Workforce Readiness in the Unconventional Energy Supply Chain
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1 Workforce Readiess i the Ucovetioal Eergy Supply Chai Webiar: Jobs & Workforce Developmet i Ohio's Shale Idustry Cosortium for Eergy, Eviromet & the Ecoomy Ohio Uiversity Voiovich School of Leadership ad Public Affairs Joel S. Yudke, Ph.D. Pricipal, High Road Strategies, LLC 104 N. Columbus St., Arligto VA jyudke@highroadstrategies.com (703)
2 Workforce Readiess Study Report by High Road Strategies & IHS Ecoomics For Eergy Equipmet & Ifrastructure Alliace (EEIA) represetig ucovetioal eergy supply chai sector Equipmet maufacturers ad distributors; costructio cotractors; service providers; materials suppliers; labor uios (LiUNA, IUOE) Idepedet assessmet of workforce readiess challege for sector Pricipal workforce challeges Core ad high-demad occupatios (HDOs) Public ad private sector workforce programs Quatitative (IHS proprietary models, BLS data) ad qualitative (iterviews, survey, literature review) aalyses Natio; 3 states with plays (TX, PA, LA); 2 i early developmet (OH, CO); 1 o-producer (IL)
3 Workforce Challeges Shortage of qualified local workers Techological chage Soft skills ad behavioral barriers Operator qualificatios Workig coditios ad burout Attractig youth to skilled trades A agig workforce Competitio for skilled workers
4 73 Core Occupatios Rage of skill, educatio & traiig, wage & salary levels Petroleum & mechaical egieers; skilled trades (welders, OEs, diesel techicias); costructio laborers; trasport drivers; service uit operators; roustabouts Well services, costructio subsector project to grow, as wells i operatio grow Capital goods, materials, logistics, professioal services grow at healthy rates Other costructio subsector (pipelies, facilities) rise ad the declie as ifrastructure built State treds reflect recessio, developmet stages Cautio: treds are for all workers i core sectors, ot just workers employed i ucovetioal supply chai activities
5 24 High-Demad Occupatios High demad occupatios of the ucovetioal eergy supply chai Occupatioal % i Supply Chai Descriptuio Code Sectors Costructio maagers 69.5% Health ad safety egieers, except miig safety egieers ad ispectors 51.6% Mechaical egieers 53.1% Petroleum egieers 28.3% Electrical ad electroic egieerig techicias 42.3% First-lie supervisors of costructio trades ad extractio workers 65.1% Costructio laborers 67.4% Operatig egieers ad other costructio equipmet operators 69.4% Plumbers, pipefitters, ad steamfitters 82.5% Derrick operators, oil ad gas 88.3% Rotary drill operators, oil ad gas 80.8% Service uit operators, oil, gas, ad miig 88.0% Roustabouts, oil ad gas 85.0% Bus, truck ad diesel mechaics 37.1% Mobile heavy equipmet mechaics, except egies 66.5% Idustrial machiery mechaics 39.5% Computer umerically cotrolled machie tool programmers, metal ad plastic 35.8% Machiists 33.3% Welders, cutters, solderers, ad brazers 49.1% Weldig, solderig, ad brazig machie setters, operators, ad teders 38.0% Heavy ad tractor-trailer truck drivers 68.8% Excavatig ad loadig machie ad draglie operators 70.5% Gas compressor ad gas pumpig statio operators 56.6% Wellhead pumpers 37.8% Total for all high demad occupatios 61.2% Source: BLS, Occupatio Employmet Statistics, Natioal Idustry Specifc Occupatioal Emloymet ad Wage Estimates, State HDO Employmet Treds, TX, PA ad LA have higher levels of ucovetioal eergy developmet i the growth ad recovery treds for HDOs OH ad CO have grow more slowly, represetig less developed sectors IL a outlier, HDO levels ever recover from recessio Heavy ad tractor-trailer truck drivers, welders i wide demad across sectors High demad for costructio laborers, operatig egieers, petroleum egieers, electrical & electroic egieerig techicias, ad oil ad gas service workers oly i certai sectors HDO employmet treds parallel core occupatio treds i 6 selected states HDO employmet dips dow less i recessio years, grows faster tha core employmet, ad much faster tha o- HDOs Several factors cotribute to treds: Post recessio reboud of maufacturig ad costructio; Ucovetioal eergy activity, especially i major producig states Note: umbers reflect all jobs i core sectors, ot just i ucovetioal activities
6 HDO Projectios, High Growth, HDO employmet projected to grow by 40%, to 237,000 HDOs represet 7-9 of top 10 occupatios i each sector HDO demad reflects demad due to supply sector growth High growth: well service jobs, machiists, heavy-truck drivers, bus & truck mechaics, mobil heavy equipmet mechaics Replacemet Needs Measure of turover, as workers chage employers or occupatios, go back to school, retire, or leave workforce Most HDOs likely to have substatial replacemet eeds Supply chai employers may eed to fill 118,000 ew jobs from ecoomic growth ad replacemet eeds i HDOs by 2025 Oly costructio laborer ad maager jobs projected to declie Modest growth: machiery mechaics, mechaical egieers, electroics techicias Rise ad the fall: Costructio maagers ad laborers Steady growth after 2016: operatig egieers Mostly flat through 2020, rise after: welders
7 Workforce Readiess Opportuities Projected growth of HDO employmet raises questios about atio's educatio ad traiig system's ability to meet employer eeds Ucovetioal oil ad gas states challeged to provide workforce programs eeded to support locally traied workers i HDOs for the supply chai May workforce iitiatives started, expaded ad stregtheed to icrease supply of skilled workers to meet curret ad expected demad for HDOs Several types of efforts, icludig combiatio of public ad private sector participatio, at local, state, multi-state ad atioal levels Commuity college, techical college ad uiversity programs, i partership with eergy-related compaies ad busiess trade associatios O-the-Job Traiig (OJT), uio appreticeships, ad third party providers, Natioal ad state cosortia of workforce stakeholders (busiesses, uiversities, commuity colleges, other educatio ad traiig providers.
8 Ohio Workforce Readiess Marcellus Shale ad Utica Shale: covers most of state's easter half ad expected to have large impact across state Shale gas productio over past few years havig ecoomic impacts, opeig up thousads of ew shale-related jobs Core ad HDO jobs fell durig Great Recessio, HDO's ot as fast, but both had sharper declie tha total OH employmet; HDOs rise faster i respose to sector growth Top te HDOs (89%): heavy ad tractor trailer truck drivers, machiists, costructio laborers, idustrial machiery mechaics, welders, operatig egieers, first-lie supervisors, plumbers, pipefitters ad steamfitters, mechaical egieers, busiess truck ad diesel mechaics
9 Ohio Workforce Readiess Iitiatives Public ad private sector efforts to assess ad take advatage of workforce opportuities just gettig off the groud Ohio Departmet of Jobs ad Family Services (JFS) workig with workforce ivestmet areas, commuity colleges, other postsecodary educatioal istitutios ad employers Idetifyig HDOs i ucovetioal eergy sector ad establish appropriate traiig programs Ohio Oil ad Gas Eergy Educatio Program (OOGEEP) Zae State (Zaesville, Cambridge) Stark State College (Cato) Career & Techology Educatio Ceter (C-TEC; Lickig Couty) Cetral Ohio Techical College (Newark, OH) Marietta College (Marietta) Chevro's Appalachia Partership Iitiative
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