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Workforce Review and Analysis:
         Manufacturing Sector
                                  February 2013




                   Houston Community College
                Office of Workforce Instruction
        In Partnership with the HCC Foundation
Table of Contents

INTRODUCTION ............................................................................................................................................. 3
   The Manufacturing Sector ........................................................................................................................ 4
   Purpose of this Report ............................................................................................................................... 5
SUMMARY OF LITERATURE REVIEW ............................................................................................................. 5
   Manufacturing Industry: Historical Trends ............................................................................................... 6
TRENDS IN MANUFACTURING ...................................................................................................................... 7
   Manufacturing Outlook: Texas and Houston ............................................................................................ 7
   Training Requirements ............................................................................................................................ 10
   Embedding Industry Certifications into College Workforce Training Programs ..................................... 11
HOUSTON COMMUNITY COLLEGE WORKFORCE INSTRUCTION: ............................................................... 13
WHERE ARE WE? ......................................................................................................................................... 13
EMPLOYER ENGAGEMENT AND SKILLS SUMMIT ........................................................................................ 14
   Additional Data Collection and Analysis ................................................................................................. 16
RECOMMENDATIONS FOR FUTURE ACTION............................................................................................... 16
   Career and Work Readiness Essential for Manufacturing Sector ........................................................... 17
   Industry Certifications ............................................................................................................................. 17
   Equipment and Facilities ......................................................................................................................... 19
   Accreditations and Professional Development ....................................................................................... 20
   Workforce Dual Credit Partnerships and Career Pathways .................................................................... 20
   Grants and Employer Partnerships ......................................................................................................... 21
SUMMARY ................................................................................................................................................... 21




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INTRODUCTION

In mid-2011, the Instructional Leadership department of Houston               82% of manufacturers
Community College (HCC) initiated a review of the workforce needs in the      report a moderate-to-
                                                                              serious skills gap in skilled
Greater Houston Area in an effort to review and analyze the alignment
                                                                              production
and relevancy of workforce training programs offered by the college.

                                                                              69% of manufacturers
Since one of the key initiatives in HCC’s 2012-2015 Strategic Plan is to      expect the skills shortage in
respond to the needs of business and industry for skilled workers, HCC        skilled production to worsen
                                                                              in the next 3-5 years
decided that a comprehensive review of our workforce programs was
needed to determine the currency of the college’s programs related to
                                                                              74% of manufacturers
the changes that have taken place in the local, regional, and national        report that this skills gap
economy during the last 10 to 15 years. The research imperative is to         has negatively impacted
                                                                              their company’s ability to
ensure that we develop and follow a strategic blueprint, aligned with         expand operations
HCC’S overall strategic plan, to sustain and direct HCC workforce program
development that is responsive to both the Greater Houston Area’s and         5% of all jobs in
                                                                              manufacturing are unfilled
the state’s labor market needs. The overall objective will be to move from
                                                                              due to lack of qualified
analysis to transformation of our workforce programs that will position       workers
HCC as the leading institution in workforce and economic development.

Throughout the assessment process, the seven driving questions of the review are:
   1. What are the major workforce trends and labor market statistics for the Greater
       Houston Area by industry cluster?
   2. Is the current program content reflective of the current industry occupation skills,
       knowledge, and industry certification requirements relevant to employers when making
       hiring decisions?
   3. Is the right mix of workforce programs offered at the right campuses based on proximity
       of industry sectors using labor market and industry data?
   4. What is the capacity of the programs (facilities, equipment, and faculty expertise and
       resources)?
   5. Are there programs with potential for growth?


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6. How can HCC increase the engagement of business and industry as active partners in
       the strategic planning of its workforce programs?
   7. How does the organizational structure in place support innovation, industry
       engagement, constant evaluation, and growth?


The following analysis, based on the answers to the above questions, identifies the gaps
between what is currently offered at HCC, the capacity and structure in place, and then
determine specific strategies for enhancement of the programs as needed.

Our first step was to determine the high-growth, high-demand industry sectors in the Greater
Houston Area. They are: Energy, Manufacturing, and Trades; Transportation and Logistics;
Health Care; Information Technology; Business and Personal Services; Public Safety; and
Biotechnology. HCC has now started to conduct focused strategic workforce development
forums called “Workforce Skills Summits,” each focused on a particular industry sector. In
these forums, we engaged economic development leaders and employers in a discussion about
the workforce skills and knowledge that employers seek when making hiring decisions.



The Manufacturing Sector
What remains a lasting perception in the manufacturing industry is that machine and welding
jobs were labeled “blue collar” work and historically have been associated with low wages and
low job growth opportunities. The former “blue collar” work in this sector has been
transformed due to the influence of technology, the complexity of products, faster production
cycles, increased demand for customization, and distribution requirements of products
manufactured.

The new manufacturing jobs now require a higher-skilled, professional technician who has the
ability to think critically and solve quality issues during production. The traditional view of
“blue collar workers” has transitioned to the need for a variety of professional technicians
trained in multiple aspects of production and expected to actively engage in higher work-
applied reasoning, in a diversified work environment, with a demand for quicker production


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outcomes. These professional technical jobs may be considered mid-level skill jobs, and
increasingly wages for technicians holding these jobs outperform those of individuals with four-
year degrees (Carnavale, 2009).

The Greater Houston Partnership lists Houston as the country's #1 city for manufacturing plants
and jobs. Yet, manufacturing employers are continuously challenged to find qualified skilled
workers – even in times of high unemployment – mostly because there is a skills gap between
the available workforce and the skills sets they must have to be productive in today’s
manufacturing industry workplace. Recognizing that access to qualified individuals with high-
quality education, training, and skills set is critical to manufacturers’ capacity for innovation and
business success, HCC held its first “ Manufacturing Skills Summit” on September 28, 2012.


Purpose of this Report
This report is a summary of the literature review research related to manufacturing as well as
the results and feedback learned during the summit from the panelists and employers who
participated in the summit and who also completed a brief survey during the event. The report
includes a brief section regarding the most recognized manufacturing workforce needs research
of the past five years, a review of the current HCC manufacturing-related programs offered, a
summary of the Skills Summit outcomes, and lastly, recommendations for future action. A
similar report format will follow each of the Skills Summit events.



SUMMARY OF LITERATURE REVIEW

In spite of the recent recession, Houston’s economy has maintained a steady growth (Forbes, L.,
2010). The energy, health care, oil and gas, and technology sectors – combined with strong
transportation and distribution infrastructure and top educational institutions – have helped
Houston weather the recession better than most cities. Moreover, these factors have
influenced the increased immigration of people from other U.S. cities to Houston seeking jobs,
a high standard of living, and opportunities (University of Texas, 2011; Scheneider, A., 2012).




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The Greater Houston Partnership lists Houston as the #1
manufacturing city in the U.S. Employers in this sector,         “Manufacturers in the United
                                                                 States have a talent problem.
however, continue to express that the most difficult             Just as manufacturing grows
challenge they face is finding qualified skilled workers for     more complex and innovation
                                                                 drives the industry, companies
the number of unfilled vacancies they currently hold.            can no longer find workers with
                                                                 the skills today’s jobs demand.
This challenge – to recruit qualified workers in                 This deficit in talent available
                                                                 to manufacturers poses a direct
manufacturing – holds as true across the U.S. as it does in
                                                                 threat to the future prosperity
Houston. The “2011 Skills Gap Report” by the National            and security of the United
Manufacturing Institute (NMI) in collaboration with              States.”

Deloitte Consulting LLP, substantiated the talent challenge        -- Roadmap to Education Reform for
                                                                           Manufacturing, NIM (2012).
that U.S. manufacturers face and warns of even greater
skilled worker shortages in the near future.


Manufacturing Industry: Historical Trends

Though the industry is experiencing an upturn in demand, many Americans still remember the
large number of jobs lost by the manufacturing sector in the 80’s and 90’s. Employers, faced
with increased labor costs driven by union contracts, moved production overseas seeking
higher production, union-free environments, and lower labor costs. In addition, technology
applications in manufacturing also implied fewer people were needed in production. The flat
world economy and the subsequent increased global competition also impacted American
exports as computer, textile, and fabric industries faced increased competition from foreign
markets (U.S. Bureau of Labor Statistics, 2000). As a result, many American jobs were lost to
China and India.

But the world has significantly changed between 1980 and 2010. Thirty years later, a large
number of baby boomers are at retirement age and technology advances have changed the
manufacturing process, mostly resulting in increased productivity (Hurt, 2012). Local and global
demand for products is now highly influenced by complex logistics and distribution algorithms
that have led to the expectation of a faster and individualized consumer experience. Wages


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have increased globally as have the cost of transporting goods (due to oil and gas prices),
changing the competitive imperatives for this sector.

Respondents to the 2011 NMI Skills Gap Survey overwhelmingly (74%) indicated that the
greatest need they faced was the shortage of skilled production jobs which required a variety of
technicians, including machinists, operators, craft workers, and distributors (National
Manufacturing Institute, 2011). These shortages present a critical challenge to their
companies’ performance and ability to compete not only locally, but globally (National
Manufacturing Institute, 2011). Due to the shortages, production capacity limits their ability for
expansion, innovation, and productivity improvements (National Manufacturing Institute,
2011).



TRENDS IN MANUFACTURING

There is a slow but steady growth taking
place in U.S. manufacturing. A recent
report published by Industry Week
indicates that according to the
Association for Manufacturing
Technology, U.S. manufacturing
technology orders totaled $667.47
million in September 2012. This total reflected an increase of 40.7% from August 2012 and up
13.4% when compared with the total of $588.80 million reported for September 2011. Overall
year-to-date orders are also up totaling $4,282.11 million, a 5.6% compared with 2011
(Hessman, T., 2012).


Manufacturing Outlook: Texas and Houston
As part of our workforce review and analysis, Houston Community College commissioned
Economic Modeling Specialists Intl. (EMSI) to produce an economic and labor market analysis of




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the manufacturing sectors within the HCC service area across Greater Houston. The following
section and tables included here are direct references from this report.

In the HCC service area, the manufacturing sector directly accounts for 214,144 jobs. These
jobs ripple out through the economy to produce another 248,407 jobs. In effect, the
manufacturing sector is responsible for supporting 462,551 jobs in the HCC service area, or
15% of all employment (EMSI, 2012).

  Manufacturing Change Comparison: HCCS Service Area, Texas, and the U.S.
   (Source: EMSI, 2012 report)




               Region                                   2012 Jobs    2017 Jobs   % Change

               Houston CCS                               214,144      209,299       2.3%

               State                                     923,373      898,468       2.7%

               Nation                                  12,619,769   11,793,353      6.5%




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Below are the largest sub-sectors within manufacturing, as measured by number of workers
employed in 2012, with details on earnings per worker.




                                                                                          .

Meanwhile, the following are projected to be the fastest-growing sub-sectors within
manufacturing, as measured by the number of new jobs (“Change” within the table) from 2012
to 2017.

                                                                                       2012
                                                2012     2017                 %
      Description                                                Change             Average
                                                Jobs     Jobs             Change
                                                                                   Earnings
      Oil and Gas Field Machinery and
                                               34,772   36,084    1,312      4%    $126,131
      Equipment Manufacturing
      Plate Work Manufacturing                  4,064    4,838      774     19%     $73,752
      Guided Missile and Space Vehicle
                                                1,408    1,961      553     39%    $149,688
      Manufacturing
      Fabricated Pipe and Pipe Fitting
                                                4,727    5,178      451     10%     $77,070
      Manufacturing
      Instruments and Related Products
      Manufacturing for Measuring,
                                                3,333    3,769      436     13%     $87,931
      Displaying, and Controlling Industrial
      Process Variables
      Industrial Valve Manufacturing            5,119    5,495      376      7%     $89,169
      Industrial Gas Manufacturing              2,329    2,679      350     15%    $156,996
      Plastics Bag and Pouch
                                                1,027    1,370      343     33%     $59,178
      Manufacturing
      Sign Manufacturing                        1,725    2,010      285     17%     $51,588
      Other Concrete Product
                                                1,031    1,300      269     26%     $47,902
      Manufacturing




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Training Requirements
Jobs with growth opportunity and a good median hourly wage are also accessible with some
workforce training. The following are the jobs in these sectors that require a postsecondary
non-degree award:

                                                                                               Median
                                     2012     2017              %                   Annual
SOC       Description                                  Change            Openings              Hourly
                                     Jobs     Jobs              Change              Openings
Code                                                                                           Wage

          Architectural and Civil
17-3011                              2,605    2,516    (89)     (3%)     255        51         $24.44
          Drafters

17-3013   Mechanical Drafters        2,233    2,307    74       3%       291        58         $26.83

          Electrical and
          Electronics Repairers,
49-2094                              1,326    1,355    29       2%       194        39         $26.29
          Commercial and
          Industrial Equipment

          Electronic Home
          Entertainment
49-2097                              580      658      78       13%      148        30         $15.16
          Equipment Installers and
          Repairers

          Security and Fire Alarm
49-2098                              1,641    1,908    267      16%      469        94         $20.00
          Systems Installers

          Aircraft Mechanics and
49-3011                              2,461    2,837    376      15%      747        149        $26.39
          Service Technicians

          Automotive Service
49-3023   Technicians and            13,107   13,712   605      5%       2,300      460        $15.05
          Mechanics

          Bus and Truck
49-3031   Mechanics and Diesel       5,181    5,373    192      4%       755        151        $20.01
          Engine Specialists

          Mobile Heavy
49-3042   Equipment Mechanics,       4,491    4,998    507      11%      1,090      218        $18.06
          Except Engines




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The following are the jobs that require only short term and on-the-job training:

                                                                                                Median
SOC                                   2012     2017              %                   Annual
          Description                                   Change            Openings              Hourly
Code                                  Jobs     Jobs              Change              Openings
                                                                                                Wage

          Heating, Air
          Conditioning, and
49-9021   Refrigeration               6,280    7,205    925      15%      1,481      296        $19.72
          Mechanics and
          Installers

          Maintenance and
49-9071   Repair Workers,             24,280   25,854   1,574    6%       3,807      761        $16.73
          General

          Electrical and Electronic
51-2022                               3,431    3,325    (106)    (3%)     266        53         $13.68
          Equipment Assemblers

51-2092   Team Assemblers             14,326   14,439   113      1%       1,609      322        $12.10

          Welders, Cutters,
51-4121                               14,627   15,127   500      3%       2,451      490        $18.40
          Solderers, and Brazers

53-3031   Driver/Sales Workers        6,647    7,240    593      9%       1,254      251        $11.78

          Light Truck or Delivery
53-3033                               12,968   13,586   618      5%       1,908      382        $14.49
          Services Drivers

          Industrial Truck and
53-7051                               9,389    9,668    279      3%       1,608      322        $13.62
          Tractor Operators

          Cleaners of Vehicles
53-7061                               8,235    8,426    191      2%       1,420      284        $9.90
          and Equipment

          Laborers and Freight,
53-7062   Stock, and Material         44,743   46,818   2,075    5%       9,227      1,845      $11.72
          Movers, Hand




Embedding Industry Certifications into College Workforce Training Programs

The need to increase competitive capacity is critical for manufacturers in the U.S. Product
innovation in manufacturing leads to increased competitiveness, higher wages, and creation of
high growth jobs, while also increasing indirect jobs. Industry leaders of the National
Association of Manufacturers (NAM) have been wrestling with the skills gaps and, as a result,
have developed a skills certification system. The system provides benchmark standardized


P a g e | 11
assessments of the critical workplace traits and occupational skills an individual needs to
operate in the advanced manufacturing workplace driven by productivity and flexibility.
Employers endorsed the skills certification system, agreeing that it confirms both technical and
non-technical skills. Aware of the critiques of some information technology credentials, the
NAM-endorsed system is based on both theory and hands-on demonstration of skills which
provides the employers an independent assurance that an individual has both the “book
smarts” and the “street smarts” to function in today’s high-paced and complex manufacturing
environment. The industry endorsed this system as a way to assess skills of incoming workers
as well as advance incumbent workers in the plants.

The NAM-endorsed Manufacturing Skills Certification System includes a series of stackable
industry credentials which are applicable to all sectors in the manufacturing industry. The
system integrates a competency-based learning pathway model that is standards-based,
performance-based, and proficiency-based. Furthermore, the certifications provide the
individual with nationally industry recognized credentials validating skills for high-quality,
middle-class manufacturing jobs.

These industry-recognized credentials validate the skills and competencies needed to be
productive and successful in entry-level positions in any manufacturing environment. The
credentialing partners that comprise the Skills Certification System are American College
Testing (ACT), the American Welding Society (AWS), the Manufacturing Skill Standards Council
(MSSC), the National Institute of Metalworking Skills (NIMS), and the Society of Manufacturing
Engineers (SME).

An emerging trend is integrating entry-level certifications into the college workforce training
programs curriculum. From the educational perspective, the additional benefit of the system is
that it provides a lifelong learning approach with multiple points of re-entry into education and
work leading to career and higher education advancement. Many community college students
are adults who first come to the college in need of relevant workplace skills to open doors to
job vacancies for which they can’t otherwise qualify. The NAM-endorsed system provides a




P a g e | 12
career ladder pathway and a guide to community college workforce professionals to align
short-term and long-term certificates and degrees with skills that are relevant to the industry.



HOUSTON COMMUNITY COLLEGE WORKFORCE INSTRUCTION:
WHERE ARE WE?

HCC’s workforce instructional programs focus on Houston’s high-growth, high-demand industry
clusters sectors: Energy, Health Care, Manufacturing, Transportation and Global Supply Chain &
Logistics, Information Technology, Business, Hospitality, and Personal Services. More than 70
credit workforce programs offer Associate in Applied Science degrees, and certificates are
offered throughout the Greater Houston Area and through HCC’s Distance Learning program.
In addition, the HCC Corporate College works directly with employers to develop customized
training solutions based on skills and knowledge need assessments and a company’s strategic
goals. The School of Continuing Education offers fast track entry-level Marketable Skills
Achievement Awards in more than 20 areas which also serve as a college-entry pathway. The
HCC Apprenticeship Program is a partnership between HCC and the Apprenticeship and
Training Association of Texas (ATAT). The HCC Apprenticeship Program provides a three- to five-
year job training system for skilled trade and craft workers.

In 2011-2012, HCC awarded more than 3,731 workforce degrees and certificates. More than
41% of HCC enrollment is comprised of workforce degree or certificate-seeking students, and
the number continues to grow annually. Just over 54% of these students are female and 46%
are male. As of Fall 2011, there were 11,662 students enrolled in workforce coursework at HCC.

As part of our continuing efforts to evolve with the region’s workforce needs, we have launched
several new programs in recent years.
    •    The new Advanced Manufacturing Technology Institute at HCC Central College hosts
         machining and advanced manufacturing engineering technology programs and is an
         Authorized Training Center (ATC) for Engineering Geometry Systems.




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•    Through a unique partnership with Goldman Sachs, the HCC Center for
         Entrepreneurship offers a practical business management education program to help
         small business owners develop the skills they need to grow their companies.
    •    The Division of Science and Engineering Technologies at HCC’s Northeast College
         provides high-tech career and technical education related to planning, managing, and
         providing applied STEM technical services for oil and gas, manufacturing, construction,
         chemical, petroleum, renewable and sustainable energy companies.
    •    Through partnerships with industry leaders (such as Microsoft, CISCO, CompTia, Intuit,
         and others), HCC’s Digital Simulation and Gaming, Computer Science, Business
         Technology, and Accounting programs offer training that leads to industry certification
         in addition to college credentials.
    •    The Certified Logistics Associate was added last year at HCC Southeast College in
         response to the needs of distribution centers and the expansion of the Port of Houston.
    •    HCC Southwest College offers the technical training necessary for students considering
         a Drafting/Design career in the fields of architecture, construction, manufacturing, and
         engineering. The program provides a strong academic and technical base to give the
         graduate the needed skills and knowledge for immediate employment and the
         foundation for professional growth.


HCC is also planning an alignment assessment for the HCC manufacturing-related workforce
training programs in reviewing the programs with the results of this report. Similar outlines will
be used for other workforce programs as part of the industry cluster reviews.



EMPLOYER ENGAGEMENT AND SKILLS SUMMIT

The HCC Manufacturing Skills Summit Breakfast was held September 28, 2012, at Brady’s
Landing in southeast Houston, a hub for local manufacturing activity. John Higgins, President
and CEO of NEUTEX Advanced Energy, delivered the keynote for the event. During his
presentation, Mr. Higgins indicated that NEUTEX had recently relocated to the U.S., returning to



P a g e | 14
Houston from China. Increased shipping costs, quality control issues due to lower standards,
constant travel costs, increased tariffs, and contraband search costs were motivating factors in
the company’s decision to return to the U.S. In addition, the company realized they were
helping in the development of a middle class in China, instead of helping to build and maintain
it right here in Houston. Mr. Higgins explained that NEUTEX moved to Houston because the
quality of production is better, people are more efficient, and the city possesses a great logistics
distribution location supported by a strong transportation infrastructure system.

Overall, nearly 130 people attended the Skills Summit, including employers representing the
various sectors of the local manufacturing industry. Other panelists for the event included the
following individuals and organizations:

    •   Tom Pauken, Commissioner Representing Employers for the Texas Workforce Commission;
    •   Cally Graves, Senior Industry Liaison, Houston Galveston Area Council;
    •   John Higgins, President and CEO, NEUTEX Advanced Energy Group;
    •   Jeff Applegate, President, Blackwell Plastics and also president of GHMA;
    •   Ron Lehman from Texas Manufacturing Assistance Center;
    •   Craig Richard, Chief Economic Development Officer, Greater Houston Partnership; and
    •   Kevin Helm, Supply Chain Manager, Oceaneering International.

This event was the first in a series of skills summits focused on the workforce and skills needs
for high-demand, high-growth industries in the Houston area and how HCC’s curriculum can
continue to be enhanced to meet the needs of the emerging labor force. This summit was
hosted by HCC in partnership with the Texas Manufacturing Assistance Center, Texas Workforce
Commission, Houston-Galveston Area Council, and the Greater Houston Manufacturing
Association.

The summit is the final step the workforce programs use to initiate curriculum changes and
continue to align workforce education curriculum with relevant skills training objectives for
each industry cluster. These findings will help guide us in enhancing the relevancy of all (SCH
and CE) related programs and corresponding credentialing opportunities for our students.




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Additional Data Collection and Analysis
Parallel to the research and skills summit planning, an assessment of facilities and equipment
was conducted for the largest concentration of manufacturing-related training program
classroom facilities at HCC Central College. Review of facilities and capacity at HCC NE College’s
Welding lab and HCC SE College Welding, and other related programs, is also under
development.

With increased calls from employers to the HCC Corporate College for customized training, one
action item that has already been implemented is the launch of plans to develop a new
Advanced Manufacturing Technology Institute (AMTI). AMTI is a collaboration between HCC
Corporate College, HCC Central, HCC NE College, HCC SE College and HCC’s School of Continuing
Education to help prepare future manufacturing career professionals and upgrade incumbent
worker skills.

During the 2012-2013 fiscal year, an update of the facilities as well as repairs and upgrading of
HCC’s 60 welding booths and related equipment began. In addition, upgrades and repairs to the
machinery housed in the Machining and Advanced Manufacturing labs at Central College were
initiated. Advanced CNC machines are also used at SW College as part of the drafting program.
NCCER credentialing for all faculty in these programs has also been completed, together with
the immersion of the NCCER curriculum to the courses to commence industry credentialing of
students in the program in the 2012-2013 fiscal year. Additional faculty training and
credentialing is under assessment based on the information presented in this report.



RECOMMENDATIONS FOR FUTURE ACTION

The information below reflects the findings, survey feedback, and comments followed by
implications for curriculum and specific action items. A district-wide Manufacturing Curriculum
Enhancement Task Force has been organized which includes instructional deans and program
faculty to review current alignment of curriculum based on research data and the skills summit
event. The Task Force will be focused on developing an action plan and timeline to implement
necessary enhancements within 12 months or less.


P a g e | 16
Career and Work Readiness Essential for Manufacturing Sector
HCC will review its curriculum to ensure that we continue to emphasize the development of
these skills in our workforce students:

      •   Basic Applied Math: Qualified manufacturing workers must have the ability to
          perform work-related basic arithmetic and technical math calculations (not college
          algebra) and apply them to work-related situations (division, multiplication,
          percentages, fractions).
      •   Work Habits: Qualified manufacturing workers must possess behavioral work skills
          such as reliability, the ability to work in teams, and the ability to communicate
          effectively with a diversified group of co-workers and supervisors.
      •   Problem Solving: Qualified workers must be trained and demonstrate problem solving
          and critical thinking skills.
      •   Reading and Basic Work Information Analytical Skills: Qualified workers must
          demonstrate the ability to locate, synthesize, and apply workplace document
          information that is presented in graphics and in text.



Industry Certifications
The integration of technology and the demand for high productivity that dominate the
advanced manufacturing sector increasingly require a higher-skilled, safe, and trained
manufacturing workforce. Manufacturing skills gaps researchers and HCC Skills Summit
employer attendees indicated that industry certifications add validation of the skills and
competencies that entry-level workers need to be productive and successful in any
manufacturing environment.

      a. The Manufacturing Skills Certification System endorsed by the National Association of
          Manufacturers (NAM) is a series of credentials applicable across all sectors in the
          manufacturing economy. It can be used for new-hire screening and assessment as well
          as to enhance current worker skill sets. The NAM-endorsed system directly addresses
          the deficits in manufacturing education and training that are limiting the pool of


P a g e | 17
qualified candidates for U.S. manufacturing jobs. Certifications are valuable to
          employers since they are designed to measure a minimum standard of competencies
          identified by employers as critical when making hiring decisions. HCC’s machining and
          manufacturing programs will pursue meeting the requirements of the Manufacturing
          Skills Certification.
      b. The American Welding Society (AWS) Certified Welder (CW) program test is used in
          the structural steel, petroleum pipeline, sheet metal, and chemical refinery welding
          industries. HCC will incorporate the CWS certification preparation for the Basic
          Welding Level 1 Certificate. The AWS Accredited Test Facility program establishes
          minimum requirements for test facilities, their personnel, and equipment to qualify
          for accreditation to test and qualify welders. HCC will assess the necessary
          requirements to establish an AWS Testing Facility where HCC students can test prior to
          completing the program, allowing them to earn a Level 1 Certificate and AWS Certified
          Welder certificate upon completion of their HCC education and increase
          employability.
      c. Skills Summit Survey respondents supported NIMS certifications as relevant
          credentials used for hiring and screening of new personnel. Specific certifications
          included: Machining Level I & II, Metal Forming Level 1, and Stamping Level 2-3. The
          National Institute for Metalworking Skills (NIMS) credential is the metalworking
          industry’s only skills certificate that is based on national standards developed under
          procedures accredited by the American National Standards Institute. The NIMS
          credential is used by the industry to recruit, hire, place, and promote skilled
          candidates at all levels of employment. The NIMS credential is used by education and
          training institutions as performance benchmarks, often as part of graduation or
          degree requirements, and/or as the basis for advanced credit. Therefore, the
          Machining Program will assess the alignment of the NIMS certifications for different
          levels of HCC’s machining curriculum.
      d. The Skills Summit Survey respondents also acknowledged the Manufacturing Skills
          Standard Council (MSSC) Certified Production Technician (CPT) as a relevant



P a g e | 18
certification for their industry. The CPT certification allows individuals to validate
          mastery of the core competencies of manufacturing production at the front line
          (entry-level through front-line supervisor). The CPT program consists of five individual
          certificate modules: Safety; Quality Practices and Measurement; Manufacturing
          Processes and Production; Maintenance Awareness; and Green Production. HCC
          Manufacturing Technology program faculty will assess the alignment of the CPT skills
          to the courses in the Associate in Applied Science degree in Manufacturing.
      e. OSHA’s General Industry Outreach Safety training is also a fundamental certification
          for an entry-level worker’s general awareness on recognizing and preventing hazards
          in a general industry setting. The Task Force will assess NCCER OSHA training content
          and identify what additional alignments are needed (if any) and make
          recommendations regarding the 10-Hour General Industry certification.
      f. With a large number of adults seeking to obtain new skills or upgrade existing skills,
          online education delivery options will be assessed to determine courses which could
          be offered via distance education. Convenient and accessibility of instruction will be
          assessed by the Task Force as another vehicle to expand access to training and
          relevant education.


  In summary, industry certifications are valuable to employers since they are designed to
  measure a minimum standard of competencies that have been identified by employers as
  critical when making hiring decisions. Specific relevant industry certifications noted included:
      •   OSHA - 10-hour General Industry Card
      •   AWS - Certified Welder
      •   NIMS - Machining Level I & II, Metal Forming Level 1, and Stamping Level 2-3
      •   MSSC - Certified Production Technician


Equipment and Facilities

In partnership with the district inventory control, the Task Force will also develop an
assessment of the manufacturing-related instructional programs current equipment, and make



P a g e | 19
recommendations for the replacement, repairs, or addition of equipment to meet the needs of
the industry.

Following a new industry cluster approach for workforce program curriculum and equipment
and facilities development, a Center for Manufacturing Excellence will be developed in
collaboration with all college sites and with credit and non-credit departments. The objective
of the Center for Excellence will be to leverage HCC’s district-wide resources and expertise to
meet the various areas of relevant manufacturing training without unnecessary duplication. In
addition, program facilities capacity and need for improvement, as well as planning of new
college expansions, will be reviewed by the Task Force to provide further recommendations.



Accreditations and Professional Development
The Office of the Associate Vice Chancellor of Workforce Instruction will coordinate the process
of relevant third-party accreditations and faculty professional development and certifications
for all manufacturing-related programs. The welding program facility at Central College will
pursue approval as an American Welding Society Testing Site. The machining and
manufacturing programs will pursue meeting the requirements of the Manufacturing Skills
Certification System endorsed by the National Association of Manufacturers and also the
National Institute for Metalworking Skills. Professional development objectives for faculty will
focus on standards from AWS, MSSC, NAM, and NIMS.



Workforce Dual Credit Partnerships and Career Pathways
Through curriculum enhancement and increased instructional capacity, the college will
continue to expand workforce career pathways partnerships with local school districts to
provide high schools students the opportunity to earn a college certificate while completing
their high school diploma. Current dual credit partnerships, such as the Houston Innovative
Learning Zone Schools with HISD, provide pathways to college for many students who seek
alternative academic pathways to college that will allow them to also quickly qualify for
employment and earn industry credentials.



P a g e | 20
Grants and Employer Partnerships
Once the accreditations and industry certifications are embedded into the curriculum, HCC will
also increase its capacity to deliver relevant employer contract training projects. In addition,
federal, state, and private foundation grant opportunities will be assessed to help support the
continual upgrading of the curriculum, faculty professional development, and student industry
certifications options. Through the new industry cluster organizations, an Industry Advisory
Committee will also be developed to continue to provide a more global perspective of industry
trends and HCC’s manufacturing programs relevance to meeting employer needs.



SUMMARY

Almost one-third of new job openings between 2010 and 2020 are going to require professional
technical skills, as baby boomers retire and new jobs are created. Manufacturing is essential
and very important to the economic development of both our region and state. Modern
manufacturing is experiencing a renaissance and technology has transformed the workplace
and the necessary skills sets for manufacturing workers.

Industry credentials have become a third-party benchmark of the learning objectives of the
traditional academic education and training. As a result, Houston Community College is in the
process of updating our curriculum to provide students in these programs the necessary
educational foundation for success and long-term career pathways. HCC also has the
opportunity to add relevant industry certifications as part of the completion of their
professional certificate and/or associate degree program. Furthermore, the college has
committed to make necessary facilities and equipment enhancements to build additional
capacity to meet the high demand for graduates of these programs by regional employers.

HCC is ideally positioned to provide both applied career and technical preparation as well as the
applied mathematics, basic technology skills, critical thinking, work readiness, problem solving,
and teamwork competencies that the new millennium workplace demands. The integration of



P a g e | 21
relevant, focused, and applied academic learning and workforce readiness offered by HCC can
lead to both further education and job skills, resulting in better prepared graduates and
successful employees.

Active employer engagement and partnerships in the form of additional internship and co-op
experiences, equipment donation, and/or faculty resources will also be a focus of HCC
workforce instruction developments. These opportunities will provide students with applied
experience in supervised formats while giving employers a closer view of the pipeline of future
trained and skilled staff. In addition, internship programs provide employers a real opportunity
to provide direct feedback to instructional leaders of the learning outcomes achieved by the
students and/or the need to enhance curriculum.

As the community college of Houston, and for Houston, HCC has been offering workforce
training doing for decades, providing the educational means for individuals to enter the
workforce. The new focus on high-growth, high-demand workforce training such as
manufacturing will serve the citizens and regional economic development well.

In summary, the summit feedback provided direct employer feedback that the college is
incorporating into its curriculum. HCC workforce efforts are committed to enhance employer
engagement, align curriculum to relevant industry certifications, build collaborative career and
technical education pathways with the local schools districts, and offer a system of stackable
workforce certificates towards associates degrees with articulations to four year universities to
meet the manufacturing workforce needs and provide students successful job and career
opportunities.




P a g e | 22

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Workforce reportfinal2013

  • 1. Workforce Review and Analysis: Manufacturing Sector February 2013 Houston Community College Office of Workforce Instruction In Partnership with the HCC Foundation
  • 2. Table of Contents INTRODUCTION ............................................................................................................................................. 3 The Manufacturing Sector ........................................................................................................................ 4 Purpose of this Report ............................................................................................................................... 5 SUMMARY OF LITERATURE REVIEW ............................................................................................................. 5 Manufacturing Industry: Historical Trends ............................................................................................... 6 TRENDS IN MANUFACTURING ...................................................................................................................... 7 Manufacturing Outlook: Texas and Houston ............................................................................................ 7 Training Requirements ............................................................................................................................ 10 Embedding Industry Certifications into College Workforce Training Programs ..................................... 11 HOUSTON COMMUNITY COLLEGE WORKFORCE INSTRUCTION: ............................................................... 13 WHERE ARE WE? ......................................................................................................................................... 13 EMPLOYER ENGAGEMENT AND SKILLS SUMMIT ........................................................................................ 14 Additional Data Collection and Analysis ................................................................................................. 16 RECOMMENDATIONS FOR FUTURE ACTION............................................................................................... 16 Career and Work Readiness Essential for Manufacturing Sector ........................................................... 17 Industry Certifications ............................................................................................................................. 17 Equipment and Facilities ......................................................................................................................... 19 Accreditations and Professional Development ....................................................................................... 20 Workforce Dual Credit Partnerships and Career Pathways .................................................................... 20 Grants and Employer Partnerships ......................................................................................................... 21 SUMMARY ................................................................................................................................................... 21 P a g e |2
  • 3. INTRODUCTION In mid-2011, the Instructional Leadership department of Houston 82% of manufacturers Community College (HCC) initiated a review of the workforce needs in the report a moderate-to- serious skills gap in skilled Greater Houston Area in an effort to review and analyze the alignment production and relevancy of workforce training programs offered by the college. 69% of manufacturers Since one of the key initiatives in HCC’s 2012-2015 Strategic Plan is to expect the skills shortage in respond to the needs of business and industry for skilled workers, HCC skilled production to worsen in the next 3-5 years decided that a comprehensive review of our workforce programs was needed to determine the currency of the college’s programs related to 74% of manufacturers the changes that have taken place in the local, regional, and national report that this skills gap economy during the last 10 to 15 years. The research imperative is to has negatively impacted their company’s ability to ensure that we develop and follow a strategic blueprint, aligned with expand operations HCC’S overall strategic plan, to sustain and direct HCC workforce program development that is responsive to both the Greater Houston Area’s and 5% of all jobs in manufacturing are unfilled the state’s labor market needs. The overall objective will be to move from due to lack of qualified analysis to transformation of our workforce programs that will position workers HCC as the leading institution in workforce and economic development. Throughout the assessment process, the seven driving questions of the review are: 1. What are the major workforce trends and labor market statistics for the Greater Houston Area by industry cluster? 2. Is the current program content reflective of the current industry occupation skills, knowledge, and industry certification requirements relevant to employers when making hiring decisions? 3. Is the right mix of workforce programs offered at the right campuses based on proximity of industry sectors using labor market and industry data? 4. What is the capacity of the programs (facilities, equipment, and faculty expertise and resources)? 5. Are there programs with potential for growth? P a g e |3
  • 4. 6. How can HCC increase the engagement of business and industry as active partners in the strategic planning of its workforce programs? 7. How does the organizational structure in place support innovation, industry engagement, constant evaluation, and growth? The following analysis, based on the answers to the above questions, identifies the gaps between what is currently offered at HCC, the capacity and structure in place, and then determine specific strategies for enhancement of the programs as needed. Our first step was to determine the high-growth, high-demand industry sectors in the Greater Houston Area. They are: Energy, Manufacturing, and Trades; Transportation and Logistics; Health Care; Information Technology; Business and Personal Services; Public Safety; and Biotechnology. HCC has now started to conduct focused strategic workforce development forums called “Workforce Skills Summits,” each focused on a particular industry sector. In these forums, we engaged economic development leaders and employers in a discussion about the workforce skills and knowledge that employers seek when making hiring decisions. The Manufacturing Sector What remains a lasting perception in the manufacturing industry is that machine and welding jobs were labeled “blue collar” work and historically have been associated with low wages and low job growth opportunities. The former “blue collar” work in this sector has been transformed due to the influence of technology, the complexity of products, faster production cycles, increased demand for customization, and distribution requirements of products manufactured. The new manufacturing jobs now require a higher-skilled, professional technician who has the ability to think critically and solve quality issues during production. The traditional view of “blue collar workers” has transitioned to the need for a variety of professional technicians trained in multiple aspects of production and expected to actively engage in higher work- applied reasoning, in a diversified work environment, with a demand for quicker production P a g e |4
  • 5. outcomes. These professional technical jobs may be considered mid-level skill jobs, and increasingly wages for technicians holding these jobs outperform those of individuals with four- year degrees (Carnavale, 2009). The Greater Houston Partnership lists Houston as the country's #1 city for manufacturing plants and jobs. Yet, manufacturing employers are continuously challenged to find qualified skilled workers – even in times of high unemployment – mostly because there is a skills gap between the available workforce and the skills sets they must have to be productive in today’s manufacturing industry workplace. Recognizing that access to qualified individuals with high- quality education, training, and skills set is critical to manufacturers’ capacity for innovation and business success, HCC held its first “ Manufacturing Skills Summit” on September 28, 2012. Purpose of this Report This report is a summary of the literature review research related to manufacturing as well as the results and feedback learned during the summit from the panelists and employers who participated in the summit and who also completed a brief survey during the event. The report includes a brief section regarding the most recognized manufacturing workforce needs research of the past five years, a review of the current HCC manufacturing-related programs offered, a summary of the Skills Summit outcomes, and lastly, recommendations for future action. A similar report format will follow each of the Skills Summit events. SUMMARY OF LITERATURE REVIEW In spite of the recent recession, Houston’s economy has maintained a steady growth (Forbes, L., 2010). The energy, health care, oil and gas, and technology sectors – combined with strong transportation and distribution infrastructure and top educational institutions – have helped Houston weather the recession better than most cities. Moreover, these factors have influenced the increased immigration of people from other U.S. cities to Houston seeking jobs, a high standard of living, and opportunities (University of Texas, 2011; Scheneider, A., 2012). P a g e |5
  • 6. The Greater Houston Partnership lists Houston as the #1 manufacturing city in the U.S. Employers in this sector, “Manufacturers in the United States have a talent problem. however, continue to express that the most difficult Just as manufacturing grows challenge they face is finding qualified skilled workers for more complex and innovation drives the industry, companies the number of unfilled vacancies they currently hold. can no longer find workers with the skills today’s jobs demand. This challenge – to recruit qualified workers in This deficit in talent available to manufacturers poses a direct manufacturing – holds as true across the U.S. as it does in threat to the future prosperity Houston. The “2011 Skills Gap Report” by the National and security of the United Manufacturing Institute (NMI) in collaboration with States.” Deloitte Consulting LLP, substantiated the talent challenge -- Roadmap to Education Reform for Manufacturing, NIM (2012). that U.S. manufacturers face and warns of even greater skilled worker shortages in the near future. Manufacturing Industry: Historical Trends Though the industry is experiencing an upturn in demand, many Americans still remember the large number of jobs lost by the manufacturing sector in the 80’s and 90’s. Employers, faced with increased labor costs driven by union contracts, moved production overseas seeking higher production, union-free environments, and lower labor costs. In addition, technology applications in manufacturing also implied fewer people were needed in production. The flat world economy and the subsequent increased global competition also impacted American exports as computer, textile, and fabric industries faced increased competition from foreign markets (U.S. Bureau of Labor Statistics, 2000). As a result, many American jobs were lost to China and India. But the world has significantly changed between 1980 and 2010. Thirty years later, a large number of baby boomers are at retirement age and technology advances have changed the manufacturing process, mostly resulting in increased productivity (Hurt, 2012). Local and global demand for products is now highly influenced by complex logistics and distribution algorithms that have led to the expectation of a faster and individualized consumer experience. Wages P a g e |6
  • 7. have increased globally as have the cost of transporting goods (due to oil and gas prices), changing the competitive imperatives for this sector. Respondents to the 2011 NMI Skills Gap Survey overwhelmingly (74%) indicated that the greatest need they faced was the shortage of skilled production jobs which required a variety of technicians, including machinists, operators, craft workers, and distributors (National Manufacturing Institute, 2011). These shortages present a critical challenge to their companies’ performance and ability to compete not only locally, but globally (National Manufacturing Institute, 2011). Due to the shortages, production capacity limits their ability for expansion, innovation, and productivity improvements (National Manufacturing Institute, 2011). TRENDS IN MANUFACTURING There is a slow but steady growth taking place in U.S. manufacturing. A recent report published by Industry Week indicates that according to the Association for Manufacturing Technology, U.S. manufacturing technology orders totaled $667.47 million in September 2012. This total reflected an increase of 40.7% from August 2012 and up 13.4% when compared with the total of $588.80 million reported for September 2011. Overall year-to-date orders are also up totaling $4,282.11 million, a 5.6% compared with 2011 (Hessman, T., 2012). Manufacturing Outlook: Texas and Houston As part of our workforce review and analysis, Houston Community College commissioned Economic Modeling Specialists Intl. (EMSI) to produce an economic and labor market analysis of P a g e |7
  • 8. the manufacturing sectors within the HCC service area across Greater Houston. The following section and tables included here are direct references from this report. In the HCC service area, the manufacturing sector directly accounts for 214,144 jobs. These jobs ripple out through the economy to produce another 248,407 jobs. In effect, the manufacturing sector is responsible for supporting 462,551 jobs in the HCC service area, or 15% of all employment (EMSI, 2012). Manufacturing Change Comparison: HCCS Service Area, Texas, and the U.S. (Source: EMSI, 2012 report) Region 2012 Jobs 2017 Jobs % Change Houston CCS 214,144 209,299 2.3% State 923,373 898,468 2.7% Nation 12,619,769 11,793,353 6.5% P a g e |8
  • 9. Below are the largest sub-sectors within manufacturing, as measured by number of workers employed in 2012, with details on earnings per worker. . Meanwhile, the following are projected to be the fastest-growing sub-sectors within manufacturing, as measured by the number of new jobs (“Change” within the table) from 2012 to 2017. 2012 2012 2017 % Description Change Average Jobs Jobs Change Earnings Oil and Gas Field Machinery and 34,772 36,084 1,312 4% $126,131 Equipment Manufacturing Plate Work Manufacturing 4,064 4,838 774 19% $73,752 Guided Missile and Space Vehicle 1,408 1,961 553 39% $149,688 Manufacturing Fabricated Pipe and Pipe Fitting 4,727 5,178 451 10% $77,070 Manufacturing Instruments and Related Products Manufacturing for Measuring, 3,333 3,769 436 13% $87,931 Displaying, and Controlling Industrial Process Variables Industrial Valve Manufacturing 5,119 5,495 376 7% $89,169 Industrial Gas Manufacturing 2,329 2,679 350 15% $156,996 Plastics Bag and Pouch 1,027 1,370 343 33% $59,178 Manufacturing Sign Manufacturing 1,725 2,010 285 17% $51,588 Other Concrete Product 1,031 1,300 269 26% $47,902 Manufacturing P a g e |9
  • 10. Training Requirements Jobs with growth opportunity and a good median hourly wage are also accessible with some workforce training. The following are the jobs in these sectors that require a postsecondary non-degree award: Median 2012 2017 % Annual SOC Description Change Openings Hourly Jobs Jobs Change Openings Code Wage Architectural and Civil 17-3011 2,605 2,516 (89) (3%) 255 51 $24.44 Drafters 17-3013 Mechanical Drafters 2,233 2,307 74 3% 291 58 $26.83 Electrical and Electronics Repairers, 49-2094 1,326 1,355 29 2% 194 39 $26.29 Commercial and Industrial Equipment Electronic Home Entertainment 49-2097 580 658 78 13% 148 30 $15.16 Equipment Installers and Repairers Security and Fire Alarm 49-2098 1,641 1,908 267 16% 469 94 $20.00 Systems Installers Aircraft Mechanics and 49-3011 2,461 2,837 376 15% 747 149 $26.39 Service Technicians Automotive Service 49-3023 Technicians and 13,107 13,712 605 5% 2,300 460 $15.05 Mechanics Bus and Truck 49-3031 Mechanics and Diesel 5,181 5,373 192 4% 755 151 $20.01 Engine Specialists Mobile Heavy 49-3042 Equipment Mechanics, 4,491 4,998 507 11% 1,090 218 $18.06 Except Engines P a g e | 10
  • 11. The following are the jobs that require only short term and on-the-job training: Median SOC 2012 2017 % Annual Description Change Openings Hourly Code Jobs Jobs Change Openings Wage Heating, Air Conditioning, and 49-9021 Refrigeration 6,280 7,205 925 15% 1,481 296 $19.72 Mechanics and Installers Maintenance and 49-9071 Repair Workers, 24,280 25,854 1,574 6% 3,807 761 $16.73 General Electrical and Electronic 51-2022 3,431 3,325 (106) (3%) 266 53 $13.68 Equipment Assemblers 51-2092 Team Assemblers 14,326 14,439 113 1% 1,609 322 $12.10 Welders, Cutters, 51-4121 14,627 15,127 500 3% 2,451 490 $18.40 Solderers, and Brazers 53-3031 Driver/Sales Workers 6,647 7,240 593 9% 1,254 251 $11.78 Light Truck or Delivery 53-3033 12,968 13,586 618 5% 1,908 382 $14.49 Services Drivers Industrial Truck and 53-7051 9,389 9,668 279 3% 1,608 322 $13.62 Tractor Operators Cleaners of Vehicles 53-7061 8,235 8,426 191 2% 1,420 284 $9.90 and Equipment Laborers and Freight, 53-7062 Stock, and Material 44,743 46,818 2,075 5% 9,227 1,845 $11.72 Movers, Hand Embedding Industry Certifications into College Workforce Training Programs The need to increase competitive capacity is critical for manufacturers in the U.S. Product innovation in manufacturing leads to increased competitiveness, higher wages, and creation of high growth jobs, while also increasing indirect jobs. Industry leaders of the National Association of Manufacturers (NAM) have been wrestling with the skills gaps and, as a result, have developed a skills certification system. The system provides benchmark standardized P a g e | 11
  • 12. assessments of the critical workplace traits and occupational skills an individual needs to operate in the advanced manufacturing workplace driven by productivity and flexibility. Employers endorsed the skills certification system, agreeing that it confirms both technical and non-technical skills. Aware of the critiques of some information technology credentials, the NAM-endorsed system is based on both theory and hands-on demonstration of skills which provides the employers an independent assurance that an individual has both the “book smarts” and the “street smarts” to function in today’s high-paced and complex manufacturing environment. The industry endorsed this system as a way to assess skills of incoming workers as well as advance incumbent workers in the plants. The NAM-endorsed Manufacturing Skills Certification System includes a series of stackable industry credentials which are applicable to all sectors in the manufacturing industry. The system integrates a competency-based learning pathway model that is standards-based, performance-based, and proficiency-based. Furthermore, the certifications provide the individual with nationally industry recognized credentials validating skills for high-quality, middle-class manufacturing jobs. These industry-recognized credentials validate the skills and competencies needed to be productive and successful in entry-level positions in any manufacturing environment. The credentialing partners that comprise the Skills Certification System are American College Testing (ACT), the American Welding Society (AWS), the Manufacturing Skill Standards Council (MSSC), the National Institute of Metalworking Skills (NIMS), and the Society of Manufacturing Engineers (SME). An emerging trend is integrating entry-level certifications into the college workforce training programs curriculum. From the educational perspective, the additional benefit of the system is that it provides a lifelong learning approach with multiple points of re-entry into education and work leading to career and higher education advancement. Many community college students are adults who first come to the college in need of relevant workplace skills to open doors to job vacancies for which they can’t otherwise qualify. The NAM-endorsed system provides a P a g e | 12
  • 13. career ladder pathway and a guide to community college workforce professionals to align short-term and long-term certificates and degrees with skills that are relevant to the industry. HOUSTON COMMUNITY COLLEGE WORKFORCE INSTRUCTION: WHERE ARE WE? HCC’s workforce instructional programs focus on Houston’s high-growth, high-demand industry clusters sectors: Energy, Health Care, Manufacturing, Transportation and Global Supply Chain & Logistics, Information Technology, Business, Hospitality, and Personal Services. More than 70 credit workforce programs offer Associate in Applied Science degrees, and certificates are offered throughout the Greater Houston Area and through HCC’s Distance Learning program. In addition, the HCC Corporate College works directly with employers to develop customized training solutions based on skills and knowledge need assessments and a company’s strategic goals. The School of Continuing Education offers fast track entry-level Marketable Skills Achievement Awards in more than 20 areas which also serve as a college-entry pathway. The HCC Apprenticeship Program is a partnership between HCC and the Apprenticeship and Training Association of Texas (ATAT). The HCC Apprenticeship Program provides a three- to five- year job training system for skilled trade and craft workers. In 2011-2012, HCC awarded more than 3,731 workforce degrees and certificates. More than 41% of HCC enrollment is comprised of workforce degree or certificate-seeking students, and the number continues to grow annually. Just over 54% of these students are female and 46% are male. As of Fall 2011, there were 11,662 students enrolled in workforce coursework at HCC. As part of our continuing efforts to evolve with the region’s workforce needs, we have launched several new programs in recent years. • The new Advanced Manufacturing Technology Institute at HCC Central College hosts machining and advanced manufacturing engineering technology programs and is an Authorized Training Center (ATC) for Engineering Geometry Systems. P a g e | 13
  • 14. Through a unique partnership with Goldman Sachs, the HCC Center for Entrepreneurship offers a practical business management education program to help small business owners develop the skills they need to grow their companies. • The Division of Science and Engineering Technologies at HCC’s Northeast College provides high-tech career and technical education related to planning, managing, and providing applied STEM technical services for oil and gas, manufacturing, construction, chemical, petroleum, renewable and sustainable energy companies. • Through partnerships with industry leaders (such as Microsoft, CISCO, CompTia, Intuit, and others), HCC’s Digital Simulation and Gaming, Computer Science, Business Technology, and Accounting programs offer training that leads to industry certification in addition to college credentials. • The Certified Logistics Associate was added last year at HCC Southeast College in response to the needs of distribution centers and the expansion of the Port of Houston. • HCC Southwest College offers the technical training necessary for students considering a Drafting/Design career in the fields of architecture, construction, manufacturing, and engineering. The program provides a strong academic and technical base to give the graduate the needed skills and knowledge for immediate employment and the foundation for professional growth. HCC is also planning an alignment assessment for the HCC manufacturing-related workforce training programs in reviewing the programs with the results of this report. Similar outlines will be used for other workforce programs as part of the industry cluster reviews. EMPLOYER ENGAGEMENT AND SKILLS SUMMIT The HCC Manufacturing Skills Summit Breakfast was held September 28, 2012, at Brady’s Landing in southeast Houston, a hub for local manufacturing activity. John Higgins, President and CEO of NEUTEX Advanced Energy, delivered the keynote for the event. During his presentation, Mr. Higgins indicated that NEUTEX had recently relocated to the U.S., returning to P a g e | 14
  • 15. Houston from China. Increased shipping costs, quality control issues due to lower standards, constant travel costs, increased tariffs, and contraband search costs were motivating factors in the company’s decision to return to the U.S. In addition, the company realized they were helping in the development of a middle class in China, instead of helping to build and maintain it right here in Houston. Mr. Higgins explained that NEUTEX moved to Houston because the quality of production is better, people are more efficient, and the city possesses a great logistics distribution location supported by a strong transportation infrastructure system. Overall, nearly 130 people attended the Skills Summit, including employers representing the various sectors of the local manufacturing industry. Other panelists for the event included the following individuals and organizations: • Tom Pauken, Commissioner Representing Employers for the Texas Workforce Commission; • Cally Graves, Senior Industry Liaison, Houston Galveston Area Council; • John Higgins, President and CEO, NEUTEX Advanced Energy Group; • Jeff Applegate, President, Blackwell Plastics and also president of GHMA; • Ron Lehman from Texas Manufacturing Assistance Center; • Craig Richard, Chief Economic Development Officer, Greater Houston Partnership; and • Kevin Helm, Supply Chain Manager, Oceaneering International. This event was the first in a series of skills summits focused on the workforce and skills needs for high-demand, high-growth industries in the Houston area and how HCC’s curriculum can continue to be enhanced to meet the needs of the emerging labor force. This summit was hosted by HCC in partnership with the Texas Manufacturing Assistance Center, Texas Workforce Commission, Houston-Galveston Area Council, and the Greater Houston Manufacturing Association. The summit is the final step the workforce programs use to initiate curriculum changes and continue to align workforce education curriculum with relevant skills training objectives for each industry cluster. These findings will help guide us in enhancing the relevancy of all (SCH and CE) related programs and corresponding credentialing opportunities for our students. P a g e | 15
  • 16. Additional Data Collection and Analysis Parallel to the research and skills summit planning, an assessment of facilities and equipment was conducted for the largest concentration of manufacturing-related training program classroom facilities at HCC Central College. Review of facilities and capacity at HCC NE College’s Welding lab and HCC SE College Welding, and other related programs, is also under development. With increased calls from employers to the HCC Corporate College for customized training, one action item that has already been implemented is the launch of plans to develop a new Advanced Manufacturing Technology Institute (AMTI). AMTI is a collaboration between HCC Corporate College, HCC Central, HCC NE College, HCC SE College and HCC’s School of Continuing Education to help prepare future manufacturing career professionals and upgrade incumbent worker skills. During the 2012-2013 fiscal year, an update of the facilities as well as repairs and upgrading of HCC’s 60 welding booths and related equipment began. In addition, upgrades and repairs to the machinery housed in the Machining and Advanced Manufacturing labs at Central College were initiated. Advanced CNC machines are also used at SW College as part of the drafting program. NCCER credentialing for all faculty in these programs has also been completed, together with the immersion of the NCCER curriculum to the courses to commence industry credentialing of students in the program in the 2012-2013 fiscal year. Additional faculty training and credentialing is under assessment based on the information presented in this report. RECOMMENDATIONS FOR FUTURE ACTION The information below reflects the findings, survey feedback, and comments followed by implications for curriculum and specific action items. A district-wide Manufacturing Curriculum Enhancement Task Force has been organized which includes instructional deans and program faculty to review current alignment of curriculum based on research data and the skills summit event. The Task Force will be focused on developing an action plan and timeline to implement necessary enhancements within 12 months or less. P a g e | 16
  • 17. Career and Work Readiness Essential for Manufacturing Sector HCC will review its curriculum to ensure that we continue to emphasize the development of these skills in our workforce students: • Basic Applied Math: Qualified manufacturing workers must have the ability to perform work-related basic arithmetic and technical math calculations (not college algebra) and apply them to work-related situations (division, multiplication, percentages, fractions). • Work Habits: Qualified manufacturing workers must possess behavioral work skills such as reliability, the ability to work in teams, and the ability to communicate effectively with a diversified group of co-workers and supervisors. • Problem Solving: Qualified workers must be trained and demonstrate problem solving and critical thinking skills. • Reading and Basic Work Information Analytical Skills: Qualified workers must demonstrate the ability to locate, synthesize, and apply workplace document information that is presented in graphics and in text. Industry Certifications The integration of technology and the demand for high productivity that dominate the advanced manufacturing sector increasingly require a higher-skilled, safe, and trained manufacturing workforce. Manufacturing skills gaps researchers and HCC Skills Summit employer attendees indicated that industry certifications add validation of the skills and competencies that entry-level workers need to be productive and successful in any manufacturing environment. a. The Manufacturing Skills Certification System endorsed by the National Association of Manufacturers (NAM) is a series of credentials applicable across all sectors in the manufacturing economy. It can be used for new-hire screening and assessment as well as to enhance current worker skill sets. The NAM-endorsed system directly addresses the deficits in manufacturing education and training that are limiting the pool of P a g e | 17
  • 18. qualified candidates for U.S. manufacturing jobs. Certifications are valuable to employers since they are designed to measure a minimum standard of competencies identified by employers as critical when making hiring decisions. HCC’s machining and manufacturing programs will pursue meeting the requirements of the Manufacturing Skills Certification. b. The American Welding Society (AWS) Certified Welder (CW) program test is used in the structural steel, petroleum pipeline, sheet metal, and chemical refinery welding industries. HCC will incorporate the CWS certification preparation for the Basic Welding Level 1 Certificate. The AWS Accredited Test Facility program establishes minimum requirements for test facilities, their personnel, and equipment to qualify for accreditation to test and qualify welders. HCC will assess the necessary requirements to establish an AWS Testing Facility where HCC students can test prior to completing the program, allowing them to earn a Level 1 Certificate and AWS Certified Welder certificate upon completion of their HCC education and increase employability. c. Skills Summit Survey respondents supported NIMS certifications as relevant credentials used for hiring and screening of new personnel. Specific certifications included: Machining Level I & II, Metal Forming Level 1, and Stamping Level 2-3. The National Institute for Metalworking Skills (NIMS) credential is the metalworking industry’s only skills certificate that is based on national standards developed under procedures accredited by the American National Standards Institute. The NIMS credential is used by the industry to recruit, hire, place, and promote skilled candidates at all levels of employment. The NIMS credential is used by education and training institutions as performance benchmarks, often as part of graduation or degree requirements, and/or as the basis for advanced credit. Therefore, the Machining Program will assess the alignment of the NIMS certifications for different levels of HCC’s machining curriculum. d. The Skills Summit Survey respondents also acknowledged the Manufacturing Skills Standard Council (MSSC) Certified Production Technician (CPT) as a relevant P a g e | 18
  • 19. certification for their industry. The CPT certification allows individuals to validate mastery of the core competencies of manufacturing production at the front line (entry-level through front-line supervisor). The CPT program consists of five individual certificate modules: Safety; Quality Practices and Measurement; Manufacturing Processes and Production; Maintenance Awareness; and Green Production. HCC Manufacturing Technology program faculty will assess the alignment of the CPT skills to the courses in the Associate in Applied Science degree in Manufacturing. e. OSHA’s General Industry Outreach Safety training is also a fundamental certification for an entry-level worker’s general awareness on recognizing and preventing hazards in a general industry setting. The Task Force will assess NCCER OSHA training content and identify what additional alignments are needed (if any) and make recommendations regarding the 10-Hour General Industry certification. f. With a large number of adults seeking to obtain new skills or upgrade existing skills, online education delivery options will be assessed to determine courses which could be offered via distance education. Convenient and accessibility of instruction will be assessed by the Task Force as another vehicle to expand access to training and relevant education. In summary, industry certifications are valuable to employers since they are designed to measure a minimum standard of competencies that have been identified by employers as critical when making hiring decisions. Specific relevant industry certifications noted included: • OSHA - 10-hour General Industry Card • AWS - Certified Welder • NIMS - Machining Level I & II, Metal Forming Level 1, and Stamping Level 2-3 • MSSC - Certified Production Technician Equipment and Facilities In partnership with the district inventory control, the Task Force will also develop an assessment of the manufacturing-related instructional programs current equipment, and make P a g e | 19
  • 20. recommendations for the replacement, repairs, or addition of equipment to meet the needs of the industry. Following a new industry cluster approach for workforce program curriculum and equipment and facilities development, a Center for Manufacturing Excellence will be developed in collaboration with all college sites and with credit and non-credit departments. The objective of the Center for Excellence will be to leverage HCC’s district-wide resources and expertise to meet the various areas of relevant manufacturing training without unnecessary duplication. In addition, program facilities capacity and need for improvement, as well as planning of new college expansions, will be reviewed by the Task Force to provide further recommendations. Accreditations and Professional Development The Office of the Associate Vice Chancellor of Workforce Instruction will coordinate the process of relevant third-party accreditations and faculty professional development and certifications for all manufacturing-related programs. The welding program facility at Central College will pursue approval as an American Welding Society Testing Site. The machining and manufacturing programs will pursue meeting the requirements of the Manufacturing Skills Certification System endorsed by the National Association of Manufacturers and also the National Institute for Metalworking Skills. Professional development objectives for faculty will focus on standards from AWS, MSSC, NAM, and NIMS. Workforce Dual Credit Partnerships and Career Pathways Through curriculum enhancement and increased instructional capacity, the college will continue to expand workforce career pathways partnerships with local school districts to provide high schools students the opportunity to earn a college certificate while completing their high school diploma. Current dual credit partnerships, such as the Houston Innovative Learning Zone Schools with HISD, provide pathways to college for many students who seek alternative academic pathways to college that will allow them to also quickly qualify for employment and earn industry credentials. P a g e | 20
  • 21. Grants and Employer Partnerships Once the accreditations and industry certifications are embedded into the curriculum, HCC will also increase its capacity to deliver relevant employer contract training projects. In addition, federal, state, and private foundation grant opportunities will be assessed to help support the continual upgrading of the curriculum, faculty professional development, and student industry certifications options. Through the new industry cluster organizations, an Industry Advisory Committee will also be developed to continue to provide a more global perspective of industry trends and HCC’s manufacturing programs relevance to meeting employer needs. SUMMARY Almost one-third of new job openings between 2010 and 2020 are going to require professional technical skills, as baby boomers retire and new jobs are created. Manufacturing is essential and very important to the economic development of both our region and state. Modern manufacturing is experiencing a renaissance and technology has transformed the workplace and the necessary skills sets for manufacturing workers. Industry credentials have become a third-party benchmark of the learning objectives of the traditional academic education and training. As a result, Houston Community College is in the process of updating our curriculum to provide students in these programs the necessary educational foundation for success and long-term career pathways. HCC also has the opportunity to add relevant industry certifications as part of the completion of their professional certificate and/or associate degree program. Furthermore, the college has committed to make necessary facilities and equipment enhancements to build additional capacity to meet the high demand for graduates of these programs by regional employers. HCC is ideally positioned to provide both applied career and technical preparation as well as the applied mathematics, basic technology skills, critical thinking, work readiness, problem solving, and teamwork competencies that the new millennium workplace demands. The integration of P a g e | 21
  • 22. relevant, focused, and applied academic learning and workforce readiness offered by HCC can lead to both further education and job skills, resulting in better prepared graduates and successful employees. Active employer engagement and partnerships in the form of additional internship and co-op experiences, equipment donation, and/or faculty resources will also be a focus of HCC workforce instruction developments. These opportunities will provide students with applied experience in supervised formats while giving employers a closer view of the pipeline of future trained and skilled staff. In addition, internship programs provide employers a real opportunity to provide direct feedback to instructional leaders of the learning outcomes achieved by the students and/or the need to enhance curriculum. As the community college of Houston, and for Houston, HCC has been offering workforce training doing for decades, providing the educational means for individuals to enter the workforce. The new focus on high-growth, high-demand workforce training such as manufacturing will serve the citizens and regional economic development well. In summary, the summit feedback provided direct employer feedback that the college is incorporating into its curriculum. HCC workforce efforts are committed to enhance employer engagement, align curriculum to relevant industry certifications, build collaborative career and technical education pathways with the local schools districts, and offer a system of stackable workforce certificates towards associates degrees with articulations to four year universities to meet the manufacturing workforce needs and provide students successful job and career opportunities. P a g e | 22