Columbus Regional Workforce Analysis - PowerPoint Presentation

1. Columbus Regional Workforce AnalysisExecutive PresentationFebruary 2014

2. Project Objectives2Identify and evaluate the various labor sheds that are present in the 11-county regionDefine, in detail, the size, key attributes, and workforce trends within each labor shedAssess underemployment, unemployment, and those not in the labor force through analysis and workforce surveysDefine key deficits and surpluses within the local labor supply and the impact on key economic sectorsAssess the impact of organized labor in the regionConduct employer interviews to understand their perspective of the regional workforceCompare the Columbus Region nationally and to a select group of competitors (metro areas and national averages)Through interviews with project stakeholders, SSG and Columbus 2020 identified the following objectives for the comprehensive workforce analysis:

3. Report Sections3The comprehensive report is organized into eight sections. Those sections are highlighted below:

4. Overview of Data Sources4SSG gathered data from a variety of sources, all of which can be classified into four categories:

5. Labor Shed Identification5Franklin (represented by the light blue counties)Marion-Logan-UnionMorrow-Marion-Delaware-KnoxLicking-FairfieldPickawayLabor sheds were identified and drawn using a combination of quantitative and qualitative data from individual surveys, employer interviews and internal databases. SSG identified the following five labor sheds, all of which contain Franklin County.

6. Key Workforce Attributes6Labor ShedPopulationPopulation GrowthLabor ForceLabor Force ParticipationMedian Household IncomeFranklin2,698,9522.23%1,416,37977.74%$48,277Marion-Logan-Union1,960,3812.72%1,045,18878.24%$48,877Morrow-Marion-Delaware-Knox1,730,2672.86%929,04379.19%$48,525Licking-Fairfield1,847,9832.66%986,46578.21%$47,049Pickaway1,537,8682.97%826,49278.52%$47,415Each labor shed was profiled based on key workforce attributes. Those attributes included relevant demographic data, economic indicators, and occupation & industry trends. The following table provides a basic snapshot of each labor shed.

7. Education Attainment Trend7

8. Readily Available Workers8SSG quantified the number of readily available workers in the region by using the following equation. The table below provides the results. # of Those Not in Labor Force, but willing to re-enter# of Unemployed# of UnderemployedReadily Available Workers++=Candidate Classification#Number of Underemployed Workers217,008 Part-Time, Prefer Full-Time76,487 Non Permanent, Prefer Permanent49,805 Overqualified for Current Position90,717Unemployed Workers65,651Not Participating, But are Willing to Re-enter43,968Total 326,627

9. Graduate Surplus & Deficit Analysis9The following graph shows the number of graduates in each program of interest relative to the corresponding entry-level jobs. A percentage over 100% suggests there are more graduates in the Columbus region than there are job opportunities.

10. The following graph shows the surplus (or deficit) of graduates in each program of interest relative to the corresponding entry-level jobs. A positive number suggests there are more graduates in the Columbus region than there are job opportunities.Graduate Surplus & Deficit Analysis - Continued10

11. Competitive Benchmarking11MSASTATETOTAL INDEXLABOR AVAILABILITYLABOR COSTPhoenix-Mesa-GlendaleAZ117.3%123.9%101.9%Atlanta-Sandy Springs-MariettaGA115.8%123.6%97.5%Orlando-Kissimmee-SanfordFL114.8%118.7%105.6%Tampa-St. Petersburg-ClearwaterFL113.3%116.5%105.8%Miami-Fort Lauderdale-Pompano BeachFL112.3%117.5%100.3%Indianapolis-CarmelIN111.9%115.7%103.0%ColumbusOH111.3%116.0%100.3%PittsburghPA110.7%114.4%101.8%Austin-Round Rock-San MarcosTX110.6%115.9%98.4%Salt Lake CityUT110.5%114.3%101.6%Charlotte-Gastonia-Rock HillNC-SC109.3%113.4%99.6%San Antonio-New BraunfelsTX108.2%108.7%107.0%Nashville-Davidson--Murfreesboro--FranklinTN107.9%109.3%104.6%Oklahoma CityOK107.3%106.0%110.2%Cincinnati-MiddletownOH-KY-IN106.9%110.2%99.0%Louisville-Jefferson CountyKY-IN100.8%98.9%105.1%SSG constructed a custom national benchmark model that scores and ranks all 186 metropolitan statistical areas of the United States with a population greater than 250,000. The scoring is based on weighted workforce variables that measure Labor Availability and Labor Cost. The following table shows those communities that score above average in both Labor Availability and Labor Cost categories, as well as the six competitive markets previously identified by Columbus (in green). A score of 100% in any category is considered average. The higher the index, the more favorable the score. Labor Availability Labor ScalabilityTarget Occupation PresenceTarget Occupation GrowthEducation AttainmentTarget Age GroupsHousehold Income DistributionPost-Secondary GraduatesLabor Costs Median Household IncomeCost of LivingHousing CostsTarget Occupation Wages

12. Competitive Benchmarking - Continued12The following table shows how the Columbus MSA scores against each competitive market in each sub category that measures Labor Availability & Labor Cost.

13. Employer Interview Summary13Labor Criteria RankingsGeneral applicant flow for available positions3.2Availability of skilled workers2.7Availability of unskilled workers3.6Worker productivity3.8Worker reliability3.6Soft skills3.1Worker reading, writing, and math skills3.4Teamwork skills3.7Flexibility/adaptability to change3.5Critical reasoning skills3.1Education attainment of applicants3.5Experience level of applicants3.1Employee turnover3.6Employee absenteeism3.5Employee attrition3.6Employment SizeResponsesLess than 501450 to 9910100 to 24920250 to 49910500 or More16CountyResponsesDelaware5Fairfield5Franklin26Knox4Licking5Logan3Madison3Marion4Morrow4Pickaway5Union7SSG interviewed 71 employers in the 11-county region. Despite the use of a questionnaire, the interviews conducted by SSG were designed to be more informal, free-flowing and relaxed, especially with high-ranking executives. Typically, most interviews lasted between 45 minutes to one hour. In addition to other qualitative and quantitative measures, the respondents were asked to rank the categories in the table at right on a 1 to 5 scale, with 5 being most favorable. The table shows the average scores.

14. Organized Labor Assessment14The following graph shows the unionization rates, both public and private, for each competitive MSA as identified in the Competitive Benchmarking Section.

15. Organized Labor Assessment - Continued15The data in the graph below was generated from responses to the online workforce survey. SSG asked all participants their attitude towards unions. 74% of respondents have no opinion of or do not support unionism.

16. Key Findings & Conclusions16Challenges:Lack of vocationally trained workforce (post-high school); Employers are shouldering the burdenThe post secondary education system isn’t keeping up with the demand for IT talent, Precision Production, Maintenance & Repair Talent, and LogisticsNegative perception of career potential in the Advanced Manufacturing and Logistics industries There is an $10.00/hr. wage threshold for unskilled workforce talent There will be as many people exiting the workforce as there will be entering the workforce in the next 10 yearsThere is a generational divide present in the workforceThe region’s organized labor statistics vary greatly from the attitudes of the workforce and opinions of employersMarket wages are slightly above average compared to the competitive locationsOpportunitiesThe labor force in the region is relatively fluid and staffing a qualified workforce at market wages is feasible throughout the region.There is a wage gap of $14.00 - $16.00/hr. and a salary gap of $43,000-$47,000 among the underemployedIt would take a wage of $17.00 - $19.00/hr. or a salary of $50,000-$54,000 to entice the majority of those not in the labor force to re-enterThe workforce characteristics strongly supports each of the target industriesAbundance of engineering talent in the regionThroughout the course of the project, SSG identified the following challenges and opportunities present in the Central Ohio region.

17. For additional information please contact:Site Selection Group, LLC8300 Douglas Ave.Suite 700Dallas, TX 75225(214) 271-0580www.siteselectiongroup.com