Hezel-CSUEB Online Programs Market Analysis Report.doc

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Hezel-CSUEB Online Programs Market Analysis Report.doc

  1. 1. Assessment of New Online Program Opportunities Prepared for California State University East Bay December 17, 2007 Hezel Associates, LLC 731 James Street, Suite 300 Syracuse, NY 13203 315-422-3512 hezel@hezel.com
  2. 2. Assessment of New Online Program Opportunities EXECUTIVE SUMMARY Over many years the CSU system, among all institutions in California, has been a leader in the development of distance and online learning. Numerous CSU campuses have competed for ascendancy in online learning within their regions, within California, and elsewhere. With three campus locations in California’s East Bay region, California State University East Bay is well established in one of the most vibrant and growing regions of the United States. As part of the California State University System, CSU East Bay has had access to a number of initiatives aimed at establishing a greater online presence throughout the system. The CSU system as a whole and peer CSU campuses have been slow to act, however, and with the support of a new President and the administration, CSU East Bay is poised to set the standard for online program development in the system with its Online Campus Initiative. The Online Campus Initiative seeks to expand the reach of CSU East Bay and find new revenue streams by identifying high-need programs that will generate significant new enrollments for the university. To this end, CSU East Bay leadership also realizes that to be successful in its expansion efforts it must have sound market research to inform program development and expansion. CSU East Bay contracted with Hezel Associates to conduct a study the goal of which is to identify and assess program opportunities for inclusion in the Online Campus Initiative. To meet these objectives, we conducted numerous layers of secondary research, including an environmental scan, a benchmarking activity of competitive online institutions, and program-specific research for 12 prospective programs. The environmental scan describes the composition of the East Bay region and demographic and economic trends in the seven-county region. In the benchmarking scan we studied five competitive online institutions, comparing and contrasting their online offerings to those that CSU East Bay considered for this project. The program- specific research consists of descriptions of 12 programs collaboratively identified by Hezel Associates and CSU East Bay, including a job market overview, identification of demand drivers, accreditation-related information, and a competitive analysis. The 12 programs considered in this repot are: • Bachelor’s in Construction Management • Bachelor of Science in Network Systems • Bachelor of Science in Database Management • Bachelor of Science in Software Engineering • Bachelor of Science in Business Administration • Bachelor of Science in Sustainable Energy Management • Bachelor of Arts in Liberal Studies • Master of Business Administration • Master of Healthcare Administration • Master of Arts in Early Childhood Education Hezel Associates, LLC i
  3. 3. Assessment of New Online Program Opportunities • Master of Leisure Services Administration • Master of Public Administration Based on the environmental and benchmarking scans and the secondary research regarding the 12 potential online degree programs, Hezel Associates offers these recommendations and suggestions for future research regarding the development of CSU East Bay’s Online Campus Initiative. Some of the 12 programs researched seem to be strong opportunities for development, while others may require future research before a conclusion can be drawn. The secondary research also yielded ideas for additional programs that should be considered in greater depth in the future. These, too, are included in the suggestions for future research, below. Hezel Associates always recommends using primary research to verify market opportunities, but based on the secondary research collected we are reasonably satisfied that the following represent promising opportunities for CSU East Bay in its Online Campus Initiative: • Construction Management: The construction industry is projected to continue to grow in California, which will create strong demand for qualified managers. Hezel Associates identified only one competitive online program in Construction Management (National University), which does not have the accreditation of American Council for Construction Education. CSU East Bay should continue developing its bachelor’s in Construction Management program, and should actively pursue ACCE accreditation. • Software Engineering, Database Management and Network Systems: Software Engineering and Database Management are among the fastest growing occupations in California, and are projected to have shortages of qualified individuals. Demand comes not only from the IT industry but also from other fast growing industries such as Biotechnology and Geospatial. The IT industry as a whole continues to grow rapidly, particularly in California, and without much online competition from California institutions for any of the three programs, CSU East Bay seems to have a strong opportunity in each of the three markets. • Bachelor of Science in Business Administration: Hezel Associates did not identify any CSU campuses that offer an online BA or BS in Business Administration program. Although there are many online BSBA or similar programs available nationwide, the lack of any programs offered by a CSU or UC campus makes this a strong opportunity. A BSBA is often an ideal program for prospective students wishing to complete a baccalaureate degree, and all of the demand factors are positive in this market. CSU East Bay should include a BSBA in its initial Online Campus Initiative portfolio. • Health Care Administration: Health care is one of the largest and fastest growing industries in California. There are many competitors, but none online from California, which gives CSU East Bay an opportunity to capture part of the Hezel Associates, LLC ii
  4. 4. Assessment of New Online Program Opportunities market. It may make sense to create a Health Care Administration specialization within an MBA program. Primary research could be used to identify which is the optimal program: an MHA or MBA with a specialization, but the overall market is strong. The following programs seem to be good opportunities based on the secondary research, but future research and/or planning may be necessary to verify and/or capitalize on the opportunities. • Sustainable/Renewable/Green Energy Management: There are very few programs nationwide that addresses the issue of green/renewable energy management, and fewer online. The industry has become a priority for both the state and federal governments for a number of reasons, including rising gas prices, limited supply, and the political and economic risks that surround conventional energy resources. There has been a great deal of activity in this area in California, but with so few programs and even fewer online programs, it is unclear whether this is a good market for an online program. Additional research should be conducted, perhaps including interviews with experts in the field and possibly primary survey research. • Liberal Studies: Liberal Studies is a broad program, but one that is often a good option for students seeking a degree completion program that is not in business. The biggest obstacle for CSU East Bay in this market is the competition from CSU Chico. CSU Chico’s online program seems well established and is found easily using many search terms. Competing with CSU Chico in this market may not be wise, and further study is warranted to verify the market and/or to determine if there are ways to differentiate a new program. This degree should be included in potential future primary research. • Master of Business Administration: The online market for MBAs is very competitive to the point of possibly being saturated. On one hand, an MBA is often a cornerstone of any institution’s online portfolio. Also, only CSU Dominguez Hills currently has an online MBA, which could mean that there is ample opportunity for another CSU institution to develop an online degree. On the other hand, the online MBA market is defined by intensive marketing and recruitment efforts, making entry very expensive. CSU East Bay should strongly consider ways to differentiate its MBA should it include the program in the Online Campus Initiative. Primary research may be useful to identify possibilities for differentiation. CSU East Bay should also pursue specialty accreditation from AACSB and/or ACBSP for its online MBA, if it is included in the Online Campus Initiative. • Public Administration: Similar to the MBA market, although to a lesser extent, the online MPA market is competitive and perhaps saturated. Here again the only California public institution with an online program is CSU Dominguez Hills, which seemingly affords CSU East Bay an opportunity in this market. Also similar to the MBA, differentiation will be important in this market, and CSU Hezel Associates, LLC iii
  5. 5. Assessment of New Online Program Opportunities East Bay may want to consider using primary research to inform development and marketing. Once again, specialty accreditation can be a key differentiator. • Leisure Services Administration: The leisure and recreation industry is growing very fast, particularly in California. Hezel Associates did not identify any California competitors offering a master’s degree online. Nationally it seems that there are more baccalaureate programs and specializations within an MBA program than fully online master’s programs in leisure or recreation. While the market seems promising, primary research to verify market demand may be warranted. The only program of the 12 that does not appear to be a strong opportunity is the Master of Arts in Early Childhood Education. Although there is scant online competition, there are no real demand drivers that would encourage prospective students to pursue such a degree. Education-related degree markets are highly driven by state, and to a lesser extent federal policy, and barring any increase in the requirements of ECE teachers, a master’s degree program will not have broad appeal for the foreseeable future. Rather, CSU East Bay may want to consider studying a baccalaureate program that prepares students for a CDP, or even an associate’s degree program in the future. The environmental scan and program-specific research also revealed additional program areas that CSU East Bay should research in the future for possible inclusion in the Online Campus Initiative. These include: • Allied health related degrees: Examples include Community Health Education and Environmental Health and Safety, among many other options. The health care industry is not only the fast growing industry in the U.S. and in California, but there are projected shortages of qualified personnel in many health-related occupations. A wide range of allied health related degree programs, both undergraduate and graduate, should be considered for future research. • Geospatial related degrees: In California, the occupations identified by the Department of Labor as “geospatial technology-related” are expected to grow much faster than average between 2004 and 2014, adding nearly 100,000 new jobs. Employment projections note the largest demand will be for computer software engineers, systems software and applications, as well as database administrators. CSU East Bay may want to consider researching the opportunity afforded by developing a Geospatial specialization within one or more of the IT- related degrees studied in this report, or in a graduate or stand-alone degree. • Biotechnology degree options: Biotechnology is one of the fast growing new industries. In California alone this industry is projected to employ an estimated 250,000 people by 2015, an increase of 150,000 jobs from 2006. Most biotechnology jobs in California are located in the four major biotechnology regions: San Diego, Los Angeles/ Orange, the San Francisco Bay Area and Sacramento/Stockton. Some of the top growth occupations include medical Hezel Associates, LLC iv
  6. 6. Assessment of New Online Program Opportunities scientists, veterinary technologists and technicians, biological technicians, and veterinary assistants and others. Similar to the possibilities related to the Geospatial industry, CSU East Bay should study the market opportunity of developing Biotechnology-related degree programs or specializations. Hezel Associates, LLC v
  7. 7. Assessment of New Online Program Opportunities TABLE OF CONTENTS Assessment of New Online Program Opportunities................................................i Prepared for.............................................................................................................i California State University East Bay........................................................................i December 17, 2007..................................................................................................i Executive Summary.................................................................................................i Introduction.............................................................................................................1 Environmental Scan................................................................................................3 .A Demographics...............................................................................................3 .B Educational Attainment ................................................................................6 .C Projected Labor Force Growth in California State Industries.......................7 .D Employment by Industry and County............................................................9 .E Selected Description of High-Growth industries in California.....................18 .1 Biotechnology Industry..........................................................................18 .2 Construction Industry.............................................................................18 .3 Geospatial Industry................................................................................19 .4 Health Care............................................................................................19 .5 Information Technology (IT)...................................................................20 .6 Renewable Energy.................................................................................20 Benchmarking Scan..............................................................................................22 Potential Programs Overview...............................................................................27 .A Bachelor’s in Construction Management....................................................27 .1 Job Market Overview.............................................................................27 .2 Education and Training Requirements..................................................28 .3 Demand Drivers.....................................................................................28 .4 Accreditation and Certification...............................................................29 .5 Competitive Analysis..............................................................................30 .B Undergraduate Degrees in Information Technology Fields........................32 .1 Job Market Overview.............................................................................32 .2 Demand Drivers ....................................................................................35 .3 Accreditation..........................................................................................36 .4 Competitive Analysis..............................................................................36 .C Bachelor of Science in Business Administration........................................41 .1 Business Degree Enrollment Overview ................................................41 .2 Job Market Overview ............................................................................42 .3 Demand Drivers.....................................................................................43 .4 Accreditation .........................................................................................44 .5 Competitive Analysis..............................................................................45 .D Bachelor of Science in Sustainable Energy Management.........................48 .1 Job Market Overview.............................................................................48 .2 Selected Renewable Energy Programs in California............................49 .3 Demand Drivers.....................................................................................50 .4 Accreditation .........................................................................................51 .5 Competitive Analysis..............................................................................51 .E Bachelor of Arts in Liberal Studies..............................................................52 Hezel Associates, LLC vi
  8. 8. Assessment of New Online Program Opportunities .1 Job Market Overview ............................................................................52 .2 Demand Drivers ....................................................................................53 .3 Accreditation .........................................................................................54 .4 Competitive Analysis..............................................................................54 .F Master of Business Administration..............................................................54 .1 Job Market Overview ............................................................................54 .2 Demand Drivers.....................................................................................57 .3 Accreditation..........................................................................................58 .4 Competitive Analysis..............................................................................58 .G Master of Healthcare Administration..........................................................59 .1 Job Market Overview ............................................................................59 .2 Demand Drivers.....................................................................................60 .3 Accreditation..........................................................................................61 .4 Competitive Analysis..............................................................................61 .H Master of Arts in Early Childhood Education .............................................63 .1 Job Market Overview.............................................................................63 .2 Early Childhood Education State Programs..........................................64 .3 Education and Training Requirements..................................................66 .4 Demand Drivers.....................................................................................66 .5 Accreditation .........................................................................................67 .6 Competitive Analysis..............................................................................67 .I Master of Leisure Services Administration...................................................68 .1 Job Market Overview for Leisure Services Managers...........................68 .2 Demand Drivers ....................................................................................70 .3 Accreditation..........................................................................................71 .4 Competitive Analysis..............................................................................71 .J Master of Public Administration ..................................................................72 .1 Job Market Overview ............................................................................72 .2 Education and Training Requirements..................................................74 .3 Demand Drivers.....................................................................................74 .4 Accreditation..........................................................................................75 .5 Competitive Analysis..............................................................................75 Recommendations and Suggestions for Future Research...................................78 Hezel Associates, LLC vii
  9. 9. Assessment of New Online Program Opportunities INTRODUCTION Over many years the CSU system, among all institutions in California, has been a leader in the development of distance and online learning. Numerous CSU campuses have competed for ascendancy in online learning within their regions, within California, and elsewhere. With three campus locations in California’s East Bay region, California State University East Bay is well established in one of the most vibrant and growing regions of the United States. As part of the California State University System, CSU East Bay has had access to a number of initiatives aimed at establishing a greater online presence throughout the system. The CSU system as a whole and peer CSU campuses have been slow to act, however, and with the support of a new President and the administration, CSU East Bay is poised to set the standard for online program development in the system with its Online Campus Initiative. The Online Campus Initiative seeks to expand the reach of CSU East Bay and find new revenue streams by identifying high-need programs that will generate significant new enrollments for the university. To this end, CSU East Bay leadership also realizes that to be successful in its expansion efforts it must have sound market research to inform program development and expansion. CSU East Bay contracted with Hezel Associates to conduct a study the goal of which is to identify and assess program opportunities for inclusion in the Online Campus Initiative. To meet these objectives, we conducted numerous layers of secondary research, including an environmental scan, a benchmarking activity of competitive online institutions, and program-specific research for 12 prospective programs. The 12 programs considered in this repot are: • Bachelor’s in Construction Management • Bachelor of Science in Network Systems • Bachelor of Science in Database Management • Bachelor of Science in Software Engineering • Bachelor of Science in Business Administration • Bachelor of Science in Sustainable Energy Management • Bachelor of Arts in Liberal Studies • Master of Business Administration • Master of Healthcare Administration • Master of Arts in Early Childhood Education • Master of Leisure Services Administration • Master of Public Administration This report begins with the environmental scan, which describes the composition of the East Bay region and demographic and economic trends in the seven-county region. Next is the benchmarking scan of five competitive online institutions, comparing and contrasting their online offerings to those that CSU East Bay considered for this project. Hezel Associates, LLC 1
  10. 10. Assessment of New Online Program Opportunities The bulk of the report consists of descriptions of 12 programs collaboratively identified by Hezel Associates and CSU East Bay, including a job market overview, identification of demand drivers, accreditation-related information, and a competitive analysis. We conclude with recommendations for programs to pursue developing in the Online Campus Initiative, as well as additional recommendations related to programs that require additional verification and those that should be studied in the next phase of research. Hezel Associates, LLC 2
  11. 11. Assessment of New Online Program Opportunities ENVIRONMENTAL SCAN .ADEMOGRAPHICS California’s population is slightly younger than the national population, and more diverse—with a substantially larger percentage of Hispanics. Despite this fact, California faces an aging workforce and the loss of skilled workers due to retirement. Twenty percent of California workers were 45-to-54 years old in 2000. Many planners anticipate this proportion will grow even more rapidly over the next two decades unless a large influx of younger workers comes into California. 1 Figure 1.California Population Projections 2000 3,900,000 2010 3,400,000 2020 2,900,000 2030 2,400,000 1,900,000 1,400,000 900,000 400,000 4 9 4 9 4 9 4 9 4 9 4 9 4 9 4 9 4 + 0- 5- 0 -1 5 -1 0 -2 5 -2 0 -3 5 -3 0 -4 5 -4 0 -5 5 -5 0 -6 5 -6 0 -7 5 -7 0 -8 85 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 The three counties with the largest population in the San Francisco Bay Area are Alameda, Contra Costa and Santa Clara Counties. An estimated 2006 population of more than 1.4 million ranks Alameda County as the seventh most populous county in California. By the year 2020, the county’s population is projected to reach almost 1.7 million. Contra Costa County’s current population exceeds one million residents and by the year 2020 it is projected that the county will be home to more than 1.2 million persons. The largest county in the San Francisco Bay Area is Santa Clara which measures approximately 1,316 square miles and is home to more than 1.7 million persons; by the year 2020 the population is forecasted to grow to nearly two million residents.2 Marin County’s 588 square miles of rural coastline and inland valleys are ideal for farm production and offer open space for tourism and recreation, while the urbanized bay 1 California Labor Market and Economic Analysis, 2007, Labor Market Information Division Employment Development Department, May 8, 2007, http://www.calmis.ca.gov/specialreports/Labor-Market- Economic-Analysis-2007.pdf, Accessed November, 15, 2007 2 California Department of Finance, http://www.dof.ca.gov/Research/Research.php, Hezel Associates, LLC 3
  12. 12. Assessment of New Online Program Opportunities corridor is dominated by small- and medium-sized businesses. According to California’s Department of Finance, Marin is home to almost 256,000 persons, making it the smallest county in the region. Through the year 2020, the California Department of Finance projects the county’s population will maintain a similar level, with approximately 260,000 residents. San Francisco County’s current population exceeds 700,000 and projections indicate the county’s population will reach 844,000 by the year 2020. The Department of Finance estimates San Mateo’s population in 2006 at more than 700,000, with a projected population of more than 761,000 residents in 2020. Solano County is the second smallest county in the region, with a population of 411,680. By the year 2020, Solano County’s population is projected to reach more than 503,000. 3 The table and figures below can be used to project the overall future undergraduate and graduate enrollment. Table 1.Population by County, 2006 Population by Age Total 0-4 5-9 10-14 15-19 20-24 25-34 35-44 County population years years years years years years years Alameda 1,457,426 104,414 95,525 97,295 96,119 95,565 200,826 238,500 Contra Costa 1,024,319 66,485 68,100 74,202 73,161 66,307 127,218 154,780 Marin 248,742 13,916 13,060 13,528 13,674 13,082 24,333 37,926 San Mateo 705,499 50,213 44,332 42,868 42,529 40,292 82,569 115,763 San Francisco 744,041 40,905 28,930 24,938 28,890 42,138 129,211 149,435 Santa Clara 1,731,281 133,236 118,720 113,216 111,014 108,928 243,072 296,813 Solano 411,680 28,612 29,310 30,362 31,467 28,993 56,305 60,595 Source: U.S. Census Bureau, 2006 American Community Survey, http://factfinder.census.gov/home/saff/main.html?_lang=en 3 California Counties’ Snapshot, 2007 Hezel Associates, LLC 4
  13. 13. Assessment of New Online Program Opportunities Figure 2.Population Projections by County, 2000-2050 3,000,000 Alameda 2,500,000 Contra Costa 2,000,000 Marin 1,500,000 San Francisco 1,000,000 San Mateo 500,000 Santa Clara 0 Solano 2000 2010 2020 2030 2040 2050 Figure 3.California Public Postsecondary Undergraduate Enrollment Projections, 2006 2,000,000 UC 1,800,000 CSU 1,600,000 CCC 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Hezel Associates, LLC 5
  14. 14. Assessment of New Online Program Opportunities Figure 4.California Public Postsecondary Graduate Enrollment Projections, 2006 UC 100,000 CSU 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 00 01 02 03 04 05 06 07 08 09 10 12 14 11 13 15 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 .BEDUCATIONAL ATTAINMENT The California labor force is highly skilled. In 2006, two-fifths (40.5 percent) of employed Californians had a college degree, over three quarters (77.3 percent) of whom had a bachelor’s degree or higher. On the other hand, there were a large number of California adults with little education, as 16 percent of workers 25 to 54 years had not received a high school diploma or GED. The employment opportunities of many adults are also limited by poor English skills. One-third of California workers were foreign born in 2006. One-tenth of California workers in 2006 lived in a household where all adults spoke only Spanish. 4 4 California Labor Market and Economic Analysis, 2007, Labor Market Information Division Employment Development Department, May 8, 2007, http://www.calmis.ca.gov/specialreports/Labor-Market- Economic-Analysis-2007.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 6
  15. 15. Assessment of New Online Program Opportunities Table 2.Educational Attainment by County, 2006 Educational Attainment Population High Some Graduate or 25 years school college, no Associate's Bachelor's professional County and over graduate degree degree degree degree 968,508 216,536 163,242 73,054 222,270 151,363 Alameda (100%) (22.4%) (16.9%) (7.5%) (22.9%) (15.6%) Contra 676,212 137,295 150,989 55,204 160,729 90,809 Costa (100%) (20.3%) (22.3%) (8.2%) (23.8%) (13.4%) 180,442 25,424 34,095 11,352 53,097 41,105 Marin (100%) (14.1%) (18.9%) (6.3%) (29.4%) (22.8%) 485,413 92,703 87,588 36,250 132,108 82,571 San Mateo (100%) (19.1%) (18.0%) (7.5%) (27.2%) (17.0%) San 578,500 80,683 86,960 31,825 182,410 109,059 Francisco (100%) (13.9%) (15.0%) (5.5%) (31.5%) (18.9%) Santa 1,146,014 209,754 182,896 89,246 288,079 217,559 Clara (100%) (18.3%) (16.0%) (7.8%) (25.1%) (19.0%) 262,936 70,149 68,024 27,250 41,202 17,956 Solano (100%) (26.7%) (25.9%) (10.4%) (15.7%) (6.8%) Source: U.S. Census Bureau, 2006 American Community Survey, http://factfinder.census.gov/home/saff/main.html?_lang=en .CPROJECTED LABOR FORCE GROWTH IN CALIFORNIA STATE INDUSTRIES • The fastest growing occupations overall are concentrated in healthcare, education, and computer related fields. • 90 percent of the industries in California that are projected to grow over the next decade are in the service-producing industries: administrative and support services; healthcare services; retail trade; accommodation and food services; and professional, scientific and technical services. Construction, which is a goods- producing industry, is expected to generate almost 163,000 new jobs by 2014. • Long-term top growth industries include software publishers with a growth rate of 39 percent, computer systems design with a projected growth rate of nearly 44 percent, and management, scientific, and technical consulting services which are projected to grow by over 46 percent. • Growing health-related industries include community care facilities for the elderly, offices of health practitioners, home health care services, outpatient care centers, and psychiatric and substance abuse hospitals. Growth rates for these industry sub-sectors range from 32 percent for psychiatric and substance abuse hospitals to 49 percent for home health care services. • The 50 occupations with the largest forecasted growth over the next decade are expected to generate nearly 1.4 million new jobs and almost 1.8 million additional opportunities due to vacancies that will be refilled when an individual Hezel Associates, LLC 7
  16. 16. Assessment of New Online Program Opportunities retires, changes careers or leaves for personal reasons—3.2 million total job openings by 2014. • The top ten largest skilled occupations in California account for growth of approximately 349,200 new jobs in the next decade. The top growth occupations include general and operations managers, elementary school teachers, computer software engineers (applications) and (system software); accountants and auditors, secondary school teachers, and computer systems analysts and others. Most of these occupations require a Bachelor’s degree. 5 Figure 5.California Selected Labor Force and Employment Growth Computer 10.0 Systems Design 5.0 Software Publishers 0.0 Growth -5.0 Scientific Research -10.0 & Developme nt -15.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Figure 6. California Selected Labor Force and Employment Growth Construction 8.0 6.0 Educational 4.0 and Health Services 2.0 Liesure and Hospitality 0.0 -2.0 Professional and -4.0 Business Services 2001 2002 2003 2004 2005 2006 2007 2008 2009 5 California Labor Market and Economic Analysis, 2007, Labor Market Information Division Employment Development Department, May 8, 2007, http://www.calmis.ca.gov/specialreports/Labor-Market- Economic-Analysis-2007.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 8
  17. 17. Assessment of New Online Program Opportunities Source: CA Employment Development Department. All labor statistics reflect Benchmark 2006 data .DEMPLOYMENT BY INDUSTRY AND COUNTY Figure 7.Alameda County Employment by Industry, 2006 Annual Average Trade, Transportation and Utilities 19% Government 19% Educational and Health Services 11% Manufacturing 11% Leisure and Hospitality 8% Professional, Scientific and Technical Services 7% Construction 6% Administrative and Support and Waste Services 5% Financial Activities 5% Other Services 3% Information 2% Management of Companies and Enterprises 2% 0% 5% 10% 15% 20% 25% In Alameda County, the industries that showed the largest growth during the period 2002–2006 include financial activities, construction, and educational and health services, increasing by a combined total of 13,500 jobs. Within financial activities, the finance and insurance component accounted for almost all of the growth, with a gain of 4,400 or 21 percent. Construction added 4,600, growth of nearly 12 percent. Educational and health services employment increased by 4,200 jobs, with equal gains of 2,100 in the educational services and health care and social assistance components.6 6 Alameda County Snapshot, 2006 http://www.calmis.ca.gov/file/cosnaps/alamesnap.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 9
  18. 18. Assessment of New Online Program Opportunities Figure 8.Largest Growth Industries in Alameda County, Employment Change 2002-2006 5,000 4,700 4,600 Financial 4,200 Activities 4,000 3,600 Construction 3,000 900 2,400 2,000 1,500 1,500 1,700 Educational and Health 1,000 500 900 700 800 Services 0 -300 -1,000 -700 2002-2003 2003-2004 2004-2005 2005-2006 Total Change 2002-2006 Source: CA Employment Development Department. All labor statistics reflect Benchmark 2006 data Figure 9.Contra Costa County Employment by Industry, 2006 Annual Average Trade, Transportation and Utilities 17% Government 15% Educational and Health Services 12% Financial Activities 9% Leisure and Hospitality 9% Construction 8% Professional, Scientific and Technical Services 7% Manufacturing 6% Information 4% Other Services 3% Management of Companies and Enterprises 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Contra Costa County added 5,900 jobs since 2002, growth of just less than two percent. Three industries contributed a total of 9,800 new jobs during the period 2002–2006, including leisure and hospitality, professional and business services, and educational and health services. Within leisure and hospitality, accommodation and food service recorded almost all of the growth (3,400 jobs). Employment gains in professional and business services were distributed among three major sectors: management of companies and enterprises (1,400); professional, scientific and technical services (1,100); Hezel Associates, LLC 10
  19. 19. Assessment of New Online Program Opportunities and administrative and support and waste services (800). Educational and health services gained 3,100, growth of eight percent.7 Figure 10.Largest Growth Industries in Contra Costa County, Employment Change 2002-2006 5,000 4,600 3,400 Leisure and 4,000 3,300 Hospitality 3,100 3,000 2,600 2,000 1,200 1,000 Professional 700 800 700 800 1,000 500 and 100 Business 0 Services -300 -1,000 Educational -2,000 and Health Services -3,000 -2,900 -4,000 2002-2003 2003-2004 2004-2005 2005-2006 Total Change 2002-2006 Source: CA Employment Development Department. All labor statistics reflect Benchmark 2006 data 7 Contra Costa County Snapshot, 2006 http://www.calmis.ca.gov/file/cosnaps/contrsnap.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 11
  20. 20. Assessment of New Online Program Opportunities Figure 11.Marin County Employment by Industry, 2006 Annual Average Trade, Transportation and Utilities 17% Educational and Health Services 15% Government 14% Leisure and Hospitality 12% Professional, Scientific and Technical Services 10% Financial Activities 9% Construction 7% Administrative and Support and Waste Services 5% Other Services 4% Manufacturing 2% Management of Companies and Enterprises 2% Information 2% Agriculture 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Professional and business services in Marin County recorded growth in professional, scientific, and technical services (up 1,300 jobs) and management of companies and enterprises (up 600 jobs). Educational and health services gained 400 jobs, with health care and social assistance employment accounting for all of the growth. Since 2002, other services posted 300 new jobs, growth of 6.5 percent.8 8 Marin County Snapshot, 2006, http://www.calmis.ca.gov/file/cosnaps/marinsnap.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 12
  21. 21. Assessment of New Online Program Opportunities Figure 12.Largest Growth Industries in Marin County, Employment Change 2002-2006 2,500 2,100 Professional and 2,000 Business Services 1,500 Educational 1,000 and Health 900 1,000 Services 500 400 400 300 300 300 200 Other 100 100 100 0 Services -100 -200 -500 -300 2002-2003 2003-2004 2004-2005 2005-2006 Total Change 2002-2006 Source: CA Employment Development Department. All labor statistics reflect Benchmark 2006 data Figure 13.San Francisco County Employment by Industry, 2006 Annual Average Government 16% Leisure and Hospitality 14% Trade, Transportation and Utilities 13% Professional, Scientific and Technical Services 13% Financial Activities 11% Educational and Health Services 11% Administrative and Support and Waste Services 6% Other Services 4% Information 3% Construction 3% Management of Companies and Enterprises 2% Manufacturing 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% In 2006, San Francisco County gained 12,300 jobs to total 520,900. During the 2002–2006 years the industries posting the largest gains were: educational and health services, and leisure and hospitality. Within educational and health services, educational services added 2,200 jobs, while health care and social assistance gained 1,900.9 9 San Francisco County Snapshot, 2006, http://www.calmis.ca.gov/file/cosnaps/sanfrsnap.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 13
  22. 22. Assessment of New Online Program Opportunities Figure 14.Largest Growth Industries in San Francisco County, Employment Change 2002-2006 5,000 4,100 Educational 3,800 and Health 4,000 Services 3,000 1,900 2,000 Leisure and 1,300 1,400 1,200 1,100 Hospitality 900 1,000 700 0 -1,000 -600 2002-2003 2003-2004 2004-2005 2005-2006 Total Change 2002-2006 Source: CA Employment Development Department. All labor statistics reflect Benchmark 2006 data Figure 15.San Mateo County Employment by Industry, 2006 Annual Average Trade, Transportation and Utilities 22% Professional, Scientific and Technical Services 11% Leisure and Hospitality 10% Government 10% Educational and Health Services 9% Manufacturing 9% Financial Activities 6% Administrative and Support and Waste Services 6% Information 6% Construction 5% Other Services 3% Management of Companies and Enterprises 2% Agriculture 1% 0% 5% 10% 15% 20% 25% In San Mateo County, three industries that recorded employment gains during the 2002-2006 years were leisure and hospitality, professional and business services, and educational and health services. In the leisure and hospitality industry, both major sectors increased: accommodation and food service (up 1,500); and arts, entertainment, and recreation (up 1,100). Professional and business services growth was concentrated in administrative and support and waste services (up 2,800). Educational and health Hezel Associates, LLC 14
  23. 23. Assessment of New Online Program Opportunities services gained 1,700 jobs, primarily in the health care and social assistance component (up 1,300).10 Figure 16.Largest Growth Industries in San Mateo County, Employment Change 2002-2006 Leisure and 3,000 2,500 2,600 2,200 Hospitality 2,000 1,800 1700 2,000 1,500 1,500 1,000 700 400 Professional 100 100 0 and 0 Business Services -1,000 -500 Educational -2,000 and Health Services -3,000 -4,000 -3,600 2002-2003 2003-2004 2004-2005 2005-2006 Total Change 2002-2006 Source: CA Employment Development Department. All labor statistics reflect Benchmark 2006 data Santa Clara’s employment totals increased in 2006, adding 21,500 jobs or just less than there percent. The largest single-year gain was in professional and business services (up 4,900 jobs), specifically in professional, scientific, and technical employment (up 4,800 jobs). Educational and health services, leisure and hospitality, and information industries recorded the largest gains during the 2002-2006 period. In educational and health services, educational services posted growth of more than 20 percent (5,100 jobs). The accommodation and food services sector, which is the component of leisure and hospitality industry, increased by 5,500 jobs (9.7 percent). The information industry added 4,200 jobs or 12 percent.11 10 San Mateo County Snapshot, 2006, http://www.calmis.ca.gov/file/cosnaps/sanmasnap.pdf, Accessed November, 15, 2007 11 Santa Clara County Snapshot, 2006, http://www.calmis.ca.gov/file/cosnaps/santcsnap.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 15
  24. 24. Assessment of New Online Program Opportunities Figure 17.Santa Clara County Employment by Industry, 2006 Annual Average Manufacturing 19% Trade, Transportation and Utilities 15% Professional, Scientific and Technical Services 12% Educational and Health Services 11% Government 11% Leisure and Hospitality 8% Administrative and Support and Waste Services 6% Construction 5% Information 4% Financial Activities 4% Other Services 3% Management of Companies and Enterprises 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Figure 18.Largest Growth Industries in Santa Clara County, Employment Change 2002-2006 12,000 Educational 9,400 and Health 10,000 Services 8,000 6,600 Leisure and Hospitality 6,000 4,400 4,200 2,700 3,200 4,000 1,900 2,000 2,600 Information 1,800 1,500 1,700 2,000 1,200 100 0 -2,000 -4,000 -2,900 2002-2003 2003-2004 2004-2005 2005-2006 Total Change 2002-2006 Source: CA Employment Development Department. All labor statistics reflect Benchmark 2006 data Industries in Solano County have gained 7,900 jobs since 2002, representing cumulative growth of more than six percent. Construction, trade, transportation, and utilities, and educational and health services led job growth, contributing 7,700 jobs during the years 2002–2006. Construction, the county’s largest industry, gained 3,100 jobs, representing growth of more than 28 percent. Trade, transportation, and utilities added 2,900 jobs, mostly in the transportation, warehousing, and utilities component (1,700). Educational Hezel Associates, LLC 16
  25. 25. Assessment of New Online Program Opportunities and health services recorded growth of more than 11 percent (1,700 jobs), with 1,400 new jobs in the health care sector.12 Figure 19.Solano County Employment by Industry, 2006 Annual Average Trade, Transportation and Utilities 21% Government 20% Health Care and Social Assistance 11% Construction 11% Leisure and Hospitality 10% Professional and Business Services 9% Manufacturing 7% Financial Activities 5% Other Services 3% Agriculture 1% Information 1% Educational Services 1% 0% 5% 10% 15% 20% 25% Figure 20.Largest Growth Industries in Solano County, Employment Change 2002-2006 3,500 Construction 3,100 3,000 2,900 2,500 Trade, Transportation 2,000 1,700 and Utilities 1,500 1,300 1,300 Educational 1,100 900 and Health 1,000 800 700 600 Services 400 400 400 500 0 0 -500 -200 2002-2003 2003-2004 2004-2005 2005-2006 Total Change 2002-2006 Source: CA Employment Development Department. All labor statistics reflect Benchmark 2006 data Solano County Snapshot, 2006, http://www.calmis.ca.gov/file/COsnaps/solansnap.pdf, Accessed 12 December, 3, 2007 Hezel Associates, LLC 17
  26. 26. Assessment of New Online Program Opportunities .ESELECTED DESCRIPTION OF HIGH-GROWTH INDUSTRIES IN CALIFORNIA Critical jobs are linked to the President’s High-Growth Training Initiative, and dovetail with high-growth industries identified by the California Regional Economies Project. High-Growth industries include advanced manufacturing, automotive, biotechnology, construction, geo-spatial, health care, hospitality, information technology, retail, energy, financial services and transportation. 13 .1Biotechnology Industry California has the nation’s largest biotechnology employer base, with approximately 400 biotechnology companies. Most biotechnology jobs in California are located in the four major biotechnology regions: San Diego, Los Angeles/ Orange, the San Francisco Bay Area and Sacramento/Stockton. Today, California’s biotechnology firms employ an estimated 100,000 workers. By 2015, the industry may employ as many as 250,000 workers.14 The Labor Market Information Division completed a study of California’s biotechnology industry in 2004 and determined that it encompasses seven major areas of research and production: agricultural products, biomedical devices, environmental management, food processing, human and veterinary medicines, instrumentation, and pharmaceutical manufacturing. Further findings indicate that occupations in California’s biotechnology industry cross seven major categories: research and development, clinical research, manufacturing and production, regulatory affairs, quality systems, information systems, and marketing and sales. 15 According to this study, the top growth occupations include bioinformatics specialists, which is an emerging occupation that combines the skills set of computer software engineers and database administrators, sales representatives, medical scientists, veterinary technologists and technicians, biological technicians, and veterinary assistants and laboratory animal caretakers. .2Construction Industry The California Regional Economies Project (CREP) and the Center for the Continuing Study of the California Economy distinguish between economic base industries and population serving industries. The CREP refers to construction as a population serving industry. Growth is driven by a growing population’s demand for homes and 13 President’s High Growth Job Training Initiative, http://www.doleta.gov/BRG/JobTrainInitiative/, Accessed November, 16, 2007 14 Under the Microscope, Biotechnology Jobs in California, Employment Development Department, Labor Market Information Division, Information Services Group, Occupational Research Unit, June 2004, http://www.calmis.cahwnet.gov/file/occmisc/Biotech-Part1.pdf, Accessed November 15, 2007 15 California Labor Market and Economic Analysis, 2007, Labor Market Information Division Employment Development Department, May 8, 2007, http://www.calmis.ca.gov/specialreports/Labor- Market-Economic-Analysis-2007.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 18
  27. 27. Assessment of New Online Program Opportunities infrastructure. Top occupations in California’s construction industry include carpenters, construction laborers, dry wall and ceiling tile installers, electricians, painters, plumbers, and first-line supervisors/managers of construction trades. .3Geospatial Industry The geospatial industry is emerging from established industries that use geospatial technologies or require geospatial competencies and is fast becoming an industry of its own. The President’s High Growth Job Training Initiative describes the industry that includes cartographers, photogrammetrists, surveyors, civil drafters, mechanical drafters, and technicians in aerospace engineering, civil engineering, environmental engineering, industrial engineering, surveying, mapping, soil conservationists, range managers, foresters, geological data technicians, and geological sample test technicians.16 Other occupations listed by the American Society for Photogrammetry and Remote Sensing include geographers, physical scientists, computer scientists, geographical information systems analysts, database administrators, and remote sensing scientists.17 California has a significant base for this industry. The state is home to many companies and organizations that provide various geospatial functions including such businesses as the Environmental Systems Research Institute, the California Space Authority, defense and commercial aerospace companies, world-renowned oceanic research centers. In California, the occupations identified by the Department of Labor as “geospatial technology-related” are expected to grow much faster than average between 2004 and 2014, adding nearly 100,000 new jobs across all industries. Employment projections note the largest demand will be for computer software engineers, both systems software and applications; database administrators; electrical and electronic engineering technicians; industrial, environmental and aerospace engineers; industrial engineering technicians, and civil engineering technicians.18 .4Health Care In California, employment in the top 20 high-growth occupations in the health care industry is expected to increase by more than 194,000 between 2004 and 2014. Educational requirements vary widely among the health care occupations. RNs require a bachelor’s or associate degree. California is facing a nursing shortage that is expected to widen over the next two decades, along with a growing demand for other health caregivers. A recent study examined the skills need and demand for 48 health care occupations that provide direct care, administrative support, and operations 16 President’s High Growth Job Training Initiative, http://www.doleta.gov/BRG/JobTrainInitiative/, Accessed November, 16, 2007 17 American Society for Photogrammetry and Remote Sensing, http://www.asprs.org/career, Accessed November, 16, 2007 18 California Labor Market and Economic Analysis, 2007, Labor Market Information Division Employment Development Department, May 8, 2007, http://www.calmis.ca.gov/specialreports/Labor- Market-Economic-Analysis-2007.pdf, Accessed November, 15, 2007 Hezel Associates, LLC 19
  28. 28. Assessment of New Online Program Opportunities support for the industry. Top occupations in California’s health care industry include RNs, nursing aides, physicians and surgeons, home health aides, and medical assistants. Employment in these top five occupations is expected to grow by 124,000 workers between 2004 and 2014. Other top occupations in the industry include pharmacists, dental assistants, and dental hygienists.19 .5Information Technology (IT) In California, the number of workers in 12 high-growth IT occupations is expected to grow by approximately 150,000 between 2004 and 2014. Nearly two thirds of these new jobs will be for computer software engineers (both applications and systems software), computer systems analysts and computer support specialists. Other high-growth IT occupations are network systems and data communications analysts and administrators, computer and information systems managers, computer specialists such as those who direct computer labs, database administrators, computer hardware engineers, and computer programmers.20 .6Renewable Energy To reduce the dependence on Middle East oil and minimize the associated economic risks, the government, both federal and state, made it a priority to introduce various initiatives in order to promote and develop alternative energy sources. States across the U.S. finance solar, biomass and wind projects, launch marketing campaigns for clean power and target economic development dollars to new industries. Examples of some of these actions include pension investments in clean energy technology in California, economic incentives to attract wind developers in Pennsylvania and industry support for fuel cell companies in Ohio and Connecticut. 21 Renewable energy and energy efficiency technologies are driving significant economic growth in the United States. In 2006, these industries generated 8.5 million new jobs, nearly $970 billion in revenue, more than $100 billion in industry profits, and more than $150 billion in increased federal, state, and local government tax revenues. The jobs created were disproportionately for scientific, technical, professional, and skilled workers, and more than 90 percent of the jobs were in private industry. 22 19 Ibid 20 California Labor Market and Economic Analysis, 2007, Labor Market Information Division Employment Development Department, May 8, 2007, http://www.calmis.ca.gov/specialreports/Labor- Market-Economic-Analysis-2007.pdf, Accessed November, 15, 2007 21 2005–2006 Report on State Clean Energy Funds, Investment and Deployment in the U.S. Clean Energy States Alliance, http://www.cleanenergystates.org/Publications/CESA_Biennial_Report_2005-2006.pdf, Accessed November 23, 2007 22 Report: Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century, Management Information Services, Inc. for the American Solar Energy Society, 2007, http://www.ases.org/ASES- JobsReport-Final.pdf, Accessed November 23, 2007 Hezel Associates, LLC 20
  29. 29. Assessment of New Online Program Opportunities The California Energy Commission’s Renewable Energy Program began in 1998 to help increase the amount of renewable electricity used to meet California’s growing demand. This program is based on decades of bipartisan legislative and gubernatorial support for renewable energy that have helped to make California a recognized leader in the field. The state, with its abundant natural resources, has had a long history of support for renewable energy. In 2004, about ten percent of all electricity came from renewable resources such as wind, solar, geothermal, biomass and small hydroelectric facilities. Large hydro plants generated another 15 percent of the electricity.23 California Energy Commission, http://www.energy.ca.gov/renewables/index.html, Accessed 23 November 26, 2007 Hezel Associates, LLC 21
  30. 30. Assessment of New Online Program Opportunities BENCHMARKING SCAN To get an idea for the types of online programs that institutions are offering, Hezel Associates conducted a benchmarking scan of five institutions that Cal State East Bay is likely to compete with in developing its Online Campus Initiative. These five institutions are: • National University, http://www.nu.edu/ • Golden Gate University, http://www.ggu.edu/ • University of Phoenix, http://www.phoenix.edu • Walden University, http://www.waldenu.edu/c/home.htm • California State University, Chico, http://rce.csuchico.edu/online Table 3.Benchmarked Undergraduate Online Programs Undergraduate Business Related Programs Construction Hospitality Institution Management Marketing Accountancy Management Management National University • • • • University of Phoenix • • • • Golden Gate University • • Walden University • • California State University, Chico Hezel Associates, LLC 22
  31. 31. Assessment of New Online Program Opportunities Undergraduate IT Programs Information Information Software Computer Database Institution Technology Systems Engineering Science Management National University • • University of Phoenix • • • Golden Gate University Walden University • California State University, Chico • Other Undergraduate Programs Global Social Criminal Justice Liberal Institution Psychology Studies Science Administration Nursing Studies National University • • • • University of Phoenix • • • Golden Gate University Walden University California State University, Chico • • • Hezel Associates, LLC 23
  32. 32. Assessment of New Online Program Opportunities Table 4.Benchmarked Graduate Online Programs Graduate Business Related Programs Human Electronic Resource Technology Organizational Health Care Institution Business Management Management Leadership Administration National University • • • • • University of Phoenix • • • Golden Gate University • • Walden University • • • California State University, Chico Graduate Education Related Programs Educational and Curriculum Early Instructional and Educational Special Childhood Institution Technology Instruction Administration Education Education National University • • • University of Phoenix • • • • • Golden Gate University Walden University • • • California State University, Chico Hezel Associates, LLC 24
  33. 33. Assessment of New Online Program Opportunities Other Graduate Programs Information Knowledge Public Institution Systems Management Administration Counseling Public Health National University • • • University of Phoenix • • • Golden Gate University • Walden University • • • California State University, Chico Table 5.Potential Online Programs for CSU East Bay Offered by 5 Competitors Undergraduate Programs Construction Energy Network Software Database Business Liberal Institution Management Management Systems Engineering Management Administration Studies National University • • • University of Phoenix • • • Golden Gate University • Walden University • • California State University, • • Chico (on campus) Hezel Associates, LLC 25
  34. 34. Assessment of New Online Program Opportunities Graduate Programs Leisure Early Services Childhood Public Business Health Care Institution Administration Education Administration Administration Administration National University • • • University of Phoenix • • • • Golden Gate University • • Walden University • • California State University, Chico Hezel Associates, LLC 26
  35. 35. Assessment of New Online Program Opportunities POTENTIAL PROGRAMS OVERVIEW .ABACHELOR’S IN CONSTRUCTION MANAGEMENT .1Job Market Overview Construction managers plan, direct, and coordinate a wide variety of construction projects, including the building of all types of residential, commercial, and industrial structures, roads, bridges, wastewater treatment plants, and schools and hospitals. Construction managers may oversee an entire project or just part of a project and, although they usually play no direct role in the actual construction of a structure, they typically schedule and coordinate all design and construction processes, including the selection, hiring, and oversight of specialty trade contractors. They divide all required construction site activities into logical steps, budgeting the time required to meet established deadlines. This may require sophisticated estimating and scheduling techniques and use of computers with specialized software. 24 Employment of construction managers is projected to increase through 2014, due in large part to the increasing complexity of construction projects which is boosting the demand for management-level personnel within the construction industry. More construction managers will be needed as the level of construction activity continues to grow. In addition, opportunities will increase for construction managers to start their own firms.25 In California, the construction industry employs approximately 800,000 workers. By 2010 the construction industry will need approximately 200,000 new workers.26 Employment projections remain strong with the $37 billion in infrastructure bonds and $2 billion per year in transportation funding that were approved by California voters in November 2006, while an additional ten counties approved sales tax increases for another $15 billion to improve transportation infrastructure. With this construction work in the pipeline over the next ten years, the aforementioned estimated need for new construction workers may be conservative.27 24 U.S. Department of Labor, Bureau of Labor Statistics, “Occupational Outlook Handbook, 2006-07”, http://www.bls.gov/oco/ocos005.htm, Accessed November 7, 2007 25 U.S. Department of Labor, Bureau of Labor Statistics, “Occupational Outlook Handbook, 2006-07”, http://www.bls.gov/oco/ocos005.htm, Accessed November 7, 2007 26 California Employment Development Department, http://www.edd.ca.gov/eddhome.htm, Accessed November 20, 2007 27 Building California Construction Careers, http://www.buildingc3.com/doc.asp?id=2631, Accessed November 20, 2007 Hezel Associates, LLC 27
  36. 36. Assessment of New Online Program Opportunities Table 6.Employment Projections for Construction Managers Annual Openings 2004-2014 Due to Total employment Change Growth 2004 Median Annual Education Occupation 2004 2014 Number % Number Earnings Level Construction Managers Bachelor's (U.S. Total) 431,000 475,000 45,000 10.4 $69,870 degree Construction Managers Bachelor's CA 35,400 41,100 5,700 16.1 570 $80,336 degree Source: California Labor Market Info, State and Local Info, http://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/?PAGEID=4, Accessed November, 17, 2007 .2Education and Training Requirements Candidates that are interested in becoming a construction manager need a solid background in: • Building science • Business and management, as well as related work experience within the construction industry • Understanding of contracts, plans, and specifications, and knowledge of construction methods, materials, and regulations • Computers and software programs for job costing, online collaboration, scheduling, and estimating For construction manager jobs, employers increasingly prefer to hire individuals with a bachelor’s degree in construction science, construction management, or civil engineering, as well as industry work experience. Practical industry experience is very important, whether it is acquired through an internship, a cooperative education program, or work experience in a trade or another job in the industry. Graduates from four-year degree programs usually are hired as assistants to project managers, field engineers, schedulers, or cost estimators. An increasing number of graduates in related fields—engineering or architecture, for example—also enter construction management, often after acquiring substantial experience on construction projects or after completing graduate studies in construction management or building science.28 .3Demand Drivers The increasing demand for construction managers comes from the use of sophisticated technology by construction companies and the proliferation of laws setting standards for buildings and construction materials, worker safety, energy efficiency, and environmental protection, which have further complicated the construction process. 28 Ibid Hezel Associates, LLC 28
  37. 37. Assessment of New Online Program Opportunities Advances in building materials and construction methods, the need to replace portions the nation’s infrastructure and the growing number of multipurpose buildings and energy-efficient structures will further add to the demand for more construction managers. More opportunities for construction managers also will result from the need for greater cost control and financial management of projects and to oversee the numerous subcontractors being employed. 29 Although household growth may slow slightly over the coming decade, the demand for residential construction is expected to continue to grow. California’s population also continues to grow, which will fuel demand beyond the national averages. The demand for larger homes with more amenities, as well as for second homes, will continue to rise, especially as the baby boomers reach their peak earning years and can afford to spend more on housing. At the same time, as the number of immigrants increases and as the "echo boomers" (the children of the baby boomers) start to replace the smaller "baby bust" generation in the young adult age groups, the demand for manufactured housing, starter homes, and rental apartments also is expected to increase.30 Employment is expected to grow in nonresidential construction as well due to replacement of many industrial plants that has been delayed for years, and a large number of structures will have to be replaced or remodeled. Construction of schools will also increase to accommodate the children of the “echo” boom generation. Employment in heavy and civil engineering construction is projected to increase due to growth in highway, bridge, and street construction, as well as in maintenance and repairs to prevent further deterioration of the nation’s highways and bridges.31 .4Accreditation and Certification There is a growing movement towards certification of construction managers to ensure that a construction manager has a certain body of knowledge, abilities, and experience. Although certification is not required to work in the construction industry, voluntary certification can be valuable because it provides evidence of competence and experience. Both the American Institute of Constructors (AIC) and the Construction Management Association of America (CMAA) have established voluntary certification programs for construction managers. Requirements combine written examinations with verification of education and professional experience: • AIC awards the Associate Constructor (AC) and Certified Professional Constructor (CPC) designations to candidates who meet its requirements and pass the appropriate construction examinations. 29 U.S. Department of Labor, Bureau of Labor Statistics, “Occupational Outlook Handbook, 2006-07”, http://www.bls.gov/oco/ocos005.htm, Accessed November 7, 2007 30 Ibid 31 U.S. Department of Labor, Bureau of Labor Statistics, “Career Guide to Industries: Construction” http://www.bls.gov/oco/cg/cgs003.htm, Accessed November 7, 2007 Hezel Associates, LLC 29
  38. 38. Assessment of New Online Program Opportunities • CMAA awards the Certified Construction Manager (CCM) designation to practitioners who meet its requirements through work performed in a construction management organization and by passing a technical examination. 32 The American Council for Construction Education (ACCE) is recognized by the Council for Higher Education Accreditation (CHEA) as the accrediting agency for four year baccalaureate degree programs in construction, construction science, construction management, and construction technology, and as the accrediting agency for two year associate-degree programs of a like nature. 33 The mission of ACCE is to be a leading global advocate of quality construction education programs, and to promote, support, and accredit quality construction education programs. The primary goal is promotion and continued improvement of postsecondary construction education; specifically, ACCE accredits construction education programs in colleges and universities that request its evaluation and meet its standards and criteria.34 .5Competitive Analysis Hezel Associates has identified four competitors that CSU East Bay will encounter with its online bachelor’s in construction management program. These include: • National University • California State University, Chico • California Polytechnic State University • ITT Technical Institute Table 7.Institutions Offering an Online Undergraduate Degree in Construction Management Credit Number of Institution Format Type Credits Total Cost Accreditation National University Online Quarter 183 units $49,410 California State University, Chico Classroom Semester 128 units $14,760 ACCE California Polytechnic State University Classroom Quarter 199 units $21,324 ACCE ITT Technical Classroom Institute or Online Quarter 180 credits $76,500 32 U.S. Department of Labor, Bureau of Labor Statistics, “Occupational Outlook Handbook, 2006-07”, http://www.bls.gov/oco/ocos005.htm, Accessed November 7, 2007 33 American Council for Construction Education, http://acce-hq.org/index.htm 34 Ibid Hezel Associates, LLC 30
  39. 39. Assessment of New Online Program Opportunities National University http://www.nu.edu/Academics/Schools/SOET/AppliedEngineering/Degrees/620-4 46.html National University is the second-largest private, nonprofit university in California. The Bachelor of Science in Construction Management program requires 183 credits to graduate. The program costs $270 per credit hour. The school has been accredited by the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges (WASC). This program fulfills the accreditation requirements of the American Council for Construction Education as well as the needs identified by construction industry experts. The program exceeds the normal requirement of 180 quarter units because of these constraints. The Bachelor of Science in Construction Management covers significant components in business, accounting, management and law not normally found in construction programs and prepares students for careers in management, administration and entrepreneurship beyond those in typical construction engineering programs. This degree program will prepare the student for careers such as construction superintendent, field engineer, assistant project manager, project manager, project coordinator, facilities engineer, junior cost estimator, quality and safety controller, and other similar positions. At $270 per credit hour, the total tuition cost of the program is approximately $49,410. California State University, Chico http://www.csuchico.edu/catalog/programs/cmgt/CMGTNONEBS.html In 1989 Chico State University’s Department of Construction Management was established to help satisfy industry demand. Today Chico State’s Bachelor of Science Degree in Construction Management is the largest program of its type in California and one of the largest in the country, and it is fully accredited by the ACCE (American Council for Construction Education). The Bachelor of Science in Construction Management degree curriculum focuses on educating graduates to manage construction operations (including project estimating, bidding, buy-out, and construction project operations) at the project and corporate level. To obtain this degree students complete a 128-unit blend of selected construction management courses plus an appropriate compliment of business, law, math, science, and other University general education courses. Resident full-time tuition is $1,845 per semester. For a student who completes the program in eight semesters, the total cost of tuition would be $14,760. Hezel Associates, LLC 31

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