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issue 10 - july 2006 |
kathy.sweeney@state.mn.us |
In this Issue:
- Sectoral Strategies and Added Resources for Workforce Development
- Plan to Attend Annual Summer Meeting of the MWCA in August
- Three Years Later: An Update on the Governor’s Manufacturing Roundtables
- Ramsey County Employs Sectoral Strategy for Workforce Development
- News Note: Higher Wages Paid in Manufacturing Sector
- Manufacturing Industry Resources Online
- Gov. Pawlenty Appoints Nine to Governor’s Workforce Development Council
- Kudos
Sectoral Strategies and Added Resources for Workforce Development
Many of those involved in workforce and economic development have indicated that they would like to better understand what a sectoral approach to development is and why it’s beneficial, so we've chosen to focus on this topic. Plus, we’re proud to announce that we've added new workforce development industry specialists at DEED to help WIBs with the information they need so they can successfully implement sectoral strategies within their own areas.
I sat down with Kathy Sweeney, DEED, to ask a few basic questions about sectoral strategies. Sweeney, along with Erik Aamoth, DEED, and Inez Wildwood, Workforce Investment Board (WIB), attended the National Governor’s Association Meeting “Accelerating State Adoption of Sector Strategies,” May 11-12 in Washington, D.C.
Q: What are sectoral strategies?
A: They are regional partnerships bringing together local education and training, businesses and key resources to support the workforce needs of an industry. They focus intensively on a specific key industry and work with more than one business at a time to identify solutions for many businesses in the industry.
Q: Do we have any sectoral strategies under way already in Minnesota?
A: At least seven partnerships that span similar businesses in industry areas are underway currently. View the chart: Minnesota Sectoral Start Ups.
Q: What can local WIBs do to support sectoral strategies in their economic regions?
A: Identifying the key industries in an economic area is critical to providing “demand driven” workforce services. Analysts in DEED’s Labor Market Information Office have been working with WIBs to identify key industries in economic regions. Local plans were due to DEED on May 31. Identifying key industries in an economic area is also the foundation of WIB plans for business services (also were due to DEED on May 31).
Q: What should happen once key industries are selected?
A: Occupations within these industries are then identified. The WIBs can use variables, such as wage rates, to more narrowly define occupations in which workforce development should be considered.
Sweeney also listed the key strengths of Minnesota to implement sectoral strategies in the state.
Sectoral Work: Strengths of Minnesota
- DEED, because it is a merged state agency with Economic Development and Workforce Development functions, is in a strong position to assist with the adoption of sectoral strategies.
- The State of Minnesota has an investment strategy that helps fund the Minnesota Job Skills Partnership and Adult Basic Education programs in sectoral start-ups.
- The state features business services, business and community development staff members, regional administrators, regional conveners, and regional Minnesota State Colleges and Universities (MnSCU) system representatives to assist local leaders with the adoption of the sectoral strategy.
- Regional labor market analysts are linked with the Analysis and Evaluation Office within DEED, strengthening the ability to implement sectoral strategies.
- Some WIBs have led regional sectoral efforts (St. Cloud, Southeast Minnesota, Ramsey County).
- Centers of Excellence are being launched at MnSCU.
- Families Forward program, funded by McKnight Foundation, developed local and regional sectoral models.
- Strong community-based organizations and philanthropic community organizations serve as vital resources.
New Industry Specialists for Workforce Development at DEED
The Department of Employment and Economic Development’s (DEED’s) newest industry specialists were named by Business Services Director Erik Aamoth recently. They are: Jeff Nelson, Financial Services industry; Anna Christopherson, Transportation industry; and Susan Speetzen, Health Care industry.
They will complement the work already being done by Business and Community Development (BCD) experts in these sectors, specifically focusing on the workforce development side.
- Nelson is assigned to help meet the workforce needs for the financial services industry and will also assist with economic development/financing projects and venture capital projects. Now housed at the First National Bank Building in St. Paul, he worked at Thomson-West (West Publishing) for 15 years before coming to DEED. He held a variety of positions there, ranging from legal customer support to customer and employee training to product manager for Westlaw tax products. Most recently, as West's product development and marketing manager for financial services, Nelson identified customer's information needs, developed products to meet those needs, and marketed those products to the various sectors of the financial services industry. He can be contacted at jeff.m.nelson@state.mn.us
- Christopherson, who is based at the South Hennepin County WorkForce Center in Bloomington, is focusing on workforce development for the railroad and trucking sectors of the economy. Her additional responsibilities will include focusing on air transportation, shippers, and ports. In July 2005 former DEED Commissioner Matt Kramer asked her to begin working as a liaison to the department for Minnesota’s railroads, a job that led to the current position. Prior to that, she was a business services specialist who worked on the pilot program in Minneapolis for the Financial Services industry and had been a placement coordinator for DEED’s Vocational Rehabilitation unit. Christopherson can be contacted at anna.christopherson@state.mn.us
- Speetzen, who rejoined DEED after a brief stint in the private sector, is now involved in workforce development to meet the needs of the long-term care industry, hospitals and clinics. Also a trained life coach, she works out of the WorkForce Center in West St. Paul, and has been employed at DEED for two years. Prior to taking this position, Speetzen led the Business Services Pilot in Ramsey County. The Pilot team of six spent a year creating the Business Services unit “new way of doing business” by calling on health-care providers, learning what their problems were, and trying to help them come up with solutions. Before working at DEED, she spent 10 years doing technical recruiting and career counseling in the health care and financial industries. Her experience also includes marketing and technical sales. Speetzen can be contacted at susan.speetzen@state.mn.us
We know they will make a positive impact on our ability to better meet the workforce development needs of these industries.
They join Debra Bultnick who is from the Minnesota Precision Manufacturing Association and is assigned to work with DEED. She is now developing strategies to fill workforce needs of the metal precision manufacturing industry.
DEED’s economic development and program specialists, who are part of the Business and Community Development Division, focus on expansion and start-up of businesses in key industry sectors. They include Diane Knutson, (manufacturing), Gene Goddard (biosciences), Dentley Haugesag (wood products), Steve Sussman (printing and publishing), and Helen Conde (customer contact centers.)
We welcome the addition of staff focused on business customers. The state is well-served by staff members devoted to important industry sectors; we look forward to collaborative efforts among all of them.
In the Business Service unit, workforce development industry specialists will be working with Workforce Investment Boards to provide industry information and assist WIBs in addressing their workforce development needs in key industries. It will be up to each WIB to determine how best they can use these resources, and they are free to develop their own customized communication strategies between themselves and the industry specialists.
From the MWCA ChairPlan to Attend Annual Summer Meeting of the MWCA in August
By Trish Taylor
Our Workforce Investment Board (WIB) has been planning for the new business year that begins on July 1. We are focusing our vision, mission and goals for the year on the integration of workforce development, economic development and education in the 11-county region to support the economic growth of the region.
This past year the WIB Marketing Membership and Communications Committee instituted an Economic Development Ad Hoc Committee to lead the WIB’s efforts to collaborate with local economic developers across the region.
Our marketing plan for the year ahead includes town hall meetings, industry roundtables, job fairs and business expos, business tours, business summits, surveys and regional collaboration meetings with representatives from K-14 education, the Minnesota State Colleges and Universities system (MnSCU) and Adult Education.
I will resume my tour of the state and visits with local WIBs in September and look forward to the annual summer meeting of the Minnesota Workforce Council Association (MWCA) August 8-10 in Duluth.
The summer meeting is open to all WIB members and to our local elected officials; the meeting provides an excellent opportunity to exchange best practices and to plan joint activities for the year ahead. If you need information on the meeting please contact MWCA Director Anne Olson at aolson@mncounties.org or 651-224-3344. I look forward to seeing you in Duluth in August!
Have a safe and wonderful summer.
Manufacturing MattersThree Years Later:
An Update on the Governor’s Manufacturing Roundtables
On October 2, 2003, the Minnesota Department of Employment and Economic Development (DEED), at the urging of Governor Tim Pawlenty, convened a statewide series of roundtable discussions with Minnesota manufacturers. Those discussions helped us identify seven main areas of concern among manufacturers, and I believe we've made significant progress in addressing all of them. We still have work to do, but we’re moving in the right direction. Here’s a brief summary of the main areas of concern and updates on what we've accomplished.
Rules, Regulations and Permitting
Manufacturers worry about the cost and inconvenience of the state’s permitting process and the regulatory minefield presented by pollution control issues. In response, we sought to achieve better balance between environmental protection and manufacturers’ need to expand facilities within a reasonable time. Positively Minnesota BizNice, a business-friendly oversight and tracking group, has reduced the time required for processing building permits, facilitated resolutions in several control and correction actions, and created a fast-track process for expansion and building projects. For information on permitting or regulation call 1-888-234-5520.
Education and Training
Minnesota’s higher education system must provide training that matches the needs of the manufacturing sector. A $10 million appropriation to the Minnesota State Colleges and Universities (MNSCU) led to the creation of four Centers of Excellence, at the Minnesota State University Mankato and Bemidji State University. Two of these centers have focused their efforts on manufacturing, the other two on health care and information technology. In addition, the Governor’s Workforce Development Council and DEED used an $850,000 incentive grant from U.S. Department of Labor to aid advanced manufacturing-related education in K-12 classrooms throughout the state.
Skyrocketing Health Care Costs
Manufacturers are deeply concerned about the escalating cost of health care benefits for employees. This is not a Minnesota issue; it’s a national crisis that is far from resolution. Nevertheless, we have taken a few steps. We’re a national leader in lowering the cost of prescription drugs through the online purchase of name-brand pharmaceuticals from Canada and the United Kingdom. Minnesota also allows the formation of association health care plans, which in theory can pool the purchasing power of small businesses through their associations. But the theory doesn't always hold, and there’s clearly more work to be done.
Improve Transportation
The metro area needs more and better roads, freeways are getting old and congestion is growing worse. Meanwhile, rural areas of our state are challenged by deteriorating road systems. Although this complex and costly infrastructure issue will be with us for the foreseeable future, there have been some investments that will help ease congestion, at least in the metro area. I-394 now has a toll lane to reduce congestion during rush hours. The Hiawatha light-rail line has rider-ship that is much higher than expected, and the Legislature has set aside funds to open the Northstar commuter rail line from Big Lake to the west metro park-and-rides and into downtown Minneapolis. In addition, ongoing bridge repair and new crossings have improved some areas.
Taxation
The roundtable discussions revealed three tax issues of particular concern to manufacturers: 1) the apportionment formula for state corporate taxation, 2) the joint and several liability laws, and 3) the sales tax on capital equipment purchases. I'm happy to say that we’re making some progress in all three areas.
An apportionment change in state corporate taxation – from a three factor (sales revenue, property taxes and payroll) to a single sales revenue factor – will reduce manufacturers’ tax increases when adding jobs and investing in better facilities. An eight-year phase-in begins in 2007.
We've changed joint and several liability laws to protect OEM suppliers from full legal responsibility in product liability cases. In the past, businesses with just 10 percent liability could get stuck with 100 percent of the liability cost. Now businesses must have at least 50 percent liability to be open to burdensome liability claims. This change should result in a decrease in manufacturers’ liability insurance.
Manufacturers would love to see the state sales tax on capital equipment purchases exempt at the point of purchase. The governor’s senior tax advisors are meeting this summer with the Minnesota Manufacturers Coalition to discuss this issue, and we’re hoping to bring recommendations before the 2007 Legislature.
State Manufacturing Advocate
Three months after the manufacturing roundtables, Gov. Pawlenty appointed Diane Knutson as the advocate for manufacturing in Minnesota, mirroring the post of assistant secretary of manufacturing and services at the U.S. Department of Commerce. DEED also added a contract position with MPMA for a manufacturing industry liaison, Debra Bultnick.
The Image of Manufacturing
Along with numerous partners around the state, we've worked very hard to raise the awareness of the importance of manufacturing. DEED published a manufacturing industry fact sheet and website information about Manufacturing Week in Minnesota. DEED and the Governor’s Workforce Development Council contributed $50,000 to support the BattleBots demos at the State Fair. The Minnesota Education Coalition is coordinating the marketing of manufacturing education opportunities in Minnesota, and more than 15 technical schools are spreading the word about educational and career opportunities in manufacturing. Finally, the Minnesota Manufacturers Coalition and DEED are exploring the potential to be a “Dream It - Do It” state with the coordination of the National Association of Manufacturers.
A version of this article was originally written for Precision Manufacturing, Journal of the Minnesota Precision Manufacturing Association, July/August issue.
Ramsey County Employs Sectoral Strategy for Workforce Development
By Kathy Engesser
Chair
Ramsey County Workforce Investment Board
The Ramsey County Workforce Investment Board (WIB) has taken the lead in implementing a sectoral strategy for workforce development. Already there have been several positive results, including the publication of sector newsletters focusing on key industries and emerging occupations, and the creation and support of the East Metro Health Careers Institute (EMHCI).
A metro-wide economic audit took place four years ago in which three high-growth and high-demand industries were identified: health care, advanced manufacturing and construction. Based on this information, the Ramsey County WIB decided to adopt a sectoral strategy for workforce development.
One of its first sectoral initiatives was helping to create the EMHCI, a partnership developed in 2000. While the health care industry has many openings for a wide variety of jobs, in 2000 the significant shortage of nurses was the main issue. The goal of EMHCI was to help the health care industry maximize its recruiting and retraining dollars. EMHCI proved successful in addressing the needs of the health care industry in the east metro Twin Cities area by providing hospitals with customized training, recruitment, and retention tactics for hospital workers. Career laddering was a successful method for improving job retention. Employees who remained on the job for a specified time were rewarded with promotions. After a second specified time, workers who met performance standards received additional promotional opportunities. This proved to be an effective method of retaining quality health care workers.
In sectoral work it’s important to ensure that workforce training is sufficiently flexible to meet the evolving needs of employers. One of the biggest current needs for health care industry workers is for training in English as a second language. Available training programs, as a result, have adapted to meet this need. While the name of the program (EMHCI) is no longer used, it continues to be a success story. Now occupational English skills are taught to workers through the continued collaboration of employers and training providers, benefiting Ramsey County hospitals.
Health care is but one of the sectors identified as a key industry. To keep the community (particularly career counselors and job seekers) aware of key industries and occupations, a sector newsletter was developed to provide information about high-growth industries. Each two-page newsletter features stories on the three high-growth industries and includes articles on emerging industries and occupations. A regular feature story highlights a particular occupation. Featured occupations range from those requiring a GED certificate to others requiring a graduate degree. These sector newsletters have received much praise from readers through e-mails and other forms of feedback. Published periodically, the newsletters are available at www.co.ramsey.mn.us/workforce/industrynewsletters.htm
The WIB’s evolving relationship with DEED has given us an opportunity to leverage DEED’s resources in several important ways, including:
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Ramsey County’s work with DEED business services specialists. Along with past Ramsey County WIB chairs, I have been a strong supporter of the state’s Business Services pilot project, which implemented a demand-driven approach to serve businesses. The pilot tested demand-driven business services in the health care industry in Ramsey County. (Pilots outside of Ramsey County served other industries.) The purpose of the pilot was to test a new way of doing business that enhances economic vitality through resolving workforce and growth-related issues for businesses. The Ramsey County WIB partnered with DEED to create a Business Services team that shifts the focus to listening to the needs of business and designing solutions for meeting those needs. The approach creates a demand-driven workforce system that enhances outcomes for job seekers and incumbent workers through closer links to employers.
- Ramsey County WIB worked with DEED’s Susan Speetzen, who led the Ramsey County Health Care pilot project. Speetzen worked with Karyn Berg, Workforce Solutions, to determine the needs of the health care industry. They also worked with Century College on a grant proposal to fund solutions. Speetzen now serves as DEED’s industry specialist for health care on the workforce development side of operations. She recently was chosen to participate in the Sector Skills Academy in 2006-2007 through the Aspen Institute Workforce Strategies Initiative. The first session was held in June 2006 in Maryland, and we are excited about the increased knowledge and expertise in sector strategies she will bring to our WIB and our partners. The Sector Skills Academy was launched by three partners: the Aspen Institute Workforce Strategies Initiative, the National Network of Sector Partners, and Public/Private Ventures.
- Ramsey County WIB works to maintain close ties with DEED and makes full use of sector information that can be provided by its staff members. For example, our WIB, Speetzen and DEED’s regional labor market analysts work closely together to support the Ramsey County WIB’s efforts in the health care industry. Kyle Uphoff, the analyst who formerly covered the metro area, initiated the production of specific reports for the health care industry to further our knowledge base and enable us to better formulate strategies. This effort has been expanded across the state. Rachel Hillman, DEED regional labor market analyst, recently produced reports for the WIB covering high-growth, high-pay industries and a list of occupations-in-demand by education requirements in Ramsey County. Hillman also provides input for the selection of occupations for the newsletter feature stories.
The Ramsey County WIB has found that the implementation of a sectoral strategy for our workforce development efforts has enabled us to be successful in meeting our goals. The approach enhances the information flow and working relationships with our partners in workforce development and ensures that the needs of both businesses and job seekers are met.
Higher Wages Paid in Manufacturing Sector
The average annual wage per manufacturing employee was $46,599 in 2003, 20 percent more than the average Minnesota private sector employee and an increase of 23 percent since 1998.
Manufacturing Industry Resources Online
Looking for more information regarding the manufacturing sector and workforce development? Here are resources that focus on the manufacturing sector that may assist you.
National Association of Manufacturers
The National Association of Manufacturers (NAM) produces a number of reports at:
www.nam.org/s_nam/sec.asp?CID=216&DID=214
Some NAM reports of interest include:
2005 Skills Gap Report
www.nam.org/s_nam/sec.asp?CID=202426&DID=235735
The Future Success of Small and Medium Manufacturers: Challenges and Policy Issues
www.nam.org/s_nam/bin.asp?CID=202515&DID=236457&DOC=FILE.PDF
Government Web Sites
The Census Bureau produces a variety of statistical information for specific industries including industry profiles, material costs, employment, value added manufacture and energy consumption:
www.census.gov/mcd/
DEED's Analysis and Evaluation Office has information on selected specific industries, global competitiveness and various business trends:
www.deed.state.mn.us/facts/aboutbusiness.htm
Gov. Pawlenty Appoints Nine to Governor’s Workforce Development Council
Governor Tim Pawlenty appointed Steven Ditschler and Jon Thompson to the Governor's Workforce Development Council (GWDC). He also reappointed Maureen "Mo" Amundson, Sharon Bredeson, Kathleen Carney, Don Gerdesmeier, Larry Mareck, Dr. Mary Nichols, Ph.D., and Terry Smith.
The GWDC coordinates the development, implementation, and evaluation of the statewide education and employment transitions system and Minnesota youth services programs. The council consists of 32 members, including 28 appointed by the governor.
Amundson, of Rochester, is an educational consultant to the Rochester Public Schools and Rochester Community and Technical College. She represents secondary or post-secondary vocational institutions on the GWDC. Amundson, who was initially appointed to the GWDC in February, is appointed to a full three-year term that expires on June 30, 2009.
Bredeson, of Minneapolis, is the founder, owner, and chief executive officer of Staff-Plus. She chairs the Minneapolis Private Industry Council's Dislocated Worker Program, and is the immediate past chair of the Greater Minneapolis Convention and Visitors Association. Bredeson, who has been a member of the GWDC since 2003, is reappointed as a representative of business to another three-year term that expires on June 30, 2009.
Carney, of Nevis, is the chief executive officer of Teamworks, Inc., in Park Rapids. Teamworks is a non-profit subsidiary of Midwest Minnesota Community Development Corporation that specializes in providing low-income, low-skilled individuals with good-paying jobs primarily in the area of manufacturing. Carney, who has been a member of the GWDC since 2003, is reappointed as a representative of community-based organizations to another three-year term that expires on June 30, 2009.
Ditschler, of Eagan, is the president of ProAct, Inc., a private, non-profit human services organization that provides a variety of services to people with disabilities and other barriers to employment. He is an active member of the Dakota-Scott Counties Workforce Investment Board, chair of the State Rehabilitation Council, and serves on the board of directors of the Minnesota Nonprofit Employers Workers' Compensation Fund. Ditschler replaces LaDonna Boyd as a representative of community-based organizations to complete a three-year term that expires on June 30, 2009.
Gerdesmeier, of Roseville, is a member of the Teamsters Union, administrator of the Teamsters Service Bureau, and its Joint Council 32 DRIVE representative. He is also a member of the Minnesota Job Skills Partnership Board, Workers' Compensation Advisory Board, Workers' Compensation Reinsurance Association, University of Minnesota Labor Education Advisory Committee, and the Hennepin County Sheriff's Department's Community Advisory Board. Gerdesmeier, who has been a member of the GWDC since 1996 and is currently vice-chair, is reappointed as a representative of labor to another three-year term that expires on June 30, 2009.
Mareck, of Albany, is the business representative for the Carpenters Union, and previously was the financial secretary of the St. Cloud Carpenters Union. He has been a member of the Carpenters Union #930 since 1971. Mareck is president of the St. Cloud Building and Construction Trades Council, serves on the executive board of the State Building and Construction Trades Council, and is a member of the Minnesota Job Skills Partnership Board. Mareck, who has been a member of the GWDC since 2000, is reappointed as a representative of labor to another three-year term that expires on June 30, 2009.
Nichols, of St. Paul, is the dean of the University of Minnesota's College of Continuing Education, and a professor of strategic management and organization at the Carlson School of Management. Nichols, who has been a member of the GWDC since 2003, is reappointed as a representative of post-secondary education to another three-year term that expires on June 30, 2009.
Smith, of Forest Lake, is a journeyman furniture refinisher and an in-home service technician and customer service representative with Marshall Field's. He has been a member of Teamsters Local 638 for 35 years. Smith is the mayor of Forest Lake, and previously served on its city council. He also served on the State Board of Technical Colleges, and was board president in 1995 during the merger that resulted in the Minnesota State Colleges and Universities (MnSCU) system. Smith, who has been a member of the GWDC since 2003, is reappointed as a representative of labor to another three-year term that expires on June 30, 2009.
Thompson, of Elk River, is the president and chief executive officer of Opportunity Partners in Minnetonka, a non-profit organization that provides personalized employment, housing and educational opportunities to individuals with developmental disabilities, brain injury, autism, and other special needs. He is an active member of the Association of Residential Resources in Minnesota, and the Minnesota Association of Community Rehabilitation Organizations. Thompson replaces John Molinaro on the GWDC as a representative of community-based organizations to complete a three-year term that expires on June 30, 2008.
Minnesota to Receive Nearly $700,000 for Exceeding Performance Levels
Governor’s Workforce Development Council (GWDC) Executive Director Brenda Norman announced that for the third consecutive year, Minnesota has exceeded performance levels for outcomes in the Youth, Adult and Dislocated Worker Programs of WIA Title One B, the Adult Literacy Program of WIA Title Two and the Carl Perkins Funds. The announcement came in an e-mail to council members and partners:
“The goals included placement after training, retention after employment and improvement in literacy, among other measures. Congratulations, partners!
“Twenty three states have qualified to receive a share of the $16.5 million available for incentive grant funds, contributed by the U.S. Department of Education. This year, Minnesota's award totals $699,205.”
GWDC convened the partners in May 2006 to determine the focus for the grant initiative, identify a distribution process, and submit the application to the U.S. Department of Labor on behalf of the state.
The Program Partners submitted a proposal for use of the $699,205 in Incentive Grant Funds and it has been approved. The funds will be invested in a data collection system for the Adult Basic Education system and to advance sector skills initiatives in Minnesota.
Key Contacts:
Kathy Sweeney Stephen Larson Connie Ireland |
Rick Roy Dave Niermann Jim Wrobleski Joan Danielson |
We Need Your Feedback
We're trying to make this newsletter as timely and useful as we possibly can and, to accomplish that goal, we need to know what you want to know. We need and welcome any feedback you can offer – especially concerning topics of broad statewide or regional interest to the WIBs and all other partners. To register your questions, comments, complaints and suggestions, simply send an e-mail to Kathy.Sweeney@state.mn.us. We'll do our best to address your concerns directly and use your feedback to help us develop articles for future editions of the newsletter.
Thanks.