Manufacturing Workforce Development in the Northeast Economic Development Region of Illinois

A Pilot Project Evaluation Report

December 2007

Table of Contents

Executive Summary......

Results

About the Chamber

About “Innovate Now!”

About the Project

About the Workforce Boards of Metropolitan Chicago

About the Researcher

The Goals......

The North East Economic Development Region Manufacturing Projects......

Innovation in the Evaluation Process......

The Evaluation & Technical Assistance Plan:

The Human Capital Wheel

CSSI Manufacturing Project Best Practices

Project Details

Project # NE 26 - Transportation, Warehousing & Logistics

Project # NE 32 - Accelerated Training – CNC Machine Tool Operation

Project # NE 33 - Hispanics in Advanced Manufacturing

Project # NE 34 – College Skills for Success: Implementing an Industry Partnership Program for Incumbent Workers

Project # NE 35 - Skills for Success Bridge Program

Project # NE 36 - CSSI Manufacturing Solution

Project # NE 37 - Manufacturing “Plus” Success

Project # NE 38 - Manufacturing Skills Development Program

Project # NE 39 - Upgrading Integrated Systems Technology Skills of Incumbent Workers

Project # NE 40 - Addressing Shortages in Manufacturing

Project # NE 41 - CSSI Automotive Manufacturing Project

Project # NE 42 - Solid Surface Manufacturing Training Program

Project # NE 44 - Saving Our Core Employment Base: Manufacturing

Project # NE 45 - CSSI Manufacturing Solution

Meeting the Needs of the Workforce Provider Community......

The Provider Wish List

How Did We Do?

Return on Investment

Recommendations

Appendix A Sample Interview Questions

Appendix B: Sample Student Survey

Appendix C: Sample Employer Survey

Appendix D:

Where Do Growth & Jobs Come From? The Role of Innovation

Appendix E: An Excerpt from “What is Appreciative Inquiry?”

Executive Summary

Over the next few years, Northeast Illinois is expected to face annual shortages of more than 4,100 workers in high demand areas in manufacturing, which, if left unfilled, will present major challenges to the region’s economic vitality. Through an unprecedented network of partnerships, the Critical Skill Shortage Initiative (CSSI) aims to build strong “pipelines” of qualified workers for key industry sectors, so that the employer needs of tomorrow are being met with targeted training programs today. For the worker this presents an opportunity to learn skills that will be in demand and provide occupations that pay livable wages and benefits.

In the Northeast Economic Development Region (EDR) over $1.7 million in Governor’s Reserve Workforce Investment Act funds was invested to implement creative solutions aimed at addressing the manufacturing industry’s workforce needs. An additional $2 million in leveraged and redirected resources, consisting of both public and private funds, were committed to these initiatives.

The 13 manufacturing demonstration projects reviewed were to be administered during a two year period. While the projects could only have a modest short-term impact on the industry’s skill shortages, a significant impact could be achieved in the long term through replication and expansion of successful practices and programs. The projects were also to serve as a catalyst for increased collaboration of the workforce preparation system and the manufacturing industry.

This evaluation project was looking for the enablers for improving future outcomes. This was not a monitoring or compliance exercise. The inquiry was planned so it would be a useful experience for project directors and partners by emphasizing program strengths, discussing workarounds for project weaknesses and suggesting resources for increased effectiveness. We have interviewed all of the Project Directors and have received feedback from a small proportion of the students and the employers.

The programs taught skills such as welding, Computer Numeric Control, advanced manufacturing, blueprint reading, composites forming, robot operations, stamping technologies, Kanban, lean manufacturing, integrated systems maintenance technology as well as supervisory and management skills

The target audiences were WIA clientele, dislocated workers and incumbent workers. Some of the programs were “bridge” programs, in that they helped prepare adults who lack adequate basic skills to enter and succeed in post-secondary education and training.

Without diminishing the efforts of the incumbent worker and dislocated worker programs, it was obvious that the bridge programs have a much more difficult row to hoe. This fact was obvious to the providers who attempted forays into the training of the WIA clientele. The majority of the providers wished to continue in incumbent worker training rather than to attempt to provide the necessary support to the WIA clientele.

This creates a serious disconnect from the State’s goals.

Executive Summary (cont.)

Looking at the projects through the lens of the Human Capital Development Wheel we found effective techniques used in most all of the projects. Reporting limitations make it difficult to link practices to results, nonetheless we can see some obvious distinctions between the projects that launched successfully and those that failed to get off the ground.

A customer–centric focus was far more likely to bring success than was a traditional institutional focus for the community colleges. The success stories were to be found in those workforce providers who could flex their offerings to fit the needs of both the learners and the employers.

For the unemployed there is a constant pressure to make ends meet. The concept of one-year or two year training programs is unfathomable to these people. They need training vehicles that will allow them to move to income generation rapidly. Examples such as accelerated curricula and open-entry/open exit training models make a great deal of sense.

For the employers, the demands for profitability and payroll control led to calls for on-site or nearby training and the need for tightly focused curricula.

Although this was an “appreciative’ look at these projects we did uncover a serious negative. The original game plan for CSSI funding called for a three year approach. The first year was at full funding, the second at 50% and the third as self-funding. The actual percentage of projects requesting second year funding was miniscule. This was attributed to what was described as a “hellacious” bureaucracy/reporting environment for CSSI. It was universally acknowledged that there was easier money available and that CSSI dollars “weren’t worth it.”

This leaves the State in a tough situation where they are tasked with both insuring judicious use of public funds and the creation of a high skilled workforce. There needs to be a balance point of value found on both sides.

Another concern that we have with the CSSI programs, is that the providers seem to be targeting the low-hanging fruit. We saw programs initiate with plans for doing hard skill training but then migrate to focusing on supervisory skill training.Not that there is anything wrong with doing supervisory skill training but those supervisors are going to need skilled workers to supervise. Doing the hard skills training seems to be a more difficult offering for the community colleges to provide.

Similarly, we see the providers moving towards offerings for incumbent workers as opposed to the unemployed. Although we understand these trends, in the big picture we feel the State needs to provide more incentives to deal with the harder programs.

Results

The IWIB Manufacturing Task Force Report identified five major issues to address:

1. Image of Manufacturing—Improving the image of manufacturing focusing on the message that manufacturing is a critical industry in Illinois and that manufacturers must compete on innovation.

2. K-12 Career Awareness and Guidance—improving the student and parent awareness of career opportunities in manufacturing and expanding career guidance and exploration in K-12 schools.

3. Improving Workplace Skills---improving the basic workplace skills of entry level production workers.

4. Improving Workforce Pipelines—improving the capacity and alignment of the workforce pipeline including P-20 alignment and integration of leading public-private training models and credentialing systems.

5. Continuous Learning—Engaging incumbent workers to recognize the need for continuous learning and training.

Also, the projects were also to serve as a catalyst for increased collaboration of the workforce preparation system and the manufacturing industry.

Issues 1 & 2 are clearly marketing and will be addressed by the upcoming Manufacturing Image Campaign from the Chicago Chamber of Commerce. These 14 projects were focused on issues 3, 4 & 5 and had the opportunity to increase collaboration as well.

As to “Improving Workplace Skills” we’d give the projects a “C-” for the WIA populations. Although there were exceptions, in general we didn’t see many positive outcomes from the projects, at least those that resulted in employment for the entry level workers.

For “Improving Workforce Pipelines” we’d give the projects a “C+.” We didn’t witness much movement towards the alignment of the P-20 system nor the “integration of leading public-private training models.” We did see some progress toward the utilization of recognized Skill Standards in the programs but only the Triton program was really successful in getting their earners certified.

As to “Continuous Learning” and “Increasing Collaboration” the projects would score a “B+.” We’re not sure of whether the incumbent workers were engaged as opposed to the employers but either way the programs delivered training to many incumbents with the preponderance going to educating learners in Supervisory or Management positions.

The projects reinforced the need to link the training providers with the employers via strong and active “Business Advisory Committees.”

About the Chamber

The Chicagoland Chamber of Commerce is the regional chamber of commerce for the six county metropolitan area. The Chamber has IRS 501(c)(6) status as a business association and has an affiliate Chicagoland Chamber of Commerce Foundation with an IRS 501(c)(3) status as a charitable organization for the purposes of doing education and research.

The Chamber’s mission is twofold, first to enhance their members' success through aggressive programs of advocacy, member benefits and services, and actionable information and secondly, to make Chicagoland the most business-friendly region in America.

The chamber works towards its goals in two major ways. First, collaborating to forge common purpose and create results across the issues affecting the business community. These issue areas include:

  • encouraging entrepreneurship and high-growth businesses
  • supporting education and workforce quality
  • encouraging workplace initiatives
  • promoting improvements to the transportation infrastructure
  • addressing taxation and regulation issues

Second, they work to create an environment that enables businesses in the region to be successful and grow.

About “Innovate Now!”

“Innovate Now!” is a joint initiative of the Illinois Department of Commerce and Economic Opportunity (DCEO), the Chicagoland Chamber of Commerce and World Business Chicago to promote economic growth in Chicagoland, and eventually the entire state, by encouraging and promoting business innovation.

By showcasing the leading innovators and their strategies and establishing collaborative networks allowing CEOs, researchers, entrepreneurs, investors and others to share these strategies it is hoped that all the stakeholders will be inspired to create their own innovation culture both in their businesses and in Chicagoland.

In January 2007, the Chicagoland Chamber Foundation published “Innovate Now, Taking Charge of Our Future, Developing a Comprehensive Business-Centered Approach to Innovation-based Economic Development.”

The report delineated Four Key Strategies for promoting and fostering innovation:

1. Business Innovation Leadership and Capacity

2. Open Collaborative Innovation Networks

3. Innovation Talent

4. Innovation Metrics

The June 19th 2007 “21st Century Chicagoland Workforce Forum” continued the public discussion intended to drive the community towards innovation. The forum addressed the need for a transformation of the current workforce into a new breed of talent in Illinois, discussing what specific changes are occurring and how the region must react and collaborate to create the future innovation talent pool. Panels of industry representatives, academia, workforce boards and government representatives addressed the following questions:

• What workforce capacities do companies need in order to compete in the 21st Century global economy?

• How do we respond to the common vision of what is needed and produce a new breed of talent in Illinois?

• How do we build a P-20 pipeline to support and feed the system as the needs for talent development change?

In October of 2007 the 2nd Annual Chicagoland Innovation Summit was held. The Summit brought together influential innovation experts, business executives, academics and government leaders to discuss innovation and accelerate Chicagoland’s development as a globally recognized center for innovation.

About the Project

The Chamber received grant 05-674044 from the Illinois Department of Commerce & Economic Opportunity (DCEO) to provide services using Workforce Investment Act (WIA) 10% Private Sector Based Training Program funds during calendar year 2007.

The major objective of the grant was to provide technical assistance and support to regional partners for CSSI Regional Manufacturing Initiatives and the implementation of the Illinois Workforce Investment Board (IWIB) Manufacturing Task Force recommendations. The grant activities were to integrate these efforts into “Innovate Now!” and related efforts including the iBIO Institute and STEM-ED education initiatives in the Northeast Region and other regions.

This particular project was looking at the CSSI manufacturing projects funded in the northeast Illinois region (NE IL). DCEO has13 projects and 11 sub-grantees funded in NE IL. The projects included bridge programs, incumbent worker programs and capacity building programs.

DCEO is looking for feedback on how well the projects actuallydidin responding to the manufacturers' needs and expectations. What successes have there been? What obstacles have the providers run into? What changes or enablers would have or could in the future make the projectresults better? This was not a monitoring or compliance exercise. It was a learning effort. The goal was to provide a non-intimidating environment for the providers, students/trainees and employers so that they could feel comfortable sharing positive and negative observations and opinions, without fear of adverse consequences.

It should be noted that although these Pilot Projects were looking for innovation in the workforce development process there was more process improvement and less innovation to be found in the outcomes.

About the Workforce Boards of Metropolitan Chicago

The Workforce Boards of Metropolitan Chicago is a consortium of nine Workforce Boards covering the City of Chicago, NorthernCookCounty, South and WestSuburbanCookCounty, DuPageCounty, Grundy/Livingston/Kankakee Counties, Kane/Kendall/DeKalb Counties, LakeCounty, McHenryCounty and WillCounty.

The Workforce Board’s mission and purpose is to drive strategic alliances that advance the region’s economic vitality. The Workforce Boards link workforce development activities with economic development activities in order to provide the business sector with a myriad of employment, training and educational services to support a world-class workforce.

The Workforce Boards of Metropolitan Chicago are collaborating to build a demand-driven workforce system — a system that can provide quality employees that meet the needs of business. By building a progressive system of change strategies and initiatives, the Workforce Boards support a system that ensures continued economic growth of the region and the state.

Critical Skill Shortages Initiative (CSSI)

As part of a statewide undertaking to strengthen Illinois' system of workforce and economic development, the Governor's Office and the Department of Economic Opportunity implemented the Critical Skill Shortages Initiative. The Critical Skill Shortages Initiative is designed to align regional workforce strategies with economic development to provide qualified workers for critical skill shortage occupations, and includes:

Identification of skill shortage occupations that provide good wages and benefits in key sectors;

Examination of both root causes and on-the-job factors that lead to shortages;

Redirection of existing resources and implementation of strategies to address these issues.

In the metropolitan Chicago area, the Workforce Boards of Metropolitan Chicago are responsible for management of this initiative. As a result of a $3 million planning grant and with the assistance of stakeholders and employers throughout the region, the following three sectors were researched and analyzed for the purpose of identifying critical skill shortage needs: healthcare, manufacturing, and transportation, warehousing, & logistics.

In the second phase of CSSI, the Department of Commerce and Economic Opportunity awarded grants to the Workforce Boards to support demonstration projects addressing root causes and implementing solutions that address critical skill shortages in each of the targeted sectors.

Special thanks goes to JanEtzkorn, the Regional Coordinator of the Workforce Boards of Metropolitan Chicago for her help in the preparation of this report.

About the Researcher

JamesM.Schultz, M.B.A., C.P.T.

Pretty Good Consulting, Inc.

Phone: 303.671.6658

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Jim graduated from the University of Denver receiving his B.S.B.A. in 1969, with a specialty in Marketing and Advertising, and an M.B.A. in 1971. Most of Jim’s career was spent at Walgreens. His responsibilities as Divisional Vice President - Performance Development covered a wide range of H.R. areas: distance learning, training, management & executive development, productivity improvement, knowledge management, human factors engineering, instructional design, systems documentation, human resource planning, H.R. information systems and media production.

Jim served as President of the Illinois Occupational Skills Standards and Credentialing Committee, a group working towards standardized and readily recognizable and transferable job competency designations. He also served on the Illinois Workforce Investment Board, the Illinois Human Resource Investment Council, & the Illinois Job Training Partnership Board, all groups counseling the Governor about optimizing the workforce development programs of the State. Jim co-chaired the IWIB’s Evaluation & Accountability Committee. Jim also served as Co-Chair for the Illinois Education to Careers Committee.