HUMAN CAPITAL. Creating a skilled workforce to meet the needs of West Virginia s economy

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1 HUMAN CAPITAL Creating a skilled workforce to meet the needs of West Virginia s economy Data and recommendations from the WV Forward Summary of Findings

2 FOUR-PART STRATEGY FOR ECONOMIC DIVERSIFICATION 1. Maintain Current Industries /Energy /Aerospace maintenance, repair & operations /Auto parts manufacturing /Metals manufacturing /Fulfillment distribution /Building products 2. Differentiate in Growing Sectors Where West Virginia Has an Advantage /Fine chemicals /Carbon fiber and advanced plastics 3. Capture New Sectors that Have High Growth Prospects /Higher-end tourism /Cyber security, cloud & IT services 4. Keep an Eye on Potential Opportunities /Life sciences /Vehicle assembly plants 2

3 GROWTH & SALARY OF JOBS WITHIN TARGETED SUBSECTORS Energy Next 10 Years Occupa)on Median Salary Growth Rate % Requested BA Computer Systems Analysts $70,760 19% 91% Computer User Support Specialists $44,100 11% 44% Database Administrators $74,400 11% 78% Civil Engineers $76,410 9% 98% Grand Total $67,233 6% 65% Plumbers, PipefiSers & SteamfiSers $58,910 5% 0% Training & Development Specialists $54,270 5% 66% Financial Specialists, Other $72,750 4% 98% Chemists $63,700 4% 99% Computer Occupa)ons, Other $73,260 3% 87% Managers, Other $101,230 2% 91% Supervisors - Mechanics, Installers & Repairers $64,320 2% 52% Industrial Engineers $81,880 2% 98% Compliance Officers $63,350 2% 89% Supervisors - Helpers, Laborers & Material Movers $50,210 2% 14% Industrial Produc)on Managers $93,710 1% 89% Source: Allegheny Conference Inflec)on Point Report

4 GROWTH & SALARY OF JOBS WITHIN TARGETED SUBSECTORS IT & Cloud/ Occupa)on Median Salary Growth Rate % Requested BA Data Services Next 10 Years Web Developers $53,810 23% 86% Opera)ons Research Analysts $65,620 21% 87% Informa)on Security Analysts $59,780 20% 91% Computer Systems Analysts $70,760 19% 91% Sta)s)cians $52,220 15% 94% Actuaries $98,360 15% 100% Soaware Developers, Applica)ons $84,740 12% 90% Soaware Developers, Systems Soaware $75,660 12% 83% Computer User Support Specialists $44,100 11% 44% Database Administrators $74,400 11% 78% Computer Network Support Specialists $58,150 9% 61% Network & Computer Systems Administrators $69,410 7% 75% Computer Occupa)ons, Other $73,260 3% 87% Computer Network Architects $93,870 3% 75% Computer Programmers $69,080-5% 83% Source: Allegheny Conference Inflec)on Point Report

5 GROWTH & SALARY OF JOBS WITHIN TARGETED SUBSECTORS Engineering U.S. jobs related to plastics manufacturing are expected to grow by 462,000 over the next decade Occupa)on Median Salary Growth Rate % Requested BA Materials Engineers $79,110 13% 99% Engineers, Other $94,610 11% 91% Mechanical Engineers $84,190 10% 99% Civil Engineers $76,410 9% 98% Petroleum Engineers $112,890 9% 100% Health & Safety Engineers $67,750 8% 99% Environmental Engineers $82,940 7% 100% Industrial Engineering Technicians $49,360 4% 7% Mechanical Engineering Technicians $49,100 3% 22% Industrial Engineers $81,880 2% 98% Electrical Engineers $85,980 2% 98% Civil Engineering Technicians $48,530 2% 45% Chemical Engineers $93,440 2% 100% Source: Allegheny Conference Inflec)on Point Report

6 GROWTH & SALARY OF JOBS WITHIN TARGETED SUBSECTORS Manufacturing Next 10 Years Occupa)on Median Salary Growth Rate Aircraa Mechanics & Service Technicians $55,990 27% Gas Plant Operators $51,770 24% Industrial Machinery Mechanics $46,920 20% Computer Numerically Controlled Machine Tool Programmers $46,590 19% Millwrights $45,880 18% Computer-Controlled Machine Tool Operators $37,830 16% Machinists $37,270 11% Maintenance Workers, Machinery $44,100 9% Produc)on Workers, Other $22,600 8% Maintenance & Repair Workers, General $37,800 3% Welders, CuSers, Solderers & Brazers $38,840 3% Petroleum Pump System Operators, Refinery Operators & Gaugers $59,090 3% Source: Allegheny Conference Inflec)on Point Report

7 WV graduates are not specialized in fast growth sectors Number of graduates by degree type and discipline, 2015 Field of degree Business Management Marketing and Related Support Services Health Professions and Related Programs Liberal Arts and Sciences General Studies and Humanities Homeland Security Law Enforcement Firefighting and Related Professions Education Social Sciences Computer and Information Sciences and Support Services Psychology Parks Recreation Leisure and Fitness Studies 893 Engineering 875

8 STEM graduates, and especially engineers, are among employee groups that companies report are the most difficult to find Which positions are most difficult to fill? (Select all that apply) % of respondents (n = 1,285) Management Science & engineering Computer programmers/it Sales/marketing 17.4 Customer service staff 17.2 Business support functions 12.8 Administrative support 9.3 Laborers, movers, drivers 8.6 Production workers 8.0 Manual tradesmen 7.5 Creative

9 West Virginia lags behind peers Bachelor's or higher (% total) Some college or associate degree (% total) Educational attainment in population 25+, 2015 High school graduate (% total) No High school diploma (% total) in attainment of higher education 19.6% 23.3% 38.8% 26.8% 29.7% 37.0% 30.6% 25.7% 28.3% 29.2% 24.3% 29.0% 25.7% 27.3% 40.7% 33.5% 25.1% 33.7% 35.7% 24.6% 27.6% 14.0% 14.9% 10.4% 10.3% 10.3% 11.1% 12.9% West Virginia Kentucky Maryland Ohio Pennsylvania Virginia United States

10 West Virginia has fewer STEM graduates than all its neighbors Maryland Pennsylvania 19.2% 23.0% Virginia 18.5% Ohio 16.9% Kentucky 15.4% West Virginia 14.0%

11 IMPROVE THE UNDERLYING ENABLERS Business climate /Rebrand WV s strengths / Establish plan to combat rising utility costs / Eliminate inventory tax Innovation business development / Convene innovation organizations in the state / Increase support to growing startups / Enhance small business support resources / Change mix of incentive types / Expand invemestment attraction capabilities Infrastructure / Create financing mechanisms to fund capital projects / Launch site certification program / Expand broadband coverage Human capital / Create concerted state-wide human capital effort / Expand STEM talent pool / Encourage returning/relocating to West Virginina / Combat the opioid crisis / Train workforce in jobs that are high in demand 11

12 Potential efforts that can be taken at the secondary education level Education 2 Employment (E2E): Engaging employers in the educa)on process Build toward job skills Embed "E2E" into curricula and support groups Greatly increase quantity and quality of content of information Embed E2E content into all subject areas (e.g., solve math problems that an engineer is likely to solve) Create experiential learning opportunities (e.g., field trips) Also inform key influencers (e.g., parents and communities) to aid decision making process Enliven vocational Tracks Increase attractiveness of vocational tracks: Forge partnerships with employers to provide apprenticeship, sponsorship & guaranteed jobs Forge partnerships with universities for curriculum design, shared faculty & student-tostudent mentoring Encourage early exposure to the working world through mandatory internships

13 The State can play a key role in focusing the State s vocational efforts around priority topics Channel secondary school graduates into priority areas Identify priority curricula based on current job demand and shortage in the State Create a statewide strategy Define regulations and skill standards, issue for vocational education Increase transparency and access to job information curriculum guidelines and design apprenticeship programs Disseminate best practices and monitor sectorial skills development plans Map labor demand and supply per industry Aggregate information on salary and career path Provide career support services Improve visibility, data to inform policy, funding Work closely with the private sector Promote sector collaboration Facilitate convening of providers and employers to identify talent requirements, conduct workforce planning, develop curriculum with providers and facilitate placement after graduation

14 Post-secondary institutions can also consider opportunities to increase the pool of STEM graduates Create sector specific curricula Create industryrelevant & practical delivery models Design granular, activity-based courses and degrees based on most important competencies in priority sectors (e.g. cybersecurity and material sciences degrees) Create discrete, skill-based modules that stack up to larger qualifications, but can also be standalone Link classes to industry-recognized skills qualifications & certificates Greatly increase the breath of practical, hands-on learning opportunities through simulations (e.g.,digital) Increase capacity and affordability of vocational training Expand open access institutions Deliver highly standardized curricula using nontraditional channels (i.e. Internet) Attract and keep the best faculty Invest in R&D and commercialization to attract faculty Explore innovative teaching methods Develop positioning and offer attractive benefits packages

15 Example: ShaleNET (Pennsylvania) ShaleNET is a job-placement program funded via more than $15 million from the U.S. Department of Labor that has helped men and women find work in the natural gas industry. Since its inception, ShaleNET has offered subsidized classes that range from CDL truck driving certifications to Roustabout 101 courses that include rig visits and a lesson on how gas gets from the ground to the home. Certificate and two-year degree courses More than 2,000 ShaleNET students have been placed in shale-related jobs.

16 Mayor Bill Peduto, City of Pittsburgh Elected as Mayor of the City of PiSsburgh in 2013 Leader in sustainability, good government, and in transforming the region for the needs of the new economy