Driving #OurAVFuture: Indiana Event Recap

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1 Driving #OurAVFuture: Indiana Event Recap December 4, 2018 at the Salesforce Tower in Indianapolis Background The Partnership for Transportation Innovation and Opportunity (PTIO), whose founding members include The American Trucking Associations, Daimler, FedEx, Ford, Lyft, Toyota Motor North America, Uber, and Waymo, is committed to advancing autonomous vehicle (AV) technology in ways that improve quality of life and economic opportunity for all Americans. Acknowledging we don t have all of the answers, PTIO is committed to developing an evidencebased understanding of the interplay between AVs and the workforce. This pursuit requires soliciting the aspirations, concerns, and viewpoints of impacted communities across the country. PTIO s top priority is to identify and encourage adoption of policies and programs that will help connect workers with AV-related economic benefits and ensure there are opportunities for all workers during the transition to a future with AVs. Adequately capturing nuances specific to regional labor markets is fundamental to this mission. With this in mind, PTIO was pleased to jumpstart its nationwide community listening tour with a roundtable conversation in Indianapolis, Indiana. A recent analysis from the Brookings Institution explored the question of how the transition to digital mobility, including the switch to autonomous vehicles, will impact workers in transportation-related occupations. Their findings indicated that Indiana is among ten states with the largest share of workers who could be impacted by the deployment of new transportation-related technology.1 Attendees PTIO was honored that state elected and appointed officials chose to take part in the discussion. Distinguished participants included Secretary Blair Milo, Office of Career Connections and Talent; Commissioner Joe McGuinness, Indiana Department of Transportation; Mayor Karen Freeman-Wilson, Gary, Indiana; Senator Michael Crider, Chair of the Committee on Homeland Security & Transportation; and Representative Holli Sullivan, Chair of the Committee on Roads and Transportation. Staff members from the Indiana Department of 1 The Brookings Institution s Metropolitan Policy Program, How big could the AV industry be? 9.5 million workers and counting, J. Kane and A. Tomer, November 15, 2018.

2 Transportation, Representative Susan Brooks office, and Senator Todd Young s office were in attendance as well. Also joining the conversation were participants from industry, academia, and nonprofit organizations. PTIO was grateful to gain the insights of representatives from the Purdue School of Engineering and Technology; Indiana University; ConexusIN; Salesforce; Project Lead the Way; the Indiana Motor Truck Association; the Indiana Manufacturers Association; FedEx; Cummins; Toyota Motor North America; Toyota Motor Manufacturing Indiana; and the American Trucking Associations. Roundtable Agenda Items The discussion was divided into three subtopics: Indiana + Its Workforce, Public-Private Partnerships + Workforce Development, and Existing Research + Pursuing a Local Understanding. A review of each portion of the conversation is below. Indiana + Its Workforce. In order to frame the conversation and provide information relevant to Indiana s workforce challenges and successes, Secretary Blair Milo delivered remarks outlining recent, state-specific initiatives. Secretary Milo leads the state s Office of Career Connections and Talent, and in that capacity is tasked with connecting individuals with training opportunities that lead to career pathways. Equally important is her role in cultivating Indiana s talent pool so that Hoosiers are prepared to meet the needs of the future. Noting that some projections estimate that 85 percent of jobs that a student in Kindergarten will take as an adult do not yet exist 2, Secretary Milo explained that the state is focused on creating a nimble education and training system capable of responding to an AV-enabled, dynamic economy. As part of its Next Level Jobs Initiative, Indiana has established two funding streams: The Workforce Ready Grant and the Employer Training Grant. The former offers financial assistance to students seeking training in certain in-demand industries; students may enroll at qualifying programs at Ivy Tech Community College Locations, Vincennes University, and other eligible training providers. The Employer Training Grant provides reimbursement to employers in certain high-wage, in-demand industries at up to $5,000 per each employee they provide training. As of the date of this roundtable, the Workforce Ready Grant has seen 4,000 individuals complete training with 11,000 enrollments since August of Just under $14 million had been obligated for the Employer Training Grant. Additionally, at the core of Indiana s focus on education and workforce systems is an emphasis on rethinking the existing pipelines feeding jobs in the state. As the field arm of Governor Holcomb s workforce cabinet, Secretary Milo serves as group s primary boots on the ground operative who brings their work across the state and into local communities. The workforce cabinet recently produced a set of recommendations specific to the K-12 education pipeline, a 2 Institute for the Future, The next era of human machine partnerships, emerging technologies impact on society & work in 2030.

3 segment of which they have aptly named, the Engage, Explore, and Experience Model. Under this recommendation, elementary students in grades kindergarten through 5 th grade would undergo early engagement with what work is; including early elements that are ageappropriate. Students in 6 th through 8 th grade would then be exposed to opportunities to explore different careers, honing in on what careers they are interested or less interested in. By doing so, these students will be prepared to experience elements of careers they identify of interest to them during grades 9 through 12. A non-negotiable piece of this puzzle is employer and industry engagement in the pipeline; Secretary Milo explained that Indiana is engaging the business community throughout the K-12 model so as to maximize the nimblefactor the state has identified as necessary to impart on the system. Involving industry at each step is crucial in forming a structure that immediately responds to skills as they change over time and in allowing students to bring those skills to market quicker. Attendees proceeded to discuss where Indiana could focus future efforts toward promoting a nimble workforce development and education system, and what challenges lie ahead. There was a general agreement that the state s career and technical centers which serve high schoolers are largely under-utilized. Mayor Karen Freeman-Wilson of Gary, Indiana spoke to the unrealized potential of these centers across the state, noting that the community college and university system is well-positioned to work with these existing entities to deliver a spectrum of education opportunities to students, infusing their learning with elements and skills supporting the world of autonomous vehicles, artificial intelligence, and other emerging technologies. The Mayor went on to suggest that employers could help greatly in harnessing the potential of career centers, including through sponsoring programs delivered to students at a younger age in order to foster awareness of careers supported through these centers. On that note, Representative Holli Sullivan argued that career centers are impacted more by employers than educators, and that career centers that resemble an actual workplace may be more enticing to prospective students. Achieving this, though, is incumbent upon employercollaboration with educators. Other participants went on to describe obstacles that prevent or dissuade employers from entering the K-12 pipeline. For example, from a trucking industry perspective, there are regulatory hurdles that inhibit motivation among interstate carriers to recruit from this age group due to age limits on driving trucks across state lines (must be 21 years or older). Participants also raised concern over the future of manufacturing in Indiana an industry which currently enjoys prominence in the state. Indiana s Department of Transportation has been working with their university partners to examine how manufacturers can benefit from emerging technologies like autonomous vehicles and artificial intelligence and ensure that the state does not lose its competitive advantage in the automotive manufacturing space. Participants agreed that ensuring existing jobs and the workers that fill them are able to evolve in response to emerging technologies is critical; but equally important is addressing how to ensure these existing jobs remain in state.

4 Public-Private Partnerships + Workforce Development. Building upon the previous segment s discussion on employer and industry involvement in the education pipeline, PTIO member Robert Chiappetta of Toyota Motor North America delivered remarks on public-private partnerships and their role in workforce development efforts. One of PTIO s objectives is to understand the differences across states, regions, and communities, and the various nuances related to differing resources or participation in the transportation industry. Gaining an understanding of these variances is crucial to inform future workforce development policies and programs. Tim Hollander of Toyota Manufacturing Indiana went on to speak about Toyota s Advanced Manufacturing Technician (AMT) Program. The AMT program has been a model of success for public-private partnerships in workforce development and has afforded Toyota the opportunity to not only build a skilled pool of talent, but also to learn what is effective in a partnership. Tim noted that the company was struggling to find workers who were skilled across the gradient of tasks required in today s advanced manufacturing environment; essentially, individuals were single-skilled. In partnering with Vincennes University in Indiana, the AMT program was able to create a curriculum responsive to this need and has resulted in individuals who complete the program and gain proficiency in they variety of skills needed in advanced manufacturing today they are multi-skilled. The AMT program also places a focus on so-called, soft-skills those non-technical attributes such as team work, communication, and critical thinking. All of the above has resulted in a pool of workers that are prepared to fill jobs across industry and employers, not just within Toyota. With this, Toyota has created what could be described as an inclusive career pipeline. Robert proceeded to note this as an attribute to acknowledge, arguing that it would be foolish for an employer to believe that they can build four walls around their pipeline and protect it as their own. It is incumbent upon the business community to engage as many partners as possible so that regionally, the pipeline is strong; it is important for players up and down the supply chain to feel as if they have access to that pool of talent and can meet their own needs. Thinking about pipelines in a way that engages stakeholders across the region is essential so as to avoid a situation where employers are forced to poach talent from one another. As emerging technologies like AVs take hold, partnerships like this will be important in ensuring talent needs are met, but also so impacted communities are able to respond to shifts in existing occupations. Participants proceeded to discuss experiences related to public and private partnerships and workforce development programs in Indiana, including successes and challenges. Mayor Freeman-Wilson acknowledged that the scalability of these programs is absolutely essential in areas where the major employer partner like Toyota or FedEx may not necessarily be present. She noted that there are various state-based and national associations, such as the Association of Indiana Municipalities and the National League of Cities, who are thinking about these issues and could be valuable partners in deployment of workforce development programs to underserved populations. Additionally, another participant pointed to the work that Indianapolis Center for Leadership Development is undertaking to provide youth with skills and experiences related to character building, confidence, and the various soft skills that others

5 have identified are sometimes hard to cultivate. This is a holistic approach that is not careerspecific but rather lays the groundwork for an individual to realize success in an array of sectors. Among the challenges that participants identified included shifting demographics and differences among the younger generation. The elementary and secondary students of today are exposed to technology at a young age, and it permeates the activities school or otherwise in which they engage. Changing the narrative around some of these careers whether traditionally a driving occupation or manufacturing is crucial as they too will be increasingly technology-based. To do this, educating our educators about this reality is vital. A participant from Cummins also offered an anecdote from her own company. Cummins leadership team is comprised of former technicians and delivering this message to parents that companies like to invest in and retain their own talent by encouraging them to seek other opportunities they are interested in is important in shifting the narrative. Existing Research + Pursuing a Local Understanding. The discussion concluded with a segment focusing on the importance of research in understanding the full impact that autonomous vehicles will have on the workforce. While there has been recent work on the topic that PTIO is encouraged by, further study is needed. Participants discussed the US Department of Transportation s recent request for public input on their plans to conduct a study on the impact autonomous vehicles will have on the workforce. PTIO submitted comments to the Department in which they outlined research gaps in the existing body of research specific to AVs and the workforce that are ripe for further exploration. PTIO does not claim to have all of the answers but intends to support further research efforts and also inspire others to study the topic as we collectively and thoughtfully consider what work looks like in an AV-enabled future. To the extent that AVs will impact existing jobs and potentially cause unintended disruption, this will likely vary by region and across communities. Therefore, soliciting the aspirations, concerns, and questions of stakeholders in Indiana is crucial to identifying where further state-specific study may be needed. Secretary Blair Milo offered valuable insights into where research may be targeted with respect to Indiana-specific questions. She highlighted further study into the idea of brain drain in the state. There is a need to examine the extent to which high schools and the postsecondary education system is producing graduates who are equipped to find employment within the state rather than relocate for an opportunity of interest to them or germane to their degree. Specifically: is there a disparity in Indiana between the careers conveyed as opposed to the demand that exists in state? And, how does the relationship between wages and credentials play a role in this conversation, particularly with respect to how credentials are developed? Further, Secretary Milo noted that the state university system is well-positioned to take on this study and others as AVs continue to be developed and deployed, noting that they are valuable partners in this pursuit.