We've talked, I know, in this hearing about skill training.
I think the investment in skill training is second to none in
its importance to the future of our nation.
Mr. Ratzenberger, I know you have a Connecticut connection
as well--a home in Milford. I've seen you in Connecticut. I
welcome you here. I'm wondering whether you see some
opportunity for building a consensus, knowing of your skills in
persuading and gaining awareness and attention--a consensus
that we need to invest more heavily in this area.
Mr. Ratzenberger. Absolutely. Anywhere I travel across the
country, people come up to me because of my visibility and the
Made in America show and different speeches I give around the
country, and they all say the same thing, ``Thank you, thank
you, thank you for bringing light to this problem.''
I met one fellow, specifically, at JFK airport. I was
heading south, and we were talking. He said, ``We thank you for
all the work you do in manufacturing.'' I said, ``Where are you
off to?'' He said, ``I'm on the way to Argentina to hire
welders.'' He needed 20 welders. He owns a company just outside
of New York City, and the fact--I mean, it was extraordinary,
the fact that he couldn't find one welder, and we're talking
about the Connecticut, New Jersey, New York area. He had to fly
to Argentina to hire 20 of them, and that's how desperate
people are, especially in Connecticut, as you know.
Bullard-Havens in Bridgeport, Connecticut--Bridgeport at
one time was the arsenal of democracy. We made everything.
There wasn't a thing you could name that people in Bridgeport
couldn't figure out how to make. I mean, you know, Thomas
Edison invented the light bulb, but it was a fellow named
Latimer in Bridgeport who invented the filament that actually
made the light bulb practical, and the socket.
So that's how important manufacturing is and people that
know how to make things. But when you take the funding away
from the technical high schools, like Bullard-Havens or Pratt
Institute in Milford, you're not going to have the people
showing up. I really applaud the President for bringing back
manufacturing, but what I'm afraid is going to bite us all at
the end of the day is the fact that we haven't educated the
people to operate the machines in those factories.
So I think that's A-1 on the list to put--you know, the
state of Connecticut, especially--put funding back into those
schools, because when you canceled shop classes all those 30
years ago, the dropout rate--instantly, 30 percent to 40
percent gone, because that's how many kids were dependent on
those courses for their livelihoods, also coupled with the fact
that 70 percent of all crimes committed in the United States
are by high school dropouts.
So why not reinstate those programs? It doesn't cost a lot.
We've got the space. I can help you, you know. I still know how
to use tools.
Senator Blumenthal. Well, we'll use the tools that you have
now--not so much welding and pipefitting, but the skills of
public awareness, and I would welcome an opportunity to
continue your great work and partner with you.
My time has expired, but I want to thank, again, all the
panelists. There's a report that will be coming out, which I
will make sure you get. It's coming out today or tomorrow--the
Connecticut Institute, the 21st Century, on the defense
workforce, how Connecticut can promote growth and retention,
and maybe we can work together on how to make sure that its
goals and purposes are fulfilled.
Thank you very much, Mr. Chairman.
The Chairman. Thank you, Senator Blumenthal.
Senator Johnson?
STATEMENT OF HON. RON JOHNSON,
U.S. SENATOR FROM WISCONSIN
Senator Johnson. Thank you, Mr. Chairman.
I want to thank all the witnesses for your testimony.
Mr. Ratzenberger, I really want to thank you for using your
celebrity to champion this exact issue.
Before I did this crazy thing, becoming a U.S. Senator, I
ran, operated, and owned a manufacturing plant for more than 30
years in Oshkosh, Wisconsin. We spent a lot of money on
education. To me, the bigger problem is attitude. I've traveled
around the state of Wisconsin for six years. My own experience
as a manufacturer--there's not one manufacturing plant in
Wisconsin that can hire enough people--plenty of jobs, good-
paying jobs. I would say there are two reasons. One, we pay
people not to work; and, two, we tell all our kids they've got
to get a four-year degree, which implies somehow if you don't
get a four-year degree, you're a lesser citizen.
So one of the things I was involved in before running for
Senate was the Partners in Education Council of our school
system. Our efforts were soft skills as well as--the last one
was next step after high school. How can you provide students
and their parents the information on all of their options--
four-year degree, 2-year degree, technical college, military
service, or just entering the workforce.
A quick little story. A hundred times at those meetings, I
said, ``We have to stop denigrating the trades.'' I had made
that statement 2 minutes earlier, and a very wonderful school
administrator started talking about a child, a kid, a young
man. We'll call him Billy. He said, you know, ``Billy's
struggling in school, you know. Let's face it. All Billy's ever
going to be is a mechanic.'' Now, fortunately, we had the owner
of Oshkosh Tire sitting at the table, and she said, ``Hey, I
need those mechanics,'' and the administrator says, ``Oh,
that's not what I meant.'' But, unfortunately, that's exactly
what she meant, because we've been preaching this now for
decades--you've got to get a four-year degree, which, again,
implies that going into manufacturing, becoming a carpenter, a
welder, a plumber--I can't do any of those things. We need
those skills.
So I'm all aware of the fact that we have to fund the
manual arts--the essential arts. We've got to shift that
attitude first, that all work has value, and you have to build
things. I love your testimony, the pride in being able to
produce a nut and bolt at one-five thousandths of an inch.
That's an accomplishment. It has gotten better. It's incredibly
difficult. It's what makes America better.
I see no value in having American workers produce highly
redundant products. The value comes in producing high quality
products. So I just want to ask you how do we shift that
attitude, and, by the way, do you agree with that?
Mr. Ratzenberger. Oh, 100 percent, 100 percent. Earlier, we
were talking about the media and the perception of the media,
and I told a short story about a mother who didn't want her son
to be a stone mason like his father because she was
embarrassed. She didn't want the neighbors to think he was
stupid. To me, it's extraordinary that people actually think
like that, after coming from a background of people that worked
with their hands. But there's a gallantry in it. There's honor
in it, and these are the people that are essential, as you just
mentioned.
Imagine if every truck driver pulled off to the side of the
road for a couple of hours. We'd grind to a halt. Or the diesel
mechanics--I know there are big truck companies that can't find
diesel mechanics.
Senator Johnson. Or drivers.
Mr. Ratzenberger. Right. Oh, they're desperate--every truck
now you see, on the back it says, ``Drivers wanted. Call this
number.'' I had a nice boat with diesel engines, and I ended up
selling it because when I'd go up and down the East Coast, it
was tough to find a diesel mechanic. We're running out of them.
Senator Johnson. Senator Barrasso--I can't remember if it
was his father or grandfather who laid cement, and they had
these brass plates that they put in the cement because they
were so proud of their work.
Mr. Ratzenberger. That's right.
Senator Johnson. Where did we lose that? I want to quickly
go to Colonel Cartney--I got involved in education because the
President of our Catholic school system had been the President
of Fox Valley Technical College--really kind of world-renowned,
because he brought the TQM principles--Stan Spanbauer was his
name. He traveled around the world talking about how you engage
in the President's Advisory Council, bringing businesses into
education to align the skills that are required. This is what
we're looking for in our manufacturing, in clerical skills, and
in professional skills. What a concept, actually going into the
workforce.
I think this is something we can do within our
communities--the positive engagement of the business community
into your local middle schools, grade schools, high schools--we
have to change that attitude--into technical colleges, into
colleges. We have to realign those goals.
And, Mr. Ratzenberger, anything I can do to team up with
you in your effort as you champion this--I fully understand
this issue. I understand these attitudinal things, and it is
your celebrity that can really highlight this and make a really
big difference, because this does not require a Federal
Government solution. This can be done on the ground. This can
be done quickly.
We can change these attitudes around, because, as you said,
when we took those skills out of high schools, all of a sudden,
you have a 30 percent dropout rate, because the fact of the
matter is not every kid should be going to college. There's a
great book--if you haven't read it--Real Education by Charles
Murray. I would highly recommend it.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Johnson.
Well, this has been a great panel. Thank you all for your
remarks and responses. The interaction has been great, and I do
agree with everything that's been said about the need to re-
image, because there is a sense of accomplishment that comes
with doing things, making things, building things.
Senator Johnson can probably relate to this, too, but when
I'm in my home state on weekends, during those seasons of the
year when my lawn grows, and I mow my lawn, and I look at it
and you feel pretty good. You feel like you've accomplished
something, which is something that I think exceeds, in many of
our day jobs here some days, the sense of accomplishment we
have.
But it is an important part, and it's almost kind of a lost
part of our culture, and I think we need to restore its
importance, not only because of how it shapes the attitudes and
the values that our young people have, but also how it's going
to be essential in the economy of the future. We've got to have
those skill sets. So everything that you've said today adds
resonance to this issue and helps us focus better on the things
that we need to do. I just want to thank you for everything you
all are doing in this field.
I want to ask one last question, and it pertains a little
bit to discussions that we're going to be having here in the
near future with regard to infrastructure, and it's for you,
Mr. DeJohn. It has to do with maybe discussing the effect that
the skills gap has on the construction industry, specifically,
in regard to how the skills gap affects the cost of
construction projects, including infrastructure projects?
Mr. DeJohn. Thank you for asking that question, Senator,
because it is a huge concern to us as a company. As the
infrastructure is starting to be put in place, and your
retrofits of your bridges and dams, everything that you're
reading about that's failing, without the skilled labor to know
what has to be done, what we start to realize is increased
costs from the subcontractor community, whereby the skilled
labor is not in enough quantity to be able to support the
amount of work that's coming out. So that's going to drive the
prices up, but it will also slow down certain projects from
even getting started.
And then the last thing is without the skilled labor to
suffice and fill all the positions, the amount of oversight and
inspection that you have to put in to make sure that it's going
in correctly--because somebody says, ``Well, I'm an
electrician.'' Well, we want to test how an electrician is. Go
open a cabinet and look at how the wires are run. If it looks
like spaghetti, you'd better get another electrician.
The same thing is going to happen with welders on bridges.
It's not where the inspection is so easy that someone can walk
over and look at it--yes, that's fine. You have to have certain
buckets where you go underneath and look at it. It's a huge
concern for us. As the largest builder in the country, it's not
just buildings. The infrastructure side of everything that's
going on has led to such a deterioration.
You saw what happened to the dam in California during the
heavy rains. They're lucky it didn't collapse, and to try to
repair that, you know, that takes skilled labor that knows how
to operate equipment on that type of an incline. Is that
something that a mother says, ``Oh, I don't want my son to
learn how to do that. He may save a city some day.'' It sure
would be nice if somebody started to think that way. It really
would.
The Chairman. Thank you.
We'll keep the hearing record open--Senator Blumenthal?
Senator Blumenthal. One last quick question. Thank you, Mr.
Chairman, for Mr. DeJohn following up on that remark.
And thank you for being here from Connecticut and doing
such great work for us in Connecticut. Turner Construction is
known nationwide, but most especially in Connecticut for the
great work you've done on our roads and bridges and the vast
variety of projects.
Mr. Ratzenberger mentioned the welders that he saw being
recruited in Argentina, and maybe you could give us more
specifically the skill sets--are they welders, engineers,
designers, pipefitters--if you could give us those specific
skills that you think we should be training people to do?
Mr. DeJohn. One of the facts that Mr. Ratzenberger and I
both put out--and there was a little bit of a difference--was
the average age of the worker today. He was in the 50s. I was
at 46. The reason our numbers were different was, as part of
the construction community, we have a large amount of labor,
just, you know, the people that go in, set up the project, set
up the cleaning, remove the dumpsters. When you take that group
out, which is typically the youngest group because they're in a
lesser skilled group, the number of the average age goes into
the 50s, and that's across the board.
When 2004 to 2007 was a boom time, many people that got
into the trades were someone that had not been skilled in it.
When the economy started to fail in 2007-2008, not only did
those people leave, but it stopped people from going into the
trades, and now you've got retirement on top of it. It's an
across the board area that we need to concentrate on.
It goes back to the issue Senator Johnson brought up about
pride. If you walk right down the street, the Willard Hotel--
when they reopened it, I was in Washington, D.C., working for
PADC. The mosaic floor leading down Peacock Alley--take a good
look at it. You will see someone's initials tapped in, because
that's the way they were paid. That building was renovated.
That floor is still there. It's a pride. People had pride then.
If we're going to do anything today, it's to allow people to
know that going into the trades is a proud thing to do.
John said, ``Look, I put a roof up.'' Well, I grew up in a
community--or in a family of tile marble and terrazzo setters
in upstate New York, and I can still drive by buildings today
and say, ``My father worked on that. I pushed a wheelbarrow in
there.'' If you can help us in any way do that, it would be
tremendous.
Senator Blumenthal. Thank you. That's really powerful.
Thank you.
The Chairman. Yes. Here, here.
Again, we'll keep the hearing record open for two weeks,
and if Members have additional questions they want to submit
for the record, if you could, get those responses back to us as
quickly as possible.
And, again, thank you. Thank you to all of you for being
here today and for all that you've added to this discussion and
conversation. It's an issue that we need to be having more of a
public discussion about and things that we can be doing to not
only change attitudes and perceptions, but also provide
incentives for people to enter into these fields that are going
to be so necessary, not only in the present but in the future.
With that, this hearing is adjourned. Thanks.
[Whereupon, at 12:03 p.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Question Submitted by Hon. Dean Heller to
Rory DeJohn
Question. In this Committee, we've looked at emerging technologies
like the Internet of Things (IOT) and Artificial Intelligence.
These technologies are going to change the needs of different
industries.
As these technologies advance and become more widely adopted, are
you thinking now about how this will change the employee skills needed
for your industry?
Answer. We are always thinking about how to meet the next
challenge, for ourselves and for our clients. As emerging technologies
continue to drive changes in our industry, we must do everything we can
to stay abreast of those changes and to harness the advantages they
provide. This means training our people and creating opportunities for
them to seek training throughout their careers--we are strong believers
in continuous learning. It also means recruiting college graduates and
other new hires who come out of engineering programs--or other
academic/trade disciplines--comfortable with the latest technology
tools.
______
Response to Written Questions Submitted by Hon. Maggie Hassan to
Rory DeJohn
Question 1. New Hampshire receives $6 million from the U.S.
Department of Labor under the Workforce Innovation and Opportunity Act
(WIOA). As you likely know, the President's budget blueprint proposes
cutting 21 percent of the Department of Labor's budget and states that
the budget, ``Decreases Federal support for job training and employment
service formula grants, shifting more responsibility for funding these
services to States, localities, and employers.'' One thing these funds
go toward is workforce training and education in high-demand fields,
including WorkReadyNH which is a collaboration between state agencies
to ensure our workers have both basic skills and softskills when
entering or re-entering the workforce. With the health care sector
projected to increase by 14 percent between 2016 and 2021, and the IT
sector with a projected growth of 15 percent over the same period, job
training and education opportunities in these sectors, and others will
be essential. What do these proposed cuts mean to the ability of
companies like yours to find the workforce they need?
Answer. A skilled, well-trained workforce is necessary for
maintaining and building competitive advantage. The public sector and
private sector have always collaborated and must continue to
collaborate in providing training opportunities to people interested in
improving their skills.
Question 2. What I hear most from business leaders in New Hampshire
is that they do not have access to a skilled workforce. With the lowest
unemployment rate in the country at 2.7 percent--it is essential to not
only work with dislocated workers, but to support individuals in re-
joining the labor market and train individuals who are underemployed.
Organizations, like Families in Transition NH, have had a lot of
success lifting individuals out of poverty by providing wrap-around
supports, like affordable housing options, child care, job-training and
case management. As we talk about the importance of supporting and
improving job training programs, do you think it is important to
provide wrap-around services? Have you seen the impact of these kinds
of programs in your work?
Answer. As our industry is experiencing a growing need for labor,
we have looked beyond our traditional methods of recruiting. This has
led us, and others, to seek people wanting to make a transition from
low-skilled occupations to careers in construction. In addition, we
participate in efforts and programs that offer a helping hand to people
making other transitions--from the military as well as from communities
where people feel stuck and do not see a path toward the opportunities
to advance. Whatever the specific transition is, we find these people
often do need some extra support and encouragement to successfully make
that transition.
______
Response to Written Question Submitted by Hon. Catherine Cortez Masto
to Rory DeJohn
Question. The biggest request for support that I hear from
technical education institutions and educators is for additional
funding to expand and adapt programs to fit the needs of the
industries, and reach more students. Unfortunately, however, this
Administration has proposed numerous cuts to the budget that support
such programs. What do you think the Federal Government can do to more
effectively support the expansion of programs that train our students
in technical fields?
Answer. There certainly is a need for more students to benefit from
attending technical high schools. The Federal Government, educators and
parents can all be a positive influence by encouraging an allocation of
education resources necessary to support the needs our students and
industry.
______
Response to Written Question Submitted by Hon. Dean Heller to
Colonel Michael Cartney
Question. Nevada has developed great programs for meeting our
state-specific skills gap. But we can't guarantee that students will
move toward these fields.
How do we encourage students to pursue fields--like autonomous
vehicles, energy storage, and cybersecurity--that will help states like
Nevada close their own skills gaps?
Answer. Thank you for your question. Attracting students, both
traditional and non-traditional is really at the core of our workforce
skills gap dilemma. Generally, there are three areas of focus that must
be addressed: (1) the community must value the occupation, (2) the
education has to be achievable, and (3) there has to be a quantifiable
return on investment for the student.
How a community values an occupation is a perception that needs to
be addressed by industry as well as education. Often, the first step is
exposure to prospective students and the families, of the career and
its benefits. We are not going to attract students to the energy
storage industry if they do not even know what it is. Industry plays a
key role in imaging, and often re-imaging, their industry. Most work
environments have evolved significantly in the past 30 years, but
someone not in that industry will be unaware of the changes if someone
is not out proactively informing the community. National campaigns,
such as General Electric's recent series of commercials, can be strong
influences in getting potential students interested in technical
careers, and thus technical education. This past year, the voters of
South Dakota, with overwhelming support for industry, passed a
constitutional amendment recognizing post-secondary technical education
as the third form of education in our state. If industries and
educational communities together raise the awareness of an occupation's
value, it will make those seeking and entering that occupation feel
valued.
Once the community values the occupation, potential employees must
see the path to that occupation as achievable. Achievable must go well
passed superb colleges like your Great Basin College providing industry
aligned technical programming. It means the training, education, and
ultimately good paying positions are readily available, and potential
employees (students) believe the pathway before them is within their
reach. A good college education requires work, but Lake Area Technical
Institute has found that confidence in themselves and valuing the
occupation are better indicators of student success than high school
GPAs.
Before anyone walks a path, they must believe it is a journey worth
taking. And, although there is significant merit to the self-growth
aspects of higher education, at the end of the day, for many Americans,
it boils down to the return on investment--in the terms of finances. If
someone off the street can start at the same salary and position as
someone with a college certificate or two-year degree, then there is no
motivation for an individual to seek the education. The bottom line is
we must increase the return or change the investment. In order for an
occupation requiring college level technical skills to be successful,
the industry must value the education in the terms of salary and
position--or it can value it by lowering the monetary investment from
the student. I dislike the phrase ``Free community college,'' college
costs someone something. But for hundreds of South Dakotas, there is a
way to get a college degree for limited monetary investment, as long as
you are willing to commit to working in SD, and possibly committing to
work for a specific company.
Other references:
I have worked with Great Basin College in the past as part of the
Western Interstate Compact on Higher Education (WICHE). My staff and I
are always willing to share best practices and talk through specific
issues at any time with your educational, industry, or government
stakeholders on this topic. We can be reached through
www.lakeareatech.edu.
The Aspen Prize for Community College Excellence. http://
highered.aspen
institute.org/aspen-prize/ is also a great source. With seven years of
experience in examining community colleges across the country for best
practices, the Aspen Prize organization can point you to colleagues
experienced in a number of topics.
Finally, in his book What Excellent Community Colleges Do, Joshua
S. Wyner draws on the insights and evidence gained in administering the
inaugural Aspen Prize for Community College Excellence. This book
identifies four domains of excellence--degree completion, equity,
student learning, and labor market success--and describes in rich
detail the policies and practices that have allowed some community
colleges to succeed in these domains. By starting with a holistic
definition of excellence, measuring success against that definition,
and then identifying practices and policies that align with high levels
of student success, Joshua seeks provides a body of knowledge about
improving student success in community colleges.
______
Response to Written Questions Submitted by Hon. Todd Young to
Colonel Michael Cartney
Question 1. Colonel Cartney, thank you for taking the time to be
here today. I am intrigued in the successes you have seen at your
institution. Similarly, I have seen the same dynamic in my home state
of Indiana. The shortage of much-needed skills requires a stable
pipeline, which many programs at community colleges and our high
schools serve to address this issue. Over the past few years, the
demand for a skilled workforce has led to increased participation in
career and technical education programs. In 2013, over 2,000 high
school students were enrolled in some type of CTE coursework in
Indiana. In 2014, over 3,000 graduating seniors earned an industry
credential, which is an increase of 48 percent from 2012. Even more
impressive, 8,603 students earned college credits and saved
collectively four million dollars for Hoosier families. What are some
ways to expand the growth we have seen in career and technical
education? What tools can we provide for our students, their teachers,
and the local businesses in our communities to scale up programs that
are working?
Answer. Thank you for your questions. As the U.S. Air Force saw fit
to sponsor my master's degree work at Purdue University, I know first-
hand the top notch higher educational system in Indiana! The Hoosier
state can be proud of their educational system. First let's discuss
influencing the career and technical education participation in the K12
system. Your state has a strong start on growing CTE, but like South
Dakota, it only eases a still looming technically skilled workforce
demand.
The short answer would be continuing what you are doing! Continuing
to increase your growth would likely mean: earlier exposure, broader
engagement, and richer experiences on the K12 side. Allowing industry
representatives into classrooms to teach pertinent lessons that include
exposure to the career fields, encouraging industry involvement in
expanding and enhancing your existing CTE offerings, industry summer
camps, career days, exposure to post-secondary career programs through
online and on-campus experiences, and then coupling those experiences
with a robust CTE dual credit partnership with your state colleges.
At the post-secondary level attracting students, both traditional
and non-traditional is really at the core of our workforce skills gap
dilemma. Generally, there are three areas of focus that must be
addressed: (1) the community must value the occupation, (2) the
education has to be achievable, and (3) there has to be a quantifiable
return on investment for the student.
How a community values an occupation is a perception that needs to
be addressed by industry as well as education. Often, the first step is
exposure to prospective students and the families, of the career and
its benefits. We are not going to attract students to precision
machining if they do not even know what it is. Industry plays a key
role in imaging, and often re-imaging, their industry. Most work
environments have evolved significantly in the past 30 years, but
someone not in that industry will be unaware of the changes if someone
is not out proactively informing the community. National campaigns,
such as General Electric's recent series of commercials, can be strong
influences for getting potential students interested in technical
careers, and thus technical education. This past year, the voters of
South Dakota, with overwhelming support for industry, passed a
constitutional amendment recognizing post-secondary technical education
as the third form of education in our state. If industries and
educational communities together raise the awareness of an occupation's
value, it will make those seeking and entering that occupation feel
valued.
Once the community values the occupation, potential employees must
see the path to that occupation as achievable. Achievable must go well
passed superb colleges providing industry aligned technical
programming. It means the training, education, and ultimately good
paying positions are readily available, and potential employees
(students) believe the pathway before them is within their reach. A
good college education requires work, but Lake Area Technical Institute
has found that confidence in themselves and valuing the occupation are
better indicators of student success than high school GPAs.
Before anyone walks a path, they must believe it is a journey worth
taking. And, although there is significant merit to the self-growth
aspects of higher education, at the end of the day, for many Americans,
it boils down to the return on investment--in the terms of finances. If
someone off the street can start at the same salary and position as
someone with a college certificate or two-year degree, then there is no
motivation for an individual to seek the education. The bottom line is
we must increase the return or change the investment. In order for an
occupation requiring college level technical skills to be successful,
the industry must value the education in the terms of salary and
position--or it can value it by lowering the monetary investment from
the student. I hesitate on the phrase ``Free community college,''
college costs someone something. But for hundreds of South Dakotas,
there is a way to get a college degree for limited personal monetary
investment, as long as you are willing to commit to working in SD, and
possibly committing to work for a specific company.
What are some tools you can add to key stakeholder tool bags? The
top of the list has to be industry partners. Indiana Industries have a
vested interest in your CTE programs and educational offerings. Work
with them on identifying and understanding the key role they play in
student success. On both the K12 and post-secondary sides industry
partners serve as student mentors, advising and consulting on
curriculum, and helping provide support structures for students who
need one. The formation of industry sector cabals to support programs
in high school and postsecondary is key to increasing participation.
Other needed shifts are in our Federal and State approaches to
providing higher education in support of employment. There is inherent
value in higher education and for many that inherent value, self-
growth, and discovery is the justification for seeking higher
education. But for millions of Americans, the reason they seek higher
education is to better their lives and the lives of the families. Their
goal is to achieve the American dream. For them, it is education with a
purpose, it is about getting a better job, not just a degree. But, the
current system does not serve them well. Requiring someone to get all
of their education before they seek employment does not work for
millions. Yet all of our systems, processes, and funding seem to be
centered around this culture and in this paradigm. This is something
that we need to exam and change. We must align our educational and
occupational careers, and find ways to meld our financial aid,
scholarships, and support systems to enable this.
As one significant component to enable this, Lake Area Tech
redefined success as placement, not graduation. With prospective
students, we talk about what they want to be, not what degree are they
seeking. Redefining success as placed (employed or continuing their
education), and making graduation (completion) a step along their
journey affects not only the faculty and staff of the institution, but
also students, parents, and industry need a different perspective on
their education.. At the institutional level, the first step was
formally changing our mission statement to ``Lake Area Technical
Institute: superior, comprehensive technical education that changes
lives and launches careers'' to focus this initiative. This subtle
adjustment changes the whole conversation and focus with potential and
current students. Rather than discussing degrees, which is an abstract
concept to many new students, you are discussing what they want to be,
what they want their future to be, and then laying out a path for them
to get there. Instead of discussing ``where can you go with a
particular degree,'' you are discussing which degrees can get you to
where you want to go. Things become immediately more relevant. Going to
class, doing homework, and passing tests--it's not just about
completing a course, but rather, it's about learning what you need to
know to be what you want to be! This subtle but sweeping change gives
higher education the purpose our prospective students are looking for.
Other references:
My staff and I are always willing to share best practices and talk
through specific issues at any time with your educational, industry, or
government stakeholders on this topic. We can be reached through
www.lakeareatech.edu.
The Aspen Prize for Community College Excellence. http://
highered.aspen
institute.org/aspen-prize/ is also a great source. With seven years of
experience in examining community colleges across the country for best
practices, the Aspen Prize organization can point you to colleagues
experienced in a number of topics.
Finally, in his book What Excellent Community Colleges Do, Joshua
S. Wyner draws on the insights and evidence gained in administering the
inaugural Aspen Prize for Community College Excellence. This book
identifies four domains of excellence--degree completion, equity,
student learning, and labor market success--and describes in rich
detail the policies and practices that have allowed some community
colleges to succeed in these domains. By starting with a holistic
definition of excellence, measuring success against that definition,
and then identifying practices and policies that align with high levels
of student success, Joshua seeks provides a body of knowledge about
improving student success in community colleges.
Question 2. Colonel Cartney, rural and urban areas often have
unique workforce needs specific to their environment. Urban areas may
have more job opportunities while rural areas have less openings and
rely heavily on a few employers. I see this dynamic across my home
state of Indiana, and partnerships in more rural communities--like in
Clark County--become vital to the health of the community. However,
urban communities may need a slightly different approach. What are some
ways we can address the diverse workforce needs of rural and urban
areas?
Answer. You are 100 percent correct, while there is commonality in
many aspects of serving an urban versus rural population, there are
also marked differences. Rural individuals and businesses are likely to
be location bound, meaning they cannot just pick and move to wherever
the college is. In the Urban environment with low unemployment, the
likelihood business will hire a student away from pursuing their
education is much higher. For these two main issues, LATI has developed
our ``Learn Where You Earn'' methodology and established Business
Partners Specialists. In our rural environment, LATI has seen the
necessity to move to the online environment. However, hands-on
technical education/training at a distance can be problematic. Learn
where you earn is a set of tactics we employ to use a mix of online
academics and onsite (either on campus or at an industry partner's
facility) in hybrid models to take education to our students. The
business partner specialists are the key to partnering with industry to
bridge the distance and resources gaps to support our students. They
are fully versed in a variety of ways businesses can help students be
successful, and fully versed on the return on investment for the
business in supporting education. My staff and I are always willing to
share best practices and talk through specific issues at any time with
your educational, industry, or government stakeholders on this topic.
We can be reached through www.lakeareatech.edu.
Lake Area Technical Institute publishes our graduate recruitment
playbooks. These playbooks outline ideas for communities and businesses
to attract graduates. In both environments, it is not just about the
job for the newest generations entering our workforce--and the play
books outline thoughts for how to capitalize on your strengths. But,
there are exceptional colleges across the Nation doing great things in
career and technical education. Centers of Excellence in Career and
Technical Education could serve as catalysts and advocates for best
practices in the technical education realm. Although at the core they
deliver the same broad service, ``HIRE'' education is a different focus
and mindset than the traditional higher education system. For many,
this change will not happen quickly.
______
Response to Written Questions Submitted by Hon. Tammy Baldwin to
Colonel Michael Cartney
Question 1. Wisconsin is one of the Nation's top states for
manufacturing (a ``middle-skill'' industry). As I travel around the
state meeting manufacturers, the skills gap has been a frequent topic
of conversation. While the conversation often turns to training and
recruiting, for a state with 3.7 percent unemployment, I hear concerns
that the problem is larger than just ``skills'' but about finding the
workers in the region at all. This problem has been dubbed, `the body
gap' and it is one of the first things Wisconsin manufacturers tell me
about when we meet. Colonel Cartney, as you know this problem puts
tremendous stress on schools like yours to supply talent. In Wisconsin,
our technical college system addresses this by conducting `boot camps'
in critical skill areas. What is the most effective approach you have
seen to address these skill and ``body'' shortages in your region and
how can they be replicated nationally?
Answer. Thank you for the questions. You are 100 percent correct,
once you have optimized your K12 to technical careers pipeline and
upskilled those available, you need to recruit new workforce members
into the region. The number one change in recent years has been that
the focus for recruiting people is not just on the job and
compensation. Lake Area Tech publishes two key ``playbooks'', one for
industry and one for communities, which outline tools and techniques
for industries and communities to market their WOW factor to attract
workers.
Second, the Build Dakota concept of paying for a student's
education in exchange for a workforce commit in South Dakota seems have
promise. By targeting some of the scholarships out of state, we are
able to grow our workforce. This approach is also common for the U.S.
Military, where, for example, a full ride through one of our Academies
or an ROTC scholarship includes a commitment to military service.
One commonly overlooked aspect is if your servicing higher
education organization sees provide programming focused on your local
workforce needs as a core mission. Your local higher education needs to
be ``community or industry facing,'' meaning they view the community
and local industry as key stakeholders. Often, higher education
organization are ``state, accreditation, or funding'' facing, meaning
they are most responsive to those entities. A community or industry
facing organization sets it goals, success indicators, and measures so
they are responsive to the community and local industry needs. A
leading objective at LATI is to align our educational tracks with SD
industry needs and make sure there are jobs for our graduates in high-
demand workforce areas in South Dakota. Many educational systems do not
even consider post-graduate employment when counselling their students,
or when establishing programs of study. When that happens, there is
even a larger gap between workforce needs and the skilled graduates.
Our relationship with industry partners is a crucial component to the
success Lake Area Tech has realized in graduate placement and helping
to fill the workforce gap.
The vast majority of our students obtain their education on campus.
However, we recognize that may not work for non-traditional or
location-bound students, including those interested in fields with a
high workforce demand. In our rural environment, LATI has seen the
necessity to move to the online environment. However, hands-on
technical education/training at a distance can be problematic. Learn
where you earn is a set of tactics we employ to use a mix of online
academics and onsite (either on campus or at an industry partner's
facility) in hybrid models to take education to our students. Our
business partner specialists are the key to partnering with industry to
bridge the distance and resources gaps to support our students. They
are fully versed in a variety of ways businesses can help students be
successful, and fully versed on the return on investment for the
business in supporting education.
Another successful step Lake Area Tech has taken to help fill the
body gap is working together with industry partners. One example of
involving industry is advisory board participation. Each one of our
programs is overseen by an advisory board comprised of faculty and
industry members who help ensure our graduates meet the needs of
industry. Their vital input helps keep our programs up-to-date on what
is happening in the real world regarding workforce needs and trends. On
the other hand, industry members learn more about LATI by participating
in advisory boards (and other LATI leadership boards) and use that
information to educate other people in industry about our programs.
It's a win-win situation.
Other successes include: using state grant funding, Watertown's
economic development arm is able to offer funds for relocation
expenses; the state has marketing plans to attract native South
Dakotans ``back to their roots,'' and we broadly market that South
Dakota is one of the best places in the Nation to Live, Work, and
Learn!
Finally, the use of technology to ease workforce demands, often by
shifting the type of skilled individually needed must be examined. For
example, maybe I cannot find enough people with the motor skills to be
welders, but I have people I can train to examine welds done by a
robot. So I implement an automated solution to lay the welds and add
the welding inspector position.
Other references:
My staff and I are always willing to share best practices and talk
through specific issues at any time with your educational, industry, or
government stakeholders on this topic. We can be reached through
www.lakeareatech.edu.
The Aspen Prize for Community College Excellence, on which Siemens
USA is a major sponsor and advocate, is also an excellent source for
best practices. http://highered.aspeninstitute.org/aspen-prize/ is also
a great source. With seven years of experience in examining community
colleges across the country for best practices, the Aspen Prize
organization can point you to colleagues experienced in a number of
topics.
Finally, in his book What Excellent Community Colleges Do, Joshua
S. Wyner draws on the insights and evidence gained in administering the
inaugural Aspen Prize for Community College Excellence. This book
identifies four domains of excellence--degree completion, equity,
student learning, and labor market success--and describes in rich
detail the policies and practices that have allowed some community
colleges to succeed in these domains. By starting with a holistic
definition of excellence, measuring success against that definition,
and then identifying practices and policies that align with high levels
of student success, Joshua seeks to provide a body of knowledge about
improving student success in community colleges.
Question 2. I am very pleased to see the bipartisan support for
workforce training and career and technical education on display at
this hearing today. Coming from Wisconsin, I have long been a supporter
of apprenticeship and vocational training programs. The nation's first
apprenticeship law was passed there in 1911. The same year the
Legislature established the state's vocational school system to provide
instruction to new apprentices. That system, now known as the Wisconsin
Technical Colleges System served as a model for the Nation. As the Co-
Chair of the Senate's CTE Caucus, (and a STEM-educated worker myself) I
have introduced legislation called America's College Promise to provide
free resident tuition for two years of community and technical college.
I've also introduced legislation to allow students enrolled in short-
term CTE programs to qualify for student loans. Colonel Cartney, as an
educator, how often do you encounter students who are unaware of CTE
opportunities or unable to afford them? Do you believe waiving tuition
and broadening the applicability of student loans could help solve the
skills gap issues we've discussed today by improving access to CTE?
Answer. Unfortunately, we frequently encounter students who are
unaware of CTE opportunities and/or are unable to afford tuition. In
some cases, not being aware of the CTE opportunities is not the fault
of the student at all. In South Dakota, we know that some high school
graduates have never been exposed to Career and Technical education in
their K-12 experience. This is due to a number of factors including
cuts in funding, graduation requirements, and a greater emphasis on
four-year college attendance. Also contributing to this problem is the
emphasis on `having to attend' a four-year college by parents,
students, and high school counsellors is also an issue. (Incidentally,
high school counsellors and teachers are almost exclusively four-year
degree holders who are helping our youth plan their futures.) The
opinion of many is that students need to continue their post-high
school education at a four-year college to make something of
themselves. The benefits of technical education that enables a career
AND allows for continued education are being overlooked by those
subscribing to that attitude.
At Lake Area Tech, we address this very issue with focused
strategies. We believe getting potential students (even at a very young
age) on campus is an important first step in educating them on
everything a technical education has to offer. Throughout the year, we
invite grade school, middle school, and high school students to Lake
Area Tech for activities that combine having fun and being educated.
Third graders tour select programs during our annual 3rd Grade College
for a Day, sixth graders are invited annually for Ag Day at the Farm,
eighth graders attend the annual Men/Women in Science Day, sophomores
participate in Equity Day, juniors attend Junior Tech Day, and seniors
attend Senior Tech Day. In all cases, either teachers, parents, and/or
school counselors are along and gain valuable knowledge of our programs
of interest.
We also hold school district in-services for local K-12 teachers
and counselors on campus. This offers them first-hand knowledge of our
facilities and familiarizes them with faculty and services. Dual credit
classes are also held on-campus for area high schoolers, providing yet
another opportunity for exposure and education. The program is highly
successful. Last semester we provided more than 1,000 credit hours to
high school students.
We put our fair share of miles on the road, too. Our admissions
representatives travel extensively throughout the regions visiting high
schools and participating in college and career fairs to talk to
students about careers in technical education. These visits are
valuable as they not only focus on educating the students, but just as
importantly, the school counselors and teachers.
At Lake Area Tech, students who are unable to afford the cost of
technical education have options. Recognizing cost as one of the
biggest factors to attracting as well as retaining students, Lake Area
Tech strives to make college affordable and minimize the financial
barriers. LATI offers low-cost on-campus child care and works with
students to qualify for state childcare assistance. By providing
cafeteria services in-house and at-cost, we offer nutritious,
affordable meals. Our bookstore also operates at a target margin of
less than 10 percent. Bolstered by campus initiatives, instructors work
diligently to keep costs of text books, tools, and technology in check
while ensuring students have access to high-quality equipment needed to
succeed. Over 65 percent of courses use the learning management system
to provide resources to students compared to a 60 percent national
average; therefore, reducing the overall cost of materials.
Also, LATI developed a Prior Learning and Work Experience Model to
assess the training experiences of veterans and students previously
employed in the field to identify accelerated graduation paths. This
enables students to accelerate degree completion time and save on the
overall cost of their degree. Remarkably, even though technical
education is more expensive than traditional forms of education, the
last calculated default rate at Lake Area Tech, 6.1 percent, is nearly
one-half the national average, 11.3 percent, on student loans.
We are fortunate that, at the state level, the South Dakota Office
of Economic Development has funded over $1 million in equipment to LATI
annually to expand access to the latest technology without increasing
the cost to students. The state also matched the $25 million private
donation from T. Denny Sanford to create the Build Dakota Scholarship
fund. LATI expanded the reach of the full-ride scholarships through the
Stretch the Million program with over 20 partners initially pledging
$175,000-$200,000. Beyond the Build Dakota Scholarship program, our
LATI foundation is instrumental in expanding access to college through
scholarships. Last year, the foundation awarded over 400 scholarships
exceeding $390,000. Additional efforts to keep college affordable
include participation in the national Free Application Week, Financial
Aid Workshops, Financial Aid Literacy Program, and credit for corporate
education and prior learning.
Finally, South Dakota's Technical Institutes have partnered with
industry, communities, and state government to take on our skills gap
head on. Over 300 businesses work with Lake Area Tech's faculty and
students to provide a coherent and relevant educational experience that
support our state's workforce demands. These businesses consult and
oversee curriculum, provide internships and on-the-job experience for
students, provide industry standard training aides and equipment for
the students to learn with, mentor our students, and most importantly
they hire our students--in short, they are heavily invested in their
pipeline.
Regarding waiving tuition and broadening the applicability of
student loans: Thank you for the question. The Build Dakota concept of
paying for a student's education in exchange for a workforce commit in
South Dakota could be mirrored at the national level. I hesitate on
phrases like waiving tuition and ``free community college,'' because
college costs someone something. But for hundreds of South Dakotans,
there is a way to get a college degree for limited monetary investment
(as mentioned above), as long as you are willing to commit to working
in SD, and possibly committing to work for a specific company.
This approach is also common for the U.S. Military, where, for
example, a full ride through one of our Academies or an ROTC
scholarship includes a commitment to military service. By tying
financial aid to employment commitment in corresponding occupations,
you would not only target your investment in a more meaningful way, but
you would also provide the means for student to repay their student
debt. You could also examine tax credits for both employers and
employees who work in the field of their education (e.g., make their
student loan payments tax deductible).
Finally, what can be done at the Federal level to support Technical
Education? Technical education is expensive, and institutional funding
from the Federal Government is vital. However, Federal financial aid
for students is also crucial, and is often the turning factor in
whether someone even seeks higher education. However, the financial aid
system can be extremely hard to navigate and use if you do not go from
high school to college. One example would be we need to change the
rules for Federal financial aid to allow someone leaving a four-year
school, after absorbing 2 or 3 years of Federal PELL and loans, to go
to a technical school and still have the 2 or 3 years of financial aid
support required to get a technical degree or retrain. This law was
changed approximately 4 years ago. Other innovative ideas could include
tax incentives for employers who allow their employees time to
accomplish their education, tax credit to working graduates for paying
their student loans back, and easing the access to educational benefits
due to our nations veterans'.
My staff and I are always willing to share best practices and talk
through specific issues at any time with your educational, industry, or
government stakeholders on this topic. We can be reached through
www.lakeareatech.edu.
______
Response to Written Questions Submitted by Hon. Maggie Hassan to
Colonel Michael Cartney
Question 1. New Hampshire receives $6 million from the U.S.
Department of Labor under the Workforce Innovation and Opportunity Act
(WIOA). As you likely know, the President's budget blueprint proposes
cutting 21 percent of the Department of Labor's budget and states that
the budget, ``Decreases Federal support for job training and employment
service formula grants, shifting more responsibility for funding these
services to States, localities, and employers.'' One thing these funds
go toward is workforce training and education in high-demand fields,
including WorkReadyNH which is a collaboration between state agencies
to ensure our workers have both basic skills and softskills when
entering or re-entering the workforce. With the health care sector
projected to increase by 14 percent between 2016 and 2021, and the IT
sector with a projected growth of 15 percent over the same period, job
training and education opportunities in these sectors, and others will
be essential. What do these proposed cuts mean to the ability of
companies like yours to find the workforce they need?
Answer. Thank you for the questions. Since the programs in question
are overseen by our Department of Labor and Regulation, I turned to
them for assistance in this reponse. What I learned is the following
programs provide about $6.6M of an estimated $17.6M in Federal funding
of workforce programs for South Dakota. A 20 percent reduction would
represent approximately $1.3M cut. In FY16, they assisted 6470
individuals, so a reduction would impact SD's workforce training and
education in high-demand fields.
Workforce Innovation and Opportunity Act (WIOA) Adult: WIOA is an
employment and training program designed to provide services that will
increase skills for adults through education and job training programs
so they may overcome barriers to employment.
Individuals served in FY16 = 5,775
WIOA Dislocated/Rapid Response: WIOA Dislocated provides training
and career services to people who have been laid off and seeks to train
people for occupations where there is a high demand for workers such as
welders, accountants, teachers, and more.
Individuals served in FY16 = 205
WIOA Youth: WIOA Youth provides a systematic and coordinated
approach to career services to people between the ages of 14 and 24 who
are low income and have barriers to employment by offering assistance
in completing education and providing work experiences and training.
Individuals served in FY16 = 344
WIOA Statewide Allocation: States are allowed to use a portion of
WIOA to meet the unique needs of their employment programs. South
Dakota uses this funding for Dakota Roots activities, National Career
Readiness Certificate activities, and grant monitoring activities.
WIOA Administration: Funding used for administering the various
WIOA programs.
Disability Employment Initiative: The Workforce Training division
assists in providing job search techniques and basic employment skills
to individuals with disabilities over the age of 18 and seeking
employment.
Individuals served in FY16 = 63
Trade Act Assistance (TAA): TAA assists workers who have lost their
jobs as a result of foreign competition by providing training
opportunities for displaced workers.
Individuals served in FY16 = 83
TAA Administration: Funding used for administering the TAA program.
TAA Case Management: DLR local office staff assists employers with
obtaining certification for the TAA program so former employees may
apply for TAA training benefits.
Question 2. What I hear most from business leaders in New Hampshire
is that they do not have access to a skilled workforce. With the lowest
unemployment rate in the country at 2.7 percent--it is essential to not
only work with dislocated workers, but to support individuals in re-
joining the labor market and train individuals who are underemployed.
Organizations, like Families in Transition NH, have had a lot of
success lifting individuals out of poverty by providing wrap-around
supports, like affordable housing options, child care, job-training and
case management. As we talk about the importance of supporting and
improving job training programs, do you think it is important to
provide wrap-around services? Have you seen the impact of these kinds
of programs in your work?
Answer. Thank you for the questions. Since the programs in question
are overseen by our Department of Labor and Regulation, I requested
their support in drafting an answer. In short, the answer to your
question is yes. With a 2.8 percent seasonally adjusted unemployment
rate in February 2017, most South Dakotans looking for work are in need
of support services to succeed. Many times they do not have only one
barrier to employment; they have several barriers preventing them from
becoming employed.
To support individuals who may need training, one of the resources
South Dakota uses is the Workforce Innovation and Opportunity Act
(WIOA) Title I program. Eligible adults and dislocated workers are case
managed and can utilize Title I for retraining (tuition and book
assistance or on-the-job training (OJT)) with some wrap-around services
being provided. Assistance includes, but is not limited to: child care,
transportation costs, car repairs, housing, work attire, and medical
expenses related to the training and/or job. Such expenses may
otherwise deter them from completing training.
South Dakota has seen success in the training programs it has
available. Some of that success has come from not only additional
training at technical institutes, but also with OJTs for individuals
who may not be able to return to school, but need immediate employment.
Real life successes of support services are found in four
testimonials at: https://www.youtube.com/watch?v=ieeazt43SGo. (There
are also separate vignettes on our YouTube page of each.)
DLR's PY15 WIOA Annual Report also shows many success stories:
http://dlr.sd.gov/workforce_services/wioa/documents/
wioa_annual_report_2015.pdf
I want to acknowledge Dawn Dovre's assistance in the development of
these two responses. Dawn is with the SD DLR.
______
Response to Written Questions Submitted by Hon. Catherine Cortez Masto
to Colonel Michael Cartney
Question 1. One of the largest barriers of expanding technical
education program is the recruitment of teachers. What strategies does
Lake Area Technical Institute use to recruit educators? What can be
done in order to better incentivize teachers to move from industry to
education?
Answer. Thank you for the questions. Recruiting and retaining
qualified instructors at Lake Area Tech is at the very core of our
mission and student success. Without a remarkable group of instructors,
our students would not be effectively prepared for a satisfying career
the workforce.
One basic question for career and technical education programming
is do you hire a teacher and provide the relevant industry experience,
or do you hire someone from industry, and teach them how to be an
instructor? Lake Area Tech hires industry experienced personnel and
employed an extensive development and mentoring program to ensure high
quality educational experiences, Doing so does place the college in
direct competition with industry for those key people.
Fortunately, the South Dakota Legislature, through a bi-partisan
legislative effort, put in place an Instructor Salary Industry
Adjustment program. Codified in the 2016 legislative session, a half
penny sales tax enables South Dakota's technical institutes to offer
compensation competitive with industry on a per day basis.
Recruiting remains a challenge for us at times since the caliber of
instructors we look for is high. By the nature of our mission, we are
also seeking those individuals in industries where they are in
extremely high demand. Despite these challenges, we have had success
with our recruitment efforts, but not all colleges have fared so well.
Across the Nation there is a notable shortage of people entering the
teaching profession. Taking the next step of convincing people to move
from a successful industry career to teaching at a technology college
requires a close relationship with industry, and innovative solutions.
Some innovations we have tried or seen used include: (1) industry
partners who have key people teach as part of the employment, (2)
industry partners stepping forward to provide funding so colleges can
pay competitive salaries, and (3) industry partnership where personnel
teach \3/4\ of the year but return to the employer for the remainder of
the year--giving them full time employment and compensation.
Finally, what can be done at the Federal level to support Technical
Education? Technical education is expensive, and institutional funding
from the Federal Government is vital. However, Federal financial aid
for students is also crucial, and is often the turning factor in
whether someone even seeks higher education. However, the financial aid
system can be extremely hard to navigate and use if you do not go from
high school to college. One example would be we need to change the
rules for Federal financial aid to allow someone leaving a four-year
school, after absorbing 2 or 3 years of Federal PELL and loans, to go
to a technical school and still have the 2 or 3 years of financial aid
support required to get a technical degree or retrain. This law was
changed approximately 4 years ago. Other innovative ideas could include
tax incentives for employers who allow their employees time to
accomplish their education, tax credit to working graduates for paying
their student loans back, and easing the access to educational benefits
due to our nations veterans'.
Question 2. Another important gap that exists in the technical
education arena is the lack of education, and understanding, among
counselors and parents about the opportunities, careers, and
educational training that exists for technical and vocational fields.
What steps can be taken to eliminate these gaps, and how can we better
provide information about the technical opportunities that exist for
students to counselors, parents, and the students themselves?
Answer. You are 100 percent correct. How a community values an
occupation is a perception that needs to be addressed by industry as
well as education. Often, the first step is exposure to prospective
students and the families, of the career and its benefits. We are not
going to attract students to the high demand industries if they do not
even know what they are. Industry plays a key role in imaging, and
often re-imaging, their industry. Many parents do not realize how most
work environments have evolved significantly in the past 30 years, but
someone not in that industry will be unaware of the changes if someone
is not out proactively informing the community. National campaigns,
such as General Electric's recent series of commercials, can be strong
influences in getting potential students interested in technical
careers, and thus technical education. If industries and educational
communities together raise the awareness of an occupation's value, it
will make those seeking and entering that occupation feel valued.
High school counsellors play a crucial role in guiding students,
and parents, through career options. But in most states, K12
counsellors are required to have a four-year degree, therefore their
perspective is often towards their own experiences. Nationally there is
a shortage of counsellors in the K12 system, so those available spend
the majority of their time dealing with mental health issues of the
students. Lake Area Tech has encouraged school systems to opening their
doors to industry and technical colleges by allowing our instructors
and industry representatives to teach science lessons and other classes
related to their occupations. South Dakota's Department of Education
has deployed a system called SDMyLife across our entire K12 spectrum.
SDMyLife is an online program assisting students with navigating the
career development process. SDMyLife's goal is to help students better
understand themselves and how their interest, skills, and knowledge
relate to real-world academic and career opportunities. Additionally,
SDMyLife provides ways for colleges and industries to provide
information and engage students interested in specific career paths.
With the shortage of counsellors, Lake Area Tech emphasizes our K14
approach to education and uses several approaches to expose students to
technical careers. We seek every opportunity to advocate for and engage
in career oriented discussions with the public.
Our staff does an incredible job reaching out to them as early as
third grade. We believe that getting potential students on campus is an
important first step in educating them on everything our technical
college has to offer. Throughout the year, we invite grade school,
middle school, and high school students to Lake Area Tech for
activities that combine having fun and being educated. Third graders
tour select programs during our annual 3rd Grade College for a Day,
sixth graders are invited annually for Ag Day at the Farm, eighth
graders attend the annual Men/Women in Science Day, sophomores
participate in Equity Day, juniors attend Junior Tech Day, and seniors
attend Senior Tech Day. In all cases, either teachers, parents, and/or
school counselors are along and gain valuable knowledge of our programs
of interest.
We also hold school district in-services for local K-12 teachers
and counselors on campus. This gives them first-hand knowledge of our
facilities and familiarizes them with faculty and services.
Dual credit classes are also held on-campus for area high
schoolers, providing yet another opportunity for exposure and
education. The program is highly success. Last semester we provided
more than 1,000 credit hours to high school students.
We put our fair share of miles on, too. Our admissions
representatives travel extensively throughout the regions visiting high
schools and participating in college and career fairs. These visits are
valuable as they not only focus on educating the students, but just as
importantly, the school counselors and teachers.
In addition to personal, face-to-face educational encounters, we
market our successful graduation, retention, and placement rates
through focused marketing efforts including billboards, TV commercials,
radio ads, Internet ads, and mass mailings. These efforts promote top
of mind awareness to potential students, parents, industry members, and
community members.
Lake Area Tech is always willing to share best practices and talk
through specific issues at any time with your educational, industry, or
government stakeholders on this topic. We can be reached through
www.lakeareatech.edu.
______
Response to Written Question Submitted by Hon. Tammy Baldwin to
John J. Neely III
Question. President Trump has promised to bring manufacturing jobs
back to the U.S., but his budget proposal would defund the
Manufacturing Extension Partnership (MEP), which has been instrumental
in enhancing the success of Wisconsin's small to midsize manufacturers.
According to the Center for American Progress (CAP), eliminating
Federal funding for MEP would cost Wisconsin 846 jobs and would cost
the United States 41,190 jobs. The President's budget would also
eliminate funding for the Economic Development Administration, which
supports development in economically distressed areas of the United
States. In 2015, fiscal investments by EDA were over $2.9 million in
Wisconsin and over $213 million in the United States. I'd like to
address this question to the two witnesses from manufacturing firms,
Mr. Neely and Ms. Marks: I'm concerned that the President's budget is
breaking the promises he made to our Nation's manufacturers and tilting
the playing field further against them. How will the elimination of the
MEP program impact your companies and their suppliers, many of whom are
small and medium enterprises?
Answer. Gulfstream recognizes that the Manufacturing Extension
Partnership (MEP) has been a valuable resource for small and mid-size
businesses. As a public-private partnership that receives approximately
one-third of its funding from the Federal Government, and the balance
from a combination of state/local governments, private enterprises and
client fees, the loss of Federal funding likely will provide
challenges. Similarly, the U.S. Department of Commerce's Economic
Development Administration (EDA) has provided grants and other
assistance for U.S. businesses, and the de-funding of EDA would provide
an additional challenge.
Gulfstream's experience, however, is that governments in Wisconsin
and the other states in which we do business have become significantly
more committed over the last several years to supporting workforce
development and economic development. As discussed several times in
this hearing, for example, many states have highly effective programs
available to small and mid-size companies through various state
agencies and in particular technical colleges. Wisconsin's Department
of Workforce Development, and job training grants available through
Wisconsin's state government, certainly illustrate this point.
______
Response to Written Questions Submitted by Hon. Maggie Hassan to
John J. Neely III
Question 1. New Hampshire receives $6 million from the U.S.
Department of Labor under the Workforce Innovation and Opportunity Act
(WIOA). As you likely know, the President's budget blueprint proposes
cutting 21 percent of the Department of Labor's budget and states that
the budget, ``Decreases Federal support for job training and employment
service formula grants, shifting more responsibility for funding these
services to states, localities, and employers.'' One thing these funds
go toward is workforce training and education in high-demand fields,
including WorkReadyNH which is a collaboration between state agencies
to ensure our workers have both basic skills and softskills when
entering or re-entering the workforce. With the health care sector
projected to increase by 14 percent between 2016 and 2021, and the IT
sector with a projected growth of 15 percent over the same period, job
training and education opportunities in these sectors, and others will
be essential. What do these proposed cuts mean to the ability of
companies like yours to find the workforce they need?
Answer. Workforce Innovation and Opportunity Act (WIOA) funding has
helped support a number of programs in the states in which Gulfstream
does business. As noted in response to other questions, however, an
offset to a decrease in WIOA funding is the increased understanding on
the part of state governments concerning the need for, and return on
investment from, state-funded workforce development programs. This
increased understanding at the state level is having a corresponding,
positive impact on state funding. For example, we certainly have been
impressed by the quality of training provided by states' technical
college systems.
Question 2. What I hear most from business leaders in New Hampshire
is that they do not have access to a skilled workforce. With the lowest
unemployment rate in the country at 2.7 percent--it is essential to not
only work with dislocated workers, but to support individuals in re-
joining the labor market and train individuals who are underemployed.
Organizations, like Families in Transition NH, have had a lot of
success lifting individuals out of poverty by providing wrap-around
supports, like affordable housing options, child care, job-training and
case management. As we talk about the importance of supporting and
improving job training programs, do you think it is important to
provide wrap-around services? Have you seen the impact of these kinds
of programs in your work?
Answer. Gulfstream, indeed, has seen the value of resources through
which individuals can obtain re-training, whether to move from older to
newer technologies, across industries or simply to address basic
underemployment. Wrap-around services, like child care and
transportation from home to training (at technical colleges, for
example) and work, are important in making job-training opportunities a
practical reality rather than simply a theoretical opportunity.
______
Response to Written Question Submitted by Hon. Catherine Cortez Masto
to John J. Neely III
Question. How successful do you think our public schools are with
ensuring that students are exposed to fields involving technical skills
throughout their education?
Answer. Over the past several years, we've seen a shift in the K-12
environment to include technical job training and opportunities as
viable career gateways for students. Not everyone is ideally suited for
a four-year degree, so it's important to explore and explain
alternative career paths. As noted in my opening remarks, the good news
is that we are seeing this happen. In every state in which Gulfstream
does business, the state and local leaders understand this concept and
are making great strides to expand it. As an example, we have seen a
significant increase in the number of high schools with sophisticated
technical curricula and equipment dedicated to training for technical
trade skills.
______
Response to Written Question Submitted by Hon. Tammy Baldwin to
Judith Marks
Question. President Trump has promised to bring manufacturing jobs
back to the U.S., but his budget proposal would defund the
Manufacturing Extension Partnership (MEP), which has been instrumental
in enhancing the success of Wisconsin's small to midsize manufacturers.
According to the Center for American Progress (CAP), eliminating
Federal funding for MEP would cost Wisconsin 846 jobs and would cost
the United States 41,190 jobs. The President's budget would also
eliminate funding for the Economic Development Administration, which
supports development in economically distressed areas of the United
States. In 2015, fiscal investments by EDA were over $2.9 million in
Wisconsin and over $213 million in the United States. I'd like to
address this question to the two witnesses from manufacturing firms,
Mr. Neely and Ms. Marks: I'm concerned that the President's budget is
breaking the promises he made to our Nation's manufacturers and tilting
the playing field further against them. How will the elimination of the
MEP program impact your companies and their suppliers, many of whom are
small and medium enterprises?
Answer. Siemens has historically partnered with MEPs in the past on
identifying critical workforce needs for manufacturers and teaching
others about the value of manufacturing through national manufacturing
day. We understand the value of these partnerships that focus on
supporting manufacturers at a local level and believe that thoughtful
consideration about the future of these MEPs is necessary. Please know
that we are available to provide guidance to your office about this
important topic.
______
Response to Written Questions Submitted by Hon. Maggie Hassan to
Judith Marks
Question 1. Last year, Siemens Foundation funded a technical
assistance grant through the National Governors Association to assist
states, including New Hampshire, in scaling work-based learning
opportunities to better prepare youth for middle-skill STEM careers.
With labor market experts estimating that by 2020, the middle-skill
labor force will account for 65 percent of all jobs, these are
important initiatives to meet workforce demands. Some examples of Work-
Based Leaning are Career and Technical Education Programs, internship
opportunities, apprenticeship and even job shadowing and mentorship.
These opportunities help to ensure that our young people are better
prepared for the workforce by learning through actual work experience.
In NH, a team working on this effort has set a goal for every student
to have access to a work-based learning opportunity by 2020. Ms. Marks,
Siemens has led the way in providing these types of opportunities and
has funded efforts to expand them around the country. What advice do
you have for other companies looking to do the same and how do you
think the Federal Government can better incentivize corporate actors to
play a larger role in building our STEM workforce?
Answer. As a leader in industry and workforce development, Siemens'
experiences speak to the challenges that employers face developing
talent pipelines in the United States. Whether looking for skilled
workers to fill internal positions, hearing similar concerns from its
customers across the country and industry sectors, or addressing
broader societal needs for youth employment and educational attainment
through its philanthropic efforts, Siemens' experiences offer clear
lessons for leaders who want to eliminate barriers for employers. Let
me highlight some of those lessons, how Siemens is supporting
scalability, and ideas on how the government can assist the private
sector in addressing skill challenges.
Supporting Industry-centric Training and Partnerships with Community
Colleges
Programs across Siemens businesses, including Siemens Cooperates
with Education, Siemens Mechatronic Systems Certification Program, and
the Global Opportunities PLM Academic Program, invest in developing a
skilled labor market for customer communities across the country by
providing curriculum, software and train-the-trainer instruction. From
a philanthropic perspective, the Siemens Foundation is advancing
excellence in community colleges, the major provider of technical
skills training in the U.S., by supporting the Aspen Prize for
Community College Excellence. Each of these projects advances industry-
centric training and work in partnership with public sector education
leaders and institutions in K-12, community colleges, and workforce
systems.
Scaling Apprenticeships and Work-based Learning
Siemens is dedicated to expanding registered apprenticeships and
other high-quality work-based learning models in the U.S. because we
have witnessed and benefitted from those models throughout our history
in Germany. In 2015, Siemens partnered with Dow, Alcoa, and the
National Association of Manufacturers to publish the first ``how-to
guide,'' called the Playbook, for manufacturers interested in adopting
the apprenticeship model. Siemens is committed to sharing the value of
apprenticeships with other employers in the U.S. As a company, Siemens
participates in a public-private partnership in the American
Apprenticeship Initiative (AAI), the largest Federal investment ever
made to expand apprenticeships in the U.S. The Siemens Foundation is
also working with AAI and the National Governors Association's (NGA)
Center for Best Practices to help all AAI partners succeed. The
Foundation is advancing thought leadership on apprenticeships in the
U.S. by sponsoring the first ever national conference on
apprenticeships--Apprenticeship Forward. The Foundation is also
advancing work-based learning by working through the NGA with top state
leadership to embed effective models in state education systems.
Expanding Awareness about Quality STEM Skilled Careers
Across its business and philanthropic efforts, Siemens is
addressing a stigma sometimes associated with middle-skill, technical
or skilled careers, or the educational pathways necessary for these
jobs. The Siemens Foundation, in partnership with the Aspen Institute,
promotes the substantial economic opportunities available through STEM
middle-skill jobs through the stories of Siemens Technical Scholars,
outstanding community college students and graduates pursuing STEM
technical careers. Through a partnership with Advance CTE, the
Foundation is identifying and disseminating best practices for
messaging that attracts students and parents to try career technical
education during the high school experience. Through stories like that
of Hope Johnson, Siemens is promoting the value of registered
apprenticeships to peers.
Policy Ideas
Through these experiences and more, Siemens has learned much about
the challenges many face in finding workers with the right skills. The
following recommendations may be useful in addressing those challenges
by government:
Identify and support quality community colleges interested
in integrating academic and industry-centric education that
meet labor market demand and employer talent needs; support
students pursuing these educational pathways through student
aid;
Expand registered apprenticeship programs to more
industries, employers, community colleges and high schools;
Develop a vibrant ecosystem of public and private partners
to make it easier to replicate registered apprenticeships;
Incentivize employers to use registered apprenticeship
programs for their talent needs and support their
implementation requirements;
Promote the value of family-supporting careers obtained
through two year degrees, industry certifications or by
completing a registered apprenticeship
Question 2. New Hampshire receives $6 million from the U.S.
Department of Labor under the Workforce Innovation and Opportunity Act
(WIOA). As you likely know, the President's budget blueprint proposes
cutting 21 percent of the Department of Labor's budget and states that
the budget, ``Decreases Federal support for job training and employment
service formula grants, shifting more responsibility for funding these
services to states, localities, and employers.'' One thing these funds
go toward is workforce training and education in high-demand fields,
including WorkReadyNH which is a collaboration between state agencies
to ensure our workers have both basic skills and softskills when
entering or re-entering the workforce. With the health care sector
projected to increase by 14 percent between 2016 and 2021, and the IT
sector with a projected growth of 15 percent over the same period, job
training and education opportunities in these sectors, and others will
be essential. What do these proposed cuts mean to the ability of
companies like yours to find the workforce they need?
Answer. As you may know, Siemens has been a large supporter of
policies that support public and private partnerships at the state and
local level helping make strategic investment decisions for workforce
developments like Workforce Innovation and Opportunity Act (WIOA) as a
company and through our associations. It is important that government
leaders at all levels support this work through funding and supportive
policies. We stand at the ready to provide guidance as this debate
progresses.
Question 3. What I hear most from business leaders in New Hampshire
is that they do not have access to a skilled workforce. With the lowest
unemployment rate in the country at 2.7 percent--it is essential to not
only work with dislocated workers, but to support individuals in re-
joining the labor market and train individuals who are underemployed.
Organizations, like Families in Transition NH, have had a lot of
success lifting individuals out of poverty by providing wrap-around
supports, like affordable housing options, child care, job-training and
case management. As we talk about the importance of supporting and
improving job training programs, do you think it is important to
provide wrap-around services? Have you seen the impact of these kinds
of programs in your work?
Answer. Allow me address the question from the training perspective
and focused on advanced manufacturing, as that is the area where we
have experience. First let me reiterate what I said in my testimony,
and that is that at Siemens we pride ourselves on conducting business
locally, especially here in the United States. At our core, we are a
company that combines innovation with social responsibility. We believe
our mission extends beyond our customers, our employees, and our
shareholders. We believe we must also deliver lasting value to the
communities we serve. We believe it is important to deliver this value
through our commitment to helping the U.S. establish a new era of
advanced manufacturing, central to which are our efforts to build a
skilled workforce. The skill requirements, admittedly, have become much
more rigorous, and Siemens has both a business need and a
responsibility to help workers acquire these new, advanced skills.
Therefore, Siemens' workforce development efforts are addressing the
jobs of today as well as tomorrow. Our strategy is focused on workers
at all stages of their careers, from new entrants into the workforce to
dislocated workers seeking to re-enter, to current employees in need of
re-skilling. We call this industrial reskilling.
As an example, Siemens is a strong supporter of hiring Veterans. In
fact, since 2011, Siemens has hired over 2,500 veterans. Continuing our
strong support for hiring veterans, we recently committed to hiring a
minimum of 300 U.S. military veterans per year for the next three
years, providing them with additional skills training to make them
successful at performing roles at Siemens' various U.S. facilities. We
also invest approximately $50 million annually for the training and
continuing education of our own U.S. workforce. Additionally, we are
helping to build a new ecosystem of public and private sector
partnerships that forge pathways to 21st century manufacturing skills
and to economic security.
______
Response to Written Question Submitted by Hon. Catherine Cortez Masto
to Judith Marks
Question. According to the Census Bureau's American Community
Survey, women make up 48 percent of the workforce, but only 24 percent
of STEM workers. What do you see as the largest barriers for women
interested in pursuing STEM education or careers? What steps do you
think we should be taking to eliminate these barriers?
Answer. At Siemens, we are working hard to bring awareness,
confidence and skills to girls and women in the field of STEM. We do
this through Siemens USA and through our Siemens Foundation. Let me
share with you two specific examples; one that shows our work in K-12
and another that focuses on ``middle skills''.
The first is what we used to call Siemens Science Day that I
referenced during my testimony. We now call it Siemens STEM Day
(www.siemensstemday.com) and it provides tools for students from their
first experiences with problem solving, experimentation, and the
scientific method, all the way through to an advanced understanding of
STEM principles. This online platform enables parents and teachers to
engage students (K-12) in STEM through tools, resources, and hands-on
activities. The materials emphasize the importance of STEM through
standards-aligned, fun and engaging hands-on classroom activities and
videos designed to support the development of students' ability to
investigate, question and understand how the world works within STEM
principles. We believe this helps to increase both interest and
confidence for girls in the STEM field.
A second example is the Siemens Foundation's STEM Middle-Skill
Initiatives. ``Middle-skill'' jobs are essential to the United States'
economic growth and provide promising career opportunities. In order to
help close the opportunity gap for young adults in STEM middle-skill
careers, the Siemens Foundation launched a workforce development
program, leveraging the experience and expertise of Siemens as an
industry leader and pioneer in workforce development. One of their
projects with the Aspen Institute's College Excellence Program, Siemens
Technical Scholars, identifies outstanding young adults overcoming
barriers and achieving success in excellent two year STEM programs at
community colleges in advanced manufacturing, energy, health care and
information technology. Many of these students serve as the voice and
face of the economic opportunities available in STEM technical careers
in videos we share to educate their peers about these opportunities and
the postsecondary education and training options available to achieve
them. This past year, I was honored to meet a young woman from New
Mexico name Chelsea Hartshorn who was named a Siemens Technical
Scholar. Not only is she a terrific student and a wonderful mother to
two young boys, but Chelsea has become a leader in her community
educating other women about the opportunities available in careers like
the one she's pursuing in solar panel installation by proudly sharing
her story. Chelsea is just one of many outstanding young women we have
met through the Siemens Technical Scholars program. Having them tell
their stories to other young women is a powerful tool to encourage more
women to step confidently into STEM careers.
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