Ohio Alternative Energy Job Survey Analysis

Transcription

1 State of Ohio Ohio Alternative Energy Job Survey Analysis February 2013 Prepared for Development Services Agency Office of Energy Prepared by ICF International 9300 Lee Highway Fairfax, Virginia USA

2 Table of Contents 1. Introduction Approach Defining Alternative Energy Jobs in Ohio Methodology Overview Survey Data Collection Survey Findings Alternative Energy Employment... 7 Alternative Energy Employment by Sector... 7 Alternative Energy Employment by Technology... 8 Alternative Energy Employment by Sector and Technology Alternative Energy Employment by Industry Alternative Energy Employment by Region Alternative Energy Full-Time Employment and Part-Time Employment Alternative Energy Employment by Establishment Size Comparison of 2011 and 2012 Data Projected Employment Employment Growth by Technology Employment Growth by Region Employment Growth by Job Function Market and Policy Factors Affecting Business Growth Factors Cited as Supportive of Business Growth Factors Cited as Inhibiting Business Growth Differences in Ratings by Sector Existing Ohio Policies and Programs Potential Future Ohio Policies and Programs Conclusion Current Alternative Energy Employment Projected Employment Growth Market and Policy Factors Affecting Business Growth Existing Ohio Programs and Policies Potential Future Ohio Programs and Policies Appendix A. Alternative Energy Survey... A-1 Appendix B. Detailed Survey Methodology... B-1 Appendix C. Supplemental Figures to Section 3... C-1 Appendix D. List of NAICS Codes for Each Industry... D-1 ICF International i February 2013

3 List of Tables Table 2-1. Employer Survey Response Rates by Region and Sector... 7 Table 3-1. Alternative Energy Employment, by Sector... 8 Table 3-2. Alternative Energy Employment, by Technology... 9 Table 3-3. Alternative Energy Employment, by Sector and Technology Table 3-4. Alternative Energy Employment, by Industry Table 3-5. Establishments and Employees in Ohio's Alternative Energy Economy Table 3-6. Green Jobs (2011) Versus Alternative Energy Jobs (2012) NAICS Codes Specific to the Energy Efficiency Industry... D-1 NAICS Codes Specific to the Renewable Energy Industry... D-5 Other NAICS Codes Generally Applicable to Advanced Energy... D-7 List of Figures Figure 3-1. Share of Alternative Energy Employment, by Technology... 9 Figure 3-2. Alternative Energy Employment, Percent of Jobs by Sector Figure 3-3. Share of Alternative Energy Employment, by Industry Figure 3-4. Alternative Energy Employment, by Region Figure 3-5. Alternative Energy Employment, by Region and Sector Figure 3-6. Alternative Energy Employment, by Region and Job Function Figure 3-7. Full-Time Jobs as a Percentage of All Jobs, by Technology and Sector Figure 3-8. Alternative Energy Establishments, by Establishment Size Figure 3-9. Employment at Alternative Energy Establishments, by Establishment Size Figure Current Jobs and Expected Hirings, by Sector Figure Projected Short-Term Job Growth, by Sector Figure Current Jobs and Expected Hirings, by Technology Figure Projected Short-Term Job Growth, by Technology Figure Current Jobs and Expected Hirings, by Region Figure Projected Short-Term Job Growth, by Region Figure Current Jobs and Expected Hirings, by Job Function Figure Projected Short-Term Job Growth, by Job Function Figure Factors Cited as Supporting Business Growth Figure Factors Cited as Impeding Business Growth Figure Factors Cited as Supporting Business Growth, by Sector Figure Factors Cited as Impeding Business Growth, by Sector Figure Policies Cited as Supporting Business Growth Figure Policies Cited as Impeding Business Growth Figure Policies Cited as Supporting Business Growth, by Sector Figure Policies Cited as Impeding Business Growth, by Sector Figure Potential Programs and Policies Cited as Having a Presumed Positive Effect on Business Growth Figure Potential Programs and Policies Cited as Having No Presumed Effect on Business Growth Figure Potential Programs and Policies Cited as Having a Positive Effect on Business Growth, by Sector ICF International ii February 2013

4 Figure Potential Programs and Policies Cited as Having No Presumed Effect on Business Growth, by Sector Figure Establishments Citing Potential Programs and Policies as Having a Presumed Positive Effect on Business Growth, by Establishment Size ICF International iii February 2013

5 1. Introduction In response to a request by the Ohio Development Services Agency (formerly known as the Ohio Department of Development), ICF International (ICF) and Wright State University (WSU) conducted a renewable energy (RE) and energy efficiency (EE) job survey across the state. The purpose of the survey was to provide the Ohio Development Services Agency with data about current (2012) and projected alternative energy (AE) employment and establishments in Ohio. To contextualize that data, the survey also aimed to provide a better understanding of the characteristics of the AE economy by sector or value-chain and technology as well as to identify factors that promote market growth or barriers that inhibit AE-related business in Ohio. This report presents the results of the 2012 survey of AE employers. The report is organized into three sections: approach, findings, and conclusions. The approach section describes the survey methodology, and outlines any data limitations and the measures taken to compensate for them. The findings section is organized into three subsections, as follows: 1. current AE employment, by sector and technology; 2. projected AE employment; and 3. market and policy findings. The report concludes with a summary of key findings and a discussion of employers views regarding a range of alternative energy policy considerations. 2. Approach 2.1. Defining Alternative Energy Jobs in Ohio The process for defining an AE job in Ohio was an iterative one based on multiple conversations between ICF and WSU industry experts and the Ohio Development Services Agency. First, the study team reviewed the Bureau of Labor Statistics (BLS) definition for green employment 1 and compared this definition to previous green job studies completed by ICF in the Mid-Atlantic Region and the State of Kentucky, and by WSU in the State of Ohio. Each definition included different sectors and industries within their scope some more narrow and others more inclusive. 2 Ultimately, the team chose to base its initial definition largely about the sectors and industries that were included within the scope of the previous (2011) Ohio survey conducted by WSU, because of their applicability to the objectives of this study as well as the ability to compare results between the two Ohio-based studies. ICF s industry experts then refined the list of selected North American Industrial Classification System (NAICS) codes to better align with the on-the-ground realities of Ohio s RE and EE businesses. Based on the industries ultimately included in the analysis, the study team chose to use the term alternative energy versus the previously used green for two reasons. First, the terminology more directly references the types of RE and EE industries that were identified as key drivers of employment 1 2 See 75 Federal Register , Tuesday, September 21, This report uses the term sector in regard to any two-digit NAICS category (i.e., manufacturing, construction, and professional services) and uses the term industry in regard to more specific NAICS categories or related groupings (i.e., solar energy, semiconductor manufacturing, and solar manufacturing). ICF International 4 February 2013

6 in the state and eliminates any confusion about whether non-energy green products are included in the scope of the definition. Second, the term corresponds with Ohio s regulatory terminology, specifically the Alternative Energy Portfolio Standard (AEPS), and allows for a more fluid transposition to regulatory initiatives. The next phase of the analysis involved the organization and classification of the AE jobs. In many cases, workforce analyses AE jobs are subdivided into technology areas (e.g., solar, wind, biomass). However, because this study will be used as a baseline census and possibly in form those initiating policy focused on industry development and job creation, the study team decided to emphasize the AE economy analysis by sector (e.g., manufacturing, installation, research) and secondarily by technology area. This type of analysis will better inform those initiating state policies, as they tend to have different effects on establishments depending on their location in the value chain. The three sectors defined for this project are: manufacturing (including production of alternative fuels from organic materials); installation, maintenance, and power generation operations; and research, design, consulting, and marketing. The initial technology areas included were: renewable energy, energy efficiency, and other types of alternative and advanced energy. The renewable energy technology area was further subdivided using specific renewable energy technology because different technologies may warrant different policies. The final list of technology areas analyzed is: biomass solar wind other renewables energy efficiency bioenergy and alternative fuels advanced energy and alternative vehicle technologies The survey also allowed respondents to self-identify using the other category if they felt that their AE employment was not appropriately categorized in one of the pre-defined categories. See the Survey Instrument in Appendix A for more details about the descriptions provided to respondents. A threshold was needed for determining whether a job should be defined as an AE job in the analysis. For example, in ICF s earlier study in the Mid-Atlantic Region, a job was considered green if 50 percent or more of a worker s time was spent producing a green product or supplying a green service. Alternatively, the WSU study considered a job green if it had a primary function in producing greenrelated products or providing green-related services. Ultimately, this survey effort aligned its approach with the 2011 WSU study so that the results could be compared to the previous study. This study characterizes an AE job as one of three types: a primary job, a secondary job, or a flexible support job. A primary job is one in which an employee has a primary function in providing products and/or services that benefit the environment. These functions may reduce energy consumption, improve EE, help generate energy from renewable resources like wind or solar power, or provide consulting services relevant to any of these topics. Support employees support the primary employee in providing products and/or services that benefit the environment. Examples of support jobs include technical support, marketing, and purchasing. Flexible support jobs use employees who occasionally provide products and/or services that benefit the environment; they are primarily engaged in AE activities, but on a temporary basis. ICF International 5 February 2013

7 2.2. Methodology Overview Survey Data Collection This section provides an overview of the survey data collection methodology. Appendix B contains more detailed information about the survey-sampling plan, data collection, response weighting, response rate protocol, and study limitations. The survey questionnaire was developed by the study team in partnership with the Ohio Development Services Agency. The survey was designed to capture an accurate estimate of the number of private business establishments and employees in Ohio s AE economy as well as to gather insights to inform policy. The survey instrument was pretested during the first 3 weeks of October 2012, full distribution of the survey began on October 25, 2012, and the survey closed on December 29, Recipients of the survey were private business establishments listed in Ohio s Quarterly Census of Employment and Wages (QCEW) database. The QCEW program is a census of monthly employment and quarterly wage information organized by six-digit NAICS industry. Business establishments having a detailed industry classification code that indicated their potential direct or indirect (i.e., value chain) involvement in the production of goods and services that benefit the environment were randomly sampled for the study. An extended industry definition stated that these companies might reduce energy consumption, improve EE, help generate energy from natural resources like wind or solar power, or provide consulting services relevant to any of these topics. The survey was made available by , facsimile, first-class mail, and online to suit employer requests. Each establishment was issued a unique employer identification number (ID) that was used on all contact materials. This unique establishment ID allowed WSU to keep track of responses to ensure that (1) respondents did not answer the survey more than once and (2) WSU did not contact an establishment that had already responded. There were a small number of cases where an establishment representative stated that she/he had been asked to participate more than once. In those cases, the mishap was because of the close timing of the participant outreach and their completion of the survey. To support survey respondents, 24/7 support was available through a toll free number and via an address. Survey participants were notified that their answers would be kept confidential. All data were stored on WSU servers with access restricted to team members approved to work with the data. The study achieved an overall response rate of 53 percent. A sample of 7,703 business establishments was selected using a Sample Allocation Method; however, 786 establishments had to be discarded because of apparent business closure (return-to-sender mailed items, confirmed business closure, and confirmed business relocation out of the specified geographic strata). A total of 3,669 completed surveys were returned with the majority (86 percent) reporting that their establishment did not provide a good or service benefiting the environment according to the definition provided. The proportion of respondent companies that fit this description is 14.3 percent, with a 95 percent confidence level. This indicates that, on average, between 13 percent and 15 percent of companies surveyed from the sectors of interest provide a product or service that benefits the environment. This equates to more than 500 businesses, for which the results were weighted appropriately to represent the population of all such businesses in Ohio. ICF International 6 February 2013

8 The following table presents the response rates by region and sector. Table 2-1. Employer Survey Response Rates by Region and Sector Geographic Region (major urban areas) Response Rate Central (Columbus) 51.5% Northeast (Cleveland, Akron, Youngstown) 47.4% Northwest (Toledo) 56.0% Southeast (Nelsonville) 51.7% Southwest (Cincinnati) 51.0% Western (Dayton) 58.0% Targeted Sector Response Rate Bioproduction 55.2% Manufacturing 52.7% Construction and Repair Services 49.8% Research, Design, and Consulting Services 52.4% As found in other surveys of this type, the proportion of people employed in jobs associated with the production of goods and services benefiting the environment are relatively small. For example, the U.S. Bureau of Labor Statistics found that green goods and services accounted for 2.4 percent of total U.S. employment in In this survey of AE companies in Ohio, the percentage of jobs associated with the production of goods and services that benefit the environment was approximately 5 percent in most industries. 3. Survey Findings 3.1. Alternative Energy Employment Based on our survey findings, in 2012, Ohio s AE economy included a total of 31,222 full-time and parttime workers employed at 845 establishments. 3 These establishments supported a variety of sectors, industries, technologies, and functions throughout the value chain. The following subsections break down employment by sector, industry, technology, and region. Alternative Energy Employment by Sector This report uses the term sector synonymously with function or value chain segment. Table 3-1 below provides a breakdown of employment by value chain sector. As shown, manufacturing is the state s largest alternative energy sector, comprising 43 percent of all AE jobs. The construction, installation, and maintenance sector holds 37 percent of all AE jobs; the professional services sector constitutes 20 percent; and the biosciences sector has less than one percent. 3 It should be noted that depending on the specific metric presented, not all analyses will sum to the total of 845 establishments and 31,222 jobs, because of incomplete responses. ICF International 7 February 2013

9 Table 3-1. Alternative Energy Employment, by Sector Value Chain Sector Total Employment Manufacturing 13,317 Construction/Installation/Maintenance 11,479 Professional Services 6,389 Biosciences 37 Total 31,222 It is important to note that the manufacturing sector is under-represented in the survey analysis because of the fact that manufacturers such as those related to wind component manufacturing often produce products for other industries beyond the wind industry. While the wind industry considers Ohio manufacturers to be critical to their value chain, Ohio manufacturers don t consider their wind-related products to be a dominant aspect of their business. Because of this, many firms did not identify themselves as key AE establishments in the survey and are not represented in this data. This under-representation must be considered throughout this report. Alternative Energy Employment by Technology First Solar One example of a major employer in Northwest Ohio is the First Solar panel manufacturing facility in Perrysburg, Ohio, which employs approximately 1,200 people. The facility accounts for nearly half of all solar manufacturing in the northwest region and about one-third of solar manufacturing in Ohio. Table 3-2 presents the total number of workers employed (including full-time and part-time) in each technology area. Figure 3-1 illustrates the share of total employment in the AE economy in each technology area. As shown, almost 12,200 people were employed in EE, which amounts to approximately half of the workers in the AE economy. Approximately 7,100 workers, or 29 percent of those employed in AE, were employed in renewable energies (including solar, wind, biomass, and other renewables). Seventy-nine percent of renewable energy jobs, and 23 percent of all jobs in the AE economy, were attributable to solar energy. The remaining 22 percent of AE jobs were in advanced energy, bioenergy and alternative fuels, and other areas written in by survey respondents. Go Sustainable Energy Based in Columbus, Ohio Go Sustainable Energy offers consulting services to clients interested in reducing energy use in an economical and sustainable manner. For over ten years Go Sustainable Energy has worked in several market sectors including private industry, commercial, municipalities, utilities, non-profits, and schools. This vast client base combined with experienced energy-efficiency engineers allows Go Sustainable Energy to offer a range of consulting services including passive solar building consulting, energy audits, building energy simulations, Powerpurchase agreement reviews, trainings and workshops, and energy data regression analysis. Tweleve percent of companies reported other as their relevent technology. A study of all companies selfreporting as other shows two common themes. One is that the company is so small that many employees work across many or all the categories that were provided. For example, a company wrote in the other box, All people work in all areas - analyzing and ICF International 8 February 2013

10 forecasting the energy market. The second theme is that companies are producing products that serve multiple categories offered on the survey. For example, one manufacturer wrote, [We are] Manufacturers of battery chargers for over 50 years. From chargers for: electric powered wheelchairs to electric powered buses; starting/lighting batteries in cars to trucks; standby power in telemetry units to pipelines. Battery chargers for lead acid batteries of all types, used on any type of equipment, anywhere. For more discussion of the other respondants, refer to Appendix B. Table 3-2. Alternative Energy Employment, by Technology Technology No. of Jobs 1 Energy Efficiency 12,183 Solar 5,619 Other 3,056 Advanced Energy 1,785 Other Renewables 975 Bioenergy and Alternative Fuels 586 Wind Biomass Includes full- and part-time employment in primary, support, and occasional support functions. 2. Note under-representation of wind energy manufacturers Figure 3-1. Share of Alternative Energy Employment, by Technology 4% 3% 1% 1% Energy Efficiency 12% 7% 23% 49% Solar Other (e.g., landscaping, water mgmt, waste mgmt) Advanced Energy Other Renewables Bioenergy and Alt. Fuels Biomass Wind ICF International 9 February 2013

11 Alternative Energy Employment by Sector and Technology Table 3-3 presents the number of jobs in each sector for each technology, and Figure 3-2 shows the percentage of employment in each sector by technology. As shown, the manufacturing sector employs a high percentage of the solar (58 percent); bioenergy and alternative fuels (52 percent); advanced energy (69 percent); and other renewables (47 percent) industries workforces. In particular, manufacturing employs more than 3,200 people in the solar industry, the highest as a percentage of solar employment and second only to the EE industry in terms of gross job numbers. Many solar jobs in the installation, maintenance, and power generation operations sector and the research, design, and consulting sector were a result of the significant increase in rated solar capacity between Dovetail Solar and Wind Dovetail Solar and Wind (Dovetail) was founded in 1995 and has over 17 years of experience in three RE sectors; solar electric, solar thermal, and wind. Dovetail has offices in five Ohio locations as well as one location in southeast Michigan. Dovetail offers installation services, site analysis, and green building consultation and design. Dovetail serves commercial, farm, and residential customers across Ohio and surrounding states. Installation service projects to date span across all the regions of Ohio, southeast Michigan, northern Kentucky, eastern Indiana, western Pennsylvania, and the northern half of West Virginia and Installation jobs in the wind industry were largely attributable to two major wind farm construction projects, which employed 490 people at the peak of the construction/development phase, and will employ 30 full-time technicians going forward. Table 3-3. Alternative Energy Employment, by Sector and Technology Research, Design, Technology Manufacturing 1 Installation, Maint, Power Gen. Ops 1 Consulting, Total 1 Marketing 1 Biomass Solar 3, ,654 5,618 Wind Other Renewables Energy Efficiency 4,188 4,360 3,635 12,183 Bioenergy & Alt. Fuels Advanced Energy 1, ,785 Other 1,126 1, ,055 Total 10,690 7,465 6,565 24,720 1 Includes full- and part-time employment in primary, support, and occasional support functions. ICF International 10 February 2013

12 Figure 3-2. Alternative Energy Employment, Percent of Jobs by Sector Biomass Solar Wind Other Renewables Energy Efficiency Bioenergy & Alt. Advanced Energy Other 0% 20% 40% 60% 80% 100% Percent of Jobs in Sector Research, Design, Consulting, Marketing Installation, Maintenance, Power Generation Ops Manufacturing Jobs in the EE industry are relatively evenly distributed across manufacturing (34 percent); installation, maintenance, and power generation operations (36 percent); and research, design, consulting, and marketing (30 percent). The research, design, consulting, and marketing services sector employs generally a lower percentage of each technology s value chain than the other two sectors. Other AE jobs comprise about 12 percent of all jobs. Appendix C presents charts for each technology showing the percentage of employment by sector. Alternative Energy Employment by Industry Table 3-4 presents total AE employment in Ohio by industry (organized by NAICS Code) as well as the percent of jobs within each industry that are related to alternative energy. The specialty trade contractors (NAICS 238) industry has the largest number of AE jobs 9,133, which amounts to nearly 30 percent of all jobs in the AE economy. The 5 largest industries classified by total AE employment include: specialty trade contractors; professional, scientific, and technical services (NAICS 541) (6,389 jobs); computer and electronic product manufacturing (NAICS 334) (6,099 jobs); primary metal manufacturing (NAICS 331) (4,606 jobs); and construction of buildings (NAICS 236) (1,111 jobs). Third Sun Solar Based in Athens, Ohio Third Sun Solar has had 14 years of service in solar energy generation. Third Sun Solar delivers expertise in all areas of solar installation including initial consulting, project design, assistance with completing grant applications, compliance with regulations, and program management. Third Sun Solar also provides engineering, procurement, and construction management. Third Sun Solar has worked on more than 300 renewable energy installations ranging from small residential to mega-watt scale municipalities. Combined, the 5 largest industries accounted for more than 27,000 jobs, or more than 87 percent of jobs in the AE economy. Importantly, five of the nine largest industries classified by employment are manufacturing industries that likely produce components for wind or solar technologies. As mentioned above, the solar manufacturing industry is a major employment driver in Ohio. ICF International 11 February 2013

13 Table 3-4. Alternative Energy Employment, by Industry NAICS Code NAICS Title Employment 1 Percent of Industry Specialty trade contractors 9,133 7% 541 Professional, scientific, and technical services 6,389 3% 334 Computer and electronic product manufacturing 6,099 29% 331 Primary metal manufacturing 4,606 11% 236 Construction of buildings 1,111 3% 561 Administrative and support services 1,019 0% 332 Fabricated metal product manufacturing 764 1% 335 Electrical equipment and appliance manufacturing 468 2% 333 Machinery manufacturing 412 1% 324 Petroleum and coal products manufacturing 274 6% 811 Repair and maintenance 217 0% 325 Chemical manufacturing 212 0% 321 Wood product manufacturing 179 2% 327 Nonmetallic mineral product manufacturing 162 1% 337 Furniture and related product manufacturing 71 0% 326 Plastics and rubber products manufacturing 70 0% 111 Crop production 27 0% 112 Animal production and aquaculture 11 0% 1 2 Includes full- and part-time employment in primary, support, and secondary support functions. Calculated as the percentage of industry employment that is in alternative energy (includes government and private sector jobs). Source: U.S. Bureau of Labor Statistics, 2013, Quarterly Census of Employment and Wages. Table 3-4 also presents the percentage of jobs in AE in each industry. In most cases, AE employment in each industry represents only a small percentage of total employment in that industry, often less than 5 percent. This is a comparable proportion to that reported in similar surveys conducted in other states such as California, Michigan, Missouri, Oregon, Washington, and Maryland-Virginia and Washington D.C. In these other studies, AE employment represented between 3 and 7 percent of industry employment. The computer and electronic product manufacturing industry (NAICS 334) in Ohio was an anomaly, however, with nearly one-third of all jobs being in AE. Upon further analysis of the computer and electronic product manufacturing industry, it was found that solar technology is the major driver in this industry. Approximately 95 percent of the 6,099 AE jobs in the computer and electronic product manufacturing industry were in solar energy. Approximately 60 percent of these jobs were in manufacturing, while 40 percent of these jobs were in research, design, consulting, and marketing. Thus, the manufacturing and research, design, consulting, and marketing sectors in the solar industry appear to be major drivers of solar employment in Ohio and therefore a major driver of AE employment in the state. ICF International 12 February 2013

14 These figures are in line with a 2010 report by the Brookings Institution, which ranked Ohio number 22 for cleantech specialization or share of total employment. 4 Although only 2.0 percent of all jobs statewide were in cleantech, certain areas within the state were particularly strong. The Toledo metropolitan area, for example, was the fourth ranked metropolitan area in the country for cleantech specialization or share of total employment, where 3.9 percent of all jobs were in cleantech. The Cleveland metropolitan area was ranked 12 th in the country in this category, with 2.5 percent of all jobs in cleantech. 5 According to the report by the Brookings Institution, two percent of all jobs nationally are in cleantech. Figure 3-3 illustrates the share of total employment in the AE economy by industry. As shown, the largest 2 industries specialty trade contractors; and professional, scientific, and technical services accounted for approximately half of all jobs (15,522 jobs), and the 5 largest industries accounted for more than 87 percent of all jobs (approximately 27,000 jobs). Figure 3-3. Share of Alternative Energy Employment, by Industry 4% 12% Specialty trade contractors (238) 15% 20% 20% 29% Prof, scientific, and technical services (541) Computer and electronic product manufacturing (334) Primary metal manufacturing (331) Construction of buildings (236) All other industries 4 The Brookings Institution defines cleantech to include the green or clean or low-carbon economy the sector of the economy that produces goods and services with an environmental benefit. The scope of the report by the Brookings Institution is wider than the scope of this survey and report. For example, the Brookings Institution report included nonenergy categories such as organic food and farming, green architecture, and recycling and reuse, among others. 5 The Brookings Institution, Metropolitan Policy Program, 2011, Sizing the Clean Economy: A National and Regional Green Jobs Assessment. ICF International 13 February 2013

15 Alternative Energy Employment by Region The following figures present the number of jobs in AE for each region and are segmented by sector and job function. Figure 3-4 illustrates the size of each region s AE economy, while Figure 3-5, Figure 3-6, and the supplemental figures in Appendix C describe the type of jobs within each region. AE jobs are concentrated in the northern portion of the state with the northwest and northeast regions accounting for more than half of all jobs in AE (Figure 3-4). This trend closely follows the population concentration of Ohio; the two northern regions in Ohio have higher populations than other regions in the state and have more overall jobs. These results should still be interpreted with caution. The northeast region of Ohio has a strong wind turbine manufacturing industry and high employment levels in wind energy-related industries. Because respondents in these establishments did not classify their employees in an AE industry, they are not represented here; thus, AE employment in the northeast region is likely to be significantly understated. Figure 3-4. Alternative Energy Employment, by Region Edison Solar and Wind Located in northern Ohio, Edison Solar and Wind has brought custom designed electricity generation systems to both commercial and residential customers since Currently, Edison Solar and Wind is one of the largest wholesale distributors of renewable energy products in the United States. Products available through Edison Solar & Wind include PV modules, mounting hardware, line inverters, batteries, charge controllers, and solar pumps. In addition to design and installation of systems, Edison Solar and Wind provides services for all phases of a solar or wind project such as feasibility assessment, system design and engineering, and financial consulting. Edison Solar and Wind works to create grid-tie-in systems which allow customers two options for power supply: their own self-generated power or that provided by their local, public electric company. 2,121 3,768 3,152 5,051 7,175 9,957 Northwest Northeast Southwest Central Western Southeast The northwest region is the state s largest employing region (Figure 3-4), and the manufacturing sector is a major contributor within that region (Figure 3-5). Approximately 6,600 people, or 67 percent of all AE jobs, in the northwest region are employed in manufacturing, predominantly in the Toledo area. Although not quite as large, manufacturing is also a stronghold in the southwest region (i.e., in and around the Cincinnati metropolitan area). The construction, installation, and maintenance sector is the ICF International 14 February 2013

16 largest employer in the northeast (3,458 jobs) and western (2,218 jobs) regions, and although not the largest employer in the northwest region, it contributes a significant number of jobs (2,483 jobs). The professional services sector is also a significant employer in the northeast (2,274 jobs) and central (1,826 jobs) regions Figure 3-5. Alternative Energy Employment, by Region and Sector Northeast Northwest Western Central Southwest Southeast 0 1,250 2,500 3,750 5,000 6,250 7,500 Number of employees Professional Services Construction/Installation/Maintenance Manufacturing Biosciences The supplemental figures included in Appendix C subdivide employment by value chain sector for each technology within each region, and illustrate where technology clusters or employment hotbeds are located. The northwest region is a particular hotbed for solar employment and, more specifically, is becoming a nationally-recognized cluster for solar manufacturers. According to survey results, 62 percent of all solar jobs and 89 percent of all solar manufacturing jobs in Ohio are in the northwest region of the state. Toledo also known as Glass City has positioned itself at the heart of the solar manufacturing cluster by capitalizing on its longtime expertise in glass manufacturing. 6 Solar research, design, consulting, and marketing jobs the southwest region account for 57 percent of all jobs in that sector and 28 percent of all solar jobs in Ohio. In 2012, wind installation, maintenance, and power generation operations activity was centered in the northwest region and accounted for 64 percent of all jobs in the sector and 31 percent of all wind energy-related jobs in the state. This is largely because of the construction of two large wind farms in the region; annual employment in this sector for each region should continue to follow large-scale installations. 91 percent of the state s total workforce in wind manufacturing was concentrated in the northeast region. The majority of all research, design, consulting, and marketing jobs in wind were located in the central region of the state. The EE industry was most prominent in the northeast region where all three sectors (research, design, consulting, and marketing; installation, maintenance, and power generation operations; and manufacturing) were larger than in the five other regions. In particular, 38 percent of all installation, maintenance, and power generation operations were in the northeast region, which accounted for 14 percent of jobs state-wide. The northwest region was only minimally involved in the EE industry. 6 See, for example, ICF International 15 February 2013

17 Figure 3-6 breaks down the percentage of each region s AE jobs by primary function, support function, or occasional support function. The northwest region employs the most workers in primary (5,587) and support function (3,250) roles, while the northeast region employs the most workers with an occasional support function (1,157). For most regions, jobs with a primary function in AE account for at least half of the AE jobs in the region; in the southeast region, primary function jobs account for more than 90 percent of all jobs. The southwest region is the only region in which jobs with support functions outnumber jobs with primary functions; 58 percent of the 5,051 jobs in the southwest region are support jobs. Figure 3-6. Alternative Energy Employment, by Region and Job Function Northeast Northwest Western Central Southwest Southeast 0 1,000 2,000 3,000 4,000 5,000 6,000 Number of jobs Primary Function Support Function Occasional Support Function Alternative Energy Full-Time Employment and Part-Time Employment Figure 3-7 shows the percentage of jobs for each technology category that are full-time in the research, design, consulting, and marketing; installation, maintenance, and power generation operations; and manufacturing sectors. None of the three sectors employ a particularly high or particularly low percentage of full- or part-time workers. By technology, however, these differences are more visible and more drastic. Solar energy employs the highest percentage of full-time employees in each of the 3 sectors: 99 percent of employees in research, design, consulting, and marketing; 98 percent in installation, maintenance, and power generation operations; and 98 percent in manufacturing, are full-time. By contrast, employment in bioenergy and alternative fuels has a relatively low percentage of full-time employment in each sector, particularly research, design, consulting, and marketing (73 percent). The lowest percentage of full-time workers in the installation, maintenance, and power generation operations sector is in the advanced energy industry (91 percent), while the lowest percentage in the manufacturing sector is in the wind industry (81 percent). ICF International 16 February 2013

18 Figure 3-7. Full-Time Jobs as a Percentage of All Jobs, by Technology and Sector Biomass Solar Wind Other Renewables Energy Efficiency Bioenergy & Alt. Fuels Advanced Energy Other 60% 70% 80% 90% 100% Percent of jobs that are full time Research, Design, Consulting, and Marketing Installation, Maintenance, Power Generation Ops Manufacturing Alternative Energy Employment by Establishment Size Table 3-5 presents the number of establishments and employees in each establishment size category. 7 Approximately 725 establishments, or approximately 85 percent of all AE establishments, employed between 5 and 49 people at their location in The 725 establishments in this size category employed a total of 14,822 people, which accounted for 48 percent of all jobs in Ohio s AE economy. The average establishment in the 5-49 Employees category employed 20 people. Table 3-5. Establishments and Employees in Ohio's Alternative Energy Economy Employee Size Category No. of Establishments No. of Employees Employees , Employees 56 3, Employees 36 2, or More Employees 27 10,750 1 Includes full- and part-time employees serving primary, support, and occasional support functions. Although the largest establishment-size category 250 or more employees accounted for only 27 establishments (or 3 percent of all establishments), it employed 10,750 workers, which amounts to 34 percent of all workers in Ohio s AE economy. The average establishment in the 250 or more employees category employed approximately 400 people. The 2 middle categories by employee size 7 Size categories do not to align with U.S. Small Business Administration (SBA) size standards for businesses. ICF International 17 February 2013

19 ( employees and employees ) accounted for about 11 percent of all establishments and 18 percent of all jobs. Figure 3-8 shows the percentage of establishments that employ between 5 and 49 employees. Figure 3-9 shows the more even distribution of employees within each establishment size grouping, with the smallest establishment size group employing roughly half of all people, and the largest establishment size group employing approximately one-third of all people. Figure 3-8. Alternative Energy Establishments, by Establishment Size 4% 3% 7% 5-49 Employees Employees Employees 86% 250 or more Employees Figure 3-9. Employment at Alternative Energy Establishments, by Establishment Size 34% 48% 5-49 Employees Employees Employees 8% 10% 250 or more Employees Comparison of 2011 and 2012 Data In 2011, WSU conducted a survey of private employers representing selected sectors within the AE economy to identify and develop a knowledge base of green jobs in Ohio. The results of that survey highlighted characteristics of green sectors and industries, barriers to producing green-related products or services, training and other support needs, certifications available for green jobs, and skills required for certain job vacancies among Ohio s green workforce. The 2011 report delivered suggestions regarding future policies and investments that could lead to growth in the green economy and green jobs in Ohio. ICF International 18 February 2013

20 One goal of the current (2012) study is to compare employment at establishments who responded to both the 2011 and 2012 surveys in order to determine short-term employment shifts during the 12- month period. Because of the different terminology used (green job versus alternative energy job), the results are not directly comparable. Despite that caveat, the data below compares employment at individual establishments in each sector spanning the 2-year period to show the general trends and magnitudes of those trends. This data does not represent the entirety of Ohio s green (2011) or AE (2012) jobs but jobs at only those establishments that responded to both surveys. This micro-analysis provides general context for the likely overall trend in job change between 2011 and Table 3-6. Green Jobs (2011) Versus Alternative Energy Jobs (2012) Sector Primary Function Jobs Support Function Jobs Biosciences Construction/Installation/Maintenance 2,753 5,615 1,825 3,236 Manufacturing 1,682 7,491 1,229 5,339 Professional Services 2,426 3,505 1,847 1,907 Total 6,871 16,632 4,910 10,487 The number of primary and support AE jobs in the selected 2012 sample of establishments is higher than the reported green jobs in There were 6,871 green primary function jobs in 2011, compared to 16,632 AE jobs in 2012; this represents a change of 142 percent. There were 4,910 green support function jobs in 2011 compared to 10,487 AE jobs in 2012; a 114% change. Because of the difference in survey definition, these changes cannot be viewed as pure annual growth; however, the trend is still significant. When breaking the data out by sector, the trend holds true for all categories except for support related jobs in Biosciences. The most significant change occurred for the primary function jobs in Manufacturing. Within the selected establishments, there were 1,682 green jobs in 2011 compared to 7,491 AE jobs in 2012, representing a 345 percent change. The least significant change was in support function jobs in Professional Services. There were 1,847 green jobs in 2011 compared to 1,907 AE jobs in 2012; which represents a 3 percent change. Despite the differences in 2011 and 2012 study definitions, the pattern shows a clear increase in the overall AE employment in both primary and support jobs and each sector s total AE employment in both primary and support jobs (except for Biosciences support jobs) Projected Employment In addition to asking establishments about their current AE employment, the survey asked about expected AE hires in the next 6 to 12 months (mid-2013 through the end of 2013). Figure 3-10 presents the current jobs and expected hirings by sector and focuses on the expected job growth. Figure 3-11 shows expected growth as a percent of current employment. ICF International 19 February 2013

21 Figure Current Jobs and Expected Hirings, by Sector Construction/Installation/ Maintenance Manufacturing Professional Services Biosciences 0 6,000 12,000 18,000 Number of jobs Current Jobs Expected Hirings Figure Projected Short-Term Job Growth, by Sector Construction/Installation/ Maintenance 38% Manufacturing 9% Professional Services 62% Biosciences 5% 0% 20% 40% 60% 80% Percent growth (6-12 month outlook) The anticipated growth rates for the sectors vary significantly. According to the survey responses, construction, installation, and maintenance jobs are expected to experience significant growth in terms of both percentage (38 percent) and gross jobs (4,400) during the first half of 2013 to add to their already-strong workforce of 11,500. This is likely attributable to the strong pipeline of new solar energy projects slated for 2013, including the 50 MW Turning Point Solar project and the 15 MW Marion County Solar Farm. The professional services sector is expected to grow by 62 percent from approximately 6,400 people in 2012 to more than 10,000 people in the first half of Manufacturing and biosciences will grow at much slower rates in 2013 manufacturing by 9 percent and biosciences by only 5 percent. Whereas manufacturing employed more than 13,300 people in 2012, the biosciences sector employed only approximately 40 people. In gross terms, manufacturing still expects to hire a significant number of people, while hirings in biosciences will be almost nonexistent. There are two important takeaways from this analysis. First, employers expect that in the first half of 2013 growth will occur predominantly in the construction, installation, and maintenance and the professional services sectors. Second, in the first half of 2013, total employment in the construction, installation, and maintenance sector will surpass the manufacturing sector as the largest employment sector in the state s AE economy. ICF International 20 February 2013

22 Employment Growth by Technology According to survey findings, hirings in the first half of 2013 are expected to occur predominantly in the EE industry (3,900 expected new jobs) with hirings in other industries experiencing significantly smaller hiring levels (Figure 3-12). The solar industry the second largest in terms of expected growth in real jobs anticipates hiring approximately 540 people in Employers expect employment in all other AE industries to grow by a mere 330 jobs. Figure Current Jobs and Expected Hirings, by Technology Energy Efficiency Solar Other Advanced Energy Other Renewables Bioenergy & Alternative Fuels Wind Biomass 0 4,000 8,000 12,000 16,000 20,000 Number of jobs Curent Jobs Expected Hirings Figure 3-13 presents expected job growth by technology. As shown, employment growth will be centered in the EE and solar industries in which employers appear to be extremely optimistic about anticipated employment needs within the upcoming 6 to 12 months. Employers in the EE industry anticipate adding 3,900 employers to their workforce of 12,200 a projected employment growth of approximately 32 percent. Although not quite as promising, the solar industry s increase of 540 employees to their workforce of 5,600 people, which amounts to a growth rate of just below 10 percent. As of 2012, these two industries were the state s largest employers in AE professions; such increases therefore account for significant job growth in gross terms. The remaining industries are anticipated to grow at much smaller rates with year-over-year employment growth in bioenergy and alternative fuels, wind, and biomass not expected to exceed one percent in Taken together, the data presented in Figure 3-12 and Error! Reference source not found. indicate that the more people currently working in a specific technology, the more employment is expected to grow for that technology. This suggests that the current major employers in Ohio will become even more important to the state s economy. ICF International 21 February 2013

23 Figure Projected Short-Term Job Growth, by Technology Energy Efficiency 32% Solar 10% Other Advanced Energy 5% 7% Other Renewables Bioenergy & Alternative Fuels Wind Biomass 2% 1% 1% 1% 0% 10% 20% 30% 40% Percent growth (6-12 month outlook) Employment Growth by Region Expected hirings in AE by region vary significantly (Figure 3-14), and expected growth rates in terms of employment range from 57 percent (in the central region) to 8 percent (in the northwest region) (Figure 3-15). The high growth rate in the central region is attributable to the high percentage of employment in the professional services (48 percent) and construction, installation, and maintenance (43 percent) sectors (see Figure 3-5), which are projected to increase state-wide by 62 percent and 38 percent, respectively (see Figure 3-11). The low growth rate in the northwest region is a result of slow growth in the manufacturing sector, given that 67 percent of jobs in the region are in manufacturing (see Figure 3-5), and manufacturing is only projected to increase by 9 percent state-wide (see Figure 3-11). In particular, 82 percent of the growth in the manufacturing sector in the northwest region is from entities in the solar industry (see the supplemental figures in Appendix C). Therefore, the slow growth of the solar manufacturing industry significantly weighs on expected employment in the manufacturing sector and in the northwest region as a whole. The central (57 percent) and western (49 percent) regions are expected to grow at the greatest rates during the coming year, but the northeast region will increase by the largest number of jobs (nearly 3,000 jobs). Within 6 to 12 months, the number of anticipated jobs in the northeast region (approximately 10,000) will be similar to that in the northwest region. There is a stark difference in anticipated hirings between the 2 highest-employing regions whereas employers in the northeast region anticipate hiring approximately 3,000 people this year (41 percent growth), employers in the northwest region project to hire less than 1,000 (8 percent growth). The southeast has the lowest number of AE jobs in the state and is not expected to increase significantly; within 6 to 12 months, there will be half as many jobs in AE in the southeast region compared to the western region, which has the second fewest jobs ICF International 22 February 2013

24 Figure Current Jobs and Expected Hirings, by Region Northwest Northeast Southwest Central Western Southeast 0 2,000 4,000 6,000 8,000 10,000 12,000 Number of Jobs Current Jobs Expected Hirings Figure Projected Short-Term Job Growth, by Region Northwest 8% Northeast 41% Southwest 35% Central 57% Western 49% Southeast 17% 0% 10% 20% 30% 40% 50% 60% Percent Growth (6-12 month outlook) Employment Growth by Job Function Hiring projections submitted by employers imply generally optimistic outlooks for Figure 3-16 shows current jobs and expected hirings which, when combined, portray expected employment levels in the coming year. The greatest number of jobs in 2012 (approximately 17,000) and the greatest growth in terms of gross jobs in the coming year (nearly 6,000) will serve a primary function in AE; this represents an anticipated 34 percent growth rate in the coming year (Figure 3-17). Although support jobs in AE represented the smallest subset of jobs in 2012 (about 1,500 jobs), survey respondents expect them to grow at the fastest rate (140 percent) in 2013; total employment in support function roles by the end of 2013 will be approximately 3,500. There were approximately 4,000 employees that occasionally supported AE in 2012; these jobs are expected to grow by about 44 percent and approach 6,000 jobs by the end of For each job function category, there is an inverse relationship between the current size of employment and expected job growth (as a percentage). That is, the smaller-employing functions are expected to grow at faster rates than the larger-employing ICF International 23 February 2013

25 functions. For all three function categories, survey respondents expect to hire a significant number of new employees. Figure Current Jobs and Expected Hirings, by Job Function Primary Function Occasional Support Function Support Function 0 10,000 20,000 30,000 Number of Jobs Current Jobs Expected Hirings Figure Projected Short-Term Job Growth, by Job Function Primary Function 34% Occasional Support Function 44% Support Function 138% 3.3. Market and Policy Factors Affecting Business Growth Factors Cited as Supportive of Business Growth 0% 50% 100% 150% Percent growth (6-12 month outlook) Federal incentives and current market demand for products two aspects that are largely outside of the state s ability to influence have been the two most supportive factors to business growth according to survey respondents (Figure 3-18). Approximately 45 percent of all respondents believed that federal incentives supported business growth, suggesting that uncertainty associated with any extension or expiration of federal credits or programs for example, the Production Tax Credit (PTC) for wind energy could have wide-ranging impacts on businesses. Current market demand for products was the second most supportive factor, with 41 percent of respondents citing market demand for their products as benefitting their business. Factors that are within the state s influence that were commonly cited as supportive of business growth include current availability of workers with the necessary skills and knowledge (36 percent), state financing options including grant and loan programs (36 percent), and state AE tax incentives (33 percent). Local permits and zoning (12 percent) and other factors, such as public education building on ICF International 24 February 2013

26 benefits, utility efficiency programs, and state contracting decisions (3 percent), were cited considerably less than other factors. Figure Factors Cited as Supporting Business Growth Federal incentives Current market demand for products Current availability of workers State financing options State alternative energy tax incentives State permits and environmental regs. Federal regulations Local permits and zoning Other 3% 12% 18% 18% 45% 41% 36% 36% 33% 0% 10% 20% 30% 40% 50% Percent of all establishments citing factor Factors Cited as Inhibiting Business Growth Figure 3-19 shows the percentage of respondents who cited a specific factor as inhibiting business growth. Again, the most commonly cited factor federal regulations (44 percent) is largely out of the state s ability to influence. Other commonly cited factors that inhibit growth include: state permits and environmental regulations (37 percent), current availability of workers with the necessary skills and knowledge (32 percent), and local permits and zoning (28 percent). Federal incentives (11 percent), state financing options (9 percent), state AE tax incentives (7 percent), and other factors (i.e., public education building on benefits, utility efficiency programs, and state contracting decisions) (5 percent) were cited considerably less than all other factors. One-third to one-quarter of all businesses believed each factor did not affect their business (excluding respondents that were unsure of the effect on their business). It is a common sentiment nationwide that the availability or lack of availability of workers with the necessary skills and knowledge has a significant positive or negative effect on business growth and job expansion. In Ohio, both cases appear to be true this was the third most commonly cited factor both for both supporting business growth (36 percent) (Figure 3-18) and for impeding business growth (32 percent) (Figure 3-19). Further analysis of the respondents who cited availability of workers as supporting or impeding business growth may allow for a better understanding of which sectors and industries are currently benefiting or which may potentially benefit from investments in worker training programs. A breakdown of the responses for each factor is included in Appendix C. ICF International 25 February 2013

27 Figure Factors Cited as Impeding Business Growth Federal regulations State permits and environmental regs. Current availability of workers Local permits and zoning Current market demand for products Federal incentives State financing options State alternative energy tax incentives Other 11% 9% 7% 5% 21% 28% 32% 37% 44% Differences in Ratings by Sector 0% 10% 20% 30% 40% 50% Percent of all establishments citing factor Figure 3-20 shows the percentage of respondents for each value chain sector that responded favorably toward the various factors listed. About half of all respondents in each sector believed that current market demand for products supported their business; for biosciences, approximately 65 percent believed this to be the case. The professional services sector and the construction, installation, and maintenance sector benefitted most from federal incentives, state financing options, and state AE tax incentives. Figure Factors Cited as Supporting Business Growth, by Sector Current market demand for products Current availability of workers Federal regulations Federal incentives State permits and enviro. regulations State financing options State alternative energy tax incentives Local permits and zoning Other 0% 20% 40% 60% 80% Professional Services Construction/Installation/Maintenance Respondents in each sector citing factor Manufacturing Biosciences Figure 3-21 shows the percentage of respondents in each sector that believed the listed factor impeded business growth. In general, a significantly higher percentage of respondents in the biosciences sector ICF International 26 February 2013

28 believed several factors impeded their growth, including: state permits and environmental regulations (76 percent), current availability of workers (71 percent), and federal regulations (61 percent). These results should be interpreted with caution; however, as the sample size of firms in the biosciences sector is only approximately 12 establishments. The small biosciences sector still reported strong market demand for its products approximately 18 percent of employers cited strong market demand despite listing several impeding factors. Figure Factors Cited as Impeding Business Growth, by Sector Current market demand for products Current availability of workers Federal regulations Federal incentives State permits and enviro. regulations State financing options State alternative energy tax incentives Local permits and zoning Other As seen in Figure 3-21, approximately one-quarter of respondents in the professional services sector believed each factor impeded their businesses except for state financing options (7 percent), federal incentives (6 percent), and state AE tax incentives (3 percent). Approximately 36 percent of respondents in the construction, installation, and maintenance sector believed current availability of workers with the necessary skills and knowledge impeded growth of their business. This result suggests that this sector will see increasing demand for a labor force with specialty skills. The biosciences (61 percent), manufacturing (56 percent), and construction, installation, and maintenance (47 percent) sectors experience significant negative impact from federal regulations. Existing Ohio Policies and Programs 0% 20% 40% 60% 80% Respondents in each sector citing factor Professional Services Manufacturing Construction/Installation/Maintenance Biosciences In general, fewer survey respondents cited specific state policies that supported or impeded business growth than they did when asked what more general factors that supported or impeded business growth (Figure 3-22). Nearly a third of respondents believed Ohio s building energy codes (29 percent) and energy standards for public buildings (29 percent) supported business growth. These two policies likely affect the energy efficiency industry only, and therefore may be a significant driver for this industry which accounts for half of all jobs in the AE economy. Ohio s net metering regulations (9 percent), RE permitting standards (9 percent), and other policies such as Ohio MBE/EDGE and Ohio DOT Disadvantaged Business Enterprises (1 percent) were least-cited by respondents as supporting business growth. ICF International 27 February 2013

29 Figure Policies Cited as Supporting Business Growth Ohio building energy codes Ohio energy standards for public buildings Ohio AEPS ODSA Energy Loan Fund ODSA alternative energy programs ODSA business assistance programs Ohio net metering regulations Ohio renewable energy permitting stds Other 1% 15% 12% 12% 10% 9% 9% 29% 29% 0% 10% 20% 30% 40% Establishments citing policy as supporting growth Respondents generally did not believe that Ohio s policies impeded their business growth, and no specific policy was cited significantly more than others as being inhibitive of growth no option was selected by more than seven percent of respondents (Figure 3-23). Ohio s building energy codes are the most polarizing for employers, as they were cited as both the most supportive (29 percent) and inhibitive (7 percent) of business growth. Still, building energy codes appear to be overwhelmingly more supportive for businesses than they are inhibitive. In fact, based on responses, each policy has supported the growth of more businesses than it has impeded. Between 34 percent and 59 percent of all respondents to each policy were unsure of the effect of the policy on their specific business, and between 25 percent and 33 percent of respondents believed each policy had no effect on their business (excluding respondents that were unsure of the effect on their business). A breakdown of responses for each potential policy is included in Appendix C. Figure Policies Cited as Impeding Business Growth Ohio building energy codes 7% Ohio renewable energy permitting stds ODSA business assistance programs ODSA alternative energy programs ODSA Energy Loan Fund Ohio AEPS Ohio energy standards for public buildings Ohio net metering regulations 6% 5% 5% 5% 4% 4% 4% Other 2% 0% 2% 4% 6% 8% 10% Establishments citing policy as impeding growth ICF International 28 February 2013

30 Ohio energy standards for public buildings (47 percent), Ohio building energy codes (43 percent), and the Ohio AEPS (25 percent) disproportionately benefited the professional services sector over each other sector (Figure 3-24). This suggests that the professional services sector may be heavily engaged in EE. The construction, installation, and maintenance sector also benefited from each of these policies, although each significantly less than the professional services sector. Still, it appears that the construction, installation, and maintenance sector also benefits greatly from RE and EE projects. Aside from the three policies mentioned, each policy supported fewer than 20 percent of businesses in each sector. Figure Policies Cited as Supporting Business Growth, by Sector Ohio AEPS Ohio net metering standards Ohio renewable energy permitting standards Ohio energy standards for public buildings Ohio building energy codes ODSA business assistance programs ODSA alternative energy programs ODSA Energy Loan Fund Other 0% 10% 20% 30% 40% 50% Respondents in each sector citing policy Professional Services Manufacturing Construction/Installation/Maintenance Biosciences The percent of business that believed a specific policy impeded their growth was, in nearly all cases, less than 10 percent (Figure 3-24). As shown in Figure 3-25, Ohio s net metering standards, Ohio RE permitting standards, and Ohio energy standards for public buildings disproportionately affect the biosciences sector, of which 15 percent of respondents believed these policies supported their business. These results should be read with caution; however, because of the very small respondent population of bioscience establishments in the state. Results also show that 14 percent of manufacturing companies reported that other policies, such as a lack of a federal carbon tax or general lack of state support, impeded the growth of their business. All other policies were viewed negatively by less than eight percent of all respondents. ICF International 29 February 2013

31 Figure Policies Cited as Impeding Business Growth, by Sector Ohio AEPS Ohio net metering standards Ohio renewable energy permitting standards Ohio energy standards for public buildings Ohio building energy codes ODSA business assistance programs ODSA alternative energy programs ODSA Energy Loan Fund Other 0% 5% 10% 15% 20% Respondents in each sector citing policy Professional Services Manufacturing Construction/Installation/Maintenance Biosciences Potential Future Ohio Policies and Programs Figure 3-26 through Figure 3-30 present survey respondents views of whether a change to a particular Ohio policy or program (or the creation of an entirely new policy/program) would benefit or inhibit their business growth. Approximately 1 in 4 respondents believed that an expansion of the AEPS (28 percent), assistance with project feasibility analysis (27 percent), assistance with market analysis (24 percent), and subprime financing for alternative fuel vehicles (23 percent) would benefit their business (Figure 3-26). Fewer than 20 percent of respondents believed each of the other potential polices positively would affect their business. Figure Potential Programs and Policies Cited as Having a Presumed Positive Effect on Business Growth Expansion of the Ohio AEPS Project feasibility analysis 28% 27% Market analysis assistance Subprime financing for alt. fuel vehicles 24% 23% Improved net metering regulations Alternative or low-carbon fuels standard 14% 17% Other 5% 0% 10% 20% 30% 40% Establishments citing policy ICF International 30 February 2013

32 As shown in Figure 3-27, approximately 44 percent and 42 percent of respondents, respectively, believed that providing subprime financing for alternative fuel vehicles and providing or establishing a low-carbon fuels standard would not significantly affect their business (note that this is different than inhibiting business growth). Least-cited by respondents as having no effect on businesses were an expansion of the state s AEPS (23 percent) and other policies (respondents did not specify which other policies do not affect their business) 3 percent). Figure Potential Programs and Policies Cited as Having No Presumed Effect on Business Growth Subprime financing for alt. fuel vehicles Alternative or low-carbon fuels standard 44% 42% Improved net metering regulations Project feasibility analysis Market analysis assistance 28% 28% 27% Expansion of the Ohio AEPS 23% Other 3% 0% 10% 20% 30% 40% 50% Establishments citing policy For the majority of the policies presented, approximately half of all respondents were unsure of the effect they would have on their business. Respondents were most sure of the effect of an alternative or low-carbon fuels standard (only 32 percent of respondents were unsure of its effect), and more specifically, that it would not affect their business (42 percent). As shown in Figure 3-28, the professional services sector responded favorably to the following potential policies: project feasibility analysis (42 percent), expansion of the Ohio AEPS (32 percent), market analysis assistance (30 percent), and improved net metering regulations (29 percent). The manufacturing and construction, installation, and maintenance sectors responded much more favorably toward expanding the Ohio AEPS (28 percent) than they did to improving net metering regulations (13 percent). This suggests that either these companies are disproportionately invested in large-scale RE projects as opposed to smaller, distributed-generation projects or that the net metering regulations are already well-received. As noted, however, the professional services sector responded similarly for an expansion of the Ohio AEPS as it did for improved net metering regulations. Responses from the manufacturing sector and the construction, installation, and maintenance sector were generally within a few percentage points of each other for each policy suggested. However, a significantly greater percentage of manufacturers believed market analysis assistance would benefit their business (29 percent) than did construction, installation, and maintenance businesses (12 percent). For the most part, between 10 and 30 percent of respondents in each category would prefer to see additional or expanded policies. ICF International 31 February 2013

33 Figure Potential Programs and Policies Cited as Having a Positive Effect on Business Growth, by Sector Subprime financing for alt. fuel Improved net metering regulations Expansion of Ohio AEPS Passage of an Ohio alt. fuels standard Market analysis assistance Project feasibility analysis Other Professional Services Construction/Installation/Maintenance 0% 10% 20% 30% 40% 50% 60% 70% Respondents in each sector siting factor Manufacturing Biosciences Figure 3-29 illustrates that 70 percent of respondents in the biosciences sector believed that an Ohio alternative fuels standard would not affect their business. Again, the sample size in the biosciences sector is small (i.e., 12 establishments) and therefore results should be interpreted with caution. In general, roughly half of respondents in each of the three other sectors believed an alternative fuels policy or subprime financing program for alternative fuel vehicles would have no effect on the growth of their business. Only 23 percent of respondents in the professional services sector, 27 percent in manufacturing, and 22 percent in construction, installation, and maintenance believed an expansion of the Ohio AEPS would not affect their business. Figure Potential Programs and Policies Cited as Having No Presumed Effect on Business Growth, by Sector Subprime financing for alt. fuel vehicles Improved net metering regulations Expansion of Ohio AEPS Passage of an Ohio alt. fuels standard Market analysis assistance Project feasibility analysis Other 0% 20% 40% 60% 80% Respondents in each sector siting factor Professional Services Manufacturing Construction/Installation/Maintenance Biosciences ICF International 32 February 2013

34 As Figure 3-30 illustrates, a significant percentage (45 percent) of large establishments favor both improved net metering regulations and an expansion of the Ohio AEPS. Particularly for net metering regulations, this is a drastic difference from small establishments of which only 16 percent cited a preference for improved net metering regulations. Approximately 27 percent of small establishments would prefer an expansion of Ohio s AEPS. These results suggest that establishments tied to the specific set of alternative energies included in the Ohio AEPS (including distributed generation) are generally large. This result should be interpreted with caution, however, as there were only a handful of large establishments (roughly 25) that responded to this question and the results are therefore based on a small sample size. Figure Establishments Citing Potential Programs and Policies as Having a Presumed Positive Effect on Business Growth, by Establishment Size Other Project feasibility analysis Market analysis assistance Alt. or low-carbon fuels standard Expansion of the Ohio AEPS Improved net metering regulations Subprime finance for alt. fuel vehicles 0% 10% 20% 30% 40% 50% Small (5-49 Employees) Medium ( Employees) Large (250 or more Employees) Small businesses were most interested in other policies such as educating the public on benefits of the technology, a federal carbon tax, and other grants and tax incentives (31 percent), assistance with project feasibility analysis (28 percent), and an expansion of the Ohio AEPS (27 percent). Medium-sized businesses favored an expansion of Ohio s AEPS (39 percent), assistance with project feasibility analysis (32 percent), and subprime financing for alternative fuel vehicles and the associated infrastructure (25 percent). In general, small, medium, and large establishments were all supportive of an expansion of the Ohio AEPS, which was one of the three most commonly cited policies for each establishment size. Small, medium, and large establishments were least interested in an alternative or low-carbon fuels standard. 4. Conclusion 4.1. Current Alternative Energy Employment In 2012, Ohio s alternative energy (AE) economy accounted for more than 31,000 full-time and part-time jobs and 845 establishments. The businesses and employees in this economy supported a variety of sectors, technologies, industries, and functions throughout the value chain. ICF International 33 February 2013

35 The majority of AE employment in Ohio is concentrated in the manufacturing and the construction, installation, and maintenance sectors. These key sectors or value chain functions represent nearly 75 percent of all AE employment in Ohio. Manufacturing accounts for more than 43 percent of overall AE employment, and a particularly high proportion of employment in the advanced energy (69 percent), solar (58 percent), bioenergy and alternative fuels (52 percent) and other renewables (47 percent) industries workforces. The second largest concentration is in the construction, installation, and maintenance sector, which accounted for roughly 30 percent of AE jobs in the state. The research, design, consulting, and marketing services sector generally employs a lower percentage of each technology s value chain than the other two sectors. In terms of energy technologies, roughly half of all jobs in Ohio s alternative energy economy were located in the energy efficiency industry, with employment in the solar industry a distant second. Nearly 12,200 people were employed in energy efficiency, and these jobs were evenly distributed across manufacturing (34 percent); installation, maintenance, and power generation operations (36 percent); and research, design, consulting, and marketing (30 percent). Approximately 7,100 workers, or 29 percent of those employed in the AE economy, were employed in renewable energies (including solar, wind, biomass, and other renewables). Of these renewable energy technologies, solar was by far the most significant, accounting for 79 percent of renewable energy jobs, and 23 percent of all jobs in the AE economy. Regionally, Ohio s alternative energy jobs are concentrated in the northern portion of the state, with the northwest and northeast regions together accounting for more than half of all jobs in alternative energy. This trend closely follows the population concentration of Ohio; the two northern regions have higher populations than other regions in the state and have more overall jobs. In terms of establishment size, more than 85 percent of establishments in the alternative energy economy were classified as small (5-49 employees). That said, only half of all AE employees worked at these small establishments, while a third worked at the 27 largest-size establishments in the state (classified as 250 or more employees) Projected Employment Growth According to survey responses, employers in all AE sectors and technologies anticipate job growth in the first half of 2013, with the majority taking place in the construction, installation, and maintenance sector and the professional services sector. Construction, installation, and maintenance jobs are expected to experience significant growth in terms of both percentage (38 percent) and gross jobs (4,400) during the first half of 2013 to add to their already-strong workforce of 11,500. The professional services sector is expected to grow by 62 percent from roughly 6,400 people in 2012 to more than 10,000 people in the first half of The manufacturing sector and biosciences sector will both grow at much slower rates in 2013; manufacturing by 9 percent and biosciences by only 5 percent. As a result of these trends, by the end of 2013, total employment in the construction, installation, and maintenance sector should surpass the manufacturing sector as the largest employment sector in the state s AE economy. In terms of energy technologies, employment growth will be centered in the energy efficiency and solar industries, where employers appear to be extremely optimistic about anticipated employment needs within the upcoming 6 to 12 months. The vast majority of Ohio s AE job growth is expected to occur in the energy efficiency industry, with employers anticipating adding 3,900 new employees to their workforce of 12,200; a projected employment growth of approximately 32 percent. The solar industry anticipates adding 540 employees to their workforce of 5,600 people, which amounts to a growth rate of just below 10 percent. The remaining industries are anticipated to grow at much lower rates with ICF International 34 February 2013

36 year-over-year employment growth in bioenergy and alternative fuels, wind, and biomass not expected to exceed one percent in Market and Policy Factors Affecting Business Growth Survey respondents were asked to rate a wide range of market factors, policies, and programs as either supporting or inhibiting the growth of their businesses. The two factors that were most highly ranked as being supportive to business growth federal incentives and current market demand for products fall largely outside of the state s control. Approximately 45 percent of respondents believed that federal incentives supported business growth, suggesting that uncertainty associated with any extension or expiration of federal credits or programs (e.g. the Production Tax Credit), could have wide-ranging impacts on businesses. Current market demand for products was rated the second most supportive factor, with 41 percent of respondents rating current demand as benefitting their business. Three factors that are within the state s influence were also widely cited as supportive of business growth. Thirty-six percent of respondents felt that the current availability of workers with the necessary skills/knowledge was supportive of business growth, 36 percent cited state financing options (including grant and loan programs) as supportive, and 33 percent cited state alternative energy tax incentives. The factors cited most frequently as inhibiting business growth include federal regulations (44 percent), state permits and environmental regulations (37 percent), current availability of workers with the necessary skills and knowledge (32 percent), and local permits and zoning (28 percent). Given that the availability of skilled workers was cited frequently as both a supportive and inhibiting factor, further analysis of the respondents who cited this factor as either supporting or inhibiting business growth may allow for a better understanding of which industries would most benefit from investments in worker training programs. Existing Ohio Programs and Policies When asked specifically about the State of Ohio s policies and programs, respondents generally believed that state s current policies supported their businesses more than they impeded them. Even the most highly cited inhibitive factor Ohio s building energy codes was cited as inhibiting business growth by a mere 7 percent of survey respondents. Given this, Ohio s programs and policies for AE appear to be on the right track. Nearly a third of respondents, 29 percent for both factors, believed that Ohio s building energy codes and energy standards for public buildings supported business growth. These two policies likely affect the energy efficiency industry exclusively, and therefore may be a significant driver for this significant industry which accounts for half of all jobs in the AE economy. The Ohio AEPS, ODSA Energy Loan Fund, and other ODSA programs were all cited by between percent of respondents as supportive of business growth, whereas Ohio s net metering regulations and renewable energy permitting standards were cited by only 9 percent of respondents. Respondents generally did not feel that Ohio s policies inhibited their business growth. No particular policy was cited significantly more than others as being inhibitive of growth, and no option was selected by more than 7 percent of respondents. Potential Future Ohio Programs and Policies When asked about their views regarding potential future policy changes or new policies and programs in the State of Ohio, roughly one-quarter of respondents felt that the following potential future programs and policies would support growth of their businesses: ICF International 35 February 2013

37 expansion of the Ohio AEPS (28 percent); assistance with project feasibility analysis (27 percent); assistance with market analysis (24 percent); and subprime financing for alternative fuel vehicles (23 percent). At the same time, a large number of respondents felt that many of the potential future programs and policies would have no presumed effect on the growth of their business (note that this is different than inhibiting business growth). Approximately 44 percent of respondents believed that providing subprime financing for alternative fuel vehicles would not significantly affect their business, and 42 percent felt that establishing a low-carbon fuels standard would have no effect. This is likely because of the limited number of survey respondents in the alternative fuels/vehicles industry. The potential policy change least-cited by respondents as having no effect on business growth was an expansion of the state s AEPS (23 percent), which is consistent with the fact that the AEPS was seen by many respondents as being highly supportive of alternative energy business growth. ICF International 36 February 2013

38 Appendix A. Alternative Energy Survey ICF International A-1 February 2013

39 ICF International A-2 February 2013

40 ICF International A-3 February 2013

41 ICF International A-4 February 2013

42 Appendix B. Detailed Survey Methodology B.1. Sampling Plan The population of firms was selected from the QCEW database an administrative database maintained by the Ohio Department of Job and Family Services. The QCEW program is a census of monthly employment and quarterly wage information organized by six-digit NAICS industry at the national, state, and county levels. The data used for this study were derived from the quarterly tax reports submitted by Ohio employers subject to State Unemployment Insurance (UI) laws and from Federal agencies subject to the Unemployment Compensation for Federal Employees (UCFE) program. A stratified random sample representing Ohio s private employers was used for this analysis of business establishments. Three stratification criteria were applied to organize the population of establishments in order to select a representative sample targeted sector, the establishment s employment size, and the geographic location within the six regions of the state. Such stratification helps researchers adjust for the variation that is common across sectors, employers, and regions. Establishments in the QCEW database either designate their own sector code or are assigned a code by professional state government staff. A total of 285 six-digit NAICS codes were included for this analysis. Generally speaking, selected six-digit NAICS codes were organized into four sectors. 1. Bio-production (NAICS 11 production of alternative fuels made from organic materials) 2. Manufacturing (NAICS 31, 32, and 33) 3. Construction and Repair Services (NAICS 23, NAICS Landscaping Services, and NAICS 81 Repair Services) 4. Research, Design, and Consulting (NAICS 54) The aim of this study was to focus on companies that provide AE goods and services, and the value chain of companies that supports the AE goods and services economy. This study excludes NAICS codes that capture recycling and reuse (waste management) and natural resource conservation (such as parks, zoos, conservation administrative programs, etc.), which is relatively unique compared to other studies of employers that provide products and services that benefit the environment. A full listing of the NAICS codes used in this study is presented in Appendix D. The population of business establishments in the selected NAICS codes was organized into 4 employment class size groups 5 49, 50 99, , and The reader should note that the very small firms, those employing 1 to 4 employees, were excluded from the study because they represent only 6 percent of employment in the state and yet historically have the largest negative impact on a study s response rate. In Measuring Green Industry Employment a report put out by the Bureau of Labor Statistics in preparation of the 2010 GGS Survey, the authors found a lower response rate in every panel tested for the employers with 1 19 employees compared to those with employees. Considering that information while striving to be as inclusive as possible, and based on Wright State University s previous experiences in surveying Ohio s employers, we excluded the employers with 1 4 employees to aid response rate. ICF International B-1 February 2013

43 The regions and the core cities are: Central (Columbus) Northeast (Cleveland, Akron, Youngstown) Northwest (Toledo) Southeast (Nelsonville) Southwest (Cincinnati) Western (Dayton) A representative combination of sector, employment class size, and geographic region was pulled according to an allocation method based on the stratum proportion of the total sample size. The end of this discussion includes specific formulas and descriptions of the allocation method as applied in this case. The total sample size was set at 7,703; however, nearly 786 records had to be discarded because of apparent business closure (return-to-sender mailed items, confirmed business closure, and confirmed business relocation out of the specified geographic strata). The sample size of 6,917 reflects the geographic and sector detail required for the reliable estimation of results. Minimum cell size 8 was fixed at six firms, because a response rate of 33% was assumed, resulting in at least two firms responding in each cell which is sufficient for the calculation of a standard deviation for future use. B.2. Data Collection A pretest of the survey instrument was conducted from October 10, 2012 to October 25, 2012 before the survey was broadly distributed. The survey was widely distributed beginning October 25, 2012 with a survey closure date of December 29, Recipients of the survey included those industries likely involved in the direct production of such goods and services, as well as the supporting value chain. The survey was implemented as a multi-stage survey process that began by mailing a cover letter co-signed by the Ohio Development Services Agency and WSU, inviting survey responses by mail, , fax, or online survey. Each company was provided a unique employer identifier (ID) to ensure only one response per employer. The cover letter was prepared in a way that encouraged accurate responses to the question of whether the company provides goods or services that benefit the environment. An extended definition stated that these companies may reduce energy consumption, improve EE, help generate energy from natural resources like wind or solar power, or provide consulting services relevant to any of these topics. To expedite a response, the letter explained the project and provided a box for the company representative to indicate whether the company provides or does not provide goods or services that benefit the environment, in accordance with the longer definition. The mailing also included a business reply envelope. Companies that replied by phone, , and letters informing WSU that they do provide goods or services that benefit the environment designated how they would like to complete the survey, which instigated either a mailing of the survey, a fax, an , or web link. 8 A cell is the place in a table where the strata intersect, such as a table for an Ohio region presenting industries by the four employment size classes. In the sample, if a manufacturing industry in an Ohio region had 6 firms with 250+ employees, then all 6 firms were included in the sample. ICF International B-2 February 2013

44 The online survey was custom programmed to provide professional appeal and to manage skip patterns. The online survey also provided technical support contact information. Reminder letters were distributed sequentially to survey participants throughout the survey field period. Each employer was issued a unique employer ID number which was used on all mailing materials. The identification number was also the password for respondents to use for the online survey. This unique employer ID allowed WSU to keep track of responses to ensure that (1) respondents did not answer the survey more than once and (2) WSU did not contact employers that had already responded. However, there were a small number of cases where an employer stated that they had been asked to participate more than one time. In those cases, the mishap was because of the close timing of the participant outreach and their completion of the survey. To support survey respondents, 24/7 support was available by providing a toll free number and address. A list of Frequently Asked Questions was developed. The most common questions posed by employers were: How will the survey results be used to inform State policy? What is the political nature of the survey? How can I obtain more information about the State s energy programs and initiatives? A key to high response rates in mailed surveys is to ensure the survey invitation gets into the right hands. Using relational database techniques, contact information was able to be obtained for half of the QCEW records via InfoUSA s Powerfinder database and from the Dun and Bradstreet Hoover s business listings. One week after the estimated receipt of the letters, WSU s Computer Aided Telephone Interviewing Laboratory began telephone follow-up calls to all non-respondents. Calls were typically made to an identified contact at the business establishment. There were cases, however, where that information could not be obtained from secondary databases. In those cases, interviewers collected information for the proper contact and the address. Survey participants were notified that their answers would be kept confidential. All data were stored on WSU servers with access restricted to team members approved to work with the data. B.3. Sample Weights The fundamental goal of the study was to determine the number of companies and employees directly and indirectly supporting the AE economy in Ohio. Given cost constraints, it was necessary to sample firms rather than conduct a census. Therefore, it is necessary to create a multiplier, or weight, by which the number of companies and employees reported by each sample firm can be multiplied to discover the total population of industries and employees. Evidence shows that the number of employees varies by size of firm as well as industry of firm. Therefore, individual weights were developed for each of the 96 strata in the sample. Applying these weights allows the sample to reflect the population of companies in the selected industries for this study. B.3.1. Sample Allocation Method The method is composed of two items if targeting by total sample size. 1. X h = population of stratum h ICF International B-3 February 2013

45 2. n = total sample size (sum of all strata sample sizes) The first step was to calculate the sample size for each stratum h using the formula: The next step was to adjust each value of according to these constraints: 6 n h X h, for X h 6, o Assuming a response rate of 33%, a minimum allocation size of 6 would give a sample containing at least 2 observations, enough to calculate a standard deviation for future use. o The larger of the two allocations (6, ) would be selected as the sample size for stratum h. n h = X h, for X h 6 o In this case the population size is very small; the entire population would be sent the survey forms. B.4. Response Rate Protocol The study achieved an overall response rate of 53%. The total number of completed surveys returned was 3,669 with the vast majority (86%) of those companies reporting that they do not provide a good or service that benefits the environment. This study pursued a response rate of 33% at the sector-employment-geography cell-level to enable researchers to calculate a standard deviation for future use. A cell is the place in a table where the strata intersect, such as a table for an Ohio region presenting sectors by the four employment size classes. For example, if the number of employers with more than 250 employees in the construction and repair services sector in southwest Ohio had a minimum sample size of six, then two responses are needed to calculate a standard deviation. Response rates by geography and sector are as follows: Employer Survey Response Rates by Region and Sector Geographic Region (major urban areas) Response Rate Central (Columbus) 51.5% Northeast (Cleveland, Akron, Youngstown) 47.4% Northwest (Toledo) 56.0% Southeast (Nelsonville) 51.7% Southwest (Cincinnati) 51.0% Western (Dayton) 58.0% Targeted Sector Response Rate Bioproduction 55.2% Manufacturing 52.7% Construction and Repair Services 49.8% ICF International B-4 February 2013

46 Geographic Region (major urban areas) Response Rate Research, Design, and Consulting Services 52.4% The response rate protocol was two-pronged, implemented via (1) business engagement efforts and (2) real time and ongoing support to businesses. Business engagement efforts included: Obtaining contact information for the survey recipient so that letters and phone calls could be personalized. Distributing cover letters with a clear definition of the industry and value chain being researched, thereby, filtering quickly those companies that met or did not meet the initial definition for inclusion in the study. Immediately following up with companies that did self-report their inclusion in the study, providing the survey in the mode required by the company. Conducting a telephone call within 1 week of the start of data collection to determine receipt of survey materials and to answer any questions. Sending three reminder letters, spaced throughout the study period, to encourage response. Providing multi-modal options for completing the survey forms and staggering the administration modes. Real-time and ongoing support to businesses included: Maintaining a 24/7 technical assistance telephone and support for employers. Providing guaranteed support by phone or within 24 hours. Contacting employers to follow- up regarding missing, incomplete or out-of-range data by or telephone. Developing a Frequently Asked Questions document to provide efficient and consistent responses to employers. B.5. Analysis of Other Respondants Overall, 77 unweighted cases reported themselves in the other category for questions 5, 6, and 7 on the Alternative Energy Employer Survey. The following summary provides information about those 77 companies in the aggregate as well as within the four sectors analyzed for the project. Overall, these 77 companies employ over 1,700 people (unweighted). Seven of the 77 companies employ 50 or more people; the other 70 employ 5-49 people. Nearly half of the 1,700 employees (44%) are considered to be primary employees meaning employees who have a primary function in providing products and/or services that benefit the environment. Results by Sector A study of all companies self-reporting as other shows two common themes. One is that the company is so small that many employees work across many or all the categories that were provided. For example, a company wrote in the other box, All people work in all areas - analyzing and forecasting the energy market. The second theme is that companies are producing products that serve multiple ICF International B-5 February 2013

47 categories offered on the survey. For example, one manufacturer wrote, [We are] Manufacturers of battery chargers for over 50 years. From chargers for: electric powered wheelchairs to electric powered buses; starting/lighting batteries in cars to trucks; standby power in telemetry units to pipelines. Battery chargers for lead acid batteries of all types, used on any type of equipment, anywhere. Installation, Maintenance, and Power Generation Operations Sector In terms of the four sectors sought for participation in this survey, the largest number of other respondents has industrial classification codes that define them in the Installation, Maintenance, and Power Generation Operations sector (33 of the 77 companies). Within the other category, this sector accounts for 516 total employees and 257 primary employees. The list below presents the product or service description for the 33 firms. Construction Management, HVAC fabrication & installation Construction of Buildings Drywall and Insulation Contractors Energy audits Energy efficient homes and construction projects Glass & glazing - furnished & installed, built in the shop Glass and glazing work Heating and air conditioning contractors Restoration of historic windows increasing their energy efficiency Home weatherization Horticulturalists, landscape architects, fabricators, and technicians. Landscape installation, drip irrigation installation Installation of broadband Internet so customers can work from home or take classes on line installation of green products and/or care of green products insulating of HVAC and plumbing Insulation Installers (4 companies reported this) Landscape Architectural Services Landscape consulting, design, installation including landscape lighting and rain gardens Landscape Contractors Landscape design & installation Landscape installation and maintenance Landscaper designers, installers Landscaping and Composting Light fixtures, lamps Oil mist collection, dust collection to increase production efficiencies Plumbing & HVAC Contractors Plumbing & Pipe Fittings Retro-Commissioning Room Integrity Sealing Tree preservation Window and door (prefabricated) installation ICF International B-6 February 2013

48 Research, Design, Consulting, and Marketing The Research, Design, Consulting, and Marketing companies that reported themselves in the other category represent 806 total employees and 347 primary employees. The list below presents the product or service description for the 27 firms. In less than five cases, insufficient detail is provided by the company to understand its role in Alternative Energy. Analyzing and forecasting the energy market Architect (2 companies reported this) Engineering, consulting and construction firm--infrastructure development for energy and other markets Casting simulation Environmental assessment, site remediation, natural resource management, among others Consulting to support renewables industry and LEED design process CQA of landfills, landfill gas systems Developing and supporting mobile technology Custom HVAC equipment--designers, engineers, & manufacturers determine power requirements, noise, capacity and extreme environments Energy and environmental design Engineering and consulting - mass spectrometer, fuel cell test instrumentation Engineering services - climate change and sustainability, compliance assistance Engineering, surveying support Environmental design Green roofs and rain gardens LEED professionals work on these projects as needed RDC in power distribution Professional land planning and design consulting Sanitary sewer and potable water Sustainability Sustainable building design Environmental consulting areas of expertise include energy management and environmental management systems Architectural, engineering, and construction services. The environmental management, consulting, and technical services group focuses on resource management and infrastructure development Truckload Carriers Waste heat recovery returned as heat or electricity RDC in waste water Manufacturing Thirteen manufacturing firms reported their company in the other category. Many of these companies produce products that can serve multiple industries. The 13 companies represent 398 total employees and 152 primary employees. Cost-effective neutron source used in a variety of medical, industrial, and security applications Ethanol Fuel cell components ICF International B-7 February 2013

49 Install and maintain window shades Manufacture and install insulation Manufacture lawn furniture from recycled plastic (milk jugs) Manufacturers of battery chargers used across many products Instruments manufacturing for measuring, displaying, and controlling industrial process variables Parts to monitor radiation Reclamation of ozone depleting substances with plasma arc destruction Recycled concrete block Water purification Wireless data collection systems Bioenergy and Alternative Fuels (defined on the survey as the production of alternative fuels made from organic materials, propane, natural gas, or hydrogen; production of corn, switch grass, and other crops to be used specifically in the manufacture of ethanol or other biofuels) Four companies reported themselves in the other category, representing ten (10) employees, three of which are reported as primary employees. These four companies express their product or service as follows. Bio-cleaners, solvents, and cleaners Oil & Gas Well Drilling Use farming practices that save the environment We compost food waste, yard waste, and manure B.6. Study Limitations A total of 96 different sector-employment-geography cell combinations were possible (because there were four sectors, four employment size classes, and six regional geographies in the study design). Some cells had a poorer than expected response rate and should be reviewed with caution. The list includes: larger employers from the manufacturing sector in the southwest, central, and northwest Regions. Because the vast majority of private companies do not provide a product or service that benefits the environment, the results presented in this report are based on the roughly 500 companies that do provide such products and services. Because of this, report results should be read with caution. ICF International B-8 February 2013

50 blank page ICF International B-9 February 2013

51 Appendix C. Supplemental Figures to Section 3 Supplemental Figures to Table 3-3 and Figure 3-2: Current Employment, by Technology and Sector ICF International C-1 February 2013

52 Supplemental Figures to Figure 3-5: Alternative Energy Employment, by Region and Sector NE NW W Central SW SE A. Employment in Biomass Research, Design, Consulting, Marketing Installation, Maintenance, and Power Generation Ops Manufacturing NE NW W Central SW SE B. Employment in Solar ,000 1,500 2,000 2,500 3,000 Research, Design, Consulting, Marketing Installation, Maintenance, and Power Generation Ops Manufacturing NE NW W Central SW SE C. Employment in Wind Research, Design, Consulting, Marketing Installation, Maintenance, and Power Generation Ops Manufacturing NE NW W Cent SW SE D. Employment in Other Renewables Research, Design, Consulting, Marketing Installation, Maintenance, and Power Generation Ops Manufacturing NE NW W Central SW SE E. Employment in Energy Efficiency NE NW W Cent SW SE F. Employment in Bioenergy & Alt. Fuels ,200 1,500 1,800 Research, Design, Consulting, Marketing Installation, Maintenance, and Power Generation Ops Manufacturing Research, Design, Consulting, Marketing Installation, Maintenance, and Power Generation Ops Manufacturing ICF International C-2 February 2013

53 NE NW W Central SW SE G. Employment in Advanced Energy NE NW W Cent SW SE H. Employment in Other Technologies ,000 Research, Design, Consulting, Marketing Installation, Maintenance, and Power Generation Ops Manufacturing Research, Design, Consulting, Marketing Installation, Maintenance, and Power Generation Ops Manufacturing ICF International C-3 February 2013

54 Supplemental Figures to Figure 3-18 and Figure 3-19: Effects of Specific Factors on Business Growth ICF International C-4 February 2013

55 ICF International C-5 February 2013

56 Supplemental Figures to Figure 3-22 and Figure 3-23: Effects of Programs, Policies, and Regulations on Business Growth ICF International C-6 February 2013

57 ICF International C-7 February 2013