World Chambers Competition

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1 World Chambers Competition

2 Best education and training project Eskişehir Chamber of Industry Turkey FINALIST

3 2017 World Chambers Competition For the Category of Best Job Creation and Business Development Project An exceptional and innovative project for local economic development and development of SMEs ESKİŞEHİR CHAMBER OF INDUSTRY QUALIFIED WORKFORCE RECRUITMENT AND EMPLOYMENT CENTER ECI QualifyWork

4 About Eskişehir Chamber of Industry Eskişehir Chamber of Industry (ECI) founded in 1968 is a professional non-governmental organization having legal entity. ECI has been established with the objectives of accelerating industrialization and dealing with the problems of the industry in the region. It is focused on assisting its members, both SMEs and large enterprises to improve their competitiveness and profitability. The Chamber plays an important role in the Eskişehir region s economic development and business arena. ECI has got 680 members from various sectors such as machinery production, metal goods, white goods, aviation, ready to wear and food industries. The total exports of the members summed up to 2.3 Billion USD in 2016, their turnover is approximately 9 Billion USD and the total work force is around people. Eskişehir Organized Industrial Zone, a subsidiary of ECI, is Turkey s largest Organized Industrial Zone with an area of 32 million square meters. Currently, 500 manufacturers are registered in the zone. As Eskişehir is one of the most important and developed provinces in Turkey, ECI has a fundamental position for the region to contribute to its reputation as an attractive destination to work and start new businesses. The Chamber activities and services aim at helping its members for establishing new contacts, developing business opportunities and meeting their needs such as qualified workforce, awareness on new technologies and infrastructural requirements. Why the Category Best Job Creation and Business Development Project? The Project, ECI QualifyWork, is an exceptional project comprising distinctive inspirational and innovative features and fulfilling specific needs and objectives of the Chamber, of its SME member community and the local economy. QualifyWork Project does not only focus on one single field; rather it covers complementary and integration activities that support the innovation capacities and capabilities as well as the industrial development of both the companies and the region. Having gone beyond the conventional training and consultancy methods and defined its own system, the Project has energized and reinforced the global competitiveness of the companies with a sincere and devoted approach. It is possible to claim that the Project has a unique methodology considering the facts; there has not been any similar project in the past, and it has been inspiring other Chambers as well upon implementation and receiving the outcomes. The Project is most relevant for the Best Job Creation and Business Development Project category since, by taking into account the problems in finding the qualified workforce in Turkey, consequently quality and planning issues in SMEs and finally sustainability and business development difficulties in manufacturers. In addition to these, it is an awareness-raising factor on innovation, which is a must element now; and further it includes activities oriented at development of cooperation and collaborations among the SMEs academics local authorities. It is the Best Job Creation and Business Development Project ; because the Project has simply boosted growth opportunities for our Chamber s member companies, contributed to job creation in our community and created a long-term value for the business ecosystem and the society.

5 Executive Summary The technological changes and new concepts emerging in production are accompanied with competition at global level. It is getting more and more difficult for the industrial companies to keep up with this global race only by means of possessing cheap labor force, which is insufficient. Today, the companies have to create a value to be effective in this global competitive environment. Creating a value means the generation of new ideas for profit, which is the main goal of business corporations. These ideas can mostly be realized in the form of developing new lines of business, investing in new products, manufacturing goods based on creative design, designing new production processes and applying various marketing methods different than others with the underlying philosophy of making a difference. And when we come to the final point, in order to realize all these targets, you need a unique resource which is qualified people. Global economic developments have brought countries to vocational training topic and especially European countries have caught great achievements in this aspect. Nowadays, many firms are trying to import qualified people from foreign countries to make up the shortage. According to survey we made in 2009 just before the project, 43% of employers stated that they would expand their business, if they found adequate workforce as they requested. It shows that vocational training is still a matter to be dealt in Turkey. The actions planned to take place in this project aimed at originating opportunities for developing new skills bearing in mind the ever-changing needs in labor market and increasing the capability of the workers. Hence re-establishing the skills of workers would compensate ever-changing labor market needs. After determining the basic needs of our member companies, we implemented an EU funded project in 2009 with Stuttgart Chamber of Commerce in order to explore German Dual Vocational Education system and prepare a roadmap for applying its implementation in our region. With the complementation of our preliminary project with Stuttgart IHK, we started to establish our Qualified Workforce Recruitment and Employment Center in 2010 unit by unit according to the priorities of our members and the best examples of the German vocational training system. We completed and integrated 6 different units in an order of emerging requirements of our manufacturers by taking into account the technological and innovative developments in related industries as following: 1. CNC Training Center, Industrial Automation Training Center, Rapid Prototyping Training Center, Welding Technologies Training Center, Coordinate Measurement Machines (CMM) Training Center, Robotic Training Center, 2014 We carried out so many different kinds of certified training programs in cooperation with Turkish Labor Agency and we succeeded the training of almost 642 young people, job placement of 391 unemployed people in 204 member companies with the 60% of work placement rate between the years of 2010 and When we consider that the total number of our members is currently 680, it is frankly impressive to serve almost 200 companies in a short time. Since we are more focusing on the unemployed young people in our Center, we are also providing vocational trainings for the workers of our members particularly in metal working, aviation, automotive and railway systems. In addition to this, we are closely working with Eskisehir Osmangazi University by opening our training units for their students studying on engineering and technical departments. We believe that, ECI QualifyWork is a project that has accelerated the growth of member companies, contributed competitiveness of SMEs, improved the employment environment and created opportunities for industry-university-public collaboration.

6 2. Background and Objectives The modernization of the vocational training sector in Turkey has seen many efforts. Nonetheless there is still a gap between engineers and work force: the systematically qualified mechanic. One of the foundation bases of Eskişehir Chamber of Industry (ECI) is to provide vocational trainings to its members. When we look at requirements of target groups and companies located in our region, we see that the most applicable point is that the labor force must match the practical specifications asked by the industry. The European Commission established a commission of experts in order to study the Turkish education system. The commission's aim according to its report was to determine priorities of the EU for Turkey regarding vocational education. The report examined the major problematic areas of the Turkish education system. An industrializing society that already knows the values of information society ; focusing on the current situation of Turkey's vocational education system, the report said that very young population of Turkey is a fruitful source for development but with the current low level of education, this young population becomes a source for crisis. In the length of time, required skills of labor forces have been raised while the aspects such as innovation, technology and R&D have been involved in production process. According to Labor Force - Jobs Determination Survey implemented on 100 companies by our Chamber in 2008, almost all firms working in machinery production industry, which is the strongest sector of Eskişehir, stated that they needed qualified and educated workers in particular areas. Besides, around 80% of participants said that their existing staffs were not enough in know-how and technology. These results have brought us to establish a Qualified Workforce Recruitment and Employment Center to meet their requirements. For a region such as Eskişehir, this is a great importance due to the short time span of these types of actions, because there are hardly any fully developed vocational training centres. There have been already a number of actions taken in the past years to promote them, but the effects were not in all cases up to expectations. In this sense, we tried to bring out a resolution in order to terminate the regional weakness and contribute the competitiveness of our member companies. After realizing the needs analysis on our member companies and preliminary project with Stuttgart IHK, our Chamber decided to implement QualifyWork Project in order to strengthen the technical skills of employees in Eskişehir, which would ensure an endogenous and sustainable economic growth. Eskişehir would then become less dependent on innovation decisions made outside the region. We started to found the Center with the CNC Training Unit by using the funds of European Commission and it followed with other units as shown below:

7 Qualified Workforce Recruitment and Employment Center Establishment Chronology No Unit Year Budget Funder and Grant Rate (EUR) 1 CNC Training Center European Union (75%) 2 Industrial Automation Training Center Regional Development Agency (75%) 3 Rapid Prototyping Training Center Chamber of Mechanical Engineers (75%) 4 Welding Technologies Training Center Regional Development Agency (75%) 5 Coordinate Measurement Machines (CMM) Training Center Regional Development Agency (75%) 6 Robotic Training Center Regional Development Agency (75%) TOTAL The Center was founded at the heart of industry, in Eskisehir Organized Industrial Zone, where 500 factories are located, in order to provide easier and more suitable services to member companies. All laboratories were designed and established with latest technology and in accordance with the needs of target groups. Accordingly, we offer a highly effective and resourceful workforce that focuses on innovation, productivity and efficiency to break down barriers to employment and provide greater employment opportunities, choices, and independence. Results and Influence Vocational training and development is related to the special skills, training, etc. that one may need for a particular job or occupation. It is geared towards the education and training which aim to equip people with knowledge, know-how, skills, and/or competences required in particular occupations. The Qualified Workforce Recruitment and Employment Center mostly helps individuals who are young and unemployed. Apart from this, our Center targets the vocational development of currently working people or students. Vocational development includes job readiness, vocational training, work experience, job placement and job follow-up support services. For almost 6 years, the QualifyWork has met the outsourcing and subcontracting needs of businesses in Eskisehir province and other parts of Turkey. We have the equipment, resources and personnel to help our members with their every-day and special production needs. Since the foundation of units over the years, we have implemented number of technical trainings in accordance with the requirements of SMEs, ensured the recruitment and employment of many young people in industry sector as can be seen below:

8 No 1 2 Name of the Course AB Certified Welder Course Total Course Duration Hour Course Period Number of Trainee Number of People Employed Number of Company Benefited Industrial Automation Quality Control Personnel CNC Milling Machine CNC Milling Machine Quality Control Personnel Programmed Metal Processing Machine Programmed Metal Processing Machine Programmed Metal Processing Machine Programmed Metal Processing Machine Programmed Metal Processing Machine Industrial Control Technician

9 Industrial Control Technician Industrial Control Technician CNC Milling Machine CNC Milling Machine Programmed Metal Processing Machine Industrial Control Technician TOTAL As Eskisehir Chamber of Industry, we have 680 members and all of them are manufacturers. Our members employ almost people in their factories. According to our surveys, every year there is a need of at least 1000 new technical people to work in producer companies. Unfortunately, vocational schools are not enough in terms of number of graduates every year and also the quality. We are planning to provide at least 20% of the yearly new technical people requirement from our Qualified Workforce Recruitment and Employment Center in coming years. When we look at the indicators and employment rates of the Center, we can see that it has been grown in years rapidly. Since the number of people employed from the Center was 54 in 2011, it reached to 134 people in With this actual success rate, we were able to provide almost 14% of the total new technical people requirement of our province last year. By the increase in recognition of our Center and also new investments according to needs of our members, we will be able to catch our target numbers in a few years. Our Center currently provides services with the philosophy of 3E; which is Educate, Empower and Employ. We believe that education is very important. At QualifyWork, we want to help educate people with skills needed for today s workforce. The term empowerment refers to the act of investing with power, allowing people to take back control of their own future. At QualifyWork, we advise, coach and provide information to people who are planning, seeking and managing their own career direction in industry. On the other side, employers tell us that selecting the right person for the job has never been more important than it is today. With local employers communicating their workforce needs directly to our Chamber, we are able to ensure that our trainees are prepared for today s jobs. At QualifyWork, we are passionate about the companies and youth success, and this is what it s all about. Can the idea be applied in other parts of the world? One reason for high youth unemployment across the world, particularly in developing countries, is a growing mismatch between the supply and demand for skills. In developing countries, there is an oversupply of social science and business graduates, but an undersupply of engineers, scientists and

10 technicians. Domestic skills shortages mean that countries rely on foreign labour to fill high demand for technically-skilled personnel. In many developing countries, young people and their parents shun vocational education, which they regard as a 'second-choice' education option. However, these countries could minimize skills mismatches by placing greater emphasis on vocational training and recruitment. At that point, Chambers become a very critical position and importance. Today, most of the Chambers are providing trainings and seminars for their members, but they don t take the responsibility of training the unemployed young people as the qualified workforce and bringing them into the industry. Apart from just a few exceptional countries such as Germany, Chambers are more interested in training of members staff or only in political part of the business. As a Turkish Chamber who is aware of the importance of this issue, we wanted to take a concrete step in resolution of the qualified workforce subject, and we realized this Project as the most crucial target within our strategical action plan. This project can be applied in every parts of the World, if the Chamber sees that vocational training is the fundamental trivet of the industrial development. Of course, it is needed to invest on it, but it is worth, and today there are so many financial instruments for Chambers by the EU, national and local authorities. We believe it is a subject that Chambers should focus on, because if the workforce is highly qualified, motivated and multiskilled; it promotes productivity, flexibility, quality and innovation. In addition, it ultimately elevates the status of industry and manufacturing, and confirms the importance of high quality technical education and training. After all it is skills, knowledge, experience and competence of people that will create jobs. This is the responsibility what the Chambers take exactly! Why the project should be selected among the finalists and presented at the 10th World Chambers Congress? Our project is a candidate for the category of Best Job Creation and Business Development Project. When we ask this question what are the key factors of business development? ; most of the people put the good employee in the first place. In our project, we tried to contribute to development of our members business, but not only this! We also played a considerable role to increase capacity and capability of workforce in our region, recruit them in suitable member companies, solve the qualified people problem of our manufacturers, and also help reduce the unemployment issue in our province. We created job opportunities for unemployed young people, qualified them, provided to industry and contributed to business development of our member companies. The special training program implemented in our Center for Nigeria Petroleum Training Institute can be shown as a proof of a being a good example. We carried out a 3-month technical training program in welding technologies for 20 technicians of Nigeria Petroleum Training Institute in our Center. Selection of a Nigerian institution for one of its critical program is an evidence for innovative nature and the wide range impact of our Project. This project is also a good example of establishing cooperation between industry, university and public sectors. We developed collaboration with the Eskisehir Osmangazi University in the preparation and implementation phases of the project. Moreover, we built unites of our Qualified Workforce Recruitment and Employment Center with the funds of EU and regional development agency, and we involved them into the issue.

11 And now, we are running most of our courses in cooperation with Turkish Labor Agency for recognition and accreditation of youth people qualified in our training centers. We are carrying out technical training programs with Cluster organizations representing the aviation and railway industries which are the main foundation stones of our regional economy. Why our project should be selected among the finalists and presented at the 10th World Chambers Congress? The answer is simple, because; - QualifyWork is a project which is designed according to needs of member companies and succeeded to fulfill the requirements with a high a realization rate in a short period, - QualifyWork is a project which is implemented by a small Chamber with only 680 members and achieved to reach almost 200 companies up to now, - QualifyWork is a project which is systematically established by benefiting from the public and international grants with a total investment amount of EUR , as a good example of planning and management, - QualifyWork is a project which is managed to qualify 642 unemployed young people in 5 years and place 391 of them in a new job with a 60% employment rate, - QualifyWork is a project which has built a unique cooperation platform and also social dialog between industry, academia, civil society and public sector in order to find a solution for one of the main problems of the manufacturing sector, - QualifyWork is a project which might be an inspiration for all Chambers with is innovative approach and successful impacts for the local economic development. As the Chamber who initiated this project, we are proudly following the developments and similar activities of other Turkish Chambers. And we say that we are ready to share our knowledge and experience in this subject, which is not an emerging issue of Turkey only, and also most of developing countries. QualifyWork is a project that can be used by Chambers in order to boost the growth of member companies by creating qualified workforce and fulfilling the most important need of the industry! Project Coordination Office T: F: E: proje@eso.org.tr W:

12 This project has been implemented in cooperation with; Eskişehir Chamber of Industry Eskişehir Organized Industrial Zone BEBKA Regional Development Agency Turkish Labor Agency Eskişehir Osmangazi University Eskişehir Chamber of Mechanical Engineers Eskişehir Aviation Cluster Eskişehir Railway Systems Cluster

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