Ab t th S kAbout the SpeakerMichael D. Albano is the Site Maintenance Leader in Dow s Louisiana Michael D Albano is the Site Maintenance Leader in Dows Louisiana Operations in Plaquemine and a Lead Reliability Director in Dow’s global Chemicals & Energy Division. He presently chairs Dow global teams that oversee industrial cleaning, equipment leak prevention, and contractor operating discipline. p g pMike, his wife Lisa, and their six children currently reside in the Baton Rouge area.Mike graduated from Louisiana State University in 1987 with a Bachelor of g g g y gScience degree in Mechanical Engineering. After one year working as an engineer in gas turbine design for Pratt & Whitney Aircraft, he joined The Dow Chemical Company in 1989 as a mechanical engineer in Louisiana Operations. Mike and his family relocated to Dow’s Texas Operations in Freeport in 1998, and to Dow’s ANGUS Chemical Sterlington Operations in 2003. In 2008, he started his second assignment in Dow s Louisiana Operations.started his second assignment in Do ’s Louisiana OperationsMike has contributed his talents in leadership positions within Dow over the past twenty‐three years in operations, construction, engineering and maintenance for a variety of Dow businesses. He is also a board member and committee co‐chair for the Greater Baton Rouge Industry Alliance, and a board committee co‐chair for the Greater Baton Rouge Industry Alliance and a board member and campaign chair for the Capital Area United Way.
Setting the Stage I was having a discussion on the importance of quality craftsmanship to profitability with a very seasoned plant director. I commented that it is hard to measure craftsmanship… “You sure know it when you DON’T see it” replied the seasoned plant director.
Setting the Stage My observations tell me that manufacturing feels the shortage of truly skilled craftspeople on the U.S. Gulf g y p p Coast. Feedback from contractors who work in the petrochemical industry in this region increasingly h l d h l indicate to me that they have difficulty filling skilled craft roles. craft roles And it is going to get tighter…
March 23, 2012“Moret points to Louisiana’s strong industrial construction labor base as one of the key reasons the state is so well positioned to land such projects.”“ ‘We’re going to have several multibillion dollar construction projects under construction at the same time,’ Moret says.” j t d t ti t th ti ’ M t ”“Louisiana Economic Development Secretary Stephen Moretpredicts Louisiana will land at least five major, new industrial construction projects over the next 12 to 18 months…” Source: http://businessreport.com/section/daily‐reportPM&date=20120325
Notice that after the peak due to large projects, our steady state baseline seems to have increased! Why would we expect it to be different even after this construction boom? What we build, we must maintain This is a permanent opportunit not a must maintain. This is a permanent opportunity, not a temporary one.Source: “GBRIA Special Advertising Section”, enr.com/Texas‐Louisiana/SpecialAd, April 16, 2012
Peter Voser, CEO, Royal Dutch Shell This “gas revolution,” this “golden age of gas,” this “shale gale” is the best, most promising opportunity we have today to make substantial progress towards a cleaner, more secure, more abundant and more affordable energy supply. gy pp y In a speech at the 31st Annual CERA Week Executive Conference, Houston, TX, March 7, 2012.
Rex Tillerson, CEO, ExxonMobil “The transformation unfolding in North America represents a potentially decisive shift in the history of energy” In a speech at the 31st A I h h t Annual CERA Week Executive l CERA W k E i Conference, Houston, TX, March 7, 2012.
Why Is Action Required? Skilled craft labor is already tight ‐ Individuals are frequently brought in from outside of the state to take positions on a temporary basis, and return out of state positions on a temporary basis and return out of state to spend much of the income earned. Significant new demand for labor ‐ due to economic development efforts and the low price of p p natural gas.
Who Benefits?Individuals Local communitiesThe state of LouisianaLouisiana manufacturers and their maintenance and construction contractors i t d t ti t t
What are the Benefits? To individuals ‐ Locally unemployed or under employed individuals will have access to jobs or higher paying jobs due to having the skills necessary to fill these roles. Industry especially desires to attract persons who live in communities directly adjacent to plants.
What are the Benefits? To local communities ‐ Expanded tax base due to spending by a local vs. transient workforce. This will result in increased sales tax and property tax Thi ill l i i d l d revenue. Publicly funded institutions will graduate more craft workers. more craft workers
What are the Benefits? To the state ‐ Expanded tax base due to spending by a local vs. out of state workforce. This will result in increased sales tax revenue. Thi ill l i i d l More people will be able to move out of poverty. The state will be able to attract more industry. Th ill b bl i d
What are the Benefits? To manufacturers and their maintenance and construction contractors ‐ An available, stable, qualified, and cost effective craft workforce that meets qualified and cost effective craft workforce that meets the needs of industry. This can lead to increased profitability, bigger This can lead to increased profitability bigger spending locally, and potential to attract further growth.
Wh d t T i ? Who needs to Train?Associated Builders and Contractors (ABC) and Organized A i d B ild d C (ABC) d O i d Labor – educators of individuals who have already started careers in crafts or have completed all education besides craft training. Increase awareness of these resources and fill to capacity. Train!
Wh d t T i ? Who needs to Train? g ( )p gHigh Schools –Career and Technical Education (CTE) programs and schools are the educator for individuals desiring to enter crafts but still enrolled in high school. Create and increase enrollment in CTE and IBC programs and train more teachers with industry experience. Train!
Who needs to Train? Louisiana Community and Technical College System (LCTCS) and other private technical colleges – Technical Colleges will serve as the educator for individuals desiring to enter crafts upon graduation from high school or receiving a General Educational Development (GED) diploma. di l Direct more students to these institutions, raise awareness of programs and increase dual enrollment. Train!
What are the Training Challenges? Money… it is not inexpensive to train skilled crafts properly… we need to INVEST! Qualified instructors… we need people who can do AND can teach. CTE & IBC programs to bring to the classrooms. Students… these are great jobs, cool jobs, and we Students these are great jobs “cool” jobs and we need to get our message out. Train!
Wh N d t I ti T i i ?Who Needs to Invest in Training?Everyone Industrial Manufacturers Contract Companies Louisiana Construction Education Foundation (LCEF) contributions, contributions Local contributions/High Schools State contributions/LCTCS/LA DOE, State contributions/LCTCS/LA DOE Federal contributions/WIBS’s/WIA, etc. Train!
Wh N d t I ti T i i ?Who Needs to Invest in Training?The manufacturing industry has voluntarily paid for craft training for those in our industry and those who use this training in other industries. We are in our industry and those who use this training in other industries We are still committed but to have growth, we need more investment by the state and community. Since 1985, GBRIA member companies and their contractors have privately Since 1985 GBRIA member companies and their contractors have privately funded craft worker training through a partnership with ABC. Over $25 million has been donated and over 42,000 craft persons have been trained at ABC over this time. Members also pay training fees to various organized labor groups. Similar organizations around the state have made these types of investments as well. Manufacturing also recognizes the investments made by the public sector and other entities. More opportunity makes more investment a wise decision, even when… no, especially when, times are tight.d i i h i ll h i i h Train!
Attract!How Do We Attract Crafts? Build a coalition of stakeholders B ild liti f t k h ld Implement G B ildL i i I l GoBuildLouisiana ( (see www.gobuildalabama.com for example). Support existing programs such as NCCER’s BYF Improve Workforce projections
Wh S t I N d d? Whose Support Is Needed?Industrial alliances and interested parties (GBRIA, LCA, SLCUC, GNOBR, ABC, Organized Labor Organizations, NCCER, U.S. Military, BRT, CURT, etc.).State government, through the Louisiana Governor’s office, Departments of the Executive Branch: Workforce Commission, Workforce Investment Council, Education, Economic Development, Social Workforce Commission Workforce Investment Council Education Economic Development Social Services, Corrections, and Workforce Investment Boards.Board of Elementary and Secondary School Boards (BESE) and Local School Boards and Districts and local School Superintendents and individual schools Louisiana Community and Technical College System (LCTCS)Board of RegentsLegislatureChambers of Commerce (BRAC, Ascension, Iberville, etc.)
What is Next?We have a broad coalition who have agreed to reconvene the Louisiana Craft Workforce Development Board (from 2006). Specific deliverables include: Build relationships between the many individuals groups that are needed for Louisiana to succeed in this Vision. Vision Improve workforce occupation forecasting through closer collaboration with the State. Immediately implement a robust attraction system
Some of the Coalition Collaborators ABC Louisiana Chemical Association Louisiana Association of Business and Industry AFL‐CIO of Louisiana Louisiana Workforce Commission Louisiana Workforce Investment Council L i i W kf I t t C il SLCUC GNOBR Baton Rouge Area Chamber Special thanks to GBRIA and LCEF for sponsoring the first step of facilitation
Source: “GBRIA Special Advertising Section”, enr.com/Texas‐Louisiana/SpecialAd, April 16, 2012