Greater Kansas City Employer Survey

Greater Kansas City Employer Survey 2011 Regional Workforce Intelligence Network of Greater Kansas City Funding provided by

Overview A skilled workforce is essential to the attraction of new capital to the Kansas City region and to the continued development and growth of existing commerce. To help develop a skilled workforce, timely labor market information can provide the basis for better informed strategic decisions regarding the allocation of resources for workforce and economic development. The Mid-America Regional Council (MARC), the association of city and county governments and metropolitan planning organization for the Kansas City metropolitan area, convened the Regional Workforce Intelligence Network (RWIN) in October 2010. RWIN s role is to identify workforce development needs and opportunities within the region to support economic development. This work is supported through a two-year America Works Initiative (AWI) grant awarded to MARC by the Walmart Foundation in 2010. Data initiatives provide information that is essential in identifying workforce development needs and opportunities that can contribute to the process of building a network of labor market intelligence. RWIN meets on a monthly basis to discuss real-time labor market information and ways to improve workforce development for our sector partnership activities. 2 Overview As part of the America Works Initiative, MARC is working on several fronts to better provide information to the community, including: The Monthly Workforce Indicators Newsletter, launched in April 2011, is distributed on a monthly basis to provide the most up-to-date labor market information and analysis for the Kansas City area. The indicators include employment and unemployment rates, help wanted information and key labor market information for each of RWIN s targeted industries.

A Business Outlook Index will be produced by collecting data from a monthly business confidence survey. Results will be included in upcoming issues of the Monthly Workforce Indicators newsletter. The survey will provide the region with a sense of how confident the business community is in the regional economy and give advanced notice for when businesses may be looking to expand their workforce. Our Sector Partnership Development efforts have focused on four key sectors: transportation logistics, advanced manufacturing, health care and biosciences. Work is now underway to develop new partnerships between educators and employers in supply chain and advanced manufacturing industries. Survey Study Methodology Conducted by Strategic Research & Analytics, LLC, and ETC Institute, the Greater Kansas City employer survey covered MARC s nine-county region and included a regional sample stratified by industry. Participants were selected randomly from a database of nearly 5,000 employers, supplied by MARC and the Greater Kansas City Chamber of Commerce. The survey instrument was developed in consultation with MARC and RWIN. The survey was administered by telephone and was fielded for six weeks in March and early April 2011. The survey responses were then analyzed and are presented in the document that follows. ABOUT MARC The Mid-America Regional Council is a nonprofit association of city and county governments and the metropolitan planning organization for the bistate Kansas City region. Governed by a board of local elected officials, it serves nine counties Johnson, Leavenworth, Miami and Wyandotte in Kansas, as well as Cass, Clay, Jackson, Platte and Ray in Missouri. The MARC region has 1.9 million residents and 120 cities. KANSAS MISSOURI Greater Kansas City Employer Survey 3

MARC s Economic Forecast Each year, the Mid-America Regional Council and the Greater Kansas City Chamber of Commerce release an economic forecast for the Kansas City region. The most recent forecast shows the area economy improving, yet the region s situation has been characterized as a slow, jobless recovery. The economic review reported that the Great Recession ended in mid-year 2009, and the Kansas City area economy has been growing modestly since that time. Unfortunately real, robust job growth has not yet occurred. Nationwide, the economy (as measured by Gross Domestic Product) has fully recovered to pre-recession levels; however, it has done so with 7 million fewer workers. Employment appears to have bottomed out in early 2010, and has grown only slightly since. The Kansas City metro area experience mirrors that of the nation. From the onset of the recession to the first quarter of 2010, the Kansas City area lost an estimated 93,000 jobs. Employment level has been fairly stagnant since then, but MARC forecasts project moderate employment growth during the remainder of 2011 (22,000 jobs in total) and a solid employment gain of 34,000 jobs metro-wide in 2012. This employment growth is not evenly distributed across industries. The broad services sector has long been the 0-20,000-40,000-60,000-80,000-100,000 Kansas City Employment Change 2008 2009 2010 2011 2012 Forecast leader in employment growth in the region. This sector added 8,000 jobs in 2010 and is projected to grow by 16,000 and 20,000 the next two years, respectively. Within the services industry, most of the growth will be in health, administrative support, technical, professional and food 4 MARC s Economic Forecast

services. The manufacturing sector shows very modest growth over the forecast period, unlike the nation s forecast for continued losses in manufacturing jobs. Construction is forecasted to bounce back in 2011 and 2012 after being hit very hard during the recession. Finance, insurance and real estate follow the same pattern as construction. After losing jobs due to the recession, growth again returns in 2011 and 2012. (See the chart on page 11.) The Employer Survey included in this report was taken at a time when the Kansas City area is showing signs of recovery, but companies are slow to add jobs. Employer attitudes toward the area s economic climate during this survey might be described as hopeful, but not confident. The region is far enough removed from the recession that employment should begin to show growth. The survey results show that employers continue to be concerned and conservative in their hiring practices and intentions, but show some signs of hope to add jobs in the near future. Greater Kansas City Employer Survey 5

Sales History Employer survey respondents were asked how their sales had changed in the past year in order to provide a context in which to assess changes in past levels of employment. Overall, 36 percent of respondents across all industries reported sales increased during the previous year. Another 34 percent reported sales stayed the same. These results provide a relatively positive picture of economic activity over the past year. During the past year, have your sales: Increased sharply (15% +) 6. Increased modestly (3 to 4%) Stayed about the same (-3 to ) 29.6% 34. Declined modestly (-4 to -14%) 17. Declined sharply (-15% or more) 7. Don t know 5.5% As the economy was in recovery mode in 2010, more responding businesses saw their sales increase than decrease. 6 Survey Results

Sales Expectations What are the expectations for your company s sales revenue next year? Strong growth (15% or more) Modest growth (4% to 14%) Stay about the same (- to ) Modest decline (-4 to -14%) 6.4% 4. 39.7% 44.4% Respondents were asked to provide an assessment of their sales expectations in the coming year, as increasing sales expectations could provide an indication of future labor demand. Respondents were more optimistic about the upcoming year than they were with the past year, with more than 50 percent projecting sales to grow. Additionally, nearly 40 percent said sales would stay the same. Only 5 percent of respondents anticipate their company will experience a modest or sharp decline in the coming year. Sharp decline (-15% or more) 1. Don t know 4. More than half of responding businesses expect to see their sales increase in the coming year, while 40 percent expect them to stay about the same. Greater Kansas City Employer Survey 7

Employment Summary The survey asked respondents to provide estimates of their current, past and future employment levels. Together, this information provides an indication of the direction and size of future labor demand. Employment change from one year ago was very modest, but in most industries positive. Somewhat surprisingly, construction saw the most growth. According to the Bureau of Labor Statistics, construction has been losing jobs overall since 2008. This result shows that either the construction representatives in our sample are running counter to the national trend or perhaps more hopefully, that the construction industry is ready to begin hiring again. Responding businesses reported modest employment growth in most industries, but there were significant declines in manufacturing and public administration. Employment Change From One Year Ago Construction Transportation, Warehousing Advanced Manufacturing Transportation Logistics Health Care Health Care & Social Assistance Retail Trade Waste Management Arts, Recreation & Entertainment Mining Other Services Educational Services Information Agriculture Finance, Insurance & Real Estate Unclassified -184-195 -2-5 -7-52 75 75 68 56 51 20 15 14 4 3 0 0 0 133 207 Wholesale Trade Biosciences Social Assistance Professional Services Public Administration Manufacturing 298 8 Survey Results

BEYOND THE SURVEY: REGIONAL EMPLOYMENT DATA The five-year period from 2005 to 2010 was not particularly good in terms of employment in the Kansas City area. Tens of thousands of jobs were lost, particularly in the construction, manufacturing and information sectors. Only education and health services showed solid growth during this period. Employment Change in Kansas City 2005 2010 Education & Health Services 18% Professional Business Services Other Services Financial Leisure Wholesale Transportation & Utilities Retail Information - - - -7% -1 Manufacturing Construction/Mining -15% -1 Source: Bureau of Labor Statistics Greater Kansas City Employer Survey 9

Anticipated Employment Comparing current employment levels with those anticipated in the coming year to estimate the net change in the level of employment provides an optimistic outlook. While the net change in the level of employment in individual industries continues to be somewhat modest, there are fewer industries reporting zero or net negative levels of employment. The anticipated net positive gains in employment in many industries such as manufacturing and public administration are optimistic indications after recording net negative levels from the previous year. (The large increase in the level of employment in public administration is due to one employer that reported an increase of 600 positions in the coming year.) Most responding employers expect to do more hiring in the coming year. Employment Change in the Next Year Public Administration Finance, Insurance & Real Estate Transportation, Warehousing Health Care & Social Assistance Manufacturing Transportation Logistics Arts, Recreation & Entertainment Health Care Advanced Manufacturing Retail Trade Social Assistance Other Services Waste Management Construction Information Unclassified Mining Wholesale Trade Agriculture -32-37 -109 172 156 152 149 142 101 100 60 56 52 37 31 23 20 13 10 4 1 Educational Services Professional Services Biosciences 508 10 Survey Results

BEYOND THE SURVEY: INDUSTRY EMPLOYMENT CHANGE According to MARC s economic forecast, the broad services industry will lead the way in job creation over the next year and a half. The health, administrative support and professional/technical sectors will be among the biggest gainers in the services category. Sizable employment gains are not expected this year for other industries, but significant growth in most industries is projected for 2012. Services Government Change in Jobs by Industry 1,098 Manufacturing 1,107 204 3,135 Construction 2,394-2,238 Transportation, 1,388 Communications 603 & Public Utilities -776 Wholesale 900 904-238 Retail 544 1,685 1,994 Financial, Insurance 1,019 3,276 & Real Estate -1,884 Other 2,098-854 -2,555 110-834 -478 8,078 2012 (2011 Q4 2012 Q4) 2011 (2010 Q4 2011 Q4) 2010 (2009 Q4 2010 Q4) 20,034 15,833 Source: Mid-America Regional Council Greater Kansas City Employer Survey 11

Retirements Companies were asked if they anticipated members of their workforce retiring in the coming year. Only five industries did not have any companies that anticipated retirements in their workforce in the coming year. Overall, companies reporting anticipated retirements averaged approximately 12 percent, with 11 industries above the average, ranging from 40 percent in educational services to 12 percent in health care and social assistance. Overall, many factors may contribute to these results, including general economic conditions, the demographics of the industry workforce and changing levels of employment. Overall expected retirements are fairly low, with an average of only 12 percent of the respondents expecting retirements in the coming year. This tells us that in order to grow job openings, businesses will need to create new jobs. Anticipated Retirements in the Coming Year Educational Services Public Administration Mining Transportation Logistics Finance, Insurance & Real Estate Transportation & Warehousing Retail Trade Other Services Construction Health Care Total Health Care & Social Assistance Advanced Manufacturing Social Assistance Arts, Recreation & Entertainment Manufacturing Wholesale Trade Professional Services Waste Management Unclassified Information Agriculture Biosciences 24% 2 2 17% 15% 14% 1 1 1 1 1 1 1 9% 8% 7% 4% 4 12 Survey Results

BEYOND THE SURVEY: AN AGING POPULATION The percentage of the region s population aged 65 and over is expected to be more than 20 percent by 2030. This could help the long-term unemployment situation as jobs currently held by retirees become available. However, this is also a concern for employers, as they could see significant portions of their workforce retire, taking with them years of valuable experience. Percent of Population Aged 65 and Over 20. 16. 11.9% 12. 11.5% 11. 10. 1970 1980 1990 2000 2010 2020 2030 Source: Regional Economic Models, Inc. Greater Kansas City Employer Survey 13

Adding Employees The survey asked responding companies what method they used for adding employment. This question provides some insight into the dynamics of the local workforce, the preferred method of hiring and the replacement process for workers. The most preferred methods of adding employment across companies in all industries is hiring full- (39 percent) and part-time (35 percent) employees. Hiring contract or temporary employees represented only 10 percent of hiring methods, while only 3 percent of companies in the Kansas City metropolitan area recall workers from a lay-off list. Methods for Adding Employees Recalling workers from a lay-off list Hiring new full-time employees Hiring part-time employees Hiring contract employees 5% Using a temporary agency 5% Other 1 35% 39% Don t know/not sure The conventional method of straight hiring is the most commonly used method of adding employees. Only 10 percent of responding businesses use temporary agencies or contract workers to meet their employee needs. 14 Survey Results

Adding Skills Methods for Adding Skills On-the-job training In-house classroom training 27% Hire only workers already trained 1 Other 8% Vendor training 4% Community college courses Apprenticeships programs 4 4 The survey asked respondents to choose their preferred methods of adding skill to their company s workforce. (Respondents could choose all methods that apply.) For companies across all industries, the most common methods of adding skills were on-the-job training (43 percent) and in-house classroom training (27 percent). Hiring only workers that are already trained (12 percent) was the next most common method. Vocational training College degree (associate s degree or higher) Don t know/not sure Internships Most employers use on-the-job training or in-house classroom training when adding skills to their workforce. What is the role of the public sector in ensuring workers have the skills necessary to become successful employees before they start the job? Greater Kansas City Employer Survey 15

Job Openings Respondents were asked if they currently had any job openings. Information on current job openings provides workforce development systems valuable information on current labor demand and the ability to strategically allocate resources to programmatic and other responses. The average number of companies in all industries reporting job openings is slightly higher than one in five, at 22 percent. (The high proportion of companies in the unclassified category was largely attributed to a small number of survey completion in this industry.) Overall, 22 percent of responding businesses currently have job openings. All sectors except mining had at least one employer with current openings. Unclassified Arts, Recreation & Entertainment Health Care Health Care & Social Assistance Information Waste Management Transportation Logistics Finance, Insurance & Real Estate Social Assistance Total Retail Trade Construction Other Services Agriculture Public Administration Professional Services Biosciences Advanced Manufacturing Transportation & Warehousing Wholesale Trade Educational Services Manufacturing Mining Job Openings Available 36% 3 3 27% 25% 25% 2 2 2 2 2 18% 17% 16% 16% 1 1 1 1 1 10 16 Survey Results

BEYOND THE SURVEY: HELP WANTED The want-ads-by-sector data shows that professional and sales and office occupations made up the bulk (59 percent) of ads in the Kansas City region in May 2011. Management, business and service occupations accounted for 25 percent while the more manual occupations (construction, maintenance, production and transportation) combined for just 15 percent of the region s total ads. Help Wanted Ads by Sector May 2011 Service 1 Sales & Office 28% Professional & Related 3 Construction & Maintenance 6% Management & Business 14% Production & Transportation 9% Source: The Conference Board Greater Kansas City Employer Survey 17

Applicants Shortcomings Respondents were asked to assess the skills and attributes of recent applicants with the requirements of each job opening. For job openings in companies across all industries, the most common shortcomings were technical skills specific to the job (19 percent), poor work ethic (17 percent), and knowledge of the business or industry (14 percent). Almost one in three companies reported that recent applicants had no shortcomings (30 percent). A small number of recent applicants were reported to have all of the shortcomings (3 percent). Shortcomings of Recent Applicants None 3 Technical skills specific to the job 19% Poor work ethic 17% General knowledge of business or industry 14% Communication/interpersonal skills 5% Teamwork and collaboration 4% Lack of computer skills Understanding written & graphical information Critical thinking & problem-solving Willingness and ability to learn Basic math skills Writing skills All of the above Don t know/not sure 18% Employers seem mostly satisfied with the quality of recent applicants. A lack of technical skills and poor work ethic were the two shortcomings most often cited. 18 Survey Results

Soft Skills Required Soft Skills Required 79% Strong work ethic 7 Positive attitude Communication 67% Problem-solving 66% Team player 58% Ability to accept & learn from criticism 55% Working under pressure 5 Time management 47% Self-confidence 46% Flexibility/adaptability 37% The survey asked respondents what soft skills were required for each job opening. The term soft skills generally relates to a set of personal attributes that allows individuals to be effective and productive employees in the contemporary workplace. While the rank order does tell us which are most important from the employer s perspective, each of these soft skills is important and valuable in the work place. Flexibility/adaptability was selected least often, but it was still selected more than one-third of the time. This suggests that employers are looking for employees who possess many, if not all, of these skills. Don t know/not sure None Having a strong work ethic and the ability to work and communicate with others were the soft skills most often required by surveyed businesses. Greater Kansas City Employer Survey 19

Workplace Competencies Respondents to the survey were asked to assess the workplace competencies that were required for each job opening. Workplace competencies refer to a broad set of skills that can range from personal attributes such as work habits and interpersonal and team skills to computer literacy/skills and technical skills specific to the job. Many competencies were reported as important, which would seem to indicate that individuals in the contemporary workplace must possess multiple skills and personal attributes to be a well-rounded, productive employees. Workplace Competencies for Job Openings Work habits (Punctuality, hygiene, etc.) 25% Interpersonal and team skills 16% Managing time wisely 14% Technical skills specific to the job 14% Acquiring and using information 9% Computer literacy/skills 9% Leadership 6% Other 6% Don t know/not sure Similar to the soft skills chart on page 19, businesses valued strong work habits and the ability to work as a team as the most important competencies for current job openings. 20 Survey Results

Experience Required 4 Experience Required for Job Openings No experience 38% Less than 1 year 14% 1 3 years 3 4 10 years 1 More than 10 years For each job opening, respondents were asked to provide the appropriate amount of experience required. Approximately half (52 percent) of all job openings required one year or less experience, indicating that these are entry-level positions. Another one in three job openings (33 percent) across all industries require one to three years experience while another 14 percent require four to 10 years of experience. Only 1 percent of current job openings require 10 or more years of experience. Other Don t know/not sure Most current openings require lower levels of experience. Greater Kansas City Employer Survey 21

Education Required For each job opening, respondents were also asked to provide the appropriate amount of education required. Overall, job openings across all industries required lower levels of educational attainment, with over half (54 percent) requiring a high school diploma (40 percent) or less than high school (14 percent). One in four job openings across all industries require an associate s degree or higher (25 percent). Job-specific certifications account for 8 percent of education requirements. Education Required for Job Openings Less than high school 14% High school diploma Two-year associate s degree Four-year degree Graduate or professional degree Professional certification 8% 15% 4 Technical certification Special training certification Other None Don t Know 5% 6% Similar to the experience chart on page 21, more job openings are available to job seekers with lower levels of education (high school diploma or associate degrees) than higher levels. 22 Survey Results

BEYOND THE SURVEY: EDUCATION LEVELS While survey respondents indicated that most current job openings do not require high levels of education, national unemployment rates by education illustrate the importance of higher education. The annual unemployment rate for all workers was 8 percent, but it was 15 percent for those without a high school diploma. U.S. Unemployment Rate in 2010 by Educational Attainment Less than high school 15% High school diploma Some college, no degree Associate's degree Bachelor's degree 5% 7% 9% 1 Master's degree 4% Professional degree Doctoral degree All workers 8% Source: Bureau of Labor Statistics Greater Kansas City Employer Survey 23

Survey Summary The results of the survey provided some expected answers and a few surprising results. Overall, respondents to the survey demonstrated some optimism in their future sales and future hiring. Most industries expect to see some increases in hiring in the coming year. This is encouraging considering employment has been slow to recover from the 2007-2009 recession. The survey also shows the type of employees these companies are hiring. Most open positions require little to no experience. Furthermore, the levels of education needed for most of these positions are low, with more than half not requiring anything more than high school diploma. It is clear that according to the sample, businesses are looking for more entry-level workers whom they expect to train on-the-job. Of particular interest to the Regional Workforce Intelligence Network were the perceived shortcomings these companies found in the labor pool. When businesses were asked to list the shortcomings of recent applicants, 30 percent said none. A lack of technical skills, poor work ethic and general lack of knowledge about their given industry were the most common shortcomings, but none of them were selected more than 19 percent of the time. This shows two things. First, employers are largely satisfied with the labor pool available to them. This likely reflects the fact that with a high unemployment rate in the region, businesses have been able to select employees from a more talented labor pool as higher qualified workers accept lower-skilled jobs just to earn a paycheck. As the economy improves and the unemployment rate drops, it is likely that these shortcomings will become more pronounced. Secondly, there is not one overwhelming shortcoming that the region can focus on when preparing the future workforce. This subject deserves more attention so the region can focus its workforce preparedness efforts most efficiently. 24 Survey Results

EMERGING INDUSTRIES Previous and ongoing labor market analyses have identified four sectors that offer a competitive advantage and the promise of economic growth for the Kansas City region. Advanced Manufacturing Emerging Industries Advanced manufacturing is primarily the use of high-tech techniques or equipment in the use of manufacturing products. Often these jobs will require specific technical or computer skills in addition to more general manufacturing skills. Health Care Health care is one of the few sectors that saw employment gains during the recession. These jobs involve all aspects of improving human health. Demand in the sector is already high, but as the nation continues to age, demand will grow higher. Biosciences Bioscience jobs deal primarily with researching disease or otherwise improving animal, plant or human health. Within biosciences, the Kansas City region has developed a strong reputation for focusing on animal health. Transportation Logistics Transportation logistics is the efficient movement of goods. This task has increased in complexity as the economy has gone global. With its central location and its role as a rail and trucking center, Kansas City plays an important and growing role in this industry. Greater Kansas City Employer Survey 25

EMERGING INDUSTRIES Advanced Manufacturing Companies in the advanced manufacturing industry experienced a net positive employment change (+133 jobs) from the previous year. Employment in the advanced manufacturing industry is expecting another net gain next year (+60 jobs). Approximately one in 10 advanced manufacturing companies (11 percent) anticipate retirements. Company Sales History Increased sharply (15% or more) 6% Increased modestly (3 to 14%) Stayed about the same (- to ) 2 Declined modestly (by 4% to 14%) 17% 8% Declined sharply (15% or more) 7% 29% 3 34% 4 The advanced manufacturing industry experienced a less positive sales performance. With nearly one in three companies (30 percent) experiencing a modest or sharp decline in sales. Don't know 6% Advanced Manufacturing All Industries 26 Survey Results

Advanced Manufacturing Company Sales Expectations Increased sharply (15% or more) Increased modestly (3 to 14%) Stayed about the same (- to ) Declined modestly (4% to 14%) Declined sharply (15% or more) 6% 4% 37% 4 44% 54% Generally, companies in the emerging industries in the Kansas City metropolitan area are optimistic about their sales performance in the coming year. A little more than half (54 percent) of companies in the advanced manufacturing industry anticipate that sales in the coming year will stay about the same, while another 39 percent expect sales to increase modestly or sharply. Don't know 4% Advanced Manufacturing All Industries Overall, advanced manufacturing employers in the survey tended to be more stable than all industries combined in terms of annual sales in both the past year and the upcoming year. Greater Kansas City Employer Survey 27

Advanced Manufacturing The most preferred methods of adding employment across companies in all industries is hiring full- (39 percent) and part-time (35 percent) employees. Likewise, it is also the most common or preferred method for companies in the emerging industries. Companies in the advanced manufacturing industry cited hiring full-time employees at 38 percent and hiring part-time employees at 25 percent. Recalling workers from a lay-off list Hiring new full-time employees Hiring part-time employees Hiring contract employees Using a temporary agency Don t know/not sure Methods for Adding Employment Other 4% 5% 5% 6% 8% 1 Advanced Manufacturing 16% All Industries 25% 35% 38% 39% Advanced manufacturers are more likely to use temporary agencies when adding employees and use on-the-job training when training those employees. 28 Survey Results

Advanced Manufacturing Methods for Adding Skills On-the-job training In-house classroom training 2 27% Hire only workers already trained 9% 1 Other 8% Vendor training 4% Community college courses Apprenticeship programs Vocational training 4 6 Companies in the emerging industries provided a mixed picture of the preferred methods of adding skills to their respective workforces. In the advanced manufacturing industry, more than six out of 10 companies (61 percent) use on-the-job training, with in-house classroom training (21 percent) and hiring only workers that are already trained (9 percent) as the next most preferred methods. College degree (associate's degree or higher) Don t know/not sure Internships 4% Advanced Manufacturing All Industries Greater Kansas City Employer Survey 29

Advanced Manufacturing For each job opening, respondents were asked to provide the amount of experience required. In the advanced manufacturing industry, only 25 percent of job openings require a year or less of experience with 42 percent requiring one to three years and another 25 percent between four and 10 years. No experience Less than 1 year 1 3 years Experience Required 17% 8% 14% 3 38% 4 4 10 years 1 25% More than 10 years Other Don t know/not sure 8% Advanced Manufacturing All Industries Advanced manufacturing requires more experience and education than industries overall. Half of the open positions require a fouryear degree. 30 Survey Results

Advanced Manufacturing Less than high school High school diploma Two-year associate's degree Four-year degree Graduate or professional degree Professional certification Technical certification Special training certification Other Education Required 14% 17% 8% 8% 15% 5% 4 5 For each job opening, respondents were asked to provide the amount of education required. One in four job openings (25 percent) across all industries requires an associate degree or higher. The results of the survey demonstrate the higher educational attainment and technical and professional certification requirements of job openings in advanced manufacturing. Nearly six out of 10 job openings (58 percent) in advanced manufacturing require an associate s degree or higher. None 6% 25% Don t know Advanced Manufacturing All Industries Greater Kansas City Employer Survey 31

EMERGING INDUSTRIES Biosciences Companies in the biosciences industry experienced a very modest net negative change in employment (-5 jobs). Next year s projected net decrease in the biosciences industry (-109 jobs) is much more significant. No companies in the biosciences industry anticipated retirements in the coming year. 13 percent of companies reported current job openings. Increased sharply (15% or more) Increased modestly (3 to 14%) Stayed about the same (- to ) Declined modestly (by 4% to 14%) Declined sharply (15% or more) Don't know Sales History 1 6% 2 1 17% 7% 7% 6% Biosciences 3 All Industries 34% 47% Almost half (47 percent) of companies in the biosciences industry experienced sales that stayed about the same while more than one in three companies (33 percent) experienced sales that increased modestly or sharply. 32 Survey Results

Biosciences Increased sharply (15% or more) Increased modestly (3 to 14%) Sales Expectations 7% 6% 37% 44% In the biosciences industry, nearly half (47 percent) of respondents expect sales in the coming year to stay about the same while another 44 percent expect sales to increase modestly or sharply. Stayed about the same (- to ) 4 47% Declined modestly (4% to 14%) 4% Declined sharply (15% or more) Don't know 4% 7% Biosciences All Industries Biosciences appear to be a fairly stable industry in terms of sales. Nearly half (47 percent) of businesses said their annual sales stayed about the same last year and the same number expect their sales to remain about the same next year. Greater Kansas City Employer Survey 33

Biosciences In the biosciences industry, companies responding to the survey cited hiring full-time (39 percent) and part-time (30 percent) employees as the preferred methods for adding employment. Recalling workers from a lay-off list Hiring new full-time employees Hiring part-time employees Methods for Adding Employment 3 35% 39% 39% Hiring contract employees Using a temporary agency Other Don t know/not sure 4% 5% 6% 5% 7% 1 1 Biosciences All Industries There does not appear to be much difference between the biosciences industry and all industries in general in terms of adding employees and skills. Bioscience firms are more likely to use contract employees and less likely to rely on on-the-job training. 34 Survey Results

Biosciences On-the-job training In-house classroom training Hire only workers already trained Methods for Adding Skills 1 1 2 27% 35% 4 In the biosciences industry, 35 percent of companies cited on-the-job training as the most common method of adding skills followed by in-house classroom training (21 percent) and hiring only workers already trained (12 percent). Other 9% 8% Vendor training 4% Community college courses Apprenticeship programs Vocational training College degree (associate's degree or higher) 5% 5% Don t know/not sure Internships Biosciences All Industries Greater Kansas City Employer Survey 35

Biosciences In the biosciences industry, one out of four jobs require less than 1 year, half require one to three years and another 25 percent require four to 10 years of experience. No experience Experience Required 38% Less than 1 year 14% 25% 1 3 years 3 5 4 10 years 1 25% More than 10 years Other Don t know/not sure Biosciences All Industries As expected, the bioscience firms rely more heavily on those with higher levels of education and experience in filling open positions. 36 Survey Results

Biosciences Less than high school High school diploma Two-year associate's degree Four-year degree Graduate or professional degree Professional certification Education Required 8% 14% 15% 4 75% The results of the survey also demonstrate the higher educational attainment and technical and professional certification requirements of job openings in the emerging industries of advanced manufacturing and biosciences. In the biosciences industry, 75 percent of job openings require a four-year or professional/ graduate degree. Technical certification Special training certification Other 5% 25% None Don t know 6% Biosciences All Industries Greater Kansas City Employer Survey 37

EMERGING INDUSTRIES Transportation Logistics Companies in the transportation logistics industry experienced a net positive employment change (+75 jobs) and projected an increase in the next year (+142 jobs). One in five companies (20 percent) in the transportation logistics industry anticipate retirements in the coming year. Approximately one in four companies in the transportation logistics industry reported job openings. Increased sharply (15% or more) Increased modestly (3 to 14%) Stayed about the same (- to ) Declined modestly (by 4% to 14%) Declined sharply (15% or more) Don't know Sales History 5% 6% 2 17% 1 7% 8% 6% Transportation Logistics All Industries 28% 3 3 34% More than one in three companies experienced sales that increased sharply (5 percent) or modestly (30 percent). Another 28 percent had sales that stayed about the same. 38 Survey Results

Transportation Logistics Increased sharply (15% or more) Increased modestly (3 to 14%) Sales Expectations 5% 6% 44% 58% Companies in the transportation logistics industry were optimistic in the coming year as 63 percent anticipated sales would increase. Stayed about the same (- to ) 2 4 Declined modestly (4% to 14%) Declined sharply (15% or more) Don't know 5% 4% 4% 8% Transportation Logistics All Industries Greater Kansas City Employer Survey 39

Transportation Logistics Companies in the transportation logistics industry cited adding full-time (42 percent) and part-time (26 percent) employees as the preferred methods for adding employment. Methods for Adding Employment 8% Recalling workers from a lay-off list Hiring new full-time employees 39% 4 Hiring part-time employees 26% 35% Hiring contract employees Using a temporary agency 5% 5% 6% 8% Other 1 1 Don t know/not sure Transportation Logistics All Industries 40 Survey Results

Transportation Logistics Methods for Adding Skills On-the-job training In-house classroom training 7% Hire only workers already trained 1 27% 38% 4 4 For companies in the transportation logistics industry, the most preferred methods of adding skills to their workforce were on-the-job training (41 percent), in-house classroom training (38 percent) and hiring only workers already trained (7 percent). Other 7% 8% Vendor training 4% Community college courses Apprenticeship programs Vocational training College degree (associate's degree or higher) Don t know/not sure Internships Transportation Logistics All Industries Greater Kansas City Employer Survey 41

Transportation Logistics In the transportation logistics industry, 36 percent of job openings require less than one year of experience while 55 percent require one to three years of experience. No experience Experience Required 27% 38% High levels of experience or education are not currently required for most open positions in the transportation logistics industry. As this industry grows, jobs in transportation logistics could be highly sought after for those entering the work force for the first time. Less than 1 year 1 3 years 4 10 years More than 10 years Other Don t know/not sure 9% 14% 1 9% 3 55% Transportation Logistics All Industries 42 Survey Results

Transportation Logistics Less than high school Education Required 14% 36% In the transportation logistics industry, 91 percent of current job openings required a high school diploma or less. High school diploma 4 55% Two-year associate's degree 8% Four-year degree Graduate or professional degree Professional certification Technical certification Special training certification Other 5% 15% None Don t know 6% 9% Transportation Logistics All Industries Greater Kansas City Employer Survey 43

EMERGING INDUSTRIES Health Care Compared to the results for all industries, the health care industry experienced a similar sales performance in the past year. Nearly seven out of 10 companies (69 percent) across all industries reported sales that increased or stayed the same, while approximately two out of three health care companies (67 percent) reported similar sales results. Overall, more than twice as many health care companies experienced a positive sales performance as those that reported decline in their sales from the previous year. Increased sharply (15% or more) Increased modestly (3 to 14%) Stayed about the same (- to ) Declined modestly (by 4% to 14%) Declined sharply (15% or more) Don't know Sales History 4% 6% 1 17% 9% 7% 1 6% Health Care All Industries 29% 3 34% 34% Realized and expected revenues for the health care industry do not differ significantly from other industries. 44 Survey Results

Health Care Increased sharply (15% or more) Increased modestly (3 to 14%) Stayed about the same (- to ) Declined modestly (4% to 14%) Declined sharply (15% or more) Don't know Sales Expectations 4% 5% 4% 6% 7% 7% Health Care All Industries 37% 4 4 44% Generally, health care companies in the Kansas City region are optimistic about their sales performance in the coming year, with more than eight out of 10 companies (85 percent) anticipating sales to stay the same (37 percent), increase modestly (43 percent), or increase sharply (5 percent). The number of companies anticipating sales declines was 8 percent for health care companies and 6 percent for companies across the Kansas City region. Greater Kansas City Employer Survey 45

Health Care The most preferred methods of adding employment across companies in all industries is hiring full- (39 percent) and part-time (35 percent) employees. Likewise, it is also the most common or preferred method in the health care industry, with hiring full-time employees slightly higher than all industries at 44 percent, but slightly lower for hiring part-time employees at 32 percent. Methods for Adding Employment 6% Recalling workers from a lay-off list Hiring new full-time employees 39% 3 Hiring part-time employees 35% Hiring contract employees 5% 44% Using a temporary agency 5% Other 1 1 Don t know/not sure Health Care All Industries 46 Survey Results

Health Care Methods for Adding Skills 25% On-the-job training In-house classroom training 27% 3 4 The health care industry relies less on on-the-job training (25 percent) and more on the in-house classroom training (31 percent) and hiring more workers that are already trained (17 percent). Hire only workers already trained 1 17% Other 8% 1 Vendor training Community college courses Apprenticeship programs Vocational training 4% 6% College degree (associate's degree or higher) Don t know/not sure Internships 5% Health Care All Industries Greater Kansas City Employer Survey 47

Health Care Job openings in the health care industry require more experience, with only 46 percent requiring no experience or one year or less and half requiring at least one year of experience. No experience Less than 1 year Experience Required 1 14% 34% 38% 1 3 years 3 4 4 10 years 8% 1 More than 10 years Other The more technical nature of the health care industry requires candidates with some experience. One-third of current openings in health care require either an associate s degree or professional certification. Don t know/not sure 4% Health Care All Industries 48 Survey Results

Health Care Less than high school High school diploma Two-year associate's degree Four-year degree Graduate or professional degree Professional certification Technical certification Special training certification Other Education Required 14% 2 8% 1 15% 6% 1 1 4% 5% 26% 4 One in four job openings across all industries requires an associate s degree or higher (25 percent). The results of the survey also demonstrate the higher educational attainment and technical and professional certification requirements of job openings in the health care industry. More than one in five job openings (22 percent) require an associate s degree while 22 percent of job openings require a professional, technical or special training certification. None 8% 6% Don t know Health Care All Industries Greater Kansas City Employer Survey 49

Blue Springs Economic Development Corporation City of Bonner Springs City of Leavenworth Corporation for a Skilled Workforce Division of Workforce Development Economic Development Corporation of Kansas City, Mo. Full Employment Council Greater Kansas City Chamber of Commerce Green Impact Zone Hallmark Cards, Inc. Independence Economic Development Corporation Johnson County Community College Kansas City Area Development Council Kansas City Kansas Community College Kansas City, Mo., Public Library Kansas Department of Commerce Kansas Department of Labor KCP&L Leavenworth County Development Corporation Lee s Summit Economic Development Council Metropolitan Community College Institute for Workforce Innovation Regional Workforce Intelligence Network Members as of May 2011

Metropolitan Community Colleges Miami County Economic Development Corporation Mid-America Regional Council Missouri Department of Economic Development Missouri Economic Research and Information Center Missouri Enterprise Overland Park Economic Development Council Parkville Economic Development Council Partnership for Community Growth Platte County Economic Development Council PREP-KC Shawnee Economic Development Council KC SmartPort Southwest Johnson County Economic Development Council The Learning Group Unified Government of Wyandotte County / Kansas City, Kan. University of Central Missouri University of Kansas University of Missouri Kansas City s Henry W. Bloch School of Business and Public Administration Workforce Partnership

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