TALENT: THE TRAINING CHALLENGE

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1 TALENT: THE TRAINING CHALLENGE May 17, 2017 Washington, D.C. Don Whyte, President/CEO, NCCER Jennifer Wilkerson, Director, NCCER Michael Bruggemann, President, TIC Tim Johnson, Sr. Director, NCCER

2 AGENDA 1. What is the Challenge? Don Whyte, NCCER President/CEO 2. How does NCCER recruit and train? Jennifer Wilkerson, NCCER Director, Marketing/BYF 3. How does TIC, a leader in workforce development, do it? Michael Bruggemann, President, TIC 4. What resources are available? Tim Johnson, NCCER Sr. Director, Government Affairs

3 Nearly half of what will be the built environment in 2030 doesn t exist yet. Brookings Institution Metropolitan Policy Program Report 2004 SOURCE: USA Today

3 M Less 5-Year Age Attrition ( 10% of Labor Force) (.

4 SKILLED LABOR SUPPLY/DEMAND GAP Anticipated Peak Non-Residential Labor Demand 6.3 M Current Non-Residential Labor Force (BLS) 5.3 M Less 5-Year Age Attrition ( 10% of Labor Force) (.5 M) Non-Residential Labor Force Net of Age Attrition 4.8 M Some estimates predict shortages of skilled Craft Professionals to be as high as 2,000,000 by 2020

5 US will face a shortage of 290,000 Welders by 2020 SOURCE: American Welding Society via USA Today Plus: 2+ Major Pipeline Projects $$Billions in Industrial Projects $$$Trillions proposed in Infrastructure

6 AGING WORKFORCE AND ATTRITION 2029

15% 19% 27% 25% 23% 28% 36% 35% 45% 52% 49% Over the past decade, the skilled workforce

7 SKILLED LABOR SHORTAGE IMPACT Cost of labor Productivity Quality Turnover Schedule Absenteeism Safety Overall project budget Re-work No impact Project start delays Project cancellations 7% 15% 19% 27% 25% 23% 28% 36% 35% 45% 52% 49% Over the past decade, the skilled workforce shortage has caused serious industry problems national survey of 531 construction industry leaders.

8 NATIONAL ASSOCIATION OF HOME BUILDERS (NAHB) POLL Survey of young Americans ages 18-to-25 shows that almost no millennials want a career in construction 2011 national survey of 531 construction industry leaders.

9 WHY TRAIN? CII Research Team 231 Craft Training in North America Summary of Expected Training Benefits with a 1% of Labor Cost Investment Research Summary Average Improvement Capital & Maintenance Projects Schedule Safety Quality Productivity Improvement 11% Turnover Decrease 14% Absenteeism Decrease 15% Injury Decrease 27% Rework Decrease 25% SOURCE: Construction Industry Institute, CII Research Summary (08/2007) "Construction Industry Training in the United States & Canada"

10 Research Team 335: Improving the U.S. Workforce Development System 600,000 US Apprenticeship System Active Apprentices versus NCCER Active Students 500, , ,000 $ 365,799, , ,000 Nearly 7,000,000 Total by NCCER 132, ,583 9% NCCER Students US Registered Apprentices Military Apprentices Added US Registered Construction Apprentices

11 Increase Productivity Reduce Manpower Demand Close the Skills Gap ,185 47% 53% 65% 86% 100% , IndustrialCraft Knowledge Verified Industrial Craft Assessment Attempts

12 How does NCCER recruit and train? Jennifer Wilkerson Director Marketing, PR and Build Your Future May 17, 2017 Washington, D.C.

13 Where Do We Start? Jennifer Wilkerson, Director of Marketing, PR and Build Your Future

14 RECRUIT - BUILD YOUR FUTURE GOALS

Resources Based on Survey Results How to guides Kits and Activities

15 RECRUITMENT RESOURCES Industry and Education Resources Posters, Trading Cards, videos, best practices Online Store Career Center Career Day Resources Based on Survey Results How to guides Kits and Activities Website & social media Infographics, free resources, engagement & conversation

16 BYF STUDENT SURVEY RESULTS Do career events work? YES! students surveyed 2016 Results: 55% viewed construction careers more favorable after the event 85% said interest was increased after learning about careers in construction 25% would like to pursue a career in construction after attending the event

17 RECRUIT MILITARY Military Task Based Alignments 10 Army MOS codes aligned to NCCER training 36 Seabee ratings currently being worked on 9 Air Force Specialty Codes released end of May

18 CREDENTIALING PORTAL

19 MAKE CONNECTIONS WITH SCHOOLS CONSTRUCTION CAREER PATHWAYS A Guide for Effective Collaboration Tips for Building Effective Advisory Boards Best Practice Profiles

20 CONSTRUCTION CAREER PATHWAYS Connection Map Helps connect construction industry representatives and educators in local areas and regions. Sign up at pathways.nccer.org/connection-map

CONNECT 16 Career Clusters and 79+ pathways Partners with businesses to prepare students for the workforce Fulfills employer needs in high-skill, high-wage,

21 CONNECT 16 Career Clusters and 79+ pathways Partners with businesses to prepare students for the workforce Fulfills employer needs in high-skill, high-wage, highdemand areas Prepares students to be career- and college- ready by providing core academic skills, employability skills and technical, job-specific skills

22 TRAINING WHY TRAIN? NCCER UTILIZED IN ALL 50 STATES 500+ Accredited Organizations Represents over 3,300 schools/training locations Issues approximately 250,000 credentials per year

Assessment Assessed Training Prescribed Knowledge Verification Performance Verification

23 TRAINING AND ASSESSMENT PROCESS Accreditation Instructor Certification CRAFT ASSESSMENT EXPERIENCED CRAFTSPERSON CRAFT TRAINING ENTRY-LEVEL CRAFTSPERSON Journey-level Assessment Assessed Training Prescribed Knowledge Verification Performance Verification Optional NCCER Core Curriculum NCCER Craft Curricula Certificate of Recognition Certified Plus

24 INDUSTRY RECOGNIZED CREDENTIALS NCCER s Registry System Confidential, Secure Storage Documents training and skills attainment Provides Portable, Industry Recognized Credentials Free, secure, user-friendly way to submit, review and manage training and certification information online Free, secure, user-friendly way to submit, review and manage Performance Verification credentials online Mobile Credentialing in

career day events Give presentations at schools Sit on an advisory council

25 WHERE CAN INDUSTRY START? Support a job site visit from local construction students Participate in career day events Give presentations at schools Sit on an advisory council Establish an internship program Join the Construction Career Pathways map Develop pathways for recruits and employees Provide training

26 How does TIC, a leader in workforce development, do it? Michael Bruggemann President TIC A Kiewit Corporation Subsidiary May 17, 2017 Washington, D.C.

27 TRAINING AT TIC Michael Brueggemann TIC A KIEWIT CORPORATION SUBSIDIARY MAY 17, 2017

IN THE BEGINNING 1980s 1992 1996 Began informal training Started official

28 IN THE BEGINNING 1980s Began informal training Started official apprentice programs Joined consortium to form NCCER TIC A KIEWIT CORPORATION SUBSIDIARY 28

TRAINING TO DATE We continue to grow our programs to

29 TIC Training Center in Steamboat, CO 6,000 sq.ft. included labs, classrooms and offices COMMITMENT TO TRAINING TO DATE We continue to grow our programs to meet the demands of the business TIC A KIEWIT CORPORATION SUBSIDIARY 29

WHERE WE ARE TODAY STATE-OF-THE-ART FACILITY Building on 7.

SF of outdoor and craft lab space CAPACITY Ability to host up to

apprentice academy courses ranging from 2-3 weeks 40 management

30 WHERE WE ARE TODAY STATE-OF-THE-ART FACILITY Building on 7.5 acres in Aurora, CO Featuring 53,000 SF of indoor and 100,000 SF of outdoor and craft lab space CAPACITY Ability to host up to 1,900 craft and 1,500 staff learners annually COURSES 70 craft apprentice academy courses ranging from 2-3 weeks 40 management academy courses ranging from 1-7 days TIC A KIEWIT CORPORATION SUBSIDIARY 30

NCCER- ACCREDITED ENTRY LEVEL Core Curriculum APPRENTICE

Crane operator Welding Pipefitting Millwright Electrical

Electricians preparing for taking state licensing State pipe

31 NCCER- ACCREDITED ENTRY LEVEL Core Curriculum APPRENTICE PROGRAM AND UPGRADE TRAINING Form setting Heavy rigging Crane operator Welding Pipefitting Millwright Electrical Structural steel Rigging Carpentry LICENSING PREP Electricians preparing for taking state licensing State pipe / weld / mechanical NCCCO Crane Operators TIC A KIEWIT CORPORATION SUBSIDIARY 31

32 CRAFT TRAINING PROGRAMS TIC A KIEWIT CORPORATION SUBSIDIARY 32

MEETING THE DEMANDS OF THE BUSINESS ACCELERATED WELDING PROGRAM / CERTIFICATIONS Combined Level 1 and 2 focus on lab time building quality production welders Minimized time between sessions to 6

33 MEETING THE DEMANDS OF THE BUSINESS ACCELERATED WELDING PROGRAM / CERTIFICATIONS Combined Level 1 and 2 focus on lab time building quality production welders Minimized time between sessions to 6 months Graduate all levels in months versus 4 years MOBILE WELDING SUPPORT Instructors traveling to job-sites to help critical needs and continue to build highquality welders Assist with on-site testing/training of new hires TIC A KIEWIT CORPORATION SUBSIDIARY 33

MEETING THE DEMANDS OF THE BUSINESS PIPEFITTING Focus on lab time and pushing craft out of their comfort zone Like welding, provide mobile pipefitting support to help critical needs, on-site testing,

34 MEETING THE DEMANDS OF THE BUSINESS PIPEFITTING Focus on lab time and pushing craft out of their comfort zone Like welding, provide mobile pipefitting support to help critical needs, on-site testing, etc. ELECTRICAL Focus on lab time that helps prepare for the job and ultimately electrical licensing Mobile support for testing and preparing electricians for testing TIC A KIEWIT CORPORATION SUBSIDIARY 34

STAFF / MANAGEMENT TRAINING SAFETY LEADERSHIP Setting the culture

disciplines OPERATIONS MANAGEMENT Provide the necessary technical

FRONT LINE SUPERVISOR Series of topics on cost, planning and

35 STAFF / MANAGEMENT TRAINING SAFETY LEADERSHIP Setting the culture and the tone FIELD OPERATIONS Exposing new engineers to each of the disciplines OPERATIONS MANAGEMENT Provide the necessary technical and proprietary software training to be productive in the field FRONT LINE SUPERVISOR Series of topics on cost, planning and scheduling, quality, safety and leadership TIC A KIEWIT CORPORATION SUBSIDIARY 35

National Craft Championships 2014 Silver Winner Learning Elite Safety Award Pipefitting ABC National Craft

36 AWARDS / RECOGNITION 2017 Safety Award Electrical ABC National Craft Championships 2016 Gold Winner Learning Elite 2015 Gold Winner and Best Company Winner Learning Elite Gold in Pipefitting and Silver in Welding ABC National Craft Championships 2014 Silver Winner Learning Elite Safety Award Pipefitting ABC National Craft Championships Excellence Craft Development Program Construction Users Roundtable TIC A KIEWIT CORPORATION SUBSIDIARY 36

37 COST / BENEFITS Differentiating contractors who prioritize training is key to INDUSTRY SUCCESS. TIC A KIEWIT CORPORATION SUBSIDIARY 37

38 INVOLVED BEYOND TRAINING HOST INDUSTRY AND GOVERNMENT MEETINGS U.S. Department of Labor Meeting Office of Apprenticeship Programs National Association of State Contractors Licensing Agencies NCCER / BYF SkillsUSA Windham School District Texas Department of Corrections Education TIC A KIEWIT CORPORATION SUBSIDIARY 38

39 What resources are available? Tim Johnson Sr. Director Government Affairs May 17, 2017 Washington, D.C.

40 NCCER AVAILABLE RESOURCES Association Programs In House Training Programs Secondary School Programs Post Secondary Programs Community Colleges Technical Schools For Profit Schools

41 2017 NCCER PARTNERS 41

42 2017 BOARD OF TRUSTEES 42

43 RECOGNIZED BY INDUSTRY 43

NCCER SCOPE GOVERNMENT WORKFORCE INDUSTRY

State & Local Workforce Agencies Military State

Associations Organized Labor Leased Labor

Shipbuilding Petrochemical Energy Secondary

44 NCCER SCOPE GOVERNMENT WORKFORCE INDUSTRY EDUCATION Job Corps YouthBuild Corrections State & Local Workforce Agencies Military State Licensing Agencies Owners Contractors Associations Organized Labor Leased Labor Construction Pipeline Manufacturing Shipbuilding Petrochemical Energy Secondary Community Colleges Career Colleges Propriety Schools Training Academies Employment Based

45 STATE-SPONSORED CRAFT TRAINING: SECONDARY AND POSTSECONDARY EDUCATION WA VT ME OR NV ID UT MT WY CO ND SD NE KS MN IA MO WI IL MI OH IN KY WV NY PA VA NJ DE MD DC NH MA RI CT HI CA AZ NM OK AR LA TN MS AL GA NC SC AK TX FL State Secondary & Postsecondary Education Sponsorship State Secondary Education Sponsorship State Postsecondary Education Sponsorship States with Secondary/Postsecondary Association Sponsorship and/or Local Training 45

46 One Industry Committed to Careers that Build America

47 Founding Members MISSION To be an industry of choice that speaks with a single voice and consistent messages to promote and advance careers in construction.

48 WHY was the CCA created? Demand for skilled construction professionals is projected to exceed the supply well into the 2020 s. Some estimates project a need for 2 million craft professionals by 2020 Construction management professionals and engineers face similar shortages. For over 25 years this demand supply imbalance has been a consistent and persistent issue facing all sectors of the construction industry. Projections are that the demand for skilled construction professionals will continue to increase over the next 7 to 10 years.

49 WHY was the CCA created? Two specifics items make the challenge even greater: 1) The pool of available young talent from which to recruit is shrinking Statistics tell us that, today, the percentage of the U.S. population that is under 18 is declining and the percentage of our population that is over 50 is increasing. 2) Competition from other industries is increasing As the economy continues to rebound, industry specific recruiting programs are growing at a rapid rate. More than ever before, construction must compete with automotive, maritime, healthcare, aerospace, transportation, manufacturing, and many other industries that have similar demand supply imbalances.

50 WHY was the CCA created? Over the last 20 years, the various sectors of the construction industry have developed and deployed a myriad of career awareness and recruiting programs. Numerous pockets of excellence were created and many programs realized some level of effectiveness. It is clear that: New and innovative thinking is required. The various sectors of the construction industry must come together with broad commitment, pooled resources, singular focus and consistent messages. All sectors of construction must speak with one voice as we compete against growing competition to capture the hearts and minds of the next generation of construction professionals.

51 Collectively, CCA will leverage formidable resources in support of it s critical mission that includes: Nearly 100,000 Contractors Over 500 Construction Users Over 2 Million Craft Professionals Nearly 800,000 Construction Students Over 200,000 CTE Professionals Over 250,000 Counselors Nearly 80,000 Instructors/Teachers Over 120 University Programs Over 1,000 Industry, Secondary and Postsecondary Training Programs Nearly 10,000 Training Locations

52 GOVERNMENTAL ISSUES IMPACTING CONSTRUCTION CRAFT TRAINING Perkins Reauthorization WIOA State Legislative Issues US DOL Apprenticeship Trump Infrastructure Investment State by State Career and Technical Education Reinvention 52

53 THANK YOU THANK YOU Questions NCCER Progress Boulevard, Alachua, FL 32615

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